Slide 1: Half-Year 2015 Results Presentation
Half-Year 2015 Results Presentation ASX Limited For personal use only Elmer Funke Kupper, Managing Director and CEO 12 February 2015
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 (12 February 2015). It is provided in summary and does not purport to be complete. You should not rely upon i
Slide 3: Financial Results 1H15
Financial Results 1H15 For personal use only Revenues Expenses EBITDA Net profit EPS DPS $348.7m $81.4m $267.3m $198.6m 102.7c 92.3c 5.9% (5.4%) 6.0% 4.7% 4.5% 4.6% • Profit after tax $198.6m, up 4.7% ‒ EBITDA up 6.0% driven by revenue growth • Revenues $348.7m, up 5.9% ‒ Growth in all major revenue
Slide 4: Income Statement
Income Statement For personal use only 1H15 1H14 % Variance $ Million $ Million Operating Revenues 348.7 329.3 5.9% Operating Expenses 81.4 77.2 (5.4%) EBITDA 267.3 252.1 6.0% Depreciation and Amortisation 18.6 16.3 (14.0%) EBIT 248.7 235.8 5.5% Interest and Dividend 34.4 34.2 0.3% Profit Before Tax
Slide 5: Revenue Performance
Revenue Performance For personal use only 1H15 1H14 % Variance % Variance $ Million $ Million to PCP to 2H14 Listings and Issuer Services 87.9 81.5 7.9% 19.7% Cash Market 61.9 59.2 4.6% 6.5% Derivatives and OTC Markets 103.2 99.8 3.3% (4.3%) Information Services 36.7 33.9 8.2% 5.0% Technical Service
Slide 6: Revenue Movement ($M)
Revenue Movement ($M) For personal use only 1.8 348.7 2.6 2.8 (0.3) 3.4 2.7 6.4 329.3 Up Up Up Up Up Up Down 7.9% 4.6% 3.3% 8.2% 9.9% 9.0% 3.1% Operating Revenues Up 5.9% 1H14 Listings Cash Market Derivatives Information Technical Austraclear Other Revenue 1H15 and Issuer and OTC Services Services S
Slide 7: Listings and Issuer Services
Listings and Issuer Services Highlights Areas of Focus For personal use only Revenue $87.9 million, up 7.9% Listings and Issuer Services • Higher annual listing fees and issuer services revenue • Growth in ETFs – 104 ETFs listed totalling $15 billion • 71 IPOs (69 pcp), IPO capital $19.0 billion, up
Slide 8: Cash Market
Cash Market Highlights Areas of Focus For personal use only Revenue $61.9 million, up 4.6% Trading • Trading $17.4 million, up 5.1%, Clearing $23.0 million, up • Increased use of ASX auctions, 20.1% of ASX on-market 6.2% and Settlement $21.5 million, up 2.5% value (18.2% pcp), 28.9% of trading reven
Slide 9: Derivatives and OTC Markets
Derivatives and OTC Markets Highlights Areas of Focus For personal use only Revenue $103.2 million, up 3.3% Product Development • ASX 24 derivatives $90.4 million, up 0.6% • ETOs – continued focus on education and marketing ‒ Contracts traded up 2.5% • Energy – launch of gas futures CY15 ‒ Higher re
Slide 10: ASX Revenue and OTC Clearing Growth
ASX 24 Revenue and OTC Clearing Growth For personal use only Futures Revenue Movement ($ Million) OTC Notional Value Cleared ($ Billion) 71 5.3 (4.6) (4.0) 3.9 90.4 89.8 43 20 16 15 5 1H14 Volume & Fee Cuts Prop Removal 1H15 2 Product Trader Other Mix Rebates Rebates Jul-14 Aug-14 Sep-14 Oct-14 Nov-
Slide 11: Information and Technical Services
Information and Technical Services Highlights Areas of Focus For personal use only Information Services $36.7 million, up 8.2% Information Services • Pricing changes implemented 1 July 2014 • Alignment to changing user profiles Technical Services $28.8 million, up 9.9% Technical Services • Hosting:
Slide 12: Austraclear
Austraclear Highlights Areas of Focus For personal use only Revenue $22.3 million, up 9.0% Renminbi Settlement Service • Transaction volumes down 5.3% • Launched July 2014 • Average balances up 12.9% to $1.6 trillion • Provides real-time RMB settlement facility • Number of debt issuances up 9.5% • B
Slide 13: Interest and Dividend Income
Interest and Dividend Income For personal use only 1H15 1H14 % $ Million $ Million Variance Highlights ASX Group Net • Total net interest income down 4.7% 14.9 14.5 2.7% Interest Income • ASX Group net interest income up 2.7% from higher cash balances Net Interest Earned on Collateral 14.6 16.4 (11.
Slide 14: Expenses ($M)
Expenses ($M) For personal use only Highlights 81.4 • Total expenses up 5.4% 74.9 77.2 76.4 31.5 ‒ Staff costs up 5.6%. Average headcount 71.3 30.0 30.9 31.2 down 1.1% to 526 FTEs. Salary increases 28.1 and lower staff capitalisation ‒ Other costs up 5.1%. Higher variable expenses due to increased h
Slide 15: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 34.8 23.5 24.6 20.5 18.5 18.6 15.4 15.4 13.0 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 Normal ($95.3m) Data Centre ($36.0m) Post-Trade ($53.0m) Highlights • Average total capital expenditure since 2011: $41 million per annum • Guidance FY15 capital e
Slide 16: Investment in Technology and Innovation
Investment in Technology and Innovation For personal use only FY12-14: Technical Services FY15-18: IT platform investment Australian Liquidity Centre ASX Objectives • Improve time to market and reduce • State-of-the-art data centre; investment development costs $36 million • Support business expansi
Slide 17: Technology Transformation
Technology Transformation For personal use only ASX 24 Trading Cash Derivatives Market Trading platforms Trading Clearing/ Cash ASX Clearing & Derivatives settlement Phase I (Jan 15 – Dec 16) Clearing Settlement (CHESS)1 platforms Market Market integrity Risk Phase II Monitoring Management and risk
Slide 18: Capital Attribution
Capital Attribution For personal use only 31 Dec-14 Capital Supporting Drivers/Comments $ Million Clearing Financial Stability Standards – Cover 2 ASX Clear 250 • Previously Cover 1 • Driven by positions of two largest participants Capital (cash-backed) held in clearing subsidiaries, ASX Clear and A
Slide 19: Post Balance Date Activity
Post Balance Date Activity Trading for five weeks to 6 February For personal use only • Total cash market average value (all lit and dark venues) per day $4.9 billion, up 21.2% ‒ ASX on-market average value per day $3.7 billion, up 24.7% • ASX 24 derivatives daily average volume 473,254 contracts, u
Slide 20: Financial Results 1H15
Financial Results 1H15 For personal use only Revenues Expenses EBITDA Net profit EPS DPS $348.7m $81.4m $267.3m $198.6m 102.7c 92.3c 5.9% (5.4%) 6.0% 4.7% 4.5% 4.6% • Profit after tax $198.6m, up 4.7% ‒ EBITDA up 6.0% driven by revenue growth • Revenues $348.7m, up 5.9% ‒ Growth in all major revenue
Slide 21: For personal use only
For personal use Onlly Globally connected World class e Internationally competitive Customer driven www.asx.com.au Customer servi 131 ASX (131 279) | international +61 2 9338 0000
Slide 22: Appendices
For personal use only Appendices 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 5. Free Cash Flow Summary 6. Capital Attribution 7. Cash Market Clearing and Settlement Income Statements 22
Slide 23: 1. Income Statement
1. Income Statement 1H13 2H13 1H14 2H14 1H15 For personal use only $ Million $ Million $ Million $ Million $ Million Listings and Issuer Services 73.6 66.1 81.5 73.4 87.9 Listings 60.0 53.2 66.8 60.2 70.9 Annual Listing Fees 29.9 30.1 30.7 31.4 34.8 Initial Listing Fees 3.4 3.8 11.2 6.7 11.4 Subsequ
Slide 24: 1. Income Statement (Continued)
1. Income Statement (Continued) 1H13 2H13 1H14 2H14 1H15 For personal use only $ Million $ Million $ Million $ Million $ Million Staff 43.2 44.0 47.2 45.2 49.9 Occupancy 6.6 7.1 6.9 7.4 6.7 Equipment 10.5 11.9 11.6 11.4 11.8 Administration 7.4 8.2 7.3 9.0 8.4 Variable 2.0 1.8 2.3 2.0 2.8 ASIC Superv
Slide 25: 2. Balance Sheet
2. Balance Sheet For personal use only 31 Dec 12 30 Jun 13 31 Dec 13 30 Jun 14 31 Dec 14 $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 4,333.9 4,496.2 5,071.7 5,015.6 5,027.3 Goodwill 2,262.8 2,317.6 2,317.6 2,317.6 2,317.6 Investments 203.9 18
Slide 26: 3. Key Financial Ratios
3. Key Financial Ratios For personal use only 1H13 2H13 1H14 2H14 1H15 Basic EPS (including significant items) 96.2c 99.3c 98.3c 100.2 102.7c Diluted EPS (including significant items) 96.2c 99.3c 98.3c 100.2 102.7c Underlying EPS (excluding significant items) 96.2c 99.3c 98.3c 100.2 102.7c Dividend
Slide 27: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services For personal use only 1H13 2H13 1H14 2H14 1H15 Total domestic market capitalisation ($bn) – period end $1,336 $1,347 $1,527 $1,552 $1,575 Total number of listed entities (includes all stapled entities) - period end 2,188 2,185 2,195 2,192 2,208 Number of new listings
Slide 28: 4.2 Cash Market
4.2 Cash Market For personal use only 1H13 2H13 1H14 2H14 1H15 Trading days 129 123 130 123 130 Total cash market trades ('000) 76,283 98,483 93,607 88,254 92,984 Average daily cash market trades 591,341 800,549 720,053 717,512 715,263 Open trading ($bn) $296.090 $349.071 $313.211 $299.280 $326.180
Slide 29: 4.3 ASX Derivatives
4.3 ASX Derivatives For personal use only 1H13 2H13 1H14 2H14 1H15 Trading days (ASX) 129 123 130 123 130 Equity options (‘000) 74,309 71,221 59,170 57,173 58,515 Index options and futures (‘000) 6,168 5,595 3,887 4,362 5,685 Total contracts (‘000) 1 80,477 76,816 63,057 61,535 64,200 Average daily
Slide 30: 4.4 ASX Derivatives
4.4 ASX 24 Derivatives For personal use only 1H13 2H13 1H14 2H14 1H15 Trading days (ASX 24) 129 126 130 126 130 Total contracts - futures ('000) ASX SPI 200 4,894 5,365 4,875 4,840 5,171 90 day bank bills 10,298 15,568 13,453 12,450 13,942 3 year bonds 22,006 25,493 23,486 24,400 24,117 10 year bond
Slide 31: 4.4 ASX Derivatives (Continued)
4.4 ASX 24 Derivatives (Continued) For personal use only 1H13 2H13 1H14 2H14 1H15 Total contracts - options on futures ('000) ASX SPI 200 192 157 232 241 313 90 day bank bills 7 0 4 0 0 3 year bonds 256 270 153 263 108 Overnight 3 year bonds 742 1,172 719 804 496 Intra-day 3 year bonds 536 907 804 7
Slide 32: 4.5 Information and Technical Services
4.5 Information and Technical Services 1H13 2H13 1H14 2H14 1H15 For personal use only Technical Services (number at period end) Liquidity access ASX sessions 1,625 1,526 1,423 1,431 1,277 ASX gateways 267 248 236 233 221 ASX liquidity cross connects 70 70 59 61 60 ASX 24 gateways 323 272 249 241 230
Slide 33: 4.6 Austraclear
4.6 Austraclear For personal use only 1H13 2H13 1H14 2H14 1H15 Settlement days 129 123 130 123 130 Transactions ('000) Cash transfers 294 293 312 288 299 Fixed interest securities 371 392 405 395 379 Discount securities 94 91 84 78 80 Foreign exchange 10 11 11 10 11 Other 6 5 5 5 5 Total transaction
Slide 34: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances For personal use only 1H13 2H13 1H14 2H14 1H15 $ Million $ Million $ Million $ Million $ Million Balances at period end ASX Clear – initial margins 289.5 561.4 432.8 549.8 450.5 ASX Clear (Futures) – initial margins House 1,032.0 907.0 971.4 849.3 727.3 ASX Cl
Slide 35: 5. Free Cash Flow Summary
5. Free Cash Flow Summary 1H13 2H13 1H14 2H14 1H15 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group cash Total cash and short-term investments 4,333.9 4,496.2 5,071.7 5,015.6 5,027.3 Less participants’ margins and commitments – cash backed (3,536.2) (3,753.1) (4,033.
Slide 36: 6. Capital Attribution
6. Capital Attribution 31 Dec 12 30 Jun 13 31 Dec 13 30 Jun 14 31 Dec 14 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group shareholders’ equity 3,047.7 3,321.8 3,676.2 3,670.9 3,751.9 ASX Clear – default fund contributed by ASX (held in ASX Clear) 150.0 250.0 250.0 25
Slide 37: 7. Cash Market Clearing and Settlement Income Statements
7. Cash Market Clearing and Settlement Income Statements For personal use only Cash Market Cash Market Cash Market Cash Market Clearing Clearing Settlement Settlement 1H15 1H14 1H15 1H14 $ Million $ Million $ Million $ Million Operating Revenues 23.2 21.9 22.8 22.1 Operating Expenses 5.4 5.2 6.6 6.3
Slide 38: For personal use only
For personal use Onlly Globally connected World class e Internationally competitive Customer driven www.asx.com.au Customer servi 131 ASX (131 279) | international +61 2 9338 0000