Iress Limited · ASX:IRE
Iress — Macquarie Connections Australia Conference 2011
32 slides from Iress's conference presentation, May 6, 2011
Slide 1: Macquarie Connections Australia Conference May 2011
Macquarie Conference| May 2011 For personal use only Macquarie Connections Australia Conference May 2011
Slide 2: IRESS 2010 Results
Macquarie Conference| May 2011 IRESS 2010 Results For personal use only • Underlying Group profit $58.4 million (2009: $53.6m, up 8.9%) & excluding Asia $59.7 million up 11%. • Revenue growth softer in second half in line with market conditions. • Group (ex Asia) saw Revenue up 5.7% and EBITDA up 6.
Slide 3: Segment Performance Against Prior Half
Macquarie Conference| May 2011 Segment Performance Against Prior Half For personal use only Financial Markets Wealth Management Aust & NZ Aust & NZ • Op Rev up 5.6% (up 5.5% on PY) • Op Rev up 5.5% (up 6.0% on PY) • EBITDA up 5.8% (up 4.0% on PY) • EBITDA up 6.5% (up 10.1% on PY) • PAT up 7.9% (up 9
Slide 4: Group Performance Against Prior Year
Macquarie Conference| May 2011 Group Performance Against Prior Year For personal use only • Adjusted Group Profit $58.413 m Up $4.782 m, 8.9% on prior year • Segment Contribution against prior year $A % • Financial Markets Aust/NZ 3.449 72 • Financial Markets Canada 0.885 18 • Wealth Management Aust
Slide 5: EBITDA Margins
Macquarie Conference| May 2011 EBITDA Margins For personal use only EBITDA M argin:% Revenue per H1 H2 H1 H2 M edia Release 2009 2009 2010 2010 2008 2009 2010 Aust 56.8% 57.5% 56.3% 56.4% 55.3% 57.2% 56.3% Fin Mkts Can (CAD) 29.2% 34.1% 33.6% 33.3% 23.9% 31.7% 33.5% Aust 40.5% 41.5% 42.4% 42.8% 38.8
Slide 6: Operating Cashflow per share
Macquarie Conference| May 2011 Operating Cashflow per share* For personal use only Cash generation from the business continues to be very strong $0.70 $0.60 $0.50 $0.40 H2 $0.30 H1 $0.20 $0.10 $0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 * Calculated as Net Cash from Operations ÷ No shares on
Slide 7: IRESS Group Outlook
Macquarie Conference| May 2011 For personal use only IRESS Group Outlook • Trading into H1 2011 • Flat momentum from H2 2010. • Flat aggregate experience over course of H1. • Noticeable increase in demand for technology solutions and project activity. • Outlook • Revenue growth retains flatter profi
Slide 8: Daily Trades on the ASX
Macquarie Conference| May 2011 Daily Trades on the ASX For personal use only 800 700 600 500 400 300 200 100 0 Number of Trades Value of Trades Up to April 2011 8
Slide 9: Financial Markets – Australia & NZ
Macquarie Conference| May 2011 For personal use only Financial Markets – Australia & NZ • Solid H2 2010 result from first half momentum and modest price increase: • Revenue increased 5.6% on H1 2010 • EBITDA increased 5.8% on H1 2010 • Net revenue growth softer later in 2010: • Server-based products
Slide 10: Financial Markets – 2010
Macquarie Conference| May 2011 Financial Markets – 2010 For personal use only • IOS+ in growing demand ahead of multi-markets • IOS+ institutional demand heightened. Numerous projects underway at various stages. • Operator Trading Workstation (OTW) with BMR in production for key clients to deliver s
Slide 11: Financial Markets – Multi-markets
Macquarie Conference| May 2011 For personal use only Financial Markets – Multi-markets • Regulatory update • Market Integrity Rules now released. • Chi-X license granted. • Multi-markets • Chi-X - testing and connectivity underway. Conformance Q3. Expect launch Q4. • ASX Pure (top 200 ultra low-late
Slide 12: Australia Financial Markets – Monthly Subscription Revenue
Macquarie Conference| May 2011 Australia Financial Markets – Monthly Subscription For personal use only Revenue 7.0 6.5 6.0 5.5 $A Millions 5.0 4.5 4.0 3.5 3.0 2.5 2005 2006 2007 2008 2009 2010 2011 Up to April 2011 12
Slide 13: Australia Financial Markets - Outlook
Macquarie Conference| May 2011 For personal use only Australia Financial Markets - Outlook • 2011 outlook: • Revenue growth in early months has maintained flatter profile of H2 2010. • Unprecedented level of client/project activity places strategic value on delivery despite broader market climate. •
Slide 14: Canada - Overview
Macquarie Conference| May 2011 For personal use only Canada - Overview • Solid yet moderated result for 2010 compared to recent years. • Results flat on prior half: • Revenue flat on H1 2010 at 11.103m (CAD) • EBITDA flat on H1 2010 to 3.701m (CAD) • Contrasting result by halves, with many positive
Slide 15: Canada – 2010
Macquarie Conference| May 2011 For personal use only Canada – 2010 • Institutional order management project • Continuing rollout and secondary phases at large bank-owned dealer. • Institutional rollout now extending to small and mid-sized firms. • Incorporates post trade automation across varying cl
Slide 16: Canada – 2010
Macquarie Conference| May 2011 For personal use only Canada – 2010 • Buyside IOS (EMS) presence now in 60+ buyside firms. Broker-neutral professional market data and trading desktop genuine appeal. • Market data • Significant enhancements to consolidated market data with liquidity fragmentation and
Slide 17: Canada – Monthly Subscription Revenue
Macquarie Conference| May 2011 Canada – Monthly Subscription Revenue* For personal use only 1.6 CAD$ Millions 1.2 Pre-IRESS full production 0.8 level offering 0.4 2005 2006 2007 2008 2009 2010 2011 *Assumes 100% ownership Up to April 2011 17
Slide 18: Canada - Outlook
Macquarie Conference| May 2011 For personal use only Canada - Outlook • 2011 outlook • While stabilising toward end of H2 2010, flat-negative momentum will flow through to results in 2011. • Together with a number of new client projects in delivery and rollout phase, business will be targeting posit
Slide 19: Daily trades in Canada
Macquarie Conference| May 2011 Daily trades in Canada* For personal use only 1,200 Alpha commenced H2'08 1,000 Chi-X commenced Common Base from 2005 H1'08 800 TriAct & Omega 600 commenced H2'07 Pure Market 400 commenced H1'07 200 - Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 TSX Value of trades
Slide 20: Average Daily Trades
Macquarie Conference| May 2011 Average Daily Trades For personal use only 2.5 0.06 2.0 0.29 0.26 1.5 Millions 1.0 1.50 0.5 0.63 0.0 CAN AUS TSX CHI-X ALPHA PURE ASX Measured over 8 weeks to 21 April 2011 20
Slide 21: Comparative Message Rates
Macquarie Conference| May 2011 Comparative Message Rates (per trade per destination) For personal use only 160 140 120 100 80 139 124 132 60 40 20 28 7 - TSX CHI-X ALPHA PURE ASX CANADA AUS Measured over 8 weeks to 21 April 2011 21
Slide 22: Financial Markets – Asia
Macquarie Conference| May 2011 For personal use only Financial Markets – Asia • Investment in Asian expansion continues to progress well: • Skilled local staff in place. • Seed client opportunity now established. • Now in delivery phase with major Singaporean bank. • Other key points: • Market data
Slide 23: South Africa - Acquisition Overview
Macquarie Conference| May 2011 South Africa - Acquisition Overview For personal use only IRESS acquired 100% equity in Peresys (Pty) Ltd – 20 January 2011. Peresys is the leading financial markets technology provider in South Africa (est.1996). Purchase price of ZAR 340.5m, plus expected ZAR 3
Slide 24: Indicative South Africa Financials
Macquarie Conference| May 2011 Indicative South Africa Financials For personal use only Annualised figures for 9 months Acquisition Accounting to Dec 2010 AUDm • Expected Purchase price: ZAR 375m Info Revenue >15.5 (~AUD 56.1m) + transaction costs EBITDA Low 6.0‟s • Anticipate bulk of the transactio
Slide 25: Product Initiatives
Macquarie Conference| May 2011 For personal use only Product Initiatives • Unique opportunity to combine product sets. • Immediate opportunities to leverage IRESS product suite to meet immediate opportunities • Localisation and implementation progressing well: • Centralised IRESS infrastructure and
Slide 26: Wealth Management
Macquarie Conference| May 2011 For personal use only Wealth Management • Australia & New Zealand • Resilient result with revenue up 5.5% and EBITDA up 6.5% on H1 2010 • Positive momentum from new and organic opportunities in the first and second halves, with modest price increase in October, exceede
Slide 27: Wealth Management - 2010
Macquarie Conference| May 2011 For personal use only Wealth Management - 2010 • IRESS appointed as Count Financial‟s strategic software provider. Implementation on track and will run course of 2011. Significant productivity enhancements. • Remaining VisiPlan clients actively engaged on upgrade to XP
Slide 28: Wealth Management - 2010
Macquarie Conference| May 2011 For personal use only Wealth Management - 2010 • Increased demand and attention to web/mobile/tablet interactions for distributed advice networks and client interaction. • XPLAN 2.0 now released - delivering leading design and user-experience redevelopment. • Industry
Slide 29: Wealth Management – Asia
Macquarie Conference| May 2011 For personal use only Wealth Management – Asia • Investment in Asian expansion continues to progress well: • Core product capability for initial requirements and technology migration established. • Business development boosted and regional awareness growing. • Several
Slide 30: Wealth Management – Aust & NZ Monthly Subscription Revenue
Macquarie Conference| May 2011 Wealth Management – Aust & NZ Mthly Subscription Rev For personal use only 4.0 3.0 $A Millions 2.0 1.0 0.0 2005 2006 2007 2008 2009 2010 2011 Up to April 2011 30
Slide 31: Wealth Management Outlook
Macquarie Conference| May 2011 For personal use only Wealth Management Outlook • Australia & New Zealand • Positive momentum from previous half will flow through to 2011 results, despite a flatter profile in aggregate in H1. • These conditions with known revenue opportunities, combined with the annu
Slide 32: For personal use only
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