Slide 1: Half-Year 2016 Results Presentation
For personal use only Half-Year 2016 Results Presentation ASX Limited Elmer Funke Kupper Peter Hiom 11 February 2016
Slide 2: 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 (11 February 2016). It is provided in summary and does not purport to be complete. You should not rely upon i
Slide 3: Financial Results 1H16
Financial Results 1H16 For personal use only Revenues Expenses EBITDA NPAT EPS DPS $376.2m $85.1m $291.1m $213.1m 110.2c 99.1c 7.9% (4.4%) 8.9% 7.3% 7.3% 7.4% Positive revenue growth of 7.9% • Growth in Listings, Trading Services and Post-Trade Services • Derivatives and OTC Markets flat with fee re
Slide 4: Financial Results 1H16 (Continued)
Financial Results 1H16 (Continued) For personal use only Revenues Expenses EBITDA NPAT EPS DPS $376.2m $85.1m $291.1m $213.1m 110.2c 99.1c 7.9% (4.4%) 8.9% 7.3% 7.3% 7.4% Balance sheet and regulatory settings • Strong balance sheet; AA- long-term credit rating from S&P • Compliance with Financial St
Slide 5: Income Statement
Income Statement For personal use only 1H16 1H15 $m $m % Variance Operating Revenues 376.2 348.7 7.9% Operating Expenses 85.1 81.4 (4.4%) EBITDA 291.1 267.3 8.9% Depreciation and Amortisation 20.8 18.6 (12.2%) EBIT 270.3 248.7 8.7% Interest and Dividend Income 33.7 34.4 (2.0%) Profit Before Tax 304.
Slide 6: Business Structure from July 2015
Business Structure from 1 July 2015 Deputy CEO (Peter Hiom)1 For personal use only Listings and Trading Equities Derivatives and Issuer Services Services Post-Trade OTC Markets (Max Cunningham) (David Raper)1 (Cliff Richards) (Helen Lofthouse)1 Scope Scope Scope Scope • Listings • Equities trading •
Slide 7: Revenue Performance
Revenue Performance 1H16 1H15 % of Group For personal use only $m $m % Variance Revenue Listings and Issuer Services 105.6 91.3 15.6% 28% Listings 82.4 70.9 16.3% Issuer Services 23.2 20.4 13.2% Trading Services 91.4 84.6 8.1% 24% Cash Market Trading 20.3 17.7 14.9% Information Services 40.6 36.7 10
Slide 8: Revenue Movement ($ Million)
Revenue Movement ($ Million) For personal use only 5.4 0.0 1.0 376.2 6.8 14.3 348.7 Up Up Up Flat Large 15.6% 8.1% 11.7% Operating Revenues Up 7.9% 1H15 Listings Trading Equity Post Derivatives and Other Revenue 1H16 and Issuer Services Trade Services OTC Markets Services Operating revenues as per t
Slide 9: Activity Levels
Activity Levels Cash Market Trading Total Capital Raised ($ Billion) For personal use only ASX Average Daily Value On-Market ($ Billion) 54.6 50.3 4.131 4.073 3.365 3.495 38.6 3.208 36.7 29.3 1H14 2H14 1H15 2H15 1H16 1H14 2H14 1H15 2H15 1H16 Futures - Average Daily Contracts ('000) Equity Options -
Slide 10: ASX Group Priorities
ASX Group Priorities For personal use only • Innovate in fragmented equity market Global Leader in A$ and NZ$ • Build on leadership in A$ and NZ$ derivatives markets • Grow listings franchise Investment Supermarket • Extend suite of investment options – equities, debt, funds • Upgrade technology inf
Slide 11: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $105.6 million, up 15.6% Grow Listings Franchise • 77 IPOs; IPO capital $13.5 billion, down 28.9% • New Zealand – simplified dual listings process implemented; 42 NZ entities listed • Secondary capital $41.1 billion
Slide 12: Trading Services (1/2)
Trading Services (1/2) For personal use only Highlights Areas of Focus Revenue $91.4 million, up 8.1% Cash Market Trading • Cash Market Trading $20.3 million, up 14.9% • On-market trading market share 88.4% (89.9% pcp) ‒ Total on-market value traded per day up 18.6% • ASX Auctions and Centre Point a
Slide 13: Trading Services (2/2)
Trading Services (2/2) For personal use only Highlights Areas of Focus Information Services $40.6 million, up 10.8% Information Services • Fee changes and higher index royalties • Expansion of data and analytic services; appointment Technical Services $30.5 million, up 1.0% of dedicated development
Slide 14: Equity Post-Trade Services
Equity Post-Trade Services For personal use only Highlights Areas of Focus Revenue $51.0 million, up 11.7% • T+2 settlement on track for March 2016 delivery • Clearing $27.2 million, up 17.3% • Investment in distributed ledger technology ‒ Value cleared up 18.4% ‒ Significant potential benefits to i
Slide 15: Opportunity for Post-Trade Innovation
Opportunity for Post-Trade Innovation 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 actions Simplified tax prepara
Slide 16: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $126.8 million, flat Product Development • Futures and OTC $91.6 million, up 1.3% • Launched 20 Year Bond Futures, mini SPI, East Coast ‒ Contracts traded up 5.1% Wheat futures/options, Deliverable Swap Futures, and
Slide 17: Futures and OTC Clearing Movement
Futures and OTC Clearing Movement For personal use only OTC Notional Value Cleared ($ Billion) Revenue Movement ($ Million) 207 5.1 0.7 (4.6) 188 91.6 90.4 137 136 140 137 118 121 102 104 71 62 43 17 15 20 2 5 1H15 Volume and Lower Higher 1H16 Apr-15 Dec-14 May-15 Dec-15 Aug-14 Oct-14 Jan-15 Mar-15
Slide 18: Interest and Dividend Income
Interest and Dividend Income For personal use only 1H16 1H15 $m $m % Variance Highlights ASX Group Net • ASX Group net interest income down 24.4% 11.3 14.9 (24.4%) from lower interest rates Interest Income • Net interest on collateral balances up 20.1% Net Interest Earned on Collateral 17.5 14.6 20.
Slide 19: Expenses ($ Million)
Expenses ($ Million) Highlights For personal use only • Expenses up 4.4% 85.1 • Staff costs up 1.5% 81.4 78.7 77.2 76.4 34.4 31.5 ‒ Higher staff and recruitment costs, 30.0 31.2 32.2 partially offset by increased capitalisation ‒ Average headcount down 0.6% to 523 FTEs 49.9 50.7 47.2 45.2 46.5 • Oth
Slide 20: Capital Expenditure ($M)
Capital Expenditure ($M) 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 Normal ($93.9m) ALC (Data and Customer Support Centre $17.8m) Post-Trade ($55.4m)¹ Technology Transformation ($17.9m)² Highlights • Focus on technology transformat
Slide 21: Post Balance Date Activity (to 5th February)
Post Balance Date Activity (to 5th February) For personal use only Total Capital raised $0.3 billion January 2016 (92.7%) Cash market trading Cash market trading (total market - all (ASX on-market) venues) $4.0 billion $5.3 billion Average value per day 7.5% Average value per day 7.6% Futures tradin
Slide 22: Financial Results 1H16
Financial Results 1H16 For personal use only Revenues Expenses EBITDA NPAT EPS DPS $376.2m $85.1m $291.1m $213.1m 110.2c 99.1c 7.9% (4.4%) 8.9% 7.3% 7.3% 7.4% Positive revenue performance • Growth in Listings, Trading Services and Post-Trade Services • Derivatives and OTC Markets flat following fee
Slide 23: Thank you
For personal use only Thank you
Slide 24: Appendices
Appendices For personal use only 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 5. Free Cash Flow Summary 6. Capital Attribution 7. Cash Market Clearing and Settlement Income Statement
Slide 25: 1. Income Statement
1. Income Statement 1H14 2H14 1H15 2H15 1H16 $ Million $ Million $ Million $ Million $ Million For personal use only Annual Listing Fees 30.7 31.4 34.8 35.9 36.7 Initial Listing Fees 11.2 6.7 11.4 9.5 11.7 Subsequent Listing Fees 20.5 17.9 21.2 21.5 29.0 Other Listing Fees 4.4 4.2 3.5 5.5 5.0 Listin
Slide 26: 1. Income Statement (Continued)
1.Income Statement (Continued) 1H14 2H14 1H15 2H15 1H16 $ Million $ Million $ Million $ Million $ Million For personal use only Staff 47.2 45.2 49.9 46.5 50.7 Occupancy 6.9 7.4 6.7 7.0 6.8 Equipment 11.6 11.4 11.8 12.2 13.1 Administration 7.3 9.0 8.4 8.8 9.9 Variable 2.3 2.0 2.8 2.3 3.1 ASIC Supervi
Slide 27: 2. Balance Sheet
2. Balance Sheet 31 Dec 13 30 Jun 14 31 Dec 14 30 Jun 15 31 Dec 15 For personal use only $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 5,071.7 5,015.6 5,027.3 4,879.0 5,356.3 Goodwill 2,317.6 2,317.6 2,317.6 2,317.6 2,317.6 Investments 288.7 25
Slide 28: 3. Key Financial Ratios
3. Key Financial Ratios 1H14 2H14 1H15 2H15 1H16 For personal use only Basic EPS (including significant items) 98.3c 100.2 102.7c 103.0 110.2c Diluted EPS (including significant items) 98.3c 100.2 102.7c 103.0 110.2c Underlying EPS (excluding significant items) 98.3c 100.2 102.7c 105.7 110.2c Divide
Slide 29: 4.1 Listing and Issuer Services
4.1 Listing and Issuer Services 1H14 2H14 1H15 2H15 1H16 For personal use only Total domestic market capitalisation ($bn) – period end $1,527 $1,552 $1,575 $1,612 $1,629 Total number of listed entities (includes all stapled entities) - period end 2,195 2,192 2,208 2,220 2,238 Number of new listings
Slide 30: 4.2 Trading Services – Cash Market Trading
4.2 Trading Services – Cash Market Trading 1H14 2H14 1H15 2H15 1H16 For personal use only Trading days 130 123 130 124 130 Total cash market trades ('000) 93,607 88,254 92,984 97,663 110,091 Average daily cash market trades 720,053 717,512 715,263 787,602 846,853 Open trading ($bn) $313.211 $299.280
Slide 31: 4.2 Trading Services – Technical Services
4.2 Trading Services – Technical Services 1H14 2H14 1H15 2H15 1H16 For personal use only Technical Services (number at period end) Liquidity access ASX sessions 1,423 1,431 1,277 1,185 1,141 ASX gateways 236 233 221 207 197 ASX liquidity cross connects 59 61 60 55 59 Futures gateways 249 241 230 228
Slide 32: 4.3 Equity Options
4.3 Equity Options 1H14 2H14 1H15 2H15 1H16 For personal use only Trading days 130 123 130 124 130 Single stock equity options (‘000) 59,170 57,173 58,515 51,031 44,050 Index options (‘000) 3,887 4,362 5,685 5,273 6,201 Total contracts (‘000) 63,057 61,535 64,200 56,304 50,251 Average daily options
Slide 33: 4.3 Futures and OTC Markets
4.3 Futures and OTC Markets 1H14 2H14 1H15 2H15 1H16 For personal use only Trading days 130 126 130 126 130 Total contracts - futures ('000) ASX SPI 200 4,875 4,840 5,171 5,130 5,909 Mini-ASX SPI 200 1 - - - - 10 90 day bank bills 13,453 12,450 13,942 14,764 13,728 3 year bonds 23,486 24,400 24,117
Slide 34: 4.3 Futures and OTC Markets
4.3 Futures and OTC Markets 1H14 2H14 1H15 2H15 1H16 For personal use only Total contracts - options on futures ('000) ASX SPI 200 232 241 313 141 189 3 year bonds 153 263 108 137 137 Overnight 3 year bonds 719 804 496 400 249 Intra-day 3 year bonds 804 723 523 404 329 Other 19 32 39 20 16 Total opt
Slide 35: 4.3 Austraclear
4.3 Austraclear 1H14 2H14 1H15 2H15 1H16 For personal use only Settlement days 130 123 130 124 130 Transactions ('000) Cash transfers 312 288 299 303 300 Fixed interest securities 405 395 379 395 363 Discount securities 84 78 80 77 75 Foreign exchange 11 10 11 11 6 Other 5 5 5 4 2 Total transactions
Slide 36: 4.4 CCP Participant Collateral Balances
4.4 CCP Participant Collateral Balances 1H14 2H14 1H15 2H15 1H16 For personal use only $ Million $ Million $ Million $ Million $ Million Balances at period end ASX Clear – initial margins 432.8 549.8 450.5 673.7 583.5 ASX Clear (Futures) – initial margins House 971.4 849.3 727.3 746.0 853.3 ASX Clea
Slide 37: 5. Free Cash Flow Summary
5. Free Cash Flow Summary 1H14 2H14 1H15 2H15 1H16 $ Million $ Million $ Million $ Million $ Million For personal use only ASX Group cash Total cash and short-term investments 5,071.7 5,015.6 5,027.3 4,879.0 5,356.3 Less participants’ margins and commitments – cash backed (4,033.4) (3,986.1) (3,997.
Slide 38: 6. Capital Attribution
6. Capital Attribution 31 Dec 13 30 Jun 14 31 Dec 14 30 Jun 15 31 Dec 15 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group shareholders’ equity 3,676.2 3,670.9 3,751.9 3,759.7 3,787.2 Goodwill 2,317.6 2,317.6 2,317.6 2,317.6 2,317.6 ASX Clear – default fund contribute
Slide 39: 7. Cash Market Clearing and Settlement Income Statement
7. Cash Market Clearing and Settlement Income Statement Cash Cash Cash Cash For personal use only Market Market Market Market Clearing Clearing Settlement Settlement 1H16 1H15 1H16 1H15 $ Million $ Million $ Million $ Million Operating Revenues 27.3 23.2 24.1 22.8 Operating Expenses 5.7 5.4 6.9 6.6
Slide 40: Thank you
For personal use only Thank you