Iress Limited · ASX:IRE
Iress — H1 2015 Earnings Presentation
21 slides from Iress's earnings presentation, Aug 20, 2015
Slide 1: 2015 Half Year Results
For personal use only 2015 Half Year Results 30 June 2015 Andrew Walsh - Managing Director & CEO John Harris - CFO 20 August 2015 iress.com
Slide 2: Overview of first half result
Overview of first half result Focus on quality, predictable revenue 1H15 / 1H14 1H15 / 2H14 For personal use only 1H14 2H14 1H15 Δ % Δ % Operating Revenue ($Am) 170.2 158.8 173.2 p3.0 p1.8% p14.4 p9.1% Segment Profit(1) ($Am) 59.3 52.1 57.5 q(1.8) q(3.0%) p5.4 p10.4% Reported Profit(2) ($Am) 30.1 20
Slide 3: Overview of half year result
Overview of half year result Focus on quality, predictable revenue For personal use only Strong underlying business UK strategy on medium-term growth • Total Revenue $173.2m, up 9% on 2H14 and up • Operating Revenue in UK (ex Enterprise) is flat on 2% on 1H14 2H14 (GBP) • Financial markets business
Slide 4: 2015 half year result: Recurring revenue, strong cash flow
2015 half year result Recurring revenue, strong cash flow For personal use only 90 Operating cash flow 80 AUD Millions 70 60 50 40 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 H2 Operating Cash Flow per Share(1) 1.40 1.20 1.00 0.80 AUD 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010
Slide 5: 2015 first half result: Highly resilient and solid momentum
2015 first half result Highly resilient and solid momentum For personal use only 200 Operating Revenue 180 160 AUD Millions 140 120 100 80 60 40 20 - H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 A&NZ non-A&NZ 70 Segment Profit 60 50 AUD Millions 40 30 20 10 - H2 20
Slide 6: Highly resilient Australian business, volatility from UK Enterprise
2015 first half result Highly resilient Australian business, volatility from UK Enterprise For personal use only 180 Operating Revenue 4.8 175 0.9 0.0 0.1 7.6 0.1 AUD Millions 170 165 0.8 0.1 173.2 160 155 158.8 150 Grp H2 2014 A&NZ UK WM UK EN Canada RSA UK FM Asia FX Grp H1 2015 63 Segment Profit
Slide 7: Segment profit margins
Segment profit margins Segment Profit Margins(1) H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 H1 2015 For personal use only Australia & New Zealand AUD 46.3% 46.9% 46.6% 47.1% 45.4% 46.3% 44.5% Canada CAD 25.0% 28.5% 26.7% 30.1% 11.6% 21.0% 13.2% South Africa ZAR 31.7% 27.3% 29.5% 25.6% 31.6% 28.7% 32.
Slide 8: Australia and New Zealand: Financial Markets
Australia and New Zealand Financial Markets For personal use only 7.4 Monthly total information revenue(1) Results 1H15 / 1H14 1H15 / 2H14 1H14 2H14 1H15 Δ % Δ % 7.0 AUD (m) Operating 53.8 55.0 54.2 0.4 0.7 (0.8) (1.5) Revenue $Am Segment Profit 6.6 25.2 25.4 23.4 (1.8) (7.2) (1.9) (7.7) $Am Margin
Slide 9: Australia and New Zealand: Wealth Management
Australia and New Zealand Wealth Management For personal use only 7.0 Monthly total information revenue Results 1H15 / 1H14 1H15 / 2H14 1H14 2H14 1H15 Δ % Δ % 6.0 AUD (m) Operating 34.5 36.8 38.8 4.2 12.3 1.9 5.3 5.0 Revenue $Am Segment Profit 16.4 16.3 18.0 1.6 9.9 1.6 10.0 4.0 $Am Margin % 47.4 44
Slide 10: United Kingdom: Wealth Management
United Kingdom Wealth Management For personal use only Results 1H15 / 1H14 1H15 / 2H14 3.5 Monthly total information revenue 3.0 1H14 2H14 1H15 Δ % Δ % 2.5 GBP (m) Operating 20.4 19.9 20.0 (0.5) (2.3) 0.0 0.2 2.0 Revenue £m 1.5 Segment Profit 4.4 5.8 4.3 (0.1) (1.8) (1.5) (26.0) 1.0 £m 0.5 Margin %
Slide 11: United Kingdom: Enterprise Lending
United Kingdom Enterprise Lending For personal use only 4.0 Monthly total information & services revenue Results 1H15 / 1H14 1H15 / 2H14 3.5 * 1H14 2H14 1H15 Δ % Δ % 3.0 GBP (m) 2.5 Operating * 12.0 4.7 8.6 (3.4) (28.6) 3.9 82.5 2.0 Revenue £m 1.5 Segment Profit 3.4 (1.2) 2.7 (0.7) (21.7) 3.9 316.3
Slide 12: South Africa
South Africa For personal use only 22.0 Monthly total information revenue Results 1H15 / 1H14 1H15 / 2H14 1H14 2H14 1H15 Δ % Δ % 18.0 ZAR (m) Operating 107.3 112.6 121.0 13.7 12.7 8.3 7.4 Revenue Rm Segment Profit 14.0 27.5 35.6 39.6 12.1 43.9 4.0 11.2 Rm Margin % 25.6 31.6 32.7 10.0 Mar-11 Apr-12 M
Slide 13: Canada
Canada 2.5 For personal use only Results 1H15 / 1H14 1H15 / 2H14 Monthly total information revenue 2.0 1H14 2H14 1H15 Δ % Δ % CAD (m) 1.5 Operating 9.4 9.1 9.2 (0.2) (1.8) 0.1 1.5 Revenue C$m 1.0 Segment Profit 2.8 1.1 1.2 (1.6) (56.9) 0.2 15.6 0.5 C$m Margin % 30.1 11.6 13.2 - Jul-10 Jul-11 Jul-12
Slide 14: Asia
Asia For personal use only Results 1H15 / 1H14 1H15 / 2H14 0.2 Monthly total information revenue 1H14 2H14 1H15 Δ % Δ % 0.1 AUD (m) Operating Revenue 0.9 1.0 1.2 0.3 30.8 0.2 17.2 A$m Segment Profit A$m (1.9) (1.7) (2.1) (0.1) (6.0) (0.4) (20.6) - Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 (0.1) Subs
Slide 15: Outlook
Outlook • Implementation activities support recurring revenue and growth over time. For personal use only • Investments anticipating future revenue continue to be carefully managed. • Enterprise Lending is a potential source of high growth but more difficult to predict due to heavy dependence on cli
Slide 16: Appendices
For personal use only Appendices iress.com 16
Slide 17: Segment Profit to NPAT
Segment Profit to NPAT Segment profit to NPAT (in $Am) Non-recurring expenses (in $Am) For personal use only Segment Profit 57.543 Primary balances comprise: Unrealised FX gain on internal Share based payments (5.038) 8.668 b funding arrangements Net operational unrealised Foreign Non-core non recur
Slide 18: Balance Sheet
Balance Sheet For personal use only $Am 30 Jun 14 31 Dec 14 30 Jun 15 $Am 30 Jun 14 31 Dec 14 30 Jun 15 Current Assets Current Liabilities Cash assets 68.2 74.9 75.0 Trade payables (14.1) (14.1) (12.6) Trade receivables 19.0 24.7 27.4 Other payables (21.6) (12.4) (16.5) Other receivables 14.8 9.9 9.
Slide 19: Strategic Charges
Strategic Charges 12 For personal use only 10 8 AUD Millions 6 4 2 - 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 A&NZ FM RSA UK Goodwill Impaired (Asia) AUD m Description 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 A&NZ FM Peresys Software 3.934 3.934 3.934 3.934 0.381 - - - RSA Peresys Customer List 0.073
Slide 20: 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
Slide 21: Office locations and contacts
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