HUB24 LIMITED — AGM Information 2019

Nov 10, 2019

AGM PRESENTATION 11TH NOVEMBER 2019

ANDREW ALCOCK MANAGING DIRECTOR

At HUB24 we make a difference in our customers' lives by connecting them to innovative solutions that create better investment outcomes

KEY MESSAGES

Continued strong growth in platform net flows and Funds Under Administration (FUA) in FY19 & Q1 FY20

Continued strong growth in underlying profitability

Continuing to invest in innovation and growth whilst controlling expenses

Increasing market opportunity as the future of wealth management takes shape

Our strategic focus is delivering results

• Leading market position
• FUA growth
• Industry recognition

Target FUA for FY21 now \$22bn - \$26bn1

(upgraded from \$19bn - \$23bn)

FY19 GROUP FINANCIAL HIGHLIGHTS

30.0% in FY18

FUA \$12.9bn up 54%

Insert Statutory NPAT \$7.2m

Full year dividend2 4.6cps up 31%

EBITDA

Platform Underlying 52% Up from

\$18.0m 33.3%

Platform Underlying EBITDA margin (35.1% in 2H19)

Comparisons are from FY18, unless stated otherwise

1. Underlying NPAT is a non-IFRS measure which is used to assess the operating performance of the business. Underlying NPAT represents Net Profit After Tax excluding abnormal items. See the HUB24 Analyst Pack for a reconciliation

2. Unfranked

FY19 BUSINESS HIGHLIGHTS

Industry Position Maintained our position as 1st in Managed Accounts for the 3rd year running Ranked 2nd in Annual & Quarterly Net Inflows2 1st for Decision Support Tools1 Product Innovation Multi-currency now available in managed portfolios Leveraging ConnectHUB to launch - Annuities on platform - Historical performance reporting Launch of MIS portfolios Growth has ensured Secured new opportunities - Brokers advisers

Rated No. 1 for Platform Offering and IT/Web Functionality³

• Now 69 available

Our focus on growth momentum in a dynamic market

• Self-licensed
• New advice models
• Mid-tier licensees

Strong pipeline in place for further growth

FUA \$12.9bn up 54%

Net flows \$3.9bn up 61%

Insert 2nd place

for annual net flows² up from 3rd place

1,625 advisers4 up 32%

Comparisons are from FY18, unless stated otherwise

1. Results from Investment Trends December 2018 Platform Competitive Analysis and Benchmarking Report.

2. 1. Strategic Insights Analysis of Wrap, Platform and Master Trust Managed Funds at June 2019 2ndin dollar terms
3. 1. Results from the 2019 Wealth Insights Service Level Report

4. Advisers using HUB24 platform

LEADING CHANGE IN WEALTH MANAGEMENT

• Delivering shareholder returns, improved financial performance and superior client outcomes
• Maintaining our position as the fastest growing platform provider1
• Our Agility Applications expertise is delivering new client relationships and enhancing our product offer
• Paragem is attracting new advisers from institutional licensees
• Our investment in ConnectHUB is enhancing our strategic offer and delivering growth

Multi-currency extending our managed portfolios leadership Managed portfolios represent \$5.6bn FUA2 and 44% of FY19 FUA growth (\$2bn)

1. Source: Strategic Insights. Analysis of Wrap, Platform and Master Trust Managed Funds at June 2019. HUB24 is the fastest growing platform provider relative to its size in percentage terms, 2nd highest in terms of annual dollar based net inflows and 2nd highest in terms of quarterly net inflows.

2. As at 30 June 2019

PLATFORM SEGMENT RESULTS (CONT'D…) FUA GROWTH DELIVERING SCALE BENEFITS

PLATFORM SEGMENT RESULTS (CONT'D…) FUA GROWTH DELIVERING SCALE BENEFITS

9 1. Underlying EBITDA represents earnings before interest, tax, depreciation, amortisation and other significant items. See HUB24 Analyst Pack for a reconciliation.

1. Platform expenses are the total of direct and operating expenses relating to the Platform Segment.

AWARDED AND RECOGNISED

We're rated

#1 Helping demonstrate value to clients2

for…

• Managed Accounts Functionality¹ (for 3rd year running)
• Decision Support Tools¹

• Portfolio Management tools²

• Client Portal/login2

• Range of Investments²

Our commitment to innovation and service has built strong customer advocacy

Highest Net Promoter Score from primary platform users²

1st Rated No. 1 for Platform Offering and IT/Web Functionality Top 2 in 6 of 9 categories³

Moved up to 2nd Place for overall adviser satisfaction²

¹ Results from Investment Trends 2018 Platform Competitive Analysis and Benchmarking Report based on extensive analyst reviews of 20 platforms across 492 functional points. ² Results from the 2019 Investment Trends Planner Technology Report. ³ Results from the 2019 Wealth Insights Service Level Report.

PROGRESS IN Q1 FY20

on pcp

for annual & quarterly Net Inflows²

Strategic investment

for Distribution team and managed portfolios development team well underway

onboarded to Paragem

1. Net Inflows represent gross inflows less outflows and do not include market movement

2. Source: Based on Strategic Insights. Analysis of Wrap, Platform and Master Trust Managed Funds at September 2019. HUB24 is the fastest growing platform provider relative to its size in percentage terms on an annual basis, 2nd highest in terms of annual Net Inflows and 2nd in terms of quarterly Net Inflows.

\$1,238m

STRATEGY AND OUTLOOK

THE MARKET CONTINUES TO SHIFT

13 1. Source: Strategic Insights. Analysis of Wrap, Platform and Master Trust Managed Funds at March ²⁰¹⁹ 2. Bell Potter: 2019 Australian Super and Adviser Landscape Reports

THE MARKET CONTINUES TO CREATE OPPORTUNITIES

	ANNUAL	QUARTERLY
	Rank	Rank
June-19	2	2
Jun-18	4	3
Jun-17	6	6

1. Based on Strategic Insights. Analysis of Wrap, Platform and Master Trust Managed Funds at June 2019. HUB24 is the fastest growing platform provider relative to its size in percentage terms on an annual basis, 2nd highest in terms of annual Net Inflows and 2nd in terms of quarterly Net Inflows.

2. Market share increase in previous 12 months

HUB24 IS WELL POSITIONED

INDUSTRY TREND HUB24 OPPORTUNITY

Demand for Managed Account solutions continues to grow

We are the market-leader in managed accounts and can build market share by leveraging this position

The non-aligned advice segment continues to grow

New licensee agreements provide access to ~1,400 new advisers and our pipeline continues to expand

Platform FUA is in transition as advisers separate from institutions and grandfathering is phased out

We have built bulk FUA migration capabilities to support large scale platform transitions and migrations

Increasing focus on best in class product choice and business efficiency - integrated and accessed via a single interface

Institutions are reshaping/exiting financial advice driving dislocation in the licensee segment

HUB24 delivers productivity and efficiency benefits for advisers. ConnectHUB is winning business and positioning HUB24 as the open architecture platform of the future

Paragem is attracting advisers previously aligned with incumbent platforms focused on positioning their business for the future

STRATEGY & OUTLOOK LEVERAGE OUR FOUNDATIONS FOR GROWTH

• From existing relationships and new opportunities won in FY19 across financial advisers and stockbrokers
• Conversion of current strong pipeline
• Leveraging our market leading product capability
• Managed Portfolios
• ConnectHUB
• Core and Choice platform offer

Continuing FUA growth Constant innovation that delivers customer and shareholder value

• Services and products to support the transformation of advice
• Continued development and rollout of ConnectHUB and Agility solutions to advisers, brokers and their clients
• Customer satisfaction improvements from enhanced platform efficiency, simplicity and service
• Enhanced portfolio reporting, research and comparison tools for advisers and clients

Continue to grow and develop Paragem

• New leadership team building momentum
• Refreshed strategy and broadened offer including development of new adviser community program supporting growth, retention and innovation
• Continue onboarding pipeline of new advisers and secure further adviser growth

STRATEGY & OUTLOOK INVESTING TO SECURE THE OPPORTUNITY

Grow our distribution footprint nationally

• Leverage our FY19 success to service and convert existing adviser, broker and licensee opportunity
• Invest in an expanded distribution footprint (~ 8 FTE) to take advantage of the market opportunity

Extend our leadership in managed portfolios

• Innovate to further unlock client value, disrupt existing investment paradigms and increase international investment accessibility
• Create new portfolio capabilities and attract new investment managers
• Invest in additional IT development team (~ 8 FTE)

Accelerate growth in market share

• Increase FUA by with transitions and growth in organic inflows
• Supported by product innovation and expanded distribution footprint
• Resulting flows expected to emerge 2H FY20
• Full benefits expected in FY21 and beyond

Target FUA for FY21 now \$22bn - \$26bn1

(upgraded from \$19bn - \$23bn)

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. Any arithmetic inconsistencies are due to rounding.

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

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 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 forwardlooking 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.