Iress Limited · ASX:IRE
Iress — IRESS Market Technology — H1 2005 Earnings Presentation
22 slides from Iress's earnings presentation, Sep 1, 2005
Slide 1: ASX cover letter: 2005 Half Year Results Investor Presentation
1 September 2005 ir The Manager MARKET TECHNOLOGY Company Announcements Office Australian Stock Exchange 10" Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam 2005 Half Year Results — Investor Presentation Please find attached a copy of an investor presentation on the Comp
Slide 2: Results Presentation Half Year to 30th June 2005
MARKET TECHNOLOGY Results Presentation Half Year to 30th June 2005 ress MARKET TECHNOLOGY September 2005
Slide 3: Group Performance Against Prior Half
iress MARKET TECHNOLOGY Group Performance Against Prior Half Adjusted Group Profit $11.796 million Up $0.887 million, 8.1% Segment Contribution >Information Services Contribution $1.566 81% >XPLAN Contribution $0.402 21% >Canada JV -$0.405 -2% $1.924 100% Interim dividend 6.5 cents, fully franked (2
Slide 4: Segment Performance Against Prior Half
iress MARKET TECHNOLOGY Segment Performance Against Prior Half > Information Services 6.7% increase in profit > Financial Planning Into profit with $0.3m increase > Canadian JV $0.077m part year contribution > Strategic Amortisation (a) >XPLAN $(1.061)m (of $11.034m total) >Canadian JV $(1.780)m (of
Slide 5: Review of Group Subscription Revenue
iress MARKET TECHNOLOGY $m Review of Group Subscription Rev 28.0 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 Group Subscription Revenue (excl: Non-Rec. Services Rev, News, Royalties & Comms) H1'01 H2'01 H1'02 H2'02 H1'03 H2'03 H1'04 H2'04 H1'05
Slide 6: Review of Operations and Outlook
iress MARKET TECHNOLOGY Review of Operations and Outlook » Info & Trading Systems > Revenue growth in the first half strong and virtually identical to previous half growth. > Indications of a possible downturn in the middle of the half proved incorrect. > Competitive threats remain and clients regul
Slide 7: Review of Info & Trading Services Revenue
6 f¥@SS|| Review of Info & Trading services Rev. Info Services Subscription Revenue H1-01 to H1-05 20.0 18.0 16.0 14.0 12.0 10.0 $m lress+ Trading Hardware/DR Other News, Royalty Services Services & Comms
Slide 8: Review of Info & Trading Services Revenue
iress MARKET TECHNOLOGY Review of Info & Trading services Rev. Info Services Subscription Revenue H1-01 to H1-05 Subsciption Revenue excl. News, Royalty & Comms royalties etc
Slide 9: Core Business Highlights 2005
iress MARKET TECHNOLOGY Core Business Highlights 2005 => FIX modules (IOS add on for order flow connectivity) growing rapidly. IOS network evolving into a standards based FIX hub while keeping unique IOS features. => ETC’s continue to grow with recent monthly revenues averaging above $40k. The SWIFT
Slide 10: Core Business Highlights (cont)
iress MARKET TECHNOLOGY Core Business Highlights (cont) > Retail portfolio system (IPS) now implemented at a number of key broker clients with a strong pipeline. Further development has made IPS highly competitive in terms of cost and functionality. A key strategic product. > Contracts for Differenc
Slide 11: Daily Trades on SEATS (ASX)
iress MARKET TECHNOLOGY Daily Trades on SEATS (ASX) 120000 geen =e oe a o0000 e000 e000 40000 20000 > Q 21/08/1995 21/08/1997 21/08/1999 2108/2001 2108/2008 2108/2005
Slide 12: Core Business Revenue breakdown by quartile
6 H¥@SS|| Core business — Revenue breakdown by quartile 1st 7 1.846 2nd 19 0.663 3 58 0.204 qin 670 0.018 Total 754
Slide 13: Core Business - IOS Penetration
iress MARKET TECHNOLOGY Core Business - lOS Penetration => 40 of top 50 Australian brokers have at least one IOS in use. => Many brokers have multiple |OSs in production (usually for different business units). > Heavily used for FIX and FIX DMA business. > IOS Retail (FSRA) now means many of the ret
Slide 14: Financial Planning - XPLAN
iress MARKET TECHNOLOGY Financial Planning - XPLAN => Exceptional performance with revenue growth of 57% this half exceeding the strong growth last half. > Moves into profit ($0.162m) on a fully costed basis. Growth in costs has stabilised with a strong flow through to EBITDA. => Annualised XPLAN is
Slide 15: Review of Xplan Subscription Revenue
iress MARKET TECHNOLOGY Review of Xplan Subscription Rev. Fin Planning Subscription Revenue H1-03 to H1-05 Xplan Recurring Xplan Non-recurring
Slide 16: Xplan Gross Operational Revenue
iress MARKET TECHNOLOGY Xplan Gross Operational Revenue $'000 per month Jul-03 Gross Xplan Operational Revenues Oct-03 Jan-O4 Apr-O4 Jul-04 Oct04 Jan-05 Apr-05 Jul-05
Slide 17: Canadian Joint Venture
iress MARKET TECHNOLOGY Canadian Joint Venture > Fully marketable versions of the information and sell-side order management products now installed: » US market data included » FIX connectivity for US based Canadian orders and Canadian based US orders » “Look and feel” replication of the existing KT
Slide 18: Canadian Market
iress MARKET TECHNOLOGY Canadian Market TRADING ON MAJOR NORTH AMERICAN EXCHANGES Parentage of Visiow Trilied i Major ert Asner man Ee! Theme oe pearteriagen Od advent: teatiel itil ted tant Captioned ye Toru hots Exchanges it a. | =I ee eee 8 Le wr Wes Bhee is aa aT, ull g me ea Parmniage of Valea:
Slide 19: Canadian Market
iress MARKET TECHNOLOGY Canadian Market Top 20 World Exchange Equity Trading Summary {in Millions of U.S. Dollars) Equity Tadiag Dhenranadiie, Aivaroa Cialy change Mid year wid yar aia how Youu, en ea| TR TOT te. SaaS WAR DAD aver iz Saaz o1k BA 193, Lome BATE 1 ReIRORB ARS REL Toshiya aenonay RST R
Slide 20: General Comments
iress MARKET TECHNOLOGY General Comments => Policy remains for full year dividend payout ratio around 80% of adjusted results. > Current free cash approximately $15.8 million. The high dividend payout continues to moderate further build up. > The company remains open to acquisition and joint venture
Slide 21: Headcount
iress MARKET TECHNOLOGY Headcount Headcount (FTE) 160 140 120 100 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 B Info Services @ Financial Planning 0 Canada Staff related costs are our largest operating expense.
Slide 22: jress
jress MARKET TECHNOLOGY mess MARKET TECHNOLOGY
IRESS Market Technology — H1 2005 Earnings Presentation on 6ix