Slide 1: ASX cover letter: IRESS 2012 Half Year Results Presentation
24 August 2012 For personal use only The Manager Company Announcements Office Australian Stock Exchange Exchange Centre 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam IRESS 2012 Half Year Results – Presentation Please find attached a presentation relating to the company’s ha
Slide 2: Half Year Results - June 2012
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only HALF YEAR RESULTS - JUNE 2012
Slide 3: IRESS H1 Results
Presentation Title| Subtitle (change on master slide) IRESS H1 12 RESULTS HALF YEAR RESULTS – JUNE 2012 For personal use only • Group revenue (before investments) down 0.8% on H2 11, up 3.0% pcp. • Aggregate revenue growth flat over the first half. • Resilient result in light of conditions. • Apprec
Slide 4: Segment Performance Against Prior Half: Financial Markets
Presentation Title| Subtitle (change on master slide) SEGMENT PERFORMANCE AGAINST PRIOR HALF HALF YEAR RESULTS – JUNE 2012 FINANCIAL MARKETS For personal use only • Aust & NZ • South Africa(ZAR) H1’12 (partial H1’11) • Op Rev down 0.7% (up 1.0% on PY) • Op Rev R64.0m up 2.5% • Seg Profit down 2.5% (
Slide 5: Segment Performance Against Prior Half: Wealth Management
Presentation Title| Subtitle (change on master slide) SEGMENT PERFORMANCE AGAINST PRIOR HALF HALF YEAR RESULTS – JUNE 2012 WEALTH MANAGEMENT For personal use only • Aust & NZ • South Africa (ZAR) • Op Rev up 2.5% (up 10.2% on PY) • Op Rev up 8.1% (up 10.8% on PY) • Seg Profit up 9.8% (up 19.5% on PY
Slide 6: Group Performance Against Prior Half
Presentation Title| Subtitle (change on master slide) GROUP PERFORMANCE AGAINST PRIOR HALF HALF YEAR RESULTS – JUNE 2012 For personal use only • Underlying Group Profit $27.757 m Down $2.206 m, down 7.4% on prior half • Segment Contribution against prior half $A • Financial Markets Aust/NZ (0.825) •
Slide 7: Group Segment Profit Margins
Presentation Title| Subtitle (change on master slide) GROUP SEGMENT PROFIT MARGINS HALF YEAR RESULTS – JUNE 2012 For personal use only Segment Profit Margin: % Revenue per Media Release H2 2010 H1 2011 H2 2011 H1 2012 2009 2010 2011 Aust 56.4% 52.7% 50.6% 49.7% 57.2% 56.3% 51.7% Fin Mkts Can (CAD) 3
Slide 8: Strategic Charges, Non-Recurring Expenses and Tax Expense
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only STRATEGIC CHARGES NON-RECURRING EXPENSES • $7.516m for half (H2’11:$8.966m) Net non-recurring expenses before tax of •Change primarily from the Visiplan ($0.028)m, includes: software becoming fu
Slide 9: Group Recurring Subscription Revenue
Presentation Title| Subtitle (change on master slide) GROUP RECURRING SUBSCRIPTION REVENUE* HALF YEAR RESULTS – JUNE 2012 For personal use only 90 80 70 60 $A Millions 50 40 30 20 10 - H1'07 H1'08 H1'09 H1'10 H1'11 H1'12 Fin Mkts - Aust Fin Mkts - Can Fin Mkts - RSA Fin Mkts - Asia Wlth Mgt - Aust W
Slide 10: Group Segment Profit
Presentation Title| Subtitle (change on master slide) GROUP SEGMENT PROFIT * HALF YEAR RESULTS – JUNE 2012 For personal use only 50 40 30 $A Millions 20 10 - H1'07 H1'08 H1'09 H1'10 H1'11 H1'12 -10 Fin Mkts - Aust Fin Mkts - Can Fin Mkts - RSA Fin Mkts - Asia Wlth Mgt - Aust Wlth Mgt - UK Wlth Mgt -
Slide 11: Change in Group Recurring Subscription Revenue
Presentation Title| Subtitle (change on master slide) CHANGE IN GROUP RECURRING SUBSCRIPTION REV. HALF YEAR RESULTS – JUNE 2012 For personal use only 14 12 10 8 $A Millions 6 4 2 - H1'07 H1'08 H1'09 H1'10 H1'11 H1'12 -2 Fin Mkts - Aust Fin Mkts - Can Fin Mkts - RSA Fin Mkts - Asia Wlth Mgt - Aust Wl
Slide 12: Relative Impact H1'12
Presentation Title| Subtitle (change on master slide) RELATIVE IMPACT H1’12 HALF YEAR RESULTS – JUNE 2012 For personal use only 100% 80% 60% 40% 20% 0% Revenue (Recurring Segment Profit* Total Direct Staff Total Strategic Subs) Costs Charges -20% Fin Mkts - Aust Fin Mkts - Can Fin Mkts - RSA Fin Mkt
Slide 13: Operating Cashflow Per Share
Presentation Title| Subtitle (change on master slide) OPERATING CASHFLOW PER SHARE* HALF YEAR RESULTS – JUNE 2012 For personal use only $0.70 40% $0.60 35% $0.50 Effective Tax Rate cents per share $0.40 30% $0.30 $0.20 25% $0.10 $0.00 20% 2003 2005 2007 2009 2011 H1 H2 Effective Tax Rate (RHS) * Cal
Slide 14: IRESS Group Outlook
Presentation Title| Subtitle (change on master slide) IRESS GROUP OUTLOOK HALF YEAR RESULTS – JUNE 2012 For personal use only • Trading 2012 • Continued poor conditions and difficulties in client base. • Client technology initiatives offset by cost reductions, downsizing, consolidation. • Strong dem
Slide 15: Australia & New Zealand
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only HALF YEAR RESULTS - JUNE 2012 AUSTRALIA & NEW ZEALAND
Slide 16: Financial Markets
Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS HALF YEAR RESULTS – JUNE 2012 For personal use only • Reduced H1 2012 result from flatter revenue: • Revenue decreased 0.7% on H2 2011 (up 1.0% pcp) • Segment Profit decreased 2.5% on H2 2011 (down 4.8% pcp) • Revenue profile re
Slide 17: Financial Markets - 2012
Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS - 2012 HALF YEAR RESULTS – JUNE 2012 For personal use only • Australian multi-markets update: • 20/25 ChiX participants use IOS+ in part or all of trading architecture. • BMR in production with 16 clients. • IRESS Trade-through
Slide 18: Daily Trades on the ASX
Presentation Title| Subtitle (change on master slide) DAILY TRADES ON THE ASX HALF YEAR RESULTS – JUNE 2012 For personal use only 700 600 500 400 300 200 100 0 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Number of Trades Value of Trades 17
Slide 19: Market Fragmentation - Canada & Australia
Presentation Title| Subtitle (change on master slide) MARKET FRAGMENTATION – CANADA & AUSTRALIA HALF YEAR RESULTS – JUNE 2012 For personal use only COMPARATIVE MESSAGE RATES (PER TRADE PER DESTINATION) 180 170* 157 158 Number of Messages per Trade 121 120 112 105 60 47 33 26 8 11 0 0 TSX CHI-X ALPHA
Slide 20: Financial Markets - Subscription Revenue
Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS –SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2012 For personal use only 8.0 7.0 6.0 $A Millions 5.0 4.0 3.0 2007 2008 2009 2010 2011 2012 Up to August 2012 19
Slide 21: Financial Markets - Outlook
Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS - OUTLOOK HALF YEAR RESULTS – JUNE 2012 For personal use only • 2012 outlook: • Continued focus on cost management by clients and caution on outlook remains. • Client project activity continues and demands delivery focus. • Grad
Slide 22: Wealth Management
Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT HALF YEAR RESULTS – JUNE 2012 For personal use only • Strong growth driven by product differentiation and delivery: • Revenue increased 2.5% on H2 2011 (up 10.2% on pcp) • Segment Profit increased 9.8% on H2 2011 (up 19.5% on pc
Slide 23: Wealth Management - 2012
Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT - 2012 HALF YEAR RESULTS – JUNE 2012 For personal use only • XPLAN advice platform meeting business and FoFA needs: • Single dealer platform spanning all advice channels and importantly cross-referrall capability: online, scaled
Slide 24: Private Wealth Management
Presentation Title| Subtitle (change on master slide) PRIVATE WEALTH MANAGEMENT HALF YEAR RESULTS – JUNE 2012 For personal use only • Private wealth management increasingly prominent globally: • Capturing global trends of increased direct investment focus, and transition from execution-only to portf
Slide 25: Wealth Management - Subscription Revenue
Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT – SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2012 For personal use only 5.0 4.0 $A Millions 3.0 2.0 1.0 0.0 2007 2008 2009 2010 2011 2012 Up to August 2012 24
Slide 26: Wealth Management Outlook
Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT OUTLOOK HALF YEAR RESULTS – JUNE 2012 For personal use only • 2012 outlook: • Positive revenue momentum from first half into early trading. • Growth driven by institutional rollouts and organic & prospective demand across client
Slide 27: Canada
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only HALF YEAR RESULTS - JUNE 2012 AUSTRALIA CANADA & NEW ZEALAND
Slide 28: Canada - Overview
Presentation Title| Subtitle (change on master slide) CANADA - OVERVIEW HALF YEAR RESULTS – JUNE 2012 For personal use only • Reduced result: • Revenue (CAD) decreased 7.6% on H2 2011 (down 1.0% on pcp) • Segment Profit (CAD) decreased 21.2% on H2 2011 (down 9.1% on pcp) • Half comparison impacted b
Slide 29: Canada - Overview
Presentation Title| Subtitle (change on master slide) CANADA - OVERVIEW HALF YEAR RESULTS – JUNE 2012 For personal use only • Continued delivery on Canadian Institutional OMS with full order lifecycle capability now in early release. An integrated single solution at competitive price point expecting
Slide 30: Broadening Product/Business Segments
Presentation Title| Subtitle (change on master slide) BROADENING PRODUCT/BUSINESS SEGMENTS HALF YEAR RESULTS – JUNE 2012 For personal use only • IRESS Professional Market Data • Localised features and content continue to be delivered as userbase extends. • Differentiated offer with tight integration
Slide 31: Daily Trades in Canada
Presentation Title| Subtitle (change on master slide) DAILY TRADES IN CANADA* HALF YEAR RESULTS – JUNE 2012 For personal use only 600 Alpha commenced H2’08 Chi_X 500 commenced H1’08 Common Base from 2007 Pure Market 400 commenced H1’07 300 Triact & Omega commenced H2’07 200 100 - Jan-07 Jan-08 Jan-0
Slide 32: Canada - Monthly Subscription Revenue
Presentation Title| Subtitle (change on master slide) CANADA – MONTHLY SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2012 For personal use only 1.6 CAD$ Millions 1.2 0.8 0.4 2007 2008 2009 2010 2011 2012 *Assumes 100% ownership Up to August 2012 31
Slide 33: Canada - Outlook
Presentation Title| Subtitle (change on master slide) CANADA - OUTLOOK HALF YEAR RESULTS – JUNE 2012 For personal use only • 2012 outlook • Trading has continued to reflect the deteriorating conditions. • Continued strategic work with clients on core trading architecture and extending to adjacent bu
Slide 34: South Africa
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only HALF YEAR RESULTS - JUNE 2012 AUSTRALIA CANADA SOUTH AFRICA & NEW ZEALAND
Slide 35: South Africa
Presentation Title| Subtitle (change on master slide) SOUTH AFRICA HALF YEAR RESULTS – JUNE 2012 For personal use only • Solid South African result across segments given investment ahead of revenue growth: • Total revenue increased 4.0% (ZAR) on H2 2011 (up 19.7% pcp) • Segment Profit declined 7.8%
Slide 36: South Africa - 2012
Presentation Title| Subtitle (change on master slide) SOUTH AFRICA – 2012 HALF YEAR RESULTS – JUNE 2012 For personal use only • Seamless transition to evolved trading architecture, offering new opportunities • JSE trading engine now deployed in SA, live from July. • Cash and derivative exchange gate
Slide 37: South Africa - 2012
Presentation Title| Subtitle (change on master slide) SOUTH AFRICA – 2012 HALF YEAR RESULTS – JUNE 2012 For personal use only • Private Wealth Management – in production, strong pipeline, numerous implementations: • Strong RSA offering intersecting financial markets and wealth strengths. • Solution
Slide 38: South Africa - Monthly Subscription Revenue
Presentation Title| Subtitle (change on master slide) SOUTH AFRICA – MONTHLY SUBSCRIPTION REVENUE HALF YEAR RESULTS – JUNE 2012 For personal use only 16 ZAR Millions 12 8 Feb 11 Jun 11 Oct 11 Feb 12 Jun 12 Up to August 2012 37
Slide 39: South Africa - Outlook
Presentation Title| Subtitle (change on master slide) SOUTH AFRICA - OUTLOOK HALF YEAR RESULTS – JUNE 2012 For personal use only • 2012 outlook • Trading has commenced with positive momentum from H1. • Investment in financial markets delivery and architecture during H1 provides confident platform fo
Slide 40: Asia
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only HALF YEAR RESULTS - JUNE 2012 AUSTRALIA CANADA ASIA & NEW ZEALAND
Slide 41: Asia
Presentation Title| Subtitle (change on master slide) ASIA HALF YEAR RESULTS – JUNE 2012 For personal use only • Revenue growth delayed but progressing positively: • Material impact divisionally by MF Global collapse late 2011. Working to offset through replacement and additional platform opportunit
Slide 42: United Kingdom
Presentation Title| Subtitle (change on master slide) HALF YEAR RESULTS – JUNE 2012 For personal use only HALF YEAR RESULTS - JUNE 2012 AUSTRALIA CANADA UNITED KINGDOM & NEW ZEALAND
Slide 43: Wealth Management (UK)
Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT HALF YEAR RESULTS – JUNE 2012 For personal use only • Strategic medium-long term growth initiative in UK commenced November 2011. • Established with significant seed client and experienced team. Represents low risk profile compa
Slide 44: Financial Markets (UK)
Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS HALF YEAR RESULTS – JUNE 2012 For personal use only • Leveraging UK infrastructure investment across wealth management and financial markets. • Redundant data centres now operational in London. • International market data and or
Slide 45: Contact IRESS
Presentation Title| Subtitle (change on master slide) CONTACT IRESS HALF YEAR RESULTS – JUNE 2012 For personal use only AUSTRALIA NEW ZEALAND ASIA Melbourne | +61 3 9018 5800 Auckland | +64 9 300 5571 Hong Kong | +852 3965 3341 Sydney | +61 2 8273 7000 Wellington | +64 4 462 6850 Singapore | +65 667
Slide 46: Supplementary Information
Presentation Title| Subtitle (change on master slide) SUPPLEMENTARY INFORMATION HALF YEAR RESULTS – JUNE 2012 For personal use only • Divisional dashboards • Strategic charges • Tax expense & franking • Share grants 45
Slide 47: Financial Markets - Australia
Presentation Title| Subtitle (change on master slide) FINANCIAL MARKETS - AUSTRALIA HALF YEAR RESULTS – JUNE 2012 For personal use only H2 2011 H1 2012 %Chg LC H2'11 6% 0% 6% 1% H1'12 6% 5% (A#039;000) (A#039;000) 2% 2% 3% 4% Operating Revenue 54,910 54,549 -1% Segment Profit* 27,810 27,106 -3% PAT* 18,97
Slide 48: Wealth Management - Australia
Presentation Title| Subtitle (change on master slide) WEALTH MANAGEMENT - AUSTRALIA HALF YEAR RESULTS – JUNE 2012 For personal use only H2 2011 H1 2012 %Chg LC H2'11 4% 2% 3%1% H1'12 5% 6% (A#039;000) (A#039;000) 0% 0% 5% 5% Operating Revenue 25,451 26,076 2% Segment Profit* 10,574 11,607 10% PAT* 6,910 7
Slide 49: Canada
Presentation Title| Subtitle (change on master slide) CANADA HALF YEAR RESULTS – JUNE 2012 For personal use only H2 2011 H1 2012 H2'11 3% 4% 2% 3% 2% H1'12 %Chg LC 3% 1% 2% (CAD#039;000) (A#039;000) (CAD#039;000) (A#039;000) 9% 10% Operating Revenue 12,728 12,236 11,756 11,309 -8% Segment Profit* 4,512 4,341 3,
Slide 50: South Africa
Presentation Title| Subtitle (change on master slide) SOUTH AFRICA HALF YEAR RESULTS – JUNE 2012 For personal use only H2'11 H1'12 3% 3% 4% 4% H2 2011 H1 2012 %Chg LC 7% 6% 2% 2% (ZAR#039;000) (A#039;000) (ZAR#039;000) (A#039;000) 4% 4% Operating Revenue 84,833 10,940 88,234 10,816 4% Segment Profit* 30,272 3,8
Slide 51: Asia
Presentation Title| Subtitle (change on master slide) ASIA HALF YEAR RESULTS – JUNE 2012 H1'12 For personal use only H2'11 1% 5% 1% H2 2011 H1 2012 18% 7% %Chg LC (A#039;000) (A#039;000) 1% 4% Operating Revenue 638 339 -47% 8% Segment Profit* (1,685) (2,113) 25% 1% PAT* (1,279) (1,594) 25% 6% 66% Non Recu
Slide 52: United Kingdom
Presentation Title| Subtitle (change on master slide) UNITED KINGDOM HALF YEAR RESULTS – JUNE 2012 For personal use only H2'11 0%3%0% 1% H1'12 1%4% 1% H2 2011 H1 2012 9% %Chg LC (GBP#039;000) (A#039;000) (GBP#039;000) (A#039;000) Operating Revenue 0 0 14 22 Segment Profit* (78) (119) (807) (1,238) PAT* (54) (83
Slide 53: Group Strategic Charges
Presentation Title| Subtitle (change on master slide) GROUP STRATEGIC CHARGES HALF YEAR RESULTS – JUNE 2012 20 For personal use only 15 $A Millions 10 5 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fin Mkts Aust Fin Mkts Can Fin Mkts RSA Fm Asia Wlth Mgt Aust Wlth Mgt RSA Wlth Mgt Asia UK AUD
Slide 54: Non-Amortising Intangibles
Presentation Title| Subtitle (change on master slide) NON-AMORTISING INTANGIBLES HALF YEAR RESULTS – JUNE 2012 For personal use only Cost (AUD) Description $m Amortisation period Canada Fin Mkts LP Goodwill 8.498 Fin Mkts RSA Peresys Goodwill 10.551 Plantech Goodwill 3.157 Visiplan Goodwill 10.695 G
Slide 55: Share Grants
Presentation Title| Subtitle (change on master slide) SHARE GRANTS HALF YEAR RESULTS – JUNE 2012 • Value of staff share grants made in May 2012 (excludes MD): For personal use only • Deferred shares & Deferred Share Rights $6.363m (2011: $5.714m) • Performance Rights $1.510m (2011: $1.595m) • Increa