Slide 1: Investor Presentation cover letter
11 June 2013 ASX Limited ABN 98 008 624 691 Exchange Centre 20 Bridge Street Sydney NSW 2000 ASX PO Box H224 Australia Square NSW 1215 Telephone +61 29227 0000 WWW.asx.com.au Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executiv
Slide 2: Investor presentation
For personal use only Investor presentation Presentation Title ASX Limited ABN 98 008 624 691 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 11 June 2013
Slide 3: Disclaimer
Disclaimer For personal use only This investor presentation (Presentation) has been prepared by ASX Limited (ABN 98 008 624 691) (ASX Limited). This Presentation has been prepared in relation to a pro rata accelerated institutional, tradeable retail entitlement offer of new ASX Limited ordinary shar
Slide 4: Disclaimer
Disclaimer Not investment advice For personal use only Each recipient of this Presentation should make its own enquiries and investigations regarding all information in this Presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations
Slide 5: Disclaimer
Disclaimer For personal use only Future performance This Presentation contains certain ‘forward looking statements’. Forward looking statements can generally be identified by the use of forward looking words such as, ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘p
Slide 6: Disclaimer
Disclaimer For personal use only Disclaimer Neither the underwriter, nor any of its or ASX Limited’s respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, d
Slide 7: Agenda
Agenda For personal use only Executive Executivesummary summary Entitlement offer Use of proceeds and rationale Financial update Summary of key risks Q&A Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv.
Slide 8: Executive summary
Executive summary For personal use only Equity raising Fully underwritten pro rata accelerated renounceable entitlement offer to raise gross proceeds of approximately $553 million Entitlements offered on a 2 for 19 basis at $30.00 per share (approximately 18.4 million new shares) to eligible sha
Slide 9: Executive summary
Executive summary For personal use only Financial update Unaudited results for the 11 months to 31 May 2013 – revenue: $562.0 million – EBITDA: $429.5 million – statutory and underlying NPAT: $318.7 million ASX expects to report statutory and underlying NPAT of approximately $346 million for the
Slide 10: Agenda
Agenda For personal use only Executive summary Entitlement EntitlementOffer offer Use of proceeds and rationale Financial update Summary of key risks Q&A Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv.
Slide 11: Overview of the Entitlement Offer
Overview of the Entitlement Offer1 For personal use only Offer size Fully underwritten 2 for 19 pro rata accelerated renounceable entitlement offer with retail entitlements trading 2 to raise approximately $553 million Approximately 18.4 million new ASX shares (New Shares) to be issued (10.5% of
Slide 12: Key dates
Key dates1 For personal use only Event Date Trading halt commences Tuesday, 11 June 2013 Institutional Entitlement Offer Tuesday, 11 June 2013 (9am) – Wednesday, 12 June 2013 (11am) Institutional shortfall bookbuild Wednesday, 12 June 2013 (4.30pm) – Thursday, 13 June 2013 (11am) Trading halt lifted
Slide 13: Agenda
Agenda For personal use only Executive summary Entitlement offer Use Useofofproceeds proceeds and rationale and rationale Financial update Summary of key risks Q&A Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitle
Slide 14: Use of proceeds
Use of proceeds For personal use only Sources of funds ($ millions) Uses of funds ($ millions) Proceeds of the Entitlement Offer (net of costs) 5391 Investment in ASX Clear (Futures) 200 Repay non-recourse debt facility 250 General corporate purposes 891 Total 539 539 Materially strengthens the ca
Slide 15: Clearing house funded financial resources
Clearing house funded financial resources For personal use only ASX Clear default fund ($ millions)1 ASX Clear (Futures) default fund ($ millions)2 (over and above participants’ collateral) (over and above participants’ collateral) A$650m Further $180m funds from ASX 180 A$250m A$250m Group $100m fr
Slide 16: Rationale
Rationale For personal use only ASX expects that the investment of additional equity in ASX Clear (Futures) will enable it to meet emerging international capital standards for central clearing counterparties ASX's clearing houses comply with RBA's Financial Stability Standards (FSS) which today
Slide 17: Rationale
Rationale For personal use only Proactively strengthens ASX's clearing infrastructure in a globally competitive environment robust financial infrastructure to support Australia's financial markets more attractive clearing counterparty for global customers positions ASX for growth in both OTC
Slide 18: International regulatory framework
International regulatory framework The regulatory framework for Central Clearing Counterparties (CCPs) is continuing to evolve, with potential For personal use only consequences for ASX's CCPs – in particular ASX Clear (Futures) European Union (EU) USA Why Local branches of EU banks can only con
Slide 19: Strength of ASX business model
Strength of ASX business model For personal use only Market Capitalisation at 7 June 2013 (US$bn) ASX revenue mix for 11 months to 31 May 2013 CME 24.0 HKEx 18.8 ICE 12.7 BM&F Bovespa 12.6 Deutsche 12.4 Boerse NYSE 10.0 Euronext SGX 6.2 ASX 6.0 LSE 5.8 NASDAQ OMX 5.5 TMX 2.5 Source: Datastream Sourc
Slide 20: Post-Trade Services Innovation
Post-Trade Services Innovation For personal use only EQUITIES FUTURES CURRENT TARGET DATES OTC Clearing – July 2013 Client Clearing – Dec 2013 ASX OTC MARKETS ASX 24 Collateral Management – July 2013 Reduced risk Basel 3 ASX CLEAR GLOBAL ASX CLEAR (FUTURES) CCPs Efficient margining Broad
Slide 21: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial Financialupdate update Summary of key risks Q&A Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv. C
Slide 22: Financial update
Financial update For personal use only (A$ million) 9 months to 11 months to 31 FY13 guidance1 March 2013 May 2013 (unaudited) (unaudited) Operating Revenue 457.1 562.0 Cash Operating Expenses 107.5 132.5 EBITDA 349.6 429.5 Depreciation and Amortisation 22.9 27.8 EBIT 326.7 401.7 Interest and Divide
Slide 23: Revenue growth
Revenue growth 11 months to 31 May 2013 For personal use only 0.7% Notes: 1. All amounts are in $ millions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 22
Slide 24: Update on market activity levels
Update on market activity levels 11 months to 11 months For personal use only May 2013 to May 2012 Listings and Issuer Services New listed entities admitted 74 92 Total listed entities (at end of month) 2,186 2,222 Initial capital raised ($million) $7,562 $8,491 Secondary capital raised includes scr
Slide 25: Update on market activity levels
Update on market activity levels 11 months to 11 months For personal use only May 2013 to May 2012 ASX Derivatives Total Equity Options & Index Futures & Options 144,975,193 150,999,577 Average daily contracts 622,211 648,067 ASX 24 Derivatives Futures – Total contracts 97,417,588 90,026,128 Options
Slide 26: Illustrative pro forma financial impacts
Illustrative pro forma financial impacts For personal use only The table below provides an overview of the pro forma financial impact on ASX's underlying NPAT had the Entitlement Offer taken place at 1 July 2012 The information is illustrative only and is based on a number of assumptions and est
Slide 27: Pro forma impact on ASX balance sheet
Pro forma impact on ASX balance sheet $ millions 31 Dec 2012 Significant Impact of the Pro forma For personal use only Movements Post Entitlement Offer2 31 Dec 2012 31 Dec 20121 Assets Cash and funds on deposit 3,097.3 (55.0) 289.3 3,331.6 Other current assets 1,480.8 – – 1,480.8 Total current asset
Slide 28: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial update Summary Summaryofofkey key risks risks Q&A Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv.
Slide 29: Summary of key risks
Summary of key risks The Entitlement Offer and the New Shares will be subject to a number of risks For personal use only including: Risks associated with the operation of clearing facilities, such as: clearing default, credit and liquidity risk investment of cash collateral held regulatory
Slide 30: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial update Summary of key risks Q&A Q&A Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv. Contacts NOT
Slide 31: Appendices
For personal use only Presentation Appendices Title ABN 98 008 624 691 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 32: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial update Summary of key risks Q&A Appendices Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv. Conta
Slide 33: Key risks
Key risks For personal use only Clearing default risk Our clearing house subsidiaries, ASX Clear Pty Limited and ASX Clear (Futures) Pty Limited act as the central counterparty for transactions entered into by their clearing participants. These entities have credit exposure to those clearing par
Slide 34: Key risks
Key risks For personal use only Regulatory risks to the market operator and clearing houses Regulation affecting our business We operate in a highly regulated environment and are subject to extensive regulation. As the operator of licensed markets and clearing and settlement facilities, we are r
Slide 35: Key risks
Key risks For personal use only Regulatory risks to the market operator and clearing houses Regulation of market participants We rely on members of our trading community to maintain markets and add liquidity, and in general, our business depends in part on the roles and activities conducted by m
Slide 36: Key risks
Key risks Impact of economic environment on market activity For personal use only Our business, financial condition and operating results are highly dependent on the levels of market activity on our exchanges and in particular upon the volume of financial instruments traded, the number of listed
Slide 37: Key risks
Key risks Operational and technology risk in provision of services For personal use only Our business depends on the performance, integrity and reliability of complex computer and communications systems. Heavy use of our platforms and systems during peak trading times or at times of unusual mark
Slide 38: Key risks
Key risks For personal use only Competition We face competition domestically and internationally for listings and trading of cash equities, exchange-traded funds, structured products, futures, options and other derivatives and clearing services. We expect competition in our industry to intensify
Slide 39: Key risks
Key risks For personal use only Risk that our clearing houses may not comply with international regulatory regimes or may require further capital in order to comply The international regulatory requirements continue to change. It is possible that regulators change some of the standards that dict
Slide 40: Key risks
Key risks For personal use only Risks associated with investment in equity capital There are general risks associated with investments in equity capital. The trading price of our shares may fluctuate with movements in equity capital markets in Australia and internationally. This may result in th
Slide 41: Key risks
Key risks For personal use only Risks associated with renouncing entitlements under the Entitlement Offer Prices obtainable for retail entitlements may rise and fall over the entitlement trading period. If you sell your retail entitlements at one stage in the retail entitlement trading period, y
Slide 42: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial update Summary of key risks Q&A Appendices Appendices i. Key risks ii. International International selling selling restrictions restrictions iii. Restrictions on eligibility to exerci
Slide 43: International selling restrictions
International selling restrictions For personal use only This document does not constitute an offer of entitlements (Entitlements) or New Shares of the Company in any jurisdiction in which it would be unlawful. Entitlements and New Shares may not be offered or sold in any country outside Australia e
Slide 44: International selling restrictions
International selling restrictions For personal use only The following is a summary of the statutory rights of rescission or to damages, or both, available to purchasers in Ontario. In Ontario, every purchaser of the Entitlements or the New Shares purchased pursuant to this document (other than (a)
Slide 45: International selling restrictions
International selling restrictions For personal use only European Economic Area – Belgium, Denmark, Germany, Luxembourg and Netherlands The information in this document has been prepared on the basis that all offers of Entitlements and New Shares will be made pursuant to an exemption under the Direc
Slide 46: International selling restrictions
International selling restrictions For personal use only Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies Ordinance (Cap. 32) of Hong Kong (the Companies Ordinance), nor has it been authorised by the Securities and Futures Commission in H
Slide 47: International selling restrictions
International selling restrictions For personal use only Korea The Company is not making any representation with respect to the eligibility of any recipients of this document to acquire the Entitlements or the New Shares under the laws of Korea, including, without limitation, the Foreign Exchange Tr
Slide 48: International selling restrictions
International selling restrictions For personal use only Singapore This document and any other materials relating to the Entitlements and the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this docum
Slide 49: International selling restrictions
International selling restrictions For personal use only United Arab Emirates Neither this document nor the Entitlements and the New Shares have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates, the Emirates Securities and Commodities Authority or an
Slide 50: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial update Summary of key risks Q&A Appendices Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise entitlements and trade entitleme
Slide 51: Restrictions on eligibility to exercise or trade entitlements
Restrictions on eligibility to exercise or trade entitlements For personal use only The entitlements may only be exercised by eligible shareholders, persons with addresses in Australia or New Zealand and certain categories of investors in Canada, France, Germany, Hong Kong, China, Ireland, Japan,
Slide 52: Agenda
Agenda For personal use only Executive summary Entitlement offer Use of proceeds and rationale Financial update Summary of key risks Q&A Appendices Appendices i. Key risks ii. International selling restrictions iii. Restrictions on eligibility to exercise and trade entitlements iv. Conta
Slide 53: Contacts
Contacts For personal use only For further inquiries, please contact: Media: Analysts: Mr Matthew Gibbs Mr Ramy Aziz General Manager, Media and Communications Chief Financial Officer +61 9227 0218 +61 9227 0027 +61 411 121 219 matthew.gibbs@asx.com.au ramy.aziz@asx.com.au Shareholders: ASX Offer Inf