Asx Limited · ASX:ASX
Asx — Sandler O'Neill Global Exchange and Brokerage Conference 2016
18 slides from Asx's conference presentation, Jun 9, 2016
Slide 1: ASX Group – Investor Presentation (cover announcement)
9 June 2016 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX GROUP – INVESTOR PRESENTAT
Slide 2: Investor Presentation ASX Group
For personal use only Investor Presentation ASX Group Peter Hiom June 2016
Slide 3: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (9 June 2016). It is provided in summary and does not purport to be complete. You should not rely upon it as
Slide 4: ASX Group: Global leader in A$ and NZ$
ASX Group Global leader in A$ and NZ$ For personal use only Strong businesses anchored in attractive financial market • Strong market fundamentals • Diversified business, multi-asset class and vertically integrated exchange • World-class regulations – trading, clearing, financial market infrastructu
Slide 5: Attractive and Diversified Business Model
Attractive and Diversified Business Model For personal use only Australian Financial Markets Position YTD Mar 2016 ASX Revenues • Largest pool of investable funds in Asia, 7th in the world • 3rd largest equity market in Asia, 9th in the world Austraclear 7% Listings • Over 2,200 listed entities, mar
Slide 6: Solid Performance with growth in earnings
Solid Performance with growth in earnings Dividend payout ratio 90% over the period For personal use only Revenues A$m Expenses A$m FY10 to FY15 CAGR 3.6% FY10 to FY15 CAGR 3.6% 700.7 153.6 160.1 658.3 146.2 617.6 610.4 617.4 134.2 135.5 141.1 588.2 127.5 552.8 FY10 FY11 FY12 FY13 FY14 FY15 MarYTD F
Slide 7: Income Statement – Months to March 2016
Income Statement – 9 Months to 31 March 2016 YTD March 16 YTD March 15 For personal use only A$m A$m % Variance Operating Revenues 552.8 516.8 7.0% Operating Expenses 127.5 120.2 (6.1%) EBITDA 425.3 396.6 7.2% Depreciation and Amortisation 31.3 28.2 (11.1%) EBIT 394.0 368.4 6.9% Interest and Dividen
Slide 8: Revenue Movement – Months to March 2016
Revenue Movement – 9 Months to 31 March 2016 (A$ Million) For personal use only 4.1 0.7 552.8 7.7 9.7 13.7 516.8 Up Up Up Up Up 10.5% 7.7% 11.3% 2.2% 74.8% Operating Revenues Up 7.0% July 14 to Listings and Trading Equity Post-Trade Derivatives and Other July 15 to March 15 Issuer Services Services
Slide 9: Activity Levels – YTD April 2016
Activity Levels – YTD April 2016 Total Capital Raised (A$ Billion) Cash Market Trading For personal use only 72.3 +33% ASX Average Daily Value On-market (A$ Billion) 54.5 4.1 +11% 3.7 FY15 FY16 FY15 FY16 Futures1 - Average Daily Contracts ('000) Equity Options - Average Daily Contracts ('000) 510 +7
Slide 10: ASX Group Priorities
ASX Group Priorities Business initiatives progressing For personal use only • Innovate in fragmented equity market – Centre Point Global Leader in A$ and NZ$ • Build on leadership in A$ and NZ$ derivatives markets – OTC, Collateral • Grow listings franchise – NZ, Tech Investment Supermarket • Extend
Slide 11: Global Leader in A$ and NZ$ Markets
Global Leader in A$ and NZ$ Markets Growth in OTC Clearing & Collateral Management Services For personal use only OTC Notional Value Cleared (A$ Billion) Collateral Balances (A$ Billion) 512 7 6 6 5 5 4 5 4 4 4 4 261 4 4 4 227 3 207 3 3 3 188 3 3 3 154 2 137136 140 137 126 2 118 121 102 104 71 62 43
Slide 12: Investment Supermarket
Investment Supermarket For personal use only Grow Listings Franchise (FY16 Listings) Areas of Focus Grow listings franchise • Attractive and flexible capital market listing rules – 25% increase in capital raised March 16 YTD • New Zealand simplified dual listing process – 42 NZ companies • NZ IPOs –
Slide 13: Technology Transformation
Technology Transformation Key projects progressing For personal use only Cash Futures Market Trading Trading Trading platforms including ETOs Jul to Nov 2016 2017 Equities Derivatives Clearing/ Distributed Ledger Clearing settlement Technology Phase I Prototype platforms Development FY17 / FY18 FY17
Slide 14: Capital Expenditure (A$ Million)
Capital Expenditure (A$ Million) FY12 $39.1m FY13 $38.9m FY14 $43.2m FY15 $44.4m FY16 approx $50m For personal use only 31.4 23.5 24.6 20.5 18.5 18.6 18.7 15.4 13.0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Normal ALC (Data and Customer Support Centre) Post-Trade Technology Transformation¹ H
Slide 15: Opportunity for Post-Trade Innovation
Opportunity for Post-Trade Innovation Distributed Ledger Environment Investors For personal use only Consolidated view of holdings Issuers/listed companies Choice of real-time access to securities/cash Improved shareholder analytics Real-time dividend payments, voting Streamlined/automated corporate
Slide 16: Distributed Ledger Technology
Distributed Ledger Technology Assessing the opportunity For personal use only Current Focus Digital Asset Holdings Investors • Investment in Digital Asset Holdings (DAH) of A$14.9m for a 5% stake plus rights to acquire additional 5% • ASX and DAH working together to develop a beta software system to
Slide 17: Regulatory Environment
Regulatory Environment For personal use only Developments Last Three Years Equities Clearing Review Investors Safe and effective competition • Equity market regulations supporting end-investors • Treasurer announced commitment to putting in place safe and effective competition for cash Systemic risk
Slide 18: ASX Group: Global leader in A$ and NZ$
ASX Group Global leader in A$ and NZ$ For personal use only Strong businesses anchored in attractive financial market • Strong market fundamentals • Diversified business, multi-asset class and vertically integrated exchange • World-class regulations – trading, clearing, financial market infrastructu
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