Asx Limited · ASX:ASX
Asx — H1 FY2005 Earnings Presentation
27 slides from Asx's earnings presentation, Feb 15, 2005
Slide 1: Results: Six months to 31 December 2004
Results Six months to 31 December 2004
Slide 2: Highlights
* Highlights « ASX Business Performance « ASX Financial Performance * Questions Tony D’Aloisio Colin Scully John Hayes
Slide 3: Highlights
Highlights Tony D’Aloisio Managing Director and Chief Executive Officer
Slide 4: ASX Results Summary
ASX Results Summary * Net profit after tax up 18.8% to $50.5 million * Operating revenue up 10.6% to $137.0 million * Expenses up 5.2% to $70.1 million * Capital expenditure remains low at $4.4 million * Cash up 16.8% to $122.4 million ¢ EPS (pre goodwill) up 17.7% to 50.6 cents * Adjacent businesse
Slide 5: Net Profit After Tax and Revenues
= Net Profit After Tax and Revenues Net Profit After Tax Operating Revenue $60 $150 18.8% nee" $40 $100 c Cc 3 2 € € f A $20 . $50 s pe $0 ake ' 2 : : eae r | $0 Seep ee : ZS sl HYO1 HYO2 HYO03 HY04 HYO5 HY01 HYO2 HYO3 HY04 HYO5
Slide 6: ASX Cost to Income Performance
ASX Cost to Income Performance 100.0% 75.0% + 50.0% + 25.0% + 0.0% 86.2% some Cost fo income oom F BIT margin 51.2% "48.8% he 37.3% 38.0% — 36 go, / 0:0% 13.8% FY98 FY99 FY00 FY01 FY02 FY04 FY03
Slide 7: Financial Performance
Financial Performance Earnings Per Share — Dividend Per Share Pre Goodwill $0.00 $0.60 $0.60 B Special dividend O Dividend 7 p $0.40 ta $0.40 LH - | LE a 1 a BS . Rs $0.20 44 4. S| ef $0.20 4 3H i rai | I | co | LS i tt LL $0.00 r = N N vt co) o oO oO co) I<tirzir = - AN 7” N N 1HO4 1H05 E 1HO3 [Fe
Slide 8: Supervision
Supervision Hie ¢ Rigorous ¢ Reviewed 50,414 company announcements ¢ Applied 401 trading halts and 214 suspensions * Reviewed 41,439 trading incidents * Notified ASIC of 51 matters * Policy leadership « ASX Corporate Governance Council
Slide 9: Factors considered in review of capital include
¢ Factors considered in review of capital include: * Regulatory risk capital (to support Clearing House) * Operational capital * Working capital * Balance sheet gearing
Slide 10: National Guarantee Fund
National Guarantee Fund ¢ In principle decision for split * Details in press release and attachments
Slide 11: New Senior Management Structure
D gms, CX oe, arm, G we syitty, ly, se, iy, 4 ee a a7 re Tre New Senior Management Structure ASX Board ASX CEO Group Executive Markets — Colin Scully Group Executive Technology — Jeff Olsson Group Executive Shared Services and CFO — John Hayes Group Executive Strategy — Angus Richards Group Executiv
Slide 12: Review of P&L Drivers
* Review of “P&L Drivers” * Broader review of strategy
Slide 13: Highlights
nts Highl = = (© 1. Financial results excellent 2. New dividend policy — 70% to 90% a In principle agreement on split of NGF 4. Completed successful transition — experienced senior team 5. Well advanced in “P&L Drivers” review and broader review of strategy
Slide 14: ASX Business Performance
ASX Business Performance Colin Scully Deputy Chief Executive Officer
Slide 15: Strong Revenue Growth
Strong Revenue Growth Operating Revenue by category 1H05 Listings ! 25% Market Data 11% Equities : Derivatives 44% 3 15% Total Revenue $137.0m AY Operating Revenue by category 1H04 Other revenue: _ 6% Listings 24% Market Data 12% Equities 42% Derivatives 16% Total Revenue $123.9m
Slide 16: Capital Raised
Capital Raised Se $ billion $20 4 40 | Secondary capital (LHS) fm [PO capital (LHS) mun Market cap (RHS) so HO FY98 FY99 FY0O FYO1 7 FY02 FY03 FY04 4,200 800 i<j & 5 Aca | 400 : Lo w Q x Listings Revenue $60 g 0 $ million $20 4 O Other f2 Subsequent B Initial @ Annual
Slide 17: Market Trading Volumes
Market Trading Volumes an Equities Options 12.0 $8.00 12.0 $2.00 Total contracts (LHS) Total trades (LHS) mn Ayerage fee (RHS) million oman AYerage Fee (RHS) m7 A 10.0 4 : 10.0 4 : — . |} $7.00 y, _ || ft $4.75 ae iy @ Til 8.0 4 ] AL 8.0 + \ 7 ie L hin c S| 5 : + $600 = 604 + $1.50 = : | $5.00 $4.00
Slide 18: ASX Core Business - Results
ASX Core Busine ¢ Continued focus on operational performance ess - Results Oy Cage ae! Record Previous Equity Trades 117,333 108,030 30 Nov 2004 28 Oct 2004 Options Contracts 231,112 170,835 25 Nov 2004 29 Apr 2004 S&P/ASX 200 4050.6 3532.9 31 Dec 2004 30 Jun 2004 Domestic Market AU$991 billion AU$8
Slide 19: ASX Financial Performance
ASX Financial Performance John Hayes Chief Financial Officer
Slide 20: Financial Performance: Operating Revenue
Financial Performance NE Operating Revenue Listings Equities Derivatives Market Data Other Total 6mthsto 6 mths to vs. pep Jun 2004 Dec 2003 24.8 29.3 +19.1% 52.2 53.7 +8.8% 19.4 19.3 +8.3% 14.6 14.6 +7. 5% 6.4 7.0 +1.4% 117.4 123.9 +10.6% All amounts rounded to $m, pcp comparisons between Dec04 and
Slide 21: Financial Performance: Operating Expenses
Financial Performance Operating 6mthsto 6 mths to vs. pep Expenses Jun 2004 Dec 2003 Staff 32.9 32.9 +8.1% Occupancy 9.6 9.9 +6.7% Equipment 14.8 14.7 -4.8% Administration 9.2 9.2 +7.8% Total 66.5 66.7 +5.2% All amounts rounded to $m, pcp comparisons between Dec04 and Dec03 periods
Slide 22: Financial Performance: Operating Result
Financial Performance NE Operating 6mthsto 6 mths to vs. pep Result Jun 2004 Dec 2003 Revenue 117.4 123.9 +10.6% Expenses 66.5 66.7 +5.2% EBIT 50.9 57.2 +17.0% Other 4.5 3.5 +40.0% Tax (15.2) (18.2) +17.0% NPAT 40.2 42.5 +18.8% All amounts rounded to $m, pcp comparisons between Dec04 and Dec03 perio
Slide 23: Performance Indicators
Performance In 100.0% 78.0% 50.0% 25.0% 0.0% Charts include ASX FundConnect write off in 2HO3 x AES Cost to Income Margin wai Gost to income comme EBET margin FY98 FY99 FY01 FY02 FY03 FY04 1HO5 cicators 150 $ million 100 Operating Leverage comme Operating expenses 4 «Operating rev enue $66.9m EBIT
Slide 24: Capital expenditure and D&A
$ million $30 4 $20 + $10 + $0 $33.0 $29.5 Plant & Equipment (LHS) Gama Softw are (LHS) emma D&A (RHS) FY99 FY0O FYO1 FY02 FY03 FY04 1HO5 $40 + $30 + $20 + $10 $0 $ million
Slide 25: ASX-Perpetual Registrars Limited
SX-Perpetual trars Limited 6 mths to Dec 2003S: P&P Revenue 28.3 +0.7% Expenses (19.9) EBITDA 8.4 +3.6% D&A (ex goodwill) (3.8) EBIT 4.6 +2.2% NPAT 1.0 +20.0%
Slide 26: Questions
Questions
Slide 27: ASX Financial Results
ASX Financial Results six months to 31 December 2004 15 February 2005