Iress Limited · ASX:IRE
Iress — Macquarie Australia Conference 2010
29 slides from Iress's conference presentation, May 7, 2010
Slide 1: Macquarie Australia Conference
May 2010 For personal use only Macquarie Australia Conference May 2010
Slide 2: IRESS 2009 Results
May 2010 IRESS 2009 Results For personal use only • Adjusted Group profit $53.6 million (2008: $48.5m, up 10.5%) • Resilient performance through the financial crisis, with Revenue up 3.4% and EBITDA up 8% on 2008. • Common strategy across all businesses of long term client retention shows its value
Slide 3: Segment Performance Against Prior Half
May 2010 Segment Performance Against Prior Half For personal use only Financial Markets Wealth Management Aust & NZ Aust & NZ • Op Rev down .1% (down 0.6% on PY) • Op Rev down 0.8% (up 5.0% on PY) • EBITDA up 1.0% (up 2.7% on PY) • EBITDA up 1.6% (up 10.9% on PY) • PAT up 2.8% (up 5.0% on PY) • PAT
Slide 4: Group Performance Against Prior Year
May 2010 Group Performance Against Prior Year For personal use only • Adjusted Group Profit $53.631 m Up $5.091 million, 10.5% on prior year • Segment Contribution against prior year $A % • Financial markets Aust/NZ 1.814 35 • Financial markets Canada 1.725 34 • Wealth Management Aust/NZ 1.252 25 •
Slide 5: EBITDA Margins
May 2010 EBITDA Margins For personal use only •Margin improvement in 2009 largely due to reductions in discretionary staff compensation. •In our mature businesses we anticipate margins reverting over time to historical levels as revenue growth returns. 5
Slide 6: Review of Group Recurring Subscription Revenue
May 2010 Review of Group Recurring Subscription Revenue For personal use only 6
Slide 7: Review of Group EBITDA
May 2010 Review of Group EBITDA* For personal use only 7
Slide 8: Relative Impact H2'09
May 2010 Relative Impact H2’09 For personal use only 8
Slide 9: Operating Cashflow per share
May 2010 Operating Cashflow per share* For personal use only Cash generation from the business continues to be very strong * Calculated as Net Cash from Operations ÷ No shares on issue at end of year 9
Slide 10: IRESS Group Outlook
May 2010 IRESS Group Outlook For personal use only • Growth in 2009 moderated by impacts of crisis • Weakened late 2008 and stabilised over 2009 • All divisions impacted, most marked in Financial Markets A&NZ • Canada and Wealth Management successfully offset cancellations • Sensible cost control to
Slide 11: Daily Trades on the ASX
May 2010 Daily Trades on the ASX For personal use only 11
Slide 12: Financial Markets – 2010
May 2010 May 2010 Financial Markets – 2010 For personal use only • IOS+ progress: • Major institutional OMS enhancements nearing completion • ASIC short net position enhancements now available for ASIC go-live • New opportunities emerging for BMR with crossing engine and internalisation • IOS+ retai
Slide 13: Financial Markets – Multi-market readiness
May 2010 May 2010 For personal use only Financial Markets – Multi-market readiness • Regulatory transitions advancing, and on-track for July. Chi-X confident of 2010 Q4 go-live. • Range of IRESS products in production and already multi-market proven. Leverages Canadian experience (>3 yrs, >60% of pa
Slide 14: Financial Markets – Multi-market readiness
May 2010 May 2010 For personal use only Financial Markets – Multi-market readiness • ASX enhancements • Centrepoint Match go-live June 28 • Automated checking on Centrepoint through IRESS BMR will be available • Undisclosed, Iceberg orders and Volume Match reporting also supported from go-live • Net
Slide 15: Australia Financial Markets - Outlook
May 2010 May 2010 For personal use only Australia Financial Markets - Outlook • 2010 outlook: • Growth has continued during H1, though still below pre-crisis levels. • IRESS gross cancellations remain at pre-crisis levels. • Lower but returning revenue growth, expect positive EBITDA growth in H1 • C
Slide 16: Australia Financial Markets – Monthly Subscription Revenue
May 2010 Australia Financial Markets – Monthly Subscription For personal use only Revenue 16
Slide 17: Change in Australia Financial Markets Revenue
May 2010 Change in Australia Financial Markets Revenue For personal use only 17
Slide 18: Daily trades in Canada
May 2010 Daily trades in Canada* For personal use only Alpha commenced H2'08 Chi-X commenced H1'08 TriAct & Omega commenced H2'07 Pure Market commenced H1'07 *Common Base calculation has zero impact for initial start phase of new markets 18
Slide 19: Comparative Message Rates (per trade per destination)
May 2010 May 2010 For personal use only Comparative Message Rates (per trade per destination) 350 300 528 250 200 150 100 50 102 46 41 6 - TSX ALPHA CHI-X PURE ASX CANADA AUS Measured over 8 weeks to 30 April 2010. 19 19
Slide 20: Average Daily Trades
May 2010 May 2010 For personal use only Average Daily Trades 1.4 1.2 0.06 1.0 0.30 0.8 0.14 Millions 0.6 0.4 0.70 0.50 0.2 0.0 CAN AUS TSX CHI-X ALPHA PURE ASX Measured over 8 weeks to 30 April 2010. 20 20
Slide 21: Canada – 2010
May 2010 May 2010 For personal use only Canada – 2010 • 41 of the top 50 brokers have at least one IOS+ in use,. • All Canadian broker clients use IRESS BMR • Institutional order management projects nearing final stages for 2010 delivery with growing demand for IOS+ smarts incl automated crossings.
Slide 22: Canada - Outlook
May 2010 May 2010 For personal use only Canada - Outlook • H1 2010 outlook: • Run rate started ahead of H2 2009 average • Revenue increases have continued • Costs at levels appropriate for product initiatives currently underway. • EBITDA growth anticipated to continue • Conditions improving with tra
Slide 23: Canada – Monthly Subscription Revenue
May 2010 Canada – Monthly Subscription Revenue* For personal use only Pre-IRESS full production level offering *Assumes 100% ownership 23
Slide 24: Financial Markets – Asia
May 2010 May 2010 For personal use only Financial Markets – Asia • Decision to organically invest in expanding Asian capability and seek seed client opportunities which will guide funding. • Good progress has been made so far: • Expanded international market data range now available for 25 markets i
Slide 25: Wealth Management - 2010
May 2010 May 2010 For personal use only Wealth Management - 2010 • Regulatory dynamics driving demand for efficiencies via technology • intra-fund advice – reduced ‘cost to deliver’ • richer and broader datafeeds • integrated revenue management solutions • AFSL and ACL opportunities • eApplications:
Slide 26: Wealth Management Outlook
May 2010 May 2010 For personal use only Wealth Management Outlook • Australia & New Zealand • Growth has continued during H1. • Efficiency and cost remain key drivers for activity, against uncertainty from regulatory changes and consolidation • Expect revenue growth to produce positive EBITDA growth
Slide 27: Wealth Management – Aust & NZ Mthly Subscription Rev
May 2010 Wealth Management – Aust & NZ Mthly Subscription Rev For personal use only 27
Slide 28: Wealth Management – Asia
May 2010 May 2010 For personal use only Wealth Management – Asia • SENTRYi acquisition in January 2010 provides presence and base on which to build wealth management in Asia. • Immediate opportunities to add sales and account management staff to progress growth via SENTRYi point of sales software to
Slide 29: Market Technology
MARKET TECHNOLOGY TT (ous i] | _ ) & | : | ml By | : 29