Slide 1: ASX Limited 2019 Full-Year Results
For personal use only ASX Limited 2019 Full-Year Results Investor Presentation 15 August 2019
Slide 2: Agenda
Agenda For personal use only Results overview Dominic Stevens – CEO Strategic update Dominic Stevens FY19 financial performance Gillian Larkins – CFO Summary and outlook Dominic Stevens Q&A – analysts followed by media Dominic Stevens and Gillian Larkins 2 |
Slide 3: FY19 highlights
FY19 highlights For personal use only Continued solid growth in NPAT, up 10.5% on a statutory basis • Performance driven by strong market activity, growth in technical services and net interest income • Total ordinary dividends of 228.7cps, as per 90% payout ratio plus a special dividend of 129.1cps
Slide 4: FY19 results
FY19 results Strong performance from all businesses while continuing to invest in resilience and growth For personal use only Revenue $863.8m +$52.9m • Up 6.5% on a like-for-like accounting basis Expenses $214.8m ($19.3m) • Increased 9.9% due to investing for resilience and growth EBITDA $649.0m +$3
Slide 5: Strategic update
For personal use only Dominic Stevens – CEO Strategic update
Slide 6: ASX has a history of enhancing the flow of information and capital
ASX has a history of enhancing the flow of information and capital Using technology to create efficiencies and opportunities for customers For personal use only ETFs Leveraging expertise mFund Equities Futures Bonds Exchange-traded Property Data science Distributed ledger products e-Conveyancing pla
Slide 7: Our multi-layered growth strategy
Our multi-layered growth strategy Building an exchange for the future For personal use only Technology-driven Customer-focused New opportunities to create Leveraging Pursuing adjacent growth opportunities products and services, and expertise Property Data science Distributed reduce risks and costs e
Slide 8: Preserving and strengthening trust, integrity and resilience
Preserving and strengthening trust, integrity and resilience Stronger Foundations program transitioning to business-as-usual For personal use only Clearing risk Enterprise and technology risk • Enhanced default resilience in both • Accelerated investment program in clearing houses hardware replaceme
Slide 9: Building contemporary technology infrastructure
Building contemporary technology infrastructure Accelerated technology investment program on track For personal use only • ASX Net upgrade FY20 • New secondary data centre completion • CHESS replacement FY20 • ASX Trade refresh progression • Equities infrastructure upgrade • Digital refresh Ongoing
Slide 10: Listings and Issuer Services
Listings and Issuer Services Focus on foreign and technology listings has expanded opportunities for all Australians For personal use only Number of ASX listed companies and Foreign Number andforeign of ASX technology companieslistings and technology their market capitalisation as a % of GDP listed
Slide 11: Derivatives and OTC Markets
Derivatives and OTC Markets Supporting deep and liquid markets via new products and providing opportunities to drive efficiencies For personal use only Deep, liquid and efficient markets New products Broadening our footprint Strong growth in interest rate futures • S&P/ASX 200 gross total return
Slide 12: Trading Services
Trading Services Industry-wide solutions, supporting customer success For personal use only Customer benefits FY19 performance Cash market • Liquidity • ASX total value traded +11.7% • Price discovery • Growth in execution services trading • Execution choice • On-market share has averaged 88% last 5
Slide 13: Equity Post-Trade Services
Equity Post-Trade Services The CHESS replacement system will deliver upgraded security, resilience and performance For personal use only Customer benefits The new system will provide: • Upgraded performance, resilience and security • New functions and ability to implement enhancements easily and qui
Slide 14: Pursuing adjacent growth opportunities
Pursuing adjacent growth opportunities In distributed ledger technology, data science and property e-Conveyancing For personal use only DLT SOLUTIONS ASX DATASPHERE SYMPLI • Exploring application use cases with • A data science and machine learning • Core platform built, with additional multiple par
Slide 15: FY19 financial performance
For personal use only Gillian Larkins - CFO FY19 financial performance
Slide 16: Financial results
Financial results Strong customer activity delivering record returns to shareholders FY19 2H19 1H19 FY18 FY19 v For personal use only $m $m $m $m FY18 Operating revenue 863.8 439.1 424.7 810.9 6.5% • Revenue up 6.5% due to market activity Operating expenses 214.8 109.6 105.2 195.5 (9.9%) • Expenses
Slide 17: Revenue
Revenue Up 6.5% with all businesses delivering solid results For personal use only Revenue contribution by business FY19 2H19 1H19 FY18 FY19 v $m $m $m $m FY18 Listings and Issuer Services 220.2 108.7 111.5 208.8 5.5% Derivatives & OTC Markets 308.6 161.8 146.8 286.4 7.8% Trading Services 229.6 116.
Slide 18: Listings and Issuer Services
Listings and Issuer Services First year adopting AASB 15 revenue standard FY19 v For personal use only FY19 2H19 1H19 FY18 FY18 Revenue ($million) 220.2 108.7 111.5 208.8 5.5% Listings 171.1 86.1 85.0 159.6 7.3% Issuer services 49.1 22.6 26.5 49.2 (0.2%) Key drivers New listings (number) 111 39 72 1
Slide 19: Derivatives and OTC Markets
Derivatives and OTC Markets Increased futures activity with market volatility FY19 v For personal use only FY19 2H19 1H19 FY18 FY18 Revenue ($million) 308.6 161.8 146.8 286.4 7.8% ASX futures and options on futures contract Futures and OTC 232.9 123.6 109.3 212.5 9.6% volume (million) Equity options
Slide 20: Trading Services
Trading Services Strong market activity and continued growth in the ALC FY19 v ASX on-market traded value For personal use only FY19 2H19 1H19 FY18 and Auctions and Centre Point % of value traded FY18 1,200.0 28.6% 30.0% Revenue ($million) 229.6 116.1 113.5 209.9 9.4% Cash market trading 51.7 25.7 2
Slide 21: Equity Post-Trade Services
Equity Post-Trade Services Higher cash market and settlement activity FY19 v For personal use only FY19 2H19 1H19 FY18 On-market value cleared ($billion) FY18 Revenue ($million) 108.4 53.7 54.7 104.8 3.5% Cash market clearing 54.4 27.1 27.3 51.9 4.9% Cash market settlement 54.0 26.6 27.4 52.9 2.1% 5
Slide 22: Operating expenses
Operating expenses Investment in resilience and growth initiatives as per guidance FY19 2H19 1H19 FY18 FY19 v For personal use only $m $m $m $m FY18 Staff 127.7 64.5 63.2 114.6 (11.5%) • Expense uplift mainly due to additional resources for licence to operate activities and growth initiatives Occupa
Slide 23: Interest and dividend income
Interest and dividend income Increased investment earnings from higher collateral balances FY19 v For personal use only FY19 2H19 1H19 FY18 FY18 ASX Group net interest income 23.4 12.5 10.9 18.2 28.7% Interest and dividend income ($million) Net interest on collateral balances 75.4 36.5 38.9 50.3 49.
Slide 24: Balance sheet
Balance sheet Financially strong with record levels of participant margins June 19 June 18 For personal use only $m $m Cash and other financial assets 12,270.3 9,570.1 • Total cash and financial assets elevated due to record Intangibles (excluding software) 2,326.1 2,326.3 participant balances and I
Slide 25: Investments in infrastructure and adjacencies
Investments in infrastructure and adjacencies Strong balance sheet with strategic investments For personal use only Capital expenditure Investments in adjacencies • Capital expenditure $75.1 million in FY19 • Sympli – Ongoing investment in upgrading technology for – 49% shareholding BAU and growth o
Slide 26: Delivering to shareholders
Delivering to shareholders Special dividend post sale of IRESS shareholding FY19 v For personal use only FY19 2H19 1H19 FY18 Statutory earnings per share (cents) FY18 Statutory earnings per share (cents) 254.1 127.0 127.1 230.0 10.5% Dividends per share (cents) 228.7 114.3 114.4 216.3 5.7% 254.1 % o
Slide 27: Summary and outlook
For personal use only Dominic Stevens – CEO Summary and outlook
Slide 28: Summary and outlook
Summary and outlook For personal use only • Delivered a strong FY19 financial result, record full-year dividend plus a special dividend • Made significant progress on multi-year initiatives to strengthen, enhance and grow ASX • Continue to see elevated volatility given geopolitical situation and cha
Slide 29: Q&A
For personal use only Q&A
Slide 30: Appendices
Appendices For personal use only 1. Income statement (prior periods restated) 2. Income statement (as previously reported for prior periods) 3. Balance sheet 4. Key financial ratios 5. Transaction and activity levels 6. ASX Group own cash movement 7. Accounting policy change 30 |
Slide 31: AASB – Revenue from Contracts with Customers
1. AASB 15 – Revenue from Contracts with Customers FY18 Revenue (as per AASB 15 Restated revenue $million statutory reporting) deferral adjustment (revised for AASB 15) For personal use only Annual listing 85.8 - 85.8 New accounting standard AASB 15 Revenue from Contracts Initial listing 18.6 (1.3)
Slide 32: Income statement (prior periods restated)
1. Income statement (prior periods restated*) FY15 FY16 FY17 FY18 FY19 $million $million $million $million $million For personal use only Annual listing 70.7 75.2 79.3 85.8 93.8 Initial listing 11.7 13.8 15.2 17.3 19.2 Subsequent raisings 38.0 41.3 44.2 48.4 51.2 Other listing 9.0 10.5 8.5 8.1 6.9 L
Slide 33: Income statement (as previously reported for prior periods)
2. Income statement (as previously reported for prior periods) Pre-AASB 15 AASB 15 FY15 FY16 FY17 FY18 FY19 For personal use only $million $million $million $million $million Annual listing 70.7 75.2 79.3 85.8 93.8 Initial listing 20.9 18.6 16.0 18.6 19.2 Subsequent raisings 42.7 45.1 46.5 58.9 51.2
Slide 34: Income statement (as previously reported for prior periods)
2. Income statement (as previously reported for prior periods) Pre-AASB 15 AASB 15 FY15 FY16 FY17 FY18 FY19 For personal use only $million $million $million $million $million Staff 96.4 101.1 110.6 114.6 127.7 Occupancy 13.7 14.1 14.6 16.4 17.9 Equipment 24.0 27.0 27.9 27.9 30.7 Administration 17.2
Slide 35: Balance sheet
3. Balance sheet 30 Jun 15 30 Jun 16 30 Jun 17 30 Jun 18 30 Jun 19 For personal use only $million $million $million $million $million Assets Cash and other financial assets 4,879.0 7,072.8 9,085.6 9,570.1 12,270.3 Intangibles (excluding software) 2,317.6 2,317.6 2,326.6 2,326.3 2,326.1 Investments 3
Slide 36: Key financial ratios
4. Key financial ratios FY15 FY16 FY17 FY18 FY19 Basic earnings per share (EPS) 1 205.7c 220.4c 224.5c 230.0c 254.1c For personal use only Diluted EPS 1 205.7c 220.4c 224.5c 230.0c 254.1c Underlying EPS 2 208.4c 220.4c 224.5c 240.4c 254.1c Dividend per share – interim 92.3c 99.1c 102.0c 107.2c 114.4
Slide 37: Listings and Issuer Services
5.1 Listings and Issuer Services FY15 FY16 FY17 FY18 FY19 For personal use only Total domestic market capitalisation ($bn) – period end $1,612 $1,620 $1,777 $1,957 $2,069 Total number of listed entities (includes all stapled entities) – period end 2,220 2,204 2,239 2,285 2,269 Number of new listings
Slide 38: Derivatives and OTC Markets: Equity Options
5.2 Derivatives and OTC Markets: Equity Options FY15 FY16 FY17 FY18 FY19 For personal use only Trading days 254 254 253 252 252 Single stock options (‘000) 109,546 88,701 93,295 80,091 73,825 Index options and futures (‘000) 10,958 12,768 10,388 12,461 11,282 Average daily single stock options contr
Slide 39: Derivatives and OTC Markets: Futures and OTC
5.2 Derivatives and OTC Markets: Futures and OTC FY15 FY16 FY17 FY18 FY19 For personal use only Trading days 256 257 256 255 255 Total contracts traded – futures ('000) ASX SPI 200 10,301 12,105 12,255 13,782 15,994 90 day bank bills 28,706 29,567 28,931 33,226 34,698 3 year bonds 49,717 50,105 53,2
Slide 40: Derivatives and OTC Markets: Futures and OTC (continued)
5.2 Derivatives and OTC Markets: Futures and OTC (continued) FY15 FY16 FY17 FY18 FY19 Total contracts traded – options on futures ('000) ASX SPI 200 454 363 202 140 98 For personal use only 3 year bonds 245 356 152 85 227 Overnight 3 year bonds 896 579 478 314 279 Intra-day 3 year bonds 927 660 460
Slide 41: Derivatives and OTC Markets: Austraclear
5.2 Derivatives and OTC Markets: Austraclear FY15 FY16 FY17 FY18 FY19 Settlement days 254 254 253 252 253 Transactions ('000) For personal use only Cash transfers 602 590 582 605 610 Fixed interest securities 774 717 741 770 812 Discount securities 157 150 146 146 147 Foreign exchange 22 11 9 9 9 Ot
Slide 42: Trading Services: Cash Market Trading
5.3 Trading Services: Cash Market Trading FY15 FY16 FY17 FY18 FY19 For personal use only Trading days 254 254 253 252 252 Total cash market trades ('000) 190,647 235,923 266,433 292,528 359,985 Average daily cash market trades 750,578 928,829 1,053,096 1,160,826 1,428,512 Continuous trading value ($
Slide 43: Trading Services: Technical Services
5.3 Trading Services: Technical Services 1111318 FY15 FY16 FY17 FY18 FY19 For personal use only Technical Services (number at period end) ASX Distribution Platform Australian Liquidity Centre cabinets 188 231 285 301 324 Connection Services ASX Net connections 126 116 123 112 104 ASX Net service fee
Slide 44: CCP participant collateral balances
5.4 CCP participant collateral balances FY15 FY16 FY17 FY18 FY19 $million $million $million $million $million For personal use only Balances at period end ASX Clear – initial margins 673.7 815.7 672.3 567.3 843.6 ASX Clear (Futures) – initial margins House1 746.0 1,293.7 2,030.9 1,920.6 2,369.7 ASX
Slide 45: ASX Group own cash movement
6. ASX Group own cash movement FY15 FY16 FY17 FY18 FY19 $million $million $million $million $million For personal use only ASX Group cash Total cash and short-term investments 4,879.0 7,072.8 9,085.6 9,565.3 12,265.0 Less participants’ margins and commitments (3,886.2) (6,088.2) (8,084.7) (8,495.8)
Slide 46: Disclaimer
Disclaimer 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 (15 August For personal use only 2019). It is provided in summary and does not purport to be complete. You should not rely upon it