Slide 1: ASX cover letter: 2005 Full Year Results Investor Presentation
23 February 2006 The Manager Company Announcements Office Australian Stock Exchange 10" Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam 2005 Full Year Results — investor Presentation Please find attached a copy of an investor presentation on the Company's results for the
Slide 2: Results Presentation Full Year to 31st December 2005
MARKET TECHNOLOGY Results Presentation Full Year to 31st December 2005 ress MARKET TECHNOLOGY February 2006
Slide 3: Group Performance
iress MARKET TECHNOLOGY Group Performance Adjusted Group Profit $24.892 m Up $4.117 million, 19.8% on PCP Segment Contribution against PCP >Information Services Contribution >XPLAN Contribution >Canada JV $3.408 83% $1.042 25% ($0.333) (8)% $4.117 100% > Final dividend 11.5 cents, fully franked (200
Slide 4: Segment Performance Against Prior Half
iress MARKET TECHNOLOGY Segment Performance Against Prior Half v Information Services Financial Planning Canadian JV Strategic Amortisation »>XPLAN » Canadian JV Non Recurring “Published” PAT 16.4% increase in profit maiden FY profit $.010m contribution as fixed cost base moves to production levels
Slide 5: Review of Group Subscription Rev
iress MARKET TECHNOLOGY $m Review of Group Subscription Rev 30.0 4 25.0 4 20.0 | 15.0 | 10.0 + 5.0 4 H1'01 H2'01 H1°02 H2'02 H1'03 H2'03 H1'04 H2'04 H1'05 B lress Recurring M Xplan Recurring H& Canada Recurring H1'05
Slide 6: PCP change in Group Sub Rev
iress MARKET TECHNOLOGY PCP change in Group Sub Rev 3.0 5 25 4 Acquisition of existing business as part of Cad JV in Apri?04 Xpian acquired Mar 03 as start up operation H2'01 H1'02 H2'02 H1'03 H2'03 H1'04 H2'04 H1'05 H2'05 lress Recurring O Xplan Recurring @ Canada Recurring
Slide 7: Review of Operations and Outlook
iress MARKET TECHNOLOGY Review of Operations and Outlook > Info & Trading Systems > Year on year growth virtually replicates 2004 > Trading activity levels remain consistently strong across all levels (institutional, retail and online) » Increased recent M&A activity also boosts our client base. » S
Slide 8: Review of Info Services Rev
iress MARKET TECHNOLOGY Review of Info Services Rev 30 4 25 7 20 7 15 7 $m 10 Subsciption Revenue News, Royalty & Comms H1’01 to H2’05
Slide 9: Info Services Rev — split by type
6 I¥ESS || Info Services Rev — split by type. lress+ Services Trading Services Hardware/DR Other News, Royalty & Comms H1’01 to H2’05
Slide 10: PCP change in Info Services Rev
iress MARKET TECHNOLOGY PCP change in Info Services Rev 3.5 4 3.0 4 25 4 2.0 4 1.5 4 $m 1.0 4 H2'01 (0.5) | H1'02 H2'02 H1'03 H1'04 H2'04 H1'0S H2'05 lress+ Services O Trading Services @ Hardware/DR Other @ News, Royalty & Comm:
Slide 11: Core Business Highlights 2005
iress MARKET TECHNOLOGY Core Business Highlights 2005 => Trade Adverts > Major focus since the implementation of the anonymous market > Very strong take up from major brokers post introduction of security features > Confident will provide a unique and valuable product for our wholesale clients > FIx
Slide 12: Core Business Highlights (cont)
iress MARKET TECHNOLOGY Core Business Highlights (cont) > ETC’s > Fully established at around 50k per month > Custodian very supportive and will assist in further growth in’06 > Retail portfolio system (IPS) > Fully established with a substantial and installed base » Providing value add potential in
Slide 13: Contracts for Difference (CFDs)
iress MARKET TECHNOLOGY Contracts for Difference (CFDs) > Our CFD development in IOS webIRESS has proven very timely, with the concept truly taking hold in Australia during ’05 > DMA-CFD’s obtaining strong user acceptance (relative to earlier market maker model) > We believe we have the leading DMA
Slide 14: Development / Architecture
iress MARKET TECHNOLOGY Development / Architecture > Completed development across all products for ASX move to Click XT. Internal testing in progress with beta versions to major clients shortly. Comfortable with ASX timeframes > Staged redevelopment of our IOS and FIX core technology well progressed
Slide 15: Daily Trades on SEATS (ASX)
Daily Trades on SEATS (ASX) 180 5 160 5 Thousands 140 4 120 5 100 4 80 4 98 99 00 01 02 03
Slide 16: Trading Volumes - Implications
iress MARKET TECHNOLOGY Trading Volumes - Implications = Average number of trades on SEATS this year approaching a record 140,000 trades per day > Activity levels well above “tech-boom” demonstrating that the expanded network capacity and other enhancements implemented since then have been effective
Slide 17: Financial Planning - XPLAN
iress MARKET TECHNOLOGY Financial Planning - XPLAN > Exceptional performance in '05 > More than doubled revenue » Moved to pre-tax profit of close to $1.0m » Proven ongoing client acquisition, installation and servicing capability > Cost base has stabilised > Outlook for 06 > Revenue momentum mainta
Slide 18: Xplan — Product Outlook
iress MARKET TECHNOLOGY Xplan — Product Outlook => Complete & continued organic growth => Ongoing conversion of already signed / committed new clients Continued development and product extension > User-driven > Operational efficiency gains are a focus » Competitive feature advantages » Integration w
Slide 19: Review of Xplan Subscription Rev
iress MARKET TECHNOLOGY Review of Xplan Subscription Rev 3.0 5 2.5 5 2.0 - 15 5 $m 1.0 - 0.5 5 | Xplan Recurring Xpian Non-recurring H1’03 to H2’05
Slide 20: Xplan Gross Operational Revenue
iress MARKET TECHNOLOGY Xplan Gross Operational Revenue 500 Thousands a toa) iw} T Jul-O3. Oct-03. dan-04 0 Apr-04 — Jul-O4— Oct-04 Jan-05—— Apr-05 — Jul-05 Oct-05
Slide 21: PCP change in Xplan Subscription Rev
iress MARKET TECHNOLOGY PCP change in Xplan Subscription Rev $m H1'03 H2'03 H1'04 H2'04 H1'05 H2'05 Recurring Mi Non-recurring
Slide 22: Canadian Joint Venture
iress MARKET TECHNOLOGY Canadian Joint Venture > 2005 a transforming year > Completed development of Canadian tailored IRESS and IOS versions > Installed to a wide range of live beta users. Feed back used to tune and polish the product > Now converting an increasing number of these beta testing lice
Slide 23: Canadian Joint Venture - Outlook
iress MARKET TECHNOLOGY Canadian Joint Venture - Outlook » Growth opportunities within original seed client group are significant. Will be the main source of revenue growth throughout 2006 > Some delays with development and client implementation. Impacts only timing, not potential which has only fir
Slide 24: Dividends
iress MARKET TECHNOLOGY Dividends » Final Dividend 11.5 cents (18.0 cents full year) > Full franked > Payable 30 March 2006 => Based on VWAP price for 12 months to Dec 05 of $4.21 > Dividend yield 4.3% » Adjusted for franking credits 6.1% > Franking credit balance $11.698m (2004: 10.180m)
Slide 25: Capital Management
iress MARKET TECHNOLOGY Capital Management = Continued high dividend payout > 80% of earnings before strategic charges => Encouraging opportunities for rationalisation in Canadian marketplace > The company remains open to acquisition and joint venture opportunities where these are consistent with ou
Slide 26: Headcount
iress MARKET TECHNOLOGY Headcount Staff related costs are our largest operating expense. 180 5 160 + 140 + 120 + 100 + 60 | 40 20 7 | Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Full time equivalent staff B Info Services ® Financial Planning O Canada
Slide 27: Strategic Charges
iress MARKET TECHNOLOGY Strategic Charges => Only relates to goodwill & other intangible non-current assets arising through the acquisition of a business or company > Xplan > Software (A$11.034 m expensed over 5 years to March 08) > KTG Tech Corp. > Software (A$2.970 m expensed over 21 months to Dec
Slide 28: Iress Market Technology
jress MARKET TECHNOLOGY mess MARKET TECHNOLOGY