HUB24 (HUB) Investor Day 2024 summary

Strategic growth drivers and market expansion

• Significant investments in data infrastructure and AI enable unique features, operational scale, and broader accessibility, supporting new growth opportunities.

• Market opportunity has expanded with increased engagement from non-traditional clients, private wealth groups, SMSF markets, and demand for non-custody and alternative assets.

• Shift from institutionally owned to privately owned advice networks, with advisor numbers and FUA per advisor both growing steadily.

• Product offering has broadened to capture intergenerational wealth transfer and serve both simple and complex client needs, including new solutions like Discover and SMSF Access 2.0.

• Addressable market extends beyond platforms to include SMSF, corporate compliance, and non-custody assets, with access to 76% of the adviser market.

Technology, innovation, and operational excellence

• Ongoing investment in technology, process automation, and AI/ML tools has driven operational leverage, improved service quality, and reduced cost to serve.

• Key initiatives include streamlined advice fee consent, automation in superannuation administration, and a virtual mailroom for non-custody business.

• Early adoption of large language models and GenAI tools is enhancing service quality, reducing transaction handle times, and increasing capacity for growth.

• Proprietary data infrastructure and AI models leveraging years of industry-specific data provide a competitive advantage and are difficult to replicate.

• Integration focus is on seamless user experience across acquired products, with myprosperity as a unified front end.

Financial performance and capital management

• Platform FUA reached $92b as of September 2024, with total FUA at $113b and gross inflows of $26b in FY24.

• Platform business delivers close to 80% of group revenue, with FUA, revenue, and EBITDA compounding at 40%-50% over four years.

• FY26 Platform FUA target is $115-123b (excluding PARS FUA), supported by strong net inflows and stable market growth.

• Group revenue 4-year CAGR of 42% and UEBITDA CAGR of 47%, with expanding margins and disciplined cost management.

• Strong balance sheet with $58m net cash at June 2024, ongoing investment, and a target dividend payout ratio of 40-60%.