Iress Limited · ASX:IRE
Iress — FY2024 Earnings Presentation
33 slides from Iress's earnings presentation, Feb 24, 2025
Slide 1: 2024 Full year results
2024 Full year results 24 February 2025 iress.com 1
Slide 2: Agenda
Agenda 1. Overview & Transformation Update 2. FY24 Financial Results 3. Strategy & Outlook 2 2
Slide 3: Overview & Transformation Update
Overview & Transformation Update Marcus Price 3 3
Slide 4: Iress is a simpler, leaner business focused on driving operating leverage
Following a successful transformation program, Iress is a simpler, leaner business focused on driving operating leverage and building growth vectors Delivered strong FY24 Materially Reset asset Reinstated Building results - ahead strengthened growth vectors and cost base dividend of guidance balance
Slide 5: Iress has delivered strong FY24 financial results; ahead of guidance
Iress has delivered strong FY24 financial results; ahead of guidance Adjusted EBITDA Adjusted EBITDA Margin +25.2% +501.9bps $132.8m 22.0% Underlying EPS NPATA1 +72.4% +192.2% 34.3 cps $30.1m Leverage ratio Final dividend 1.0x 10.0 cps (from 2.5x) Note: Compared with pcp (FY23) 5 5 1. NPATA represent
Slide 6: Transformation program has delivered on key objectives
Iress’ transformation program has delivered on key objectives and embedded management disciplines Financial Performance & Focus on key discipline accountability businesses Cost base reset; embedded New P&L, BU-driven structure Significant improvement cost discipline driving accountability in customer
Slide 7: Iress has sold non-strategic assets and is focused on two strategic businesses
Iress has sold non-strategic assets and is focused on driving growth in two strategic and profitable businesses: Trading & Global Market Data and Wealth Management Iress portfolio pre-transformation Trading & Global Market Data APAC UK Canada South Africa QuantHouse Wealth Management Iress portfolio
Slide 8: Financial Results
Financial Results Cameron Williamson 8 8
Slide 9: CFO Overview
CFO Overview ● Exceptionally strong 2024 financial performance ● Balance sheet materially strengthened ● Debt refinance delivered January 2025 ● Dividend reinstated ● Focus on driving organic growth and operating leverage across Iress’ continuing business following heightened period of M&A activity in
Slide 10: Strong earnings growth with improved margin
Strong earnings growth with improved margin Key points A$m FY23 FY24 $ vs PCP % vs PCP ● Adjusted EBITDA up 25.2%, exceeded Recurring Revenue 577.3 553.7 (23.6) (4.1%) guidance throughout year, driven by Non-Recurring Revenue 48.8 50.9 2.1 4.3% significantly lower costs ● Revenue decline reflects dive
Slide 11: Revenue growth +4% from Iress' continuing business
Revenue growth +4% from Iress’ continuing business A$m Revenue from continuing business +4% FY23 FY23 APAC Trading & FY24 FY24 FY23 FY24 Divested Continuing Wealth Global Market Super UK Other Continuing Divested Revenue Revenue business1 business2 Management data business2 business1 1. Divested bus
Slide 12: Cost discipline -2% reduction in expenses across continuing business
Cost discipline -2% reduction in expenses across Iress’ continuing business A$m Continuing business expenses -2% FY23 FY23 FY23 Non FY24 FY24 FY24 Staff Cost of Operating Divested Continuing wage Continuing Divested Operating costs sales costs business1 business2 expenses business2 business1 costs 1
Slide 13: Material 39% uplift in Adjusted EBITDA across continuing business
Material 39% uplift in Adjusted EBITDA across continuing business A$m Continuing business Adjusted EBITDA +39% FY23 FY23 FY23 APAC Trading & Super UK Other FY24 FY24 FY24 Adjusted Divested Continuing Wealth Global Market Continuing Divested Adjusted EBITDA business1 business2 Management data busines
Slide 14: Group P&L Adjusted EBITDA Reconciliation to NPAT
Group P&L Adjusted EBITDA Reconciliation to NPAT A$m FY23 FY24 % vs PCP ● Material increase in NPATA driving Adjusted EBITDA 106.1 132.8 25.2% improved cashflow Excluded items: (35.6) (42.6) 19.7% ● BTL items(2): M&A related items (6.9) (13.6) 97.1% ○ c.20% higher than 2023 due Transformation related
Slide 15: Free cashflow and balance sheet significantly improving
Free cashflow and balance sheet significantly improving Free cash flow Net debt Leverage ratio A$m (pre-cap mgmt) A$m Notable improvement in free cash flow Net debt declined $209m over the year as Leverage ratio substantially lower proceeds from asset sales and retained cashflow were used to pay down deb
Slide 16: Lower leverage with established target dividend payout ratio
Lower leverage with established target dividend payout ratio FY24 Status Capital Settings Leverage ratio Leverage ratio 1.0x Reconfirm 1.0-1.5x R&D Capex R&D Capex Reconfirm 5-7% of revenue 2.3% of revenue (over medium term) Final dividend reinstated Target dividend payout range 10cps (25% franked) 50
Slide 17: CFO Summary and FY25 Guidance
CFO Summary and FY25 Guidance Summary FY25 Guidance1 Strong 2024 with improved performance metrics across the board NPATA $54m - $62m Embedded cost discipline with 80% - 106% vs FY24 focused approach to capital allocation Balance sheet strength supporting reinstatement of dividends Adjusted EBITDA $
Slide 18: Strategy & Outlook
Strategy & Outlook Marcus Price 18 18
Slide 19: Trading & Global Market Data: well positioned to modernise trading technology
Trading & Global Market Data: Iress is well positioned to leverage core competencies to modernise trading technology and global connectivity Iress’ market position¹ Market trends Iress strategic priorities Buy-side EMS and IOS+ uplift in # 1 Australia Technology modernisation to response to ASX SR15
Slide 20: Wealth Management: well positioned to grow with structural industry tailwinds
Wealth Management: Iress is well positioned to grow with the structural industry tailwinds & expand access to advice in APAC & UK Iress’ market position¹ Market trends² Iress strategic priorities Regulatory tailwinds Digital advice for superannuation # 1 Australia Adviser Tech Unmet advice needs Con
Slide 21: Outlook
Outlook Maintaining Driving Product FY25 Guidance Investing for cost operating roadmap NPATA future discipline leverage delivery $54m - $62m growth 21 21
Slide 22: Questions
Questions 22 22
Slide 23: Disclaimer
Disclaimer Important information for investors This presentation has been prepared by Iress Limited ACN 060 313 359 (Iress). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accur
Slide 24: Appendix
Appendix 24 24 24
Slide 25: Underlying NPAT and EPS Reconciliation
Underlying NPAT and EPS Reconciliation A$m FY23 FY24 Reported NPAT (137.5) 88.7 Adjustments: Add: M&A related activity 6.9 13.6 Transformation related costs 28.7 29.0 Intangibles impairment / derecognition 143.7 - Amortisation of acquired intangibles 24.4 14.6 Deduct: Gains on disposal of subsidiary
Slide 26: Group P&L
Group P&L Group reported Group continuing A$m 1H23 2H23 FY23 1H24 2H24 FY24 A$m 1H23 2H23 FY23 1H24 2H24 FY24 Recurring revenue 288.9 288.4 577.3 282.5 271.2 553.7 Recurring revenue 262.1 263.3 525.4 263.9 269.0 532.9 Non-recurring revenue 22.7 26.1 48.8 26.5 24.4 50.9 Non-recurring revenue 11.4 15.
Slide 27: APAC Wealth (continuing) - FY23→FY24
APAC Wealth (continuing) - FY23→FY24 A$m 1H23 2H23 FY23 1H24 2H24 FY24 Recurring revenue 64.2 64.8 129.0 65.4 62.7 128.1 Non-recurring revenue 0.7 0.7 1.4 1.2 1.2 2.4 Total Revenue 64.9 65.5 130.4 66.6 63.9 130.5 Staff costs (25.8) (21.3) (47.1) (21.8) (20.3) (42.1) Cost of sales (4.2) (3.6) (7.8) (
Slide 28: Trading & Global Market Data (continuing) - FY23→FY24
Trading & Global Market Data (continuing) - FY23→FY24 A$m 1H23 2H23 FY23 1H24 2H24 FY24 Recurring revenue 99.1 100.8 199.9 99.4 101.4 200.8 Non-recurring revenue 1.8 2.3 4.1 2.1 2.4 4.5 Total Revenue 100.9 103.1 204.0 101.5 103.8 205.3 Staff costs (30.2) (27.7) (57.9) (27.2) (25.3) (52.5) Cost of sa
Slide 29: Superannuation (continuing) - FY23→FY24
Superannuation1 (continuing) - FY23→FY24 A$m 1H23 2H23 FY23 1H24 2H24 FY24 Recurring revenue 24.1 19.3 43.4 18.7 23.4 42.1 Non-recurring revenue 4.3 6.5 10.8 7.8 8.1 15.9 Total Revenue 28.4 25.8 54.2 26.5 31.5 58.0 Staff costs (21.7) (21.3) (43.0) (21.9) (20.9) (42.8) Cost of sales (0.5) (0.2) (0.7)
Slide 30: UK - FY23→FY24
UK - FY23→FY24 UK - Continuing(1) UK Divested (2) A$m 1H23 2H23 FY23 1H24 2H24 FY24 A$m 1H23 2H23 FY23 1H24 2H24 FY24 Recurring revenue 42.8 46.1 88.9 47.2 48.4 95.6 Recurring revenue 15.8 17.0 32.8 16.3 2.2 18.5 Non-recurring revenue 3.3 3.8 7.1 4.0 7.7 11.7 Non-recurring revenue 6.3 7.4 13.7 6.2 1
Slide 31: South Africa, Canada & Other - FY23→FY24
South Africa, Canada & Other - FY23→FY24 South Africa & Canada - Continuing (1) OneVue (Platform and MFA) - Divested (1) A$m 1H23 2H23 FY23 1H24 2H24 FY24 A$m 1H23 2H23 FY23 1H24 2H24 FY24 Recurring revenue 31.9 32.3 64.2 33.2 33.1 66.3 Recurring revenue 11.0 8.1 19.1 2.3 - 2.3 Non-recurring revenue
Slide 32: Foreign exchange rates
Foreign exchange rates FY23 Avg FY24 Avg AUD / GBP 0.54 0.52 AUD / CAD 0.90 0.90 AUD / ZAR 12.24 12.06 AUD / EUR 0.61 0.61 32 32
Slide 33: Divestments with TSAs continuing into late 2026
Divestments with TSAs continuing into late 2026 TSA TSA Divestment Announced Consideration2 Completed Period Completion MFA Aug-23 $52.0m Oct-23 24m Oct-25 ● Significant divestment activity Platform Feb-24 $1.0m April-24 18m Oct-25 over last 18 months ● TSA’s in place with 12-24 month MSO - UK Mar-24