Slide 1: ASX Limited – 2020 Full-Year Results Presentation Slides
20 August 2020 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Nathan Bourne ASX Limited Senior Executive Leader, Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – 2020 FULL-YEAR R
Slide 2: Full-Year Results
For personal use only 2020 ASX Limited Full-Year Results 20 August 2020
Slide 3: Agenda
Agenda For personal use only FY20 overview and COVID-19 update Dominic Stevens – CEO Financial performance Gillian Larkins – CFO Strategic update Dominic Stevens Outlook and summary Dominic Stevens Q&A – analysts followed by media Dominic Stevens and Gillian Larkins 2 |
Slide 4: FY20 overview and COVID-19 update
For personal use only Dominic Stevens – CEO FY20 overview and COVID-19 update
Slide 5: FY20 financial results
FY20 financial results Strong revenue growth offset by lower interest income with dividends per share up 4.5% For personal use only Change % change FY20 on pcp on pcp Operating revenue $938.4m $74.6 m 8.6% • Driven by heightened trading and steady growth in all four businesses Total expenses $286.2m
Slide 6: Initial reaction of markets to COVID-19: record volumes
Initial reaction of markets to COVID-19 Record volumes across our markets For personal use only Trading volume increase on previous daily record (rolling monthly) – total Australian equity market COVID-19 4,000,000 3,500,000 3,000,000 Number of trades 2,500,000 2,000,000 1,500,000 1,000,000 500,000
Slide 7: Initial reaction of markets to COVID-19: volatility
Initial reaction of markets to COVID-19 Volatility led to largest intra-day trading ranges in the history of the S&P/ASX 200 S&P/ASX 200 intraday moves – 2000 to 2020 For personal use only COVID-19 700 14% 12% 600 China devalues yuan Greek default Absolute percentage move 10% 500 Trump EU sovereign
Slide 8: FY20 activity drivers boosted by COVID-19 related activity
FY20 activity drivers boosted by COVID-19 related activity Strong secondary raisings and equities trading; record Austraclear holdings balance For personal use only Total Capital Raised ($billion) Cash Market Trading – ASX Value On-market ($billion) 27 24 26 37 887 15 541 582 530 536 70 55 56 49 41
Slide 9: Sustaining Australia's financial markets through COVID-19
Sustaining Australia’s financial markets through COVID-19 Protecting our people as we continue to operate for our customers and Australia’s economy For personal use only Trusted actions Resilient operations Efficient markets Safety and wellbeing Access to and functioning of Proactive in addressing o
Slide 10: Building an exchange for the future
Building an exchange for the future Executing our customer-focused, technology-driven strategy For personal use only Technology-driven Customer-focused New opportunities to create Expertise and capacity Pursuing adjacent products and services, and growth opportunities reduce risks and costs Upgraded
Slide 11: COVID-19 has accelerated the trend towards digitisation of processes
COVID-19 has accelerated the trend towards digitisation of processes Challenges arising from WFH have increased the need for digital solutions For personal use only Market trends accelerated by COVID-19 ASX strategy even more relevant DLT infrastructure – workflow collaboration Multi-party collabora
Slide 12: FY20 financial performance
For personal use only Gillian Larkins - CFO FY20 financial performance
Slide 13: ASX financial results
ASX financial results Diversified business model delivers record returns to shareholders FY20 2H20 1H20 FY19 FY20 v For personal use only $m $m $m $m FY19 Operating revenue 938.4 483.5 454.9 863.8 8.6% • Operating revenue up 8.6% reflecting strong Operating expenses 235.7 121.3 114.4 214.8 (9.7%) cu
Slide 14: ASX operating revenue
ASX operating revenue Up 8.6% with all businesses contributing growth For personal use only FY20 operating revenue contribution by business FY20 2H20 1H20 FY19 FY20 v $m $m $m $m FY19 Listings and Issuer Services 237.1 122.5 114.6 221.0 7.3% Derivatives and OTC Markets 317.6 160.9 156.7 304.0 4.5% T
Slide 15: Listings and Issuer Services
Listings and Issuer Services Strong secondary capital raisings and issuer services activity FY20 v For personal use only FY20 2H20 1H20 FY19 Initial listing fee revenue contribution per year FY19 under AASB 15 ($ million)1 19.2 Revenue ($million) 237.1 122.5 114.6 221.0 7.3% 18.4 17.3 175.9 88.5 87.
Slide 16: Derivatives and OTC Markets
Derivatives and OTC Markets Solid growth amidst low rate climate, assisted by record Austraclear balances FY20 v FY20 2H20 1H20 FY19 For personal use only FY19 Austraclear registry spot issuances ($billion) Revenue ($million) 317.6 160.9 156.7 304.0 4.5% Futures and OTC 242.9 122.0 120.9 233.3 4.1%
Slide 17: Trading Services
Trading Services Heightened market activity and strong market data distribution growth ASX on-market traded value FY20 v 2,000 For personal use only FY20 2H20 1H20 FY19 ($billion) FY19 Revenue ($million) 256.3 131.4 124.9 230.0 11.5% 1,500 Cash market trading 64.2 36.3 27.9 51.9 23.9% Information se
Slide 18: Equity Post-Trade Services
Equity Post-Trade Services Higher cash market and settlement activity FY20 v On-market value cleared ($billion) For personal use only FY20 2H20 1H20 FY19 FY19 Revenue ($million) 127.4 68.7 58.7 108.8 17.0% Cash market clearing 65.3 35.3 30.0 54.6 19.5% 933 Cash market settlement 62.1 33.4 28.7 54.2
Slide 19: ASX total expenses
ASX total expenses Scheduled investment in initiatives and COVID-19 impacts Expense movement ($million) FY20 2H20 1H20 FY19 FY20 v For personal use only $m $m $m $m FY19 2.6 16.4 4.6 Staff 145.4 72.9 72.5 127.7 (13.8%) Occupancy 9.7 5.0 4.7 17.9 46.0% 262.6 +8% 283.6 286.2 +1% Equipment 35.4 19.3 16
Slide 20: ASX interest and dividend income
ASX interest and dividend income Lower investment earnings partly offset by higher collateral balances FY20 2H20 1H20 FY19 FY20 v For personal use only $m $m $m $m FY19 Group net interest income 11.0 3.2 7.8 23.4 (53.0%) Average collateral balance ($billion) Lease financing cost (3.4) (1.7) (1.7) -
Slide 21: ASX balance sheet
ASX balance sheet Financially strong with record levels of participant margins Jun 20 Jun 19 For personal use only $m $m Investments in adjacencies Cash and other financial assets 13,857.0 12,270.3 • Sympli Intangibles (excluding software) 2,325.9 2,326.1 ‒ 49% shareholding (further investment in FY
Slide 22: ASX delivering to shareholders
ASX delivering to shareholders 8th straight year of growth in earnings per share Underlying earnings per share (cents) For personal use only FY20 FY20 2H20 1H20 FY19 v FY19 Underlying earnings per share (cents) 265.4 136.1 129.3 254.1 4.4% Statutory earnings per share (cents) 257.6 128.3 129.3 254.1
Slide 23: Strategic update
For personal use only Dominic Stevens – CEO Strategic update
Slide 24: Strengthening foundations into FY21 and beyond
Strengthening foundations into FY21 and beyond Building Stronger Foundations program complete; ongoing commitment to focus areas For personal use only Clearing risk Enterprise and technology risk • Continue contemporising risk • Safely manage a return to office management systems • Effectively manag
Slide 25: Building an operating platform for the future
Building an operating platform for the future Contemporisation of cash equities technology stack COMPLETED/ COMPLETING For personal use only www.asx.com.au and investor portal 1H21 Digital CUSTOMER interactions EXPERIENCE • Corporate actions straight-through-processing (STP) FY21 • Issuer portal F
Slide 26: Making business easier for customers by digitising processes
Making business easier for customers by digitising processes Corporate action straight-through-processing delivering source-of-truth data in seconds^ For personal use only Efficiency benefits through real-time machine readable data, powering process automation and dynamic data analytics Investors Cu
Slide 27: Contemporising CHESS for the back office of the 21st century
Making business easier for customers by digitising processes Contemporising CHESS for the back office of the 21st century For personal use only Critical market infrastructure replacement to deliver long-term benefits to all equity market users Investors Custodians and registries Issuers FinTechs / S
Slide 28: Expanding our customer value proposition through new products
Expanding our customer value proposition through new products Developing products that create opportunities for customers For personal use only Launched S&P/ASX All Technology Index (XTX) Expanding interest rate futures suite • Enhances the profile and understanding of ASX’s listed • Launching a fiv
Slide 29: Leveraging the power of collaborative technology
Leveraging the power of collaborative technology ASX’s technology infrastructure enables innovation For personal use only ENCOURAGING INNOVATION BY STATUS • Workspaces and data sets available via web portal Making ASX and third party financial DataSphere data easier for customers to analyse and • Pr
Slide 30: Outlook and summary
For personal use only Dominic Stevens – CEO Outlook and summary
Slide 31: Outlook
Outlook Diversified business navigating mixed short-term environment For personal use only Trading conditions • Cash equities continue to experience elevated volumes and volatility • Derivatives ‒ 90-day bank bills and three-year bond futures volumes impacted by RBA yield curve control; commodities,
Slide 32: Summary
Summary Delivered solid shareholder returns while responding to COVID-19 and progressing strategy For personal use only Diversified business delivering consistent returns • FY20 was the 10th year of consecutive EBIT growth • FY20 total DPS +4.5% to 238.9 cps Ability to respond to COVID-19 strengthen
Slide 33: Q&A
For personal use only Q&A
Slide 34: Thank you
Thank you. Ajuo asn jeuosied 10S ® ASX
Slide 35: Appendices
Appendices For personal use only 1. Income statement 2. Balance sheet 3. Key financial ratios 4. Transaction and activity levels 5. ASX Group own cash movement 6. Accounting policy change 34 |
Slide 36: 1. Income statement
1. Income statement FY16 FY17 FY18 FY19 FY20 For personal use only $million $million $million $million $million Annual listing 75.2 79.3 85.8 93.8 92.4 Initial listing 18.6 16.0 18.6 19.2 18.4 Subsequent raisings 45.1 46.5 58.9 51.2 56.1 Other listing 11.5 9.6 9.1 7.8 9.0 Listings 150.4 151.4 172.4
Slide 37: 1. Income statement
1. Income statement FY16 FY17 FY18 FY19 FY20 $million $million $million $million $million For personal use only Staff 101.1 110.6 114.6 127.7 145.4 Occupancy 14.1 14.6 16.4 17.9 9.7 Equipment 27.0 27.9 27.9 30.7 35.4 Administration 19.2 18.2 22.4 22.5 26.0 Variable 6.3 6.7 7.9 8.4 10.7 ASIC levy 2.9
Slide 38: 2. Balance sheet
2. Balance sheet 30 Jun 16 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 For personal use only $million $million $million $million $million Assets Cash and other financial assets 7,072.8 9,085.6 9,570.1 12,270.3 13,857.0 Intangibles (excluding software) 2,317.6 2,326.6 2,326.3 2,326.1 2,325.9 Software 103
Slide 39: 3. Key financial ratios
3. Key financial ratios FY16 FY17 FY18 FY19 FY20 Basic earnings per share (EPS) 1 220.4c 224.5c 230.0c 254.1c 257.6c For personal use only Diluted EPS 1 220.4c 224.5c 230.0c 254.1c 257.6c Underlying EPS 2 220.4c 224.5c 240.4c 254.1c 265.4c Dividend per share – interim 99.1c 102.0c 107.2c 114.4c 116.
Slide 40: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services FY16 FY17 FY18 FY19 FY20 For personal use only Total domestic market capitalisation ($bn) – period end $1,620 $1,777 $1,957 $2,069 $1,918 Total number of listed entities (includes all stapled entities) – period end 2,204 2,239 2,285 2,269 2,188 Number of new listings
Slide 41: 4.2 Derivatives and OTC Markets: Equity Options
4.2 Derivatives and OTC Markets: Equity Options FY16 FY17 FY18 FY19 FY20 For personal use only Trading days 254 253 252 252 255 Single stock options (‘000) 88,701 93,295 80,091 73,825 65,894 Index options and futures (‘000) 12,768 10,388 12,461 11,282 9,842 Average daily single stock options contrac
Slide 42: 4.2 Derivatives and OTC Markets: Futures and OTC
4.2 Derivatives and OTC Markets: Futures and OTC 19 FY16 FY17 FY18 FY19 FY20 For personal use only Trading days 257 256 255 255 257 Total contracts traded – futures ('000) ASX SPI 200 12,105 12,255 13,782 15,994 19,246 90 day bank bills 29,567 28,931 33,226 34,698 24,967 3 year bonds 50,105 53,233 5
Slide 43: 4.2 Futures and OTC (continued)
4.2 Derivatives and OTC Markets: Futures and OTC (continued) FY16 FY17 FY18 FY19 FY20 Total contracts traded – options on futures ('000) ASX SPI 200 363 202 140 98 65 For personal use only 3 year bonds 356 152 85 227 177 Overnight 3 year bonds 579 478 314 279 269 Intra-day 3 year bonds 660 460 344 6
Slide 44: 4.2 Derivatives and OTC Markets: Austraclear
4.2 Derivatives and OTC Markets: Austraclear FY16 FY17 FY18 FY19 FY20 Settlement days 254 253 252 253 255 Transactions ('000) For personal use only Cash transfers 590 582 605 610 645 Fixed interest securities 717 741 770 812 975 Discount securities 150 146 146 147 131 Foreign exchange 11 9 9 9 6 Oth
Slide 45: 4.3 Trading Services: Cash Market Trading
4.3 Trading Services: Cash Market Trading FY16 FY17 FY18 FY19 FY20 For personal use only Trading days 254 253 252 252 255 Total cash market trades ('000) 235,923 266,433 292,528 359,985 460,789 Average daily cash market trades 928,829 1,053,096 1,160,826 1,428,512 1,807,015 Continuous trading value
Slide 46: 4.3 Trading Services: Technical Services
4.3 Trading Services: Technical Services 1111318 FY16 FY17 FY18 FY19 FY20 For personal use only Technical Services (number at period end) ASX Distribution Platform Australian Liquidity Centre cabinets 231 285 301 324 326 Connection Services ASX Net connections 116 123 112 104 103 ASX Net service fee
Slide 47: 4.4 CCP participant collateral balances
4.4 CCP participant collateral balances FY16 FY17 FY18 FY19 FY20 $million $million $million $million $million For personal use only Balances at period end ASX Clear – initial margins 815.7 672.3 567.3 843.6 1,286.4 ASX Clear (Futures) – initial margins House 1 1,293.7 2,030.9 1,920.6 2,369.7 2,763.2
Slide 48: 5. ASX Group own cash movement
5. ASX Group own cash movement FY16 FY17 FY18 FY19 FY20 $million $million $million $million $million For personal use only ASX Group cash Total cash and short-term investments 7,072.8 9,085.6 9,565.3 12,265.0 13,857.0 Less participants’ margins and commitments (6,088.2) (8,084.7) (8,495.8) (10,801.0
Slide 49: 6. AASB Leases
6. AASB 16 Leases • Under the new accounting standard AASB 16 Leases, all applicable leases are treated as finance leases. The Group has recognised right-of-use assets and lease liabilities for all its applicable leases. Applicable leases includes those greater than 12 months. For personal use only
Slide 50: Disclaimer
Disclaimer 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 (20 For personal use only August 2020). It is provided in summary and does not purport to be complete. You should not rely upon it