Iress Limited · ASX:IRE
Iress — Investor Presentation (April 2021)
18 slides from Iress's investor presentation, Apr 26, 2021
Slide 1: Goldman Sachs emerging leaders conference
Goldman Sachs emerging leaders conference April 2021
Slide 2: Key messages
Key messages Operational highlights - executing growth strategies Consistent revenue growth with over 90% recurring ● Deployment of Automated Super Admin progressing & expected client go-lives in 2021. cy curren ● OneVue corporate and functional integration met all milestones; cost synergies ontrack
Slide 3: Overview of Iress
Overview of Iress Market-leading technology for financial services Highlights Consistent revenue growth with over 90% recurring ● Strong position in Australian financial services ● >90% recurring revenue ● Cash conversion 3 108% in 2020; long term average of 90-100% ● Scale across major markets curre
Slide 4: We help our clients find better ways to
We help our clients find better ways to Manage and administer Navigate financial Deliver high quality investments markets financial advice Simplify mortgage Find and compare Administer super funds applications insurance and service members 4
Slide 5: Consistent organic revenue growth with value added to acquisitions
Consistent organic revenue growth with value added to acquisitions 9% revenue CAGR % FY16 to FY20 in constant currency (A$m)(1) Total Revenue CAGR = 9% 7.9 39.5 CAGR = 7%(2) 21.9 CAGR = 5% 30.5 34.2 32.1 26.9 CAGR = 1% 29.0 29.5 29.5 4.4 25.8 25.7 129.0 CAGR = 4% 129.9 122.7 114.7 111.2 Growth in ex
Slide 6: Consistent high margins in Australia, improving returns on investments
Consistent high margins in Australia, improving returns on investments Direct Contribution Margins (%)(1) 2016 2017 2018 2019 2020 Comments Existing Businesses Australian Financial Advice (5) 82% 83% 81% 79% 80% APAC Trading & Market Data (3) (5) 74% 72% 70% 71% 72% Consistently high contribution ma
Slide 7: Medium-term operating outlook - Iress' organic potential
Medium-term operating outlook - Iress’ organic potential Medium-term ROIC organic revenue Margin trend Q121 ROIC group Update trend (pa) Medium-term trend average (above/below) Group 5-10% n/a ● Group performance in line with full year guidance ● Opportunity affirmed - remains a high margin business w
Slide 8: 2021 key priorities - Q1 delivery on track and in line with expectations
2021 key priorities - Q1 delivery on track and in line with expectations OneVue Recurring revenue UK Grow funds registry by value Maintain high quality Grow UK revenue and funds recurring revenue and margin Provide investment infrastructure-as-a- service Technology Data Super administration Continue
Slide 9: Financial performance update
Financial performance update
Slide 10: Performing in line with FY21 guidance
Performing in line with FY21 guidance Pro forma Pro forma revenue ¹ Segment Profit & margin 1, 2 26.0% 25.3% Flat Up 2% Product & Technology Pro forma NPAT ¹ % of Revenue 1 Up 11% 23% Pro forma earnings per share 1, 3 Pro Forma ROIC 1,4 Up 11% 9% (1) Pro forma adjustments adds back the pre acquisitio
Slide 11: FY21 YTD Pro forma Segment Profit +2% v pcp, Pro forma NPAT +11%
FY21 YTD Pro forma(4) Segment Profit +2% v pcp, Pro forma NPAT +11% $AUDm - Reported (unaudited) Q1 2020 Q1 2021 Q1 21 vs Q1 20 First quarter performance in line with Operating revenue 135.8 141.7 +4% expectations. Guidance affirmed. Segment Profit 36.2 34.7 (4%) UK business is seeing a good level of NP
Slide 12: Segment Profit guidance affirmed. NPAT guidance increased by $14m
Segment Profit guidance affirmed. NPAT guidance increased by $14m 2021 Update Guidance (Constant Currency) (A$m) Segment Profit guidance affirmed: FY20 FY21 guidance FY21 guidance - Updated up 7-10% on pcp Inc OneVue Total Total NPAT guidance increased by $14m to $70m - $77m due to early finalisation of Qu
Slide 13: Appendix
Appendix 13
Slide 14: Pro forma financial performance - reconciliation
Pro forma financial performance - reconciliation Q1 2020 Q1 2021 (3) $AUDm Reported Pre Acquisition Pre Acquisition Pro forma Reported Currency Annual Leave (4) Pro forma (unaudited) of OneVue (1) of O&M (2) (unaudited) Operating Revenue 135.8 11.9 0.8 148.5 141.7 6.5 148.1 Operating Costs (99.6) (10
Slide 15: Profit and loss statement
Profit and loss statement Constant Currency Reported (unaudited) AUD (m) Q1 20 Q1 21 Q1 21/ Q1 20 Q1 21/ Q1 20 Operating Revenue 135.8 148.1 +9% +4% Operating Costs (99.6) (111.8) +12% +7% Segment Profit 36.2 36.3 - (4%) Share Based Payments (5.4) (5.6) +4% +4% Segment Profit after SBP 30.8 30.7 - (6%)
Slide 16: Glossary
Glossary Q1 2020 is adjusted to add back 2.5 months of O&M and 3 months of OneVue pre-acquisition trading results from January to March 2020 Pro forma Q1 2021 is adjusted to exclude annual leave and remove currency from reported figures Rolling 12 month Pro Forma NPAT (excluding interest and finance c
Slide 17: Disclaimer
Disclaimer The material in this presentation is intended to be general background information on Iress Limited and its activities, current at the date of the presentation. The information is provided in summary form and does not purport to be complete. It is not intended to be relied upon as advice
Slide 18: Contact
Contact Andrew Walsh, CEO John Harris, CFO +61 3 9018 5800 iress.com