Iress Limited · ASX:IRE

Iress — H1 2013 Earnings Presentation

38 slides from Iress's earnings presentation, Aug 6, 2013

  1. Slide 1: ASX cover letter for half year presentation

    6 August 2013 For personal use only The Manager Company Announcements Office Australian Stock Exchange Exchange Centre 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam IRESS 2013 Half Year Financial Report - Presentation Please find attached a Presentation relating to the comp

  2. Slide 2: Half Year Results - June 2013

    Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2013 For personal use only HALF YEAR RESULTS - JUNE 2013

  3. Slide 3: IRESS H1 Results

    Presentation Title| Subtitle (change on master slide) IRESS H1 13 RESULTS HALF YEAR RESULTS – JUNE 2013 For personal use only • Group revenue (before investments) up 1.1% on H2 12, up 1.1% pcp. • Outperformance by Wealth Management Australia • Resilient result in light of conditions. • Group Segment

  4. Slide 4: Segment Performance Against Prior Half

    Presentation Title| Subtitle (change on master slide) SEGMENT PERFORMANCE AGAINST PRIOR HALF HALF YEAR RESULTS – JUNE 2013 REGIONS For personal use only • Fin Mkts: Aust & NZ • Wealth Mngt : Aust & NZ • Op Rev down 1.3% (down 1.9% on PY) • Op Rev up 6.5% (up 13.5% on PY) • Seg Profit down 6.2% (down

  5. Slide 5: Group Performance Against Prior Half

    Presentation Title| Subtitle (change on master slide) GROUP PERFORMANCE AGAINST PRIOR HALF HALF YEAR RESULTS – JUNE 2013 For personal use only • Underlying Group Profit $26.116 m Down $0.512 m, down 1.9% on prior half • Segment Contribution against prior half $A • Financial Markets Aust/NZ (1.448) •

  6. Slide 6: Group Segment Profit Margins

    Presentation Title| Subtitle (change on master slide) GROUP SEGMENT PROFIT MARGINS HALF YEAR RESULTS – JUNE 2013 For personal use only Segment Profit Margin: % Revenue per Media Release H2 2011 H1 2012 H2 2012 H1 2013 2010 2011 2012 Aust 50.6% 49.7% 50.0% 47.5% 56.3% 51.7% 49.9% Fin Mkts Can (CAD) 3

  7. Slide 7: Non-Recurring & Strategic Charges

    Presentation Title| Subtitle (change on master slide) NON-RECURRING & STRATEGIC CHARGES HALF YEAR RESULTS – JUNE 2013 For personal use only • Non-recurring expenses before tax of ($1.829)m, includes: • (2.220) acquisition and potential acquisition costs primarily relating to Avelo • 0.102 other non-

  8. Slide 8: Group Recurring Subscription Revenue

    Presentation Title| Subtitle (change on master slide) GROUP RECURRING SUBSCRIPTION REVENUE* HALF YEAR RESULTS – JUNE 2013 For personal use only 80 60 $A Millions 40 20 - H1'08 H1'09 H1'10 H1'11 H1'12 H1'13 Aust - Fin Mkts Aust - Wlth Mgt Canada South Africa Asia UK 7 * Excludes revenues on recoverie

  9. Slide 9: Group Segment Profit

    Presentation Title| Subtitle (change on master slide) GROUP SEGMENT PROFIT * HALF YEAR RESULTS – JUNE 2013 For personal use only 50 40 30 $A Millions 20 10 - H1'08 H1'09 H1'10 H1'11 H1'12 H1'13 -10 Aust - Fin Mkts Aust - Wlth Mgt Canada South Africa ASIA UK * Definition of Segment Profit as per IRES

  10. Slide 10: Relative Impact H1

    Presentation Title| Subtitle (change on master slide) RELATIVE IMPACT H1 13 HALF YEAR RESULTS – JUNE 2013 For personal use only 100% 80% 60% 40% 20% 0% -20% Revenue (Recurring Segment Prof it* Total Direct Staf f Total Strategic Subs) Costs Charges Aust - Fin Mkts Aust - Wlth Mgt Canada South Af ric

  11. Slide 11: Operating Cashflow Per Share

    Presentation Title| Subtitle (change on master slide) OPERATING CASHFLOW PER SHARE* HALF YEAR RESULTS – JUNE 2013 For personal use only $0.70 40% $0.60 35% $0.50 Effective Tax Rate cents per share $0.40 30% $0.30 $0.20 25% $0.10 $0.00 20% 2003 2005 2007 2009 2011 2013 H1 H2 Effective Tax Rate (RHS)

  12. Slide 12: IRESS Group Outlook

    Presentation Title| Subtitle (change on master slide) IRESS GROUP OUTLOOK HALF YEAR RESULTS – JUNE 2013 For personal use only • Full year 2013 result (before impact of Avelo) will be impacted by: • Annualised impact of subscription revenue reductions in 2012. • Increases in our organic investments.

  13. Slide 13: Australia & NZ: Financial Markets

    Presentation Title| Subtitle (change on master slide) AUSTRALIA & NZ: FINANCIAL MARKETS HALF YEAR RESULTS – JUNE 2013 For personal use only • Reduced H1 13 result from flatter revenue: • Revenue decreased 1.3% on H2 12 (down 1.9% pcp) • Segment Profit decreased 6.2% on H2 12 (down 6.2% pcp) • Segmen

  14. Slide 14: Australia & NZ: Financial Markets

    Presentation Title| Subtitle (change on master slide) AUSTRALIA & NZ: FINANCIAL MARKETS HALF YEAR RESULTS – JUNE 2013 For personal use only • Steady interest in multi-market deployments post ASIC best execution compliance in March. • OTW popular as primary trading terminal replacing ASX ITS, in plac

  15. Slide 15: Daily Trades on the ASX

    Presentation Title| Subtitle (change on master slide) DAILY TRADES ON THE ASX HALF YEAR RESULTS – JUNE 2013 For personal use only 600 500 400 300 200 100 0 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Number of Trades Value of Trades 14

  16. Slide 16: Financial Markets - Subscription Revenue

    Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS –SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2013 For personal use only 8.0 7.0 6.0 $A Millions 5.0 4.0 3.0 2008 2009 2010 2011 2012 2013 Up to July 2013 15

  17. Slide 17: Australia & NZ: Wealth Management

    Presentation Title| Subtitle (change on master slide) AUSTRALIA & NZ: WEALTH MANAGEMENT HALF YEAR RESULTS – JUNE 2013 For personal use only • Very strong recurring revenue growth, delivery and integrated service continues to deliver: • Revenue increased 6.5% on H2 12 (up 13.5% on pcp) • Segment Prof

  18. Slide 18: Australia & NZ: Wealth Management

    Presentation Title| Subtitle (change on master slide) AUSTRALIA & NZ: WEALTH MANAGEMENT HALF YEAR RESULTS – JUNE 2013 For personal use only • Integrated private wealth, advice and trading capability of PWM proving to be differentiated and competitive. • Demand for Client Online Access is a key aspec

  19. Slide 19: Wealth Management - Subscription Revenue

    Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT – SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2013 For personal use only 6.0 5.0 4.0 $A Millions 3.0 2.0 1.0 0.0 2008 2009 2010 2011 2012 2013 Up to July 2013 18

  20. Slide 20: Canada - Overview

    Presentation Title| Subtitle (change on master slide) CANADA - OVERVIEW HALF YEAR RESULTS – JUNE 2013 For personal use only • Continued pressure in client base reflected in financial result: • Revenue (CAD) decreased 1.1% on H2 12 (down 10.8% on pcp) • Segment Profit (CAD) decreased 11.2% on H2 12 (

  21. Slide 21: Canada - Overview

    Presentation Title| Subtitle (change on master slide) CANADA - OVERVIEW HALF YEAR RESULTS – JUNE 2013 • Despite challenging markets, opportunities exist with large dealers to continue middle For personal use only office automation to reveal business savings. • Subsequent to TMX acquisition of ALPHA,

  22. Slide 22: Daily Trades in Canada

    Presentation Title| Subtitle (change on master slide) DAILY TRADES IN CANADA* HALF YEAR RESULTS – JUNE 2013 For personal use only 600 Alpha commenced H2’08 Chi_X 500 commenced H1’08 Common Base from 2007 Pure Market 400 commenced H1’07 300 Triact & Omega commenced H2’07 200 100 - Jan-07 Jan-08 Jan-0

  23. Slide 23: Canada - Monthly Subscription Revenue

    Presentation Title| Subtitle (change on master slide) CANADA – MONTHLY SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2013 For personal use only 1.6 CAD$ Millions 1.2 0.8 0.4 2008 2009 2010 2011 2012 2013 *Assumes 100% ownership Up to July 2013 22

  24. Slide 24: South Africa

    Presentation Title| Subtitle (change on master slide) SOUTH AFRICA HALF YEAR RESULTS – JUNE 2013 For personal use only • Very strong South African result across segments: • Total revenue increased 8.3% (ZAR) on H2 12 (up 12.3% pcp) • Segment Profit increased 17.8% (ZAR) on H2 12 (up 12.5% pcp) • Res

  25. Slide 25: South Africa

    Presentation Title| Subtitle (change on master slide) SOUTH AFRICA HALF YEAR RESULTS – JUNE 2013 For personal use only Financial Markets • IRESS Pro desktop offering international market data and trading a key differentiator. Positive feedback against under-invested local vendors & expensive interna

  26. Slide 26: South Africa - Monthly Subscription Revenue

    Presentation Title| Subtitle (change on master slide) SOUTH AFRICA – MONTHLY SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2013 For personal use only 16 ZAR Millions Monthly Subs Rev excluding Message volumes 16 12 ZAR Millions 12 8 Jan 12 Jul 12 Jan 13 Jul 13 8 Feb 11 Jun 11 Oct 11 Feb 12 Jun 12 Oc

  27. Slide 27: Investments: Asia

    Presentation Title| Subtitle (change on master slide) INVESTMENTS: ASIA HALF YEAR RESULTS – JUNE 2013 For personal use only • Increased presence and awareness as footprint expands. • CFD trading platform now entrenched amongst majority of local SG brokers. • Seed broking client for front to back cas

  28. Slide 28: Investments: United Kingdom

    Presentation Title| Subtitle (change on master slide) INVESTMENTS: UNITED KINGDOM HALF YEAR RESULTS – JUNE 2013 For personal use only • Continued progress with SBG and Towry: • SBG expecting 2000 production users by end of 2013. • Implementation of CommPay backoffice now underway at SBG. • Cashflow

  29. Slide 29: Australia - Financial Markets

    Presentation Title| Subtitle (change on master slide) AUSTRALIA - FINANCIAL MARKETS HALF YEAR RESULTS – JUNE 2013 For personal use only H2'12 6% 0% 5% 0% H1'13 H2 2012 H1 2013 %Chg LC 6% 9% 2% (A#039;000) (A#039;000) 4% 2% 4% Operating Revenue 54,206 53,521 -1% Segment Profit* 27,110 25,434 -6% Segment PA

  30. Slide 30: Australia - Wealth Management

    Presentation Title| Subtitle (change on master slide) AUSTRALIA - WEALTH MANAGEMENT HALF YEAR RESULTS – JUNE 2013 For personal use only H2'12 3% 2% 2%2% H1'13 H2 2012 H1 2013 %Chg LC 0% 6% 0% 6% 5% 5% (A#039;000) (A#039;000) Operating Revenue 27,788 29,599 7% Segment Profit* 11,759 13,084 11% Segment PAT*

  31. Slide 31: Canada

    Presentation Title| Subtitle (change on master slide) CANADA HALF YEAR RESULTS – JUNE 2013 For personal use only H2'12 2% 2% H1'13 H2 2012 H1 2013 9% %Chg LC 18% 3% (CAD#039;000) (A#039;000) (CAD#039;000) (A#039;000) 2% 4% Operating Revenue 10,600 10,246 10,481 10,107 -1% 4% 2% Segment Profit* 2,950 2,853 2,620

  32. Slide 32: South Africa

    Presentation Title| Subtitle (change on master slide) SOUTH AFRICA HALF YEAR RESULTS – JUNE 2013 For personal use only H2'12 H1'13 7% 7% 5% 4% H2 2012 H1 2013 %Chg LC 5% 6% (ZAR#039;000) (A#039;000) (ZAR#039;000) (A#039;000) 2% 2% 4% Operating Revenue 91,502 10,438 99,062 10,612 8% 4% Segment Profit* 26,651 3,0

  33. Slide 33: Asia

    Presentation Title| Subtitle (change on master slide) ASIA HALF YEAR RESULTS – JUNE 2013 For personal use only 3% 2% H1'13 H2'12 H2 2012 H1 2013 6% 6% %Chg LC 8% 10% (A#039;000) (A#039;000) 1% 1% Operating Revenue 646 712 10% 4% 4% Segment Profit* (1,856) (1,854) 0% Segment PAT* (1,422) (1,416) 0% Non Rec

  34. Slide 34: United Kingdom

    Presentation Title| Subtitle (change on master slide) UNITED KINGDOM HALF YEAR RESULTS – JUNE 2013 For personal use only 1% H1'13 H2'12 4% 5% 1% 4% 4% 2% H2 2012 H1 2013 %Chg LC 1% 4% 4% (GBP#039;000) (A#039;000) (GBP#039;000) (A#039;000) Operating Revenue 201 309 553 841 Segment Profit* (1,125) (1,725) (1,053)

  35. Slide 35: Group Strategic Charges

    Presentation Title| Subtitle (change on master slide) GROUP STRATEGIC CHARGES HALF YEAR RESULTS – JUNE 2013 For personal use only 20 15 $A Millions 10 5 - 2009 2010 2011 2012 2013 2014 2015 2016 Aust - Fin Mkts Aust - Wlth Mgt Can South Africa Asia UK AUD $ m Description H2 '1 2 H1 '1 3 H2 '1 3 H1 '

  36. Slide 36: Non-Amortising Intangibles

    Presentation Title| Subtitle (change on master slide) NON-AMORTISING INTANGIBLES HALF YEAR RESULTS – JUNE 2013 For personal use only Cost (AUD) Description $m Amortisation period Plantech Goodwill 2.937 Visiplan Goodwill 10.695 Aust - Wlth Mgt Transactive Goodwill 0.285 DMS Goodwill 1.042 Goodwill C

  37. Slide 37: Share Grants

    Presentation Title| Subtitle (change on master slide) SHARE GRANTS HALF YEAR RESULTS – JUNE 2013 • Value of staff share grants made in May 2013 (excludes MD): For personal use only • 3 year term Deferred shares & Deferred Share Rights $6.926m (2012: $6.363m) • Performance Rights $1.253m (2012: $1.51

  38. Slide 38: Contact IRESS

    Presentation Title| Subtitle (change on master slide) CONTACT IRESS HALF YEAR RESULTS – JUNE 2013 For personal use only AUSTRALIA NEW ZEALAND ASIA Melbourne | +61 3 9018 5800 Auckland | +64 9 300 5571 Hong Kong | +852 3965 3341 Sydney | +61 2 8273 7000 Wellington | +64 4 462 6850 Singapore | +65 667

IRESS — H1 2013 Earnings Presentation on 6ix