Iress Limited · ASX:IRE
Iress — Macquarie Emerging Leaders May 2009
24 slides from Iress's conference presentation, May 6, 2009
Slide 1: Macquarie Emerging Leaders
Macquarie Emerging Leaders | May 2009 For personal use only Macquarie Emerging Leaders 6th May 2009
Slide 2: IRESS 2008 Full Year Results
Macquarie Emerging Leaders | May 2009 IRESS 2008 Full Year Results For personal use only • Adjusted Group profit $48.5 million (2007: $39.0m), up 24.4% • Wealth Management consolidation, growth & acquisition • Canadian revenue growth of 60% over 2007 & EBITDA C$4.131 up from 2007 C$(0.692) • Reporte
Slide 3: Group Performance for 2008 against Prior Year
Macquarie Emerging Leaders | May 2009 Group Performance for 2008 against Prior Year For personal use only • Adjusted Group Profit $48.540 m Up $9.522 million, 24.4% on PY • Segment Contribution against prior year $A % • Financial markets Aust/NZ 4.146 44 • Financial markets Canada 3.687 39 • Wealth
Slide 4: Review of Group Recurring Subscription Revenue
Macquarie Emerging Leaders | May 2009 Review of Group Recurring Subscription Revenue For personal use only 70 60 $A Millions 50 40 30 20 10 0 H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 Wealth Mgt RSA Wealth Mgt Aust Canada Fin Mkts Aust Fin Mkts 4
Slide 5: Review of Group EBITDA
Macquarie Emerging Leaders | May 2009 Review of Group EBITDA* For personal use only 45 40 35 30 $A Millions 25 20 15 10 5 0 -5 H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 Wealth Mgt RSA Wealth Mgt Aust Canada Fin Mkts Aust Fin Mkts *Defintion of EBITDA as per IRESS Media Release 5
Slide 6: EBITDA – Margin Analysis
Macquarie Emerging Leaders | May 2009 EBITDA – Margin Analysis For personal use only % Revenue per Media Release H1'07 H2'07 H1'08 H2'08 2006 2007 2008 Aust Fin Mkts 55.7% 54.1% 55.2% 55.5% 54.8% 54.8% 55.3% Can Fin Mkts (CAD)* (15.8%) 0.6% 21.3% 26.3% (4.2%) (6.4%) 23.9% Wealth Mgt Aust 40.2% 36.5%
Slide 7: Operating Cashflow per share
Macquarie Emerging Leaders | May 2009 Operating Cashflow per share* For personal use only Cash generation from the business continues to be very strong $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2002 2003 2004 2005 2006 2007 2008 * Calculated as Net Cash from Operations ÷ No shares on issue at end of
Slide 8: IRESS 2009 Group Outlook
Macquarie Emerging Leaders | May 2009 IRESS 2009 Group Outlook For personal use only • Growth weakened in all businesses at end 2008 and carried into 2009 • Tentative signs of stabilisation in all divisions but too early for firm conclusions • Modest revenue growth from existing and new clients • No
Slide 9: Australia Financial Markets
Macquarie Emerging Leaders | May 2009 Australia Financial Markets For personal use only • Revenue peaked in November last year and trended down since: • IRESS desktop – downsizing mainly reflected as per user • webIRESS and Internet Products – continues overweight contribution • Portfolio – growth i
Slide 10: Australia Financial Markets – Goals '09
Macquarie Emerging Leaders | May 2009 Australia Financial Markets – Goals ‘09 For personal use only • IOS+ rolled out to additional key institutional clients • Further penetrate trading terminal market with OTW / IOS+ • IPS IMA / SMA Solution rolled out to more clients and leveraging fund manager co
Slide 11: Australia Financial Markets - Outlook
Macquarie Emerging Leaders | May 2009 Australia Financial Markets - Outlook For personal use only • Revenue conditions in 1st Half 2009 continue to show: • Ongoing material levels of cancellations as clients rationalise • But some early signs of the negative factors moderating • Limited but importan
Slide 12: Australia Financial Markets – Monthly Subscription Revenue
Macquarie Emerging Leaders | May 2009 Australia Financial Markets – Monthly Subscription For personal use only Revenue 6.5 6.0 5.5 $A Millions 5.0 4.5 4.0 3.5 3.0 2.5 2003 2004 2005 2006 2007 2008 2009 12
Slide 13: IRESS Desktop Monthly $ Gross Cancellations
Macquarie Emerging Leaders | May 2009 IRESS Desktop Mthly $ Gross Cancellations For personal use only May-08 May-09 Mar-08 Mar-09 Nov-07 Nov-08 Sep-07 Sep-08 Jan-08 Jan-09 Jul-08 $ '0 00 0 -10 -20 -30 -40 -50 -60 -70 -80 -90 -100 13
Slide 14: Canada - Overview
Macquarie Emerging Leaders | May 2009 Canada - Overview For personal use only • Dramatic change from an EBITDA loss of over half a million (CAD) in 2007, to a very material contribution in 2008 of over $4.1m (CAD) • Focus remains on client service and satisfaction subsequent to the CX and KTA conver
Slide 15: Canada – Business Highlights
Macquarie Emerging Leaders | May 2009 Canada – Business Highlights For personal use only • IRESS and KTA+ continue to be enhanced to meet customer needs • National Bank Financial converted their KTA licensed service to KTA+ which further lowered costs and simplified support • 40 out of top 50 Canadi
Slide 16: Canada – Product Strategy
Macquarie Emerging Leaders | May 2009 Canada – Product Strategy For personal use only • Current strategy includes: • Trading terminals for Canadian equities and options • Retail order flow management (including US FX tools) • Institutional order management and compliance • Buy Side services • FIX co
Slide 17: Canada - Outlook
Macquarie Emerging Leaders | May 2009 Canada - Outlook For personal use only • H1 2009 trading has seen a modest net revenue increase – with small price rise and new revenue offsetting underlying cancellations. • Cost base has been reduced against H2 08 partly through the retirement of legacy infras
Slide 18: Canada – Monthly Subscription Revenue
Macquarie Emerging Leaders | May 2009 Canada – Monthly Subscription Revenue* For personal use only 1.4 1.2 CAD$ Millions 1.0 0.8 Pre-IRESS full production level offering 0.6 0.4 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 *Assumes 100% ownership 18
Slide 19: Wealth Management - Financials
Macquarie Emerging Leaders | May 2009 Wealth Management - Financials For personal use only • Aus/NZ revenue run rate over $40m pa • H2 2008 revenue up 10.6% on prior half (EBITDA +8.9%) • Medium-term growth opportunities strong • South African revenue run rate over $5.5m pa • H2 2008 revenue up 10%
Slide 20: Wealth Management – Aust & NZ Monthly Subscription Revenue
Macquarie Emerging Leaders | May 2009 Wealth Management – Aust & NZ Mthly Subscription Rev For personal use only Acquisition of 3.5 TransActive business in May 08 3.0 2.5 Acquisition of Acquisition of DMS VisiPlan business in business in Aug’08 $A Millions Apl’07 2.0 1.5 Acquisition of PlanTech busi
Slide 21: Wealth Management - Overview
Macquarie Emerging Leaders | May 2009 Wealth Management - Overview For personal use only • Demand for integrated solutions, single-vendor, with scale to support client goals in tough times • Independence, commitment and scale well-regarded • Clear industry leader in Australia, New Zealand & South Af
Slide 22: Wealth Management - South Africa
Macquarie Emerging Leaders | May 2009 Wealth Management - South Africa For personal use only • IRESS Wealth Management (Spotlight) is the leading provider in South Africa with a large installed user base (16,000) and strong established client relationships • RSA team provides client support and deve
Slide 23: Wealth Management Outlook
Macquarie Emerging Leaders | May 2009 Wealth Management Outlook For personal use only • Revenue base proving stable in H1 2009 with combination of client tightening and new opportunities. • Stable revenue and modest cost reductions will produce EBITDA increase in the 1st half for Australia /NZ (over
Slide 24: For personal use only
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