Iress Limited · ASX:IRE
Iress — Morgan Stanley Emerging Companies Conference 2010
29 slides from Iress's conference presentation, Jun 10, 2010
Slide 1: Morgan Stanley Emerging Companies Conference
June 2010 For personal use only Morgan Stanley Emerging Companies Conference June 2010
Slide 2: IRESS 2009 Results
June 2010 IRESS 2009 Results For personal use only • Adjusted Group profit $53.6 million (2008: $48.5m, up 10.5%) • Resilient performance through the financial crisis, with Revenue up 3.4% and EBITDA up 8% on 2008. • Common strategy across all businesses of long term client retention shows its value
Slide 3: Segment Performance Against Prior Half
June 2010 Segment Performance Against Prior Half For personal use only Financial Markets Wealth Management Aust & NZ Aust & NZ • Op Rev down .1% (down 0.6% on PY) • Op Rev down 0.8% (up 5.0% on PY) • EBITDA up 1.0% (up 2.7% on PY) • EBITDA up 1.6% (up 10.9% on PY) • PAT up 2.8% (up 5.0% on PY) • PAT
Slide 4: Group Performance Against Prior Year
June 2010 Group Performance Against Prior Year For personal use only • Adjusted Group Profit $53.631 m Up $5.091 million, 10.5% on prior year • Segment Contribution against prior year $A % • Financial markets Aust/NZ 1.814 35 • Financial markets Canada 1.725 34 • Wealth Management Aust/NZ 1.252 25 •
Slide 5: EBITDA Margins
June 2010 EBITDA Margins For personal use only •Margin improvement in 2009 largely due to reductions in discretionary staff compensation. •In our mature businesses we anticipate margins reverting over time to historical levels as revenue growth returns. 5
Slide 6: Review of Group Recurring Subscription Revenue
June 2010 Review of Group Recurring Subscription Revenue For personal use only 6
Slide 7: Review of Group EBITDA
June 2010 Review of Group EBITDA* For personal use only 7
Slide 8: Relative Impact H2'09
June 2010 Relative Impact H2’09 For personal use only 8
Slide 9: Operating Cashflow per share
June 2010 Operating Cashflow per share* For personal use only Cash generation from the business continues to be very strong * Calculated as Net Cash from Operations ÷ No shares on issue at end of year 9
Slide 10: IRESS Group Outlook
June 2010 IRESS Group Outlook For personal use only • Growth in 2009 moderated by impacts of crisis • Weakened late 2008 and stabilised over 2009 • All divisions impacted, most marked in Financial Markets A&NZ • Canada and Wealth Management successfully offset cancellations • Sensible cost control t
Slide 11: Daily Trades on the ASX
June 2010 Daily Trades on the ASX For personal use only 11
Slide 12: Financial Markets – 2010
June 2010 Financial Markets – 2010 For personal use only • IOS+ progress: • Major institutional OMS enhancements nearing completion • ASIC short net position enhancements now available for ASIC go-live • New opportunities emerging for BMR with crossing engine and internalisation • IOS+ retail platfo
Slide 13: Financial Markets – Multi-market readiness
June 2010 Financial Markets – Multi-market readiness For personal use only • Regulatory transitions advancing, and on-track for July. Chi-X confident of 2010 Q4 go-live. • Range of IRESS products in production and already multi-market proven. Leverages Canadian experience (>3 yrs, >60% of participan
Slide 14: Financial Markets – Multi-market readiness
June 2010 Financial Markets – Multi-market readiness For personal use only • ASX enhancements • Centrepoint Match go-live June 28 • Automated checking on Centrepoint through IRESS BMR will be available • Undisclosed, Iceberg orders and Volume Match reporting also supported from go-live • Network upg
Slide 15: Australia Financial Markets - Outlook
June 2010 Australia Financial Markets - Outlook For personal use only • 2010 outlook: • Growth has continued during H1, though still below pre-crisis levels. • IRESS gross cancellations remain at pre-crisis levels. • Lower but returning revenue growth, expect positive EBITDA growth in H1 • Cost base
Slide 16: Australia Financial Markets – Monthly Subscription Revenue
June 2010 Australia Financial Markets – Monthly Subscription For personal use only Revenue 16
Slide 17: Change in Australia Financial Markets Revenue
June 2010 Change in Australia Financial Markets Revenue For personal use only 17
Slide 18: Daily trades in Canada
June 2010 Daily trades in Canada* For personal use only Alpha commenced H2'08 Chi-X commenced H1'08 TriAct & Omega commenced H2'07 Pure Market commenced H1'07 *Common Base calculation has zero impact for initial start phase of new markets 18
Slide 19: Comparative Message Rates
June 2010 Comparative Message Rates (per trade per destination) For personal use only Measured over 8 weeks to 30 April 2010. 19
Slide 20: Average Daily Trades
June 2010 Average Daily Trades For personal use only Measured over 8 weeks to 30 April 2010. 20
Slide 21: Canada – 2010
June 2010 Canada – 2010 For personal use only • 41 of the top 50 brokers have at least one IOS+ in use,. • All Canadian broker clients use IRESS BMR • Institutional order management projects nearing final stages for 2010 delivery with growing demand for IOS+ smarts incl automated crossings. • Buysid
Slide 22: Canada - Outlook
June 2010 Canada - Outlook For personal use only • H1 2010 outlook: • Run rate started ahead of H2 2009 average • Revenue increases have continued • Costs at levels appropriate for product initiatives currently underway. • EBITDA growth anticipated to continue • Conditions improving with trading vol
Slide 23: Canada – Monthly Subscription Revenue
June 2010 Canada – Monthly Subscription Revenue* For personal use only Pre-IRESS full production level offering *Assumes 100% ownership 23
Slide 24: Financial Markets – Asia
June 2010 Financial Markets – Asia For personal use only • Decision to organically invest in expanding Asian capability and seek seed client opportunities which will guide funding. • Good progress has been made so far: • Expanded international market data range now available for 25 markets in all IR
Slide 25: Wealth Management - 2010
June 2010 Wealth Management - 2010 For personal use only • Regulatory dynamics driving demand for efficiencies via technology • intra-fund advice – reduced ‘cost to deliver’ • richer and broader datafeeds • integrated revenue management solutions • AFSL and ACL opportunities • eApplications: • Two m
Slide 26: Wealth Management Outlook
June 2010 Wealth Management Outlook For personal use only • Australia & New Zealand • Growth has continued during H1. • Efficiency and cost remain key drivers for activity, against uncertainty from regulatory changes and consolidation • Expect revenue growth to produce positive EBITDA growth in H1.
Slide 27: Wealth Management – Aust & NZ Monthly Subscription Revenue
June 2010 Wealth Management – Aust & NZ Mthly Subscription Rev For personal use only 27
Slide 28: Wealth Management – Asia
June 2010 Wealth Management – Asia For personal use only • SENTRYi acquisition in January 2010 provides presence and base on which to build wealth management in Asia. • Immediate opportunities to add sales and account management staff to progress growth via SENTRYi point of sales software tool. • XP
Slide 29: For personal use only
MARKET TECHNOLOGY TT (ous ° me *3 I www.iress.com.au
IRESS — Morgan Stanley Emerging Companies Conference 2010 on 6ix