Slide 1: ASX Limited 2009 Full-Year Results
For personal use only ASX Limited 2009 Full-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO 20 August 2009 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 (20 August 2009). 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 For personal use only The financial statistics, including comparables, in this report are based on ASX’s pro-forma income statement which itself is not audited, but is based upon externally audited accounts. There have been no material changes to accounting policies during the year.
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Financial and Operational Highlights Alan Bardwell • Outlook and Post Balance Date Activity Robert Elstone • Questions
Slide 5: Introduction
For personal use only Introduction Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights FY09
Financial Highlights FY09 For personal use only • Operating revenue excluding interest and dividends of $538.4 million, down 12.4% • Cash operating expenses of $138.3 million, up 1.2% • Normal profit after tax of $313.6 million, down 14.3% • Normal earnings per share (EPS) of 183.2 cents per share (
Slide 7: Business Highlights FY09
Business Highlights FY09 For personal use only • A comprehensive Annual Report has been released today, including statutory reports. This presentation provides a high level overview of the result • Sound financial, operational and supervisory performance by the ASX group having regard to the externa
Slide 8: Business Highlights FY09: Capital Raisings by Listed Australian Companies
Business Highlights FY09 For personal use only Capital Raisings by Listed Australian Companies Volume (A$m) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2008 2009 Equity Bank Debt Bonds Source: UBS Excludes bank capital raisings;
Slide 9: Business Highlights FY09
Business Highlights FY09 For personal use only • CGS on issue increased from $61 billion to $101 billion. AOFM forecasts this to increase to $150 billion by June 2010 • Fixed income (Austraclear) depository holdings grew by $80 billion to $1.06 trillion by end June 2009 • Significant capacity upgrad
Slide 10: A Medium-Term View 2006-09
A Medium-Term View 2006-09 For personal use only FY09 FY06 Variance Variance $ million $ million $ million % Operating Revenue 538.4 450.4 88.0 19.5% Cash Operating Expenses 138.3 168.8 30.5 18.1% EBITDA 400.1 281.6 118.5 42.1% Depreciation and Amortisation 15.0 14.5 (0.5) (3.4%) EBIT 385.1 267.1 11
Slide 11: A Medium-Term View 2006-09
A Medium-Term View 2006-09 For personal use only Building a longer term, sustainable franchise across the breadth of the group • Supervision: Markets Supervision headcount resources have expanded 38% (80 to 110 staff and rising) • Risk: Enhanced clearing guarantee fund (financial) resources, risk ma
Slide 12: Financial and Operational Highlights
For personal use only Financial and Operational Highlights Alan Bardwell Chief Financial Officer
Slide 13: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only FY09 FY08 Variance Variance $ million $ million $ million % Operating Revenue 538.4 614.7 (76.3) (12.4%) Cash Operating Expenses 138.3 136.7 (1.6) (1.2%) EBITDA 400.1 478.0 (77.9) (16.3%) Depreciation and Amortisation 15.0 15.9 0.9 5.7%
Slide 14: Revenue Highlights FY09
Revenue Highlights FY09 For personal use only FY09 $104.1m $163.0m $133.8m $71.0m $28.6m $24.7m $13.2m Revenue Change 13% 14% 20% 4% 4% 13% 38% From FY08 (pcp) $614.7 ($16.1) ($25.8) ($33.1) $3.0 $1.0 $2.8 ($8.1) $538.4 $620 $610 $600 $590 $580 $570 $560 $550 $540 $530 $520 $510 $500 $490 $480 $470
Slide 15: Market Activity - Listings
Market Activity - Listings For personal use only $ Billion $ Trillion 50 1.8 45 1.6 40 1.4 35 1.2 30 1.0 25 0.8 20 0.6 15 10 0.4 5 0.2 0 0.0 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Secondary Capital (LHS) IPO Capital (LHS) Dom Mkt Cap (RHS) • 45 new listings in FY09 (236 pcp) • 2,198 liste
Slide 16: Cash Market Revenue Composition
Cash Market Revenue Composition For personal use only LPR (0.4%) % FY09 FY08 Change Trading $52.7m $75.1m (30%) Clearing $43.7m $61.8m (29%) Trading Settlement 32.3% Settlement $67.2m $80.1m (16%) 41.3% Gross Cash Market $163.6m $217.0m (25%) Net Cash Clearing Market $163.0m $188.8m (14%) 26.8%
Slide 17: Market Activity – Cash Market
Market Activity – Cash Market For personal use only ASX Cash Market – Volume ASX Cash Market – Value $ Billion Trades $ Fee per BPS Traded Million Trade 900 1.6 60 6.00 800 1.4 50 5.00 700 1.2 40 4.00 600 1.0 500 30 3.00 0.8 400 0.6 20 2.00 300 0.4 200 10 1.00 100 0.2 0 0.00 0 0.0 1H05 2H05 1H06 2H0
Slide 18: Market Activity – Derivatives
Market Activity – Derivatives For personal use only Derivatives Contracts Volume and Average Fee $ Fee (Million) 70.0 2.00 ASX Derivatives Volume (m) (LHS) SFE Derivatives Volume (m) (LHS) • Equity derivatives (excluding ASX SFE Derivatives Avg Fee (RHS) ASX Derivatives Avg Fee (RHS) 1.90 SPI 200) v
Slide 19: Financial Performance – Expenses
Financial Performance – Expenses For personal use only FY09 FY08 Variance Variance Expenses $ million $ million $ million % Staff 81.7 77.9 (3.8) (4.9%) Occupancy 12.8 12.7 (0.1) (0.6%) Equipment 22.7 23.3 0.6 2.6% Administration 16.0 17.3 1.3 7.0% Variable 5.0 5.5 0.5 9.6% Cash Operating Expenses 1
Slide 20: Cash Operating Expense Highlights
Cash Operating Expense Highlights For personal use only $ Million 100 2 years' flat cash operating expenses 90 80 $68.2 m $68.2 m 70 60 50 40 30 20 10 0 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 Based on ASX’s pro-forma income statement.
Slide 21: Interest and Dividend Income FY09
Interest and Dividend Income FY09 For personal use only Monthly Average Cash Margins Basis Points $ Billion $7.5 90 FY09 FY08 $7.0 Average SFECC Initial Margins (LHS) 80 $6.5 $6.0 Average SFECC Excess Margins (LHS) Interest Income $19.7m $27.7m Average SFECC Additional Initial Margins (LHS) 70 $5.5
Slide 22: Capital Structure and Management
Capital Structure and Management For personal use only • Dividend policy – 90% of Normal NPAT, fully franked • Full-year dividends – 164.9 cps • Market conditions not conducive to ASXCC debt issue • DRP introduced to provide flexible capital management, particularly in relation to CCP’s Capital Retu
Slide 23: Outlook and Post Balance Date Activity
For personal use only Outlook and Post Balance Date Activity Robert Elstone Managing Director and CEO
Slide 24: Post Balance Date – Activity Levels
Post Balance Date – Activity Levels For personal use only • Activity levels for 1 July 2009 to 19 August 2009 • Cash markets average daily traded value $4.8 billion (up 21% on 2H09) • SFE derivatives average daily volume 239,734 (up 23% on non-roll months in 2H09) Cash markets average daily traded v
Slide 25: Outlook – Business Initiatives
Outlook – Business Initiatives For personal use only • New product launches and development • Energy product expansion (Coal, Gas, NZ Electricity and RECs) • Carbon as soon as ETS legislation is finalised • Equity market microstructure enhancements (regulatory process) • Exchange-traded bonds develo
Slide 26: Questions
For personal use only Questions
Slide 27: ASX Limited 2009 Full-Year Results
For personal use only ASX Limited 2009 Full-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO 20 August 2009 Sydney, Australia