Hub24 Limited · ASX:HUB
Hub24 — H1 FY2020 Earnings Presentation
20 slides from Hub24's earnings presentation, Feb 25, 2020
Slide 1: For personal use only
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Slide 2: 1HFY20 Results Presentation
25 For personal use only FEB 2020 1HFY20 RESULTS PRESENTATION
Slide 3: Company purpose statement
For personal use only At HUB24 we make a difference in our customers’ lives by connecting them to innovative solutions that create better investment outcomes
Slide 4: Key messages
For personal use only Strong growth in Funds Creating new business KEY Under Administration opportunities from (FUA) with market share leadership in continuing to increase technology, product & customer focus MESSAGES Delivering on our Managed Portfolio strategy whilst leadership & innovation mainta
Slide 5: Overview
For personal use only Business highlights Financial results Strategy & Outlook OVERVIEW 5 5
Slide 6: Business Highlights
For personal use only BUSINESS HIGHLIGHTS ANDREW ALCOCK Managing Director 6
Slide 7: Group Financial Highlights 1HFY20
GROUP FINANCIAL HIGHLIGHTS 1HFY20 For personal use only Statutory NPAT $35.0m $13.8m $6.0m up 90% 38% Platform Revenue 73% Platform Underlying EBITDA3 FUA at 31 Dec 2019 ¹ $15.8bn up 58% FUA now $17.4bn⁵ $5.4m 39.4% Up from 75% Underlying NPAT2 Platform Underlying 31.3% EBITDA margin3 1H Dividend4 i
Slide 8: Business Highlights
BUSINESS HIGHLIGHTS For personal use only 1st 1st 1st $2.5bn Managed Product Offering¹ Integration¹ Record net Innovating for the future Accounts Solution¹ inflows of wealth management • Platform Functionality • Managed Portfolios 2nd 2nd 2nd 1,841 • HUBconnect • Advice enablement Annual & quarterly
Slide 9: Extending Our Leadership in Managed Portfolios
EXTENDING OUR LEADERSHIP IN MANAGED PORTFOLIOS For personal use only No.1 Managed Managed Portfolios Increasing portfolio New Managed Account solution now $7.1bn of FUA choice, 61 new Portfolio 4th year running¹ (from $4.5bn) portfolios added during development team 1HFY20 including 8 MIS portfolios
Slide 10: Maintaining Momentum in Market Share & Net Flows
MAINTAINING MOMENTUM IN MARKET SHARE & NET FLOWS For personal use only NET FLOW SHARE TO UNDERLYING MARKET SHARE RATIO HUB24 NET FLOWS RANKING in $ TERMS 50 Specialist Institutional ANNUAL QUARTERLY 40 platforms platforms Rank Rank 30 Sept-19 2 2 20 Increasing Sept-18 3 2 10 market share 0 HUB24 Sep
Slide 11: Financial Results
For personal use only FINANCIAL RESULTS MARK GOODRICK Chief Financial Officer 11
Slide 12: Group Financial Results
GROUP FINANCIAL RESULTS For personal use only OPERATING REVENUE ($m) 9.6 + 12% 1H20 1H19 Change 38% (3.7) (0.4) $m $m % $47.1 $52.7 Group operating revenue 52.7 47.1 12% Insert Direct costs (24.9) (25.7) (3%) Gross profit 28.0 21.8 28% 1HFY19 Platform Licensee IT Services 1HFY20 Gross profit margin
Slide 13: Platform Segment Results
PLATFORM SEGMENT RESULTS FUNDS UNDER ADMINISTRATION ($b) For personal use only STRONG FUA GROWTH DRIVING 2.5 0.5 INCREASED PROFITABILITY 1.1 1.8 1HFY20 1HFY19 change PLATFORM $15.8 $12.9 $m $m % $10.0 Insert 1 Retail FUA (Now 17.4b ) 15.8b 10.0b 58% Revenue 35.0 25.4 38% FUA Net flows Market FUA Net
Slide 14: Platform Segment Results Cont…
PLATFORM SEGMENT RESULTS CONT… For personal use only FUA GROWTH DELIVERING SCALE BENEFITS Platform Revenue and Expense trends1 $m Platform EBITDA 40.0 margin continues to 35.0 30.0 expand with scale 25.0 20.0 15.0 10.0 5.0 Investment made in 0.0 1H16 2H16 1H17 2H17 1H18 2H19 1H20 FY19 now being Reve
Slide 15: Strategy and Outlook
For personal use only STRATEGY AND OUTLOOK ANDREW ALCOCK Managing Director 15
Slide 16: Strategy: HUB24 Positioned to Leverage Industry Trends
STRATEGY HUB24 POSITIONED TO LEVERAGE INDUSTRY TRENDS For personal use only Adviser & client Contestable market of Data integration & New advice models Advisers are demand for self-licensed & non- efficiency is becoming and products are reshaping their managed portfolios aligned licensees is critica
Slide 17: Outlook: Deliver on Our Strategic Objectives
OUTLOOK DELIVER ON OUR STRATEGIC OBJECTIVES For personal use only Advice Enablement Market reach & FUA Growth HUBconnect • Develop new technology services that • Focus our expanded distribution team • Rollout of latest release to existing pilot assist licensees with compliance & across target segmen
Slide 18: Outlook: Create Customer & Shareholder Value
OUTLOOK For personal use only CREATE CUSTOMER & SHAREHOLDER VALUE ACCELERATE GROWTH IN MARKET SHARE • Leverage existing advisers and licensee opportunity • Convert new opportunities from current strong pipeline • Investment in distribution team expected to deliver benefits in 2H20 and beyond Target
Slide 19: Disclaimer
DISCLAIMER For personal use only SUMMARY INFORMATION rate of return or the performance of HUB nor does it guarantee the repayment of capital from HUB or any The material herein is a presentation of general background particular tax treatment. information about HUB24 Limited’s (‘HUB’) activities curr
Slide 20: For personal use only
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