Slide 1: ASX Limited 2010 Half-Year Results
For personal use only ASX Limited 2010 Half-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO 18 February 2010 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 (18 February 2010). It is provided in summary and does not purport to be complete. You should not rely upon it as advic
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 reviewed accounts. There have been no material changes to accounting policies during the perio
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Financial and Operational Highlights Alan Bardwell • Outlook and Post Balance Date Activity Robert Elstone • Questions
Slide 5: Introduction
For personal use only Introduction Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights – Six Months to December 2009 (1H10)
Financial Highlights – Six Months to 31 December 2009 (1H10) For personal use only • Operating revenue excluding interest and dividends of $302.8 million, up 5.7% • Cash operating expenses of $68.2 million, down 2.8% • EBITDA of $234.6 million, up 8.5% • Normal profit after tax of $170.6 million, do
Slide 7: Australian Equity and Interest Rate Market Volatility
Australian Equity and Interest Rate Market Volatility For personal use only 3.0% 3.0% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 90 Day Bank Bill Rate All Ordinaries Index • Average absolute daily pe
Slide 8: Business Highlights – Six Months to December 2009
Business Highlights – Six Months to 31 December 2009 For personal use only • A rebound in financial market confidence and signs of modest risk appetite returning to the financial intermediary and investment community • Volatility returned to more historically normal levels in both equity and fixed i
Slide 9: Financial and Operational Highlights
For personal use only Financial and Operational Highlights Alan Bardwell Chief Financial Officer
Slide 10: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only 1H10 2H09 1H09 2H08 $ million $ million $ million $ million Operating Revenue 302.8 252.1 286.3 300.0 Cash Operating Expenses 68.2 68.1 70.1 68.4 EBITDA 234.6 184.0 216.2 231.6 Depreciation and Amortisation 9.2 7.9 7.2 8.6 EBIT 225.4 176
Slide 11: Financial Performance - EBITDA
Financial Performance - EBITDA For personal use only EBITDA 1H06 to 1H10 280 revenue recovery revenue growth (post-GFC) revenue decline (GFC) (post merger,pre-GFC) 260 235 240 246 232 220 229 216 $ millions 200 184 180 184 160 149 cost reduction 140 cost containment (post-merger) 132 120 100 1H06 2H
Slide 12: Revenue Highlights – Six Months to December 2009
Revenue Highlights – Six Months to 31 December 2009 For personal use only 1H10 Revenue $65.3m $94.3m $71.9m $35.3m $14.7m $14.8m $6.5m $302.8m Change 17% 6% 3% 5% 2% 26% 18% 6% From 1H09 (pcp) Listings Cash Derivatives Information Technology Austraclear Other Total Markets Services Infrastructure Li
Slide 13: Financial Performance – Expenses
Financial Performance – Expenses For personal use only 1H10 2H09 1H09 2H08 Expenses $ million $ million $ million $ million Staff Expenses 39.6 40.1 41.7 39.9 Occupancy Expenses 6.7 6.2 6.5 6.0 Equipment Expenses 11.3 11.7 11.0 11.6 Administration Expenses 7.6 7.8 8.2 8.6 Variable Expenses 2.9 2.3 2
Slide 14: Global Exchange Expense Comparison
Global Exchange Expense Comparison For personal use only Cash operating expenses Cash operating expenses of comparable exchanges converted to $A (2009) of comparable exchanges as % of revenue (2009) 600 50% 526 44% cash operating expenses as % of revenue 500 40% 38% 35% 400 30% $ million 26% 300 211
Slide 15: Expenses – Significant Items
Expenses – Significant Items For personal use only Forecast Forecast Significant Items 1H10 2H10 FY10 $ million $ million $ million Market Supervision (1.2) (0.8)-(2.8) (2.0)-(4.0) Business Restructure (2.5) (2.5)-(4.5) (5.0)-(7.0) Pre-tax Significant Items (3.7) (3.3)-(7.3) (7.0)-(11.0) Tax Effect
Slide 16: Interest and Dividend Income 1H10
Interest and Dividend Income 1H10 For personal use only RBA Cash Rate and 90 Day BBSW Rate 1H10 1H09 9.0 $ million $ million 8.0 Interest Income 5.9 14.0 7.0 Dividend Income 3.1 2.5 6.0 interest rate % 5.0 • Significant reduction in interest income attributable to lower official cash rate 4.0 • Divi
Slide 17: Interest on Participant Balances 1H10
Interest on Participant Balances 1H10 For personal use only Average Monthly Cash Margins $ billion BPS 1H10 1H09 $8.0 90 $ million $ million Interest Income on 8.3 19.0 $7.0 80 Participant Balances 70 $6.0 60 $5.0 • Average cash collateral balance during 50 1H10 of $2.9 billion, 42.9% lower than the
Slide 18: Dividends
Dividends For personal use only • Dividend policy – 90% of Normal NPAT, fully franked • Interim dividend – 89.1 cps • Dividend Reinvestment Plan available – 1.5% discount Capital Return Final Dividend 250.0 Cents Interim Dividend per share 200.0 58.5 150.0 93.9 74.5 91.5 100.0 63.9 50.9 50.0 98.5 90
Slide 19: Balance Sheet
Balance Sheet For personal use only 31 Dec 09 30 June 09 Variance Variance $ million $ million $ million % Cash and Available For Sale Financial 3,365 4,020 (655) (16%) Assets Goodwill 2,263 2,263 - - Other Assets 506 504 2 - Total Assets 6,134 6,787 (653) (10%) Amounts Owing to Participants 2,691 3
Slide 20: Capital and Liquidity Position
Capital and Liquidity Position For personal use only ASX Group Equity ASX Group Cash Net Tangible Equity v Risk Based Capital ASX Own Cash v Cash Backed Requirements 800 Attribution 800 700 700 800 800 600 600 700 700 600 500 600 500 $ million $ million 500 500 $ million 400 400 400 400 300 300 300
Slide 21: Outlook and Post Balance Date Activity
For personal use only Outlook and Post Balance Date Activity Robert Elstone Managing Director and CEO
Slide 22: Post Balance Date Activity
Post Balance Date Activity For personal use only • Trade execution levels for the start of 2H10 (1 January 2010 to 16 February 2010) showing marked improvement on 2H09 •Cash markets average daily traded value $4.8 billion (up 20% on 2H09) •SFE derivatives average daily volume 261,538 contracts (up 3
Slide 23: Outlook
Outlook For personal use only • IPO outlook healthy based on enquiry pipeline • Volatility in equity and fixed income markets likely to be impacted by global sovereign debt quality concerns • Confident in business growth prospects for the balance of FY10 as economic growth recovery continues in Aust
Slide 24: Questions
For personal use only Questions
Slide 25: ASX Limited 2010 Half-Year Results
For personal use only ASX Limited 2010 Half-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO 18 February 2010 Sydney, Australia