Iress Limited · ASX:IRE
Iress — UBS Australian Small Caps Conference 2009
27 slides from Iress's conference presentation, Oct 22, 2009
Slide 1: UBS Australian Small Caps Conference 2009
UBS Small Caps Conference | October 2009 For personal use only UBS Australian Small Caps Conference 2009 October 2009
Slide 2: IRESS H1'09 Results
UBS Small Caps Conference | October 2009 IRESS H1’09 Results For personal use only • Adjusted Group profit $26.4 million (H2’08: $25.3m, up 4.6%) • Resilient performance through financial crisis, with revenue up 0.8% and EBITDA up 3.8% on H2’08 • Common strategy in all businesses of long term client
Slide 3: Group Performance Against Prior Year
UBS Small Caps Conference | October 2009 Group Performance Against Prior Year For personal use only • Adjusted Group Profit $26.434 m Up $1.163 million, 4.6% on Prior Half • Segment Contribution against prior year $A % • Financial markets Aust/NZ (.078) (7) • Financial markets Canada 0.477 41 • Weal
Slide 4: EBITDA Margins
UBS Small Caps Conference | October 2009 EBITDA Margins For personal use only EBITDA Margin: % Revenue • Wealth Management (Media Release) H1'07 H2'07 H1'08 H2'08 H1 2009 2006 2007 2008 Aust Fin Mkts 55.7% 54.1% 55.2% 55.5% 56.8% 54.8% 54.8% 55.3% Can Fin Mkts (CAD)* (15.8%) 0.6% 21.3% 26.3% 29.2% (
Slide 5: Operating Cashflow per share
UBS Small Caps Conference | October 2009 Operating Cashflow per share* For personal use only Cash generation from the business continues to be very strong $0.60 $0.50 $0.40 $0.30 H2 H1 $0.20 $0.10 $0.00 2002 2003 2004 2005 2006 2007 2008 2009 * Calculated as Net Cash from Operations ÷ No shares on i
Slide 6: IRESS 2009 Group Outlook
UBS Small Caps Conference | October 2009 IRESS 2009 Group Outlook For personal use only • Growth weakened in late 2008 carrying into Q1 2009, stabilising Q2 2009 • Reduction most marked in Financial Markets A&NZ • Wealth management revenue impacted also but offset with growth • Canada easily offsett
Slide 7: Daily Trades on the ASX
UBS Small Caps Conference | October 2009 Daily Trades on the ASX For personal use only 900 800 700 600 500 400 300 200 100 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Value of trades Number of trades 7
Slide 8: Australia Financial Markets
UBS Small Caps Conference | October 2009 Australia Financial Markets For personal use only • Revenue peaked in November 2008 trending down to stabilise late Q2 2009: • IRESS desktop – majority of downsizing as licensed per user • Portfolio – growth in all forms (Administration, Managed Account and F
Slide 9: Australia Financial Markets – 2009
UBS Small Caps Conference | October 2009 Australia Financial Markets – 2009 For personal use only • IOS+ implementation progresses: • major institutional OMS enhancements • high volume market making in production • Range of trading terminals available • FIX+ further roll-out • IOS+ now generating 30
Slide 10: Australia Financial Markets – Revenue
UBS Small Caps Conference | October 2009 Australia Financial Markets – Revenue ($ pm) For personal use only 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2004 2005 2006 2007 2008 2009 10
Slide 11: IRESS Desktop Gross Cancellations
UBS Small Caps Conference | October 2009 IRESS Desktop Gross Cancellations ($ pm) For personal use only Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 0 -10 -20 -30 $'000's -40 -50 -60 -70 -80 -90 -100 Demonstrates dynamics of crisis and stabilisation 11
Slide 12: Australia Financial Markets – Outlook
UBS Small Caps Conference | October 2009 Australia Financial Markets – Outlook For personal use only • H2 09 outlook: • Run rate started slightly below H1 average • Level of cancellations has stabilised, now back to pre-crisis levels • Modest new revenue • Expect flat to slightly positive EBITDA for
Slide 13: Canada - Overview
UBS Small Caps Conference | October 2009 Canada - Overview For personal use only • Result significantly better than anticipated in Q1 2009. • Revenue increased 7.2% on H2’08 to 7.811 (CAD) • EBITDA increased 19.4% on H2’08 to 2.810 (CAD) • Impact of crisis on Canadian financial markets no less sever
Slide 14: Daily Trades on the TSX
UBS Small Caps Conference | October 2009 Daily Trades on the TSX For personal use only 700 600 500 400 300 200 100 - Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Value of trades Number of Trades 14
Slide 15: Canada – Monthly Subscription Revenue
UBS Small Caps Conference | October 2009 Canada – Monthly Subscription Revenue* For personal use only 1.6 1.4 CAD$ Millions 1.2 1.0 Pre-IRESS full production level offering 0.8 0.6 0.4 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 *Assumes 100% ownership 15
Slide 16: Canada – 2009
UBS Small Caps Conference | October 2009 Canada – 2009 For personal use only • Institutional order management projects underway with key clients. • Soon to be released Buy-Side enhancements will allow for further penetration of the EMS segment. • Product enhancements, content acquisition for Canadia
Slide 17: Comparative Message Rates
UBS Small Caps Conference | October 2009 Comparative Message Rates (per trade per destination) For personal use only 350 300 250 200 150 100 50 - TSX CHI-X ALPHA PURE ASX CANADA AUS Messages per trade per exchange, measured over week ending 15 Oct 09. 17
Slide 18: Average Daily Trades
UBS Small Caps Conference | October 2009 Average Daily Trades For personal use only 1.2 1.0 0.13 0.8 0.15 Millions 0.6 0.4 0.72 0.56 0.2 0.0 CANADA AUS TSX CHI-X ALPHA PURE ASX Measured over week ending 15 Oct 09. 18
Slide 19: Canada – Product Strategy
UBS Small Caps Conference | October 2009 Canada – Product Strategy For personal use only • Current product set: • Trading terminals for Canadian equities and options • Retail order flow management (including US FX tools) • Institutional order management and compliance • FIX connectivity • Best marke
Slide 20: Canada - Outlook
UBS Small Caps Conference | October 2009 Canada - Outlook For personal use only • H2 09 outlook: • Run rate started ahead of H1 average • Revenue increases have continued • EBITDA growth in H2 anticipated to be strong, building on first half results • Conditions remain fragile and downside risks rem
Slide 21: Financial Markets – Asian Initiative
UBS Small Caps Conference | October 2009 Financial Markets – Asian Initiative For personal use only • Decision to organically invest in creating South East Asian capability • Following successful CFD roll-out in Singapore our increased understanding has exposed strong opportunities for our solution
Slide 22: Wealth Management
UBS Small Caps Conference | October 2009 Wealth Management For personal use only • Australia & NZ • Revenue up 0.4% and EBITDA up 5.6% on H2’08 respectively • Margin improvement primarily through staff cost management • Revenue reduction from cost cutting offset by demand elsewhere • Demand for sing
Slide 23: Wealth Management – Aust & NZ Monthly Subscription Revenue
UBS Small Caps Conference | October 2009 Wealth Management – Aust & NZ Mthly Subscription Rev For personal use only 3.5 3.0 2.5 $A Millions 2.0 1.5 1.0 0.5 0.0 2004 2005 2006 2007 2008 2009 23
Slide 24: Wealth Management - 2009
UBS Small Caps Conference | October 2009 Wealth Management - 2009 For personal use only • eApplications – mortgage: • Agreement with four major lenders for LIXI-based loan lodgement and backchannel connectivity. First lender in production, others to follow this half • Key client for integrated wealt
Slide 25: Wealth Management - South Africa
UBS Small Caps Conference | October 2009 Wealth Management - South Africa For personal use only • Liberty Life is first XPLAN client in South Africa and both teams have finalised integration requirements and will commence rollout. • Philippe Moretonas renewed tenure into the future following complet
Slide 26: Wealth Management Outlook
UBS Small Caps Conference | October 2009 Wealth Management Outlook For personal use only • Australia & NZ • Run rate started slightly below H1 average • Efficiency and cost are a renewed focus which is upholding demand for our comprehensive and integrated solutions • Small organic growth expected to
Slide 27: Market Technology
MARKET TECHNOLOGY 1 SN ‘ ~ a ile, , * | . www.iress.com.au : : : 27