Asx Limited · ASX:ASX

Asx — Sandler O'Neill Global Exchange and Brokerage Conference (June 2014)

27 slides from Asx's conference presentation, Jun 4, 2014

  1. Slide 1: ASX Limited – Investor Presentation (announcement cover letter)

    4 June 2014 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive Leader, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – INVESTOR

  2. Slide 2: Investor Briefing

    Investor Briefing For personal use only Sandler O’Neill – Global Exchange and Brokerage Conference Elmer Funke Kupper, CEO 4 June 2014 1

  3. Slide 3: Disclaimer

    Disclaimer For personal use only The material contained in this document is a presentation of general information about the activities of the ASX Group current as at the date of this presentation (4 June 2014). It is provided in summary and does not purport to be complete. You should not rely upon i

  4. Slide 4: ASX Limited: Strong business anchored in attractive financial market

    ASX Limited For personal use only Strong business anchored in attractive financial market • Strong market fundamentals • Attractive business mix as multi-asset class, vertically integrated exchange • World-class regulation – equities, financial market infrastructure Positive financial performance fo

  5. Slide 5: Australia is a leading financial market

    Australia is a leading financial market For personal use only Australia ranks between 3rd and 8th in the world in the markets it operates Australia’s financial markets Investable assets • 3rd largest pool of investable assets in the world at A$1.7 trillion Capital formation • 96 new listings year to

  6. Slide 6: Attractive business mix

    Attractive business mix For personal use only Revenue mix for nine months to end of March 2014 (100% = A$488 million) Other • Domestic leader in all segments, Asian Austraclear1 3% Listings and leader in A$ derivatives 6% Issuer Technical Services Services • Cash markets 18% of total revenues 8% 23%

  7. Slide 7: Business mix similar to exchanges in Asian time zone

    Business mix similar to exchanges in Asian time zone For personal use only CME 84% 11% 3% 3% ICE 12% 10% 48% 14% 12% 4% HKEX 14% 28% 28% 15% 9% 4% 2% SGX 9% 8% 51% 20% 5% 7% 0% ASX 23% 5% 19% 32% 10% 8% 3% BM&F 2% 9% 40% 38% 3% 2% 6% DB 2% 5% 33% 39% 16% 3% 3% TMX 27% 13% 30% 26% 4% LSE 7% 12% 32% 2

  8. Slide 8: World-class regulatory environment

    World-class regulatory environment For personal use only Equity markets and Financial Market Infrastructure High Frequency Trading Regulatory settings support end investors Financial Stability Standards • Maker-taker pricing not permitted • Derivatives clearing house meets global standards • Regulat

  9. Slide 9: Solid performance during subdued GFC conditions

    Solid performance during subdued GFC conditions For personal use only Revenues A$m Expenses A$m CAGR 3.5% CAGR 1.4% 588.2 617.6 610.4 617.4 146.2 138.3 134.2 135.5 141.1 538.4 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Profit after tax A$m EBITDA Margin CAGR 2.6% 77% 78% 77% 76% 356.6 74% 332

  10. Slide 10: Positive performance to end of March 2014

    Positive performance to end of March 2014 For personal use only Income statement for nine months to end of March 2014 YTD Mar YTD Mar % Variance 2013 A$m 2014 A$m Operating Revenues 457.1 488.4 6.8% Operating Expenses 107.5 115.0 (6.9%) EBITDA 349.6 373.4 6.8% Depreciation and Amortisation 22.9 24.4

  11. Slide 11: Revenue growth in all major revenue categories

    Revenue growth in all major revenue categories For personal use only Revenue growth nine months to end of March 2014 (A$m) 2.3 0.5 488.4 7.9 2.5 6.3 3.7 8.1 457.1 Up Up Up Up Up Up Up 7.7% 4.3% 13.7% 6.8% 5.5% 7.9% 4.1% Operating Revenues Up 6.8% July to March 13 Listings and Cash Market Information

  12. Slide 12: Business priorities

    Business priorities For personal use only Leading multi-asset class exchange group in Asia Pacific • Develop investment ‘supermarket’ Be global leader in • Expand derivatives products and asset classes A$ and NZ$ markets • Continue to innovate in trade execution • Expand Technical Services, re-engin

  13. Slide 13: Listings and Issuer Services

    Listings and Issuer Services For personal use only Highlights nine months to end of March 2014 Areas of focus Revenue A$113.6 million, up 7.7% Listings and Issuer Services • 79 IPOs (62 pcp) • Improved capital raising flexibility and timing • IPO capital A$18.5 billion, up 330.9% • Equity Research S

  14. Slide 14: Cash Market (trading, clearing, settlement)

    Cash Market (trading, clearing, settlement) For personal use only Highlights nine months to end of March 2014 Areas of focus Revenue A$87.8 million, up 4.3% Trading • Total on-market value traded per day up 10.9% • Innovation in Centre Point execution service • ASX on-market trading up 5.4% per day

  15. Slide 15: Cash Market trading innovation

    Cash Market trading innovation For personal use only Choice of ASX Venue Best ASX Venue Centre Point 0.25bp or TradeMatch 0.15bp1 Preferencing 0.40bp2 Centre Point 0.20bp or 0.50bp2 Centre Point/ Dual Centre Point 0.50bp Post Block 0.12bp or TradeMatch 0.15bp2 1. Auctions attract fee of 0.28bp 2. Lo

  16. Slide 16: Derivatives and OTC Markets

    Derivatives and OTC Markets For personal use only Highlights nine months to end of March 2014 Areas of focus Revenue A$152.2 million, up 5.5% Product Development • Futures contracts traded up 10.5% • VIX and equity sectoral futures contracts • Equity options contracts traded down 19.8% • New electri

  17. Slide 17: World class post-trade infrastructure

    World class post-trade infrastructure For personal use only EQUITIES FUTURES TRADING ASX OTC MARKETS ASX 24 CLEARING OTC CLEARING ASX CLEAR ASX CLEAR (FUTURES) CLIENT CLEARING COLLATERAL ASX COLLATERAL OPTIMISATION DEPOSITORIES CHESS AUSTRACLEAR 16

  18. Slide 18: Information and Technical Services

    Information and Technical Services For personal use only Highlights nine months to end of March 2014 Areas of focus Information Services A$52.4 million, up 13.7% Information Services • Pricing changes implemented 1 July 2013 • Fee alignment to changing user profiles Technical Services A$39.4 million

  19. Slide 19: Austraclear

    Austraclear For personal use only Highlights nine months to end of March 2014 Areas of focus Revenue A$31.0 million, up 7.9% ASX Collateral Service • Transaction volume up 4.6% • Reduces collateral costs for ASX clients • Average balances up 6.2% to A$1.5 trillion • Phase 1 connects service to Austr

  20. Slide 20: Expense growth to support initiatives

    Expense growth to support initiatives For personal use only Expenses A$m Comments 146.2 • Expense discipline in period of 138.3 135.5 141.1 investment (particularly in post- 134.2 58.5 59.0 trade services) 56.6 56.7 56.5 • Average staff numbers year-to- date FY14 up 4.1% to 534 FTEs • Guidance FY14

  21. Slide 21: Capital Expenditure (A$M)

    Capital Expenditure (A$M) For personal use only 34.8 23.5 20.5 19.0 18.5 18.6 15.4 15.4 8.6 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 Normal Data Centre Post Trade Comments • YTD March FY14 capital expenditure A$28.3 million including A$17.0 million post trade • Guidance FY14 capital expenditure

  22. Slide 22: Summary

    Summary For personal use only Strong business anchored in attractive financial market • Strong market fundamentals • Attractive business mix as multi-asset class, vertically integrated exchange • World-class regulation – equities, financial market infrastructure Positive financial performance for ni

  23. Slide 23: Appendices

    For personal use only Appendices 22

  24. Slide 24: Income Statement (A$m)

    Income Statement (A$m) For personal use only FY09 FY10 FY11 FY12 FY13 YTD Mar 14 $ Million $ Million $ Million $ Million $ Million $ Million REVENUE Listings and Issuer Services 128.3 146.1 150.3 133.4 139.7 113.6 Cash Market 138.8 150.8 133.9 124.5 114.6 87.8 Trading 52.1 52.6 38.7 36.4 32.8 24.6 C

  25. Slide 25: Income Statement (A$m, Continued)

    Income Statement (A$m, Continued) For personal use only FY09 FY10 FY11 FY12 FY13 YTD Mar $ Million $ Million $ Million $ Million $ Million 14 $ Million Depreciation and Amortisation 15.0 18.9 23.3 27.6 30.4 24.4 EBIT 385.1 435.1 458.8 441.7 440.8 349.0 Net Interest Income 19.7 12.8 20.8 20.6 13.1 22

  26. Slide 26: Balance Sheet (A$m)

    Balance Sheet (A$m) For personal use only 30 Jun 09 30 Jun 10 30 Jun 11 30 Jun 12 30 Jun 13 31 Dec 13 $ Million $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale 4,019.5 3,716.8 3,318.6 3,696.2 4,496.2 5,071.7 Financial Assets Goodwill 2,262.8 2,262.8 2,262.8 2,262

  27. Slide 27: For personal use only

    e Internationally competitive Customer driven Globally connected World class For personal use only Customer service e WWW.aSx.cOMm.au | 131 ASX (131 279) | International +61 2 9338 0000

ASX — Sandler O'Neill Global Exchange and Brokerage Conference (June 2014) on 6ix