Slide 1: ASX Limited – Full-Year 2012 Results Presentation
For personal use only ASX Limited – Full-Year 2012 Results Presentation 16 August 2012
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 (16 August 2012). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Financial Results FY12
Financial Results FY12 For personal use only Statutory profit after tax $339.2 million, down 3.7% Significant items $7.0 million after tax Earnings per share 193.7 cents, down 3.9% Underlying profit after tax (excluding significant items) $346.2 million, down 2.9% Operating revenue down 1.
Slide 4: Income Statement FY12
Income Statement FY12 For personal use only FY12 FY11 Variance $ Million $ Million % Operating Revenue 610.4 617.6 (1.2%) Cash Operating Expenses 141.1 135.5 (4.1%) EBITDA 469.3 482.1 (2.7%) Depreciation and Amortisation 27.6 23.3 (18.5%) EBIT 441.7 458.8 (3.7%) Interest and Dividend Income 49.8 47.
Slide 5: Income Statement by Half
Income Statement by Half For personal use only 1H12 1H12 2H12 2H12 $ Million % Variance $ Million % Variance Operating Revenue 315.1 2.8% 295.3 (5.1%) Cash Operating Expenses 70.4 (3.4%) 70.7 (4.9%) EBITDA 244.7 2.6% 224.6 (7.9%) Depreciation and Amortisation 12.9 (14.2%) 14.7 (22.5%) EBIT 231.8 2.1
Slide 6: Revenue Movement
Revenue Movement For personal use only Revenue Movement FY12 ($m) 617.6 (16.9) 2.2 (0.5) 610.4 16.5 (9.4) 4.9 (4.0) FY11 Listings and Cash Market Information Technical Derivatives Austraclear Other FY12 Issuer Services Services Services Services % Change (11.2%) (7.0%) (5.6%) 12.1% 9.6% 6.5% (3.1%)
Slide 7: Diversified Revenue Profile
Diversified Revenue Profile For personal use only FY12 ($610.4 million) FY11 ($617.6 million) Austraclear Other Austraclear Other Services 3% Services 3% 6% Listings & 5% Listings & Issuer Issuer Services Services Derviatives 22% 24% 31% Derviatives Cash Market 28% Trading 6% Cash Market Cash Market
Slide 8: Listings and Issuer Services
Listings and Issuer Services Listings and Issuer Services For personal use only Revenue $m Highlights 150.3 Listings revenue $109.9 million, down 133.4 10.0% − Annual Listing revenue $60.5 million, up 4.7% − Initial Listing revenue $6.3 million, down 51.9% − Secondary Listing revenue $34.4 FY11 FY
Slide 9: Cash Market
Cash Market Cash Market Revenue For personal use only Highlights $m 133.9 124.5 Revenues down 7% due to weak market activity – affects trading, clearing and settlement ‒ 1st half $66.9 million, flat ‒ 2nd half $57.6 million, down 14.2% FY11 FY12 Traded value $1,185 billion, down 11.5% Trading Cl
Slide 10: Information and Technical Services
Information and Technical Services For personal use only Information Services Revenue Highlights $m Information Services revenue down 5.6% 70.9 66.9 ‒ Retail data usage (including day traders) down 19.9% in current market environment ‒ Equities professional data usage stable FY11 FY12 ‒ ASX 24 Der
Slide 11: Derivatives
Derivatives Derivatives Revenue For personal use only $m Highlights 172.2 188.7 Total Derivatives revenue growth 9.6% ASX 24 Derivatives (futures and options on futures) revenue $161.0 million, up 13.6% FY11 FY12 ‒ Total volume up 5.6%; second half ASX Derivatives ASX 24 Derivatives volumes down
Slide 12: Austraclear
Austraclear Austraclear Revenue For personal use only $m Highlights 33.8 36.0 Total Austraclear revenue growth 6.5% Transactions revenue $15.9 million, up 7.4% ‒ Transactions volume up 4.4% FY11 FY12 Holdings revenue $5.7 million, up 5.6% Transactions Holdings Registry ‒ Average holdings balan
Slide 13: Interest and Dividend Income
Interest and Dividend Income For personal use only Highlights FY12 FY11 Variance $ Million $ Million % Total net interest income up 8.0% ASX Group Interest Income 20.6 20.8 (1.0%) ASX Group interest income down 1% with 2H impacted by lower interest rates ‒ 1H12 up 13.7% Net Interest Earned on Co
Slide 14: Business Initiatives Update (1)
Business Initiatives Update (1) For personal use only Development / Technically Approvals Customer Business Area and Initiatives Consultation Ready in Place Availability Listings and Issuer Services - $133.4m • Flexible capital raising rules • Equity Research Scheme n/a • Reserves and reso
Slide 15: Business Initiatives Update (2)
Business Initiatives Update (2) For personal use only Development / Technically Approvals Customer Business Area and Initiatives Consultation Ready in Place Availability Information Services – $66.9m • Equities low latency data service • Futures low latency data service Cash Market Clearin
Slide 16: Regulatory Developments
Regulatory Developments For personal use only Financial stability Financial Market Infrastructure Critical infrastructure, location requirements CPSS-IOSCO Global Principles Clearing risk, customer account segregation, portability OTC Derivatives Clearing G20 commitment, ASX domestic solutio
Slide 17: Expenses
Expenses For personal use only Highlights FY12 FY11 Variance $ Million $ Million % Total expenses up 4.1% as per previous Staff 82.6 78.8 (4.8%) guidance Occupancy 15.5 13.6 (14.0%) ‒ Staff: fixed remuneration and long- term incentives. Average staff Equipment 21.6 21.3 (1.4%) numbers stable at 50
Slide 18: Capital Expenditure
Capital Expenditure For personal use only Capital Expenditure ($m) 34.8 20.5 18.6 15.5 1H11 2H11 1H12 2H12 Refresh Upgrades and initiatives Data centre Highlights Capital expenditure in FY12 of $39.1 million ‒ Data centre - $11.3 million ‒ Refresh - $7.6 million ‒ Upgrades and initiatives - $20.2
Slide 19: Capital and Liquidity Position
Capital and Liquidity Position For personal use only ASX Group Equity ASX Group Cash Net Tangible Equity versus ASX Group Cash versus Risk-Based Capital Attribution Cash-Backed Requirements 800.0 900.0 700.0 800.0 700.0 600.0 600.0 500.0 $ Million $ Million 500.0 400.0 400.0 300.0 300.0 200.0 200.0
Slide 20: Current Market Environment
Current Market Environment For personal use only Daily Average Value Traded $bn and S&P/ ASX 200 VIX vs CBOE S&P 500 VIX All Ordinaries Index 60 8 8000 50 7 7000 6 6000 40 5 5000 30 4 4000 3 3000 20 2 2000 10 1 1000 0 0 0 May-11 May-12 Jul-11 Mar-12 Jul-12 Feb-11 Mar-11 Apr-11 Oct-11 Feb-12 Apr-12 N
Slide 21: Post Balance Date Activity
Post Balance Date Activity For personal use only Conditions remain subdued Continued uncertainty over Eurozone debt crisis and global growth affecting market confidence (particularly retail) Intermediaries have reduced risk appetite and face cost pressures First six weeks up to 10 August ref
Slide 22: FY12 Summary
FY12 Summary For personal use only Statutory profit after tax $339.2 million, down 3.7% Significant items $7.0 million after tax Earnings per share 193.7 cents, down 3.9% Underlying profit after tax (excluding significant items) $346.2 million, down 2.9% Operating revenue down 1.2% Inter
Slide 23: ASX Limited – Full-Year 2012 Results Presentation
For personal use only ASX Limited – Full-Year 2012 Results Presentation 16 August 2012
Slide 24: Appendices
Appendices For personal use only 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 4.1 Listings and Issuer Services 4.2 Cash Market 4.3 Information and Technical Services 4.4 ASX Derivatives 4.5 ASX 24 Derivatives 4.6 Austraclear Services 4.7 CCP Partici
Slide 25: 1. Income Statement
1. Income Statement FY08 FY09 FY10 FY11 FY12 For personal use only $ Million $ Million $ Million $ Million $ Million REVENUE Listings and Issuer Services 149.4 128.3 146.1 150.3 133.4 Cash Market 159.6 138.8 150.8 133.9 124.5 Trading 46.8 52.1 52.6 38.7 36.4 Clearing 61.8 43.7 50.8 49.6 45.9 Settlem
Slide 26: 1. Income Statement (continued)
1. Income Statement (continued) FY08 FY09 FY10 FY11 FY12 For personal use only $ Million $ Million $ Million $ Million $ Million Depreciation and Amortisation 15.9 15.0 18.9 23.3 27.6 EBIT 462.1 385.1 435.1 458.8 441.7 Net Interest Income 27.7 19.7 12.8 20.8 20.6 Net Interest on Participants Balance
Slide 27: 2. Balance Sheet
2. Balance Sheet 30 Jun 08 30 Jun 09 30 Jun 10 30 Jun 11 30 Jun 12 For personal use only $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 4,007.8 4,019.5 3,716.8 3,318.6 3,696.2 Goodwill 2,262.8 2,262.8 2,262.8 2,262.8 2,262.8 Other Assets 521.2 5
Slide 28: 3. Key Financial Ratios
3. Key Financial Ratios For personal use only FY08 FY09 FY10 FY11 FY12 Basic EPS (including significant items) 214.0c 183.2c 190.4c 201.6c 193.7c Diluted EPS (including significant items) 213.6c 183.1c 190.4c 201.6c 193.7c Underlying EPS (excluding significant items) 214.0c 183.2c 193.0c 204.0c 197.
Slide 29: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services FY08 FY09 FY10 FY11 FY12 For personal use only Total domestic market capitalisation ($bn) $1,415 $1,098 $1,254 $1,349 $1,186 Total number of listed entities (includes all stapled entities) 2,226 2,198 2,192 2,247 2,211 Number of new listings 236 45 93 160 99 Average
Slide 30: 4.2 Cash Market
4.2 Cash Market FY08 FY09 FY10 FY11 FY12 For personal use only Trading days 253 254 253 253 253 Total cash market trades ('000) 91,330 106,680 132,250 144,321 165,806 Average daily cash market trades 360,988 420,002 522,729 570,440 655,359 Total cash market value traded (including crossings) ($bn) $
Slide 31: 4.3 Information and Technical Services
4.3 Information and Technical Services FY08 FY09 FY10 FY11 FY12 For personal use only Technical Services – Liquidity Access No. of ASX sessions – period end 1,173 1,339 1,641 1,737 1,737 No. of ASX gateways – period end 384 377 404 321 302 No. of ASX liquidity cross connects – period end N/A N/A N/A
Slide 32: 4.4 ASX Derivatives
4.4 ASX Derivatives For personal use only FY08 FY09 FY10 FY11 FY12 Trading days (ASX) 253 254 253 253 253 Total contracts ('000) 23,229 19,005 21,654 47,248 163,898 Average daily derivatives contracts 91,815 74,821 85,590 186,751 647,819 Average fee per derivatives contract $1.47 $1.34 $1.46 $0.65 $
Slide 33: 4.5 ASX Derivatives
4.5 ASX 24 Derivatives FY08 FY09 FY10 FY11 FY12 For personal use only Trading days (ASX 24) 256 256 256 256 256 Total contracts - futures ('000) ASX SPI 200 9,075 10,360 9,738 10,506 11,811 90 day bank bills 23,168 15,184 16,538 20,729 21,652 3 year bonds 31,751 22,275 30,196 38,832 42,503 10 year b
Slide 34: 4.5 ASX Derivatives (continued)
4.5 ASX 24 Derivatives (continued) FY08 FY09 FY10 FY11 FY12 For personal use only Total contracts - options on futures ('000) ASX SPI 200 491 398 352 379 477 90 day bank bills 323 132 37 52 25 3 year bonds 492 203 405 562 347 Overnight 3 year bonds 909 789 1,375 2,039 1,029 Intra-day 3 year bonds 33
Slide 35: 4.6 Austraclear Services
4.6 Austraclear Services FY08 FY09 FY10 FY11 FY12 For personal use only Settlement days 253 252 253 253 253 Transactions ('000) Cash transfers 660 667 613 613 616 Fixed interest securities 306 329 474 638 733 Discount securities 374 326 290 237 217 Foreign exchange 33 28 30 31 22 Other 17 14 13 12 1
Slide 36: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances For personal use only FY08 FY09 FY10 FY11 FY12 $ Million $ Million $ Million $ Million $ Million ASX Clear – initial margins (cash) - period end 520.8 379.0 353.6 290.6 254.5 ASX Clear (Futures) – initial margins House – period end 731.0 931.1 615.0 495.3 686.
Slide 37: 5. Free Cash Flow Summary
5. Free Cash Flow Summary ASX Group Cash FY08 FY09 FY10 FY11 FY12 For personal use only $ Million $ Million $ Million $ Million $ Million Total cash and short-term investments 4,007.8 4,019.5 3,716.8 3,318.6 3,696.1 Less participants’ margins and commitments (3,653.4) (3,608.6) (2,990.2) (2,516.4) (
Slide 38: 6. Risk-Based Capital
6. Risk-Based Capital ASX Group Equity FY08 FY09 FY10 FY11 FY12 For personal use only $ Million $ Million $ Million $ Million $ Million Shareholders equity 2,754.2 2,773.4 2,921.3 3,021.1 2,995.0 Less goodwill (2,262.8) (2,262.8) (2.262.8) (2,262.8) (2,262.8) Net tangible equity 491.4 510.6 658.5 75
Slide 39: ASX Limited – Full-Year 2012 Results Presentation
For personal use only ASX Limited – Full-Year 2012 Results Presentation 16 August 2012