3 | netwealth Annual Report 2024 For the year ended 30 June 2024
Appendix 4E _______________________________________ 4
Chairman’s Letter __________________________________ 6
Joint Managing Director’s Letter ____ Error! Bookmark not
defined.
Corporate highlights _______________________________ 10
Review of Operations _____ Error! Bookmark not defined.
Financial operating performance____ Error! Bookmark not
defined.
Board of Directors ________ Error! Bookmark not defined.
Directors’ Report _________________________________ 36
Remuneration Report (Audited) ______________________ 41
Auditor’s Independence Declaration ________________ 59
Consolidated Statement of Profit or Loss and Other
Comprehensive Income ___________________________ 60
Consolidated Statement of Financial Position ________ 60
Consolidated Statement of Changes in Equity ________ 62
Consolidated Statement of Cash Flows ______________ 63
Notes to the Financial Statements __________________ 64
1
General Information _________________________ 64
2
Significant Accounting Policies _______________ 64
3
Segment Information ________________________ 68
4
Revenue ___________________________________ 68
5
Expenses __________________________________ 69
6
Income Taxes________________________________ 71
7
Key Management Personnel Compensation _____ 74
8
Dividends ___________________________________ 74
9
Earnings Per Share ___________________________ 75
10
Trade and Other Receivables __________________ 75
11
Other Current Assets _________________________ 77
12
Financial Assets _____________________________ 78
13
Property and Equipment _____________________ 84
14
Intangible Assets ___________________________ 84
15
Trade and Other Payables _____________________ 87
16
Provisions ___________________________________ 87
17
Issued Capital ______________________________ 89
18
Reserves ___________________________________ 90
19
Controlled Entities ___________________________ 91
20
Divestments and discontinued operations ___ Error!
Bookmark not defined.
21
Financial Instruments ________________________ 91
22
Share Based Payments ______________________ 102
23
Related Party Transactions ___________________ 106
24
Cash Flow Note ____________________________ 108
25
Capital and Leasing Commitments Error! Bookmark
not defined.
26
Parent Entity Disclosures ____________________ 109
27
Auditor’s Remuneration _____________________ 113
28
Events Occurring after Reporting Date _________ 113
Directors’ Declaration _____________________________ 115
Independent Auditor’s Review Report _______________ 117
Shareholder Information __________________________ 120
Contents
4 | netwealth Annual Report 2024 For the year ended 30 June 2024
Appendix 4E
Report for the year ended 30 June 2024.
Netwealth Group Limited
ABN: 84 620 145 404
1. Details of the reporting period
Report for the year ended 30 June 2024 (FY2024).
Previous corresponding period year ended 30 June 2023 (FY2023).
2. Results for announcement to the market
FY2024
$’000
FY2023
$’000
Increase/
(Decrease)
Var %
Revenue from ordinary activities
249,526
211,490
38,036
18.0%
Profit from ordinary activities before tax attributable
to members
120,449
97,014
23,435
24.2%
Net profit for the period attributable to members
83,370
67,153
16,217
24.1%
Refer to the attached Annual Report (Directors’ report – Review of operations section), for further commentary on
the full year results.
3. Net tangible assets per ordinary security
FY2024
FY2023
Net tangible assets per ordinary security
55.3 cents
47.8 cents
Net tangible assets (NTA) used in the calculation of NTA per ordinary security are inclusive of both right of use
assets and lease liabilities.
5 | netwealth Annual Report 2024 For the year ended 30 June 2024
4. Dividends information
Amount
per Share
(cents)
Franked
Amount per
Share (cents)
% Franked
Tax rate for
Franking
Credit
Final 2023 dividend per share (paid 21 Sep 2023)
13.0
5.57
100%
30%
Interim 2024 dividend per share (paid 28 Mar 2024)
14.0
6.00
100%
30%
Final 2024 dividend per share (to be paid 26 Sep 2024)
14.0
6.00
100%
30%
Final 2024 dividend dates
Ex-dividend date
26 August 2024
Record date
27 August 2024
Payment date
26 September 2024
There is no dividend reinvestment plan.
5. Control gained/loss over entities
Not applicable.
6. Details of associates and joint venture entities
Netwealth owns 25% of the equity of Xeppo Pty Ltd (Xeppo), a specialist fintech data solution provider.
Xeppo specialises in connecting, matching and reconciling data from a wide range of sources and providing
technology solutions to support the wealth management, accounting and mortgage industries.
7. Compliance statement
This report is based on the consolidated financial statements for the year ended 30 June 2024 which have been
audited by Netwealth Group Limited’s auditors, Deloitte Touche Tohmatsu, with the audit report attached.
Matt Heine
CEO & Managing Director
13 August 2024
6 | netwealth Annual Report 2024 For the year ended 30 June 2024
About Netwealth
Netwealth Group Limited (Netwealth, “NWL” or the Group) is a financial services company listed on the Australian
Securities Exchange (ASX: NWL). Netwealth was created with an entrepreneurial spirit to challenge the conventions
of Australia’s financial services.
We are a technology company, a superannuation fund trustee and a wealth administration business. Above all we
exist to enable people to see wealth differently and discover a brighter future.
Founded in 1999, Netwealth is one of the fastest growing wealth management businesses in Australia.
Our financial products are:
•
superannuation including accumulation and retirement income products;
•
investor directed portfolio services for self-managed superannuation and non-superannuation investments;
•
managed accounts;
•
managed funds;
•
self-managed superannuation funds administration; and
•
non-custodial administration and reporting services.
Netwealth’s digital platform supports how our financial products are delivered to market. Financial intermediaries
and clients can invest and manage a wide array of domestic and international products through the platform.
The platform is built, developed and maintained by our technology team. It is continuously enhanced using
feedback from financial intermediaries, clients and other users and receives wide industry recognition as having
market-leading functionality.
Supporting our financial products and technology platform is a significant investment in our people and resources
to administer support, execute our custodial services and manage risk and governance.
7 | netwealth Annual Report 2024 For the year ended 30 June 2024
Letter from the Chair and CEO & Managing Director
On behalf of the Board of Directors (the Board) of Netwealth Group Limited (Netwealth), we are pleased
to present the Annual Report for the year ended 30 June 2024.
Throughout FY2024, global inflation steadily declined and equity market indexes rebounded from their
lows in the first quarter and bond rates moderated. The Australian wealth management platform market
benefitted from these trends and is estimated to have increased by 11.5% in 12 months to March 2024,
growing from $982 billion to $1.095 trillion1.
Against
this
backdrop,
Netwealth’s
Funds Under Administration (FUA) grew
by 25.2% or $17.7 billion to reach an all-
time high of $88.0 billion as at 30 June
2024. We achieved record annual FUA
gross
inflows
of
$22.0
billion
and
pleasingly, FUA net inflows of $11.2 billion.
FY2024 was another strong year for
Netwealth across many financial and
operating metrics including increased
market share of 0.9% to 7.7%1 as at
March 2024.
Total income increased by 18.9% for FY2024 to $255.2
million predominantly driven by the growth in FUA
from existing clients and new clients.
Our EBITDA margin increased by 1.9% to 48.8% due to
strong income growth and moderate expense growth
of 14.5%. This resulted in an impressive 23.8%
increase of EBITDA to $124.7 million. Our continued
high cash conversion ratio resulted in a 19.8%
increase in Operating net cashflow (before tax) to
$127.3 million.
1 Source: Plan for Life, Analysis of Wrap, Platform and Master Trust as at March 2024
Timothy Antonie
Independent
Non-Executive
Chair
Matthew Heine
CEO & Managing
Director (CEO)
8 | netwealth Annual Report 2024 For the year ended 30 June 2024
Netwealth’s record FY2024 net profit after tax of
$83.4 million represented a 24.1% increase from
the previous year's result. Earnings per share
increased by 24.4% to 34.2 cents per share. Once
again there were no significant or abnormal items
impacting our reported earnings.
The Board today declared a final fully franked
dividend of 14.0 cents per share resulting in total
fully franked dividends of 28.0 cents per share for
FY2024, a 16.7% increase from the previous year.
Netwealth won “Advised Product of the Year” at The Chant West Award event for 2024. This award recognises the
platform that has a wider range of investment choices, features and functionalities and have invested in dedicated
systems to help advisers manage their client base and access their client details. Among a number of 1st place
rankings by Investment Trends during the year, Netwealth was the leader in the High-Net-Worth adviser segment for
platforms.
Netwealth continued to expand and strengthen many new and important licensee and adviser relationships
throughout the year with client accounts increasing by over 12%. Our new business pipeline including conversion
rates remains strong across all market segments. We enter FY2025 well positioned to continue to increase market
share.
Our consistent delivery of improved annual financial performance is a testament to the exceptional talent and
dedication of our team of 600+ here at Netwealth. Our Executive Team, which was substantially bolstered in 2023,
continued its proven track record of driving growth and innovation. Their deep industry knowledge, combined with
their commitment to excellence and strong leadership positions us well to maintain our growth trajectory.
Importantly, our employee survey reflects strong and improving satisfaction levels, indicating a positive experience
for our people. We have set measurable gender diversity targets of 40/40/20 for the Board and executive team by
FY2026. Pleasingly we met our Board target in FY2024.
As Netwealth continues to grow, we will continue to strategically invest in our platform and service offerings to
maintain our leading offering for the benefit of our stakeholders. This includes our whole of wealth strategy, trading
capability, customised reporting, system migration and security, and generative artificial intelligence solutions.
Over the last 12 months, our People and Corporate Sustainability Committee has again made significant progress on
key areas important to our stakeholders. We encourage you to read the Corporate Sustainability Report on our
website https://www.netwealth.com.au/web/about-netwealth/corporate-sustainability/ and the summary on pages
22 to 23 of this Annual Report.
Our investment in cybersecurity remains a high priority, and we continue to invest in our people and software
capability to mitigate potential risks and raise awareness with our stakeholders. These threats can lead to wide-
ranging consequences and we are proud to note that Netwealth has received reasonable assurance from our auditors
on Service Organisation Controls (SOC 2).
9 | netwealth Annual Report 2024 For the year ended 30 June 2024
As a participant in the highly regulated financial services industry, and given the significant trust placed in us by our
clients and other stakeholders, sound governance is paramount to our sustained success and growth. We continue
to actively manage and enhance our systems, risk management framework and corporate governance practices to
meet regulatory changes and exceed the expectations of our stakeholders. For further information please refer to
our Corporate Governance Statement on our website https://www.netwealth.com.au/web/about-
netwealth/shareholders/ and a summary on pages 24 to 28 of this Annual Report.
To further strengthen our governance, we are pleased to welcome Sarah Brennan as a new Director. Sarah brings
extensive industry experience and complementary skills to the company, having served as a senior executive and
non-executive in the financial services industry. Her appointment underscores our commitment to maintaining high
standards of governance and leveraging diverse expertise to drive our strategic objectives.
As previously announced, our founder Michael Heine made the transition from Executive Director to a Non-
Executive Director at the end of FY2024. On behalf of the Board, the Executive and all our people, we thank Michael
for his visionary leadership and unwavering dedication to Netwealth.
Netwealth continues to retain sufficient levels of capital to meet our regulatory requirements. Our strong balance
sheet and disciplined risk management strategies position us well to respond to both risks and opportunities.
We extend our gratitude to our fellow Board members for their dedication, insightful advice and exemplary
governance.
Finally, on behalf of the Board, we thank our valued clients, our people and our shareholders for your ongoing
support. We look forward to working with you in FY2025 and to another successful year.
Yours sincerely
Timothy Antonie
Matt Heine
Chair
CEO & Managing Director
13 August 2024
13 August 2024
10 | netwealth Annual Report 2024 For the year ended 30 June 2024
Corporate Highlights
Highlights for the year were (comparative period FY2023):
1
Directors consider this non-IFRS information to be a key metric in evaluating the operating performance of the Group. Reconciliations to IFRS
information are on pages 14-15.
2
Plan For Life Media Release, Analysis of Wraps, Platforms and Master Trusts as at 31 March 2024
3
Investment Trends, December 2023 Adviser Technology Needs Report
EPS – Earnings per share; CPS – Cents per share
11 | netwealth Annual Report 2024 For the year ended 30 June 2024
Operating and Financial Review
Operational performance highlights
Set out in the below table is a summary of key platform statistics for FY2024 and FY2023.
Consolidated Group for Year Ended
30 June 2024
30 June 2023
Variance
Variance %
FUA – Custodial - End of Period (EOP) ($ million)
87,555
70,146
17,409
24.8%
FUA – Non-custodial (EOP) ($ million)
448
126
322
255.6%
Total FUA
88,003
70,272
17,731
25.2%
FUA inflows – Custodial ($ million)
21,648
18,609
3,039
16.3%
FUA outflows – Custodial ($ million)
(10,710)
(8,844)
(1,866)
(21.1%)
FUA net inflows – Custodial ($ million)
10,938
9,765
1,173
12.0%
FUA net inflows – Non-custodial ($ million)
284
117
167
141.9%
FUA Market Movement – Custodial ($ million)
6,470
4,730
1,740
36.8%
FUA Market Movement – Non-custodial ($
million)
38
9
29
322.2%
Platform revenue/average FUA (bps) 1
32.0 bps
33.6 bps
(1.6 bps)
(4.8%)
FUM (EOP*) ($ million)
20,485
15,960
4,525
28.4%
FUM net inflows ($ million)
3,125
1,959
1,166
59.5%
Managed Account (EOP) ($ million)
17,587
13,592
3,995
29.4%
Managed Account net inflows ($ million)
2,744
1,590
1,154
72.6%
Managed Funds (EOP) ($ million)
2,898
2,368
530
22.4%
Managed Funds net inflows ($ million)
382
369
13
3.5%
Cash transaction account as % of Custodial
FUA (EOP)
6.0%
6.4%
(0.4%)
-
Accounts (EOP*) (number)
143,251
127,507
15,744
12.3%
Financial intermediaries (EOP) (number)
3,759
3,512
247
7.0%
Average FUA/average number of Accounts ($
thousands)
583
521
62
11.9%
Platform revenue/average number of accounts
($)1
1,864
1,747
117
6.7%
1During the year, the Group has revised the classification and disclosure of cost of capital recovery. $5.9 million cost of capital recovery has been
presented as Platform revenue in the current year. Comparative figure of $4.5 million has been reclassified from Other income to Platform revenue, to
be consistent with current period disclosure. Refer to Note 2 Material Accounting Policies.
* EOP=End of Period
12 | netwealth Annual Report 2024 For the year ended 30 June 2024
Netwealth achieved record Funds Under Administration (FUA) at 30 June 2024 of $88.0 billion, an increase of $17.7
billion (25.2% increase) for FY2024. The Group posted record annual FUA gross Inflows of $22.0 billion for FY2024.
FUA net inflows of $11.2 billion for FY2024, was an increase of $1.3 billion in FUA net inflows on FY2023, due to an
elevated level of inflows across all client segments.
Non-custodial FUA net inflows of $448 million, was an increase of $322 million (255.6% increase) for FY2024.
Funds Under Management (FUM) at 30 June 2024 were $20.5 billion, an increase of $4.5 billion (28.4%) from FY2023
including positive market movement of $1.4 billion.
Managed Account balance at 30 June 2024 was $17.6 billion, an increase of $4.0 billion (29.4%) for FY2024. The
increase for FY2024 included Managed Account net inflows of $2.7 billion and positive market movement of $1.3
billion.
Total client accounts increased by 15,744 or 12.3% to 143,251 at 30 June 2024. Financial Intermediaries using the
platform increased by 247 or 7.0% to 3,759 at 30 June 2024.
Platform revenue per account increased by $117 or 6.7% to $1,864 in FY2024. Platform revenue/average FUA of 32.0
bps for FY2024, a decrease of 1.6 bps or 4.8%. Whilst the increase in FUA from positive market movements
contributes to higher admin fee revenue, the impact is significantly diluted due to the structure of tiered
administration fees, fee caps and most ancillaries. The average cash transaction account balance as a percentage
of custodial FUA in FY2024 was lower at 6.1% (FY2023: 7.1%).
The platform revenue over average FUA was 31.1 bps for 2HFY24, a decrease from 33.0 bps in 1HFY24.
Average account size increased to $583,000 for FY2024, up from $521,000 in FY2023.
13 | netwealth Annual Report 2024 For the year ended 30 June 2024
Review of FY2024 financial performance
Netwealth achieved total income of $255.2 million for FY2024, a 18.9% growth from prior year. Platform revenues
increased by $38.0 million (18.0%) to $249.5 million for FY2024. Strong FUA growth from both new and existing
clients combined with higher margins on cash during the year led to the higher revenues.
Total operating expenses were $130.6 million for FY2024, an increase of $16.6 million or 14.5% compared to prior year.
Employee benefits expenses, excluding share-based payment expenses, increased by $12.4 million to $90.3 million,
accounting for 69.1% of total operating expenses. The headcount as at year end was 613, an increase of 60 roles in
FY2024.
Technology and communication expenses (non-employees) increased by $2.1 million or 15.3% to improve the
scalability and security of systems, upgrading our technology infrastructure and implementing the transition to
cloud-based systems.
Share based payment expense increased by $0.6 million to $3.0 million for FY2024.
The Group delivered EBITDA of $124.7 million for FY2024, an increase of $23.9 million (23.8%) versus FY2023 with an
EBITDA margin of 48.8%.
Record net profit after tax (NPAT) of $83.4 million was achieved, an increase of $16.2 million or 24.1% over FY2023
with a NPAT margin of 32.7%.
Earnings per share (EPS) was 34.2 cents in FY2024, an increase of 24.4% over FY2023.
14 | netwealth Annual Report 2024 For the year ended 30 June 2024
Results of profit or loss for FY2024
Set out in the table below is the consolidated statement of profit or loss and other comprehensive income for
FY2024 presented in full to reflect other financial metrics.
Consolidated Group for Year Ended
30 June 2024
$’000
30 June 2023
$’000
Variance
$’000
Variance
%
Income
Platform revenue
249,526
211,490
38,036
18.0%
Other income
5,722
3,259
2,463
75.6%
Total income
255,248
214,749
40,499
18.9%
Expenses
Employee benefits expenses
(90,268)
(77,886)
12,382
15.9%
Share-based payment expense
(3,002)
(2,381)
621
26.1%
Technology and communication
(15,791)
(13,689)
2,102
15.4%
Professional and insurance
(6,542)
(6,186)
356
5.8%
Brokerage, investment & custody
(4,565)
(4,567)
(2)
0.0%
Advertising and marketing
(3,068)
(2,835)
233
8.2%
Other costs and expenses
(7,334)
(6,461)
873
13.5%
Total operating expenses
(130,570)
(114,005)
16,565
14.5%
EBITDA
124,678
100,744
23,934
23.8%
EBITDA margin
48.8%
46.9%
1.9%
-
Interest on leases
(573)
(451)
122
27.1%
Depreciation and amortisation
(3,656)
(3,279)
377
11.5%
NPBT
120,449
97,014
23,435
24.2%
Income tax expense
(37,079)
(29,861)
7,218
24.2%
NPAT
83,370
67,153
16,217
24.1%
NPAT margin
32.7%
31.3%
1.4%
-
EPS (cents per share)
34.2
27.5
6.7
24.4%
15 | netwealth Annual Report 2024 For the year ended 30 June 2024
Cash flow statement (pre-tax) FY2024
The table below sets out the summary of the consolidated statement of cash flows.
Consolidated Group for Period Ended
30 June 2024
$’000
30 June 2023
$’000
Variance
$’000
Variance
%
Receipts from customers
258,061
223,412
34,649
15.5%
Payment to suppliers and employees
(136,372)
(120,302)
(16,070)
(13.4%)
Dividends and interest received
5,624
3,152
2,472
78.4%
Operating net cash flows before tax
127,313
106,262
21,051
19.8%
Investing activities
(5,107)
(4,990)
(117)
(2.4%)
Payments and Interest on lease
(2,151)
(1,952)
(199)
(10.2%)
Free cash flows before tax
120,055
99,320
20,735
20.9%
Free cash flows before tax is a non-International Financial Reporting Standard (IFRS) measure and should not be
considered in isolation from, or as a substitute for financial information prepared in accordance with IFRS.
Management considers free cash flow to be a performance measure that provides useful information to
management and investors about the amount of cash generated by the Group (before tax) available for strategic
opportunities, dividends and for strengthening the Group’s financial position.
The table above provides the reconciliation to IFRS financial information in this financial report.
16 | netwealth Annual Report 2024 For the year ended 30 June 2024
A market leading Australian platform
Netwealth continues to be recognised as a market leader in the platform segment for its product offering, service,
innovation and growth. During the year, Netwealth was:
•
Rated No.1 for “Best Product offering” and “Best Transaction Tools” in the latest Investment Trends Platform
Competitive Analysis and Benchmarking Report December 2023.
•
Netwealth won “Advised Product of the Year” at The Chant West Award event for 2024. This award recognises
the platform that has a wider range of investment choices, features and functionalities and has invested in
dedicated systems to help advisers manage their client base and access their client details.
•
Netwealth’s market share increased by 0.9% for the 12 months to 31 March 2024 to 7.7%, according to the latest
Plan for Life quarterly platform market update.
17 | netwealth Annual Report 2024 For the year ended 30 June 2024
Enhancements to our whole of wealth platform
Netwealth continues to extend our competitive advantage, building on our leading capabilities and addressing
emerging opportunities through a focus on data and technology that integrates with the software that advisers use
now and leads the industry into the future. During the year Netwealth delivered the following from its strategic
roadmap:
Wealth Solutions:
•
Relaunched our Accelerator Core product, competitively priced with access to over 60 investments, comprising
both managed funds and managed accounts, across a range of asset classes, risk profiles, and investment
strategies, increasing Accelerator Core net inflows by 179% for FY2024, compared to FY2023.
•
Menu expansion - Expanded our suite of Managed Account models with the addition of 15 retail models and 97
private label models. At 30 June 2024 the Netwealth platform had 108 retail models (25 model suites) and 568
private label models (102 model suites).
•
Introduced fixed term annuities and a “small parcel” bond service which improves accessibility to bonds for
investors starting from $50,000 compared to the average size of $500,000. Expanded the range of available term
deposits.
•
The non-custodial service continues to be enhanced and has attracted considerable support from the industry
with 480+ new non-custodial assets now being administered and reported on.
WealthTech:
•
Netwealth launched straight through processing and execution of international equities on 16 exchanges with
ability to create buy/sell and limit orders. Netwealth also added an inhouse Trading Desk, enhancing the
platform’s trading capability and bringing the execution of ASX trades inhouse for large and complex trades.
•
Launched Netwealth’s Investment Manager Portal, a dedicated portal for Fund Managers to manage assets
available on the platform and self-serve report.
•
Expanded Netwealth’s Developer Portal adding new Public Application Programming Interfaces (APIs) making it
easier for developers to build software solutions for advice firms. There are currently over 20 public API end
points available.
•
Mobile app enhancements during the year include clients receiving notification and approving tasks via mobile
and portfolio views to group accounts by financial institution.
Insights & Analytics:
•
Recently launched new features that enhance client reporting tools that enable advisers to deliver tailored
reports at scale.
•
During the year we hosted our inaugural Accelerate Summit in September and published several industry white
papers based on our proprietary research, ‘The Advisable Australian’ and “AdviceTech research”. These
initiatives provided a wide array of industry insights and facilitated networking events tailored specifically for
Australian advisers and investors.
18 | netwealth Annual Report 2024 For the year ended 30 June 2024
FY2025 Commentary and Outlook
We have expanded and strengthened our new adviser and licensee relationships, plus our new business pipeline
including conversion rates, remain very strong across all segments. Several significant new client wins have begun
transitioning flows onto the platform in early FY2025 with $1.2 billion of FUA net inflows successfully transitioned in
July. We are confident in our outlook and future growth opportunities which we believe are very significant.
We plan to continue our significant investment in our people, product, security and technology capabilities to
ensure we capture the substantial number of existing and emerging opportunities in the market which will drive our
ongoing and sustainable profit growth. We expect this investment will result in a small percentage increase in the
rate of expense growth in FY2025 compared to FY2024.
We continue to broaden the functionality of the platform and progressively reduce our reliance on 3rd party systems
for parts of the core platform functionality.
Our advice enablement strategy multiplies the efforts of our advisers, allowing them to serve more clients as
demand continues to outstrip supply. Netwealth will provide greater practice management, business management
tools and access to data for advisers and licensees.
Netwealth recognises and innovatively embraces the significant opportunities of emerging technologies including
generative Artificial Intelligence (AI) and machine learning to improve efficiency, productivity and reporting, and to
support advisers and clients in new ways.
Following on from the success of the Netwealth Hackathon 2024: Humans, Machines and the Rise of AI, we have
created a new cross-functional team aimed at automating high-volume business processes and improving platform
functionality for our clients and advisers.
Acquisition of Xeppo is a key component of our strategy which places data at the centre of everything we do. Xeppo
is at the forefront of data management and analytics. Further integration of Xeppo capabilities to Netwealth
accelerates our data strategy, aimed at delivering value to our clients through enhanced data and AI driven
capabilities.
19 | netwealth Annual Report 2024 For the year ended 30 June 2024
Risk Management of Material Business Risks
Netwealth has defined six material risk categories (Level 1) that impact our business: Governance Risk; Strategic
Risk; Entity Risk; Culture, Conduct and People Risk; Operational Risk; and Product Risk. For each Level 1 Risk
category, the Board establishes a risk appetite and key risk indicators for managing the risk. Below is an explanation
of the Netwealth Level 1 risk categories, and examples of how Netwealth manages the risk.
Risk type
Description
Managing the risk
Governance
Risk
Risk of an inadequate corporate
governance framework impacting
the ability to make reasonable and
impartial business decisions
having regard to the interests of
the relevant stakeholder (for
example, shareholders, investors,
members, employees, suppliers,
financial intermediaries)
•
Board approved Committee Charters, Policies and delegations in
place to manage governance risks, including conflicts
management.
•
Open and transparent communication with shareholders, for
example through Annual General Meetings, ASX announcements,
investor briefings.
•
Annual reviews of Board Performance, skills and fitness and
proprietary to determine that the Board has the appropriate set of
skills and experience to discharge its duties.
Strategic
Risk
Risk of failing to achieve the stated
objectives and goals of its
strategic business plan and/or
change strategic direction to meet
market needs.
•
Strategic Business Plan developed and approved annually by the
Board, with quarterly monitoring and reporting of progress against
key initiatives.
•
Diversification of revenue streams.
•
The Board discuss strategic direction at each Board meeting to
remain abreast of competitive market dynamics.
•
Strategic planning process considers multiple factors including
competitors, external opportunities, regulatory change, technology
opportunities, new products and services, profitability, pricing and
adviser / client demand.
Entity Risk
Risk of failing to maintain our
brand, reputation and standing in
the industry and community.
•
Annual budget is approved by the Board and monitored, with 18
month cash flow projections, via monthly and ad hoc reports.
•
Regular monitoring and oversight of the Corporate Sustainability
Framework, including by the People and Corporate Sustainability
Committee (PCSC) and the Board, noting that Netwealth does not
have material exposure to environmental and social risks. Please
refer to the Corporate Sustainability Report for further information
about Netwealth’s corporate sustainability framework.
•
Netwealth holds an allocation of capital as appropriate to enable
flexibility to deal with unanticipated business conditions.
•
A Group Tax Governance Framework is in place to manage entity
and product tax obligations.
•
Regular monitoring of media to understand external perceptions of
Netwealth’s reputation and brand.
•
Existence of a Complaints Policy and a Whistleblowing Policy to
ensure open and transparent interactions with clients and
employees.
20 | netwealth Annual Report 2024 For the year ended 30 June 2024
Risk type
Description
Managing the risk
Culture,
Conduct
and People
Risk
Risk of misalignment between
Netwealth Values and the
behaviours, capabilities and
decisions of our people
•
Board approved Code of Conduct which all Netwealth employees,
and directors are expected to abide by.
•
Oversight by the PCSC of the effectiveness of Netwealth’s policies
and initiatives relating to diversity and inclusion, including policies
and roadmaps.
•
Board and Remuneration Committee oversight to ensure
remuneration policy aligned to company values.
•
Monthly employee surveys to measure culture (including risk
culture) and sentiment.
•
Employee background screening, compliance training and
consequence management framework.
•
Dedicated People and Culture team overseeing the succession,
talent, performance, training and work conduct.
Operational
Risk
Risk of loss resulting from
inadequate or failed internal
processes, people and systems, or
from external events.
•
Board approved policies governing operational and compliance
risks including financial services and superannuation regulatory
requirements, business continuity, privacy, data governance,
whistleblowing, Anti Money Laundering (AML)/Counter-Terrorism
Financing (CTF), records management, issues, incidents and
breach handling.
•
Oversight of compliance and regulatory matters, including
regulatory change, by Board Committees, supported by
Netwealth’s Risk, Legal and Governance function and the Office of
the Trustee for Netwealth’s superannuation business.
•
Regular monitoring of operational risks and controls, including
reconciliations, peer review, and testing performed to understand
and mitigate impact of any control failure and identify potential
errors (if applicable).
•
Regular monitoring of Netwealth’s cyber resilience and the
systems, processes and policies to manage material cyber risks,
including oversight by the Compliance and Risk Management
Committee (CRMC) of Business Continuity Planning (BCP) and
relevant reporting on the outcomes of the annual BCP testing
program.
•
Whistleblowing Policy encourages employees and eligible
whistleblowers to raise concerns to Netwealth
•
Dedicated infrastructure, security, and data governance functions
manage Netwealth’s technology and security requirements.
•
Independent audits and assurance reviews of information
technology, security, business continuity, controls, financial
statements and application of process and policy overseen by the
Audit Committee.
•
Training, frameworks, policies, controls and processes in place to
reduce likelihood of risk.
•
Application of a Code of Conduct for suppliers.
21 | netwealth Annual Report 2024 For the year ended 30 June 2024
Risk type
Description
Managing the risk
Product
Risk
Risks relating to Netwealth
products and services involving
market conditions, custody,
investment decisions, liquidity
profile of assets or product design
and distribution.
•
Appropriate frameworks, policies, delegations and controls in
place to manage product risk, including product governance
policy, investment governance frameworks and annual stress
testing and liquidity management plan.
•
Monitoring developments with responsible investment and
environmental, social and governance matters including
implementation of governance frameworks for relevant
investment options available on the Netwealth Platform.
•
Segregation of custody function both physically and for decision
making.
22 | netwealth Annual Report 2024 For the year ended 30 June 2024
Corporate Sustainability
At Netwealth we maintain that our core business and
corporate vision must be central to our corporate
sustainability framework. With a strong core that provides
scalable leading technology and service, Netwealth
continues to act transparent and genuine in our
compliance and governance practices; operate ethically
to manage regulatory and reputation risk; and apply
strong cyber security and data governance practices.
Our people are the life of what we do, it is their skills,
enterprise and enthusiasm that make Netwealth, the
company that it is. Our products and services directly
reflect our employees’ positive performance and
therefore their diversity, talent, and wellbeing are critical
to our ongoing success. With a strong core; a genuine and
transparent approach to governance and a talented,
diverse, and healthy workforce, Netwealth seeks to create
a positive impact in our community by supporting impact
and community partners; raising funds and contributing
to not-for-profit organisations aligned to our values; and
through giving back by volunteering our time and resources.
Reflecting on FY2024, these are some of the highlights in each of the four key areas:
Enhance our core
business
We protect and enhance
our core business
•
Netwealth achieved ‘Advised Product of the Year’ at The Chant West Super
Fund Awards;
•
Netwealth rated No. 1 for ‘Best Product offering’ and ‘Best Transaction
Tools’ by Investment Trends;
•
A total of 32 environmental, social and governance (ESG) themed Managed
Models available on the Netwealth Platform; and
•
Netwealth’s investment menus now offer 76 ESG themed funds, and 200
funds with an ‘Above Average’ or ‘High’ Sustainability Rating by Morningstar
available: https://www.netwealth.com.au/web/resources-and-tools/esg-
investments
Be genuine and
transparent
We are ethical, genuine
and transparent in our
dealings
•
The Netwealth platform received reasonable assurance from its auditors on
Service Organisation Controls, SOC 2;
•
Updated Netwealth’s remuneration framework to align with APRA
Prudential Standard CPS511 Remuneration and commenced further
changes in preparation for the incoming Financial Accountability Regime
(FAR); and
•
Continued to enhance Netwealth’s human rights and modern slavery
program by providing training to employees and the Board, and updated
the Fund Manager risk assessment approach.
•
Issued our annual tax transparency report with the latest report dated 1
July 2024 available in our Shareholder Centre.
23 | netwealth Annual Report 2024 For the year ended 30 June 2024
Foster diversity, talent
and wellbeing
We implement strategies
and actions to achieve an
inclusive, diverse and
healthy workplace
•
Set measurable gender diversity targets of 40/40/20 for the Board and
Executive team by FY2026. Netwealth has already met the target for female
representation on the Board in FY2024;
•
Developed and rolled out our inaugural three-year inclusion and diversity
roadmap to define purpose driven objectives that provide a framework to
maintain and foster an inclusive and diverse workplace;
•
Developed and implemented a new positive performance framework for
employees designed to retain and motivate high performers and elevate
Netwealth’s overall performance; and
•
Provided Feeling Safe @ Work in-person training to employees with the aim
of providing an understanding of psychosocial hazards, how to eliminate or
mitigate risks and promote a sense of psychological safety at work.
•
Gender diversity indicators for the year to 31 March 2024 are:
Tracking Netwealth’s gender
diversity targets FY2024
Gender diversity
targets for women
FY2024 women
representation
Gender diversity
target for men
FY2024 men
representation
The Board
40%
43%
40%
57%
Executive team
40%
33%
40%
67%
Gender diversity
Women
Men
Other
Managers[1]
44%
56%
0%
All employees
42%
57%
0%[2]
Create a positive social
and environmental
impact
Measure and reduce our
climate and
environmental footprint
and partner with
organisations that create
a lasting positive social
impact
•
Netwealth set a medium-term climate target of achieving carbon neutrality
for operational scope 1, scope 2 and scope 3 emissions by 2030 and a long-
term target of reaching net zero by 2050;
•
Inaugural reporting of scope 1 and scope 2 emissions total of 69.26 tCO2e
for FY2024;
•
Granted $116,000 from the Netwealth Impact Fund since its inception in
2021 to Australian not-for-profit organisations; and
•
Funded over 125,000 Australian primary school students using Banqer
Primary since 2017.
[1] Excludes the Executive team.
[2] Employees who identify as neither a woman or a man is under 1%.
To understand our corporate sustainability efforts and achievements in FY2024, please explore the full
Netwealth Corporate Sustainability Report on our Corporate Shareholder website at:
https://www.netwealth.com.au/web/about-netwealth/corporate-sustainability/
The report offers detailed insights into our initiatives and performance indicators, reflecting our
commitment to creating a positive impact.
We value your feedback and look forward to sharing our growth and progress in coming years.
Please share your feedback with us through CSR@netwealth.com.au
24 | netwealth Annual Report 2024 For the year ended 30 June 2024
Corporate Governance
Netwealth operates in the highly regulated superannuation and investment sectors of the financial services
industry. The Board of Netwealth believes that sound governance is fundamental to the ongoing success and
growth of Netwealth. Accordingly, the Board has created a framework of governance, culture, and accountability for
managing Netwealth, including adopting relevant internal controls, risk management processes and corporate
governance policies and practices. These policies and processes are designed to meet the ASX Listing Rules, ASX
Corporate Governance Principles and Recommendations as well as Netwealth’s trustee, IDPS operator and
responsible entity obligations to the users of their financial products and services and to achieve high level of
corporate governance for the benefit of Netwealth’s shareholders and other stakeholders.
Shareholders can access information about Netwealth’s governance framework from Netwealth’s public website.
Information including the ASX announcements, shareholder meeting details, corporate sustainability, and
Netwealth’s governance policies can be located at https://www.netwealth.com.au/web/about-
netwealth/shareholders/. Shareholders can access this information and communicate with Netwealth through the
shareholder contact link. Netwealth encourages electronic communication with shareholders, however we will
provide hard copy information on request.
Board of Directors
A high performing, effective Board is essential for the proper governance of Netwealth. The Board has the following
responsibilities:
•
Represent and serve the interests of shareholders by overseeing and appraising Netwealth’s strategies, values,
policies, and performance.
•
Select, appoint, and evaluate the performance of the Chief Executive Officer and Managing Director (CEO), the
Executive Team (the Executive), and other key employees.
•
Approve the Remuneration Policy, in accordance with Netwealth’s purpose, values, strategic objectives and risk
appetite.
•
Determine the remuneration of the CEO, the Executive and the Board.
•
Define Netwealth’s purpose, develop and approve Netwealth’s corporate strategy, including setting
performance objectives and approving operating budgets, and corporate performance and sustainability
targets.
•
Approve the risk management framework, including Netwealth’s appetite for risk and the implementation of
appropriate systems to manage those risks.
•
Review, ratify, and monitor the systems of risk management, internal control, and compliance.
•
Review and approve Netwealth’s values, code of conduct and corporate governance policies.
•
Approve and oversee major capital expenditure and financial commitments, acquisitions, divestitures and
capital management.
•
Monitor and review management processes aimed at ensuring the integrity and accuracy of financial and other
reporting.
•
Approve financial reports, forward looking statements, and other reports required by law or under the ASX
Lising Rules, including overseeing NWL’s process for timely and balanced disclosure of material information.
•
Satisfy itself that appropriate frameworks exist for relevant information to be reported to the Board and where
required, challenge the recommendations of the Executive.
•
Oversee and monitor frameworks to manage workplace mental health and wellbeing, diversity and inclusion,
culture, psychological and psychosocial safety, occupational health and safety.
•
Oversee and monitor a corporate sustainability framework that promotes a positive environment and social
impact.
25 | netwealth Annual Report 2024 For the year ended 30 June 2024
•
Communicate to shareholders, stakeholders and the market generally on Netwealth’s performance and other
material matters, as required.
The responsibilities of the Board are detailed in Netwealth’s Board Charter, including setting out the role and
responsibility of the Chair. The Board Charter can be located at https://www.netwealth.com.au/web/about-
netwealth/shareholders/.
Directors are expected to attend all board meetings where possible, either in person or via teleconference or
videoconference. Details of Director attendance at Board meetings up to 30 June 2024 are included on page 37.
Board committees
The Board has established committees to assist the Board in discharging its duties. The Board has five committees:
the Audit Committee, the Compliance and Risk Management Committee (CRMC), the Remuneration Committee,
the Nomination Committee, and the People and Corporate Sustainability Committee (PCSC).
Day-to-day management of Netwealth is delegated to Netwealth’s CEO and the Executive.
All Directors have access to agendas and papers of all committee meetings through Netwealth’s board portal. All
Directors, who are not members of a committee have an open invitation to attend every meeting. The signed
minutes of each committee meeting are tabled at a subsequent Board meeting. The Chair of each committee is
invited by the Board Chair to report any relevant matters to the Board at each scheduled board meeting. If required,
matters can be escalated to the Board at any time, and Board meetings can be called, if required, to consider a
matter before the next scheduled Board meeting.
Refer to NWL’s Corporate Governance Statement located on the Netwealth website for detailed information on the
responsibilities of each board committee.
Director nomination and appointment
The Board is currently comprised of seven Directors, comprising an Independent Chair, the CEO, and five Non-
Executive Directors (four of whom are independent)1. Netwealth’s Board Renewal and Performance Evaluation
Policy requires that the Chair will at all times be an independent Non-Executive Director. The majority of
Netwealth’s Board are independent.
1 Michael Heine transitioned from Executive Director to Non-Executive Director at the end of FY2024.
26 | netwealth Annual Report 2024 For the year ended 30 June 2024
When considering an appointment to the Board, the Board will consider the candidate’s skill, judgement, diversity,
and experience. The Board uses a skills matrix to assist with an independent assessment of the current Board and
to identify any gaps in the collective skills of the Board.
Each year the Board considers the Board skills matrix (see page 27) to consider if the skills and experience on the
Board will provide the judgement, experience and diversity that will enable Netwealth to achieve its strategic
objectives.
The Board has delegated to the Nomination Committee the responsibility to assess a candidate’s independence
having regard to current and any previous employment and personal interests of the candidate. The Nomination
Committee must put this assessment to the Board for approval along with comprehensive checks for new Directors
on education, employment, character, criminal history and bankruptcy, alongside, an assessment of independence
and the ability for the candidate to have sufficient time to meet their responsibilities to Netwealth. New Directors
are required to make statements that they are not a disqualified person and that they are fit and proper for the
position. All Directors make an annual declaration to this effect.
Non-Executive Directors are generally appointed for a term of three years and will stand for election at the Annual
General Meeting (AGM) which occurs three years after their last appointment date. For each Director that is put
forward for election, Netwealth will make available information about the Director to shareholders so that they can
make an informed decision.
New Directors are provided a letter of appointment and a copy of Netwealth’s Board Directors’
Handbook. Together, these two documents outline Netwealth’s expectations of the Director and the induction
process (including how to access all other Netwealth governance policies). The Company Secretary is responsible
for ensuring appropriately inducting a new Director.
Board Director performance and training
Directors are required to comprehensively prepare for, attend and participate in Board meetings. Every year each
Director is requested to assess the Board’s performance. The Chair, Company Secretary or a third party appointed
by the Board, collates the results of these assessments. A summary of this performance review is provided to the
Board for discussion. In addition to the Board discussion, where appropriate, the Chair meets one-on-one with each
Director to specifically address performance and effectiveness of the Board as a whole and of the Director.
The performance of the Chair is reviewed by the Board as part of the annual Board Performance Review. This
occurred for calendar year 2023 by way of an anonymous survey issued to all Directors by the Company Secretary in
December 2023, which included specific questions about the performance of the Chair. The outcomes of this
survey were provided to the Board.
The Board keeps up to date with relevant market and industry developments through a range of training and
briefings. In FY2024, each Director was required to complete at least 20 hours of continuous professional
development (CPD), and all have met this requirement. The Company Secretary collects Directors’ training registers
annually and retains this information.
The Company Secretary annually assesses the fit and proper requirements of the Board in reference to key criteria
listed in the Netwealth Fit & Proper Policy. This includes reviewing the skills, expertise and knowledge of the Board,
as well as CPD requirements and any disclosed conflicts of interest. The Board is required to take all reasonable
steps to avoid actual, potential or perceived conflicts of interest, and each Director is required to disclose any
conflicts at each Board meeting.
27 | netwealth Annual Report 2024 For the year ended 30 June 2024
Board skills matrix
Category
Explanation
Timothy Antonie
Michael Heine
Matthew Heine
Davyd Lewis
Sally Freeman
Kate Temby
Sarah Brennan
Strategy
•
Ability to contribute to and challenge the strategic direction of Netwealth, including assessing
and debating the strategic business plans, and contributing to achieving Netwealth’s strategic
objectives.
● ● ● ● ● ● ●
Product
•
Understanding of Netwealth’s products and clients, including product basics of
Superannuation, IDPS and other financial products.
◕ ● ● ● ◕ ◕ ●
Financial
acumen
•
Understanding of key administration and accounting controls, financial records, statements
and presentations.
•
Strong financial literacy and analytical thinking skills.
● ● ◕ ● ● ● ●
People and
Culture
•
Understanding of organisational design, succession planning and remuneration policy
frameworks.
•
Leadership, effective communication and influencing skills.
•
Experience in building and maintaining a diverse, values led and high performance culture.
•
Understanding of potential risks and opportunities from a physical, psychological and
psychosocial perspectives.
◕ ◕ ● ● ◕ ● ◕
Legal,
regulatory and
governance
•
Knowledge of a Director’s legal requirements and understanding of Board responsibilities,
composition and the Director appointment and removal process.
•
Understanding of applicable legal requirements and regulation, including basic principles of
Corporation and Trust law and governing documentation such as the Constitution.
•
Ability to understand and contribute to debate on law as applicable to Netwealth’s products
and services.
•
Understanding of the requirements applicable to an ASX listed company.
•
Ability to participate in debate as to the content of Netwealth’s Board policies and to the
delegation of duties to Netwealth’s CEO, the Executive Director and Executive.
◕ ● ◕ ● ● ◕ ●
Risk
management
and audit
•
Understanding of Netwealth’s Risk Management Framework.
•
Ability to understand and contribute to debate on the Netwealth’s risk and control
framework.
•
Understanding of investment risk management and monitoring.
•
Understanding of the role of Netwealth’s internal and external auditors.
•
Awareness of fraud, corruption issues.
◕ ◕ ◕ ● ● ◕ ●
Investments
•
Ability to debate management proposals, issues and policies relating to investments
•
Understanding of and ability to debate investment issues and recommendations
◕ ● ● ● ● ● ●
Cyber Security
and
technology
•
Ability to contribute to debate on the strategic direction of Netwealth’s information
technology.
•
Understanding of cyber protection, cyber risk management and principles of business
continuity.
•
High level knowledge of IT infrastructures, systems, processes and growth requirement.
◕ ◕ ◕ ◕ ◕ ◕ ◕
Corporate
Sustainability
•
Understanding of how Netwealth can provide sustainable solutions to its products and
services.
•
Understanding of social, environmental and governance implication in decision making.
◕ ◕ ◕ ◕ ◑ ● ◕
Other
•
Competent in dealing with media.
•
Commitment to Netwealth’s company values.
•
Meets the Netwealth Investments Limited’s Fit and Proper Person requirements.
● ● ● ● ● ● ●
Skills Ratings:
●
Expert level of skill and can lead a debate on the subject
◕
Experienced level of skill and is comfortable in making decisions
◑
Understands the basics and can appropriately contribute to a debate
28 | netwealth Annual Report 2024 For the year ended 30 June 2024
Financial reporting & Auditor Independence
The Audit Committee assists the Board in reviewing and monitoring the accuracy and integrity of Netwealth’s
financial reports and statements. The Audit Committee reviews the financial reports and statements with the Chief
Financial Officer (CFO), the CEO and Netwealth’s external auditor to ensure their accuracy, compliance with
accounting standards and compliance with other policies and laws.
The CFO and the CEO provide declarations to the Board, consistent with the requirements of the Corporations Act
2001. These declarations assist the Board in its consideration of the full-year and interim financial statements by
showing that, in the opinion of the CFO and CEO, Netwealth’s financial records have been properly maintained, that
the financial statements comply with the appropriate accounting standards and give a true and fair view of the
financial position and performance of Netwealth and that the consolidated entity disclosure statement is true and
correct.
Netwealth’s external auditor, Deloitte Australia, appointed since April 2017, is invited regularly to Netwealth’s Audit
Committee meetings and at least annually meets with the Audit Committee without members of the Executive
present. Ms Lani Cockrem, the lead audit engagement partner was appointed in the 2022 financial year to comply
with the requirements of the Corporations Act 2001 and to promote independence through auditor rotation.
Deloitte Australia will attend Netwealth’s AGM in November 2024 to answer queries on the audit and content of the
auditor's report.
Netwealth maintains an external audit policy which is appended to Netwealth’s Audit Committee Charter and is
available on our website. The external auditor provides a declaration during the interim and year-end financial
reports, confirming that no prohibited non-audit services have been provided. Additionally, the auditor declares
their independence from Netwealth and its subsidiaries in accordance with the auditor independence requirements
of the Act and the ethical standards set by the Accounting Professional and Ethical Standards Board (APES 110
Code of Ethics for Professional Accountants) relevant to the audit of the financial report in Australia.
The Audit Committee assesses the external auditor's performance, objectivity and independence at least annually.
Director shareholding requirements
To align with shareholder’s interests, it is a condition of appointment that Non-Executive Directors of NWL are
expected to directly or indirectly own shares in Netwealth with a total value equal to at least one year’s
remuneration. It is expected that a Non-Executive Director acquire the shares within 3 years of their appointment.
Non-Executive Directors must abide by Netwealth’s Trading Policy and disclose any trading in Netwealth shares to
the Chair.
Company Secretaries
All Directors have access to the Joint Company Secretaries, Jodie Henson (Chief Risk, Legal and Governance
Officer) and Grant Boyle (Chief Financial Officer). The Company Secretaries are appointed by the Board and are
accountable to the Board, through the Chair, on all matters to do with the proper functioning of the Board. The
Company Secretaries are responsible for advising the Board on governance matters and ensuring compliance with
Board charters and procedures. Grant Boyle is appointed as the person responsible for communication with the
ASX in relation to listing rule matters in accordance with listing rule 12.6.
The Chair meets from time to time with one or both Company Secretaries on Board activities and the performance
of the secretariat in providing services to the Board. The Chair of the Board may provide feedback to the CEO on
the individual performance of the Company Secretaries for inclusion in their formal performance review.
29 | netwealth Annual Report 2024 For the year ended 30 June 2024
Directors’ Information and Experience
The Directors bring to the Board a breadth of expertise and skills, including industry and business knowledge,
financial management skills and corporate governance experience.
Name and title
Profile
Timothy Antonie
Independent
Non-Executive Director
Chair
•
Timothy has been a Director of Netwealth since November 2015 and was appointed as the
independent Chair of Netwealth (and its related entities, excluding Netwealth Superannuation
Services Pty Ltd (NSS)) on 17 February 2021.
•
Timothy commenced his career at Price Waterhouse (now PwC) and qualified as a chartered
accountant. He subsequently worked at several investment banks, including at UBS Investment
Bank as a Managing Director, where he advised major Australian companies in large scale
mergers, acquisitions, sales and restructures and equity transactions, as well as day-to-day
equity market facing matters. Timothy is a principal of Stratford Advisory Group providing
independent financial advice to Australian and international corporations.
•
Timothy is currently the chair of Breville Group Ltd (ASX:BRG) and the lead independent
Director of Premier Investments Ltd (ASX:PMV).
•
Timothy holds a Bachelor of Economics (majoring in Accounting) from Monash University.
•
Timothy is Chair of the Nomination Committee and a member of the Remuneration Committee,
People and Corporate Sustainability Committee (from August 2023), and the Netwealth
Investments Limited (NIL) Investment Committee.
Matthew Heine
CEO & Managing
Director (CEO)
•
Matthew joined Netwealth in July 2001 and was appointed a Director in March 2004. He was
appointed Joint Managing Director in January 2015, became Managing Director in Oct 2022
then promoted to CEO & Managing Director from June 2023.
•
Matthew has been instrumental in the development of the Netwealth platform and products as
well as the distribution, branding and marketing of the Group. Matthew’s role and experience in
the sales, marketing and strategy field brings a firsthand understanding of the industry and
client base.
•
Matthew is also a Director of Heide Museum of Modern Art from January 2024.
•
Matthew holds a Diploma of Financial Services and an Advanced Diploma of Management.
•
Matthew is a member of the People and Corporate Sustainability Committee.
Michael Heine
Non-Executive Director
•
Michael has been a Director of Netwealth since its establishment in 1999.
•
Michael was instrumental in the establishment of Netwealth in 1999. Michael acted as sole
Managing Director from 1999 to 2014 and acted as Joint Managing Director together with his
son Matthew from January 2015 until October 2022.
•
Michael transitioned from Executive Director to Non-Executive Director at the end of FY2024.
•
Michael has experience in Australian and European financial markets, including commodity
trading, international financing, mortgage lending and property development. Michael was
instrumental in the establishment of the Heine Brothers funds management business in 1982
and was its Managing Director from 1982 to 1999 when the company was acquired by ING (then
Mercantile Mutual).
•
Michael is a member of NIL Investment Committee, NSS Audit Risk and Compliance Committee
and NSS Superannuation Investment Committee.
30 | netwealth Annual Report 2024 For the year ended 30 June 2024
Name and title
Profile
Davyd Lewis
Independent
Non-Executive Director
•
Davyd has been a Director of Netwealth since July 2009.
•
Davyd was a partner of Mallesons Stephen Jaques for 20 years until his retirement in 2008.
Davyd’s role included Partner in Charge of the Melbourne centre, Managing Partner Practice of
Mergers & Acquisitions, Property and Construction, Dispute Resolution and Intellectual
Property, National Practice Team Leader of the Mergers & Acquisitions Group and was
responsible for supervising the relationship with 50 of the firm’s biggest clients.
•
Davyd holds a Bachelor of Economics, a Bachelor of Laws and a Master of Laws (majoring in
securities markets and takeovers).
•
Davyd is the Chair of the Compliance and Risk Management Committee and the Remuneration
Committee and a member of the Audit Committee and Nomination Committee.
Sally Freeman
Independent
Non-Executive Director
•
Sally joined Netwealth as a Director in October 2019.
•
Sally was a partner at KPMG for 15 years and her executive career focussed on accounting,
governance and risk consultancy culminating in a number of leadership roles with KPMG: Global
Executive–- Risk Consulting Services, Australia Managing Partner Risk Consulting, Partner in
Charge Board Advisory and Managing Partner Internal Audit.
•
Sally is currently a Director of Regis Healthcare Limited (ASX:REG), Regional Investment
Corporation, Eastern Health, Melbourne Football Club, Suburban Rail Link Authority and Aioi
Nissay Dowa Insurance Company Australia.
•
Sally holds a Bachelor of Commerce, is a graduate of the Australian Institute of Company
Directors, a Fellow of Chartered Accountants Australia and New Zealand and a member of Chief
Executive Women.
•
Sally is the Chair of the Audit Committee and a member of the Compliance and Risk
Management Committee, Remuneration Committee, Nomination Committee, NSS Audit Risk
and Compliance Committee and NSS Superannuation Investment Committee.
Kate Temby
Independent
Non-Executive Director
•
Kate joined Netwealth as a Director in February 2021.
•
Kate is a Managing Director with Metlife Investment Management, a Director of Conscious
Investment Management (a diversified impact investment manager) and a member of the
Melbourne Grammar School Investment Committee.
•
Kate was formerly a Board member of Melbourne Girls Grammar and a Partner at Affirmative
Investment Management. Kate has worked in New York and Toronto in her roles as a Managing
Director at Goldman Sachs and as a Consultant at Price Waterhouse (now PwC).
•
Kate holds a Bachelor of Commerce, is a member of the Australian Institute of Company
Directors and the Chartered Accountants Australia and New Zealand.
•
Kate is the Chair of the People & Corporate Sustainability Committee and NIL Investment
Committee. Kate is also a member of the Audit Committee, Compliance and Risk Management
Committee, Remuneration Committee and the Nomination Committee.
•
From 1 July 2024, Kate will step down as Chair, but will remain as a member of the NIL
Investment Committee.
31 | netwealth Annual Report 2024 For the year ended 30 June 2024
Name and title
Profile
Sarah Brennan
Independent
Non-Executive Director
•
Sarah joined Netwealth as a Director in February 2024.
•
Sarah is currently non-executive director at Noble Oak Life Insurance Limited (ASX:NOL) and
Argo Global Infrastructure Limited (ASX:ALI).
•
Sarah was formerly a non-executive director at AMP Superannuation and ASX-listed Mortgage
Choice. Sarah founded and was Managing Partner of Comparator Business Benchmarking, a
leading provider of benchmarking to Australian financial services market. Sarah was also the
founder of The Private Collection Australia and a past Deputy Chair and Director of the Financial
Planning Association of Australia.
•
Sarah holds a Bachelor of Arts, a Graduate Management Diploma from the Australian Graduate
School of Management, is a graduate of the Australian Institute of Company Directors and a
member of Chief Executive Women.
•
Sarah was appointed as a member of the Audit Committee, the NIL Investment Committee,
NSS Audit Risk and Compliance Committee and NSS Superannuation Investment Committee
from February 2024.
•
From 1 July 2024, Sarah was appointed Chair of the NIL Investment Committee and the NSS
Audit, Risk and Compliance Committee and was appointed as a member of the Compliance and
Risk Management Committee.
32 | netwealth Annual Report 2024 For the year ended 30 June 2024
Executive Leadership Information and Experience
Profiles of Netwealth’s senior management team are set out below.
Name and title
Profile
Matthew Heine
CEO & Managing
Director
•
Refer to Board of Directors section
Michael Heine
Executive Director
•
Refer to Board of Directors section
•
Michael transitioned from Executive Director to Non-Executive Director at the end of FY2024.
Grant Boyle
Chief Financial Officer
and Joint Company
Secretary
•
Grant joined Netwealth in May 2017.
•
Grant has more than 30 years’ experience in financial services and the accounting
profession. Most recently the Chief Financial Officer of EMR Capital, Grant has held several
Chief Financial Officer and Chief Operating Officer roles within financial services, including at
BlackRock, Powerwrap and Phillip Capital.
•
Prior to entering the funds/Platform space, Grant was a finance manager with ANZ Group
Finance and a manager in the Corporate Recovery and Insolvency division of Ernst & Young.
•
Grant holds a Bachelor of Business (Accounting) from Latrobe University and a member of
Chartered Accountants Australia & New Zealand.
•
Grant has announced his retirement and will hand over to a new CFO during FY2025.
Jodie Henson
Chief Risk, Legal and
Governance Officer
and Joint Company
Secretary
•
Jodie joined Netwealth in February 2023.
•
Jodie is responsible for managing Netwealth’s Legal, Risk and Compliance team.
•
Jodie has over 20 years’ experience across the financial services industry in compliance, risk
management, corporate governance, legal advice, and regulatory change. Prior to joining
Netwealth, Jodie held roles with Westpac, Morningstar, ANZ and Standard & Poor’s.
•
Jodie holds a Bachelor of Law/Arts from Deakin University, a Masters of Law from Monash
University and is a graduate of the Corporate Governance Institute and the Australian
Institute of Company Directors.
33 | netwealth Annual Report 2024 For the year ended 30 June 2024
Alistair Densley
Executive General
Manager-
Transformation and
Special Projects
•
Alistair joined Netwealth in May 2002.
•
Having previously held a leadership role within Netwealth’s IT Development Team and as
General Manager for Operations, Alistair is currently responsible for key strategic projects
within Netwealth.
•
Alistair has over 20 years’ experience in the financial services industry and has played an
important role in establishing and achieving scalability for many administrative processes
across Netwealth’s Platform.
•
Alistair holds a Bachelor of Commerce.
Amanda Atkinson
Executive General
Manager -Service,
Administration &
Support
•
Amanda joined Netwealth in February 2004.
•
Amanda is the General Manager for Service, Administration & Support. Her department is
responsible for administering Netwealth’s Superannuation and Multi Asset Portfolio
Services and is the primary point of contact for financial advisers, members and investors.
•
Amanda’s role is to lead a customer focussed administration, improvement and service
team committed to the provision of a best practice service.
•
Amanda has just under 20 years’ experience in the financial services industry.
•
Amanda holds a diploma of Financial Planning and Management.
Damian Holland
Executive General
Manager - Sales &
Distributions
•
Damian joined Netwealth in October 2019 and is responsible for managing Netwealth’s
National Sales & Distribution Team.
•
He brings more than 25 years of financial services experience working with major global and
Australian wealth management firms in range of executive leadership roles.
•
Damian holds a Bachelor of Finance from the University of Illinois and an MBA from Bond
University.
David Sutherland
Executive General
Manager, Investment
Operations and
Managed Accounts
•
David joined Netwealth in July 2013.
•
During his time at Netwealth, David has managed multiple teams across the Investment
Operations division including Corporate Actions & Managed Accounts.
•
David holds a Bachelor of Commerce (Finance & Marketing) and a diploma of Financial
Planning.
34 | netwealth Annual Report 2024 For the year ended 30 June 2024
John Hanrahan
Chief Information
Officer
•
John joined Netwealth in May 2012.
•
John has responsibility for application development, technology infrastructure, business
analysis, project management and technology vendor management. John has more than 30
years of experience in financial services technology. Prior to joining Netwealth, John led the
Australian technology team for BlackRock.
•
John holds a Bachelor of Business (Banking and Finance) from Monash University.
Matt West
Executive General
Manager - Product and
Marketing
•
Matt joined Netwealth in August 2020.
•
Matt has responsibility for Product Management, Investment Governance & Research, and
strategy implementation.
•
He has over 20 years’ experience in wealth management and financial services industry.
•
Matt holds a Bachelor of Commerce and an MBA.
Shanyn Payne
Chief People Officer
•
Shanyn joined Netwealth in July 2023.
•
Shanyn has more than 20 years’ Human Resources experience across several industries,
including financial services, technology and retail. Most recently Shanyn was the Chief
People Officer of Finder, and she has held several HR Executive roles including at Afterpay
and Online Education Services.
•
Shanyn holds a Bachelor of Behavioural Science from LaTrobe University, a Graduate
Diploma in Human Resources from Deakin University, an MBA from Deakin University and is
a certified member of the Australian Human Resources Institute.
35 | netwealth Annual Report 2024 For the year ended 30 June 2024
Netwealth’s values
At Netwealth the Board, Executive and employees pride ourselves on living our shared values, which impact the way
we work and communicate.
Netwealth’s values were formulated by Netwealth Board, Executive and employees to capture the unique point of
difference that we bring to the market. We believe the values strongly represent why Netwealth was successful in
the past and we encourage our team to embrace these values as we believe they will ensure Netwealth’s continued
success.
During induction, new employees are introduced to the values and employees are recognised across the business
where they demonstrate exceptional alignment to one or more values as part of Netwealth’s value awards
presented periodically at Town Hall meetings. The performance review process includes providing employees
feedback and assessment of performance against our values. Netwealth’s values are:
We are curious and look to
challenge assumptions, explore
new possibilities, and
enthusiastically learn.
We are optimistic and look to be
positive, drive for solutions and
demonstrate passion and pride.
We are courageous and look to act,
overcome barriers, and stand up for
the right outcomes.
We are collaborative and look to
consider other’s priorities, share
knowledge, help others, and
communicate effectively and
respectfully.
We are agile and look to adapt
to change, focus on agreed
priorities, and execute quickly
and efficiently.
We are genuine and look to be
open, honest, and transparent, act
with integrity, ensure compliance
with regulations, and demonstrate
professionalism consistently.
36 | netwealth Annual Report 2024 For the year ended 30 June 2024
Directors’ Report
The Directors present their report on Netwealth Group Limited “the Company” and its controlled entities for the
year ended 30 June 2024 (FY2024). The consolidated entity, comprising the Company and its controlled entities, is
referred to as “the Group or Netwealth”. In order to comply with the provisions of the Corporations Act 2001, the
directors report is as follows:
Directors
The Directors (unless stated otherwise) in office since the start of the financial year to the date of this report are:
Non-Executive Directors:
Timothy Antonie (Chair)
Davyd Lewis
Sally Freeman
Kate Temby
Sarah Brennan (appointed on 28 February 2024)
Michael Heine (transitioned from Executive Director to Non-Executive Director from 29 June 2024)
Executive Director:
Matthew Heine
Details of the qualifications, experience and special responsibilities of the Directors and qualifications and
experience of the Company Secretaries at the date of this report are set out on pages 29 to 34 of this Annual
Report.
Principal Activities
The principal activities of the Group are to provide Financial Intermediaries and clients with wealth administration
and management services including managed funds, investor directed portfolio services, a superannuation master
fund, managed accounts service, self-managed superannuation and non-custodial administration services. There
were no significant changes to the principal activities of the Group during the financial year that are not otherwise
disclosed in this Annual Report.
State of affairs
There were no other significant changes in the state of affairs during the year that are not otherwise disclosed in
this Annual Report.
Dividends
On 16 August 2023, the Company declared a final dividend and paid on 21 September 2023 a fully franked dividend of
13.0 cents per share, representing a total dividend of $31,705,842.
On 20 February 2024, the Company declared an interim dividend and paid on 28 March 2024 a fully franked dividend
of 14.0 cents per share, representing a total dividend of $34,164,793.
The Company does not have a Dividend Reinvestment Plan.
37 | netwealth Annual Report 2024 For the year ended 30 June 2024
Operating and Financial Review
Information on the operating and financial performance of the Group, its strategic and sustainability initiatives, risks
and outlook are set out on pages 11 to 23 of this Annual Report.
External outlook
Whilst the market is anticipated to face ongoing challenges, Netwealth remains strategically well positioned to
manage both opportunities and risks to achieve positive outcomes for our clients, communities and shareholders.
Netwealth has extensive knowledge and expertise in the financial services industry, strengthened by continuous
investment in our platform and reserve levels and maintains a robust risk management framework and culture. The
Board actively monitors Australia and global economic conditions and assesses its impact on the Group’s
operations. In response to the ongoing threat of cyber-attacks, Netwealth has implemented robust cyber risk
governance, including continuous system monitoring, employee upskilling, and preparedness for business
continuity events.
Netwealth is highly profitable, with substantial recurring revenues, high cash flow conversion and no external debt.
Subsequent Events to Reporting Date
Netwealth has entered into a new share purchase and sale agreement and acquired the remaining shares of Xeppo
on 12 August 2024. A $2.2 million loan from Netwealth to Xeppo was converted into equity in addition to the $5.9
million cash paid as total consideration.
In the opinion of the Board, there are no other matters or circumstances which have arisen between 30 June 2024
and the date of this Report that have significantly affected or may significantly affect the operations of the Group,
the results of those operations and the state of affairs for the Group in subsequent financial periods.
Directors’ meetings
During the financial year, 20 Board of Directors’ meetings were held. Attendances by each Director during the year
of Board meetings and Committee meeting where the Director is a member were as follows:
Board of
Directors’
meetings
Audit
Committee
Remuneration
Committee
Nomination
Committee
Compliance &
Risk
Committee
People and
Corporate
Sustainability
Committee
(A)
(B)
(A)
(B)
(A)
(B)
(A)
(B)
(A)
(B)
(A)
(B)
Directors
Timothy Antonie
20
20
-
-
10
10
2
2
-
-
4
4
Davyd Lewis
20
20
12
12
10
10
2
2
12
12
-
-
Sally Freeman
20
19
12
12
10
10
2
2
12
12
-
-
Kate Temby
20
19
12
10
10
9
2
2
12
11
5
5
Sarah Brennan*
9
9
4
4
-
-
-
-
-
-
-
-
Michael Heine
20
19
-
-
-
-
-
-
-
-
-
-
Matthew Heine
20
20
-
-
-
-
-
-
-
-
5
4
(A) Number of meetings held during the time the director held office and was eligible to attend as a member
(B) Number of meetings attended as a member
* Appointed as independent non-executive director on 28 February 2024.
38 | netwealth Annual Report 2024 For the year ended 30 June 2024
Indemnification of Directors, Officers and Auditors
It is the Group’s policy that its Directors and employees should be protected from any liability they incur as a result
of acting in the course of their employment in their respective capacities, subject to appropriate conditions.
During the financial year, the Company has paid premiums for insurance for the benefit of the Directors and
Executive team. In accordance with common commercial practice, the insurance policy prohibits disclosure of the
nature of the liability insured against and the amount of the premium.
The company has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
indemnified or agreed to indemnify the auditor of the company against a liability incurred as such by auditor.
Key Management Personnel (KMPs) and Employee Share and Option Plans
Information about the remuneration of KMPs is set out in the remuneration report section of this Directors’ report.
During the year, eligible employees who had served 3 or more years were offered ordinary shares valued at $1,000 as
a gift for no consideration resulting in 14,697 new ordinary shares issued at $12.45 (FY2023: 13,950 employee gift
shares)
A number of employees were granted performance rights as part of the Group’s long-term incentive plan during the
year. This resulted in the Group issuing 124,188 performance rights at an exercise price of $nil during the year
(FY2023: 72,050 performance rights). There was no new issue of options in FY2024 (FY2023: Nil).
Shares, options and performance rights granted to Directors and KMPs during the year:
Issuing entity
Type
Number
Class of shares
Executive Director
Matthew Heine
Rights
41,450
Ordinary
Senior Executive
Grant Boyle
Shares
69
Ordinary
Rights
11,947
Ordinary
39 | netwealth Annual Report 2024 For the year ended 30 June 2024
Details of all unvested options or rights as at the date of this report are:
Issuing entity
Type
Number
Class of shares
Exercise
price of
the
equity
Vesting date
Netwealth Group Limited
FY22 Options
25,000
Ordinary
$15.74
30 Jun 24
Netwealth Group Limited
FY23 Rights
78,552
Ordinary
nil
30 Jun 25
Netwealth Group Limited
FY24 Rights
117,686
Ordinary
nil
30 Jun 26
Details of all vested options but not yet exercised as at the date of this report are:
Issuing entity
Type
Number
Class of shares
Exercise
price of
the
equity
Expiry date of
equity
Netwealth Group Limited
FY20 Options
512,139
Ordinary
$7.5544
30 Jun 37
Netwealth Group Limited
FY22 Options
1,340,000
Ordinary
$15.74
30 Jun 39
Netwealth Group Limited
FY22 Rights
50,748
Ordinary
nil
N/A
Environmental Regulations
The Group does not believe that its operations are currently subject to any significant environmental regulation
under a law of the Commonwealth of Australia or an Australian State or Territory. To the best of the Directors’
knowledge, the Group has not incurred any material environmental liability during the year.
Netwealth recognises the increasing importance of sustainability-related disclosures and supports the efforts of
regulators and governments to advance disclosure requirements for consistent industry-wide reporting. The
International Sustainability Standards Board (ISSB) introduced two key sustainability reporting standards:
IFRS S1 General Requirements of Sustainability-related Financial Information: Establishes the overall
requirements for sustainability-related financial disclosures.
IFRS S2 Climate-related Disclosures: Mandates the disclosure of information to help users of financial statements
understand the reporting entity’s governance, strategy, risk management, and metrics and targets concerning
climate-related risks and opportunities.
In Australia, proposed sustainability standards are currently being deliberated following the public comment period
that closed on 1 March 2024, and related legislation has been introduced in Parliament under the Treasury Laws
Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth). If enacted, these requirements
will likely necessitate the Group to begin reporting under Group 2 in the FY2027 financial year. Netwealth is
proactively advancing its project to assess and prepare for these future sustainability and climate-related reporting
obligations.
A summary of our corporate sustainability initiatives is set out in pages 22 to 23 of this report. The full annual
Corporate Sustainability, quarterly progress report and latest initiatives are available on the Company’s website at
https://www.netwealth.com.au/web/about-netwealth/corporate-sustainability/
40 | netwealth Annual Report 2024 For the year ended 30 June 2024
Corporate governance
Netwealth is committed to being ethical, transparent and accountable. We believe this is essential for the long-term
performance and sustainability of our Company and supports the interests of our shareholders, clients and other
stakeholders.
A summary of the corporate governance statement is set out in pages 24 to 28. For the full corporate governance
statement and disclosure policies, please visit our website below.
https://www.netwealth.com.au/web/about-netwealth/shareholders/
Proceedings on behalf of the Group
No person has applied for leave of court to bring proceedings on behalf of the Group or intervene in any
proceedings to which the Group is a part for the purpose of taking responsibility on behalf of the Group for all or any
part of those proceedings. The Group was not a party to any such proceedings during the year.
Non-audit services
During the year, Deloitte Touche Tohmatsu, the Group’s auditor has performed internal controls assurance services
in addition to its statutory duties. Details of the amounts paid or payable to the auditor for audit and non-audit
services provided during the year are set out in Note 28 to the financial statements.
The Directors, in accordance with advice received from the Audit Committee, are satisfied that the provision of
those non-audit services during the year did not compromise the auditor independence requirements of the
Corporations Act 2001 for the following reasons:
•
All non-audit services have been approved in accordance with the Company’s non-audit services policy to
ensure that they do not impact the impartiality and objectivity of the auditor; and
•
None of the services undermine the general principles relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants, including reviewing or auditing the auditor’s own work, acting in a
management or a decision making capacity for the Group, acting as advocate for the Group or jointly sharing
economic risk and rewards.
Rounding of amounts
The Group is of a kind referred to in the Australian Securities and Investments Commissions Corporations
(Rounding in Financials/Directors’ Reports) Instrument 2016/191 and therefore the amounts contained in the
financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under s307C of the Corporations Act 2001 is set out
on page 59.
Signed in accordance with a resolution of the Board of Directors:
Timothy Antonie
Chair
13 August 2024
41 | netwealth Annual Report 2024 For the year ended 30 June 2024
Remuneration Report (audited)
Letter from the Remuneration Committee Chair
On behalf of the Board, I am pleased to present Netwealth’s FY2024 Remuneration Report.
Netwealth’s performance in FY2024
Netwealth's strong risk management framework and resilient culture have continued to enable the
Group to meet the challenges of an ever-changing risk environment. Netwealth navigated FY2024
without major disruptions and achieved remarkable growth, with record total income increasing by
18.9% to $255.2 million and record NPAT increasing by 24.1% to $83.4 million. This exceptional
performance was primarily driven by a 25.2% increase in Funds Under Administration (FUA) to $88.0
billion at the end of the financial year.
Review of the Remuneration framework and policy
The Remuneration Committee recognises the importance of maintaining an appropriate remuneration structure
that embeds Netwealth’s core values, aligns with our strategic objectives, is attractive to our employees, is
compliant with regulatory requirements, is transparent and meets the expectations of our shareholders, employees,
clients and the communities in which we operate. Our performance-based remuneration has behavioural,
performance and risk gateways to promote the effective management of both financial and non-financial risks. Our
values are embedded into our performance remuneration framework, and we hold all employees to account for
behaviours that are in the best interests of the group, our people, our community and our shareholders.
During the year, we have reviewed our remuneration framework in preparation for the changed requirements of
APRA Prudential Statement CPS 511, which will be applicable to Netwealth from FY2025 onwards. As a result of the
changes to CPS 511, it will be necessary for some of our senior executives to have a greater proportion of their
performance-based remuneration deferred and the deferrals will be for longer periods. Details of these changes as
they apply to our KMPs are set out in Section D of the Report.
The Financial Accountability Regime Act extends the financial accountability regime (FAR) to the superannuation
sector in FY2025 which will apply to a number of Netwealth executives from 15 March 2025. Further changes will be
made to our performance-based remuneration structure to comply with FAR during FY2025.
Netwealth incorporates a range of non-financial measures into executive performance-based pay, through our risk
management framework gateway that assesses risks applicable to our business, including corporate sustainability.
Further, our balanced scorecard assesses values alignment and achievement of strategic initiatives.
Davyd Lewis
Independent
Non-Executive
Chair of
Remuneration
Committee
42 | netwealth Annual Report 2024 For the year ended 30 June 2024
FY2024 STIs
In assessing the Executive Team’s performance, the Board determined that the team had performed strongly
overall, as reflected in Netwealth’s excellent results for the year.
For CEO Matt Heine, the maximum STI was 75% of fixed remuneration. For other executive team members,
including CFO Grant Boyle, the maximum STI was 35% of fixed remuneration. The STIs had a personal behavioural
gateway based on Netwealth’s values and a corporate performance gateway that required the Group to achieve at
least 95% of budget NPAT, both of which were achieved.
In addition to these gateways, there were three performance metrics with different weightings and performance
conditions that determined the proportion of STI payable.
The first condition, with a 65% weighting, was based on Netwealth achieving at least 95% of the budgeted NPAT.
Under this condition, the full amount (65% of the STI) was achieved and payable as Netwealth exceeded 105% of its
budgeted NPAT.
The second condition, with a 25% weighting, was based on the individual’s contributions to the effective execution
of Board approved annual strategic initiatives. Under this condition, 18.2% of the STI was achieved and payable for
both the CEO and the CFO.
The third condition had a 10% weighting based on individual values and performance ratings. Under this condition,
the CEO achieved the full 10% while for the CFO 7.5% of the STI was achieved and payable.
The cash payments of the STI cash bonus is to be paid over two years with, 50% paid within 30 days after the release
of this annual report and the remaining 50% to be paid within 30 days after the release of the subsequent year’s
annual report, subject to a malus clawback condition.
FY2024 LTIs
During the year, performance rights were granted to CEO Matt Heine, other members of the Executive Team and a
number of key employees. In the case of the CEO, this grant was approved by shareholders at the 2023 Annual
General Meeting. The Rights are subject to personal behavioural, performance gateways, and corporate
performance conditions based on TSR and EPS growth over a three-year vesting period ending on 30 June 2026.
Shareholders will be asked to approve another LTI award for the CEO at this year’s annual general meeting.
The Board believes this Remuneration Report will assist our shareholders and other stakeholders to understand our
remuneration policy, objectives and practices. We are committed to engaging with you and welcome your
feedback.
Yours faithfully
Davyd Lewis
Chair of the Remuneration Committee
13 August 2024
43 | netwealth Annual Report 2024 For the year ended 30 June 2024
Contents
A.
Introduction
B.
Remuneration Objectives
C.
Remuneration Governance
D.
Remuneration Framework
E.
Remuneration Mix of KMPs
F.
Overview of the Group Performance
G.
Executive Remuneration
H.
Non-Executive Directors Remuneration
I.
Other Information
J.
Previous Comments or Resolutions in Relation to Remuneration Report
A. Introduction
This FY2024 Remuneration Report for Netwealth is prepared in accordance with the requirements of the
Corporations Act 2001 and its regulations. The report outlines the remuneration arrangements in place for the Key
Management Personnel (KMP) of Netwealth. KMP are the individuals who have authority and responsibility for
planning, directing and controlling the activities of Netwealth, as defined under AASB 124 Related Party Disclosure.
The following table lists Netwealth’s KMP for FY2024:
Name
Position
Non-Executive Directors
Timothy Antonie
Independent Non-Executive Chair
Davyd Lewis
Independent Non-Executive Director
Sally Freeman
Independent Non-Executive Director
Kate Temby
Independent Non-Executive Director
Sarah Brennan*
Independent Non-Executive Director
Executive Directors
Matthew Heine
Chief Executive Officer & Managing Director (CEO)
Michael Heine#
Executive Director
Senior Executive
Grant Boyle
Chief Financial Officer (CFO) & Joint Company Secretary
* Sarah Brennan was appointed as Non-Executive Director on 28 February 2024.
# Michael Heine transitioned from Executive Director to Non-Executive Director from 29 June 2024. For the purpose of the Remuneration Report,
Michael Heine is disclosed as an Executive Director.
Except for Sarah Brennan, all other KMP held office for the full year.
44 | netwealth Annual Report 2024 For the year ended 30 June 2024
B. Remuneration Objectives
The Board is committed to a remuneration framework that aligns employees’ performance and remuneration
outcomes to Netwealth’s business plan, strategic objectives and risk management. Netwealth’s objectives in
relation to employees’ remuneration include the following:
•
frameworks must comply with applicable legal requirements;
•
remuneration frameworks are designed to align with the achievement of Netwealth’s strategic objective over
the short, medium and long-term;
•
remuneration is designed to promote and reward individual and company performance whilst also supporting
the prevention and mitigation of conduct risk, the effective management of both financial and non-financial
risks and the protection of the interests of Netwealth’s stakeholders;
•
remuneration structure is to be consistent with and promote behaviour aligned to Netwealth’s values;
•
remuneration is set at a fair, reasonable and consistent level in order to attract and retain top talent and
balance market and community expectations; and
•
remuneration is not biased towards gender or other inappropriate personal attribute.
Netwealth’s objectives for remuneration of Non-Executive Directors include:
•
remuneration must be sufficient to attract and retain high quality Non-Executive Directors;
•
remuneration for Non-Executive Directors must not create a conflict with their obligation to bring an
independent judgement to matters before the Board;
•
remuneration for each Non-Executive Director should be appropriate based on their role and responsibilities,
including the time commitment involved; and
•
remuneration is not biased towards gender or other inappropriate personal attribute.
C. Remuneration Governance
The Board is responsible for establishing Netwealth’s remuneration policy (the Remuneration Policy) and
determining Non-Executive Director remuneration, Senior Executive remuneration and Netwealth’s incentive
structures. The Board is assisted by the Remuneration Committee (the Committee). The Committee is comprised
of Netwealth’s four independent Non-Executive Directors. The Committee’s responsibilities include:
•
reviewing and making recommendations to the Board on the remuneration framework and Remuneration
Policy;
•
annually reviewing the performance of the CEO and the CEO’s direct reports;
•
determining whether the CEO has met the conditions for payment of STIs and LTIs under the terms of his
contract and/or under the terms of relevant STI and LTI schemes;
•
annually reviewing and recommending remuneration arrangements for the CEO, the CEO’s direct reports,
other persons determined by APRA to be ‘responsible persons’ and the Non-Executive Directors;
•
approving remuneration packages over a threshold amount;
•
approving major changes in remuneration-related policies;
•
reviewing and recommending changes and developments in relation to the STI and LTI schemes;
•
overseeing the operation of the LTI schemes and recommending whether offers are to be made under the
schemes;
•
reviewing and recommending bonuses, including bonuses for other employees, bonuses for sales and
distribution staff and STIs for senior executives;
•
reviewing and making recommendations on remuneration by gender and addressing any pay gap;
•
reviewing and recommending changes to board remuneration;
•
reviewing and recommending the Remuneration Report;
45 | netwealth Annual Report 2024 For the year ended 30 June 2024
•
consulting with the Chief Risk Officer on risk gateway measures and outcomes;
•
ensuring remuneration for Non-Executive Directors does not create a conflict with their obligations; and
•
where applicable, approving the appointment of remuneration advisers for the purposes of the Corporations
Act.
D. Remuneration Framework
The Board reviews the structure and the effectiveness of Netwealth’s remuneration arrangements annually to
ensure the alignment with business performance, values and strategy. The Board monitors changing market
conditions as well as any regulatory and corporate governance developments and alters remuneration
arrangements if appropriate to respond to changing conditions. The remuneration framework is structured to use
fixed remuneration, a cash bonus pool, STIs and LTIs to promote the effective management of both financial and
non-financial strategies and risk management.
Purpose of each remuneration component in promoting Netwealth’s performance
Fixed remuneration
STIs and bonus pool (at risk)
LTIs (at risk)
•
Attract and retain high-quality
employees, who will enable
Netwealth to achieve its
strategic objectives, by providing
market competitive base
remuneration commensurate
with the employee’s individual
skills, complexity of role and
experience.
•
STIs reward senior executives for
their role in achieving earnings
growth, the effective execution
of Netwealth’s business plan
and achievement of financial
targets, consistent with the
promotion of Netwealth’s ethics,
values and controls.
•
STIs reward sales and
distribution staff for net sales
performance.
•
A bonus pool, the size of which
is based on Netwealth’s financial
performance, is allocated to staff
at all levels as a reward for
superior personal performance
that has contributed to
Netwealth’s success.
•
Motivate and reward senior
executives for their role in
achieving earnings growth and
contributing to the effective
execution of Netwealth’s
business plan consistent with
the Board’s risk appetite, the
protection of the interests of all
of Netwealth’s stakeholders and
the promotion of Netwealth’s
ethics, values and controls.
•
Motivate and reward employees
for their role in achieving
earnings growth while
promoting Netwealth’s ethics,
values and controls.
46 | netwealth Annual Report 2024 For the year ended 30 June 2024
The table below summarises the elements of Netwealth’s remuneration framework in FY2024.
Fixed remuneration
Fixed
Each employee’s fixed remuneration is set having regard to their individual responsibilities, skills and
experience and with consideration to the remuneration paid to employees of comparable companies,
particularly companies within the financial services industry. To be market competitive remuneration,
roles are benchmarked at least annually with reference to peer companies within the industry.
Remuneration reviews normally occur annually and apply from 1 July.
Performance-based remuneration
STIs
Purpose & Execution
FY2024 Outcomes
STIs for CEO
(At risk)
Maximum target amount
•
75% of fixed remuneration
Form and time of payment
•
Cash bonus – STI earnt is paid over 2 years:
‒
50% within 30 days after the release of the FY2024 annual
report; and
‒
50% within 30 days after the release of the FY2025 annual
report, subject to continuously being employed and subject to
a malus clawback condition.
Gateway conditions
•
Achieve rating of ‘Aligned’ or above for personal behaviour and
performance measured against our values.
•
Netwealth must achieve at least 95% of budget NPAT.
•
93.2% of maximum target
amount was achieved.
Performance metrics
Weighting
% Outcomes
NPAT metric
•
Based on Netwealth’s FY2024 NPAT relative to budget NPAT.
•
Between 95% and 105% of budget, a proportionate amount is paid.
•
NPAT is determined net of the bonus expense.
65%
65%
Contribution to effective execution of business plan metric
•
Based on individual contribution to effective execution of Board
approved annual strategic initiatives in FY2024 which are assessed by
the Board on a quarterly basis.
25%
18.2%
Individual values rating metric
•
Based on individual values ratings in FY2024.
10%
10.0%
47 | netwealth Annual Report 2024 For the year ended 30 June 2024
STIs for CFO
and other
members of
the
Executive
Leadership
Team who
report to the
CEO
(Executive)
(At risk)
Maximum target amount
•
35% of fixed remuneration
Form and time of payment
•
Cash bonus – STI earnt is paid over 2 years:50% within 30 days after
the release of the FY2024 annual report; and
‒
50% within 30 days after the release of the FY2025 annual
report, subject to continuously being employed and subject to
a malus clawback condition.
Gateway conditions
•
Achieve rating of ‘Aligned’ or above for personal behaviour and
performance measured against our values.
•
Netwealth must achieve at least 95% of budget NPAT.
This does not apply to the GM Sales & Distribution who instead receives a
sales target based STI – see below.
•
For the CFO, 90.7% of
maximum target amount
was achieved.
•
Michael Heine waived his
STI payments for FY2024.
Performance metrics
Weighting
% Outcomes
NPAT metric
•
Based on Netwealth’s FY2024 NPAT relative to budget NPAT.
•
Between 95% and 105% of budget, a proportionate amount is paid.
•
NPAT is determined net of the bonus expense.
For the Chief Risk, Legal, and Governance Officer (CRLGO), the NPAT
metric does not apply and is replaced by a metric based on the Board’s
assessment of the CRLGO’s contribution to the effective management
of Netwealth’s legal, risk and compliance functions in FY2024 which are
assessed by the Board on a quarterly basis.
65%
For the CFO, 65%
was achieved
Contribution to effective execution of business plan metric
•
Based on individual contribution to effective execution of board
approved annual strategic initiatives in FY2024 which are assessed by
the Board on a quarterly basis.
25%
For the CFO,
18.2% was
achieved.
Individual values rating metric
•
Based on individual values ratings in FY2024.
10%
For the CFO,
7.5% was
achieved
STIs for
Sales and
Distribution
staff (At risk)
For sales and distribution staff, STIs are cash bonuses based on pre-agreed performance targets. Part of
each individual’s STI is payable based on the first 6 months’ performance and the balance is payable
after the end of the financial year. The performance targets are based mainly on fee-earning FUA and
FUM.
Cash pool
bonus for
other
employees
•
Netwealth has a bonus pool arrangement. The size of the pool was based on Netwealth’s financial
performance in FY2024.
•
From the bonus pool, individual bonuses were determined based on the employee’s performance rating.
The employee must be currently employed (or on approved leave) at the time of the payment.
48 | netwealth Annual Report 2024 For the year ended 30 June 2024
LTIs
Purpose & Execution
FY2024 position
Options
(At risk)
Offers of options
•
The Netwealth Employee Incentive Plan (NEIP), under which all
LTIs are offered, provides that incentive securities may be in the
form of options.
•
To date there have been two offers of options under NEIP,
referred to here as the ‘FY2020 Options’ and the ‘FY2022
Options’.
Vesting Period
•
The vesting conditions are tested over a 3 financial year vesting
period.
•
Upon exercise, the options convert to ordinary shares on a one
for one basis.
Gateway conditions
•
The holder must be either continuously employed or hold office
with Netwealth until the vesting date.
•
The options are subject to a ‘gateway’ condition based on
personal behaviour and performance measured against our
values.
•
If the employee does not meet the personal and behavioural
gateway condition, all their options lapse, unless the Board
determines otherwise.
Conditions
•
Options must be exercised within 15 years of date of grant.
•
Options do not confer the right to attend and vote at meetings,
and do not confer the right to participate in dividends.
•
Should a liquidity event or change of control event occur, the
Board has a discretion to automatically exercise all vested and
unvested options.
•
Options held by senior executives and the CEO have corporate
performance metrics – see below. Options held by others are
not subject to the corporate performance metrics.
FY2020 Options
•
An offer of options was made to
selected senior and key employees
in FY2020.
•
The exercise price of the FY2020
Options is $7.5544.
•
The FY2020 Options vested on 30
June 2022.
•
For KMPs, 117,632 FY2020 Options
vested and are outstanding at 30
June 2024.
FY2022 Options
•
An offer of options was made to
selected senior and key employees
in FY2022.
•
The exercise price of the FY2022
Options is $15.74.
•
The FY2022 Options vested on 30
June 2024.
•
For KMP’s 150,000 FY2022 Options
vested and are outstanding as at 30
June 2024.
Current Year
•
There were no new options issued
during FY2024.
Corporate performance metrics
Weighting
% Outcome on FY2022 Option
TSR Metric
•
Subject to Netwealth’s TSR Ranking in the S&P/ASX 300
Diversified Financials over the Vesting Period calculated on a
proportionate basis, where:
‒
0% of the options will vest if TSR ranking is below the
50th percentile
‒
The full 50% of the TSR vesting condition will vest if TSR
ranking is at or above 75th percentile.
50%
50%
Netwealth ranked 7th out of
27 companies and ranked
above the 75th percentile
EPS Metric
•
Subject to simple average EPS annual growth over the Vesting
Period calculated on a proportionate basis, where:
‒
0% of options vest if simple average EPS growth rate is
12.5% or less
‒
The full 50% of options vest if simple average EPS growth
rate is 15.0% or more.
50%
50%
Netwealth achieved
average EPS growth of
16.6%
49 | netwealth Annual Report 2024 For the year ended 30 June 2024
Rights for
previous
periods
(At risk)
Offers of rights
•
The NEIP also provides that incentive securities may be in the
form of rights (zero exercise price options).
•
To date there have been two offers of rights under the NEIP,
referred to here as the ‘FY2022 Rights’ and the ‘FY2023 Rights’
Maximum target amount
•
CEO - 50% of fixed remuneration.
•
Senior executives – 25% of fixed remuneration.
•
Target amount is based on value of shares at the time of issue.
Vesting Period
•
The vesting conditions are tested over 3 financial years.
•
Upon exercise, the rights convert to ordinary shares on a one
for one basis.
Gateway conditions
•
The holder must be either continuously employed or hold
office with Netwealth until vesting date.
•
The Rights are subject to a ‘gateway’ condition based on
personal behaviour and performance measured against our
values.
•
If the employee does not meet the personal and behavioural
gateway condition, all their rights lapse, unless the Board
determines otherwise.
FY2022 Rights
•
Performance rights issued to the
CEO and members of the Executive
in FY2022 vested on 30 June 2024.
•
KMP’s 27,899 FY2022 Rights vested
and are outstanding as at 30 June
2024.
FY2023 Rights
•
Performance rights issued to the
CEO and members of the Executive
in FY2023 that will potentially vest
on 30 June 2025.
Performance metrics
Weighting
% Outcome on FY2022 Rights
EPS metric
•
Subject to Netwealth’s simple average EPS annual growth over
the vesting period calculated on a proportionate basis.
•
For FY2022 Rights;
‒
0% of options vest if simple average EPS growth rate is
12.5% or less
‒
The full 50% of options vest if simple average EPS
growth rate is 15.0% or more.
50%
CEO: 50%
CFO: 50%
Netwealth achieved
average EPS growth of
16.6%
Individual value rating metric
•
Based on individual ratings over the vesting period.
25%
CEO: 25%
CEO achieved average
100% for all 3 financial
years.
CFO: 22.9%
CFO achieved average
91.7% for all 3 financial
years.
Contribution to effective execution of business plan metric
•
Based on individual contribution to effective execution of the
Board approved business plans over the vesting period.
25%
CEO: 17.9%
CFO: 17.9%
Achieved average 71.6% for
all 3 financial years.
50 | netwealth Annual Report 2024 For the year ended 30 June 2024
Rights for
FY2024 (At
risk)
Offers of rights
•
There was one offer of rights under the revised NEIP in FY2024,
referred to here as the ‘FY2024 Rights’
Maximum target amount
•
CEO - 75% of fixed remuneration.
•
Senior executives – 35% of fixed remuneration.
•
Target amount is based on value of shares at the time of issue.
Vesting Period
•
The vesting conditions are tested over 3 financial years.
•
Upon exercise, the rights convert to ordinary shares on a one for
one basis.
Gateway conditions
•
The holder must be either continuously employed or hold office
with Netwealth until vesting date.
•
The Rights are subject to a ‘gateway’ condition based on personal
behaviour and performance measured against our values.
•
If the employee does not meet the personal and behavioural
gateway condition, all their rights lapse, unless the Board
determines otherwise.
FY2024 Rights
•
Performance rights issued
to CEO and members of the
Executive in FY2024 Rights
that will potentially vest on
30 June 2026.
Performance metrics
Weighting
EPS metric
•
Based on Netwealth’s EPS compound annual growth rate (CAGR) over the vesting
period.
35%
TSR metric
•
Based on Netwealth’s TSR Rank in the relevant comparator group (S&P/ASX 300
Diversified Financials Index) over the Vesting Period.
•
Between 50th percentile and 75th percentile, a proportionate amount of rights vest.
•
TSR must be positive for rights to vest under this metric.
35%
Contribution to effective execution of business plan metric
•
Based on individual contribution to effective execution of the Board approved
business plan over the vesting period which is assessed by the Board quarterly.
30%
Reduction of
benefits
•
Under the NEIP, the Board may reduce benefits in a range of circumstances such as where an
employee participant has acted fraudulently or dishonestly or engaged in gross misconduct, has
brought Netwealth into disrepute, has breached their duties or obligations to Netwealth or is
convicted of an offence in connection with the affairs of Netwealth.
•
The reduction of benefits may be implemented through various means, including the forfeiture of
unvested or vested rights, options, or shares. Additionally, participants may be required to repay or
treat as a debt any dividends received on, or proceeds from the sale of, performance securities
granted under the NEIP.
51 | netwealth Annual Report 2024 For the year ended 30 June 2024
Effective from 1 July 2024 the Board has revised part of the STI and LTI framework. The changes relevant to KMPs
are:
Performance-based remuneration
STIs
Purpose & Execution
STIs for
FY2025
(At risk)
Maximum target amount
•
CEO: 80% of fixed remuneration (previously 75%);
•
CFO: no change (35% of fixed remuneration):
Form and time of payment
Cash bonus – STI earnt is paid over 2 years (subject to continuously being employed and subject to a
malus clawback condition):
‒
50% within 30 days after the release of the FY2025 annual report; and
‒
50% within 30 days after the release of the FY2026 annual report.
LTIs
Purpose & Execution
Rights for
FY2025 (At
risk)
Maximum target amount
•
CEO: 120% of fixed remuneration (previously 75%);
•
CFO: no change (35% of fixed remuneration)
Form of payment
•
Performance rights (zero exercise price options) valued based on the market value of shares at the time
of offer.
Vesting Period
•
The vesting conditions are tested over 3 financial years, FY2025, FY2026 and FY2027;
Gateway conditions
•
The holder must be either continuously employed or hold office with Netwealth until vesting date.
•
The Rights are subject to a ‘gateway’ condition based on personal behaviour and performance measured
against our values.
•
If the holder does not meet the personal and behavioural gateway condition, all their rights lapse, unless
the Board determines otherwise.
Performance Metrics
•
For reasons of commercial confidentiality, the specific EPS targets will be disclosed in arrears in the FY27
Remuneration Report
Deferral of vesting
•
A proportion of the holder’s Rights (the Deferred Rights) are subject to deferral of vesting based on the
Board’s assessment of the proportion of holder’s duties and responsibilities that is related to Netwealth
Superannuation Services Pty Ltd as an APRA-related registerable superannuation entity.
•
The deferral is required because of the deferral of performance-based remuneration requirements of
CPS 511 and, in future, FAR.
For the CEO:
‒
One third of the Deferred Rights will vest after FY2028;
‒
One third of the Deferred Rights will vest after FY2029;
‒
One third of the Deferred Rights will vest after FY2030.
For the CFO:
‒
One half of the Deferred Rights will vest after FY2028;
‒
One half of the Deferred Rights will vest after FY2029.
52 | netwealth Annual Report 2024 For the year ended 30 June 2024
E. Remuneration Mix of KMPs
Remuneration mix refers to the proportion of total KMP remuneration that is made up of each remuneration
component. The ‘Fixed’ component is base salary plus superannuation. The ‘At Risk’ component is the amount of
the maximum STI payable to the KMP and the value of the LTIs options and rights issued to the KMP expensed for
the year.
CEO
Matthew
Heine
ED
Michael
Heine
CFO
Grant Boyle
The remuneration mix for Michael Heine is 100% fixed as he has elected not to participate in the STI or LTI, due to
his substantial shareholding in Netwealth.
F. Overview of the Group Performance
The following table sets out Netwealth’s NPAT, dividend payments, EPS and share price over five years:
Financial period ended 30 June
2024
2023
2022
2021
2020
NPAT ($ million)
83,370
67,153
55,552
54,103
43,661
Ordinary dividends (cents per share)
28.0
24.0
20.0
18.6
14.7
EPS (cents)
34.2
27.5
22.8
22.6
18.4
Netwealth share price*
$22.17
$13.84
$12.16
$17.15
$8.97
*Closing price for the last trading day in the financial year. Dividends (cents per share) and EPS (cents) rounded to 1 decimal place.
Netwealth delivered strong FY2024 NPAT and EPS growth of 24.2% and 24.4% respectively compared to the prior
year. Netwealth increased its full year dividend by 16.7% to 28.0 cents per share. The compound annual growth rate
on EPS since FY2020 was 16.8% reflecting the continued success in executing Netwealth’s long-term strategy in
delivering sustainable increasing returns to its shareholders.
53 | netwealth Annual Report 2024 For the year ended 30 June 2024
G. Executive Remuneration
The table below sets out details of the remuneration of the CEO, ED and the CFO (the three KMP who are employee
executives) for FY2024 and FY2023.
CEO & Managing
Director
Executive Director
CFO
Matthew Heine
Michael Heine7
Grant Boyle
Total
2024
2023
2024
2023
2024
2023
2024
2023
$
$
$
$
$
$
$
$
Short term benefits:
Cash salary1
820,759
772,500
46,741
44,207
497,500
422,500
1,365,000
1,239,207
STI2
594,150
344,900
-
-
166,662
97,003
760,812
441,903
Employee share gift3
-
-
-
-
996
992
996
992
Other
-
-
-
-
-
-
-
-
Long term benefits:
Leave4
(46,516)
29,377
4,737
770
(13,611)
11,342
(55,390)
41,489
Post-employment
benefits:
Superannuation5
27,500
27,500
5,142
4,642
27,500
27,500
60,142
59,642
Share-based payments:
FY2022 Options6
105,369
112,925
-
-
64,995
69,463
170,364
182,388
FY2022 Rights6
129,934
129,579
-
-
29,183
29,103
159,117
158,682
FY2023 Rights6
118,847
118,521
-
-
31,661
28,340
150,508
146,861
FY2024 Rights
158,186
-
-
-
-
-
158,186
-
Termination benefits:
Termination payments
-
-
-
-
-
-
-
-
Total
1,908,229
1,535,302
56,620
49,619
804,886
686,243
2,769,735
2,271,164
% Performance related
58%
46%
0%
0%
36%
33%
51%
41%
1.
Following the Remuneration Committee’s review, the Board approved increases in Matthew Heine’s and Grant Boyle’s cash salaries to better align with
comparable companies.
2.
Matthew Heine’s maximum STI and LTI entitlements were each 75% of his fixed remuneration for FY24 (refer section D). Michael Heine waived his STI
payments for FY2023 and FY2024. Grant Boyle’s maximum STI and LTI entitlements were each 35% of his fixed remuneration for FY24 (refer section D).
3.
Under its Employee Gift Plan, Netwealth made an offer to grant $1,000 worth of ordinary shares to all eligible employees including Grant Boyle.
4.
Long term benefits related to annual leave and long service leave entitlements accrued for the year, net of leave taken.
5.
Superannuation payments are made in accordance with the relevant statutory requirements.
6.
Options or Rights on ordinary shares issued during FY2022, FY2023 and FY2024 are subject to vesting conditions (refer section D).
7.
Michael Heine transitioned from Executive Director to Non-Executive Director at the end of the FY24 financial year
54 | netwealth Annual Report 2024 For the year ended 30 June 2024
Service agreements
The remuneration and other terms of employment for the executive KMPs are formalised in employment contracts,
which are reviewed annually. The CEO, ED and CFO are entitled to receive pay in lieu of notice of resignation, in
addition to any leave entitlements upon cessation of employment. All services agreements are for unlimited
duration but may be terminated immediately in the event of serious misconduct, in which case the executive is not
entitled to any payment in lieu of notice. The following table outlines the key contractual arrangement for the CEO,
ED and CFO.
Position
Contractual
term
Employer Notice
period
Employee Notice
period
Post-employment
restraints
CEO
Ongoing
Six months
Six months
Twelve-month non-
competition period
ED
Ongoing
Six months
Six months
Twelve-month non-
competition period
CFO
Ongoing
Six months
Six months
Twelve-month non-
competition period
How unvested equity is
treated on leaving
Netwealth
Executive KMPs who resign or are terminated will forfeit all their unvested equity, unless
the Board determines otherwise.
If the executive KMP is terminated due to redundancy or they are classified as a ‘good
leaver’, unvested equity will not be forfeited unless the Board determines otherwise.
On an executive KMP’s death or total and permanent disability, their unvested equity
will vest unless the Board determines otherwise.
H. Non-Executive Directors Remuneration
The table below sets out details of the annual fees and the remuneration of the Non-Executive Directors for FY2024.
Board Fees
Board - Chair
$350,000
- Members
$155,000
Netwealth Superannuation Services (NSS) Board1 – Members
$20,0001
Audit Committee - Chair
$20,000
Remuneration Committee - Chair
$15,000
Compliance and Risk Management Committee - Chair
$20,000
People and Corporate Sustainability Committee – Chair
$10,000
Nomination Committee - Chair
-
NIL Investment Committee - Chair
$15,000
NSS Audit Risk & Compliance Committee – Chair
$15,000
55 | netwealth Annual Report 2024 For the year ended 30 June 2024
Superannuation
The fees set out above include superannuation payment in accordance with the relevant
statutory requirements. Superannuation is paid up to the relevant concessional contributions
cap, with the remainder paid in cash.
Other benefits
Non-Executive Directors are entitled to reimbursement for business-related expenses,
including travel expenses and all receive the benefit of coverage under a Director and Officers
insurance policy. Netwealth has paid premiums to insure each Director and officer under a
Directors and Officers Insurance policy. Further disclosure of information relating to this
policy is not permitted under the contract of insurance.
1 NSS, a subsidiary of NWL is the trustee of Netwealth Superannuation Master Fund. Directors of NWL who also serve on the NSS board receive an
annual fee of $20,000.
The table below sets out the total Non-Executive Director benefits paid for FY2024 and FY2023.
Fees and allowances
Post-employment
benefits
Board and
Committee fees
$
Superannuation
$
Total
$
Timothy Antonie
2024
321,096
28,904
350,000
2023
226,244
23,756
250,000
Davyd Lewis1
2024
217,703
23,947
241,650
2023
191,538
20,112
211,650
Sally Freeman2
2024
175,676
19,324
195,000
2023
149,321
15,679
165,000
Kate Temby
2024
162,162
17,838
180,000
2023
135,747
14,253
150,000
Sarah Brennan3
2024
53,765
5,914
59,680
2023
-
-
-
1Davyd Lewis received an additional $16,650 for his temporary appointment to the NIL Due Diligence Committee in FY2023 and FY2024. Davyd
resigned as a director of NSS on 30 June 2024.
2Sally Freeman is a current director of NSS.
3Sarah Brennan was appointed as a director of NWL and NSS on 28 February 2024 and received fees on pro-rata basis.
The Non-Executive Directors are not eligible to participate in the NEIP.
The total remuneration for all Non-Executive Directors must not exceed the maximum aggregate amount approved
by shareholders. The limit is currently $1.3 million, approved at the FY2023 AGM.
56 | netwealth Annual Report 2024 For the year ended 30 June 2024
I.
Other information
KMP share movements
The table below sets out the holdings and changes of holdings of ordinary shares for each KMP in FY2024.
Ordinary shares
Balance at
beginning of
financial
period
Purchase of
shares
Sale of shares
Other changes
during the year
Balance at end of
financial period
FY2024
Number
Number
Number
Number
Number
Non-Executive Directors
Timothy Antonie
105,000
-
(45,000)
-
60,000
Davyd Lewis
159,161
-
(25,453)
-
133,708
Sally Freeman
9,500
-
-
-
9,500
Kate Temby
3,000
3,000
-
-
6,000
Sarah Brennan2
-
-
-
-
-
Executive Directors
Michael Heine3
106,944,990
-
(4,800,000)
-
102,144,989
Matthew Heine
3,736,405
-
-
-
3,736,405
Senior executive
Grant Boyle1
65,164
-
(65,000)
69
233
1 During the financial year, the Group, under its Employee Gift Plan made an offer to all eligible employees including Grant Boyle to
grant $1,000 worth of ordinary shares.
2 Sarah Brennan was appointed as Non-Executive Director on 28 February 2024.
3 Michael Heine transitioned from Executive Director to Non-Executive Director at the end of FY2024.
57 | netwealth Annual Report 2024 For the year ended 30 June 2024
KMP option and rights holdings
The table below sets out the holdings of options and rights issued under the NEIP to each KMP.
Type of
equity
Balance at
1 July 2023
Equity
granted
during the
year
Lapsed/
Forfeited
Exercised/
Sold
Balance at
30 June
2024
Vested
during the
year
Vested
as at 30
June
2024
Vested and
exercisable
Vested but
non-
exercisable
FY2024
Number
Number
Number
Number
Number
Number
Number
Number
Number
Executive Directors
Michael
Heine
Options/
Rights
-
-
-
-
-
-
-
-
-
Matthew
Heine
FY2020
Options
78,232
-
-
-
78,232
-
78,232
78,232
-
FY2022
Options
75,000
-
-
-
75,000
75,000
75,000
75,000
-
FY2022
Rights
23,825
-
(1,693)
-
22,132
22,132
22,132
22,132
-
FY2023
Rights
30,257
-
-
-
30,257
-
-
-
-
FY2024
Rights
-
41,450*
-
-
41,450
-
-
-
-
Senior executive
Grant
Boyle
FY2020
Options
39,400
-
-
-
39,400
-
39,400
39,400
-
FY2022
Options
75,000
-
-
-
75,000
75,000
75,000
75,000
-
FY2022
Rights
6,353
-
(586)
-
5,767
5,767
5,767
5,767
-
FY2023
Rights
8,510
-
-
-
8,510
-
-
-
-
FY2024
Rights
-
11,947#
-
-
11,947
-
-
-
-
* Equity fair value at grant date of 22/11/2023 was $13.47.
# Equity fair value at grant date of 15/09/2023 was $14.31.
Non-Executive Directors are not entitled to options and rights under the NEIP.
Employee Share Gift Plan
Under the Group’s Employee Gift Plan, all eligible permanent and part time employees of the Group may be offered the
opportunity to receive, for no consideration, up to $1,000 in shares at market value. Employees who receive employee
gift shares are restricted from dealing in those shares until the earlier of three years from grant date or the date the
employees ceases employment. The operation of this plan is assessed annually by the Board.
During FY2024, the Group made offers under its Employee Gift Plan to grant $1,000 worth of shares to all eligible
permanent and part time employees that have been employed by the Group for a continuous period of 3 years as at 1
July 2023, resulting in 14,697 new ordinary shares being issued at $14.49 on 26 October 2023 (FY2023: 13,950 ordinary
shares).
58 | netwealth Annual Report 2024 For the year ended 30 June 2024
Overview of unvested equity awards
All awards are subjected to the employee’s continued employment, individual values ratings and malus and
clawback provisions.
Vesting Period
Equity plan
Grant Date
Start
Date
End Date
Vesting Conditions
FY2023 Rights
11 Oct 2022
01 Jul
2022
30 Jun 2025
•
Personal and behavioural performance gateway
which must be met.
Proportions vesting:
‒
50% based on Netwealth’s EPS growth over
the vesting period.
‒
25% based on individual values ratings.
‒
25% based on individual contribution to
delivery of their strategic initiatives.
FY2023 Rights - CEO
23 Nov 2022
01 Jul
2022
30 Jun 2025
Same as above FY2023 Rights
FY2024 Rights
28 Sep 2023
01 Jul
2023
30 Jun 2026
•
Personal and behavioural performance gateway
which must be met.
Proportions vesting:
‒
35% based on Netwealth’s EPS growth over
the vesting period.
‒
35% based on Netwealth’s TSR Rank in the
relevant comparator group during the vesting
period; and
‒
30% based on effective execution of business
plan.
FY2024 Rights - CEO
22 Nov 2023
01 Jul
2023
30 Jun 2026
Same as above FY2024 Rights
J. Remuneration consultant
During the year, the Board engaged an external adviser, KPMG, to review and make recommendations in relation to
the remuneration framework for senior executives so as to comply with upcoming regulatory requirements,
specifically FAR and CPS511. KPMG provided recommendations on the design elements which included
participation, reward mix, deferral periods and performance measures necessary to meet these regulatory
requirements. The Board considered the recommendations and made changes to the remuneration framework for
senior executives, with implementation from FY2025 onwards.
The Board is satisfied that the remuneration framework recommendations were made free from undue influence by
the KMP to whom the recommendations relate, as they had minimal involvement in the remuneration framework
review.
KPMG were paid $34,000 for their remuneration framework review. During the year, KPMG provided other
consulting services in relation to taxation, totalling $35,000.
K. Previous comments or resolutions in relation to Remuneration Report
At the 22 November 2023 annual general meeting, no comments were made or questions asked in relation to the
FY2023 Remuneration Report and the Remuneration Report was adopted by a vote of 98% in favour.
59 | netwealth Annual Report 2024 For the year ended 30 June 2024
Auditor’s Independence Declaration
60 | netwealth Annual Report 2024 For the year ended 30 June 2024
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the year ended 30 June 2024.
Consolidated Group for Year
Ended
Note
30 June 2024
$’000
30 June 2023
$’000
Income
Revenue1
4
249,526
211,490
Other income1
4
5,722
3,259
Total income
255,248
214,749
Expenses
Employee benefits expenses
5
(90,268)
(77,886)
Share-based payment expense
(3,002)
(2,381)
Brokerage, investment & custody
(4,565)
(4,567)
Technology and communication expenses
(15,791)
(13,689)
Client transactions & communication
(1,612)
(1,419)
Professional fees
(3,256)
(3,158)
Insurance
(3,286)
(3,028)
Advertising & Marketing
(3,068)
(2,835)
Depreciation
(2,732)
(2,637)
Amortisation
(924)
(642)
Interest expense
13
(572)
(451)
Other operating expenses
5
(5,454)
(4,665)
Share of joint venture NPAT
(269)
(377)
Total expenses
(134,799)
(117,735)
Profit before income tax
120,449
97,014
Income tax expense
6
(37,079)
(29,861)
Profit for the period
83,370
67,153
Total comprehensive income for the period
83,370
67,153
Total comprehensive income attributable to:
Members of the parent entity
83,370
67,153
Earnings per share
Basic (cents per share)
9
34.2
27.5
Diluted (cents per share)
9
34.1
27. 5
1During the year, the Group revised the classification and disclosure of cost of capital recovery. $5.9 million cost of capital recovery has been
presented as Revenue in the current year. Comparative figure of $4.5 million have been reclassified from Other income to Revenue, to be
consistent with current period disclosure. Refer to Note 2 Significant Accounting Policies.
The accompanying notes form part of these financial statements
61 | netwealth Annual Report 2024 For the year ended 30 June 2024
Consolidated Statement of Financial Position
As at 30 June 2024.
Consolidated Group as at
Note
30 June 2024
$’000
30 June 2023
$’000
Assets
Current assets
Cash and cash equivalents
126,676
109,482
Trade and other receivables
10
22,316
17,837
Other current assets
11
8,307
8,569
Financial assets at FVTPL*
12
682
491
Total current assets
157,981
136,379
Non-current assets
Financial Assets at FVTPL*
12
2,200
917
Property, plant and equipment
15
1,545
1,445
Intangible assets
16
9,644
6,506
Lease assets
13
13,741
12,830
Investment in joint venture
14
1,345
1,614
Deferred tax assets
6
3,030
2,194
Total non-current assets
31,505
25,506
Total assets
189,486
161,885
Current liabilities
Trade and other payables
17
14,223
11,804
Provisions
18
8,664
7,439
Current tax liabilities
6,132
4,978
Lease liability
13
1,773
1,437
Other current liabilities
36
83
Total current liabilities
30,828
25,741
Non-current liabilities
Lease liability
13
13,142
12,149
Provisions
18
996
946
Total non-current liabilities
14,138
13,095
Total liabilities
44,966
38,836
Net assets
144,520
123,049
Equity
Issued capital
19
28,381
27,228
Reserves
20
9,591
6,772
Retained earnings
106,548
89,049
Total equity
144,520
123,049
*Fair value through Profit & Loss
The accompanying notes form part of these financial statements
62 | netwealth Annual Report 2024 For the year ended 30 June 2024
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024.
Consolidated Group
Note
Issued
capital
$’000
Reserves
$’000
Retained
earnings
$’000
Total
$’000
Balance at 1 July 2022
26,563
4,576
73,104
104,243
Shares issued and fully paid during the period
665
-
-
665
Total comprehensive income for the period
-
-
67,153
67,153
Equity-settled share-based payments
-
2,196
-
2,196
Dividends paid
8
-
-
(51,208)
(51,208)
Balance at 30 June 2023
27,228
6,772
89,049
123,049
Balance at 1 July 2023
27,228
6,772
89,049
123,049
Shares issued and fully paid during the period
1,153
-
-
1,153
Total comprehensive income for the period
-
-
83,370
83,370
Equity-settled share-based payments
-
2,819
-
2,819
Dividends paid
8
-
-
(65,871)
(65,871)
Balance at 30 June 2024
28,381
9,591
106,548
144,520
The accompanying notes form part of these financial statements.
63 | netwealth Annual Report 2024 For the year ended 30 June 2024
Consolidated Statement of Cash Flows
For the year ended 30 June 2024.
Consolidated Group for Year Ended
Note
30 June 2024
$’000
30 June 2023
$’000
Cash flows from operating activities
Receipts from customers
258,061
223,412
Payments to suppliers and employees
(136,372)
(120,302)
Dividends received
18
29
Interest received
5,606
3,123
Interest paid on leases
(573)
(451)
Income tax paid
(36,761)
(26,585)
Net cash generated by operating activities
25
89,979
79,226
Cash flows from investing activities
Purchase of property, plant and equipment
(846)
(709)
Proceeds from sale of investments
589
1,177
Purchase of investments
(789)
(526)
Purchase of intangibles
16
(4,062)
(4,932)
Net cash used in investing activities
(5,106)
(4,990)
Cash flows from financing activities
Proceeds from issue of shares
19
970
479
Payment of lease liabilities
13
(1,578)
(1,501)
Drawdown of loan to joint venture
(1,200)
(900)
Dividends paid
8
(65,871)
(51,208)
Net cash used in financing activities
(67,679)
(53,130)
Net increase in cash held
17,194
21,106
Cash and cash equivalents at beginning of year
109,482
88,376
Cash and cash equivalents at end of year
126,676
109,482
The accompanying notes form part of these financial statements.
64 | netwealth Annual Report 2024 For the year ended 30 June 2024
Notes to the Financial Statements
1.
General Information
The Financial Report of Netwealth Group Limited which covers ‘the Company’ as an individual entity (disclosed in
Note 26) and its controlled entities (together referred to as ‘the Group’) for the year ended 30 June 2024 as required
by the Corporations Act 2001 was authorised for issue in accordance with a resolution of the Directors on 13 August
2024. The Company is limited by shares and incorporated and domiciled in Australia.
Registered office of the company and principal place of business:
Netwealth Group Limited
Level 6, 180 Flinders Street
MELBOURNE VIC 3000
The principal activities of the Group are to provide Financial Intermediaries and clients with financial services
including managed funds, investor directed portfolio services, a superannuation master fund, separately managed
accounts, self-managed superannuation administration services and non-custodial administration service.
2.
Material Accounting Policies
Basis of preparation
The financial statements for the year ended 30 June 2024:
•
is for the consolidated entity consisting of Netwealth Group Limited and its controlled entities (trading on the
ASX under the symbol ‘NWL’);
•
is presented in Australian dollars, with all values rounded to the nearest thousand dollars, or in certain cases,
the nearest dollar, in accordance with the Australian Securities and Investment Commission Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191;
•
has been prepared on a going concern basis using historical costs except for financial instruments required to
be measured at fair value through profit or loss (FVTPL), in accordance with Australian Accounting Standards
(AASBs) and Interpretations issued by the Australian Accounting Standards Board, and the Corporations Act
2001;
•
complies with International Financial Reporting Standards as issued by the International Accounting Standards
Board; and
•
has accounting policies and methods of computation which are consistent for all periods presented, unless
stated otherwise.
Principles of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled
by the Company and its subsidiaries. Control is achieved when the Company:
•
has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
•
has the ability to use its power to affect its returns.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary.
65 | netwealth Annual Report 2024 For the year ended 30 June 2024
The financial statements of all the entities are prepared for the same reporting period as the parent entity with
consistent accounting policies.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
Adoption of new and revised Standards and Interpretations
The Group has adopted new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board (the AASB) that are relevant to its operations and effective for an accounting period that begins on
or after 1 July 2023. Set out below are the relevant new and revised Standards and Interpretations effective for the
current year for the Group:
AASB 2021 – 2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates (applicable to annual reporting periods beginning on or after 1 January 2023)
From 1 July 2023, AASB 2021-2 has amended:
•
AASB 7 – Financial Instruments: Disclosures
•
AASB 101 – Presentation of Financial Statements
•
AASB 108 – Accounting Policies, Changes in Accounting Estimates and Errors; and
•
AASB 134 – Interim Financial Reporting
Application of the amended standard resulted in changes made to the disclosure of material accounting policy
information, clarifying how entities should distinguish between changes in accounting policies and changes in
accounting estimates.
These changes did not have a material impact on the Group’s consolidated financial statements.
New and revised Australian Accounting Standards and Interpretation on issue but not yet adopted
New and revised Standards and Interpretations issued by the AASB which are not mandatory for the 30 June 2024
reporting period have not yet been applied in these financial standards. The Group’s assessment of the relevant
new Standards and Interpretations are as below:
AASB 2020-1 & AASB 2020-6 Amendments to Australian Accounting Standards – Classification of Liabilities as
Current or Non-current (applicable to annual reporting periods beginning on or after 1 January 2024)
From 1 July 2024, the Group is required to adopt the amendments outlined in AASB 2020-1 & AASB 2020-6
Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-current. As per
the amendment, a liability is classified as a non-current liability if at the end of the reporting period the entity has
the right to defer settlement of the liability for at least twelve months after the end of the reporting period.
The standard above is not expected to have a material impact on Netwealth’s financial results or financial position
following its adoption.
66 | netwealth Annual Report 2024 For the year ended 30 June 2024
Critical accounting estimates and key sources of estimation uncertainty
In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and underlying assumptions are evaluated on an ongoing basis and are based on historical
experience and other factors, including reasonable expectations of future events. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in
the period of the revision and future periods if the revision affects both current and future periods.
The notes to the financial statements highlight areas that involve a higher degree of judgement or complexity, as
well as areas where assumptions are significant to the consolidated financial statements including:
•
The choice of inputs, estimates and assumptions used in measuring expected credit loss, including the
expected loss rates (Note 10).
•
Inputs to measure the fair value of the loan, call and put options in relation to the investment in Xeppo (Note
14).
•
The determination of joint control in joint arrangements involves assessing whether certain rights are
protective or substantive in nature and whether the level of involvement in an investee’s relevant activities
significantly affects the returns generated (Note 14).
•
The assessment of whether the investment in the joint venture is impaired includes evaluating its going
concern status and future profitability (Note 14).
•
The expected life of intangible assets, such as software was assessed using historical usage data of similar
software (Note 16).
•
Determining whether customisation and configuration costs undertaken in implementing Software as a Service
(SaaS) arrangements may result in the development of new software code that meets the definition of and
recognition criteria as an intangible asset (Note 16).
•
Measuring the fair value and estimating the number of equity instruments granted under the Employee
Incentive Plan that are likely to vest at the end of the vesting period by assessing their vesting conditions over
the vesting period (Note 23).
67 | netwealth Annual Report 2024 For the year ended 30 June 2024
Change in Disclosures
During the year, the classification and disclosure of cost of capital recovery on Operational Risk Financial
Requirements (ORFR) has been revised and presented as Revenue from Other Income (refer Note 4 Revenue). This
change was made to provide a more accurate representation of the economic substance and terms of the
contractual arrangements.
To ensure consistency and comparability, comparative figures have been reclassified to align with the current
period disclosure.
FY2023 Financial Report
Reallocation
Post-Reallocation
30 June 2023
$’000
30 June 2023
$’000
Income
Revenue
207,008
4,482
211,490
Other Income
7,741
(4,482)
3,259
Total income
214,749
-
214,749
Investment in Joint Ventures
The accounting treatment for investments in joint ventures adheres to the equity method as outlined in AASB 128
Investments in Associates and Joint Ventures for the group's financial statements. Investments in joint ventures are
initially recognised at cost in the Consolidated Statement of Financial Position. The carrying amount of the
investment is subsequently measured to reflect the Group's share of the profit or loss after the date of acquisition.
The Group's share of the profit or loss is recognised in the statement of profit or loss.
Foreign currency translation
The functional currency in the Group is determined as the currency of the primary economic environment in which
Netwealth operates in. The Group’s financial statement are presented in Australian dollars (the presentation
currency), which is also the Group’s functional currency.
At initial recognition, a foreign currency transaction is translated into the Group’s functional currency using the spot
exchange rate between the functional currency and the foreign currency at the date of the transaction. Where a
foreign currency transaction is over a period of time, an average exchange rate can be used unless the exchange
rate fluctuates significantly during the period.
At the end of each reporting period, the foreign currency monetary assets and liabilities are translated using the
closing spot exchange rate.
Foreign exchange gains and losses arising from the settlement or translation is measured at fair value and
recognised as part of income or loss.
All subsidiaries and joint ventures use the same functional currency as the Group.
68 | netwealth Annual Report 2024 For the year ended 30 June 2024
3.
Segment Information
The operating segment has been determined based on the separate internal financial reports that are reviewed and
used regularly by the Board of Directors and the Executive Management Team, identified as the Chief Operating
Decision Makers (CODM), to assess performance and in determining the allocation of resources to the operating
segment. The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in
the financial statements.
The Group assessed its operating segments and determined that the 'Data and Advice Tech Solutions segment,'
does not yet meet the definition of an operating segment prescribed by the Accounting Standard AASB 8 Operating
Segments. Therefore, the Group continues to operate and disclose one reportable segment, 'Platform Operations
segment.'
The Group’s operations are solely based in Australia.
4.
Revenue
Revenue and other income
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Platform Revenue
Administration fees
112,282
97,942
Ancillary fees
86,794
74,330
Transaction fees
29,896
22,559
Management fees
14,688
12,177
Cost of capital recovery
5,866
4,482
Total Revenue from Contracts with Customers
249,526
211,490
Other income
Net gain/(loss) on disposal of investments
13
(109)
Unrealised investment (loss)/gain
(15)
193
Dividend and distributions received
24
34
Interest received
5,606
3,123
Other Income
94
18
Total other income
5,722
3,259
Total income
255,248
214,749
69 | netwealth Annual Report 2024 For the year ended 30 June 2024
Netwealth does not have an individual customer who makes up more than 10% of Netwealth’s Platform revenue.
5.
Expenses
5.1 Employee benefits expenses
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Salaries and wages (including payroll tax)
78,191
66,552
Contributed superannuation
7,067
5,865
Other employee benefits expenses
5,010
5,469
Total employee benefits expenses
90,268
77,886
Material Accounting Policies
Revenue is measured by reviewing each revenue contract and its respective services to clients to determine the performance
obligations. The transaction price is then allocated to each performance obligation, either over time or at a specific point in
time. Revenue contracts such as the Product Disclosure Statement (PDS) were assessed. The performance obligations
identified are:
Platform revenue – which comprises the following fees:
•
Administration fee is recognised over time as clients receive and benefit from accessing the platform. The amount is
calculated based on the contractual percentage applied daily value of client account balances and received monthly in
arrears directly from customer accounts on the platform.
•
Ancillary fee is recognised over time or once the service has been provided to and received by the platform clients. This
includes interest retained on pooled cash accounts.
•
Transaction fees are recognised once the transaction has been completed and the client receives confirmation of the
transaction. The amount is based on an agreed contractual rate and collected monthly in arrears.
•
Management fees are recognised over time as clients receive and benefit from having their funds managed, based on a
contractual percentage of the value of the client account balance being managed.
•
Cost of capital recovery is recognised over time as the superannuation clients on the platform receive and benefit from
having an Operational Risk Financial Requirement (ORFR) reserve.
Other income – which comprises the following income:
•
Gain/loss from disposal of investments is recognised when the asset has been disposed of.
•
Unrealised gains from investments is recognised when the fair value of the underlying asset increases or decreases but
not been disposed of.
•
Dividend revenue is recognised when the right to receive a dividend has been established.
•
Interest revenue is accrued over time, by reference to the principal outstanding and the effective interest rate applicable,
which discounts the estimated future cash receipts thorough the expected life of the financial asset to that asset’s gross
carrying amount on initial recognition.
70 | netwealth Annual Report 2024 For the year ended 30 June 2024
5.2 Other operating expenses
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Admin and other overhead expenses
2,758
2,593
Travel and entertainment expenses
1,175
1,126
Product expenses
1,521
946
Total other operating expenses
5,454
4,665
Material Accounting Policies
Other employee benefits expense
Long service leave is measured at the present value of the probability weighted expected future payments to be made to
employees and are discounted at rates determined by reference to Group of 100 (G100) discount rate.
Contributed superannuation
All employees of the Group receive defined contribution superannuation entitlements, for which the Group pays the fixed
superannuation guarantee contribution to the employee’s superannuation fund of choice in accordance with relevant
statutory requirements.
Other operating expenses
Admin and other overhead expenses are incidental operational costs such as cleaning, postage & courier. These are recorded
at the amounts at which the obligation will be settled.
71 | netwealth Annual Report 2024 For the year ended 30 June 2024
6.
Income Taxes
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
a) The components of tax expense/(income) comprise:
Current tax
37,914
29,258
Deferred tax
(836)
612
Over provision from prior years
1
(9)
37,079
29,861
b) The prima facie tax on profit before income tax is reconciled to
income tax as follows:
Prima facie tax before income tax at 30%
36,135
29,102
Other non-allowable items
944
759
Income tax expense attributable to entity
37,079
29,861
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
c) The components of deferred tax assets comprise:
Expenditure deductible over 5 years
61
90
Lease liability
4,475
4,076
Provisions
2,861
2,492
Other temporary differences
554
541
7,951
7,199
d) The components of deferred tax liabilities comprise:
Property, equipment and intangible assets
669
1,016
Right-of-use assets
4,122
3,849
Other temporary differences
129
140
4,920
5,005
72 | netwealth Annual Report 2024 For the year ended 30 June 2024
Effective tax rate
30 June 2024
30 June 2023
Consolidated Group
30.8%
30.8%
Opening Balance
30 Jun 2022
Charged to Income
Closing Balance
30 Jun 2023
$’000
$’000
$’000
Deferred tax assets/liabilities
Expenditure deductible over 5 years
157
(67)
90
Provisions
2,122
370
2,492
Property, plant & equipment and intangible
assets
(1,017)
1
(1,016)
Leases
133
94
227
Other temporary difference
187
214
401
1,582
612
2,194
Opening Balance
30 Jun 2023
Charged to Income
Closing Balance
30 Jun 2024
$’000
$’000
$’000
Deferred tax assets/liabilities
Expenditure deductible over 5 years
90
(30)
60
Provisions
2,492
370
2,862
Property, plant & equipment and intangible
assets
(1,016)
347
(669)
Leases
227
126
353
Other temporary differences
401
23
424
2,194
836
3,030
73 | netwealth Annual Report 2024 For the year ended 30 June 2024
Offsetting within tax consolidated group
Netwealth and its wholly owned subsidiaries have applied the tax consolidation legislation which result in these
entities being taxed as a single entity. The deferred tax assets and deferred tax liabilities of these entities have been
offset in the consolidated financial statements.
Material Accounting Policies
Current tax
The Group's current tax liabilities are calculated using the Australian company tax rates that have been enacted or
substantively enacted by the end of the reporting period.
Deferred tax
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and
associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only
recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of
the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Material Accounting Policies
Netwealth Group Limited (NWL) and its wholly-owned Australian subsidiaries formed an income tax consolidated group under
the tax consolidation legislation with NWL as the head entity of the Group.
The tax consolidated group has entered a tax funding arrangement which sets out the funding obligations of members of the
tax-consolidated group in respect of tax amounts. The amounts payable or receivable under the tax-funding arrangement
between NWL and the entities in the tax consolidated group are determined using the ‘standalone taxpayer method’ approach
for allocation of the tax contributions payable or receivable by each member of the tax-consolidated group. This approach
results in the tax effect of transactions being recognised in the legal entity where the transaction occurred and does not
affect transactions that do not have tax consequences to the group.
Each entity in the Group recognises its own current and deferred tax assets and liabilities. Current tax liabilities/(assets) and
deferred tax assets arising from unused tax losses and tax credits in the subsidiaries are immediately transferred to NWL as
under Australian taxation law, NWL has the legal obligation (or right) to these amounts.
74 | netwealth Annual Report 2024 For the year ended 30 June 2024
7.
Key Management Personnel Compensation
Consolidated Group
30 June 2024
30 June 2023
$
$
Short term employee benefits
3,056,214
2,384,952
Post-employment benefits
100,679
174,931
Share based payments
639,171
487,930
Key management personnel compensation
3,796,064
3,047,813
The remuneration paid to KMP of the Group during the year, was paid by Netwealth Group Services Pty Ltd, a
subsidiary of the Company. The remuneration disclosures are provided in the ‘Remuneration Report’ on pages 41 to
58 of the Annual Report.
8.
Dividends
Dividends paid by the Company in the year ended 30 June 2024 were:
Cents Per Share
Total Amount
$’000
% Franked
Date of Payment
Final 2023 ordinary
13.0
31,706
100%
21 Sep 2023
Interim 2024 ordinary
14.0
34,165
100%
28 Mar 2024
Total dividends paid
27.0
65,871
Dividends paid by the Company in the year ended 30 June 2023 were:
Cents Per Share
Total Amount
$’000
% Franked
Date of Payment
Final 2022 ordinary
10.0
24,381
100%
29 Sep 2022
Interim 2023 ordinary
11.0
26,827
100%
24 Mar 2023
Total dividends paid
21.0
51,208
There is no dividend reinvestment plan.
Franking credits
Franking credits available as at 30 June 2024 to shareholders of the Company amount to $47,453,225 (2023:
$38,922,005) at the 30 percent corporate tax rate.
Subsequent events
Since the end of the financial year, the Company declared the following fully franked dividend on 13 August 2024.
The dividend has not been provided for as at 30 June 2024.
75 | netwealth Annual Report 2024 For the year ended 30 June 2024
Cents Per
Share
Total Amount
$’000
% Franked
Date of Payment
Final 2024 ordinary
14.0
34,165
100%
26 Sep 2024
Total dividend
14.0
34,165
9.
Earnings Per Share
Basic earnings per share (EPS) is calculated by dividing the profit/(loss) attributable to owners of the Company by
the weighted average number of ordinary shares on issue during the year.
Diluted EPS is determined by adjusting the profit/(loss) attributable to owners of the Company and the weighted
average number of ordinary shares on issue for the effects of all dilutive ordinary shares. The basic and diluted EPS
are summarised below. The basic and diluted earnings per share are similar as total dilutive options were less than
1.0% of total ordinary shares on issue as at 30 June 2024.
Consolidated Group
30 June 2024
Cents per Share
30 June 2023
Cents per Share
Basic earnings per share
34.2
27.5
Diluted earnings per share
34.1
27.5
The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings
per share are as follows:
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Profit for the year attributable to owners of the Company
83,370
67,153
Profit for the year attributable to owners of the Company
83,370
67,153
30 June 2024
Number
30 June 2023
Number
Weighted average number of issued ordinary shares
244,055,799
243,867,831
Add: Weighted average number of dilutive ordinary shares:
FY2020 Options Vested deemed to be issued at no consideration
223,977
221,206
FY2022 Options Vested deemed to be issued at no consideration
322
-
FY2022 Rights Vested deemed to be issued at no consideration
139
-
Weighted average number of ordinary shares and potential ordinary
shares used in calculation of diluted earnings per share
244,280,237
244,089,037
76 | netwealth Annual Report 2024 For the year ended 30 June 2024
10.
Trade and Other Receivables
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Products account receivables
21,854#
17,704
Trade and sundry receivables
462
133
Total current receivables
22,316
17,837
Total trade and other receivables
22,316
17,837
Trade and other receivables classified as financial assets*
22,316
17,837
# Net of expected credit loss. Refer to table below.
* Refer to Note 22 for further information about Financial Assets
The table below presents the provision matrix by referencing to past provision rates and considerations for future
outlooks.
2024
Not past due
$’000
1-30
days
$’000
31-60
days
$’000
61-90
days
$’000
Over 90
days
$’000
Total
$’000
Gross products account receivable
21,498
140
123
33
77
21,871
Expected Credit Loss (ECL) Probability
0.05%
0.50%
0.75%
1.00%
3.00%
ECL Allowance
12
1
1
1
2
17
2023
Gross products account receivable
17,367
19
20
277
21
17,704
Expected Credit Loss (ECL) Probability
0.10%
0.50%
0.75%
1.00%
3.00%
ECL Allowance
17
-
-
3
-
20
The table below presents the gross exposure and related expected credit losses allowance for assets, subject to
impairment requirements of AASB 9.
2024
2023
Gross Exposure
$’000
ECL Allowance
$’000
Gross Exposure
$’000
ECL Allowance
$’000
Trade receivables
21,871
17
17,704
20
Total
21,871
17
17,704
20
77 | netwealth Annual Report 2024 For the year ended 30 June 2024
11.
Other Current Assets
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Accrued income
4,906
4,604
Prepayments
3,322
3,878
Other receivables
79
87
Total other current assets
8,307
8,569
Material Accounting Policies
Measurement of Trade and Other Receivables
Products account receivable and trade and sundry receivable are measured at amortised cost. The receivables arises when
the Group has provided services to clients where the consideration for the service remains unpaid at the end of the financial
year.
Expected credit losses (ECL)
Trade receivables are continuously reviewed using an expected credit loss (ECL) model with a provision matrix based on
historical loss rates. Additionally, receivables unlikely to be collected are provided for separately. The ECL is assessed
collectively, applying a simplified model that considers probability of default and forward-looking information.
Management has determined the Expected Loss Probability for each of the following ageing categories as:
Debtors Aging Category
ECL Probability
Not past due
0.05%
1-30 days
0.50%
31-60 days
0.75%
61-90 days
1.00%
Over 90 days
3.00%
78 | netwealth Annual Report 2024 For the year ended 30 June 2024
12.
Financial Assets
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
FVTPL* financial assets
2,882
1,408
Total financial assets
2,882
1,408
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
FVTPL* financial assets comprise:
Netwealth wrap accounts
682
491
Convertible Loan and Call Option held at FVTPL
2,200
917
Total FVTPL financial assets
2,882
1,408
* Fair Value through Profit or Loss (FVTPL)
Refer to Note 22 for further information about Financial Assets.
13.
Leases
Property
$’000
Office
Equipment
$’ 000
Total
$’ 000
Right-of-use assets
Balance as at 30 June 2022
14,584
59
14,643
Depreciation
(1,798)
(15)
(1,813)
Balance as at 30 June 2023
12,786
44
12,830
Additions
2,890
-
2,890
Depreciation
(1,985)
(12)
(1,997)
Remeasurement
-
18
18
Total right-of-use assets as at 30 June 2024
13,691
50
13,741
79 | netwealth Annual Report 2024 For the year ended 30 June 2024
Property
$’000
Office
Equipment
$’ 000
Total
$’ 000
Lease liability
Balance as at 30 June 2022
15,028
59
15,087
Payment of lease liabilities
(1,937)
(15)
(1,952)
Interest on leases
450
1
451
Balance as at 30 June 2023
13,541
45
13,586
Additions
2,890
-
2,890
Payment of lease liabilities
(2,136)
(15)
(2,151)
Interest on leases
569
3
572
Remeasurement
-
18
18
Total lease liability as at 30 June 2024
14,864
51
14,915
Current
1,763
10
1,773
Non-current
13,101
41
13,142
Total lease liability as at 30 June 2024
14,864
51
14,915
Amounts recognised in Statement of Comprehensive Income
30 June 2024
$’000
30 June 2023
$’000
Depreciation charge on right-of-use assets
1,997
1,813
Interest expense on lease liabilities
572
451
Amounts recognised in Statement of Cash Flows
30 June 2024
$’000
30 June 2023
$’000
Total cash outflows for leases
(1,578)
(1,501)
80 | netwealth Annual Report 2024 For the year ended 30 June 2024
Property
$’000
Office
Equipment
$’ 000
Total
$’ 000
Undiscounted lease payments to be paid
Year 1
2,334
14
2,348
Year 2
2,405
14
2,419
Year 3
2,479
14
2,493
Year 4
2,559
14
2,573
Year 5
2,493
5
2,498
> 5 years
4,800
-
4,800
Total
17,070
61
17,131
Impact of new lease
On 1 November 2023, Netwealth expanded its Melbourne office by entering into an 8-year lease for Level 6 at 189
Flinders Lane. Annual increases will begin at 2.50% per annum for the first 5 years, then increase to 3.00% per
annum from the 5th year of the lease.
NWL has entered into a new 5-year lease for a new office in Sydney from 1 November 2023, replacing the previous
lease which ended at the end of October. Annual increases will start at 3.75% per annum.
Short-term leases
Payments associated with short-term leases are directly expensed within ‘Other operating expenses’ in the
consolidated income statement. Short-term leases are leases with a contractual term of 12 months or less. For the
year ended 30 June 2024, $0.2 million of short-term lease payments has been recognised in the income statement.
Material Accounting Policies
At the lease commencement date, NWL recognises the “Right of Use assets” (ROU) with the equivalent lease liability
measured at cost less incentives received. The ROU depreciates in a straight line over the lease term. The lease liability is
measured at the present value of the lease’s future lease payments from commencement date, discounted using the Group’s
incremental borrowing rate (IBR).
NWL uses the lease specific IBR rate during the period. Any rental abatement taken was recognised across the life of the
lease.
Lease liability is subsequently remeasured when there is a change in future lease payments arising from a change in lease
term, an index or rate, change in amount payable under a residual value guarantee, lease term or termination penalties. When
it is remeasured, a corresponding adjustment is made to the carrying value of the ROU asset.
In determining the lease term, management considers all facts and circumstances that create an economic incentive to
exercise an extension option. Such option is only included in the lease term if the lease is reasonably certain to be extended.
The assessment is reviewed if an event of significant change in circumstances occurs which affects this assessment that is
81 | netwealth Annual Report 2024 For the year ended 30 June 2024
14.
Investment in Joint Venture
(i) Share in Joint Venture
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Opening Balance
1,614
1,991
Share of Joint Venture NPAT
(269)
(377)
Total Investment in Joint Venture
1,345
1,614
The Group’s joint venture at the balance date is:
Joint Venture
Ownership
Interest
30 June
2024
Ownership
Interest
30 June
2023
Nature of activities
Financial
Reporting
Date
Carrying
Value
30 June
2024
$’000
Carrying
Value
30 June
2023
$’000
Xeppo Pty Limited
25%
25%
Fintech Data Solutions Provider
30 June
1,345
1,614
Xeppo Pty Ltd (Xeppo)
The Group has a 25% interest in an unlisted entity, Xeppo, an Australian specialist Fintech data solutions provider
based in Adelaide.
In August 2022, the Group and other Xeppo shareholders revised their shareholder agreement. As part of this
agreement, the Group provided Xeppo with a $2.5 million convertible loan facility at an annual interest rate of 5%,
maturing on 30 June 2026. This loan, measured separately at FVTPL, supports Xeppo's strategic initiatives and is not
included in the investment in Joint Venture.
Under the agreement, the loan will convert into Xeppo’s ordinary shares at $3 per share either at maturity in
September 2026 or when the Group exercises its “First call option”. The Group also received a "First call option" to
acquire up to 50% of Xeppo’s ordinary shares on a fully diluted basis at any time until the loan’s maturity at 30 June
2026. Additionally, a “Final put-call option” was introduced, exercisable after 30 June 2026. The Group’s call option
allows it to acquire any remaining shares from non-Netwealth shareholders after 30 June 2026, while non-Netwealth
shareholders have a put option to sell their shares at the higher of $3 per share or three times Xeppo’s net profit
after tax.
During the financial year, the Group classified its investment in Xeppo as a joint venture, recognising that joint
control exists with Xeppo shareholders. In accordance with the terms of the shareholder agreement, significant
decisions require unanimous consent from Netwealth and other Xeppo shareholders. Consequently, Netwealth
does not unilaterally exercise control over Xeppo.
As at 30 June 2024, Xeppo has drawn $2.1 million under the loan facility plus $0.1M accrued interest. No options
have been exercised.
82 | netwealth Annual Report 2024 For the year ended 30 June 2024
(ii) Financial Assets at Fair Value through Profit and Loss
Netwealth has recognised the convertible loan and first call option to Xeppo, on an aggregated basis as a Financial
Asset held at FVTPL in accordance with AASB 9.
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Loan and call option held at FVTPL
2,200
917
Total Financial Assets at Fair Value through P&L
2,200
917
Subsequent event –Acquisition of Xeppo from 12 August 2024 (business combination achieved in stages)
On 12 August 2024 (acquisition date), Netwealth and Xeppo signed a new share sale and purchase agreement. This
agreement replaces the ‘Final put-call option’ from the previous shareholder agreement with an offer of $2.27 per
share for the remaining shares in Xeppo.
Netwealth exercised its ‘First call option’ to convert the $2.2 million loan provided by Netwealth to Xeppo into equity,
increasing Netwealth’s ownership in Xeppo to 46%. On the same day, Netwealth acquired the remaining 54% of
issued share capital in Xeppo for a net cash consideration of $5.9 million. The terms of the acquisition did not
include any contingent consideration.
The acquisition aligns Xeppo’s strategic initiatives with the Group and enables Netwealth to accelerate its
integration with Xeppo and enhancing our capabilities on data and artificial intelligence (AI). The acquisition related
costs are estimated to be $50,000 and will be incurred in FY2025.
The provisional fair values of the identifiable assets and liabilities acquired as of the date of acquisition were:
12 August 2024
$’000
Cash and cash equivalents
329
Trade and other receivables
72
Other current assets
147
Property, plant and equipment
8
Intangible assets
39
Goodwill
5
Deferred tax assets
38
Trade and other payables
(101)
Provisions
(249)
Total identifiable assets acquire, and liabilities assumed
288
83 | netwealth Annual Report 2024 For the year ended 30 June 2024
Fair value of consideration given for controlling interest
5,858
Fair value of previously held interest in Xeppo
2,562
Loan to Xeppo converted into equity
2,200
Less: fair value of net assets acquired, and liabilities assumed
(288)
Provisional goodwill
10,332
The fair values disclosed are provisional. The goodwill represents the provisional amount, which could not be
reliably allocated due to the timing of the acquisition. The valuation process remains ongoing and will be completed
within 12 months of the acquisition.
The contribution to revenue and profit of the Group for the year ended 30 June 2024, had the acquisition occurred
on 1 July 2023 would not have been material.
Material Accounting Policies
Investments in joint venture – Equity Method
Investments in joint ventures are recognised initially in the consolidated statement of financial position at cost and if the cost
of investment is greater than the net assets of the investee, goodwill is included as part of the cost of the investment in joint
venture.
Recognition of Share of Profit or Loss from investment in joint venture
After the initial recognition, the Group’s share of the investee’s profit or loss is to be recognised in its profit or loss, which will
either increase or decrease the carrying amount of the investment in joint venture. After the initial recognition, the Group’s
share of the investee’s profit or loss is to be recognised in its profit or loss, which will increase or decrease the carrying
amount of the investment in joint venture. When the Group’s share of losses of an joint venture exceeds the Group’s interest
in that joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the
joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the
extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture.
The requirements of AASB 136 are applied to determine whether it is necessary to recognise any impairment loss with respect
to the Group’s investment in a joint venture. When necessary, the entire carrying amount of the investment (including
goodwill) is tested for impairment in accordance with AAASB 136 as a single asset, by comparing its recoverable amount
(higher of value in use and fair value less costs of disposal) with it carrying amount. Any reversal of that impairment loss is
recognised in accordance with AASB 136 to the extent that the recoverable amount of the investment subsequently
increases.
Valuation Methodology
The fair value of the convertible loan, first call option and final put-call option were determined using a discounted cash flow
(DCF) model, relying on management's forecast of the loan schedule. The model then incorporated an implied risk premium
above the risk-free rate that results in a net present value (NPV) across the instruments.
84 | netwealth Annual Report 2024 For the year ended 30 June 2024
15.
Property and Equipment
Consolidated Group
Carrying amount of:
30 June 2024
$’000
30 June 2023
$’000
Leasehold improvements
405
315
Equipment
1,140
1,130
Total property and equipment
1,545
1,445
Leasehold Improvements
$’000
Equipment
$’000
Total
$’000
Cost
Balance at 30 June 2022
861
3,648
4,509
Additions
-
709
709
Disposals
-
(186)
(186)
Balance at 30 June 2023
861
4,171
5,032
Additions
148
698
846
Disposals
(114)
(211)
(325)
Balance at 30 June 2024
895
4,658
5,553
Accumulated depreciation
Balance at 30 June 2022
(487)
(2,462)
(2,949)
Depreciation expense
(59)
(765)
(824)
Disposals
-
186
186
Balance at 30 June 2023
(546)
(3,041)
(3,587)
Depreciation expense
(50)
(685)
(735)
Disposals
106
208
314
Balance at 30 June 2024
(490)
(3,518)
(4,008)
Leasehold Improvements
$’000
Equipment
$’000
Total
$’000
Net carrying amount
At 30 June 2023
315
1,130
1,445
At 30 June 2024
405
1,140
1,545
85 | netwealth Annual Report 2024 For the year ended 30 June 2024
16.
Intangible Assets
Consolidated Group
Carrying amount of:
30 June 2024
$’000
30 June 2023
$’000
Software and website developments costs
5,616
2,070
Software – Work in Progress (WIP)
4,028
4,436
Total intangibles
9,644
6,506
Customer
relationship
$’000
Software and
website
$’000
Software - Work in
Progress
$’000
Total
$’000
Cost
Balance at 30 June 2022
300
2,624
-
2,924
Additions
-
497
4,436
4,933
Balance at 30 June 2023
300
3,121
4,436
7,857
Additions
-
-
4,062
4,062
Transfer
-
4,470
(4,470)
-
Balance at 30 June 2024
300
7,591
4,028
11,919
Customer
relationship
$’000
Software and
website
$’000
Software - Work in
progress
$’000
Total
$’000
Accumulated amortisation and impairment
Balance at 30 June 2022
(240)
(469)
-
(709)
Amortisation
(60)
(582)
-
(642)
Balance at 30 June 2023
(300)
(1,051)
-
(1,351)
Amortisation
-
(924)
-
(924)
Balance at 30 June 2024
(300)
(1,975)
-
(2,275)
86 | netwealth Annual Report 2024 For the year ended 30 June 2024
Material Accounting Policies
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The
estimated useful life and amortisation method are reviewed at the end of each reporting period. Intangible assets with
indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
Customisation and Configuration costs in Software as a Service (SaaS) arrangements
Customisation and configuration costs in SaaS arrangements are capitalised when the software upgrade results in new code
written that are separately identifiable, have measurable costs, and meets the condition for Netwealth having obtained
control of the intellectual property from the upgrade. The development on the existing SaaS code enhances and creates new
additional capabilities and it is probable that future economic benefits will be obtained. Judgement is continuously applied in
determining whether the additional code meets the definition of and recognition criteria as an intangible asset under AASB
138 Intangible Assets.
Internally generated intangibles - Work In Progress (WIP)
Intangibles – WIP is recognised when it can be demonstrated that there is an intention to complete the work in progress and
it is feasible that the intangible assets will be ready for use or sale and the amount can be reliably measured.
Impairment of intangible assets other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss.
Intangible assets with either indefinite useful lives or not yet available for use are tested for impairment at least annually or
where there is an indicator of impairment. Intangible assets with indefinite useful lives or not yet available for use are tested
for impairment at least annually or where there is an indicator of impairment. If the recoverable amount of an asset is
estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An
impairment loss is recognised immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.
Amortisation
The intangibles is amortised on a straight-line basis over it’s estimated useful life from the time the asset is ready for use.
Amortisation is recognised in profit or loss.
The amortisation rates used for each class of amortisable assets are:
Class of Intangibles
Amortisation rate (currently in use)
Customer relationships
20%
Existing software and website
20%
87 | netwealth Annual Report 2024 For the year ended 30 June 2024
17.
Trade and Other Payables
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Measured at amortised cost:
Trade payables
13,064
10,685
GST payables
1,159
1,119
Total trade and other payables measured at amortised cost
14,223
11,804
Financial liabilities at amortised costs classified as trade and
other payables
Total trade and other payables at amortised cost
14,223
11,804
Less:
GST payable
1,159
1,119
Total financial liabilities as trade and other payables
13,064
10,685
Material Accounting Policies
Measurement of Trade and Other Payables
Trade creditors and other payables are initially measured at amortised cost. The above liabilities are recognised when the
goods and services are received but are unpaid at the end of the financial year and the Group has a present obligation to
make payments to the supplier.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST receivables or payable. The net amount of GST
recoverable from, or payable to, the ATO is included as part of trade and other payables in the statement of financial position.
88 | netwealth Annual Report 2024 For the year ended 30 June 2024
18.
Provisions
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Employee benefits
9,536
8,294
Make good provisions
124
91
Total provisions
9,660
8,385
Current
8,664
7,439
Non-current
996
946
Total provisions
9,660
8,385
Employee Benefits
Make good
provisions
Total Provisions
$’000
$’000
$’000
Analysis of provisions consolidated Group
Balance at 30 June 2023
8,294
91
8,385
Additional amounts raised during the year
6,407
50
6,457
Amount used or reversed during the year
(5,165)
(17)
(5,182)
Balance at 30 June 2024
9,536
124
9,660
18.1 Employee benefits liability
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Current
Annual leave
5,032
4,491
Long service leave
3,508
2,857
Total current employee benefits liability
8,540
7,348
Non-current
Long service leave
996
946
Total non-current employee benefits liability
996
946
Total employee benefits liability
9,536
8,294
89 | netwealth Annual Report 2024 For the year ended 30 June 2024
19.
Issued Capital
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Balance at beginning of the reporting period
883,286
882,621
Cash received on vested options converted
970
479
Employee gift shares issued
183
167
Total share capital
884,439
883,267
Reorganisation reserve
(856,058)
(856,039)
Issued capital at the end of the reporting period
28,381
27,228
The Company recognised in FY2018 a Reorganisation Reserve of $856 million to reflect the market value of $3.70 per
Fully Paid Ordinary share from the restructure of equity at listing.
Consolidated group
30 June 2024
Number
30 June 2023
Number
Fully Paid Ordinary shares
At the beginning of the reporting period
243,891,092
243,813,690
Vested options converted
128,448
63,452
Employee gift shares issued
14,697
13,950
At the end of the reporting period
244,034,237
243,891,092
Material Accounting Policies
Employee benefits liability
Employee benefits liability is recognised when the employee has provided service to the Group in exchange for employee
benefits to be paid in the future. Where the employee benefit liabilities are not expected to be settled wholly within 12 months
after the end of the annual reporting period in which the obligation arises, the liability is discounted to present value based on
management’s best estimate of the timing of settlement and the expenditure required to settle the liability at the reporting
date.
The discount rates used to determine the present value of employee-related provisions are determined by reference to the
Group of 100 discount rates at the end of the reporting period with terms to maturity and currencies that match, as closely as
possible, the estimated future cash outflows of the related liability.
90 | netwealth Annual Report 2024 For the year ended 30 June 2024
On 26 October 2023, 14,697 ($182,978) Fully Paid Ordinary shares were issued at no cost to eligible employees as part
of the Employee Gift Offer.
On 25 August 2023, 120,568 ($910,819) Options which vested on 30 June 2022 were exercised and converted to Fully
Paid Ordinary shares.
On 29 February 2024, 7,880 ($59,529) Options which vested on 30 June 2022 were exercised and converted to Fully
Paid Ordinary shares.
During the financial year, Netwealth received $970,348 for the exercise of vested Options and their conversion to
Fully Paid Ordinary shares and gifted $182,978 shares to employees.
The Company has issued share capital amounting to 244,034,237 Fully Paid Ordinary shares (2023: 243,891,092
shares).
At shareholders’ meetings each Ordinary share is entitled to one vote when a poll is called, otherwise each Ordinary
shareholder has one vote on a show of hands.
20.
Reserves
Consolidated Group
Share-based payments reserve
30 June 2024
$’000
30 June 2023
$’000
Balance at beginning of the reporting period
6,772
4,576
Share based payment expense
2,819
2,196
Share-based payments reserve
9,591
6,772
The Share-based payments reserve records the fair value of shares granted via Share-based payment transactions.
Material Accounting Policies
The grants under the Employee Share Plan result in the recognition of employment expenses with a corresponding increase in
share reserve.
91 | netwealth Annual Report 2024 For the year ended 30 June 2024
21.
Controlled Entities
Note
Country of
Incorporation
Percentage Owned
30 June 2024
%
30 June 2023
%
Subsidiaries of Netwealth Group Limited
Netwealth Holdings Limited
(a)
Australia
100
100
Wealthtech Pty Ltd
Australia
100
100
Subsidiaries of Netwealth Holdings Limited
Netwealth Investment Limited
Australia
100
100
Netwealth Group Services Pty Ltd
(a)
Australia
100
100
Netwealth Fiduciary Services Pty Ltd
(a)
Australia
100
100
Netwealth Superannuation Services Pty Ltd
Australia
100
100
(a) Parties to a Deed of Cross Guarantee with Netwealth Group Limited as detailed in Note 27.
Wealthtech Pty Ltd is not operational as of 30 June 2024.
92 | netwealth Annual Report 2024 For the year ended 30 June 2024
22.
Financial Instruments
The carrying amount for each category of financial instruments, measured in accordance with AASB 9 Financial
Instruments, as detailed in the accounting policies to these financial statements, are as follows:
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Financial assets
Cash and cash equivalents
126,676
109,482
Trade and other receivables
22,316
17,837
Financial assets at FVTPL
682
491
Loan and call option held at FVPTL
2,200
917
Total financial assets
151,874
128,727
Financial liabilities
Trade and other payables
13,064
10,685
Lease liabilities
14,915
13,586
Total financial liabilities
27,979
24,271
Material Accounting Policies
Initial recognition and measurement
Financial instruments are initially measured at fair value. If the market for the financial instrument is unlisted or no market
quotes are available, fair values is obtained using discounted cash flow analysis or other valuation techniques, using inputs
based on market condition prevailing at the measurement date.
Transaction costs that are directly attributable to the acquisition or issue of financial instruments (other than those classified
at fair value) are adjusted against the fair value on initial recognition. Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at fair value through profit or loss (FVTPL) are recognised immediately in profit and
loss.
Classification of Financial assets
Debt instruments that meet the following conditions are measured subsequently at amortised cost:
•
The financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows;
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
By default, all other financial assets except for cash are measured subsequently at FVTPL.
93 | netwealth Annual Report 2024 For the year ended 30 June 2024
The Group’s financial instruments consist of deposits with banks, local money markets investments, short term
investments, loan to joint venture, accounts receivable and payable and lease liabilities. For the year ended 30 June
2024, the Group did not utilise derivatives, does not have any external borrowings and has not traded in financial
instruments including derivatives other than listed and unlisted securities. The financial instruments the Group has
exposes it to the following risks:
•
Capital management
•
Credit risk
•
Liquidity risk
•
Market risk
•
Interest rate risk
In relation to the exposure of the above risks, the objectives, policies, process, measurement and the management
of capital are outlined in the disclosures below.
Material Accounting Policies cont…
A financial asset is held for trading if:
•
It has been acquired principally for the purpose of selling it in the near term;
•
It is a derivative.
Cash & cash equivalent
Cash and cash equivalents with no fixed maturity are short-term instruments in nature or are payable on demand whose
carrying value is equivalent to fair value.
FVTPL financial assets
FVTPL financial assets includes trading assets which includes financial investments classified as FVTPL. The quoted prices of
the financial assets are quoted on the active market.
Derecognition of financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
Financial liabilities and equity instruments
Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
94 | netwealth Annual Report 2024 For the year ended 30 June 2024
22.1 Capital management & Regulatory requirements
The Board manages the Group’s capital to ensure it can satisfy its regulatory requirements, fund its operations and
continue as a going concern. The Group’s capital includes share capital, retained earnings, and financial liabilities,
supported by financial assets. The Group’s financial liabilities consist of Trade and Other Payables. The Board
continuously assesses the Group’s financial risks and commitments to effectively manage its capital.
Under the Registrable Superannuation Entity (RSE) licence granted by APRA, the licensed entity is required to
maintain sufficient level of capital known as Operational Risk Financial Requirements (ORFR) to cover operational
risk. At 30 June 2024, NSS as the licensed entity and trustee for Netwealth Superannuation Master Fund held cash
of $74.0 million to meet this requirement.
Under ASIC’s RG166 capital requirements for Australian Financial Services Licensees, NIL as the licensed entity was
also required to maintain an additional $20.3 million in net tangible assets as at 30 June 2024 (2023: 17.1 million).
Both licensed entities satisfied these requirements at all times during the year.
There were no changes in the strategy adopted by the Group to manage its capital during the financial year.
22.2 Credit risk
The Group’s objective in managing credit risk is to minimise the credit losses incurred, mainly on trade and other
receivables. There is no significant credit risk exposure on fair value through profit and loss (FVTPL) financial assets.
Credit risk is managed through maintaining procedures ensuring, to the extent possible, that customers and
counterparties to transactions are of sound credit worthiness and the monitoring of the financial stability of
significant customers and counterparties. Such monitoring is used in assessing receivables for impairment. Credit
terms are generally 30 days from the date of invoice.
The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is
equivalent to the carrying value of those financial assets as presented in the statement of financial position.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by
international credit-rating agencies.
95 | netwealth Annual Report 2024 For the year ended 30 June 2024
The Group has no significant concentration of credit risk with respect to any single counterparty or group of
counterparties and the exposure to credit risks are as below:
Expected credit
loss approach
Note
Gross
Carrying
Value
Expected
Credit Loss
Carrying
Value
$’000
$’000
$’000
2024
Cash and cash equivalents
Lifetime ECL
(i)
126,676
-
126,676
Trade and other receivables
Lifetime ECL
(ii)
22,333
(17)
22,316
Loan and call option held at FVPTL
N/A
(iii)
2,200
-
2,200
2023
Cash and cash equivalents
Lifetime ECL
(i)
109,482
-
109,482
Trade and other receivables
Lifetime ECL
(ii)
17,837
-
17,837
Loan and call option held at FVPTL
N/A
(iii)
917
-
917
(i)
Cash and cash equivalents, directly or indirectly through the Netwealth Wrap Service are held with large
reputable financial institutions within Australia where the credit risk is considered low.
(ii)
The Group determines the expected credit losses on these items based on historical credit loss using
probability of default, and forward-looking expectations.
(iii)
Loan and call option held at FVTPL relates to the convertible loan and first option with Xeppo.
The Group has not experienced material credit losses on these financial assets.
96 | netwealth Annual Report 2024 For the year ended 30 June 2024
22.3 Liquidity risk management
The Group manages this risk through the following mechanisms:
•
preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities;
•
maintaining a reputable credit profile;
•
managing credit risk related to financial assets;
•
only investing surplus cash with major financial institutions; and
•
comparing the maturity profile of financial liabilities with the realisation profile of financial assets.
Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual
timing may therefore differ from that disclosed.
Year 1
Year 2
Year 3
Year 4
Year 5
More
than 5
Years
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
2024
Trade & other payables
13,064
-
-
-
-
-
13,064
Lease liabilities
1,774
1,921
2,079
2,252
2,276
4,613
14,915
Total expected outflows
14,838
1,921
2,079
2,252
2,276
4,613
27,979
Cash and cash equivalents
126,676
-
-
-
-
-
126,676
Trade and other receivables
22,316
-
-
-
-
-
22,316
Financial assets at FVTPL
682
-
-
-
-
-
682
Loan and call option held at
FVPTL
2,200
-
-
-
-
-
2,200
Total anticipated inflows
151,874
-
-
-
-
-
151,874
Net inflow/(outflow) of
financial instruments
137,036
(1,921)
(2,079)
(2,252)
(2,276)
(4,613)
123,895
97 | netwealth Annual Report 2024 For the year ended 30 June 2024
Year 1
Year 2
Year 3
Year 4
Year 5
More
than 5
Years
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
2023
Trade & other payables
10,685
-
-
-
-
-
10,685
Lease liabilities
1,437
1,432
1,527
1,611
1,719
5,860
13,586
Total expected outflows
12,122
1,432
1,527
1,611
1,719
5,860
24,271
Cash and cash equivalents
109,482
-
-
-
-
-
109,482
Trade and other receivables
17,837
-
-
-
-
-
17,837
Financial assets at FVTPL
491
-
-
-
-
-
491
Loan and call option held at
FVPTL
-
-
917
-
-
-
917
Total anticipated inflows
127,810
-
917
-
-
-
128,727
Net inflow of financial
instruments
115,688
(1,432)
(610)
(1,611)
(1,719)
(5,860)
104,456
22.4 Market risk
The Group’s exposure to securities price risk arises mainly from FVTPL financial assets.
The Group balance sheet is not materially exposed to movements in market prices. The fair value of financial assets
and liabilities approximates their carrying value and the methods calculating fair value is consistent with how
financial instruments are measured at fair value.
22.5 Interest rate risk
The Group also manages interest rate risk by ensuring that, whenever possible, payables are paid within pre-agreed
credit terms.
98 | netwealth Annual Report 2024 For the year ended 30 June 2024
Sensitivity analysis
The following table illustrates sensitivities to the Group’s exposures to changes in interest rates. The table indicates
the impact on how profit and equity values reported at the end of the reporting period would have been affected by
changes in the relevant risk variable that management considers to be reasonably possible.
These sensitivities assume that the movement in a variable is independent of other variables.
Consolidated Group
Profit (Before Tax)
$’000
Profit (After Tax)
$’000
Year ended 30 June 2024
+/- 0.5% cash rate
+527/-527
+369/-369
Year ended 30 June 2023
+/- 0.5% cash rate
+486/-486
+341/-341
The Group earns interest on cash and cash equivalents held at approximately 1.35% p.a on the balances from the
client’s cash transaction account. Further increases in the RBA cash rate have limited impact on the margins
earned in the cash transaction account as majority of the benefit from any increases in interest earned is passed on
to clients. With the RBA interest rate at 4.35% as at 30 June 2024, there is significant downside protection to 0.65%
before rate decreases have an impact on the Group’s revenues.
Foreign currency risk
The Group holds foreign currency in United States Dollars (USD) which is exposed to foreign exchange risk. As the
Group does not hold substantial amounts of cash in USD ($253,000 USD), the impact on profit from foreign
exchange risk is not material.
Material Accounting Policies
Initial recognition and measurement on foreign currency
At initial recognition, a foreign currency transaction is translated into the Group’s function currency using the spot exchange
rate between the functional currency and the foreign currency at the date of the transaction. Where a foreign currency
transaction is over a period of time, an average exchange rate can be used unless the exchange rate fluctuate significantly
during the period.
Subsequent measurement on foreign currency
At the end of each reporting period, the foreign currency monetary assets and liabilities are translated using the closing spot
exchange rate.
Foreign exchange gains and losses arising from the settlement or translation is measured at fair value and recognised as part
of income or loss.
Foreign exchange risk
As the Group is holding cash in a foreign currency, it is exposed to foreign currency translation movements which is captured
as part of income or loss.
99 | netwealth Annual Report 2024 For the year ended 30 June 2024
22.6 Fair value of financial instruments
The fair values of financial assets and financial liabilities that are measured at amortised cost are presented in the
following table:
Net Carrying Value
30 Jun 2024
30 Jun 2023
$’000
$’000
Financial assets
Cash & cash equivalent
126,676
109,482
Trade & other receivables
22,316
17,837
Total financial assets
148,992
127,319
Financial liabilities
Trade & other payables
13,064
10,685
Total financial liabilities
13,064
10,685
For all in the above table, the carrying value approximates their fair value
Financial instruments measured at fair value
The financial instruments recognised at fair value in the statement of financial position have been analysed and
classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements.
The fair value hierarchy consists of the following levels:
•
Unadjusted quoted prices in active markets for identical assets or liabilities (Level 1). The listed and unlisted
investments are valued by reference to the quoted prices in active markets and are deemed to be Level 1
instruments in accordance with AASB 13 fair value hierarchy of measurement. In this regard, there is no
subjectivity in relation to their value.
•
In valuing investments that maybe included in Level 2 of the hierarchy, valuation techniques, such as
comparison to similar investments for which market observable prices are available, are adopted to determine
the fair value of these investments.
•
Fair value for investments that maybe included in Level 3 are determined using valuation techniques that
include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
100 | netwealth Annual Report 2024 For the year ended 30 June 2024
Level 1
Level 2
Level 3
Total
$’000
$’000
$’000
$’000
2024
Financial assets
FVTPL financial assets:
Listed investments
38
-
-
38
Loan and Call Option at FVTPL
-
-
2,200
2,200
Other
-
644
-
644
Total FVTPL financial assets
38
644
2,200
2,882
2023
Financial assets
FVTPL financial assets:
Listed investments
5
-
-
5
Loan and Call Option at FVTPL
-
-
917
917
Other
-
486
-
486
Total FVTPL financial assets
5
486
917
1,408
Listed investments are valued by reference to the quoted prices in active markets for identical securities and are
deemed to be Level 1 securities in accordance with AASB 13 fair value hierarchy of measurement. In this regard,
prices are directly observable in an active market as listed investments.
In valuing investments that are classified as Level 2 of the hierarchy, valuation techniques, such as comparison to
similar investments for which market observable prices are available, are adopted to determine the fair value of
these investments.
101 | netwealth Annual Report 2024 For the year ended 30 June 2024
The valuation of investments classified as Level 3 inputs are based on unobservable inputs and involve valuation
techniques such as discounted cashflow. The reconciliation is shown in the table below:
Reconciliation of Level 3 fair value measurements
Loan to Joint Venture
$’000
30 June 2024
Opening balance
917
Loan advanced at FVTPL
1,200
Interest on Loan at FVTPL
83
Closing balance
2,200
In August 2022, the Group and other Xeppo shareholders revised their shareholder agreement (refer to Notes 2 and
14). As part of this agreement, the Group provided Xeppo with a $2.5 million convertible loan facility at an annual
interest rate of 5%, maturing on 30 June 2026.
Under the agreement, the loan will convert into Xeppo’s ordinary shares at $3 per share either at maturity in
September 2026 or when the Group exercises its “First call option”. The Group also received a "First call option" to
acquire up to 50% of Xeppo’s ordinary shares on a fully diluted basis at any time until its maturity at 30 June 2026.
Additionally, a “Final put-call option” was introduced, exercisable after 30 June 2026. The Group’s call option allows
it to acquire any remaining shares from non-Netwealth shareholders after 30 June 2026, while non-Netwealth
shareholders have a put option to sell their shares at the higher of $3 per share or three times Xeppo’s net profit
after tax.
The fair value of the loan and call option, recognised as financial instruments, was determined using a discounted
cash flow (DCF) approach applied to the forecasted loan schedule, in conjunction with a Black Scholes model
applied to the call option. This valuation is categorised as Level 3 due to the unlisted nature of the loan and call
option, which lacks observable arm’s length transactions.
As at 30 June 2024, the fair value of the loan and call option was $2.2 million.
102 | netwealth Annual Report 2024 For the year ended 30 June 2024
23.
Share Based Payments
Netwealth Equity Incentive Plan (NEIP)
The Group operates an equity-settled share-based compensation plan for which the Board, under the NEIP may
make offers of ‘incentive securities” in the form of rights, options, restricted shares or a combination of these to
selected employees in exchange for their services. The value of the employee services rendered for the grant of
these incentive securities is recognised as an expense over the vesting period, with the amount determined by the
fair value of these incentive securities granted. The NEIP does not apply to Non-Executive Directors.
As at 30 June 2024, the Group had the following share-based payment arrangements:
Options Granted
During the year, the Company did not issue any ordinary share options to employees under the NEIP (2023: Nil).
The following unvested options remain outstanding at the end of the reporting period:
Series
Grant date
Number
Plan
Vesting
Date
Exercise
Price
Fair Value at
Grant Date
Series 22
24 June 2022
25,000
Options - LTI
30 June
2025
$15.74
$4.52
The following vesting conditions apply to all the LTI Scheme Options:
•
The holder must be either continuously employed by or hold office continually until the end of the vesting
period;
•
In each of the three financial years ending from the year the options are issued, the holder must achieve
performance ratings of ‘achieving’ and achieve all minimum KPIs as detailed in the performance plan applicable
for the relevant year.
103 | netwealth Annual Report 2024 For the year ended 30 June 2024
Rights Granted
During the year, the Company granted and issued 124,188 performance rights under the NEIP (2023: 72,050).
The following performance rights remains outstanding at the end of the reporting period:
Series
Grant date
Number
Plan
Vesting Date
Weighted
Average
Fair
Value at
Grant
Date
Series 23
12 September 2022
34,512
FY23 Rights - LTI
30 June 2025
$12.37
Series 24
11 October 2022
5,059
FY23 Rights - LTI
30 June 2025
$11.15
Series 25
23 November 2022
30,257
FY23 Rights - LTI
30 June 2025
$13.09
Series 26
27 June 2023
2,222
FY23 Rights – LTI (Sign-on)
30 June 2025
$12.37
Series 27
28 September 2023
76,236
FY24 Rights - LTI
30 June 2026
$14.31
Series 28
28 September 2023
3,251
FY24 Rights – LTI (Sign-on)
30 June 2025
$14.54
Series 29
22 November 2023
41,450
FY24 Rights - LTI
30 June 2026
$13.47
Series 30
23 February 2024
3,251
FY24 Rights – LTI (Sign-on)
30 June 2025
$18.80
The inputs into the calculation of the Rights using the Black Scholes Model are as follows:
30 June 2024
30 June 2023
Weighted average share price
$14.80
$13.48
Expected Volatility
40%
40%
Expected life
3 years
3 years
Risk-free rate
4.09%
3.29%
Expected dividend yields
1.62%
1.90%
The following vesting conditions apply to the FY2023 LTI Scheme Rights:
•
The holder must be either continuously employed by or hold office continually until 30 June 2025;
•
In each of the three financial years ending with the FY2025, the holder must achieve performance ratings of
‘achieving’ and achieve all minimum KPIs as detailed in the performance plan applicable for the relevant year;
•
25% of the Rights are based on the company values ratings over the vesting period;
•
25% of the Rights are based on the individual contribution to delivery of strategic initiatives over the vesting
period; and
•
50% of Rights are subject to the Group achieving the target EPS growth rate over the vesting period.
104 | netwealth Annual Report 2024 For the year ended 30 June 2024
From FY2024 onwards, the following vesting condition apply to the FY2024 LTI Scheme Rights:
•
The holder must be either continuously employed by or hold office continually until 30 June 2026;
•
In each of the three financial years ending with the FY2026, the holder must achieve performance ratings of
‘achieving’ and achieve all minimum KPIs as detailed in the performance plan applicable for the relevant year;
•
30% of the Rights are based on the individual effective execution of Business Plan over the vesting period;
•
35% of Rights are subject to achieving a Total Shareholder Return relative to the Group’s ranking in the
Comparator Group (being the ASX 300 Diversified Financial Index); and
•
35% of Rights are subject to the Group achieving the target EPS growth rate over the vesting period.
The following vesting conditions apply to the FY2024 LTI Scheme Rights (Sign-On):
•
The holder must be either continuously employed by or hold office continually until 30 June 2025; and
•
In both financial years, FY2024 and FY2025, the holder must achieve performance ratings of ‘achieving’ and
achieve all minimum KPIs as detailed in the performance plan applicable for the relevant year.
Vested options
On 25 August 2023, 120,568 ($910,819) Options which vested on 30 June 2022 were exercised and converted to Fully
Paid Ordinary shares.
On 29 February 2024, 7,880 ($59,529) Options which vested on 30 June 2022 were exercised and converted to Fully
Paid Ordinary shares.
In total 128,448 Options were exercised and converted to Fully Paid Ordinary shares during the year (2023: 63,452
Options).
The following vested options remain outstanding at the end of the reporting period:
Series
Grant date
Number
Plan
Expiry Date
Exercise
Price
Fair Value at
Grant Date
Series 14
17 October 2019
305,459
FY20 Options - LTI
30 June 2034
$7.5544
$2.73
Series 15
12 November 2019
78,232
FY20 Options - LTI
30 June 2034
$7.5544
$3.00
Series 16
23 September 2021
1,340,000
FY22 Options - LTI
30 June 2036
$15.74
$3.14
Series 17
23 September 2021
375,000
FY22 Options – LTI
30 June 2036
$15.74
$2.78
Series 18
27 October 2021
75,000
FY22 Options - LTI
30 June 2036
$15.74
$4.52
105 | netwealth Annual Report 2024 For the year ended 30 June 2024
The following vested rights remain outstanding at the end of the reporting period:
Series
Grant date
Number
Plan
Expiry Date
Fair Value at Grant
Date
Series 19
23 September 2021
22,237
FY22 Rights - LTI
N/A
$14.66
Series 20
27 October 2021
23,825
FY22 Rights - LTI
N/A
$17.40
Series 21
19 November 2021
4,686
FY22 Rights - LTI
N/A
$16.27
Material Accounting Policies
Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the
equity instruments at the grant date.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis
over the vesting period, based on the Group's estimate of equity instruments that will vest, with a corresponding movement in
equity. At the end of each reporting period, the Group reviews the company performance, strategic initiatives likely to be
achieved and service conditions to revise its estimate of the number of equity instruments expected to vest at the end of the
vesting period. The impact of the revision to the original estimate is recognised in profit or loss such that the cumulative
expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.
106 | netwealth Annual Report 2024 For the year ended 30 June 2024
24.
Related Party Transactions
The Group’s main related parties are as follows:
24.1 Entities exercising control over the Group
The parent entity, which exercises control over the Group is Netwealth Group Limited.
24.2 Key management personnel
For details of disclosures relating to key management personnel, refer to the Remuneration Report on pages 41 to
58 and Note 7.
24.3 Other related parties
Other related parties include immediate family members of key management personnel and entities that are
controlled or jointly controlled by those key management personnel, individually or collectively with their close
family members.
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated. Balances and transactions between the Company and its
subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed
in this note.
Related parties
Netwealth Investments Limited serves as the Responsible Entity for a number of managed investment schemes
(Netwealth Global Specialist Series) and earns management and ancillary fee revenues.
Consolidated Group
30 June 2024
$
30 June 2023
$
Management and ancillary fees:
Management and ancillary fee revenues
17,483,077
14,033,055
Netwealth Investments Limited holds investments in Netwealth products as follows:
Consolidated Group
30 June 2024
$
30 June 2023
$
Financial assets at FVTPL
Netwealth Wrap and Super
964,257
760,356
107 | netwealth Annual Report 2024 For the year ended 30 June 2024
Related parties with Joint Venture
Netwealth Investments Limited has a distribution agreement with Xeppo where it pays for the usage of Xeppo API
and licenses. The Group has provided a convertible loan facility to Xeppo on an annual interest rate of 5%.
Consolidated Group
30 June 2024
$
30 June 2023
$
Loan held at FVTPL*
Interest earned on Loan
83,590
16,707
Active License Fees:
Technology and communication expenses
100,826
111,000
*Refer to Note 14 about the loan facility provided to Xeppo
108 | netwealth Annual Report 2024 For the year ended 30 June 2024
25.
Cash Flow Note
Reconciliation of cash flow from operations with profit after income tax
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Profit for the year
83,370
67,153
Income tax expense recognised in profit or loss
37,079
29,861
Depreciation & amortisation
3,656
3,279
Share based payment expense
3,002
2,381
Unrealised (gain)/loss on investments
21
(165)
Adjustments on make good provision
(17)
3
Provision on trade receivables
17
-
Interest on Loan
(84)
(17)
Loss on disposal of assets
10
-
(Loss)/gain on disposal of investments
(13)
109
Share of Joint Venture NPAT
269
377
127,310
102,981
Movements in working capital
Increase in trade & other receivables
(4,537)
(3,170)
Decrease in other assets
262
1,455
Increase in trade & other payables
2,430
3,312
Increase in provisions
1,275
1,233
Cash generated from operations
126,740
105,811
Income tax paid
(36,761)
(26,585)
Net cash generated by operating activities
89,979
79,226
109 | netwealth Annual Report 2024 For the year ended 30 June 2024
Reconciliation of liabilities arising from financing activities
FY2024
30 June 2023
$’000
Cash Flows
Non-Cash Changes
30 June 2024
$’000
Acquisitions
New Leases
Lease liabilities
13,586
(1,615)
-
2,945
14,916
Total liabilities from
financing activities
13,586
(1,615)
-
2,945
14,916
FY2023
30 June 2022
$’000
Cash Flows
Non-Cash Changes
30 June 2023
$’000
Acquisitions
New Leases
Lease liabilities
15,087
(1,501)
-
-
13,586
Total liabilities from
financing activities
15,087
(1,501)
-
-
13,586
110 | netwealth Annual Report 2024 For the year ended 30 June 2024
26.
Parent Entity Disclosures
The accounting policies of the parent entity, which have been applied in determining the financial information
shown below, are the same as those applied in the consolidated financial statements. Refer to Note 2 for a summary
of the material accounting policies relating to the Group.
Statement of Financial Position
Parent Entity
30 June 2024
$’000
30 June 2023
$’000
Assets
Cash and cash equivalents
683
367
Current assets
7,280
5,397
Investment in subsidiaries
55,259
52,257
Total assets
63,222
58,021
Liabilities
Current liabilities
15,272
14,119
Total liabilities
15,272
14,119
Net assets
47,950
43,902
Equity
Issued capital
884,439
883,267
Reserves
(826,779)
(829,580)
Retained earnings
(9,710)
(9,785)
Total equity
47,950
43,902
Statement of profit or loss and comprehensive income
Total Profit for the year
65,945
51,270
Total Comprehensive Profit for the year
65,945
51,270
Contractual commitments: At 30 June 2024, the parent entity had not entered into any contractual commitments
for the acquisition of property and equipment or any operating leases (2023: nil).
Contingent liabilities: At 30 June 2024, the parent entity does not have contingent liabilities (2023: nil).
At 30 June 2024, the Statement of financial position for the parent entity reflected a deficit of current assets over
current liabilities by $7.3 million. The Group manages its cash levels by retaining surplus funds in entities outside
the parent entity but within the consolidated group, ensuring necessary funding is available for liabilities as they
arise.
111 | netwealth Annual Report 2024 For the year ended 30 June 2024
27.
Deeds of Cross Guarantee (DOCG)
The wholly owned Australian subsidiaries identified in Note 21 have a deed of cross guarantee with NGL in
accordance with ASIC Corporations (Wholly-Owned Companies) Instrument 2016/785 and are relieved from the
Corporations Act 2001 requirement to prepare and lodge an audited financial report and directors’ report. The
nature of the deed of cross guarantee is such that each company which is party to the deed guarantees to each
creditor payment in full of any debt in accordance with the deed of cross guarantee. The following wholly-owned
subsidiaries became a party to the Deed of Cross Guarantee since April 2019 and remained during the year ended
30 June 2024:
•
Netwealth Holdings Limited;
•
Netwealth Group Services Pty Ltd; and
•
Netwealth Fiduciary Services Pty Ltd, together referred to as the “Closed Group”.
Set out below is the statement of profit or loss and other comprehensive income, statement of financial position
and summary of movement in retained earnings of the Closed Group.
Statement of profit or loss and other comprehensive income
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Platform revenue
139,838
120,476
Other income1
71,716
53,703
Expense
(131,280)
(113,927)
Profit before income tax
80,274
60,252
Income tax expense
(3,742)
(2,917)
Profit for the period
76,532
57,335
Total comprehensive income for the period
76,532
57,335
1Dividends of $70.9m from NIL to the Closed Group, included in Other Income on the Statement of Profit or Loss
and Other Comprehensive Income, are treated as non-assessable income for tax expense purposes.
112 | netwealth Annual Report 2024 For the year ended 30 June 2024
Statement of financial position
Consolidated Group as at
30 June 2024
$’000
30 June 2023
$’000
Assets
Current assets
Cash and cash equivalents
12,200
13,341
Trade and other receivables
2,439
3,459
Other current assets
4,955
3,924
Financial assets at FVTPL
331
117
Total current assets
19,925
20,841
Non-current assets
Property, plant and equipment
1,545
1,445
Intangible assets
9,644
6,506
Lease assets
13,741
12,830
Investment in subsidiaries
91,679
76,179
Financial Assets at FVTPL
2,200
917
Investment in joint venture
1,345
1,614
Deferred tax assets
3,036
2,188
Total non-current assets
123,190
101,679
Total assets
143,115
122,520
Current liabilities
Trade and other payables
11,570
9,320
Provisions
8,664
7,439
Current tax liabilities
6,132
4,978
Lease liability
1,773
1,437
Other current liabilities
37
83
Total current liabilities
28,176
23,257
Non-current liabilities
Lease liability
13,142
12,149
Provisions
996
946
Total non-current liabilities
14,138
13,095
Total liabilities
42,314
36,352
Net assets
100,801
86,168
Equity
Issued capital
28,381
27,228
Reserves
9,363
6,545
Retained earnings
63,057
52,395
Total equity
100,801
86,168
At 30 June 2024, the Statement of financial position for the Closed Group reflected a deficit of current assets over
current liabilities by $8.3 million. The Group manages its cash levels by retaining surplus funds in entities outside the
Closed Group but within the consolidated group, ensuring necessary funding is available for liabilities as they arise.
113 | netwealth Annual Report 2024 For the year ended 30 June 2024
Summary of movements in retained earnings
Consolidated Group
30 June 2024
$’000
30 June 2023
$’000
Retained Earnings at beginning of financial year
52,395
46,269
Profit for the year
76,532
57,335
Dividends paid
(65,870)
(51,209)
Retained earnings at end of financial year
63,057
52,395
28.
Auditor’s Remuneration
Consolidated Group
30 June 2024
$
30 June 2023
$
Fees payable for audit and review of financial reports
Auditor of the Group - Deloitte
Consolidated Group
165,527
143,359
Subsidiaries
94,377
89,883
Total audit and review of financial reports
259,904
233,242
Assurance services
Auditor of the Group - Deloitte
Statutory assurance services
34,222
32,592
Other services
Auditor of the Group - Deloitte
Audit and review of the Funds
286,427
271,730
Audit on Internal Controls (including GS007 and SOC 2)
475,968
152,465
Audit of IDPS and Investor Statements
33,287
31,702
Total fees paid to group auditor
1,089,808
721,731
114 | netwealth Annual Report 2024 For the year ended 30 June 2024
29.
Events Occurring after Reporting Date
Netwealth has entered into a share purchase agreement to acquire the remaining shares in Xeppo on 12 August
2024. The arrangement comprised $5.9 million in cash consideration and a $2.2 million loan from Netwealth to
Xeppo converted into equity. Further information about the acquisition can be found in Note 14.
In the opinion of the Board, there are no other matters or circumstances which have arisen between 30 June 2024
and the date of this report that have significantly affected or may significantly affect the operations of the Group,
the results of those operations and the state of affairs for the Group in subsequent financial periods.
115 | netwealth Annual Report 2024 For the year ended 30 June 2024
Consolidated entity disclosure statement
As at 30 June 2024
Body Corporate
Tax Residency
Entity Name
Entity Type
Place formed
or
incorporated
% of share
capital held
Australian
or foreign
Foreign
Jurisdiction
Netwealth Holdings
Limited
Body Corporate
Australia
100
Australian
N/A
Wealthtech Pty Ltd
Body Corporate
Australia
100
Australian
N/A
Netwealth Investment
Limited
Body Corporate
Australia
100
Australian
N/A
Netwealth Group Services
Pty Ltd
Body Corporate
Australia
100
Australian
N/A
Netwealth Fiduciary
Services Pty Ltd
Body Corporate
Australia
100
Australian
N/A
Netwealth Superannuation
Services Pty Ltd
Body Corporate
Australia
100
Australian
N/A
116 | netwealth Annual Report 2024 For the year ended 30 June 2024
Directors’ Declaration
The Directors declare that:
a.
the attached financial statements and notes in accordance with the Corporations Act 2001, comply with
Accounting Standards, Corporation Regulations 2001 and other mandatory professional reporting
requirements;
b.
the attached financial statements are in compliance with International Financial Reporting Standards, as
stated in Note 1 to the financial statements;
c.
the attached financial statements and notes thereto give a true and fair view of the financial position and
performance of the consolidated entity;
d.
in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable;
e.
the directors have been given the declarations required by s.295A of the Corporations Act 2011; and
f.
in the Director’s opinion, the attached consolidated entity disclosure statement is true and correct.
At the date of this declaration, the company is within the class of companies affected by ASIC Corporations (Wholly
owned Companies) Instrument 2016/785. The nature of the deed of cross guarantee is such that each company
which is party to the deed guarantees to each creditor payment in full of any debt in accordance with the deed of
cross guarantee.
In the directors’ opinion, there are reasonable grounds to believe that the company and the companies to
which ASIC Corporations (Wholly owned Companies) Instrument 2016/785 applies, as detailed in Note 27 to
the financial statements will, as a group, be able to meet any liabilities to which they are, or may become,
subject because of the deed of cross guarantee.
Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the Directors
Timothy Antonie
Chair
13 August 2024
117 | netwealth Annual Report 2024 For the year ended 30 June 2024
Independent Auditor’s Report
118 | netwealth Annual Report 2024 For the year ended 30 June 2024
119 | netwealth Annual Report 2024 For the year ended 30 June 2024
120 | netwealth Annual Report 2024 For the year ended 30 June 2024
121 | netwealth Annual Report 2024 For the year ended 30 June 2024
Five Years Financial Information Summary
We prepare our Consolidated Financial Report in accordance with Australian Accounting Standards Board (AASB)
and in AU dollars. The information in this section has been presented on underlying basis to exclude non-recurring
expenses. The Directors consider it appropriate to include these non-International Financial Reporting Standard
(IFRS) financial information as they assist users of this financial report to understand key financial metrics relevant
to the operations of the Group.
2024
2023
2022
2021
2020
$’000
$’000
$’000
$’000
$’000
Income Statement
Total income
255,248
214,749
176,631
148,298
126,750
Total expenses
(134,799)
(117,735)
(95,521)
(71,067)
(64,005)
Income tax expense
(37,079)
(29,861)
(25,558)
(23,128)
(19,084)
NPAT
83,370
67,153
55,552
54,103
43,661
Statement of Financial Position
Total assets
189,486
161,885
136,204
131,117
111,892
Net assets
144,520
123,049
104,243
93,181
76,029
Cash Flow Information
Underlying Operating Net Cash Flows Before Tax
127,314
106,262
83,712
78,100
64,462
Capital Expenditure
(4,908)
(5,642)
(2,992)
(1,088)
(919)
Shareholder Value
Market Capitalisation1
5,410,239
3,375,131
2,964,735
4,155,211
2,132,084
Dividend (cents) – fully franked
28.0
24.0
20.0
18.6
14.7
Dividend payout ratio
82%
87%
88%
84%
80%
Net tangible assets per ordinary share
55.3
47.8
41.8
37.9
31.9
Basic earnings per share
34.2
27.5
22.8
22.6
18.4
Other Information
No. of Employees (full time equivalent)
539
485
455
364
317
Underlying EBITDA
124,678
100,744
85,092
79,349
66,153
Underlying NPAT
83,370
67,153
55,903
54,103
43,661
Underlying EBITDA Margin %
48.8%
46.9%
48.2%
53.5%
52.2%
Underlying NPAT Margin %
32.7%
31.3%
31.6%
36.5%
34.4%
1 Information presented as at end of period.
122 | netwealth Annual Report 2024 For the year ended 30 June 2024
Shareholder Information
Ordinary Shares (ASX Listed)
The shareholder information set out below was applicable at 26 July 2024.
Distribution of shareholdings
Range
Ordinary
Shares
Number of
shareholders
1-1,000
1,627,863
4,377
1,001-5,000
4,514,351
2,054
5,001-10,000
1,723,276
247
10,001-100,000
3,399,873
146
100,001 and over
232,768,875
37
There were no holder of less than a marketable parcel of ordinary shares.
Top 20 Holders
Rank
Name
Ordinary
shares
% of Issued
Capital
1
Heine Brothers Pty Ltd
102,104,990
41.84%
2
HSBC Custody Nominees (Australia) Limited
37,107,597
15.21%
3
J P Morgan Nominees Australia Pty Limited
23,902,863
9.79%
4
Citicorp Nominees Pty Limited
21,586,749
8.85%
5
Leslie Max Heine Pty Ltd
14,508,265
5.95%
6
Netwealth Investments Limited
11,176,320
4.58%
7
Australian Foundation Investment Company Limited
3,489,034
1.43%
8
National Nominees Limited
3,236,721
1.33%
9
BNP Paribas Noms Pty Ltd
3,076,585
1.26%
10
BNP Paribas Nominees Pty Ltd
2,386,799
0.98%
11
Netwealth Investments Limited
1,457,621
0.60%
12
HSBC Custody Nominees (Australia) Limited
1,364,924
0.56%
13
BNP Paribas Nominees Pty Ltd
854,152
0.35%
14
Palm Beach Nominees Pty Ltd
645,613
0.26%
15
Citicorp Nominees Pty Limited
593,705
0.24%
16
Mirrabooka Investments Ltd
550,162
0.23%
17
UBS Nominees Pty Ltd
448,400
0.18%
18
AMCIL Limited
437,200
0.18%
19
Asset Plus Pty Ltd
421,850
0.17%
Total
229,774,123
94.16%
Balance of register
14,260,115
5.84%
Grand total
244,034,238
100.00%
123 | netwealth Annual Report 2024 For the year ended 30 June 2024
Substantial holders (as at 26 July 2024)
Substantial Holder
Number of Ordinary shares in which
the holder together with their
associates have a relevant interest
Matthew Heine
120,389,660
Nicholas Heine
116,700,005
Michael Heine
116,653,255
Heine Brothers Pty Ltd
116,653,255
Leslie Max Heine Pty Ltd
14,508,265
Ordinary shares voting rights
At a general meeting of the Company, every shareholder present in person or by proxy has on vote on a show of
hands. Upon a poll, each share has one vote.
On-market buy-back
Currently the Company does not have an on-market buy back scheme in operation.
124 | netwealth Annual Report 2024 For the year ended 30 June 2024
Company Information
Netwealth Group Limited
ABN 84 620 145 404
Registered Office
Level 6, 180 Flinders Street
Melbourne, Victoria, 3000
Phone: 1800 888 223
Email: contact@netwealth.com.au
Shareholder Enquiries
Email: shareholder@netwealth.com.au
Website: https://www.netwealth.com.au/web/about-netwealth/shareholders/
Auditor
Deloitte Touche Tohmatsu
477 Collins Street
Melbourne, Victoria, 3000
Phone: +61 3 9671 7000
Fax: +61 3 9671 7001
Stock Exchange
Netwealth’s shares are listed on the ASX with the code ‘NWL’
Share Registry
Netwealth’s register of shares is maintained by Link Market.
Link Market Services Limited
Level 13, Tower 4
727 Collins Street
Docklands VIC 3008
Locked BagA14
Sydney South NSW 1235
+61 1300 554 474
registrars@linkmarketservices.com.au
www.linkmarketservices.com.au
125 | netwealth Annual Report 2024 For the year ended 30 June 2024