Iress Limited · ASX:IRE
Iress — Macquarie Emerging Leaders Presentation (May 2007)
35 slides from Iress's conference presentation, May 7, 2007
Slide 1: Macquarie Emerging Leaders Presentation
ress MARKET TECHNOLOGY Macquarie Emerging Leaders Presentation ress MARKET TECHNOLOGY May 2007
Slide 2: IRESS Group Overview
ress MARKET TECHNOLOGY IRESS Group Overview v VVUUVVV Technology and information provider to financial markets and investment community Front and middle office focus High proportion of Recurring Subscription Revenue Service focus, very low client turnover Mostly fixed cost structure : scale producin
Slide 3: IRESS Business Breakdown
iress MARKET TECHNOLOGY IRESS Business Breakdown => Australian and New Zealand Equities and Derivatives » Original IRESS operation serving mainly stock brokers and investment managers. Very strong position in market data, institutional order management and associated front and middle office products
Slide 4: Group Recurring Subscription Revenue
ress MARKET TECHNOLOGY $m Group Recurring Subscription Revenue 45.0 4 40.0 4 36.0 5 30.0 5 25.0 4 20.0 4 15.0 4 10.0 + 6.0 + HOt 2°01 A102, 202-103) H2'03- 104204105205 ress Recurring Xplan Recurring [Canada Recurring H1'06 H2'06
Slide 5: IRESS Group EBITDA
iress MARKET TECHNOLOGY IRESS Group EBITDA HOT = H201 02,2203 203 T0424 HDS 205 HDG 206
Slide 6: Revenue by Division
ress MARKET TECHNOLOGY Revenue by Division 2002 2003 2004 2005 2006 2007 @ Information and Trading Services @ Wealth Management OCanada
Slide 7: EBITDA by Division
ress MARKET TECHNOLOGY EBITDA by Division 2002 2003 2004 2005 2006 2007 @ Information and Trading Services @ Wealth Management OCanada
Slide 8: IRESS Solutions
ress MARKET TECHNOLOGY IRESS Solutions Broker Adviser Platform Planner Adviser Platform IRESS / 10S IPS Portfolio Management VISIPLAN / XPLAN System Premium market data Real-time execution Equities — Local and Comprehensive CRM FSRA Order Management — International —) Financial Modeling Multi-market
Slide 9: Daily Trades on the ASX
iress MARKET TECHNOLOGY Daily Trades on the ASX 2 BR jl Millions 0.35 5 0.37 98 99 00 o1 02 03
Slide 10: Australian Equities Business Overview
ress MARKET TECHNOLOGY Australian Equities Business Overview > IRESS market data desktop the standard for Australian equity professionals > IOS order routing hub 95%+ broker participation. Virtually all intuitions are users for block reporting, heavy penetration for lOl’s, bookings and more recently
Slide 11: Australian Equities Systems Review
J fr@SS|| Australian Equities Systems Review > 2006 year on year growth virtually replicates 2005 » Revenue growth across all products. In % terms WebIRESS. FIX and FTS highlights. IRESS desktop the major absolute contributor > Competitors present at bottom end of market data and top end of order ma
Slide 12: PCP change in Info Services Revenue
ress MARKET TECHNOLOGY PCP change in Info Services Revenue 4.0 3.5 3.0 25 2.0 $m 1.5 1.0 0.5 dol (0.5) H2'01 HI'02 H2'02) H1'03 H2'03 H1'04 H2'04 H1'05 H2'05 H1'06 = H2'06 lress+ Services O Trading Services
Slide 13: Info Services — Monthly Subscription Revenue
iress|| 'nfo Services — Monthly Subscription MARKET TECHNOLOGY Revenue ($Million) g o Millions & a 40 35 3.0 2.5 T T r r Jan-03 Jan-04 Jan-05 Jan-06 Jan-07
Slide 14: Info Services: Strategy in 2007
iress MARKET TECHNOLOGY Info Services : Strategy in 2007 FIX+ release. Sets new DMA standard Gradual expansion of new lOS+ Focus on intermediaries IPS enhanced as premium retail SMA / IMA solution FTS+ expands scope of buy-side product Entrench retail broking presence via integration VVUVUNVVY Suppo
Slide 15: Info Services: ECN Opportunity
ress MARKET TECHNOLOGY Info Services : ECN Opportunity > NZ Exchange ECN creates a multi-venue trading environment in Australia. » IRESS to offer a market access product based around IOS+: » Single system to connect for ASX, ECN and any new venue » Automated integration of orders and executions from
Slide 16: Wealth Management Solutions
iress MARKET TECHNOLOGY Wealth Management Solutions > More than doubled revenue. Strong organic growth and by acquisition > PlanTech acquisition Sept 06 > VisiPlan acquisition March 07 > Clear leader in fo software solutions > Independent surveys rank Xplan/PlanTech/Visi highly > Independence a key
Slide 17: General Practitioner
ress MARKET TECHNOLOGY General Practitioner cn
Slide 18: Strategy
ress MARKET TECHNOLOGY Strategy » Risk Researcher integration to Xplan & Visi > AppCentral > “STP” for insurance applications +» Multi-applications > CommPay +» Dealer payment and reporting system » Integration is key differentiator > Debt > Analysis Tools +> Qualifier >» E-app > Connectivity » Inve
Slide 19: Staff Numbers
iress MARKET TECHNOLOGY Staff Numbers 41, 27% 36, 24% { Xplan @ PlanTech Visi 76, 49%
Slide 20: Revenue Contribution
ress MARKET TECHNOLOGY Revenue Contribution © Xplan @ PlanTech Visi
Slide 21: Subscription Revenue
ress MARKET TECHNOLOGY Subscription Revenue 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Revenue Growth [—=xpian jus. Plan Tech j= VisiPan 2003 {A} 2004 (A) 2005 (A) 2006 (A) 2007 (B)
Slide 22: Visi
ress MARKET TECHNOLOGY Visi @ PlanTech fl Xplan Users
Slide 23: Connectivity
ress MARKET TECHNOLOGY Connectivity =» Key focus for all participants > > > > > Driven by investments to date Focus on downstream to date Both directions now on the table External Platform Interface (EPI) —catalyst for increased awareness down and up EPI driven by vendors and will continue. > IRESS
Slide 24: South Africa
ress MARKET TECHNOLOGY South Africa > Installed desktop software. Key clients. > Moved to direct distribution & support (March 2007). Expanded support resources. > Good initial interest in web-delivered alternative. > Remote geography > Compliance > Desktop alternatives short-sighted > Global trends
Slide 25: Canada Business Overview
ress MARKET TECHNOLOGY Canada Business Overview > Entered joint venture with ITG is 2004 to acquire KTG execution terminal business and scale with IRESS technology > Followed by development and release of IRESS / IOS in Canadian form to iniyial seed client group. = In 2006 expanded our position in C
Slide 26: Canada Business: Status
ress MARKET TECHNOLOGY Canada Business : Status > Business scaled up significantly following move to 100% ownership and signing of CX Trader conversion arrangement. > Agreement with TSX will provide our clients with uniquely low latency => Best Market Router is complete and in final testing. Believe
Slide 27: Canada — CX Trader
ress MARKET TECHNOLOGY Canada — CX Trader =» CX Trader OE product fully complete: > 90% plus of CX OE revenue signed worth over C$2.5 million over half yet to be installed. Complete by July > Most contracts include additional sales of IRESS products > Client acceptance at user level strong. > CX OMS
Slide 28: Canada: Outlook
iress MARKET TECHNOLOGY Canada : Outlook > Contracted CX OE revenue alone will push growth to over C$10m annualised. > Costs will reach an annualised level of around C$9m at the end of this year. Expect to enter 2008 with material EBITDA margin in place. =» Retail OMS prospects, NATM growth and othe
Slide 29: Canada - Monthly Subscription Revenue
6 - . iress|| Canada - Monthly Subscription MARKET TECHNOLOGY Reven ue* » 9-650 4 c 2 s a q 9600 4 oO Pre-IRESS full production level offering ¢ > 0.550 4 0.500 | 0.450 4 * Assumes 100% ownership 0.400 r r Apr-04 Apr-05 Apr-06
Slide 30: Review of Group Operating Expenses
iress Review of Group Operating Expenses MARKET TECHNOLOGY Info Services aComms & Other S m General Administration Expenses g 9 C1 Occupancy Expenses 2 ; O Hardware & Software Expenses ; m@ Other Employee Related Expenses 3 @ Total Direct Staff Costs (Inc AL) ' HI 08 HH 04 HOS HH'O6 Financial Planni
Slide 31: Breakdown of operating expenses H2 2006
ress MARKET TECHNOLOGY Breakdown of operating expenses H2 2006 Info Services @ Total Direct Staff Costs (Inc AL) m@ Other Employee Related Expenses Oi Hardware & Software Expenses i UO Occupancy Expenses m@ General Administration Expenses Comms & Other FinPlan Canada (CAD) 2% 1% 6% 1% i
Slide 32: Share price vs S&P/ASX
Share price vs S&P/ASX 200 simmons FRE SS sim S & PPAS X ZOO MARKET TECHNOLOGY
Slide 33: Dividends
ress MARKET TECHNOLOGY Dividends > Final Dividend 13 cents (21.0 cents full year) > Full franked > Payable 30 March 2007 > Based on VWAP price for 12 months to Dec 06 of $5.88 » Dividend yield 3.6% > Adjusted for franking credits 5.1% = Franking credit balance $14.553m (2005: 11.220m)
Slide 34: Capital Management
iress MARKET TECHNOLOGY Capital Management > Continued high dividend payout » 80% of earnings before strategic charges => Encouraging opportunities: >» Domestic >» Canada > South Africa > The company remains open to acquisition and joint venture opportunities where these are consistent with our inve
Slide 35: mess
jress MARKET TECHNOLOGY mess MARKET TECHNOLOGY
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