Thank you for standing by, welcome to the HUB24 Limited Analyst Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Andrew Alcock, Managing Director. Please go ahead. Good morning, everyone. Thank you so much for joining us at short notice on what we believe is a very exciting day for HUB24 to announce an acquisition that we've undertaken, the acquisition of myprosperity. I'm beaming to you from Perth. I'm actually currently on an advisor roadshow and having spoken to a number of advisors last night about what makes HUB24 tick and our DNA and empowering better financial futures together. I would've been able to share this with advisors yesterday evening in Perth, but certainly keen to share it this morning because it would've been very relevant to the discussion we were having yesterday. HUB24 this morning is announcing the acquisition of myprosperity. Effectively, it's an online client digital portal that's doing really well in the market and will help us accelerate our strategy. Absolutely, it's about who we are and in terms of powering better financial futures for Australians and helping advisors and accountants reduce friction in the advice process. A great acquisition for HUB24, a very strategic acquisition for us in terms of progressing on that strategy. I've got Jason Entwistle and Kitrina Shanahan here with me today. They're in Sydney, I'm in Perth, looking forward to giving you a short presentation then opening up for Q&A. We might move on to the next slide, which is about the acquisition of myprosperity. As I said, the acquisition is about accelerating our strategy. We talk quite often about platform of the future. That as a business, the disruptor doesn't wanna be disrupted. We wanna continue to lead change in this great industry and really unlock value for customers and advisors through the use of great technology in the advice and wealth management space. This acquisition helps underpin that. It strengthens our value proposition and certainly aims to create further growth opportunities for us and the businesses inside the HUB24 Group, being HUB, Class, now NowInfinity, and now myprosperity as well. As I said, it's a highly high-value strategic asset with established capability and client base. Jason Entwistle will talk a bit more about the history and the heritage and the functionality in myprosperity. A market-leading client wealth portal that's really positioned for growth moving ahead. In the HUB24 stable, we hope to accelerate that growth for both them and for our businesses as well. Increasingly, financial professionals are looking for digital client engagement portals as opposed to having to go through multiple different front ends or different systems for different providers with the clients. It's have it all in one place, but increasingly, let's let make it be digital and secure in terms of cybersecurity and not be emailing sensitive documents around the marketplace. It really resonates in terms of that demand there. As I said, it accelerates our Platform for the Future strategy. Over time, it will provide a single client front-end access to the HUB24 Platform offers, both Custody, Non-custody, Class, NowInfinity and HUBc onnect, as one way of accessing, one way of doing business with our stable of businesses, really giving an integrated ecosystem, if you like, across the value chain and across the services we have for clients and financial professionals. The acquisition we expect is gonna reinforce our current number one position, and support our current growth trajectory. It's great for advisors, to see and for customers to see us continuing to invest and continuing to think about the future and what we can do to create, more value moving forward. Strengthens our competitive advantage across our business to support further market share growth and create some new opportunities where we can use myprosperity with other businesses inside the HUB Group to look at ways of accessing different parts of the market with different client and product mixes, as well as creating a better value proposition for end clients. Moving on to the next slide, a bit of an overview of the transaction. As I said, we've agreed to acquire all the shares of myprosperity. Just waiting for the slide to. Sorry, I can't see the slides moving. There you go. Sorry, folks. The we're acquiring 100% of myprosperity, AUD 40 million of HUB24 Limited ordinary shares at the 30-day VWAP, being last night of AUD 26.73. That's about 1.4 million shares being issued with up to AUD 11.5 million in ordinary shares, or another 400,000 odd shares to be issued subject to conditions and performance hurdles over the next three years being progressively met. That includes integration of myprosperity fully into the HUB24 platform. A light integration followed by a deep integration across HUB, Class, NowInfinity, and all our offers. Some revenue synergy targets of between AUD 7.2 million-AUD 21.2 million by FY 2026, which will be the measures we'll use in terms of determining how much further consideration is paid for the acquisition. In terms of our financial impact, it's a really strategic transaction for us, supporting our current value proposition and future growth. Expected to be EBITDA positive in 2025, EPS neutral in 2026, and EPS accretive in 2027 of about 4%-5%, with moderate transaction costs of about AUD 400,000 in this financial year and minimal implementation costs. The CEO of myprosperity, Mr. Peter McCarthy, delighted to have him joining our team, remaining a core part of the business. We are buying the business and wanting to operate it as a wholly owned subsidiary, but allow the business to retain its own corporate identity, brand, Melbourne-based team to really continue to execute on their own growth strategy, looking after their existing clients and pursuing further growth as a standalone portal. As well as the opportunities that arise for both of us with integrating or further integrating myprosperity into HUB24. You might not be aware that HUB24 and Class currently do provide data feeds to myprosperity as third-party data providers. We've done that for a number of years, but our plans, and Jason will talk a bit more about this, are to do some further integration, have some of the functionality in myprosperity come into the HUB24 Platform, to accelerate that single view of wealth strategy and Platform of the Future. We're targeting completion prior to June 30, 2023, and we'll keep you posted on that as well. A bit of an overview of the transaction there. Moving on to the next slide, just a little bit about myprosperity. Just starting on the right-hand side of the slide there in terms of their current business profile. They have about 440 relationships with accounting or financial advisory firms. They are able to report and service about 60,000 households. The word household is really interesting there because if we think about a single view of wealth for a client, well, that single view of wealth might include their family trust, it might include their SMSF, it might include their spouse or their children or extended family members' wealth in terms of how they invest and where they're invested. Getting a holistic view of household wealth is really key for advisors to have great insight and deliver great outcomes for their customers. It's about 16,000 premium subscribers, so that's a software subscription service model. There's two models of delivery for myprosperity currently, there's a premium subscriber level where subscribers pay a higher fee. About AUD 4 million of revenue for the business estimated for FY 2023. Interestingly, the assets and liabilities that they're tracking to help financial professionals are in the realms of AUD 135 billion of household assets being tracked and AUD 22 billion of liabilities. The portal has a whole lot of key features in terms of digital document signing, consents, task automation, helping accountants and financial advisors get approvals to proceed with work from clients. Virtual rooms. I know Jason will talk a little bit about virtual rooms and collaboration that creates. It integrates really well with leading accounting and financial planning practice management systems to help with onboarding, digital forms, tax checklists and so forth, and portfolio reporting. On the left-hand side, look, the myprosperity is a leading provider of secure client portals, connecting clients and their advisors together. Company's Melbourne-based, 11- 2011 established, leveraging some development that's been going on for over a decade, and we're really delighted to be able to bring that to the HUB24 stable and go to market with that fairly rapidly. 33 employees. As I said, it's a leading portal that increases efficiency and streamlines engagement. Jason will touch on that in the next few minutes. It combines their proprietary technology with an ecosystem of third-party integrations. We'll give you a snapshot of those in a few minutes as well. That's the usual suspects, accounting platforms and other feeds. As I said, software subscription model, uniquely positioned for the next phase of growth. myprosperity's done a great job of being a software subscription service in the marketplace, with some take-up occurring, some, you know, some broad take-up occurring, and the business really at the next phase of its growth and should benefit very much from being integrated with the HUB24 family and stable as well. Moving on to the next slide. I'll hand over to Jason Entwistle, who is our Director of Strategic Development, to give you an outline of the strategy, the rationale, and how it fits in the broader market. Over to you, Jason. Thanks, Andrew. Morning, all. HUB already sits in the advice and the accounting industries. Obviously, some of those firms are multidisciplinary doing both. That's a big market, and we have significant relationships across that market. We really believe that myprosperity allows us to broaden and deepen our relationships into that market, providing new ways we can engage with our existing clients and allowing us to recruit new firms, new accounting firms, new financial advice firms into the group, with myprosperity as the sort of entry point for their new relationship with HUB. We're really excited about the technology and what it can deliver us. Obviously, those financial professionals that will use myprosperity, they service a very significant number of Australians. Around six million Australians have a relationship with an accounting, an accounting firm, and about 1.8 million Australians receive financial advice through an advisor. There's actually been quite low adoption of portal technology to help financial planners and accountants service that market. Now, why is that? Our view is that there's been relatively low adoption because the functionality historically hasn't really been there. The big tech providers, and I'm talking financial planning tools and platforms, et cetera, yes, we have portals, but it's very much been focused on just our little part of the woods, if you like, without delivering the full solution that advisors and accountants need for their whole business. There hasn't been significant investment in the portal technology historically. myprosperity is an outlier. 11 years of sunk development, a business that's absolutely poised for growth and has the functionality to deliver into this market. I think another part of that has been the low confidence of the financial planning professionals in the underlying data that they're serving up through the portal. If you don't trust the underlying data, you're not gonna give real-time access to it to your clients. With our Class acquisition, our Data as a Service initiative, we really believe we can deliver trusted data, secure data through the portal, and through the financial planning business, through the accounting business, to those end clients in a way that the advisor and accounting firm, they'll be proud of it. They'll want their clients to have access to the portal and deliver a great experience. I think the old habit of emailing information around has also been dying hard. You know, today, accounts and advisors are still asking clients to send really sensitive information by email. We know with the cyberattacks, the global cyberattacks that are occurring, that that has a limited lifespan. With myprosperity having built the functionality, HUB can underpin the data quality and with the risk of the cyberattacks forcing groups to change because the data is too valuable, too sensitive for licensees and insurers to accept that the old practice of emailing things around can live on. We think the whole industry is on the, on the edge of a big change in how we interact with our end clients. Adopting a secure client portal is going to be a necessity going forward. That's a massive opportunity for us. It's a massive opportunity for myprosperity. We also see it's a real opportunity for advisors and accountants to engage clients in a new way to improve engagement through digital means. It's mobile means it'll increase their efficiency and delight clients with a new mobile experience. Hence we're so excited about where we think this can go. If we can go to the next slide, please. Just on that, it really is changing and transforming the engagement. As I said, clients have two big problems in managing their wealth, where they're dealing with advisors, accountants, and sometimes lawyers for estate planning. At the moment, those interactions are quite binary, one-off. I'm dealing with my accountant today, I might deal with my advisor next month, et cetera. They're very manual in the way we transfer data, and often by email. For the client to get a single view of their household wealth or their balance sheet, and for the client to have those financial professionals collaborating with each other rather than the client having to manage the relationships, it's been difficult. That's what we think myprosperity solves. Andrew mentioned the concept of rooms. myprosperity has a digital environment in which those financial professionals, with the permission of the client, can collaborate with each other, they can share the data, they can see the same data, and they can manage to-do lists, tasks for each other, et cetera, in a way that it takes the burden off the client for managing those interactions. They can also see all the data in the one place. It really is that household view of wealth. Again, coming back to it, we think this is for a whole bunch of reasons. There's the cybersecurity angle, the need for advisors to engage in different ways and delight clients and take the burden off the client in managing their relationships. We think the client portal per our industry is about to take off and hence we've acted with this acquisition. Moving on, the next slide. One of the unique things about myprosperity is the fact that not only does it service the needs of advisors in delivering a client portal to that part of their industry, but it also deals equally with accountants. Given that we have the Class business and NowInfinity and a lot of accounting clients, we have the platform with a lot of advice clients, myprosperity sits very snugly in the middle, servicing both. It's done the work to integrate to the practice management systems or the tech ecosystems of both of those parties. It integrates with software like Xero and APS, GreatSoft part of MYOB, for the accounting practice management. It integrates with Iress, with Xplan, Midwinter, and AdviserLogic on the financial planning practice management. In signing up as a new user of myprosperity, those data interfaces are turned on. The client data is absorbed by myprosperity. The advisor or accountant then manages the aggregation of that data at a household level and delivers it to the client. It's a very easy setup. We think the barrier to adoption is really low. We're really excited about how quickly this can get rolled out. Moving on. On the, you know, we've talked about our platform and the purpose of platforms for the last 30 years being the delivery of a single view of wealth for the client that the advisor can manage, one way of doing business, so the advisor's back office is far more efficient, and things like giving advisors and licensees visibility and reporting and insights on all the data that they effectively hold. And you've seen these diagrams before. We really see myprosperity as the core of our platform of the future that we've been talking about for a while. This is really giving us a much faster entry to market for the capability that we've been on the path of building. We've done a lot of work through acquisition, through development of building the underlying data capability that will underpin this. We've got a lot of functionality. I think you've all seen our present functionality that we've built on top of that, market-leading way we report on the portfolios. With all of the data that we have from the platform assets, other platform data we have through our Data as a Service, which Class underpins, things like open banking that's coming through, other assets like investment properties that myprosperity tracks. They can track cars, you name it, they can track any asset. Then we have our significant non-custody administration, which has given us a lot of broker feeds for shares that are held on HIN. With all of that data coming into the myprosperity ecosystem and being delivered through the portal, we really think it fast tracks our strategy of delivering that platform of the future for our clients. Again, you've probably seen this diagram before or parts of it. Picking up on that theme, our HUBconnect infrastructure with all the data interfaces that we have underneath. Is driving not only our platform but the other parts of our business, HUBconnect, Class and NowInfinity. We're increasingly integrating all of that capability together. The great thing about myprosperity acquisition is this will be our face to the world. This will be the single portal in which we're able to deliver all of that capability to our clients and their end clients. The functionality of myprosperity with its document vault, for instance, we have a document vault sitting within HUB24. We have one sitting within NowInfinity and Class. myprosperity will be the expression to the world of a single vault that the advisor and the client can access at one point to get all of that information. myprosperity has a task tracker to keep the financial professional and the client on track with whose next action is it, whose job is, you know, who's on the hook for the next action and trying to keep the advice process or the accounting tax process on track. It has significant e-signing capabilities. I mentioned the virtual rooms before. It has a fact find, and really importantly, it has the interfaces to the ecosystem of the financial professional, being accounting software or the financial planning software. It's all in that one place. We definitely intend to deliver Class, NowInfinity, HUB24 and HUBconnect capability through myprosperity to the market. We will also incorporate some of the myprosperity functionality within those solutions. When you buy HUB24 Platform, over time, some of the myprosperity capability will be living within the platform and delivered as part of that solution. The same for Class, the same for NowInfinity. It will go two ways. myprosperity will continue as its own business with the great tool that it is. We really want it to grow. We're gonna invest in that growth, get it to market. Increasingly, the capability that they've built over the last 11 years, some of that capability will start to live within the platform, within Class and be packaged up as part of those solutions. Andrew, I wanna hand back to you. Thank you, Jason. Great. That's really good. A good explanation there of how myprosperity fits in the world of wealth value chain, but also integrated with HUB24, and as Jason touched on, continuity for the business itself. If we move on to the next slide, as being part of our business or the HUB24 business, myprosperity is gonna benefit from a long-term committed partner that really is willing to invest and continue to invest in myprosperity and the overall HUB24 offer to the marketplace to accelerate growth for both businesses. As Jason said, continuity for myprosperity. Yes, the functionality will gradually move into- Some will move into HUB24, but at, in and of itself, myprosperity will continue to operate as a standalone entity, as a portal, with software subscription revenue in the broader marketplace to its existing clients, continue to invest and change and grow and enhance the functionality offered and seek new clients on that basis, as well as being integrated into the HUB24 ecosystem. As part of HUB24, there's the benefits of continuity for the team, the strategy, current clients, as well as the opportunity to grow linked with HUB24, backed by a committed partner and backed with some investment to drive that growth. Over the longer term, myprosperity customers will benefit from a deeper integration between HUB, Class, NowInfinity and obviously have access to HUB24 Group relationships to help that business grow even further, provide opportunities. Benefits for myprosperity, it is on the cusp of, if you know, it's a great business that's leveraged or positioned really well for ongoing growth and in the HUB24 Group, us leveraging each other's capability to do that, will accelerate that growth and accelerate our execution of platform of the future. A win-win for everyone. If we move on to the next slide. I've got one more before we open up for questions. The acquisition in summary on the right-hand side there, and I won't repeat that. You've got the financial details, as I said earlier, with the consideration, the EBITDA impacts and the EPS impacts expected to be accretive in FY 2027 to about 4%-5%. The acquisition in summary, it's a highly complementary business. I hope you can see from the presentation this morning how that fits and works with our current vision and so forth. It's complementary in terms of culture and values as well, really aiming at challenging the marketplace and creating a much better outcome for clients and advisors, which builds a sustainable business and helps us extend our lead and our competitive advantage. All-in-one secure portal. Really important to have security and data sharing capability in today's modern world, delivering a household view of wealth. We talked about our strategy and accelerating that. Increasing efficiencies for advisors and accounts, really key for us to help this industry lower the cost of advice and make advice more accessible. It not only helps our business grow and creates a market for our business, but it actually delivers on the promise that we make to Australians and a real challenge for all of us to deliver. HUB24 intends to keep leading in that space. strengthening our value prop, driving customer advocacy, which is growth and retention of existing clients that underpinning our current flow trajectory, but also aiming to deliver greater flows in the future and deliver revenue synergies in terms of software subscription revenue to myprosperity, and growth of the HUB24 Platform and other businesses as well. Thank you very much everyone for taking the time this morning at short notice and for allowing us to whiz through this acquisition for you. I'm happy and delighted to be able to open up for questions. I'm challenged a little bit. I'm in person, the team are in Sydney, but happy to open up for questions. Over to you guys in the audience. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Brendan Carrig with Macquarie. Please go ahead. Good morning, Andrew. I'm just maybe starting on the myprosperity revenue of AUD 4 million of that revenue. Is that all subscription, or is a component of that from the 16,000 premium subscriptions, and then the rest is from other sources? Thanks, Brendan. I'm gonna let Jason and Kit answer that, although I'm not sure we heard the question clearly, team. I think your question, Brendan, was the AUD 4 million all from subscriptions. You broke up at the beginning. Yes. Yes, it was on AUD 4 million of subscriptions. Yeah. The AUD 4 million that's in myprosperity at the moment is all subscription revenue, coming from the myprosperity business. Okay. Then just over the sort of medium term, can you just talk through the composition of the revenue synergies in a little bit more detail please, and sort of how they fit within those sort of FY 2025, FY 2026 EBITDA assumptions that you've provided to us. Yeah. Yeah. I'll kick off and then maybe Jason will jump in towards the end. The revenue synergies, in particular, the ones that we've given you at the front of the pack, the AUD 7.2 million and growing to AUD 21.2 million, that's all subscription revenue coming into HUB24. As you would've seen, there's AUD 4 million in myprosperity today. The AUD 7.2 million and the AUD 21.2 million includes that AUD 4 million, so there's clearly quite a significant growth in there in volumes and revenue. There is, when you look at the underlying EBITDA calc towards the back of the pack and the EPS calcs, there is a small amount of additional revenue that comes in particular in the sort of later years that is more related to new business, HUB24, broader client base using more of HUB24's products, et cetera. Just to give you a bit of a dimension on that, when you look at full year 2024, you know, 90% round about 90% is coming from subscriptions, and that probably reduces to, you know, 70%-80% in by the time you get to full year 2026. Okay. That's helpful. Then the last one for me, and I'll jump back in the queue. Just in terms of the integration, you called out the sort of AUD 400,000 of transaction related costs. Are there costs that are gonna be incurred on an ongoing basis to do with integrating the platform or myprosperity in with HUB? Or are they just gonna be included into BAU costs going forward? They'll be included in the BAU costs. They won't be material. There will be obviously costs that's associated with the myprosperity business and growing that business, and that will grow in line with the volumes and the revenue. From a implementation perspective, we said that there'll be some delivery of HUB24 portals. There'll be some development side on the myprosperity side, which is included in the underlying EBITDA and the EPS numbers, there'll also be some development on the HUB24 side. That's not gonna be overly material, and you'll see that in our BAU numbers. Okay, that's clear. I'll step back. Thanks. Thank you. Your next question comes from Kieren Chidgey with Jarden. Please go ahead. Morning, guys. I might have missed the numbers somewhere, but just wondering if you could detail the current cost base. I know obviously that will grow in line with some of the additional subscription revenue growth you just talked about. Broadly, where do you envisage that sitting for FY 2023? Yeah. We've given you the AUD 4 million of revenue in myprosperity, from a, underlying EBITDA perspective, it will probably be somewhere around the AUD 1 million-AUD 1.5 million loss in full year 2023. From that, you can derive that the expenses are going to be about AUD 5 million-AUD 5.5 million in full year 2023. Okay, thanks. Kitrina, the previous question from Brendan just around sort of the revenue synergy growth being mostly subscription related. Just wondering if you can sort of talk, I mean, it is implies obviously quite strong growth in the business, you know, almost doubling next year from a revenue point of view, from a subscription point of view. Just your confidence in terms of what needs to be done. You know, you only get the keys, I think, around 30th of June. You know, how confident are you in the ability to get those clients on board quite rapidly? Yeah. Thanks. Jason here. I'll take that question. We've obviously done DD on the business. We're really comfortable with where they're at today and the pipeline they have. When we add HUB's reach, if you like, across the accounting and financial planning space, and the ease in which this solution can be adopted because of its snug fit within those ecosystems, we're confident that it can roll out really quickly. That software revenue, as Kitrina said, they are obviously ambitious numbers, we really believe in the solution. It's all software revenue, what we've, software subscription revenue, what we've put in the pack there at the seven-point whatever it was and AUD 21.2 million. It's not just the portal subscription. We are also considering, and they have plans for new products. There might be products that HUB has that can be packaged up through myprosperity and delivered as increasing functionality and capability that would also get a software subscription fee. Okay. This is all fees that the end client, the customer is actually paying or is any of- No. No, the 440 is- being done by advisors or accountants? Yeah, the 440 practices that currently subscribe, they pay the fee on behalf of their clients. Those 16,000 odd premium subscriptions, that is a part of a solution that the accountant or the advisor is delivering to their client and they're absorbing the cost. Okay. All right. Okay, great. Thank you. Thank you. Your next question comes from Siraj Ahmed with Citi. Please go ahead. I reckon I have three things. Andrew and Jason, just thinking about, you know, you paid sort of 10x revenue, 5x next year for this business. You had HUB24 Connect for this, which is part of the single view of wealth previously. Just keen to understand, you know, why now and the multiple that you have paid for this business. Yeah. Hi, Siraj. It's back with me. Sure. Yeah, you're right. We've been on a journey of single view of wealth for some time. You know, our business is a big, busy business with a platform that's growing strongly. For us to get the capacity to continue to focus on that single view of wealth, delivering a portal to our clients, has been a challenge for us. Some of those dynamics I mentioned earlier about improving the digital engagement with clients, covering off the cybersecurity risks that exist, and the fact that myprosperity has 11 years of sunk development in this space, has learned a lot of lessons along that journey, in our view, is a clear market leader in the space. All of those dynamics led us to believe that speed to market here was really important to deliver this to our clients, the accountants and the advisers, in the timeframe that we think this market really is poised for growth and in a timeframe that we could capture that growth, we felt we had to act now. That underpinned our decision to when myprosperity really put their hand up, was having discussions with a number of parties. We circumvented a competitive process with moving to an acquisition conversation with them. Okay, thanks. Jason, is it- I- purely a- I was gonna add, Siraj, I'll add to that. Look, there's functionality and capability here that wasn't necessarily on our agenda in terms of single view of wealth that extends beyond that. I think as Jason said, look, there's a marketplace here where we as a business are growing market share, and we wanna continue to lead and extend our competitive advantage to underpin that growth and achieve further growth. The strategy, you know, so hey, there's an asset here that plays into the picture and the mix that's more enhanced than where we were. Speed to market is absolutely critical, and we think it's a great strategic asset to have actually secured. Perfect. That, that actually leads me to my second question, Andrew. Just, just in terms of market share and thinking about the core custody business, I mean, clearly the value prop of myprosperity is that it's integrated to all platforms, single view of wealth. How do you reckon this improves HUB24's custody offering? You know, because it seems like Kitrina was saying there's a bit of additional revenue. Just keen to understand how this can drive more flows into HUB24 Custody. I'll start. Maybe Jason will finish. The ability to actually deeply integrate with our portfolio of assets being beyond just HUB24, but Class and others, and actually include some of the functionality of the portal into the platform, i.e. digital consents and approvals to proceed and secure document sharing and secure reporting, I think it enables us to concentrate on what we're really good at. Not that we're not good at the other piece, but actually integrate some of the reporting and the HUB24 present functionality that we've got, which really is cutting-edge HUBconnect-based single view of wealth, implementing that into the myprosperity portal, which already caters for a single sign-on security and document sharing. It enables us to play to our strengths, and actually extend that utility such that it will reduce friction and reduce costs and create a much better client experience. In doing that with that integration, as opposed to just HUB being another platform in the ecosystem of myprosperity, it will allow us to achieve that goal of empowering better financial futures together and create advocacy and take-up. We expect that we'll actually, over time, Siraj, and our business case is based on this, pick up more flows from existing HUB24 advisers if we have a better proposition. That's our aim here in a competitive market that's not sitting still, to pick up more flows and create new adviser relationships because the end-to-end outcome is superior to what platforms are offering today. That, to an extent, has been our journey to date in terms of growing HUB24. It's about providing a better solution, and this is continuing that journey. Thanks, Andrew. Just the last one for Kitrina. Can I just clarify, Kitrina? The numbers you mentioned, AUD 7.2 million and the AUD 21 million, is that just for myprosperity? If it is, I mean, Jason sort of mentioned it's higher revenue per subscriber, but that employs pretty large subscriber growth. It seems larger than the addressable market. If you can just break it down to subscribers versus our average revenue per subscriber, that'd be quite helpful. The just to confirm, the AUD 7.2 million and the AUD 21.2 million, that is attached to the additional sort of the AUD 11.5 million potential additional earn-out there is purely subscription revenue and doesn't include the, you know, the additional upsides that Andrew was talking about there around additional flows, et cetera. You're absolutely right that from a volume perspective, I think we've called out, you know, the number of partners, roughly 440. At the moment, you're absolutely right that by the time you get to full year 2026, that's roughly 2x-3x that number in order to drive that revenue in full year 2026. Does that answer your question, Siraj? Yeah. Okay. I guess the question is, you're 16,000 advisors now. I think the addressable market you're pointing out to is 26,000, 10,000. Okay, that's actually firms plus advisors. Yeah, that's where I was coming from. Yeah. That's helpful. Yeah. Siraj, these numbers are hard to come by. There's no definitive measurement of the number of accounting practices in Australia. We derive that data from sources and some really old ABS data. The number of financial planning practices is much more clear. The estimate we have is about 15,000 practices in the market when you take out the duplicates for multidisciplinary. We believe myprosperity is sitting at about 3% of market share, so significant upside in an environment where there's pretty much a void. There are solutions delivered by platforms, by financial planning tools, even by accounting software to do a part of the puzzle. Having the whole solution with accounting data feeds, financial planning data feeds, and all the platform data and investment data coming through, that's a rare beast. myprosperity is sitting in that space. In our view, with the right investment capital, investment for growth, and the ability to leverage HUB24, we can get really significant growth out of within the software subscriptions and the number of practices using the technology. That's super helpful. Thank you. Thank you. Your next question comes from Scott Hudson with MST. Please go ahead. Yeah, good morning, everybody. Just two quick questions. Firstly, are there any other, I guess, relevant competitors in the client portal space that you potentially looked at or that we should be aware of? Yeah, look, as I, as I said before, the main competitors are a portal that hangs off the back of another solution, whether it's a financial planning software solution or it's a platform. There are not many pure focused portal solutions. You know, there are a couple around, but there was nothing that we saw that had, in our analysis, had a proven ability to convert the interest in the technology to a revenue stream. There's not many around that have anything like the revenue stream that myprosperity does and the possibility that we can convert that to a much wider audience. Okay, that's helpful. Is there any risk of revenue dyssynergies as a result of the transaction? We haven't identified any. You know, in our acquisition of other businesses where obviously there can be some sensitive points where we're dealing where that business had a competitor as a customer. You know, historically, we haven't lost that. We have an open architecture approach. We're quite happy for competitors to continue to use the software. There's not a material amount of revenue that we've identified in the, in the form in that we think is at risk. Lastly, does this help advisors lower the cost of delivering statements of advice? Not directly. It's not an Advice Solutions. It integrates into Advice Solutions. Part of myprosperity's capability is a digital fact find. Having all of that information for the household already, the ability to move that into a fact find and then integrate that into, for instance, Xplan. There's the ability to not have to double into that data. That creates efficiency. Once it's in Xplan, it doesn't really get involved in the advice process. Around the edge, I'd say at the moment. Yeah. One last one. I could say. Go on. Sorry, can I jump in? It certainly doesn't make the generation of the advice document faster, but the job of understanding the client's needs and getting the insights and having the information available and not having to scramble and wait and play table tennis to get the full set of information, I believe could greatly reduce the time taken to formulate advice before you generate the statement. Certainly, I think there's benefits there, definitely around the edges, but, you know, that engagement will streamline that significantly, in my view. Okay. Just the last one I had, is there a direct to consumer potential out of myprosperity product? It's not that we're targeting. Yeah. Please go, Jason. Yeah. Andrew, as I'd say, same as me, which is we're not targeting that. We see it as absolutely an intermediated offer. It's been designed, its clients are financial professionals and helping them service their clients. I think it might enable those financial professionals to do different types of advice, so more scaled advice approaches. It might mean that they can do digital advice approaches. I think it will enable that for financial professionals, but we don't have any plans to take it direct. Thank you very much. Thank you. Your next question comes from April Lowis with Barrenjoey. Please go ahead. Hi, thanks for taking my call. Could you please elaborate on the cross-sell benefit, in a bit more detail and where, the synergies will come from there? How much client overlap there is between HUB and Class and myprosperity? I'll take that one. Yes, there is some overlap. We haven't done really deep analysis on that. I think our assessment was of the 450 odd current practices, less than 50 probably currently use HUB24. So there wasn't a wide distribution of HUB within that network. Probably reflects our market share. You know, we've got 5% of the market, so you would expect our market share within that group to be something along those lines. On the cross sell, you know, it's clear to us that if we can deliver all of, as I mentioned before, all the HUB Group services, offers, products within the single portal, and we make that really easy, we're confident that it will improve the incidence of advisors and accountants taking up the next offer. If we can just make it really easy, things like corporate compliance, the Class portfolio with its tax reporting capability, I think that would be a great add-on to the myprosperity toolkit that would be attractive to advisors and accountants and just get greater adoption. It'll continue to be an open architecture model. There'll be other solutions, industry solutions available within it. We do believe that with a deep integration, removing the friction around how these things work, we can get greater adoption of our existing suite of products and services. Thanks. Just one more quick question. Have you looked at how much of the AUD 135 billion of household assets is on the HUB platform already, or do you think that would be about that 5% mark? The AUD 135 billion includes the household's assets. Our 5% is of platform assets. No, we haven't done that look through, if you like. We're assuming of the platform assets that are sitting on the platform will be around, you know, 5%, maybe 10% of that total. That's actually data we shouldn't and can't look through for legal reasons at this point anyway. Great. Thank you. Yep. Thank you. Your next question comes from James Cordukes with Credit Suisse. Please go ahead. Morning, guys. Just a few questions from me. you know, big growth outlook for myprosperity. Can you talk about what CapEx might be required from here? When you look at the underlying EBITDA and the EPS that we've given you, James, it's all factored into there. At the moment. When you look at the AUD 4 million in full year 2023, and I think I gave you the AUD 1 million - AUD 1.5 million loss in full year 2023, at the moment, they expense all of their development work, so they don't capitalize it. Obviously, when they come into the HUB24 Group, they'll adopt the same, you know, capitalization policy that we have. At the moment, the underlying EBITDA that we've given you includes all of that. We haven't changed it from a CapEx perspective, just so that you've got it on a like-for-like basis compared to how they do it today. What I'm saying there is you should see it in the underlying EBITDA and the EPS numbers. Yeah. Perfect. Thank you. Just a point of clarification, I mean, the EBIT impact you presented the slide pack for FY 2026 is AUD 3 million-AUD 5 million. Does that include the revenue synergies for additional platform flows, or is that just purely myprosperity earnings? Yeah. The AUD 3 million-AUD 5 million at the back of the pack for full year 2026 does include some synergies for the additional flows. I think I mentioned a little bit earlier on the call, when you look at full year 2024 and the revenue synergies coming through, it's, you know, 90% or just over 90% comes from subscriptions. You've got less than 10% is coming from, you know, what might be described as the cross-sell, et cetera. By the time you get to full year 2026, it's sort of like 70%, you know, 80%/20%. 70%-80% still coming from subscriptions and the rest coming from additional flows or new business. Yeah. Like, just maybe building on that point. Yeah, just maybe building on that point. I mean, if I take that 20%-30% of additional revenue that's not included in 2021, that's another, you know, call it AUD 6 million-AUD 8 million of revenue for platform. If I was to put an EBIT DA margin, it kind of says myprosperity is getting to breakeven without the additional platform flows. Is that kind of how we should think about it? Is it this is really all about getting additional platform flows and myprosperity's breakeven? myprosperity certainly is breaking even and paying for itself. The revenue and the expenses are obviously significant growth, myprosperity will absolutely be profitable. I think we've called that out when we say that it starts its EPS accreted by the time you get to full year 2027. Yeah, it takes a couple of years for the revenue expenses. You know, it is a start-up company, it'll take a couple of years for it to become breakeven and then start to have more significant contribution. Absolutely, as you get past full year 2026, myprosperity will have a substantial contribution into the group, is our expectation. That, and that's, you know, the strategic rationale for doing it on top of the advocacy for the platform. Okay. Thank you very much. Thank you. Your next question comes from Olivia Callan with E&P Financial. Please go ahead. Hi guys. Thanks for taking my questions. Conscious of time. Just on the households versus premium subscribers, what's the kind of explanation there? How do you have 60,000 households on the platform, only 16,000 premium subscribers? Are there non-premium subscribers? What's the average revenue model? Is it roughly AUD 4 million divided by 16,000 premium subscribers? I'll take the question. Yeah. Yeah. The average revenue, as I said before, it's the practices that pay the revenue. You can work out the average- Yeah. revenue per practice based on that 440 number. That's been pretty consistent with myprosperity's experience. The way that works, advisers and accountants, when they set it up, invite their clients to log in. There's a certain feature set available as standard package, but then there's an improved or an increased set in the premium package. A lot of that is around the access to data that is updating all the time. Data feeds for banking, stockbroking platforms, et cetera, is really the main trigger for the client to get the improved feed. As I mentioned before, historically, the industry struggled with data that it's willing to give that kind of access to their clients. Our view is there's a great opportunity to increase the number of clients on the premium service, the Pro clients, if we can broaden out the number of data sets that are available and make it that the advisers and accountants are very trusting of those data sources. Class, with its great capability around data, the 250 data feeds, the fact that that is an audited data set, we think that will be something that advisers and accountants are confident delivering that to clients and therefore paying that additional fee because it's a great value to the client, and it makes the adviser and accountant look good. We think there's real upside there. The base subscription fee, though, is that based on the number of estimated users or is it, you know, like, does it scale with firm size? Yeah. Like, what's the key driver, I suppose, of revenue? It sounds like there's a opportunity to kind of, you know, deepen, or increase the revenue per firm by obviously on selling the premium subscriptions. You know, is the key kind of revenue driver here, I suppose, number of accounting and financial advisory firms that have subscribers, not so much the number of. Yeah, you can see. -households. Sorry, mate. You can see on the myprosperity website the packages that they offer and pricing. Okay. You'll see that there's sort of base fees for a practice level adoption, Or within that, they get some free Pro accounts, depending on the subscription level. They can pay for additional Pro accounts, over and above that. You can see on the website the fee arrangements, but it starts at the practice level. As there's increasing adoption through the Pro, licenses for their clients, they pay add-ons. Yeah. Okay. Sorry, I just wanted to clarify something that Kitrina said. She mentioned the AUD 3 million-AUD 5 million of EBITDA. That's under the existing accounting treatment, not the HUB accounting treatment. Is that right? Yeah. That is, taking into consideration all of the expenses that are needed, so it's not applying a capitalization ratio. Yeah. As and when or as that changes, at the moment, we haven't done a look through to say, Okay, how much in the, you know, next two years will be development? As and when that changes and when we do the half-year reporting, we'll provide you guys with enough information to understand any movements there. Okay. You'd expect post your application of your capitalization schedule, the EBITDA will be higher. Obviously, there'll be additional depreciation and amortization that's falling onto the P&L. That's correct. Yeah. Yeah. Some small changes to the underlying EBITDA impact. On the EPS, there might be a little bit of timing, but obviously that impact includes everything, so it would just be a small timing difference on the EPS. Yep. Okay. No, I appreciate that. Thanks. Thank you. Your next question comes from Dylan Jones with Ord Minnett. Please go ahead. Morning, all. Thanks for taking my question. Just a really quick follow-up. I might have missed a bit. Have you outlined the total number of subscribers of premium plus your base subscription? Sorry, Dylan, what was the question? Sorry, I'll try again. I might have missed a bit earlier. You've got the premium subscribers, 16,000. Did you outline the total number of subscribers you have, so the premium plus your sort of obviously your base subscription members? What's the total number? Yeah. 60,000 households. 440 practices have invited 60,000 households to log in. A quarter of those, they’ve given the 16,000, they’ve given the premium access to. Right. Great. Does that? Thank you. That helps. Yeah, that makes sense. Perfect. Thank you for that. Thank you. Your next question comes from Bob Chen with JP Morgan. Please go ahead. Morning, guys. Just a couple of questions from me. Just the first one, just with the guidance you've provided. I think on slide three, you've got underlying EBITDA positive for the transaction FY 2025. On slide 11, it's got FY 2025 as neutral. What's the difference there? Sorry, say that again, Bob? Just on slide three, you've got EBITDA positive for the transaction, and then on slide 11, it's showing FY 2025 EBITDA impact as neutral. I'm just trying to understand where the additional costs are coming from. The positive in full year 2025 on slide three, yeah, no, that's a good pickup. It's marginally possible in positive in full year 2025. You're right, on the back page, we've sort of said neutral because it's quite small, that underlying EBITDA positive in full year 2025. From 2026 onwards, it becomes a lot larger. Sorry about that, Bob. That's just a nuance in the pack. Okay. -consistency. Okay, no worries. Just thinking about myprosperity, I can see that a lot of other platforms are currently sort of connected to it as well. Now that's, sort of, in the HUB's stable, I mean, how do you think that impacts other platforms that are thinking about their integrations with myprosperity? Yeah. I don't think it does. We, you know, we all share our data platforms with downstream software providers, whether they're financial planning tools, CRMs, portals like myprosperity, software like Class and BGL. You know, that's an industry norm, and largely we're guided by our clients, the advisors and accountants who say, I want our data to end up in this tech stack. We don't expect any change there. Okay, great. Thanks, guys. It is driven by the demand and the utility of it for the financial advisors and the accountants. You know, if you want to provide a solution for them, they're the ones who are driving the take-up of solution and there's an implication that the platform should be playing as we do currently across the industry. Thanks, Andrew. Thank you. That's all the time we have for our question and answer session. I'll now hand back to Mr. Alcock for closing remarks. Thank you, everyone. I appreciate it was a quick short notice meeting this morning. We'll obviously have time to spend in the next coming days and weeks if you've got further questions. As I said earlier, we're really excited about the opportunity here that there's a strategic asset we've been able to secure that underpins our current growth and strengthens the creation of future opportunities. Yes, we've got a business case here. We've presented some numbers, but as always, we are looking at how do we grow this business and the HUB24 Group as reliably and stably and as rapidly as we can, given the dynamic market environment we're in. Really excited to be able to have an acquisition that aligns with our strategy, that delivers on our purpose, and helps advisors and clients achieve their end goals. Certainly committed to working very rapidly on bringing this to market in different ways to maximize the opportunity for our shareholders and for our customers. Thank you for your time this morning. Look forward to seeing you around the traps and or if you have any other questions, please feel free to reach out in the usual way. Thank you very much. That does conclude our conference for today. Thank Thank you for participating. You may now disconnect.