Hub24 Limited · ASX:HUB
Hub24 — 1HFY22 Earnings Presentation
24 slides from Hub24's earnings presentation, Feb 21, 2022
Slide 1: 1HFY22 Results Presentation
1HFY22 Results Presentation 22 February 2022
Slide 2: 1HFY22 Delivered strong financial results growth
1HFY22 Delivered strong financial results growth1 Statutory NPAT $81.6m $77.3m $8.4m Up 38% Including $8.3m of transaction & implementation costs 72% Total Group Revenue³ 76% Platform Revenue Underlying NPAT2 $29.7m $30.0m $14.2m Up 103% 80% Group Underlying 72% Platform Underlying Half Year Dividen
Slide 3: Consistently delivering record growth
Consistently delivering record growth¹ FUNDS UNDER ADMINISTRATION REVENUE CAGR +41%2 UEBITDA CAGR +63%2 $80b $90m $70b $80m $60b $70m $60m $50b $50m $40b $40m $30b $30m $20b $20m $10b $10m $0b $0m 1H19 2H19 1H20 2H20 1H21 2H21 1H22 1HFY19 1HFY20 1HFY21 1HFY22 Platform FUA PARS FUA Revenue UEBITDA 1.
Slide 4: HUB24 Group Total FUA $68.3bn
HUB24 Group 92 7,700+ PLATFORM PARS Financial Services Clients Unique Customers^ 96 220+ Custodial administration Non-custodial administration Data Integrations^^ Data Integrations^^ Platform FUA PARS FUA HUBconnect Broker Class Super $50.0bn $18.3bn Customer management & SMSF administration operati
Slide 5: HUB24 – Australia's fastest growing platform provider
HUB24 – Australia’s fastest growing platform provider¹ Netflow share to underlying market share ratio¹ Growth in Platform FUA, PARs FUA & net flows per quarter² FUA $m Netflows ($m) 15.00 70,000 4,000 60,000 3,500 10.00 3,000 50,000 2,500 40,000 5.00 2,000 30,000 1,500 - 20,000 1,000 HUB24 2 3 4 5 6
Slide 6: 1HFY22 Business highlights
1HFY22 Business highlights No.1 1 2 2 No.2 Platform Managed No.2 Accounts functionality Record net inflows for ranking for annual Best Platform Overall¹ 6th year running¹ 3 consecutive quarters platform net inflows (7th position market No.1 Top 2 in 5 out of 6 share) Product Offer¹ categories ¹ 339
Slide 7: Empowering better financial futures, together.
Empowering better financial futures, together. Strategic pillars Deliver customer Continue to build Collaborate to value & growth the platform of the shape the future of future the wealth industry Continue to develop our platform Deliver an integrated customer Leverage our technology & proposition t
Slide 8: Financial Results
FINANCIAL RESULTS KITRINA SHANAHAN Chief Financial Officer 8
Slide 9: Group financial results
Group financial results1 Operating Revenue ($m) 1H22 1H21 Change +72% $m $m % 81.6 (0.3) 0.9 Operating Revenue 81.6 47.5 72% 33.5 47.5 Operating Expenses (51.9) (30.6) 70% Underlying EBITDA from Insert 29.7 16.9 76% Continuing Operations2 1H21 Platform Tech Solutions Other 1H22 Underlying EBITDA mar
Slide 10: Platform segment results
Funds Under Administration ($bn) Platform segment results $3.0 $68.3 $58.6 $6.7 Benefits of strategic transactions and continued FUA $18.3 growth driving increased revenue, offset by changing $2.5 $19.0 $17.2 market conditions $31.3 $5.8 $9.3 $50.0 $41.4 $22.0 1H22 1H21 Change 1H21 Netflows Market S
Slide 11: Platform segment results
Platform segment results FUA growth delivering scale benefits Platform Cost to Income ratio has improved by 1.3% to 61.2% (compared Revenue and Expenses ($m) Revenue Expenses Cost to Income ratio (RHS) to FY21), resulting $m Cost to Income % from operating leverage 110 85 as the business 100 momentu
Slide 12: Composition of platform FUA
Composition of platform FUA Composition of Platform FUA and Revenue ($m) 3% 7% 1% 3% 5% 1% 16% 4% 16% 3% The acquisition of Xplore and launch of private labels has diversified FUA and increased market share 81% 81% Retail clients now represent 81% of Platform 92% 94% FUA and 92% of revenues (94% FY2
Slide 13: Platform revenue
Platform revenue Platform Revenue ($m)² +76% Platform revenue growth of 76% reflecting record net flows and acquisitions 10.4 9.6 5.6 7.9 77.3 Platform revenue increased to $77.3 million (up 57.3 76% on pcp) with the combined contribution of 39.3 43.8 the acquisitions being ~$14 million during 1H22
Slide 14: Group expenses
Group expenses Group Expenses by function ($m)² Investing for future growth and product innovation 68% 5.1 69.6 3.2 3.5 61.3 2.4 Group expenses grew $24.8 million or 68% 36.5 9.0 9.9 before costs associated with strategic transactions and other abnormal items Employee expenses contributed $16.9 mill
Slide 15: NPAT
NPAT Strong growth before strategic transaction costs Share based payments of $6.0 million $3.2 million of non-recurring Higher amortisation, as development in 1HFY22 in relation to the corporate costs supporting strategic and capitalisation of IT assets Employee Share Plans. This follows growth rel
Slide 16: Update on Class Acquisition
UPDATE ON CLASS ACQUISITION ANDREW ALCOCK Managing Director 16
Slide 17: Class acquisition progress & next steps
Class acquisition progress & next steps Execution phase Transition phase Growth phase Transaction implemented 16 February Operate Class as a business unit while Focus on extending core SMSF 2022 streamlining some corporate functions strategy to benefit customers of both businesses, deliver growth an
Slide 18: Combined group snapshot as at 31 December 2021
Combined group snapshot as at 31 December 2021 HUB24 Class2 Combination Pro Forma Technology Other Document Sales Other Solutions Other Document Sales 4% 4% 4% 1% Software 14% Subscriptions Revenue Revenue 23% Revenue $81.6m $31m $112.6m Underlying EBITDA Underlying EBITDA $29.7m $10.7m Underlying E
Slide 19: Outlook
OUTLOOK ANDREW ALCOCK Managing Director 19
Slide 20: HUB24 Group well positioned to capture market opportunities
HUB24 Group well positioned to capture market opportunities Australian Investment Managed Account PARS SMSF Market⁴ Platform Market¹ Market² Market³ HUB24 market share HUB24 market share HUB24 market share Class market share 4.6% 19% 12% 29% Investment Other services Inhouse Class Super $312bn $10.2
Slide 21: Continuing to grow and enhance our proposition
Continuing to grow and enhance our proposition Collaborate to shape Deliver customer Continue to build the the future of the value & growth platform of the future wealth industry Deliver platform enhancements Continue delivery of 'whole of wealth' Accelerate development of HUBconnect to support advi
Slide 22: Outlook
Outlook Position HUB24 Pursue Continuing for ongoing Growth strong financial success results Leverage existing Platform FUA Continued investment in Leverage FUA product innovation, customer relationships with financial growth and scalability target (excluding service excellence and professionals and
Slide 23: Disclaimer
Disclaimer SUMMARY INFORMATION FORWARD LOOKING STATEMENTS The material herein is a presentation of general background This presentation contains certain forward-looking information about HUB24 Limited’s (‘HUB’) activities current statements. The words ‘anticipate’, ‘believe’, ‘expect’, as at date of
Slide 24: “AUB
“AUB