Asx Limited · ASX:ASX
Asx — Citi's Australian and New Zealand Investment Conference 2014
22 slides from Asx's conference presentation, Mar 10, 2014
Slide 1: ASX Presentation to Investors
ASX Limited ABN 98 008 624 691 Exchange Centre 20 Bridge Street Sydney NSW 2000 PO Box H224 Australia Square NSW 1215 Telephone +61 2 9227 0000 www.asx.com.au For personal use only 10 March 2014 Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Lim
Slide 2: HY14 Results Presentation
HY14 Results Presentation For personal use only Elmer Funke Kupper, CEO March 2014 1
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. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes as it does not take into ac
Slide 4: Financial Results 1H14
Financial Results 1H14 For personal use only Revenue Expenses EBITDA Profit EPS DPS $329.3m $77.2m $252.1m $189.6m 98.3c 88.2c 8.0% (8.3%) 8.0% 10.8% 2.2% 0.3% • Profit after tax $189.6m, up 10.8% − Includes additional interest from capital raising ‒ EBITDA up 8% driven by revenue growth ‒ Interim d
Slide 5: Income Statement
Income Statement For personal use only 1H14 1H13 2H13 % Variance % Variance $ Million $ Million $ Million Operating Revenue 329.3 304.8 8.0% 312.6 5.4% Operating Expenses 77.2 71.3 (8.3%) 74.9 (3.2%) EBITDA 252.1 233.5 8.0% 237.7 6.0% Depreciation and Amortisation 16.3 15.4 (6.1%) 15.0 (8.4%) EBIT 2
Slide 6: EPS Movement (Cents per Share)
EPS Movement (Cents per Share) For personal use only 10.4 (8.3) 98.3 96.2 EPS Up 2.2% 1H13 Movement due to Movement due to increase 1H14 increased earnings in number of shares • EPS impacted by $553 million capital raising in June/July 2013 • EPS up 2.2% - higher earnings partly offset by issue of a
Slide 7: Revenue Movement ($M)
Revenue Movement ($M) For personal use only 1.4 0.6 329.3 5.4 1.6 3.3 4.3 7.9 304.8 Up Up Up Up Up Up Up 10.7% 7.8% 10.9% 6.6% 5.9% 7.4% 6.5% Operating Revenue Up 8.0% 1H13 Listings and Cash Market Information Technical Derivatives and Austraclear Other Revenue 1H14 Issuer Services Services Services
Slide 8: Revenue Performance by Half
Revenue Performance by Half For personal use only 1H14 % Variance % Variance $ Million to PCP to 2H13 Listings and Issuer Services 81.5 10.7% 23.4% Cash Market 59.2 7.8% (0.9%) Information Services 33.9 10.9% 8.7% Technical Services 26.2 6.6% 4.1% Derivatives and OTC Markets 99.8 5.9% (3.0%) Austrac
Slide 9: Revenue Profile
Revenue Profile For personal use only 1H14 Revenue Mix • Cash markets are 18% of total revenues Other 3% Austraclear Listings and (trading, clearing and settlement) 6% Issuer Technical Services 25% Services 8% • Derivatives comprises interest rate, equity index, electricity and commodities futures,
Slide 10: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $81.5 million, up 10.7% Listings and Issuer Services • Listings $66.8 million, up 11.3% • Rights issue timetable reduction from 26 to 19 days ‒ 69 IPOs (41 pcp) • Equity Research Scheme expanded to $2m in FY14 ‒ IPO
Slide 11: Cash Market
Cash Market For personal use only Highlights Areas of Focus Revenue $59.2 million, up 7.8% Trading • Trading $16.6 million, up 5.0%, Clearing $21.7 million, up • Centre Point 5.5% of value, 15.7% of revenue (10.5% 10.3% and Settlement $20.9, up 7.5% pcp). Further product innovations launched • Total
Slide 12: Information and Technical Services
Information and Technical Services For personal use only Highlights Areas of Focus Information Services $33.9 million, up 10.9% Information Services • Professional and retail usage up • Enhanced Corporate Actions information service • Pricing changes implemented 1 July 2013 • Fee alignment to changi
Slide 13: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $99.8 million, up 5.9% Product Development • ASX 24 Derivatives $89.8 million, up 12.4% • Launch of VIX and equity sectoral futures contracts ‒ Contracts traded up 14.5% • New electricity futures contracts ‒ Includes
Slide 14: Austraclear
Austraclear For personal use only Highlights Areas of Focus Revenue $20.5 million, up 7.4% ASX Collateral Service • Transaction revenue $8.2 million, up 3.4% • Reduces collateral costs for ASX clients ‒ Transaction volume up 5.5% • Phase 1 connects service to Austraclear fixed income • Holdings reve
Slide 15: ASX will build world class infrastructure by end 2014
ASX will build world class infrastructure by end 2014 For personal use only EQUITIES FUTURES ASX SERVICE AVAILABLE FY14 OTC Clearing Client Clearing ASX OTC MARKETS ASX 24 ASX Collateral Reduced risk Basel 3 ASX CLEAR GLOBAL ASX CLEAR (FUTURES) CCPs Efficient margining Broader collateral
Slide 16: World Class Post-Trade Services
World Class Post-Trade Services For personal use only World Class World Class Financial Infrastructure Investor Protection • Attractive markets Delivered between • Client protection ‒ Top 5 interest rate futures and July 2013 and July 2014 ‒ Client level clearing swap markets in the world • Domestic
Slide 17: Interest and Dividend Income
Interest and Dividend Income For personal use only 1H14 1H13 % $ Million $ Million Variance Highlights • Total net interest income up 41.5% ASX Group Interest 14.5 7.5 94.0% Income • ASX Group interest income up 94.0% following capital raising and repayment of debt facility Net Interest Earned on Co
Slide 18: Expenses
Expenses For personal use only 1H14 1H13 % Variance Highlights $ Million $ Million • Total expenses up 8.3% Staff 47.2 43.2 (9.4%) ‒ Average staff numbers up 4.1% to 532 FTEs Occupancy 6.9 6.6 (4.5%) (511 pcp). Increase driven by initiatives Equipment 11.6 10.5 (10.8%) ‒ Higher equipment expenses to
Slide 19: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 34.8 23.5 20.5 19.0 18.5 18.6 15.4 15.4 8.6 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 Normal Data Centre Highlights • Approximately $13 million of $18.6 million in 1H14 invested in post-trade services • Guidance FY14 capital expenditure $40 to $45 mi
Slide 20: Post Balance Date Activity
Post Balance Date Activity For personal use only Economic and market conditions • Stabilisation/modest improvement in global economic conditions; structural challenges in Europe remain • Mixed economic indicators domestically − Improving business sentiment; mixed signals in consumer confidence − Cor
Slide 21: Financial Results 1H14
Financial Results 1H14 For personal use only Revenue Expenses EBITDA Profit EPS DPS $329.3m $77.2m $252.1m $189.6m 98.3c 88.2c 8.0% (8.3%) 8.0% 10.8% 2.2% 0.3% • Profit after tax $189.6m, up 10.8% ‒ EBITDA up 8% driven by revenue growth ‒ Interim dividend in line with 1H13 following capital raising
Slide 22: For personal use only
e Internationally competitive Customer driven Globally connected World class ASX For personal use only Customer service e WWW.aSX.COM.au | 131 ASX (131 279) | international +61 2 9338 0000
ASX — Citi's Australian and New Zealand Investment Conference 2014 on 6ix