Slide 1: ASX Limited Half-Year 2012 Results Presentation
For personal use only Presentation ASX Title2012 Results Presentation Limited – Half-Year 16 February 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 February 2012). It is provided in summary and does not purport to be complete. You should not rely upon i
Slide 3: Financial Results 1H12
Financial Results 1H12 Sound result in challenging market conditions For personal use only Statutory profit after tax $175.6 million, up 2.1% Underlying profit after tax (excluding significant items) $180.7 million, up 2.9% Operating revenue up 2.8% Interest and dividend income up 13.7% Ca
Slide 4: Income Statement
Income Statement 1H12 For personal use only 1H12 1H11 Variance Variance $ Million $ Million $ Million % Operating Revenue 315.1 306.4 8.7 2.8% Cash Operating Expenses 70.4 68.1 (2.3) (3.4%) EBITDA 244.7 238.3 6.4 2.6% Depreciation and Amortisation 12.9 11.3 (1.6) (14.2%) EBIT 231.8 227.0 4.8 2.1% In
Slide 5: Market Environment
Market Environment For personal use only GFC I GFC II AORD North Atlantic banking and Sovereign debt crisis liquidity crisis Long-term structural adjustment Emergency support and short- required term stimulus Market activity significantly reduced Corporate deleveraging with following spi
Slide 6: Revenue Growth 1H12
Revenue Growth 1H12 Revenue Movement 1H12 ($ Million) For personal use only 0.9 (0.4) 315.1 3.7 14.2 (0.6) 306.4 (9.2) 0.1 1H11 Listings and Cash Market Derivatives Information Technical Austraclear Other 1H12 Issuer Services Services Services Services % Change (11.8%) 0.2% 17.2% (1.5%) 19.5% 5.0% (
Slide 7: Revenue Driven by Strong First Quarter
Revenue Driven by Strong First Quarter For personal use only 1H12 1H12 vs 1H11 1Q FY12 vs 1Q FY11 2Q FY12 vs 2Q FY11 $ Million Revenue % Variance % Variance % Variance Listings and Issuer Services 68.6 (11.8%) (5.5%) (16.8%) Cash Market 66.9 0.2% 12.7% (12.1%) Trading 19.6 0.4% 10.7% (10.2%) Clearin
Slide 8: Diversified Revenue Profile
Diversified Revenue Profile For personal use only Revenue Mix 1H11 Revenue Mix 1H12 Austraclear Other Austraclear Other Listings and Services 3% Listings and Services 2% Technical 6% Issuer Technical 6% Issuer Services Services Services Services 6% 25% 7% 22% Information Information Services Service
Slide 9: Listings and Issuer Services 1H12
Listings and Issuer Services 1H12 personal use only 100 Listings and Issuer Services Revenue Highlights 80 77.8 68.6 Listings revenue $51.6 million, down 15.0% $ Million 60 40 ‒ Annual Listing revenue $30.2 million, up 5.8% 20 ‒ Initial Listing revenue $3.7 million, down 0 54.8% 1H11 1H12 Annual I
Slide 10: Cash Market
Cash Market 1H12 For personal use only 100 Cash Market Revenue Highlights 80 66.8 66.9 Revenues flat resulting from strong first $ Million 60 quarter and weak second quarter 40 Traded value $643.9 billion, down 4.7% 20 ‒ 1st quarter $368.1 billion, up 7.3% 0 ‒ 2nd quarter $275.8 billion, down 17
Slide 11: Competition in Cash Market Trading
Competition in Cash Market Trading For personal use only Trading competition launched in October 2011 Reduced ASX reliance on trading revenues Trading revenue 6.2% of Group revenues in 1H12 Growth in new order types Investment in Technical Services ASX cash trading development New orde
Slide 12: Technical and Information Services
Technical and Information Services 1H12 For personal use only Technical Services Revenue ($ Million) Highlights 22.6 18.9 Technical Services revenue up 19.5% ‒ Technical Services revenue exceeded Cash Market Trading revenue in 1H12 ‒ Driven by co-location, ASX Net and other data centre services 1H
Slide 13: Derivatives
Derivatives 1H12 For personal use only Derivatives Revenue ($ Million) Highlights 96.6 Total Derivatives revenue growth 17.2% 82.4 ASX 24 Derivatives (Futures and Options on 81.8 Futures) revenue $81.8 million, up 21.5% 67.3 ‒ Volume up 14.6%, driven by strong 1st quarter (up 31.2%) and subdued
Slide 14: Austraclear 1H12
Austraclear 1H12 Austraclear Revenue ($ Million) For personal use only Highlights $20 17.8 16.9 $16 Total Austraclear revenue growth 5.0% $ Million $12 Transactions revenue $8.0 million, up 7.3% $8 ‒ Transactions volume up 5.6% $4 $0 Holdings revenue $2.7 million, up 1.2% 1H11 1H12 ‒ Average H
Slide 15: Interest and Dividend Income
Interest and Dividend Income 1H12 For personal use only 1H12 1H11 Variance Variance Highlights $ Million $ Million $ Million % Significant increase in net interest income, up Own Interest Income 11.6 10.2 1.4 14.2% 16.1% Net Interest Average own cash balance during 1H12 of Earned on Collateral $
Slide 16: Business Initiatives Update
Business Initiatives Update For personal use only Business Area $ % PCP Current Focus Million Variance Listings and 68.6 (11.8%) Listings Issuer Services ‒ Changes to listing/trading environment for small to mid caps ‒ Enhanced reporting for mining (JORC), oil and gas ‒ Targeted offshore customer
Slide 17: Business Initiatives Update
Business Initiatives Update For personal use only Business Area $ % PCP Current Focus Million Variance Cash Market 47.3 0.1% Service delivery Clearing and ‒ Trade Acceptance Service launched Settlement ‒ Fee unbundling on track to complete internal readiness by 2H12 Clearing 25.1 0.2% Margining
Slide 18: Expenses
Expenses 1H12 For personal use only Highlights 1H12 1H11 Variance Variance $ Million $ Million $ Million % Good expense discipline in period of significant investment Staff 41.7 39.4 (2.3) (5.7%) Cost increases Occupancy 7.8 6.7 (1.1) (16.8%) ‒ Staff: fixed remuneration and long-term Equipment 1
Slide 19: Capital Expenditure
Capital Expenditure 1H12 For personal use only 40 Capital Expenditure ($ Million) 30 20 10 0 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 Refresh Upgrades and Initiatives Data Centre Highlights Capital expenditure in 1H12 of $22.6 million, $10.2 million relates to the new data centre Capital exp
Slide 20: Capital and Liquidity Position
Capital and Liquidity Position For personal use only ASX Group Equity ASX Group Cash Net Tangible Equity versus ASX Own Cash versus Risk-Based Capital Attribution Cash-Backed Requirements 800.0 900.0 800.0 700.0 700.0 600.0 600.0 500.0 $ Million 500.0 $ Million 400.0 400.0 300.0 300.0 200.0 200.0 10
Slide 21: Post Balance Date Activity and Outlook
Post Balance Date Activity and Outlook For personal use only European debt crisis remains unresolved Gradual stabilisation of monetary union – uncertainty remains Eurozone recession likely in 2012 US economy showing some early signs of improvement Australia in relatively good position desp
Slide 22: 1H12 Summary
1H12 Summary For personal use only Sound result in challenging environment Underlying profit after tax $180.7 million, up 2.9% Strong revenue growth in Q1 followed by decline in Q2 Expenses well controlled during investment phase Interim dividend 92.8 cps, up 2.9% Capital expenditure and i
Slide 23: ASX Limited Half-Year 2012 Results Presentation
For personal use only Presentation ASX Title2012 Results Presentation Limited – Half-Year 16 February 2012 23
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 ASX Derivatives 4.4 ASX 24 Derivatives 4.5 Austraclear 4.6 Technical and Information Services 4.7 CCP Participants Col
Slide 25: 1. Income Statement
1. Income Statement 1H10 2H10 1H11 2H11 1H12 For personal use only $ Million $ Million $ Million $ Million $ Million REVENUE Listings and Issuer Services 83.0 63.1 77.8 72.5 68.6 Cash Market 76.6 74.2 66.8 67.1 66.9 Derivatives 71.9 75.9 82.4 89.8 96.6 Information Services 35.3 33.4 35.2 35.7 34.6 T
Slide 26: 1. Income Statement (continued)
1. Income Statement (continued) 1H10 2H10 1H11 2H11 1H12 For personal use only $ Million $ Million $ Million $ Million $ Million Depreciation and Amortisation 9.2 9.7 11.3 12.0 12.9 EBIT 225.4 209.7 227.0 231.7 231.8 Net Interest Income 5.9 6.9 10.2 10.6 11.6 Net Interest on Participants Balances 8.
Slide 27: 2. Balance Sheet
2. Balance Sheet For personal use only 31 Dec 09 30 Jun 10 31 Dec 10 30 Jun 11 31 Dec 11 $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 3,365.0 3,716.8 3,365.2 3,318.6 3,841.0 Goodwill 2,262.8 2,262.8 2,262.8 2,262.8 2,262.8 Other Assets 506.6 6
Slide 28: 3. Key Financial Ratios
3. Key Financial Ratios 1H10 2H10 1H11 2H11 1H12 For personal use only Basic EPS 97.8c 92.6c 98.6c 103.0c 100.2c Diluted EPS 97.8c 92.6c 98.6c 103.0c 100.2c Underlying EPS (excluding significant items) 99.3c 93.7c 100.7c 103.4c 103.2c Dividends per share - interim 89.1c - 90.2c - 92.8c Dividends per
Slide 29: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services 1H10 2H10 1H11 2H11 1H12 For personal use only Total domestic market capitalisation ($ Billion) $1,403 $1,254 $1,419 $1,349 $1,169 Total number of listed entities (includes all stapled entities) 2,181 2,192 2,216 2,247 2,222 Number of new listings 50 43 84 75 57 Aver
Slide 30: 4.2 Cash Market
4.2 Cash Market 1H10 2H10 1H11 2H11 1H12 For personal use only Trading days 130 123 130 123 129 Total cash market trades ('000) 66,072 66,178 70,180 74,141 87,025 Average daily cash market trades 508,249 538,026 539,850 602,772 674,609 Total cash market value traded (including crossings) ($ Billion)
Slide 31: 4.3 ASX Derivatives
4.3 ASX Derivatives 1H10 2H10 1H11 2H11 1H12 For personal use only Trading days (ASX) 130 123 130 123 129 Total contracts ('000) 10,207 11,447 10,736 36,512 86,618 Average daily derivatives contracts 78,517 93,066 82,588 296,841 671,455 Average fee per derivatives contract $1.48 $1.44 $1.41 $0.35 $0
Slide 32: 4.4 ASX Derivatives
4.4 ASX 24 Derivatives 1H10 2H10 1H11 2H11 1H12 For personal use only Trading days (ASX 24) 130 126 130 126 129 Total contracts - futures ('000) ASX SPI 200 4,732 5,006 5,055 5,451 6,680 90 day bank bills 7,534 9,004 8,906 11,823 10,568 3 year bonds 13,376 16,820 17,665 21,167 20,497 10 year bonds 5
Slide 33: 4.4 ASX Derivatives (continued)
4.4 ASX 24 Derivatives (continued) 1H10 2H10 1H11 2H11 1H12 For personal use only Total contracts - options on futures ('000) ASX SPI 200 153 199 183 196 227 90 day bank bills 19 18 23 29 25 3 year bonds 328 77 128 434 76 Overnight 3 year bonds 628 747 994 1,045 388 Intra-day 3 year bonds 301 378 67
Slide 34: 4.5 Austraclear
4.5 Austraclear 1H10 2H10 1H11 2H11 1H12 For personal use only Settlement Days 130 123 130 123 129 Transactions ('000) Cash transfers 307 306 315 299 321 Fixed interest securities 221 254 306 332 358 Discount securities 144 146 126 111 115 Foreign exchange 15 15 16 15 11 Interest rate swaps 1 1 <1 <
Slide 35: 4.6 Technical and Information Services
4.6 Technical and Information Services 1H10 2H10 1H11 2H11 1H12 For personal use only Technical Services No. of ASX workstations – period end 771 760 727 743 683 No. of ASX interfaces – period end 1,455 1,641 1,727 1,737 1,786 No. of ASX 24 interfaces – period end 364 405 409 431 491 Information Ser
Slide 36: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances 1H10 2H10 1H11 2H11 1H12 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Clear – Initial margins - period end $294.9 $353.6 $251.4 $290.6 $258.7 ASX Clear (Futures) – Initial margins House – period end $506.2 $615.0 $629.0 $495.3 $7
Slide 37: 5. Free Cash Flow Summary
5. Free Cash Flow Summary ASX Group Cash 1H10 2H10 1H11 2H11 1H12 For personal use only $ Million $ Million $ Million $ Million $ Million Total cash and short-term investments 3,365.0 3,716.8 3,365.2 3,318.6 3,841.0 Less participants’ margins and commitments (2,691.0) (2,990.2) (2,557.3) (2,516.4) (
Slide 38: 6. Risk-Based Capital
6. Risk-Based Capital ASX Group Equity 1H10 2H10 1H11 2H11 1H12 For personal use only $ Million $ Million $ Million $ Million $ Million Shareholders Equity 2,866.8 2,921.3 2,993.0 3,021.1 2,999.9 Less Goodwill (2,262.8) (2,262.8) (2,262.8) (2,262.8) (2,262.8) Net Tangible Equity 604.0 658.5 730.2 75
Slide 39: ASX Limited Half-Year 2012 Results Presentation
For personal use only Presentation ASX Title2012 Results Presentation Limited – Half-Year 16 February 2012 39