Slide 1: ASX Limited 2007 Full-Year Results
For personal use only ASX Limited 2007 Full-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO Eric Mayne, CSO 16 August 2007 Sydney, Australia
Slide 2: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about ASX’s activities current as at the date of this presentation (16 August 2007). It is provided in summary and does not purport to be complete. You should not rely upon it as advice
Slide 3: Important Notes
Important Notes The financial statistics, including comparables, in this report are For personal use only based on ASX’s pro-forma income statement which itself is not audited, but is based upon externally audited accounts. The pro- forma income statement is presented as if ASX and SFE were combined
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Financial and Operational Highlights Alan Bardwell • Markets Supervision Highlights Eric Mayne • Outlook and Post Balance Date Activity Robert Elstone • Questions • Close
Slide 5: Introduction
For personal use only Introduction Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights FY07
Financial Highlights FY07 • Complete Annual Report released this morning ; For personal use only MD Report; CFO Report; Value Proposition; Capital and Risk Management; Markets Supervision; Corporate Governance; Corporate Responsibility. • Operating Revenue up 22.7% to $552.7 million ; • Cash operati
Slide 7: Business Highlights FY07
Business Highlights FY07 • ASX/SFE merger largely complete For personal use only • System enhancements – CLICK XT/ITS, EXIGO, CAP II • System availability ¾ 100% CLICK XT/ITS, CHESS, SECUR ¾ 99.9% SYCOM, 99.4% EXIGO • Record activity levels in equity and futures markets trading volumes, and listings
Slide 8: ASX Financial and Operational Highlights
For personal use only ASX Financial and Operational Highlights Alan Bardwell Chief Financial Officer
Slide 9: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only FY07 FY06 Variance Variance $ million $ million $ million % Operating Revenue 552.7 450.4 102.3 22.7% Cash Operating Expenses 138.8 168.8 (30.0) (17.8%) EBITDA 413.9 281.6 132.3 47.0% Depreciation and Amortisation 15.0 14.6 0.4 2.7% Inte
Slide 10: Revenue Highlights FY07
Revenue Highlights FY07 For personal use only Change From FY06 38.6% 31.5% 11.7% 37.0% 4.4% 22.7% (pcp) $ million $600 ($2.6) $552.7 $16.6 $550 $16.2 $39.3 $500 $32.8 $450.4 $450 $400 $350 FY06 Lis tings Cash Derivatives Inform ation Other FY07 Operating Market Services Operating Revenue Revenue Bas
Slide 11: Market Activity - Listings
Market Activity - Listings • 284 new listings in FY07 (227 pcp) For personal use only $80 $1.8 IPO Capital (LHS) • Total number of listed entities at 30 Secondary Capital (LHS) June 2007 was 2,090 (1,930 30 June Domestic Market Capitalisation (RHS) 2006) $60 $1.2 • Total Capital raised in FY07 of $7
Slide 12: Market Activity – Cash Market
Market Activity – Cash Market For personal use only ASX Cash Market – Volume ASX Cash Market – Value 30.0 $8.00 800.0 1.90 Total Trades (LHS) Total Value (LHS) Total Fee per Trade (RHS) bps per $1 Value (RHS) $7.00 24.0 600.0 $6.00 1.60 18.0 $ billion million bps $5.00 400.0 12.0 $4.00 1.30 200.0 6.
Slide 13: Market Activity – Derivatives
Market Activity – Derivatives For personal use only ASX Derivatives SFE Derivatives 15.0 $1.90 50.0 $2.10 Total Contracts Traded (LHS) Total Contracts Traded (LHS) Average Fee per Contract (RHS) Average Fee per Contract (RHS) 40.0 $1.90 10.0 $1.60 30.0 million million $1.70 20.0 5.0 $1.30 $1.50 10.0
Slide 14: Financial Performance – Expenses
Financial Performance – Expenses For personal use only FY07 FY06 Variance Variance Expenses $ million $ million $ million % Staff Expenses 75.2 92.9 (17.7) (19.1%) Occupancy Expenses 16.1 19.9 (3.8) (19.1%) Equipment Expenses 25.5 26.4 (0.9) (3.4%) Administration Expenses 17.4 25.8 (8.4) (32.6%) Var
Slide 15: Financial Performance FY07 – Expenses
Financial Performance FY07 – Expenses Change from FY06 $ million For personal use only $200 $190 $180 $168.8 ( $21.4 ) $170 $160 Expenses Down $150 ( $9.8) ($30m) (17.8%) $138.8 $1.2 $140 $130 $120 $110 FY06 Cash Merger Other ASXMS FY07 Cash operating synergies reductions investments operating expen
Slide 16: Significant Items
Significant Items • Total significant items expenses pre-tax FY07 $32.9m (1H07 $27.6m) For personal use only • Additional merger restructure costs of $5.3m in 2H07 • No further merger related costs anticipated FY07 $ million Merger Restructure Expenses Redundancy and Outplacement $10.0 Premises Rest
Slide 17: Capital Structure and Management
Capital Structure and Management • Dividend policy – 90% of Normal NPAT, fully franked For personal use only FY07 total dividend = 96% of Statutory NPAT • Capital reduction of $100m in October 2006 • Total cash returns of 222.3 cents per share (120.1 cps pcp) • No further near-term capital managemen
Slide 18: Annual Report - Financials
Annual Report - Financials For personal use only • Profitability • Activity drivers • Balance Sheet • Capital expenditure • Capital management and adequacy • Liquidity and risk management • Statutory Accounts
Slide 19: ASX Markets Supervision
For personal use only ASX Markets Supervision Eric Mayne Chief Supervision Officer
Slide 20: Markets Supervision Highlights
Markets Supervision Highlights • ASX Markets Supervision established 1 July 2006 For personal use only Manages all core ASX supervisory activities Chief Supervision Officer reports to subsidiary Board CSO chairs ASX Corporate Governance Council ¾ Revised Principles and Recommendations released
Slide 21: Markets Supervision Highlights
Markets Supervision Highlights • Monitoring and enforcement activity for FY07 For personal use only 117,877 company announcements processed (up 13%) 610 price queries issued (up 17%) resulting in 488 subsequent market announcements 77 (ASX and SFE-market) referrals to ASIC (up 54%) including ¾
Slide 22: Outlook and Post Balance Date
For personal use only Outlook and Post Balance Date Robert Elstone Managing Director and CEO
Slide 23: Post Balance Date – External Environment
Post Balance Date – External Environment • Global and domestic equity market volatility For personal use only Largest single day falls in S&P/ASX 200 since 11 September 2001 (down 4.1%, 12 Sept 07) ¾ Down 3.7%, 10 Aug 07 ¾ Down 3.3%, 1 Aug 07 ¾ Down 1.9%, 8 Aug 07 • US credit spread volatility C
Slide 24: Post Balance Date – External Environment
Post Balance Date – External Environment • US credit spread volatility (continued) For personal use only Currency markets pointing to some unwinding of Yen carry trade Likely to slow private equity momentum • Increase in official cash rate by RBA in August In keeping with a strongly growing do
Slide 25: Post Balance Date – Impact on ASX
Post Balance Date – Impact on ASX • 49 new entities listed 1 Jul-15 Aug (up 96% on pcp) For personal use only • 939 new warrants series listed 1 Jul-14 Aug (up 87% on pcp) • Monthly record of 6.1 million cash market trades ($136.9 bn) in Jul 07 (up 94% on pcp) • Daily record of 438,195 cash market t
Slide 26: Post Balance Date – Impact on ASX
Post Balance Date – Impact on ASX Processes For personal use only • Company announcements • Corporate actions • Price and volume movement surveillance alerts • Waiver applications • Clearing and settlement • Risk and collateral management • Systems availability and capacity planning • Market data di
Slide 27: Questions
For personal use only Questions
Slide 28: ASX Limited 2006/2007 Full-Year Results
For personal use only ASX Limited 2006/2007 Full-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO Eric Mayne, CSO 16 August 2007 Sydney, Australia