Iress Limited · ASX:IRE
Iress — IRESS Market Technology — Merger or Acquisition (April 2004)
9 slides from Iress's merger presentation, Apr 7, 2004
Slide 1: IRESS Canadian Joint Venture
7 April 2004 ® fr MARKET TECHNOLOGY The Manager Company Announcements Office Australian Stock Exchange 10 Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam IRESS Canadian Joint Venture Please find attached slides for a presentation to be given later today regarding the Can
Slide 2: Canadian Joint Venture Overview
MARKET TECARDIOOY Canadian Joint Venture 6 TAS MARKET TECHNOLOGY April 2004 PaakEs TECHNOLOGY Overview > On 6" April 2004, IRESS Market Technology Limited entered into an agreement to invest in a 50:50 joint venture arrangement in Canada. > Our joint venture partner TG Canada, (which is ultimately o
Slide 3: Canadian Marketplace: Attributes
PARKES TECHNOLOGY Canadian Marketplace: Attributes > Size of market + 1,750 trading screens (SEATS like functionality) + Approx 20,000 information screens > Canadian market is an order driven market similar to that operated by the ASX and unlike the US market maker environment. > Despite close proxi
Slide 4: Canadian Trading Terminals
PARKES TECHNOLOGY Canadian Trading Terminals > Exchange (TSX) does not provide trading terminals (SEATS terminals in our context) leaving a vendor market. >» There are four major providers of exchange trading terminals for the Canadian market + Reuters, Belzberg, Etrade + KTG which has approx 30% ma
Slide 5: Canadian Institutional Products
PARKES TECHNOLOGY Canadian Institutional Products No well established order routing network. Bloomberg not as entrenched as in Asia. FIX use modest but growing. Buy side OMS systems still rare although increasing. Opportunity for FTS as a Canadian specific alternative compared to expensive US produc
Slide 6: ITG's Input to JV
PARKES TECHNOLOGY ITG’s Input to JV > KTG Technologies Corp, the leading provider of Toronto Stock Exchange execution terminals to the Canadian equity markets. An established, independent and growing business. > Established institutional order routing network (Platform) which currently connects the
Slide 7: KTG Technologies Business
PARKES TECHNOLOGY KTG Technologies Business > Established in 2000 > Purchased by ITG in September 2001 > Trading terminal installed base > 450 > Total staff of 13 C$M 2001 2002 2003 {Unaudited Results) Revenue 2.0 4.9 5.8 EBITDA - 1.2 V7 PaakEs TECHNOLOGY Operational Plan >» Small dedicated developm
Slide 8: Management
PARKES TECHNOLOGY Management > Current IRESS COO, Neil Detering will take lead role in Australia in establishment phase, particularly with regard to product design and development. > Neil's existing responsibilities have been re-assigned as part of management re-structure involving internal and exte
Slide 9: Accounting Implications
PARKES TECHNOLOGY Accounting Implications > Acquisition: + IRESS’ share of goodwill / software arising on acquisition is C$5.4 million. % Non-recurring implementation costs est. A$0.55 million. >» Going Forward: + Earnings contribution to IRESS in form of Royalties, Interest & Dividends. + Efficient
IRESS Market Technology — Merger or Acquisition (April 2004) on 6ix