HUB24 Limited

I would now like to hand the conference over to Mr Andrew Alcock, Managing Director. Please go ahead.

Good morning and welcome everyone to the HUB24 financial year 26 full year results announcement. We acknowledge the traditional custodians of lands on which we meet today. Our office here in Sydney is on the lands of the Gadigal people of the Eora Nation. We pay our respects to elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples with us today. It's a pleasure to be here today talking to you about our results. And with me, of course, is Katrina Shanahan, our Chief Financial Officer. We'll be covering some highlights of an operating view of our business, talking about our financial results in a bit more detail, covering strategy and outlook, and then opening up for some questions. As always, we remain focused on our customers to support them and achieve their financial goals through our purpose of empowering better financial futures together, which we take very, very seriously in our business. Thank you very much. whilst at the same time increasing that engagement through innovating technology and leveraging that technology to improve customer experience. Today, we service or look after about 600,000 customer accounts across the Hub24 business. It's quite a large number, and we take that very seriously. We're very, very focused on building a sustainable business that drives outcomes for customers and shareholders. Turning to our FY26 results, highlights and operating review, We had strong profits for the year, uplifts in both revenue and earnings. On the revenue side, our group revenue is up at just over half a billion dollars, up 23%, the platform at $407 million, up 26%, and tech solutions also up 9% at $84 million. Translating into underlying EBITDA, for the total group, result of 211.4, which is also up 30% on PCP. Platform up 31% at 186.7 and tech solutions up 29.3 at 8%. That's resulting in a set NPAD of 120 mil up 51%, a strong underlying NPAD up 40% at 137.3, a fully franked final dividend at 42 cents per share, which is 31% up on last year. and underlying EPS diluted at 166.7 cents per share. Very, very strong results, very, very consistent results along with our track record. And in terms of how we finished FY26 with funds under administration, the total FUR of 164.3, platform at 139.5 as previously reported. It was 144.1 as at the 13th of August last week. and our pass were at $24.8 billion. And I'm sure we'll unpack some of those statistics and figures a bit later on in the presentation. Putting the FY26 results into context of our long-term performance trend, you can see on the left-hand side of the slide there that we have a four-year CAGR of 27% group revenue increase and underlying EBITDA four-year CAGR of 32%, which demonstrates increasing margins. So long-term consistent growth trends there are both revenue and EBITDA. and with an indicator of revenue, the key indicator being FUA, seeing the CAGR of funds under administration also at 26% over a four-year period. In summary, we continue to deliver strong, consistent growth in terms of revenue, lead indicators and profitability, and we certainly aim to continue doing that moving forward. Summarising our achievements and highlights for FY26, Certainly from a leadership and growth perspective, we've been focused on our strategy to lead today with record net inflows of $18.9 billion, if you exclude the large migrations or one-off migrations from last year. Our annual offers are gaining strong market traction. We'll talk about that a bit later in the presentation. Our largest annual increase in class accounts since 2018 and now infinity growing at twice or more than twice the system growth. At the same time as delivering those leading results, we've been executing our strategy having commenced development of the evolution of our ecosystem now known as MyHub, a wealth tech solution that's integrating leading advice technology with our group capabilities, licensee capabilities, and other capabilities in the market. Engage is also still racing along with our 7,200 advice practice users. We've enhanced our proposition for all life stages of customers, including the launch of innovative retirement solutions. We'll talk about that a bit later in the pack as well. and Class and Now Infinity delivering on a multi-year enhancement program. We've also continued to lay foundations for the future. We've aligned our organization to drive execution and strategy with Jason Hare starting with us last week as our Chief Innovation and Operating Officer. We've brought together key people in our business into an enterprise solutions team focused on building the enterprise solutions that service both our tech solution and the platform business, like Engage, like MyHub, like HubConnect Licensee and our data products, bringing that together to build that for the future. We are certainly continuing to leverage off innovative technologies with AI helping us with customer value proposition offers. We'll talk a bit about some things that are coming up shortly and also underpinning operating efficiency in the business. It's been a year to be active, actively advocating on behalf of our customers and our industry for positive change, with a strong focus on risk and governance system announcements tomorrow in Canberra with Dr Molino, resulting from the Shield and First Guardian piece and all the consultation papers the government and Treasury was doing with our industry. We'll certainly be strongly advocating for that for great retirement settings and good settings for consumers and members. And we're making great progress on bringing the Hub24 Superfund trustee in-house, which we hope to have completed by the end of this calendar year. So a lot of a mix there in terms of what we're doing with our products, our strategy and laying foundations for the future. As a result, though, once again, we have grown our market share ahead of the market. Hub24 as a platform is now ranked number six up from position seven last year with 9.9% or just shy of 10% market share. As a participant, we've increased our market share by more than any other participant at 1.3% over the last 12 months. And we've had the number one net inflows for 10 consecutive quarters against our industry. Interestingly, the industry itself is growing with $45 billion of new net flows over the last available data at the 12-month period with a PCP of $36 billion. So we're growing strongly. We're increasing our market share. We're gaining market share faster than our competitors in an industry that is also growing. And you overlay that with the trend and the amount of people looking to retire and the success of Australia's supermotion system, it'll go as well for a very strong growth profile for the business moving forward. Looking through that on an advisor lens, There are now 37% of advisors in Australia using HUB24. On the left-hand side of the slide, you can see that increase in 21% in June 2022 to 37% in June 2026. Continual ongoing growth with a four-year cadence of 13%. Our market share having doubled from 5.1% in 2022 to 9.9%, almost doubling at 9.9% over the last four years as well. Look at the advisor scenario in the business. Our business has significant growth opportunity from both existing and new advisors. Once again, you can see the mix there of reliable, recurring revenue driven from flows from existing licensees and advisor relationships. at about 83%, a slight uptick. I think that represents the increasing share of book or share of customers that advisors are choosing to put on Hub24, but also seeing success in us getting 14% of our new flows from new advisors that belong to existing relationships we have in the market and 3% from new licensee relationships altogether. A strong lead indicator for our future growth, there were 552 new advisors actively using Hub24 in FY26, taking us up to $5,649. That all goes well for ongoing flows from existing, but also new flows from new advisors. So a great lead indicator moving ahead. And our share of funds under administration per advisor was up to $25 million, up from $14 million in FY22. We certainly hope to continue that trend of winning share from advisors. Having said that, having said that they... Transition typically takes six years for new advisor relationships to move the bulk or the portion of their bulk they're moving to Hub24 over. So the industry average for her advisor is $83 million. We've got an average of 25, a long runway there for existing advice, particularly when you consider the accolades and our position in the marketplace and plenty of growth to pick up new advisor relationships as we have done in FY26 as well. So we are continuing to support existing and new advisors through our strategy and our executions. Very pleased to be able to once again summarise our recognition from customers and industry researchers with the next slide from the Investment Trends Competitive Analysis and Benchmarking Report, our number one platform overall for four years running and you can see the other accolades there, Best Product Offering, Decision Support Tools, Reporting and Online Business Management. In Investment Trends Advisor Technology Needs Report, number one NPS, number one for actual advocacy and a host of awards are there as well. and in the investment trends managed accounts, we bought number one for overall satisfaction. Turning to advisor ratings, also number one in terms of NPS, and we ranked first in nine platform categories with advisor ratings and for Wealth Insights, also number one for NPS for all platform users with a range of number ones there as well. So a great result for us. We work very hard at it and we hope to continue to do in the future.

Taking a look at our tech solutions businesses,