Asx Limited · ASX:ASX
Asx — Macquarie Australia Conference 2016
19 slides from Asx's conference presentation, May 4, 2016
Slide 1: ASX Limited – Presentation to Investors (cover letter)
4 May 2016 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – PRESENTATION TO I
Slide 2: Investor Presentation, ASX Limited, 4 May 2016
For personal use only Investor Presentation ASX Limited 4 May 2016
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 (4 May 2016). It is provided in summary and does not purport to be complete. You should not rely upon it as a
Slide 4: Financial Results – Months to March 2016
Financial Results – 9 Months to 31 March 2016 Revenues Expenses Statutory NPAT For personal use only EBITDA Underlying NPAT $552.8 m $127.5m $425.3m $317.4m $317.4m 7.0% (6.1%) 7.2% 5.9% 6.2% Positive revenue growth of 7.0% • Growth in all major categories compared to pcp supported by robust trading
Slide 5: Financial Results – Months to March 2016 (continued)
Financial Results – 9 Months to 31 March 2016 (continued) Revenues Expenses Statutory NPAT For personal use only EBITDA Underlying NPAT $552.8 m $127.5m $425.3m $317.4m $317.4m 7.0% (6.1%) 7.2% 5.9% 6.2% CEO Renewal • Elmer Funke Kupper resigned 21 March after 4.5 years in the role • CEO renewal pro
Slide 6: Income Statement – Months to March 2016
Income Statement – 9 Months to 31 March 2016 YTD March 16 YTD March 15 For personal use only $m $m % Variance Operating Revenues 552.8 516.8 7.0% Operating Expenses 127.5 120.2 (6.1%) EBITDA 425.3 396.6 7.2% Depreciation and Amortisation 31.3 28.2 (11.1%) EBIT 394.0 368.4 6.9% Interest and Dividend
Slide 7: Revenue Movement – Months to March 2016
Revenue Movement – 9 Months to 31 March 2016 ($ Million) For personal use only 4.1 0.7 552.8 7.7 9.7 13.7 516.8 Up Up Up Up Up 10.5% 7.7% 11.3% 2.2% 74.8% Operating Revenues Up 7.0% July 14 to Listings and Trading Equity Post-Trade Derivatives and Other July 15 to March 15 Issuer Services Services S
Slide 8: Activity Levels
Activity Levels Total Capital Raised ($ Billion) Cash Market Trading For personal use only 38.7 ASX Average Daily Value On-market ($ Billion) 4.254 4.246 4.241 3.887 4.021 28.3 3.434 3.557 26.3 25.3 13.3 11.6 8.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY15 FY16 FY15 FY16 Futures1 - Average Daily Contracts ('000) E
Slide 9: Attractive and Diversified Business Model
Attractive and Diversified Business Model For personal use only YTD Mar 2016 ASX Revenues 100% = $553m Austraclear 7% Listings • Domestic leader in all segments, Asian leader in 20% A$ derivatives Listings and • Derivatives and OTC includes interest rate, Issuer Services equity index, electricity an
Slide 10: ASX Group Priorities
ASX Group Priorities Business initiatives progressing For personal use only • Innovate in fragmented equity market – Centre Point Global Leader in A$ and NZ$ • Build on leadership in A$ and NZ$ derivatives markets – OTC, Collateral • Grow listings franchise – NZ, Tech Investment Supermarket • Extend
Slide 11: Global Leader in A$ and NZ$ Markets
Global Leader in A$ and NZ$ Markets Growth in OTC Clearing & Collateral Management Services For personal use only OTC Notional Value Cleared ($ Billion) Collateral Balances ($ Billion) 261 227 7 207 188 154 5 5 137 140 4 5 136 137 4 4 4 4 121 4 4 118 4 102 104 3 3 3 3 3 3 3 71 2 62 2 43 17 15 20 2 5
Slide 12: Investment Supermarket
Investment Supermarket For personal use only Grow Listings Franchise (FY16 Listings) Areas of Focus Grow listings franchise • Attractive and flexible capital market listing rules – 25% increase in capital raised March 16 YTD • New Zealand simplified dual listing process – 42 NZ companies • NZ IPOs –
Slide 13: Technology Transformation
Technology Transformation Key projects progressing For personal use only Cash Futures Market Trading Trading Trading platforms including ETOs Jul to Nov 2016 2017 Equities Derivatives Clearing/ Distributed Ledger Clearing settlement Technology Phase I Prototype platforms Development FY17 / FY18 FY17
Slide 14: Opportunity for Post-Trade Innovation
Opportunity for Post-Trade Innovation Distributed Ledger Environment Investors For personal use only Consolidated view of holdings Issuers/listed companies Choice of real-time access to securities/cash Improved shareholder analytics Real-time dividend payments, voting Streamlined/automated corporate
Slide 15: Distributed Ledger Technology
Distributed Ledger Technology Assessing the opportunity For personal use only Current Focus Digital Asset Holdings Investors • Investment in Digital Asset Holdings (DAH) of $14.9m for a 5% stake plus rights to acquire additional 5% • ASX and DAH working together to develop a beta software system to
Slide 16: Regulatory Environment
Regulatory Environment For personal use only Developments Last Three Years Equities Clearing Review Investors Safe and effective competition • Equity market regulations supporting end-investors • Treasurer announced commitment to putting in place safe and effective competition for cash Systemic risk
Slide 17: Operating Expenses – Months to March 2016
Operating Expenses – 9 Months to 31 March 2016 YTD March 16 YTD March 15 For personal use only $m $m % Variance Staff 76.0 73.4 (3.5%) Other 51.5 46.8 (10.1%) Total Operating Expenses 127.5 120.2 (6.1%) • Staff costs up 3.5% - Average headcount up 0.8% to 530 FTEs - 547 FTEs at 31 March 16, up from
Slide 18: Capital Expenditure ($ Million)
Capital Expenditure ($ Million) FY12 $39.1m FY13 $38.9m FY14 $43.2m FY15 $44.4m FY16 approx $50m For personal use only 31.4 23.5 24.6 20.5 18.5 18.6 18.7 15.4 13.0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Normal ALC (Data and Customer Support Centre) Post-Trade Technology Transformation¹ Hi
Slide 19: Financial Results – Months to March 2016
Financial Results – 9 Months to 31 March 2016 Revenues Expenses Statutory NPAT For personal use only EBITDA Underlying NPAT $552.8 m $127.5m $425.3m $317.4m $317.4m 7.0% (6.1%) 7.2% 5.9% 6.2% Positive revenue growth of 7.0% • Growth in all major categories compared to pcp supported by robust trading