HUB24 LIMITED — AGM Information 2016

Nov 28, 2016

Annual General Meeting Managing Director’s Address 29 November 2016

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Overview

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Business Overview

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Agility Acquisition

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FY16 Highlights Financial results

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Outlook

Appendix A – Corporate Appendix B – Results 20 reconciliation Appendix C - Segment results

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HUB24 – Investment platform of choice

HUB24 IS A LEADER IN WEALTH MANAGEMENT PLATFORMS UNDERPINNED BY MARKET LEADING TECHNOLOGY

• The fastest growing wrap platform* capitalising on significant disruption in the wealth management industry

• Four consecutive quarters of record gross inflows for FY16

PLATFORM REVENUE AND RETAIL FUA

• Now PBT positive on a monthly basis**

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FUA Revenue FUA Revenue
$M $M  Margin expansion occurring at increasing scale
3,500 18
3,000 4 Yr CAGR of FUA 128% 16  Includes Paragem (Licensee with a national
4 Yr CAGR of Revenue 187% 14 adviser network) with greater than $3 billion in
2,500 funds under advice
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2,000 10
1,500 8
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1,000 Leading Industry
500 4 independent platform recognised
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provider and awarded
- -
FY13 FY14 FY15 FY16
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• Source: Plan For Life. Analysis of Wrap, Platform and Master Trust Managed Funds at March 2016. HUB24 is the fastest growing wrap platform relative to its size in percentage terms, 5[th] fastest in dollar terms of net inflows.

• ** PBT positive on a monthly basis since June 2016,not subject to audit.

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HUB24 is capitalising on key market trends at a time of favourable market disruption

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The new world of managed portfolios

A BROAD AND NON-ALIGNED INVESTMENT MENU

HUB24 seamlessly integrates managed portfolios with managed funds, TDs, equities and ETFs in the one account. Your clients will benefit from simpler and cheaper trading, plus transparent reporting on all direct and managed assets

• Over 200 professionally  An array of term deposit managed portfolios providers, insurers and margin lenders

• Over 900 managed funds

• Non-custodial asset

• All ASX listed equities, integration

• ETFs and LICs  Connection with almost any

• Access to international external cash facility

• listed securities

All the features of a traditional wrap platform combined with the new world of managed portfolios

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Creating real value for our clients

HUB24 OFFERS THE MOST FUNCTIONAL MANAGED PORTFOLIO TECHNOLOGY WITHIN A FULL SERVICE PLATFORM

Enabling licensees to innovate, improve revenues and manage risk

KEY FEATURES THAT SET HUB24 APART INCLUDE:

• Depth of managed portfolio functionality, now including IMAs

Helping advisers to efficiently improve their value proposition and profitability

• Tax optimisation features & portfolio construction tools

• International managed portfolios across 15 major exchanges traded daily

Making a real difference for investors by supporting better financial outcomes with greater transparency and flexibility

• Delivery across multiple legal structures – IDPS, Super, MDA, Wholesale, Reporting Services

• Unique proprietary technology with ongoing innovation

• Industry leading team with compelling experience

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HUB24 is well positioned for further growth

INDUSTRY GROWTH FORECASTS

Sector	Predicting	By Year	CAGR
Superannuation assets	$9.5 tn	2035	8.1%
Deloitte Dynamics of Superannuation Report 2015
Wrap Platforms	$315 bn	2030	10.4%
Rice Warner’s Personal Investment Market Projections Report 2015.
Managed portfolio (SMAs)	$60 bn	2020	32%
Morgan Stanley Research Asia Insight June 22, 2016. Disruptors: Australia		Financials

Wrap platforms: fourfold increase next 15 years the fastest growing personal investment sector*

Managed portfolios could account for 75% of platform net inflows**

NEWLY RELEASED MORGAN STANLEY RESEARCH REVEALED THAT:

• Incumbent business models face disruption from managed accounts/SMAs

• Managed portfolios are a ‘better mousetrap’ – delivering higher flows and market share to modern industry players.

• Business models are realigning around the customer, managed portfolios are inverting the traditional value chain

• Impetus for managed portfolios is from financial planners seeking to grow revenue, and the value of their practices

Abundant room for growth HUB24 has 0.97% of the market*** with fastest FUA growth with CAGR of 128% over the past 4 years

• Rice Warner’s Personal Investment Market Projections Report 2015.

• ‘** Morgan Stanley Research Asia Insight June 22, 2016. Disruptors: Australia Financials *** Source: Plan For Life. Analysis of Wrap, Platform and Master Trust Managed Funds at March 2016

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Recognised by our market

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HUB24 IS RECOGNISED AS A LEADER IN OUR MARKET AHEAD OF TRADITIONAL ESTABLISHED PLATFORM PROVIDERS

INVESTMENT TRENDS PLANNER TECHNOLOGY REPORT*

Ranked first for Value for Money the most important driver of platform satisfaction

Ranked first for

Mobile access | Pricing flexibility | Tax optimisation tools

Top 2 for Overall planner satisfaction

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INVESTMENT TRENDS PLATFORM BENCHMARKING REPORT*

Awarded Best Navigation and User Interface

Awarded Best Tablet/Smartphone Access

In the top 3 platforms for overall functionality

Ranked first for managed accounts functionality within the top 3 overall platforms

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SUPER RATINGS FAST MOVER AWARD 2017

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SUPER RATINGS GOLD 2017

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Agility – strategic rationale for acquisition

• Agility Applications (‘Agility’) - specialist provider of application and technology products and services to the financial services industry

• Over 2,300 users who are predominately stockbrokers from within 165 firms, reporting on over $200 billion of client assets

(Brokers)

• HUB24 and Agility aim to be the leading provider of wealth management platform and financial technology services to the stockbroking and non-aligned advice market

• The Founders will remain in the business following HUB24's acquisition

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Agility – consideration

• HUB24 will pay the vendors consideration as follows:

• $6 million on completion, made up of $2 million in cash and $4 million in HUB24 ordinary shares

• Up to a further $5.5 million in cash and $3.5 million in HUB24 ordinary shares, subject to certain conditions and performance hurdles to be met progressively over the next three years

• Any shares issued would be subject to escrow and will be issued by reference to the 20 day VWAP prior to the relevant issue date.

• Expected to be earnings per share accretive for HUB24

• The acquisition is subject to conditions precedent with Completion targeted for early January 2017

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FY16 highlights

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102[%] growth in retail net flows to $1.6bn

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Retail FUA growth of 94% to $ 3.3bn (Now $3.96bn)

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Launch of international managed portfolios

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1 [st]
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in categories for value for money, mobile access & tax optimisation tools*

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Transition to profitability
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Increase in Platform segment revenue of 91[%]

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Positive group
EBITDA
for 2HFY16
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Positive group Positive monthly group
EBIT PBT
for 4QFY16 Since June 2016
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• Results from Investment Trends December 2016 Planner Technology Report based on extensive analyst reviews of 22 platforms across 506 functional points.

• ** EBITDA represents earnings before interest, tax, depreciation, amortisation and other significant items. *** EBIT represents earnings before interest, tax and other significant items

• **** PBT represents profit before tax. Monthly results have not been subject to audit.

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Financial Results

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Group financial results

Group revenue includes Platform	($15.4m) and	Licensee segments	Licensee segments
($27.3m) GROUP	FY15	FY16	%
FINANCIAL RESULTS	$m	$m	CHANGE
Group revenue	28.3	42.7	51%
Direct costs Gross profit	(23.5) 4.8	(31.8) 10.9	36% 125%
Operating expenses	(5.3)	(7.2)	37%
Operating EBITDA	(0.4)	3.7	977%
Growth resources expensed	(4.0)	(4.5)	14%
EBITDA*	(4.4)	(0.8)	81%
NPAT	(6.5)	(1.2)	81%

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includes Platform ($15.4m) and Licensee segments ($27.3m)

include trustee, administration and transaction services for Platform and adviser remuneration for Licensee.

includes compliance, facilities, marketing, IT infrastructure and professional services

Includes costs for platform

development, strategic development (inclusive of M&A) and other costs to accelerate FUA onto the platform

Deferred tax asset for temporary differences of $1m recognised in FY16 given proximity to profitability

EBITDA positive for 2HFY16*

EBIT positive for Q4FY16**

PBT

positive since June 2016***

Other significant items reported in NPAT include interest, share based payments, non-recurring corporate costs, amortisation and tax expense. (refer Appendix B) * EBITDA represents earnings before interest, tax, depreciation and amortisation and other significant items ** EBIT represents earnings before interest, tax and other significant items

*** PBT positive on a monthly basis since June 2016,not subject to audit.

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Platform segment results

GROUP FINANCIAL RESULTS	FY15 $m	FY16 $m	% CHANGE
Retail FUA (now $3,962m)	$1,701	$3,313	94%
Revenue	8.1	15.4	91%
Direct costs	(4.9)	(6.8)	40%
Gross profit	3.2	8.6	171%
%	39%	56%	44%
Operating expenses Operating EBITDA %	(3.4) (0.2) (2%)	(4.8) 3.8 25%	42% n/a n/a
Growth resources expensed *	(3.9)	(4.4)	13%
EBITDA**	(4.1)	(0.6)	86%
%	(51%)	(3.7%)	93%
PBT	(4.0)	(0.6)	85%

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Revenue growth driven by: Net inflows of $1.6 billion from a broadening client base, an increase of 102% on FY15

Gross profit growth driven by: Improved margins from increased scale & negotiated reductions in platform transaction costs

Investment in fixed cost base brought forward to support recent contracts and strong pipeline. Negligible growth in opex from 1HFY16 to 2HFY16.

EBITDA margin continues to expand with increasing scale

EBITDA positive for 2HFY16**

EBIT positive for Q4FY16***

PBT

positive since June 2016****

Other significant items reported in PBT include interest, share based payments, non-recurring corporate costs, amortisation and tax expense. (refer Appendix B)

• Growth resources expensed are costs for platform development, strategic development (inclusive of M&A activity) and to accelerate additional FUA onto the platform

• ** EBITDA represents earnings before interest, tax, depreciation and amortisation and other significant items *** EBIT represents earnings before interest, tax and other significant items **** PBT positive on a monthly basis since June 2016,not subject to audit.

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Platform segment results

MARGIN EXPANSION AT INCREASING SCALE

PLATFORM – REVENUE, GROSS PROFIT, OPERATING EBITDA* AND EBITDA TRENDS**

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$'m Revenue Gross Profit Operating EBITDA EBITDA
20
15
10
5
0
(5)
(10)
FY13 FY14 FY15 FY16
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PLATFORM REVENUE AND COSTS

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Revenue
$ M FY16
Revenue increase – 91%
18 Direct & operating
Cost increase – 40%
16 expenses
14
12
10
8
6
4
2
-
FY13 FY14 FY15 FY16
PROFIT MARGINS AS A % OF
PLATFORM
REVENUE
PROFIT LINES
FY13 FY14 FY15 FY16
Gross profit (111%) (5%) 39% 56%
Segment operating EBTDA (381%) (106%) (2%) 25%
Gross EBITDA (606%) (213%) (51%) (4%)
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• Operating EBITDA represents earnings before interest, tax, depreciation, amortisation, growth resources expensed and other significant items ** EBITDA represents earnings before interest, tax, depreciation, amortisation and other significant items

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Platform segment results

	FY16	INCREASE
	$M	ON PCP
Retail FUA (now $3,962m)	3,313	94%
Net inflows	1,610	102%
Gross inflows	1,930	102%
Number of advisers	659	32%

BROADENING

NOW OFFERING

DELIVERING

distribution base with international 71 active licensees, managed portfolios 11 white labels, and IMAs 29 new licensees to the platform in FY16

across multiple legal structures

 IDPS

 Super

 MDA

 Wholesale

New White labels announced for Fortnum, Lifespan and Infocus / Patron

 Reporting service

AVERAGE MONTHLY NET INFLOWS

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'M
140
Large client
120 transition
100
80
60
40
20
0
FY12 FY13 FY14 FY15 FY16
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INFLOWS AND NUMBER OF ADVISERS

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800 700
700 600
600
500
500
400
400
300
300
200
200
100 100
0 -
Net Inflows (LHS) Gross Inflows (LHS) Advisers (RHS)
June '12 Sept '12 Dec '12 Mar '13 June '13 Sept '13 Dec '13 Mar '14 Jun '14 Sept '14 Dec '14 Mar '15 Jun '15 Sep-15 Dec-15 Mar-16 Jun-16
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Licensee segment results

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LICENSEE FINANCIAL FY15 FY16 %
RESULTS $M $M CHANGE
Revenue 20.2 27.3 35%
Direct costs (18.5) (25.0) 34%
Gross profit 1.7 2.3 37%
Operating expenses (1.6) (2.1) 30%
EBITDA 0.1 0.2 233%
PBT 0.0 0.2 N/A
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• Licensee transitioned 3 new practices during the period and has strong pipeline

• Revenue increase of 13% over prior corresponding period

• Further investment options introduced to the HUB platform for Paragem advisers

LICENSEE REVENUE

$ M

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30
25
20
15
10
5
-
2010 2011 2012 2013 2014 2015 2016
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Other significant items reported in PBT include interest, share based payments, transaction costs, amortisation and tax expense. (refer Appendix B) * EBITDA represents earnings before interest, tax, depreciation and amortisation and other significant items

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Corporate segment results

CORPORATE SEGMENT	FY15	FY16	%
RESULTS	$M	$M	CHANGE
Operating expenses	(0.28)	(0.35)	25%
Growth resources expensed	(0.09)	(0.12)	20%
EBITDA*	(0.38)	(0.47)	24%
Interest revenue	0.32	0.21	(34%)
Share based payments	(0.90)	(1.31)	45%
Non-recurring corporate costs	(0.4)	(0.3)	(51%)
PBT	(1.4)	(1.9)	38%
Tax	-	1.1	n/a
NPAT	(1.4)	(0.8)	(43%)

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Corporate overhead expenses allocated to the corporate segment

• Issue of options during the year ended 30 June 2016 and an adjustment to the expected probability of options vesting

Non-recurring corporate advisory, tax and legal costs, including the evaluation of potential business opportunities

A deferred tax asset relating to temporary differences brought to account in FY16 given proximity to profitability

Other significant items reported in NPAT include interest, share based payments, transaction costs, amortisation and tax expense. (refer Appendix B) * EBITDA represents earnings before interest, tax, depreciation and amortisation and other significant items

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Outlook

Strengthening profitability and corporate activity

Forecast positive NPAT for 1H FY17

Ongoing business development and growth

Extend industry leadership position through product innovation

Continue to leverage changing industry dynamics

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Outlook

CONTINUING

profit margin expansion with increasing scale – positive PBT for first half FY17

MAXIMISE

existing adviser and licensee relationships with increasing sales effort and service innovation

INCREASE

current product range and continue to extend capabilities

ACTIVELY

review strategic acquisition opportunities and develop profitable business alliances

GROW

revenues as stockbrokers continue to become ‘wealth managers’ by leveraging our integrated non-custody reporting services and securing new relationships

FURTHER

develop our technology to enhance adviser experience and practice efficiency whilst continuing to improve user interfaces for investors

ONGOING

business development including new white labels offers for dealer groups, stockbrokers and accountants

GROW

Paragem licensee by recruiting quality practices to provide exceptional advice and platform solutions

CONTINUE

to invest in our high calibre talented team to unlock further growth and innovation

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Appendix A – Corporate

CAPITAL STRUCTURE AT 28 NOVEMBER ‘16

	Shares on issue	53.5m
	Share price	$5.69
	Market capitalisation	$304m
	Unused tax losses	$13.84m

SUBSTANTIAL SHAREHOLDERS

	Thorney Holdings Ltd	18.76%
	Acorn Capital Ltd	10.52%
	Commonwealth Bank of Australia	7.03%
	Ian Litster	6.78%

BALANCE SHEET AS AT 30 JUNE ‘16

	Cash and cash equivalents	$9.27m
	Other current assets	$5.45m
	Non-current assets	$14.13m
	Total assets	$28.85m
	Current liabilities	$4.34m
	Non-current liabilities	$5.55m
	Total liabilities	$9.89m
	Net assets	$18.96m
	Equity	$18.96m

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Appendix B – Results reconciliation

GROUP FINANCIAL	FY15	FY16	%
RESULTS	$M	$M	CHANGE
EBITDA (Continuing Operations)	(4.4)	(0.8)	81%
Interest revenue	0.4	0.4	(7%)
Non-recurring revenue	0.6	0.6	2%
Share based payments	(0.9)	(1.3)	45%
Non-recurring corporate costs	(0.4)	(0.2)	(51%)
Depreciation & amortisation	(0.6)	(0.8)	25%
Profit Before Tax (Continuing Operations)	(5.4)	(2.3)	57%
Tax	-	1.1	100%
Discontinued operations	(1.1)	-	(100%)
NPAT	(6.5)	(1.2)	81%

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Appendix C – Segment results

FINANCIAL PERFORMANCE –	PLATFORM	LICENSEE	CORPORATE	FY16	FY15**	%
SEGMENTS (continuing operations)	$M	$M	$M	$M	$M	CHANGE
Recurring revenue	15.4	27.3	-	42.7	28.3	51%
Direct costs	(6.8)	(25.0)	-	(31.8)	(23.5)	36%
Gross profit	8.6	2.3	-	10.9	4.8	125%
Operating expenses*	(4.8)	(2.1)	(0.4)	(7.2)	(5.3)	37%
Operating EBITDA*	3.8	0.2	(0.4)	3.7	(0.4)	977%
Growth resources expensed*	(4.4)	-	(0.1)	(4.5)	(4.0)	14%
EBITDA	(0.6)	0.2	(0.5)	(0.8)	(4.4)	81%
Interest	0.2		0.1	0.3	0.4	(7%)
Non-recurring revenue	0.6			0.6	0.6	2%
Non-recurring corporate costs			(0.2)	(0.2)	(0.4)	(51%)
Share based payments			(1.3)	(1.3)	(0.9)	45%
Depreciation & amortisation	(0.8)			(0.8)	(0.6)	25%
PBT	(0.6)	0.2	(1.9)	(2.3)	(5.4)	57%
Tax				1.1	-	100%
Discontinued operations	-	-	-	-	(1.1)	(100%)
NPAT	(0.6)	0.2	(0.8)	(1.2)	(6.5)	81%

• Operating expenses includes all expenses incurred in servicing current FUA for the platform and salaries and administrative expenses for the licensee. Growth resources expensed are costs for platform development, strategic development (inclusive of M&A activity) and to accelerate additional FUA onto the platform. Operating EBITDA excludes growth investment expenses and other significant items. ** Prior corresponding period includes the Licensee segment for the period 1 September 2014 to 31 December 2015.

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Disclaimer

SUMMARY INFORMATION

The material herein is a presentation of general background information about HUB24 Limited’s (‘HUB’) activities current as at date of presentation. This information given in summary form does not purport to be complete and should be read in conjunction with previous ASX filings, Half Year Report and the audited Annual Report as applicable.

NOT INVESTMENT ADVICE

This presentation is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) and has not been lodged with ASIC. The information provided in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

RISK OF INVESTMENT

performance of HUB nor does it guarantee the repayment of capital from HUB or any particular tax treatment.

FORWARD LOOKING STATEMENTS

This presentation contains certain forward-looking statements. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, forecast’, ‘estimate’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of HUB, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place reliance on forward-looking statements and neither HUB nor any of its directors, employees, consultants, contractors, advisers or agents assume any obligation to update such information.

An investment in HUB shares is subject to investment and other known and unknown risks, some of which are beyond the control of HUB. HUB does not guarantee any particular rate of return or the