Slide 1: ASX Limited - 2010 Full-Year Results
For personal use only ASX Limited - 2010 Full-Year Results Robert Elstone, Managing Director and CEO Peter Hiom, Deputy CEO Ramy Aziz, Chief Financial Officer 19 August 2010
Slide 2: 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 (19 August 2010). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Important Notes
Important Notes For personal use only The financial statistics, including comparables, in this report are based on the ASX Group’s pro-forma income statement which itself is not audited, but is based upon audited accounts. There have been no material changes to accounting policies during the period.
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Business Highlights and Initiatives Peter Hiom • Financial Results Summary Ramy Aziz • Post Balance Date Activity Robert Elstone • Questions
Slide 5: Introduction
Introduction For personal use only Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights FY10
Financial Highlights FY10 For personal use only • Underlying net profit after tax (NPAT) of $332.6 million, up 6.1% (statutory NPAT of $328.1 million, up 4.6%) • Operating revenue excluding interest and dividends of $588.2 million, up 9.2% • Cash operating expenses of $134.2 million, down 3.0% • Und
Slide 7: Financial Highlights FY10
Financial Highlights FY10 For personal use only • A comprehensive Annual Report has been released today, including statutory reports. This presentation provides a high level overview of the result • Sound financial, operational and supervisory performance by the ASX Group • Operating expense contain
Slide 8: Highlights and Initiatives
Business Highlights and Initiatives For personal use only Peter Hiom Deputy CEO
Slide 9: Highlights and Initiatives
Business Highlights and Initiatives For personal use only • Highlights – Exchange traded funds (ETFs) – Average trade size and average daily value – Equity derivatives – Futures and options – Electricity and grains – Austraclear • Business initiatives – Developing new services – Implementing major p
Slide 10: Highlights FY10: Primary Market
Business Highlights FY10 For personal use only Primary Market Total ETF Units on Issue 120.0 100.0 Units on Issue (Million) 80.0 60.0 40.0 20.0 0.0 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Strong ETF growth
Slide 11: Highlights FY10: Secondary Market
Business Highlights FY10 For personal use only Secondary Market Volume Number of Trades and Average Trade Size Avg Trade Size (Million) ($) 16.0 40,000 14.0 35,000 12.0 30,000 10.0 25,000 8.0 20,000 6.0 15,000 4.0 10,000 2.0 5,000 0.0 0 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09
Slide 12: Highlights FY10: Average Daily Value
Business Highlights FY10 For personal use only Secondary Market Average Daily Value 8.0 7.0 6.0 Value ($ Billion) 5.0 4.0 3.0 2.0 1.0 0.0 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Average daily value recovery continues in FY10
Slide 13: Highlights FY10: Derivatives
Business Highlights FY10 For personal use only Derivatives Index Options Contracts (XJO) 700,000 600,000 500,000 Contract Volume 400,000 300,000 200,000 100,000 0 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Strong growth in index option volumes
Slide 14: Highlights FY10: Futures & Options
Business Highlights FY10 For personal use only Futures & Options 12.0 11.0 10.0 Contract Volume (Million) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Continued recovery in volumes
Slide 15: Highlights FY10: Electricity
Business Highlights FY10 For personal use only Electricity Australian Electricity Futures and Options 28,000 24,000 20,000 Contract Volume 16,000 12,000 8,000 4,000 0 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Record year for electricity derivatives
Slide 16: Highlights FY10: Grains
Business Highlights FY10 For personal use only Grains ASX Grain Futures and Options 55,000 50,000 45,000 40,000 Contract Volume 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Record year for ASX grain derivatives
Slide 17: Highlights FY10: Austraclear
Business Highlights FY10 For personal use only Austraclear Austraclear Revenue $3.0 Messages & Reports $2.7 Registry Income Holdings Fees $2.4 Transaction Fees $2.1 Revenue (Million) $1.8 $1.5 $1.2 $0.9 $0.6 $0.3 $0.0 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Continued steady growth
Slide 18: Initiatives
Business Initiatives For personal use only • Primary market – developing new services – Development of new investor relations services – Consultation on enhanced disclosure by resource companies – Development of retail debt market • Secondary market – implementing major projects – Implementation of
Slide 19: Initiatives
Business Initiatives For personal use only • Derivative market – contemporising and consolidating – Upgrade of ASX Trade24 futures platform – Transition of ASX grains futures to Trade24 – Further development of exchange traded options market • Market data and connectivity – re-defining the offering
Slide 20: Initiatives
Business Initiatives For personal use only • Clearing and Settlement – delivering new services – Provision of the trade acceptance service to AMOs – Automation of the application/redemption process for managed funds – Tailoring of cash equities clearing service to accommodate different types of user
Slide 21: Financial Results Summary
Financial Results Summary For personal use only Ramy Aziz Chief Financial Officer
Slide 22: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only Variance FY10 FY09 Favourable / (Unfavourable) $ Million $ Million $ Million % Operating Revenue 588.2 538.4 49.8 9.2% Cash Operating Expenses 134.2 138.3 4.1 3.0% EBITDA 454.0 400.1 53.9 13.5% Depreciation and Amortisation 18.9 15.0 (3.
Slide 23: Financial Performance - EBITDA
Financial Performance - EBITDA For personal use only EBITDA FY06 to FY10 650 600 Revenue growth, Revenue decline, Revenue recovery, cost reduction cost containment continued cost 550 (post-merger) (GFC) containment 500 450 400 $ Million 350 300 250 200 150 100 50 0 FY06 FY07 FY08 FY09 FY10
Slide 24: Revenue Highlights FY10
Revenue Highlights FY10 For personal use only FY10 Revenue $115.5m $181.4m $147.8m $68.8m $29.9m $31.2m $13.6m $588.2m Change 11% 11% 10% 3% 4% 26% 4% 9% From FY09 (pcp) Listings Cash Derivatives Information Market Austraclear Other Total Market Services Connectivity Listings Revenue Cash Market Rev
Slide 25: Cash and Derivatives Markets
Cash and Derivatives Markets For personal use only Derivatives ASX Cash Market – Value Volume and Average Fee Contracts $ Fee $ Billion Basis (Million) Traded Points 80.0 2.20 Derivatives (ASX) Volume (LHS) (BPS) Futures and Options (ASX 24) Volume (LHS) 1,000 Total Value (LHS) 1.60 70.0 Derivatives
Slide 26: Financial Performance – Expenses
Financial Performance – Expenses For personal use only Expenses FY10 FY09 Variance Favourable / (Unfavourable) $ Million $ Million $ Million % Staff 77.7 81.7 4.0 5.0% Occupancy 13.9 12.8 (1.1) (9.0%) Equipment 22.2 22.7 0.5 2.1% Administration 15.2 16.1 0.9 5.3% Variable 5.2 5.0 (0.2) (3.1%) Total
Slide 27: Interest and Dividend Income
Interest and Dividend Income For personal use only • Significant reduction in interest income attributable FY10 FY09 to lower official cash rate $ Million $ Million Interest Income ASX Group (excluding ASXCC Group) 5.6 4.7 • Average cash collateral ASXCC Group 7.2 15.0 balances during FY10 of $2.7 b
Slide 28: Dividends Paid to Shareholders
Dividends Paid to Shareholders For personal use only • Dividend – 90% of underlying NPAT, fully franked • FY10 dividends – 173.1 cps • Dividend Reinvestment Plan to apply to FY10 dividend 250.0 Capital Return Final Dividend 200.0 Interim Dividend 58.5 Cents per Share 150.0 93.9 74.5 84.0 91.5 100.0
Slide 29: Balance Sheet
Balance Sheet For personal use only Variance 30 June 10 30 June 09 Favourable / (Unfavourable) $ Million $ Million $ Million % Cash and Available-for-Sale Financial 3,716.8 4,019.5 (302.7) (7.5%) Assets Goodwill 2,262.8 2,262.8 - - Other Assets 641.2 504.5 136.7 27.1% Total Assets 6,620.8 6,786.8 (1
Slide 30: Capital and Liquidity Position
Capital and Liquidity Position For personal use only ASX Group Equity ASX Group Cash Net Tangible Equity v Risk-Based Capital ASX Own Cash v Cash-Backed Requirements Attribution 800 800 700 700 600 600 500 500 $ Million $ Million 400 400 300 300 200 200 100 100 0 0 FY09 FY09 30 June 09 FY10 30 June
Slide 31: Post Balance Date Activity
Post Balance Date Activity For personal use only Robert Elstone Managing Director and CEO
Slide 32: Post Balance Date Activity
Post Balance Date Activity For personal use only • Post balance date characterised by – Rally in S&P/ASX200 index value – Thin equity trading volumes in most major equity markets – Official cash rate stability – Calling of a federal election in Australia • Activity levels for 1 July 2010 to 18 Augus
Slide 33: Post Balance Date Activity
Post Balance Date Activity For personal use only • Strong corporate earnings reporting season • Moderating inflation and strong Australian growth outlook • Imminent certainty on election outcome • Whilst FY11 will be another busy year of implementation challenges for ASX, the Group is well prepared
Slide 34: Questions
For personal use only Questions Questions
Slide 35: ASX Limited - 2010 Full-Year Results
For personal use only ASX Limited - 2010 Full-Year Results Robert Elstone, Managing Director and CEO Peter Hiom, Deputy CEO Ramy Aziz, Chief Financial Officer 19 August 2010