Iress Limited · ASX:IRE
Iress — IRESS Market Technology — SSB Emerging Growth Conference 2002
11 slides from Iress's conference presentation, Nov 19, 2002
Slide 1: Presentation to be given at SSB Emerging Growth Conference
19 November 2002 ir MARKET TECHNOLOGY The Manager Company Announcements Office Australian Stock Exchange 10* Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Copy of Presentation to be given at SSB Emerging Growth Conference Please find attached an update of a previously
Slide 2: IRESS Market Technology November 2002
ess MARKET TECHNOLOGY November 2002
Slide 3: BEACON — the wrap up
ri MARKET TECHBOLGGY BEACON — the wrap up ~» Beacon transaction fully completed August 9 2002 > Converted approximately $322,000 per month of revenue, 1099 screens ~> Conversion goal was 65% revenue converted nearly 85% ~» Average price converted at was $294 ~} Marginal Cost increase estimated at $7
Slide 4: IWL Merger Exit
ress MARKET TECHBOLGGY IWL Merger Exit > A range of issues in combination lead to a clear view the merger was not longer in our best interests. ~ Questions of value were key in the decision. ~}» Transaction costs to likely total 700k all up. ~} Strategic logic behind the merger is unchanged but merg
Slide 5: Current Trading
ress MARKET TECHBOLGGY Current Trading »» Broking environment has deteriorated further. “> Revenue loss through client rationalisation continues as it has since end 2000. « Growth from conversion of Beacon clients, smaller new customers, and trading system sales more than offsetting revenue losses.
Slide 6: IRESS — 2002 excluding IWL & Beacon amortisation
ress MARKET TECHBOLGGY IRESS — 2002 excluding IWL & Beacon amortisation 60 50 a 40 o @ Revenue < g 30 @ Profit before tax S O Earnings NO =) = Q 1998 1999 2000 2001 2002 E
Slide 7: Products with Revenue Potential
ress MARKET TECHBOLGGY Products with Revenue Potential > RMS. » Market making tool for the warrants and ETO markets. ~» SYCOM Replacement. » SFE now actively (by price) encouraging brokers to use third party trading interfaces. “~~ Funds Trading System (FTS). +» Major enhancements ongoing with stead
Slide 8: 2002 - Estimates and Forecasts
ress MARKET TECHBOLGGY 2002 - Estimates and Forecasts ~» Revenue $48.5 million ($25.35 second half) ~> Core Earnings (excluding Beacon and IWL) $15.25 million ($8.28 second half) =» Beacon $0.5 million provision unused and will substantially off-set IWL costs. ~} Last quarter annualised earnings app
Slide 9: 2002 Forecast Revenue
ress MARKET TECHBOLGGY 2002 Forecast Revenue @ IRESS Fees @ IOS Fees O Trading System Fees UO Additional Info. Services Prod. @ News Revenue @ Royalty Revenue @ Client & Central Comm Revenue
Slide 10: Staff Numbers
ress MARKET TECHBOLGGY Staff Numbers =~» 95 Total Staff - 76 Victoria, 19 Non Victorian ~» IRESS screens (Aus & NZ) 7,800 in September » Sydney 3800 » Melbourne 1850 > Adelaide 350 » Brisbane 650 > Perth 700 » New Zealand 450
Slide 11: Capital Management
ress MARKET TECHBOLGGY Capital Management =) Balance sheet very strong » No debt » $16 million cash +» Cash flow positive > $1 million per month + $10 million excess franking credits ~» IRESS on > 11% pre-tax earning yield at current prices. =» Buy back compelling on the numbers but capacity to take
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