Asx Limited · ASX:ASX
Asx — Bank of America Merrill Lynch 29th Australian Investment Conference 2014
21 slides from Asx's conference presentation, Sep 8, 2014
Slide 1: ASX Limited – Presentation to Investors and Analysts
8 September 2014 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive Leader, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – PRES
Slide 2: Full-Year 2014 Investor Roadshow
Full-Year 2014 Investor Roadshow For personal use only ASX Limited Elmer Funke Kupper, Managing Director and CEO September 2014
Slide 3: 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 (8 September 2014). It is provided in summary and does not purport to be complete. You should not rely upon i
Slide 4: Financial Results FY14
Financial Results FY14 For personal use only Revenues Expenses EBITDA Net profit EPS DPS $658.3m $153.6m $504.7m $383.2m 198.5c 178.1c 6.6% (5.1%) 7.1% 10.0% 1.5% 4.6% • Profit after tax $383.2m, up 10.0% ‒ EBITDA up 7.1% driven by revenue growth ‒ EPS and DPS growth impacted by 2013 capital raising
Slide 5: Income Statement
Income Statement For personal use only FY14 FY13 % Variance $ Million $ Million Operating Revenues 658.3 617.4 6.6% Operating Expenses 153.6 146.2 (5.1%) EBITDA 504.7 471.2 7.1% Depreciation and Amortisation 33.8 30.4 (11.2%) EBIT 470.9 440.8 6.8% Interest and Dividend 70.7 53.5 32.3% Profit Before
Slide 6: Revenue Movement ($M)
Revenue Movement ($M) - 658.3 For personal use only 2.5 3.1 7.0 10.4 2.7 15.2 617.4 Up Up Up Up Up Up Up 10.9% 2.3% 5.2% 11.4% 6.2% 6.4% 0.4% Operating Revenues Up 6.6% FY13 Listings and Cash Market Derivatives Information Technical Austraclear Other FY14 Issuer and OTC Services Services Revenue Ser
Slide 7: Attractive Business Mix
Attractive Business Mix Revenue mix for FY14 (100% = A$658.3 million) For personal use only Other • Domestic leader in all segments, Asian Austraclear1 3% Listings and leader in A$ derivatives 6% Issuer Technical Services Services • Cash markets 18% of total revenues 8% 24% (trading, clearing and se
Slide 8: Leading Multi-Asset Class Exchange Group
Leading Multi-Asset Class Exchange Group For personal use only • Develop investment ‘supermarket’ Global leader in • Continue to innovate in trade execution A$ and NZ$ markets • Expand Technical Services, re-engineer Information Services • Grow derivatives and post-trade services World-class, global
Slide 9: Listings and Issuer Services
Listings and Issuer Services Highlights Areas of Focus For personal use only Revenue $154.9 million, up 10.9% Listings and Issuer Services • 107 IPOs (82 pcp) • Rights issue timetable reduced from 26 to 19 days • IPO capital $27.7 billion, up 179.2% • Launch of ‘ASX Evolve’ program for listed entiti
Slide 10: Cash Market
Cash Market Highlights Areas of Focus For personal use only Revenue $117.3 million, up 2.3% Trading • Trading $33.1 million, up 0.7%, Clearing $43.1 million, up • Continued innovation and engagement with buy-side 3.6% and Settlement $41.1 million, up 2.3% • Centre Point 7.4% of ASX on-market value (
Slide 11: Cash Market Trading Innovation
Cash Market Trading Innovation For personal use only Choice of ASX Venue Best ASX Venue Centre Point 0.25bp or TradeMatch 0.15bp1 Preferencing 0.40bp2 0.20bp or Centre Point 0.50bp2 Centre Point/ Dual Centre Point 0.50bp Post Block Dark Limit 0.12bp or TradeMatch 0.15bp2 1. Auctions attract fee of 0
Slide 12: Derivatives and OTC Markets
Derivatives and OTC Markets Highlights Areas of Focus For personal use only Revenue $207.7 million, up 5.2% Product Development • ASX 24 Derivatives $185.5 million, up 9.7% • Activity in VIX and sector futures below expectations ‒ Contracts traded up 2.1% • ETOs - initiatives to stabilise and return
Slide 13: Building a Globally Competitive Derivatives Market
Building a Globally Competitive Derivatives Market For personal use only Regulation Balance sheet • US and EU recognition (relief) • Highest global capital • Greater certainty around standards ($553.8m location requirements capital raising in 2013) • Greater focus on • AA- long-term credit competiti
Slide 14: Information and Technical Services
Information and Technical Services Highlights Areas of Focus For personal use only Information Services $68.8 million, up 11.4% Information Services • Pricing changes implemented 1 July 2013 • Alignment to changing user profiles Technical Services $52.9 million, up 6.2% Technical Services • Hosting:
Slide 15: Austraclear
Austraclear Highlights Areas of Focus For personal use only Revenue $41.1 million, up 6.4% ASX Collateral Service • Transaction volumes up 1.8% • Launched with support of nine foundation customers • Average balances up 7.4% to $1.5 trillion • Reduces collateral costs for ASX clients by utilising fix
Slide 16: Interest and Dividend Income
Interest and Dividend Income For personal use only FY14 FY13 % Highlights $ Million $ Million Variance • Total net interest income up 35.9% ASX Group Net • ASX Group net interest income up 118.7% 28.6 13.1 118.7% Interest Income following capital raising and repayment of debt facility Net Interest E
Slide 17: Expenses ($M)
Expenses ($M) For personal use only 153.6 Highlights 146.2 141.1 • Total expenses up 5.1% 134.2 135.5 61.2 59.0 58.5 56.5 56.7 ‒ Staff costs up 6.0%. Average headcount up 3.7% to 534 FTEs. Increase driven by initiatives 87.2 92.4 ‒ Other costs up 3.8%. Higher equipment 78.8 82.6 expenses to support
Slide 18: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 50.2 43.2 39.1 38.9 27.6 FY10 FY11 FY12 FY13 FY14 Normal Data Centre Post-Trade Highlights • FY14 capital expenditure $43.2 million • Post-trade services investment $25 million in FY14, $49 million over 3 years • Guidance FY15 capital expenditure: $40 t
Slide 19: Post Balance Date Activity
Post Balance Date Activity For personal use only Market conditions • Global market conditions ‒ Low volatility – VIX at 7 year low ‒ Benign interest rate environment ‒ Limited impact from geopolitics to date • Domestic economy ‒ Resilience in business and consumer markets ‒ Rising unemployment ‒ Pol
Slide 20: Financial Results FY14
Financial Results FY14 For personal use only Revenues Expenses EBITDA Net profit EPS DPS $658.3m $153.6m $504.7m $383.2m 198.5c 178.1c 6.6% (5.1%) 7.1% 10.0% 1.5% 4.6% • Profit after tax $383.2m, up 10.0% ‒ EBITDA up 7.1% driven by revenue growth ‒ EPS and DPS growth impacted by 2013 capital raising
Slide 21: For personal use only
For personal use only Globally connected World class ¢ Internationally competitive Customer driven WWW.aSx.COM.aU Customer service 131 ASX (131 279) | International 461 2 9238 0000
ASX — Bank of America Merrill Lynch 29th Australian Investment Conference 2014 on 6ix