Slide 1: ASX cover letter: IRESS 2014 Full Year Results Presentation
25 February 2015 ASX Market Announcements Office For personal use only ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam IRESS 2014 Full Year Results Presentation Please find enclosed a presentation relating to IRESS’ 2014 full year results. Yours si
Slide 2: 2014 full year result
For personal use only 2014 full year result 31 December 2014 Andrew Walsh - Managing Director & CEO 25 February 2015 iress.com
Slide 3: Overview of full year result
Overview of full year result Sound, diversified financial performance For personal use only 2014 vs 2013 FY13 1H14 2H14 FY14 Δ % Operating Revenue ($Am) 250.6 170.2 158.8 329.0 p78.4 p31.3 Segment Profit ($Am) 88.2 59.3 52.1 111.4 p23.2 p26.4 Reported Profit ($Am) 24.2 30.1 20.6 50.7 p26.5 p109.0 Di
Slide 4: Overview of full year result: sound, diversified financial performance
Overview of full year result Sound, diversified financial performance For personal use only A focus on growth opportunities Strong UK presence reflected • Reported Group Profit $50.7m, up 109% • Group Segment Profit $111.4m, up 26.4% • 45% revenue outside Australia • Segment Profit ex UK, up 3.4% •
Slide 5: IRESS today
IRESS today For personal use only Canada United Kingdom 72% of retail and 39% of 95% of Top100 wealth mgrs institutional sell-side order 65% of advised mortgages & flow. 25% of all mortgages Singapore Leading provider of CFD processed trading platforms Revenue: 5.6% of Group People: 52 Revenue: 32.1
Slide 6: Well positioned for change and opportunities
Well positioned for change and opportunities For personal use only • Anticipating and responding to market conditions while transforming with international scale Global scale, local relevance Connected expertise Local market presence • A significant UK presence is delivering international strength,
Slide 7: Focus on recurring revenue and strong cash flow
2014 full year result Focus on recurring revenue and strong cash flow For personal use only 180 Total information revenue AUD Millions 160 140 120 100 80 60 40 20 - H2 2010 H2 2011 H2 2012 H2 2013 H2 2014 AU FM AU WM UK FM UK WM UK ENT CAN RSA Asia 90 80 Operating cash flow 70 AUD MILLIONS 60 50 40
Slide 8: Resilient and diversified
2014 full year result Resilient and diversified For personal use only 180 Operating revenue 160 140 120 AUD millions 100 80 60 40 20 - H2 2010 H2 2011 H2 2012 H2 2013 H2 2014 AU FM AU WM UK FM UK WM UK ENT CAN RSA Asia 70 AUD millions Segment profit 60 50 40 30 20 10 - H2 2010 H2 2011 H2 2012 H2 201
Slide 9: Performance across markets. Overweight wealth contribution.
2014 full year result Performance across markets. Overweight wealth contribution. For personal use only 380 Operating Revenue 360 (1.5) 0.9 0.3 340 17.8 49.9 320 AUD Millions 300 280 8.4 0.8 260 1.8 329.0 240 220 250.6 200 180 Group 2013 AU FM AU WM UK FM UK WM UK ENT CAN RSA Asia Group 2014 120 Seg
Slide 10: 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 111.442 Primary balances comprise: Share based payments (8.918) Business acquisition expenses (1.026) Non-core non recurring items (4.609) Business restructure expenses (2.208)
Slide 11: Operating Revenue & Expenditure
Operating Revenue & Expenditure For personal use only Revenue FY 2014 1% 7% 1% FY 2013 9% 6% 8% 33% 9% 5% 43% 9% 22% 22% 25% AU FM AU WM UK WM UK ENT CAN RSA OTHER Expenditure FY 2014 FY 2013 4% 2% 4% 2% 6% 6% 1% 2% 5% 5% 82% 81% Direct Staff (inc AL) Other Employee Related Hardware & Software Occup
Slide 12: Segment Profit margins
Segment Profit margins % Operating Revenue H1 2013 H2 2013 2013 H1 2014 H2 2014 2014 For personal use only Australia Fin Markets AUD 47.5% 48.8% 48.2% 46.9% 46.1% 46.5% Australia Wealth AUD 44.2% 43.9% 44.0% 47.4% 44.7% 46.0% Total Australia AUD 46.6% 46.3% Canada CAD 25.0% 28.5% 26.7% 30.1% 11.6% 2
Slide 13: Australia and New Zealand Financial Markets
Australia and New Zealand Financial Markets 8 Monthly total information revenue AUD millions For personal use only FY13 FY14 Δ % 7 Operating Revenue $Am 107.0 108.9 $1.9 1.8% Segment Profit $Am 51.6 50.6 ($1.0) (1.9)% 6 Margin % 48.2 46.5 Subscription Revenue Total - Info Sub Revenue 5 Average FTE 2
Slide 14: Australia and New Zealand Wealth Management
Australia and New Zealand Wealth Management For personal use only 7 Monthly total Monthly total information information revenue revenue AUD millions FY13 FY14 Δ % 6 Operating Revenue $Am 63.0 71.4 $8.4 13.4% 5 Segment Profit $Am 27.7 32.7 $5.0 18.2% 4 Margin % 44.0 46.0 3 Subscription Revenue Total
Slide 15: United Kingdom Wealth Management
United Kingdom Wealth Management Monthly total information revenue For personal use only 5 GBP millions FY13 FY14 Δ % 4 Operating Revenue £m 13.8 40.3 26.5 192% 3 Segment Profit £m 0.8 10.2 9.4 1147% 2 Margin % 5.9 25.3 1 0 Average FTE 142.4 409.5 Sep 13 2014 Dec '14 Subscription Revenue Total - Inf
Slide 16: United Kingdom Enterprise Lending
United Kingdom Enterprise Lending For personal use only 4 Monthly total information & services revenue GBP millions FY13 FY14 Δ % 3 * Operating Revenue £m 7.5 16.7 9.2 123.0% 2 Segment Profit £m 0.3 2.2 1.8 550.6% 1 Margin % 4.5 13.1 0 Sep 13 2014 Dec '14 Average FTE 65.1 173.7 Total - Info Sub Reve
Slide 17: South Africa
South Africa For personal use only 20 Monthly total information Monthly revenue total information revenue ZAR millions FY13 FY14 Δ % 19 Subscription Revenue Total - Info Sub Revenue 18 Operating Revenue Rm 199.9 220.0 20.1 10.0% 17 16 Segment Profit Rm 58.9 63.1 4.3 7.2% 15 14 Margin % 29.5 28.7 13
Slide 18: Canada
Canada For personal use only 2.5 Monthly total information revenue Monthly total information revenue CAD millions FY13 FY14 Δ % 2.0 Operating Revenue $Cm 20.1 18.5 -1.6 (8.0)% 1.5 Segment Profit $Cm 5.4 3.9 -1.5 (27.6)% Margin % 26.7 21.0 1.0 Subscription Revenue Total - Info Sub Revenue Average FTE
Slide 19: Asia
Asia For personal use only 1.0 Monthly total information revenue Monthly total information revenue AUD millions FY13 FY14 Δ % 0.7 Operating Revenue $Am 1.60 1.90 0.3 18.6% Segment Profit $Am (4.0) (3.6) 0.3 7.8% 0.4 Subscription Revenue Total - Info Sub Revenue Average FTE 35.5 34.0 0.1 2010 2011 20
Slide 20: 2015 Outlook
2015 Outlook • Trading early in 2015 has commenced in line with the average of the second half of 2014. For personal use only • Expect sell-side pressures to remain in at least the short-term. Strategic initiatives of clients continue to be balanced against regulatory pressures. • Implementation eff
Slide 21: Appendices
For personal use only Appendices iress.com 20
Slide 22: Strong balance sheet
2014 full year result Strong balance sheet For personal use only 31 Dec 13 30 Jun 14 31 Dec 14 31 Dec 13 30 Jun 14 31 Dec 14 Current Assets Current Liabilities Cash assets 71.4 68.2 74.9 Trade payables (21.1) (14.1) (14.1) Trade receivables 25.7 19.0 24.7 Other payables (17.5) (21.6) (12.4) Other re
Slide 23: Treasury & Tax Expense
Treasury & Tax Expense For personal use only Treasury Tax Expense Primary balances comprise Effective tax rate for 2014 was 20.1% (2013: 33.5%). • Interest expense arising on external debt Lower effective tax rate arises from: • Amortisation of debt establishment costs • Deductions available from fu
Slide 24: Strategic Charges
Strategic Charges 20 For personal use only 15 AUD millions 10 5 0 2010 2011 2012 2013 2014 2015 2016 2017 AU FM AU WM RSA UK Goodwill Impaired (Asia) AUD $ m Description H1'13 H2'13 H1'14 H2'14 H1'15 H2'15 H1'16 H2'16 H1'17 H2'17 AU FM Peresys Software 3.934 3.934 3.934 3.934 3.934 3.934 0.381 - - -
Slide 25: Non-amortising intangibles
Non-amortising intangibles For personal use only Description Cost (AUD) $m* Amortisation period Plantech Goodwill 3.157 Visiplan Goodwill 10.695 AU WM Transactive Goodwill 0.285 DMS Goodwill 1.042 Goodwill CAN LP Goodwill 9.001 Will be subject to regular impairment Peresys Goodwill 9.270 testing RSA
Slide 26: 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 27: Office contact details
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 6672 6288 Perth | +61 8 6211 5900 Brisbane | +61 7 3011 4700 Adelaide | +61 3 9018 5800 CANADA SOUTH