Iress Limited · ASX:IRE
Iress — IRESS Market Technology — FY2004 Earnings Presentation
16 slides from Iress's earnings presentation, Feb 21, 2005
Slide 1: 2004 Full Year Results — Investor Presentation (ASX lodgement letter)
21 February 2005 @ fr MARKET TECHNOLOGY The Manager Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam 2004 Full Year Results — Investor Presentation Please find attached a copy of an investor presentation on the C
Slide 2: Results Presentation Year ended 31 December 2004
Results Presentation Year ended 31 December 2004 ress MARKET TECHNOLOGY February 2005
Slide 3: Group Performance Against Prior Half
MARKET TECHNOLOGY Group Performance Against Prior Half Adjusted Group Profit $20.852 million Up $3.691 million and 21.5% Segment Contribution 2>Information Services Contribution $2.721 74% >XPLAN Contribution $0.566 15% >Canada JV $0.404_ 11% $3.691 100% Final dividend 10.0 cents, fully franked (200
Slide 4: Segment Performance Against Prior Half
MARKET TECHNOLOGY Segment Performance Against Prior Half > Information Services 15.0% increase in profit > Financial Planning 59.5% reduction in loss > Canadian JV $0.404m part year contribution > Strategic Amortisation >XPLAN (a) $2.077m (of $11.034m total) >Canadian JV $2.717m (of $6.082m total) >
Slide 5: Group Subscription Revenue
MARKET TECHNOLOGY Review of Group Subscription Rev $m Group Subscription Revenue (exl. News, Royalties & Comms) 26.0 24.0 22.0 20.0 18.0 16.0 14.0 12.0 H101 H201 H102 H202 H103 H203 H104 H204
Slide 6: Operations and Outlook
MARKET TECHNOLOGY Review of Operations and Outlook > Info & Trading Systems > Sustained and consistent growth across the board in core information and trading products > Upturn in financial markets proving resilient despite extended duration. High volumes drive demand for automated solutions. > Comp
Slide 7: Info & Trading services Revenue
MARKET TECHNOLOGY Review of Info & Trading services Rev. 18.0 16.0 14.0 12.0 10.0 lress Subscription Revenue H1-01 to H2-04 kess+ Trading Hardware/DR Other News, Royalty Services Services & Comms
Slide 8: Info & Trading services Revenue
MARKET TECHNOLOGY Review of Info & Trading services Rev. lress Subscription Revenue H1-01 to H2-04 Subsciption Revenue excl. News, Royalty & Comms royalties etc
Slide 9: Core Business Initiatives 2004/05
MARKET TECHNOLOGY Core Business Initiatives 2004/05 > FSRA compliant retail IOS system implemented and fully operational. More retail broker prospects in the pipeline. > ETC’s moved into full production in December generating $20k+ revenues. Initial clients on the buy side range from small boutiques
Slide 10: Core Business Initiatives (cont)
MARKET TECHNOLOGY Core Business Initiatives (cont) > Retail portfolio system (IPS) successfully implemented at key broker client, more clients now in the pipeline. A common component with XPLAN and a key strategic product for the growing IMA opportunity. > Contracts for Difference (CFDs) successfull
Slide 11: Operations and Outlook: Financial Planning (XPLAN)
MARKET TECHNOLOGY Review of Operations and Outlook > Financial Planing (XPLAN) > Strong growth (averaged $17.6k pcm growth in recurring subscription revenue over the year); > Staff grown to 26, with all growth in client support area to ensure service levels for the expanding customer base preserved.
Slide 12: Operations and Outlook: Canadian Joint Venture
MARKET TECHNOLOGY Review of Operations and Outlook > Canadian Joint Venture > vu Existing operating business {KTG) running well; recurring subscription revenue up since acquisition EBITDA of $0.494 — includes all software development costs; initial goal of live beta clients for market data and |OS a
Slide 13: General Comments
MARKET TECHNOLOGY General Comments > Policy remains for full year dividend payout ratio around 80% of adjusted results. > Current free cash approximately $12.5 million. The high dividend payout continues to moderates further build up. > The company remains open to acquisition and joint venture oppor
Slide 14: Headcount
MARKET TECHNOLOGY Headcount Headcount (FTE) 31-Dec-61 30-Jun-02 31-Dec-02 30-Jun-03 31-Dec-03 30-Jun-04 31-Dac-(4 [a Info Services Il Financial Planning 0 Canada Staff related costs are our largest operating expense. Headcount growth is primarily in Financial Planning and Canada Ops.
Slide 15: Dividend History
MARKET TECHNOLOGY Dividend History Year Ended Adjusted PAT ($m) 15.867 17.161 20.852 EPS $ 0.157 $ 0.167 $ 0.196 DPS $ 0.102 $ 0.125 $ 0.155 Payout Ratio 65.0% 74.9% 79.2% Retained Earnings ($m) 8,009 10,847 10,724 Franking Credits ($m) 5,832 6,666 6,985 Retained Earnings and Franking Credit balance
Slide 16: ARKET TECHNOLOGY
ARKET TECHNOLOGY mess MARKET TECHNOLOGY
IRESS Market Technology — FY2004 Earnings Presentation on 6ix