Slide 1: 2008 Full-Year Results
For personal use only ASX Limited 2008 Full-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO Eric Mayne, CSO 14 August 2008 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 (14 August 2008). 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. The pro-forma income statement is presented as if ASX and SFE were combined
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Financial and Operational Highlights Alan Bardwell • Markets Supervision Highlights Eric Mayne • Outlook and Post Balance Date Activity Robert Elstone • Questions • Close
Slide 5: Introduction
For personal use only Introduction Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights – FY08
Financial Highlights – FY08 For personal use only • Operating revenue up 11.2% to $614.7 million ; • Cash operating expenses down 1.5% to $136.7 million ; • Normal profit after tax up 16.9% to $365.9 million ; • EPS up 14% to 214 cents per share* ; • Full-year dividend up 17.5% to 192.4 cents per sh
Slide 7: Financial Progress since Merger
Financial Progress since Merger For personal use only FY08 FY06 Variance $ million $ million $ million Operating Revenues 614.7 450.4 164.3 Cash Operating Expenses 136.7 168.8 32.1 EBITDA 478.0 281.6 196.4 Depreciation and Amortisation 15.9 14.5 (1.4) EBIT 462.1 267.1 195.0 Net Interest and Dividend
Slide 8: Business Highlights – FY08
Business Highlights – FY08 For personal use only • Global credit dislocation and volatile equity market sentiment around the world • Nonetheless, record trade execution volumes for cash equities and SFE derivatives • Declining average cost of cash market trading, clearing & settlement • Record level
Slide 9: ASX Financial and Operational Highlights
For personal use only ASX Financial and Operational Highlights Alan Bardwell Chief Financial Officer
Slide 10: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only FY08 FY07 Variance Variance $ million $ million $ million % Operating Revenue 614.7 552.7 62.0 11.2% Cash Operating Expenses 136.7 138.8 2.1 1.5% EBITDA 478.0 413.9 64.1 15.5% Depreciation and Amortisation 15.9 15.0 (0.9) (6.2%) Interest
Slide 11: Financial Performance – Half-Year
Financial Performance – Half-Year For personal use only 1H08 1H07 Variance 2H08 2H07 Variance $m $m $m % $m $m $m % Operating Revenue 314.7 259.7 55.0 21.2% 300.0 293.0 7.0 2.4% Cash Operating Expenses 68.2 75.2 6.9 9.3% 68.5 63.6 (4.8) (7.7%) EBITDA 246.4 184.5 61.9 33.6% 231.6 229.5 2.2 1.0% Depre
Slide 12: Revenue Highlights – FY08
Revenue Highlights – FY08 For personal use only $700Change from FY07 2.3% 21.2% 7.8% 10.8% 17.7% 6.7% 11.0% (pcp) $650 $million $2.1 $614.7 $1.4 $6.6 $4.2 $12.1 $600 $33.0 $2.6 $552.7 $550 $500 $450 FY07 Listings Cash Derivatives Information Technology Austraclear Other FY08 Operating Market Service
Slide 13: Revenue – Half-Year Analysis
Revenue – Half-Year Analysis For personal use only 1H08 1H07 Variance 2H08 2H07 Variance $m $m $m % $m $m $m % Listings 66.6 56.4 10.2 18.1% 53.6 61.2 (7.6) (12.3%) Cash Market 96.3 73.1 23.2 31.6% 92.5 82.7 9.8 11.9% Derivatives 83.1 73.7 9.4 12.8% 83.8 81.0 2.8 3.4% Information Services 33.3 26.1
Slide 14: Market Activity - Listings
Market Activity - Listings For personal use only $billion $trillion $90 $1.8 IPO Capital (LHS) • 236 new listings in FY08 (284 pcp) Secondary Capital (LHS) $80 $1.6 Mkt Cap (RHS) • 2,226 listed entities at 30 Jun 08 (2,090 pcp) $70 $1.4 • $61.8 billion of total capital raised in $60 $1.2 FY08 ($77.9
Slide 15: Market Activity – Cash Market
Market Activity – Cash Market For personal use only ASX Cash Market – Volume ASX Cash Market – Value million $ $billion bps 60 $6.0 $1,000 2.0 Total Trades (m illion) (LHS) Total Value ($ billion) (LHS) Total Fee per Trade (RHS) $5.5 BPS per $1 Value (RHS) 1.8 50 $5.0 $800 1.6 $4.5 1.4 40 $4.0 $600
Slide 16: Cash Market Revenue Composition
Cash Market Revenue Composition For personal use only FY08 FY07 Variance $million $million % LPR (15%) Gross Cash $217.0 $180.3 20.4% Market Trading 40% Rebate $ 28.2 $ 24.5 15.3% Se ttle me nt 42% Net Cash $188.8 $155.8 21.2% Market Cle aring 33% Based on ASX’s normal pro-forma accounts. Comparison
Slide 17: Market Activity – Derivatives
Market Activity – Derivatives For personal use only Derivatives Volume & Derivatives – 10 Year Growth Average Fee 70.0 $1.65 120.0 ASX Derivatives Volume (m) (LHS) A SX Derivatives Volume (million) SFE Derivatives Volume (m) (LHS) SFE Derivatives V olume (miliion) SFE Derivatives Avg Fee (RHS) $1.60
Slide 18: Financial Performance – Expenses
Financial Performance – Expenses For personal use only FY08 FY07 Variance Variance $million $million $million % Staff Expenses 77.9 75.2 (2.7) (3.6%) Occupancy Expenses 12.7 16.0 3.3 20.6% Equipment Expenses 23.3 25.6 2.3 8.9% Administration Expenses 17.3 17.4 0.1 0.8% Variable Expenses 5.5 4.6 (1.0
Slide 19: Financial Performance – Expenses Half-Year
Financial Performance – Expenses Half-Year For personal use only 1H08 1H07 Variance 2H08 2H07 Variance $m $m $m % $m $m $m % Staff Expenses 38.0 41.0 3.0 7.3% 39.9 34.2 (5.7) (16.7%) Occupancy Expenses 6.7 9.0 2.3 25.6% 6.0 7.0 1.0 14.3% Equipment Expenses 11.7 13.6 1.9 14.0% 11.6 12.0 0.4 3.3% Admi
Slide 20: Capital Structure and Management
Capital Structure and Management For personal use only • Dividend policy – 90% of Normal NPAT, fully franked • Full-year dividend – 192.4 cents, up 17.5% pcp • Adequate capital held as surplus over risk requirement • ASXCC – investment and funding vehicle for the CCPs Capital Returns to Shareholders
Slide 21: ASX Markets Supervision
For personal use only ASX Markets Supervision Eric Mayne Chief Supervision Officer
Slide 22: Markets Supervision Highlights
Markets Supervision Highlights For personal use only • ASXMS manages all core ASX supervisory activities • Chief Supervision Officer (CSO) reports to subsidiary Board • ASXMS Board restructured 1 Aug 08 • Alan Cameron appointed chair; only 1 of 5 directors also on main Board • CSO chairs ASX Corpora
Slide 23: Markets Supervision Highlights
Markets Supervision Highlights For personal use only • Monitoring and enforcement activity for FY08 131,257 company announcements processed (up 11%) 447 price queries issued (down 28%) resulting in 394 subsequent market announcements 92 referrals to ASIC (up 19%) including ¾ 27 possible breach
Slide 24: Outlook and Post Balance Date
For personal use only Outlook and Post Balance Date Robert Elstone Managing Director and CEO
Slide 25: Post Balance Date – Activity Levels
Post Balance Date – Activity Levels For personal use only • 15 new entities listed 1 Jul – 13 Aug (down 69% pcp) • 2,237 companies now listed on the exchange (up 115 on pcp) • Monthly record of 10.2 million cash market trades for July 08 ($126.7 bn) • Total cash markets trades for 1 Jul – 13 Aug wer
Slide 26: Outlook and Initiatives FY09
Outlook and Initiatives FY09 For personal use only • Development of new listings initiative targeted at attracting unlisted funds and structured products • Second generation of CFD products • Additional energy derivatives to be listed including coal, gas, NZ electricity, and emission futures (subjec
Slide 27: Outlook and Initiatives FY09
Outlook and Initiatives FY09 For personal use only • Increase in ASXMS resources and significant investment in supervision and surveillance technology tools • Alan Cameron begins as Chairman of ASXMS Board • David Gonski to shortly succeed Maurice Newman as Chairman of ASX Limited • ASX AGM 24 Septe
Slide 28: Questions
For personal use only Questions
Slide 29: 2008 Full-Year Results
For personal use only ASX Limited 2008 Full-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO Eric Mayne, CSO 14 August 2008 Sydney, Australia