Slide 1: ASX Limited – Full-Year 2013 Result Presentation
For personal use only ASX Limited – Full-Year 2013 Result Presentation 22 August 2013
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 (22 August 2013). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Financial Results FY13
Financial Results FY13 For personal use only Statutory Statutory Underlying Final Revenue Expenses Profit EPS Profit Dividend $617.4m $146.2m $348.2m 195.5c $348.2m 82.3c 1.1% (3.6%) 2.7% 2.6% 0.6% (3.3%) • Underlying profit after tax $348.2m, up 0.6% ‒ First half down 5.3%, second half up 7.0% ‒ Fi
Slide 4: Income Statement
Income Statement For personal use only FY13 FY12 % Variance $ Million $ Million Operating Revenue 617.4 610.4 1.1% Cash Operating Expenses 146.2 141.1 (3.6%) EBITDA 471.2 469.3 0.4% Depreciation and Amortisation 30.4 27.6 (9.9%) EBIT 440.8 441.7 (0.2%) Interest and Dividend 53.5 49.8 7.4% Profit Bef
Slide 5: Revenue Movement ($M)
Revenue Movement ($M) For personal use only Underlying revenue categories as per ASX’s segment disclosure 5
Slide 6: Revenue Performance by Half
Revenue Performance by Half For personal use only 1H13 2H13 % Variance % Variance $ Million $ Million Listings and Issuer Services 73.6 7.3% 66.1 1.9% Cash Market 54.9 (18.0%) 59.7 3.8% Information Services 30.6 (11.7%) 31.2 (3.5%) Technical Services 24.6 8.8% 25.2 11.0% Derivatives and OTC Markets
Slide 7: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $139.7 million, up 4.7% Listings • Listings $113.2 million, up 3.0% • Capital raising flexibility for small caps ‒ 82 IPOs (99 pcp) • Enhanced reporting for mining, oil and gas ‒ Secondary capital $36.5 billion, dow
Slide 8: Cash Market
Cash Market For personal use only Highlights Areas of Focus Revenue $114.6 million, down 7.9% Trading • Includes equities trading, clearing and settlement • Centre Point enhancements (Block, Sweep, Preferencing) – 3.5% of value traded, 11.0% of • Total market value traded down 3.9% revenue • ASX on-
Slide 9: Information and Technical Services
Information and Technical Services For personal use only Highlights Areas of Focus Information Services $61.8 million, down 7.8% Information Services • Decline in usage reflects fall in equity market activity • Low latency data services for futures; equities data service in place Technical Services
Slide 10: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $197.3 million, up 4.6% Product Development • ASX 24 Derivatives $169.0 million, up 5.0% • Equity option market enhancements ‒ Record trading of futures and options contracts on • VIX and equity sectoral futures ASX
Slide 11: Austraclear Services
Austraclear Services For personal use only Highlights Areas of Focus Revenue $38.6 million, up 7.2% ASX Collateral service • Transaction revenue $15.7 million, down 1.0% • Development of ASX Collateral service utilising ‒ Transaction volume down 2.1% debt securities in Austraclear; launched 29 July
Slide 12: Post-Trade Services Innovation
Post-Trade Services Innovation For personal use only EQUITIES FUTURES ASX SERVICE AVAILABLE1 OTC Clearing – July 13 Client Clearing – FY14 ASX OTC MARKETS ASX 24 ASX Collateral – July 13 Reduced risk Basel 3 ASX CLEAR GLOBAL ASX CLEAR (FUTURES) CCPs Efficient margining Broader collateral
Slide 13: Interest and Dividend Income
Interest and Dividend Income For personal use only FY13 FY12 % Highlights $ Million $ Million Variance • Total net interest income up 8.8% • ASX Group interest income down 36.5% ASX Group Interest 13.1 20.6 (36.5%) due to lower market interest rates Income • Net interest earned on collateral Net Int
Slide 14: Expenses
Expenses For personal use only FY13 FY12 % Highlights $ Million $ Million Variance • Total expenses up 3.6% Staff 87.2 82.6 (5.5%) ‒ Staff numbers up 4.8%. 529 FTEs at 30 June, compared to Occupancy 13.7 15.5 11.4% 505 FTEs at 30 June 2012. Increased to support new Equipment 22.4 21.6 (3.9%) busines
Slide 15: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 50.2 39.1 38.9 27.6 25.8 FY09 FY10 FY11 FY12 FY13 Normal Capex Data Centre Highlights • Capital expenditure in FY13 of $38.9 million ‒ Approximately half invested in risk management and post-trade services • Guidance FY14 capital expenditure approximate
Slide 16: Capital Raising
Capital Raising For personal use only Sources of funds ($ million) Uses of funds ($ million) Proceeds of the Entitlement Offer (net of costs) 540 Investment in ASX Clear (Futures) 200 Repay non-recourse debt facility 250 IRESS investment 39 General corporate purposes 51 Total 540 540 • Materially st
Slide 17: Cash Market Clearing and Settlement Income Statements
Cash Market Clearing and Settlement Income Statements For personal use only Cash Market Clearing Cash Market Settlement FY13 FY13 $ Million $ Million Operating Revenue 42.5 42.8 Cash Operating Expenses 10.1 12.3 EBITDA 32.4 30.5 Depreciation and Amortisation 1.5 0.2 EBIT 30.9 30.3 Interest 6.1 3.0 P
Slide 18: Post Balance Date Activity
Post Balance Date Activity For personal use only • Economic and market conditions ‒ Positive performance across major indices in FY13 – All Ordinaries up 22.2% between 1 July 2012 and 16 August 2013 ‒ Global economy generally more stable, with signs of recovery in the USA. European structural challe
Slide 19: Financial Results FY13
Financial Results FY13 For personal use only Statutory Statutory Underlying Final Revenue Expenses Profit EPS Profit Dividend $617.4m $146.2m $348.2m 195.5c $348.2m 82.3c 1.1% (3.6%) 2.7% 2.6% 0.6% (3.3%) • Underlying profit after tax $348.2m, up 0.6% ‒ First half down 5.3%, second half up 7.0% ‒ Fi
Slide 20: ASX Limited – Full-Year 2013 Result Presentation
For personal use only ASX Limited – Full-Year 2013 Result Presentation 22 August 2013
Slide 21: Appendices
Appendices For personal use only 1. Income Statement 2. Pro Forma Income Statement 3. Balance Sheet 4. Pro Forma Balance Sheet 5. Key Financial Ratios 6. Transaction and Activity Levels 6.1 Listings and Issuer Services 6.2 Cash Market 6.3 Information and Technical Services 6.4 ASX Derivatives 6.5 AS
Slide 22: 1. Income Statement
1. Income Statement FY09 FY10 FY11 FY12 FY13 For personal use only $ Million $ Million $ Million $ Million $ Million REVENUE Listings and Issuer Services 128.3 146.1 150.3 133.4 139.7 Cash Market 138.8 150.8 133.9 124.5 114.6 Trading 52.1 52.6 38.7 36.4 32.8 Clearing 43.7 50.8 49.6 45.9 41.6 Settlem
Slide 23: 1. Income Statement (Continued)
1. Income Statement (Continued) FY09 FY10 FY11 FY12 FY13 For personal use only $ Million $ Million $ Million $ Million $ Million Depreciation and Amortisation 15.0 18.9 23.3 27.6 30.4 EBIT 385.1 435.1 458.8 441.7 440.8 Net Interest Income 19.7 12.8 20.8 20.6 13.1 Net Interest on Participants’ Balanc
Slide 24: 2. Pro Forma Income Statement – Impact of Capital Raising
2. Pro Forma Income Statement – Impact of Capital Raising For personal use only Pro Forma – Following Actual Impact of Capital Raising FY13 Entitlement FY13 $ Million Offer $ Million Operating Revenue 617.4 617.4 Cash Operating Expenses 146.2 146.2 EBITDA 471.2 471.2 Depreciation and Amortisation 30
Slide 25: 3. Balance Sheet
3. Balance Sheet 30 Jun 09 30 Jun 10 30 Jun 11 30 Jun 12 30 Jun 13 For personal use only $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 4,019.5 3,716.8 3,318.6 3,696.2 4,496.2 Goodwill 2,262.8 2,262.8 2,262.8 2,262.8 2,317.6 Investments 172.2 20
Slide 26: 4. Pro Forma Balance Sheet – Impact of Capital Raising and IRESS investment
4. Pro Forma Balance Sheet – Impact of Capital Raising and IRESS investment For personal use only Actual Actual Pro Forma 30 Jun 12 30 Jun 13 30 Jun 13 $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 3,696.2 4,496.2 4,736.1 Goodwill 2,262.8 2,317.6 2,317.6 Investmen
Slide 27: 5. Key Financial Ratios
5. Key Financial Ratios For personal use only FY09 FY10 FY11 FY12 FY13 Basic EPS (including significant items) 180.4c 187.4c 198.4c 190.6c 195.5c Diluted EPS (including significant items) 180.2c 187.4c 198.4c 190.6c 195.5c Underlying EPS (excluding significant items) 180.4c 190.0c 200.8c 194.6c 195.
Slide 28: 6.1 Listings and Issuer Services
6.1 Listings and Issuer Services FY09 FY10 FY11 FY12 FY13 For personal use only Total domestic market capitalisation ($bn) – period end $1,098 $1,254 $1,349 $1,186 $1,347 Total number of listed entities (includes all stapled entities) - period end 2,198 2,192 2,247 2,211 2,185 Number of new listings
Slide 29: 6.2 Cash Market
6.2 Cash Market FY09 FY10 FY11 FY12 FY13 For personal use only Trading days 254 253 253 253 252 Total cash market trades ('000) 106,680 132,250 144,321 165,806 174,750 Average daily cash market trades 420,002 522,729 570,440 655,359 693,454 Open trading ($bn) $833.201 $972.090 $803.513 $717.882 $645
Slide 30: 6.3 Information and Technical Services
6.3 Information and Technical Services FY09 FY10 FY11 FY12 FY13 For personal use only Technical Services – Liquidity access No. of ASX sessions – period end 1,339 1,641 1,737 1,737 1,526 No. of ASX gateways – period end 377 404 321 302 248 No. of ASX liquidity cross connects – period end N/A N/A 71
Slide 31: 6.4 ASX Derivatives
6.4 ASX Derivatives For personal use only FY09 FY10 FY11 FY12 FY13 Trading days (ASX) 254 253 253 253 252 Total contracts ('000) * 19,005 21,654 47,248 163,898 157,293 Average daily derivatives contracts * 74,821 85,590 186,751 647,819 624,179 Average fee per derivatives contract * $1.34 $1.46 $0.65
Slide 32: 6.5 ASX Derivatives
6.5 ASX 24 Derivatives FY09 FY10 FY11 FY12 FY13 For personal use only Trading days (ASX 24) 256 256 256 256 255 Total contracts - futures ('000) ASX SPI 200 10,360 9,738 10,506 11,811 10,259 90 day bank bills 15,184 16,538 20,729 21,652 25,866 3 year bonds 22,275 30,196 38,832 42,503 47,499 10 year
Slide 33: 6.5 ASX Derivatives (Continued)
6.5 ASX 24 Derivatives (Continued) FY09 FY10 FY11 FY12 FY13 For personal use only Total contracts - options on futures ('000) ASX SPI 200 398 352 379 477 349 90 day bank bills 132 37 52 25 7 3 year bonds 203 405 562 347 526 Overnight 3 year bonds 789 1,375 2,039 1,029 1,914 Intra-day 3 year bonds 25
Slide 34: 6.6 Austraclear Services
6.6 Austraclear Services FY09 FY10 FY11 FY12 FY13 For personal use only Settlement days 252 253 253 253 252 Transactions ('000) Cash transfers 667 613 613 616 587 Fixed interest securities 329 474 638 733 763 Discount securities 326 290 237 217 183 Foreign exchange 28 30 31 22 21 Other 14 13 12 11 1
Slide 35: 6.7 CCP Participant Collateral Balances
6.7 CCP Participant Collateral Balances For personal use only FY09 FY10 FY11 FY12 FY13 $ Million $ Million $ Million $ Million $ Million ASX Clear – initial margins (cash) - period end 379.0 353.6 290.6 254.5 561.4 ASX Clear (Futures) – initial margins House – period end 931.1 615.0 495.3 686.6 907.
Slide 36: 7. Free Cash Flow Summary
7. Free Cash Flow Summary ASX Group Cash FY09 FY10 FY11 FY12 FY13 For personal use only $ Million $ Million $ Million $ Million $ Million Total cash and short-term investments 4,019.5 3,716.8 3,318.6 3,696.1 4,496.2 Less participants’ margins and commitments (3,608.6) (2,990.2) (2,516.4) (2,939.6) (
Slide 37: 8. Risk-Based Capital
8. Risk-Based Capital *Pro Forma For personal use only ASX Group Equity FY09 FY10 FY11 FY12 FY13 $ Million $ Million $ Million $ Million $ Million Shareholders equity 2,773.4 2,921.3 3,021.1 2,995.0 3,606.4 Less goodwill (2,262.8) (2.262.8) (2,262.8) (2,262.8) (2,317.6) Net tangible equity 510.6 658
Slide 38: 9. Clearing Houses Funded Financial Resources
9. Clearing Houses Funded Financial Resources For personal use only ASX Clear default fund ($ millions)1 ASX Clear (Futures) default fund ($ millions)2 (over and above participants’ collateral) (over and above participants’ collateral) A$650m Further $180m funds from ASX 180 A$250m A$250m Group $100
Slide 39: 10. International Regulatory Framework
10. International Regulatory Framework The regulatory framework for Central Clearing Counterparties (CCPs) is continuing to evolve, with potential For personal use only consequences for ASX's CCPs – in particular ASX Clear (Futures) European Union (EU) USA Why • Local branches of EU banks can only
Slide 40: ASX Limited – Full-Year 2013 Result Presentation
For personal use only ASX Limited – Full-Year 2013 Result Presentation 22 August 2013