Slide 1: Information for release to the market
For personal use only The Manager Company Announcements Office Australian Stock Exchange Exchange Centre 20 Bridge Street SYDNEY NSW 2000 17 August 2017 IRESS LIMITED - INFORMATION FOR RELEASE TO THE MARKET In accordance with the Listing Rules, please find enclosed for immediate release to the marke
Slide 2: 2017 Half Year Results
For personal use only 2017 Half Year Results For the six months ended 30 June 2017 17 August 2017 iress.com 1
Slide 3: Presentation overview
Presentation overview For personal use only 1 H17 overview 2 Financial information Andrew Walsh Managing Director & CEO 3 Delivery on strategy 4 Segment overview John Harris CFO 5 Q&A iress.com 2
Slide 4: HY17 Overview
For personal use only HY17 Overview. iress.com 3
Slide 5: HY17 Overview: Key project focus, acquisitions contributing
HY17 OVERVIEW Key project focus, acquisitions contributing For personal use only $AUDm 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Operating Revenue 194.3 195.4 211.8 p9% p8% Constant currency basis (3) 185.5 195.4 211.7 p14% p8% Segment Profit (1) 63.1 60.4 59.6 q6% q1% Constant currency basis (3) 61.2
Slide 6: Key business highlights
HY17 Overview Key business highlights Strong progress • Deployment to CBA on XPLAN and XPLAN Prime; conversion of Prime client pipeline commenced. For personal use only on key client • ViewPoint roll out commenced in Australia with successful delivery to nabtrade. product milestones and • Successful
Slide 7: Change in segment reporting
HY17 OVERVIEW Change in segment reporting For personal use only As previously outlined, IRESS has changed its approach to segment reporting to provide greater insight into its financial performance, reduce the complexity of cost allocations, and to better reflect IRESS’ strategy to develop and deplo
Slide 8: Segment summary
HY17 OVERVIEW Segment summary For personal use only $AUDm Revenue Direct Contribution Contribution Margin % Constant currency basis (1) 1H16 2H16 1H17 1H16 2H16 1H17 1H16 2H16 1H17 APAC FM 56.0 57.4 57.5 41.8 42.3 42.0 75% 74% 73% ANZ WM 43.5 50.3 61.6 35.9 39.9 46.0 82% 79% 75% UK 50.0 53.4 52.4 32
Slide 9: Client Segment Overview
HY17 OVERVIEW Client Segment Overview For personal use only Resilient revenue reflects quality of product and relationships in both Australia and Asia. Continuing sell-side cost pressure in Australia expected to have more visible revenue impact in second half of 2017 and into 2018. Delivery to Mayba
Slide 10: Financial information
For personal use only Financial information. iress.com 9
Slide 11: Ongoing revenue and profit growth
FINANCIAL INFORMATION Ongoing revenue and profit growth Impact of decline in non-recurring fees and decline in Exchange Portal. Core recurring licence revenue up For personal use only REVENUE 4.7 0.3 0.1 11.3 (1.0) 0.8 0.1 211.8 195.4 2H16 Revenue APAC FM ANZ WM UK UK Lending South Africa Canada FX
Slide 12: Results reflect client delivery & product investment
FINANCIAL INFORMATION Results reflect client delivery & product investment For personal use only AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Non-operating costs are primarily: Operating Revenue 194.3 195.4 211.8 p9% p8% • Integration costs associated with the businesses acquired made in 2015 and
Slide 13: Strong balance sheet, conservatively geared
FINANCIAL INFORMATION Strong balance sheet, conservatively geared For personal use only AUD (m) Jun 2016 Dec 2016 Jun 2017 AUD (m) Jun 2016 Dec 2016 Jun 2017 Cash 33.3 23.0 20.7 Cash 33.3 23.0 20.7 Trade and other receivables 39.2 50.1 60.2 Borrowings (1) (190.6) (179.1) (195.7) Assets held for sale
Slide 14: Strong and sustainable cash flow and dividends
FINANCIAL INFORMATION Strong and sustainable cash flow and dividends For personal use only OPERATING CASH FLOW CASH CONVERSION 110% 120 100 90 100% 100 80 70 90% AUD (cents) 80 AUD (m) 60 80% 60 50 40 70% 40 30 20 20 60% 10 0 0 50% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H14 2H14 1H15 2H1
Slide 15: Delivery on strategy
For personal use only Delivery on strategy. iress.com 14
Slide 16: XPLAN Prime – one of multiple advice channels
DELIVERY ON STRATEGY XPLAN Prime – one of multiple advice channels For personal use only Multiple advice channels and ability to switch People don’t stick to one channel forever and don’t want to switch advice providers as their needs evolve. Digital solutions are relevant to all channels, but in di
Slide 17: Scaled benefits of XPLAN Prime
DELIVERY ON STRATEGY Scaled benefits of XPLAN Prime For personal use only Optimised for efficiency Multi-channel delivery One unified solution Fast, efficient and simple Supports face to face, telephone, One client file, one copy of advice with strategy optimisation and online engagement and advice
Slide 18: Market data and front-end investment
DELIVERY ON STRATEGY Market data and front-end investment • Market data content supporting increasing international trade execution, and broad portfolios of integrated wealth solutions. For personal use only • Expanded content through Proquote and INET acqusitions being delivered across IRESS platfo
Slide 19: Integrated wealth management & trading
DELIVERY ON STRATEGY Integrated wealth management & trading For personal use only About Tilney Group About CBAM About Echelon Wealth Partners Provider of financial planning and UK provider of financial planning Canadian provider of wealth investment services in UK. £20bn and investment service to hi
Slide 20: Segment overview
For personal use only Segment overview. iress.com 19
Slide 21: APAC - Financial Markets
SEGMENT OVERVIEW APAC - Financial Markets Resilient Australian revenue, client delivery success in Asia creating opportunities For personal use only Continuing revenue resilience in Australia and stable CFD revenue in AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Asia, reflecting product strength a
Slide 22: APAC - Wealth Management
SEGMENT OVERVIEW APAC - Wealth Management Rollout of XPLAN to CBA commenced, first phase of Prime delivered; further Prime clients secured For personal use only Revenue growth reflects contribution by Financial Synergy, ongoing take-up AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 across existing c
Slide 23: United Kingdom
SEGMENT OVERVIEW United Kingdom First half result reflects delivery focus, well positioned for accelerated growth in second half For personal use only Recurring intermediary software revenue +6% in 1H17, reflecting continuing XPLAN GBP (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 delivery and momentum
Slide 24: Lending
SEGMENT OVERVIEW Lending TSB tracking well; promising pipeline For personal use only Growth in revenue and direct contribution from 2H16 reflects ongoing client GBP (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 delivery activity. Atom Bank has provided a strong reference of functional benefit and value
Slide 25: South Africa
SEGMENT OVERVIEW South Africa Continuing underlying growth; INET expands market role For personal use only Continuing strong growth in underlying revenue and contribution against ZAR (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 a backdrop significantly reduced JSE trading volumes in 2017 (15% down YTD
Slide 26: Canada
SEGMENT OVERVIEW Canada Wealth activity heightened following wealth client delivery; current commitments immediate priority For personal use only Revenue growth reflects client project deliveries and growth in recurring CAD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 subscription revenue underpinned
Slide 27: Functional segments
SEGMENT OVERVIEW Functional segments For personal use only Product and Technology The scale of investment in product and development is at the heart of IRESS’ success and market position, supporting client retention and future recurring revenue growth. AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16
Slide 28: Appendices
For personal use only Appendices. iress.com 27
Slide 29: Segment summary - reported currency
APPENDIX 1 Segment summary - reported currency For personal use only $Am Revenue Direct Contribution Contribution Margin % Reported currency 1H16 2H16 1H17 1H16 2H16 1H17 1H16 2H16 1H17 APAC FM 56.0 57.4 57.5 41.8 42.3 42.0 75% 74% 73% ANZ WM 43.5 50.3 61.6 35.9 39.9 46.0 82% 79% 75% UK 57.4 53.4 51
Slide 30: Depreciation and amortisation
APPENDIX 2 Depreciation and amortisation For personal use only D&A - Operational 1H16 2H16 1H17 Depreciation Plant & Equipment 3.1 3.3 3.5 Amortisation Software (3rd Party Purchased) 2.1 2.2 2.5 Total 5.2 5.5 6.0 D&A – Acquisition 1H16 2H16 1H17 2H17 1H18 2H18 Related Avelo 1.3 1.1 0.7 0.8 0.7 0.6 P
Slide 31: Office contact details
For personal use only AUSTRALIA NEW ZEALAND ASIA Melbourne | +61 3 9018 5800 Auckland | +64 9 300 5571 Hong Kong | +852 3965 3343 Sydney | +61 2 8273 7000 Wellington | +64 4 462 6850 Singapore | +65 6672 6288 Perth | +61 8 6211 5900 Brisbane | +61 7 3011 4700 Adelaide | +61 3 9018 5800 CANADA SOUTH
Slide 32: Disclaimer
Disclaimer For personal use only 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