Iress Limited · ASX:IRE
Iress — UBS Australian Emerging Companies Conference 2008
29 slides from Iress's conference presentation, Oct 23, 2008
Slide 1: UBS Australian Emerging Companies Conference October 2008
For personal use only UBS Australian Emerging Companies Conference October 2008
Slide 2: IRESS H1'08 Results
IRESS H1’08 Results For personal use only Î Adjusted Group profit $23.3 million (H2’07: $20.8m), up 12% Î Wealth Management consolidation consolidation, growth & acquisition Î Canadian revenue growth of >30% over H2’07 & EBITDA C$1.778 up from breakeven H2’07 Î Reported Group profit $18 $18.1 1 mill
Slide 3: Segment Performance Against Prior Half
Segment Performance Against Prior Half For personal use only Information Services Wealth Management Î Aust & NZ Î Aust & NZ * Op Rev up 5.3% (up 14.5% on PCP) Op Rev up 7.2% (up 63.8% on PCP) EBITDA up 7.5% (up 13.5% on PCP) EBITDA up 14.9% (up 59.5% on PCP) PAT up 6.0% (up 10.8% on PCP) PAT up 19.4
Slide 4: Review of Group Recurring Subscription Revenue
Review of Group Recurring Subscription Revenue For personal use only 70 60 $A Millions s 50 40 $ 30 20 10 0 H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 Aust Equities Canada Equities Wealth Mgt Aust Wealth Mgt RSA 4
Slide 5: Review of Group EBITDA
Review of Group EBITDA* For personal use only 40 $A Millions s 35 30 $ 25 20 15 10 5 0 H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 -5 Aust Equities Canada Equities Wealth Mgt Aust Wealth Mgt RSA *Defintion of EBITDA as per IRESS Media Release 5
Slide 6: Relative Impact H1'08
Relative Impact H1’08 For personal use only 100% 80% 60% 40% 20% 0% Revenue EBITDA Total Direct Staff Total Strategic (Recurring Subs) Costs Charges Aust Equities Canada Equities Wealth Mgt Aust Wealth Mgt RSA *Defintion of EBITDA as per IRESS Media Release 6
Slide 7: Australian Equities – Revenue Conditions
Australian Equities q – Revenue Conditions For personal use only Î Since March this year: Normal organic growth from some existing clients Limited new client opportunities Significant downsizing and cost cutting No material increase in competitor activity Î Price increase in July this year h
Slide 8: Change in Aust Equities Revenue
Ch Change in i Aust A t Equities E iti R Revenue For personal use only 4.0 3.5 ons 30 3.0 $A Millio 2.5 2.0 1.5 1.0 0.5 - H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 (0 5) (0.5) IRESS + Services Trading Services Hardware/DR Other News, Royalty & Comms 8
Slide 9: Aust Equities – Monthly Subscription Revenue
A tE Aust Equities iti – Monthly M thl Subscription S b i ti Revenue R For personal use only 9
Slide 10: IRESS Desktop Monthly $ Gross Cancellations
IRESS Desktop Mthly $ Gross Cancellations For personal use only
Slide 11: Australian Equities – Margin Analysis
Australian Equities – Margin Analysis For personal use only % Revenue per Media Release H1 2007 H2 2007 H1 2008 2005 2006 2007 Licence Fee Revenue 71.9% 71.8% 71.9% 71.8% 71.9% 71.9% Other Rev (News / Roy. / Comms) 28.1% 28.2% 28.1% 28.2% 28.1% 28.1% Gross Profit 77.4% 77.5% 77.3% 76.7% 77.3% 77.4%
Slide 12: Market Penetration
Market Penetration For personal use only Î All of the top 10 Institutional brokers use IRESS FIX Î All of the top 20 brokers use IRESS as their primary ASX market data screen Î 18 out of the top 20 brokers have at least one IOS system in use Î 18 (19?) out of the top 20 full service Retail brokers h
Slide 13: WebIRESS growth
WebIRESS growth g For personal use only Î WebIRESS with Asian market data and trading launched Now live in Singapore with key broker client who is white labelling t 500+ users to Malaysian broker live internally and releasing services to clients early y 2009 Work well advanced to offer many As
Slide 14: IRESS Portfolio System (IPS)
IRESS Portfolio System (IPS) For personal use only Î Multi M lti assett class, l multi-currency lti portfolio tf li and d ttax system t Î Unique offering of integrated reporting and asset management for new generation managed account platforms Î Fully integrated with XPLAN and ITN for data feed diss
Slide 15: Australian Equities – Goals into 2009
Australian Equities – Goals into 2009 For personal use only Î Continue roll out of FIX+ & IOS+ high speed DMA combination Î Further penetrate trading terminal market with OTW / IOS+ Î IPS IMA / SMA Solution rolled out to more clients and leveraging fund manager community Î Fully implement webIRESS a
Slide 16: Australian Equities Outlook
Australian Equities Outlook For personal use only Î H2 2008 growth should be acceptable (low end of recent range) due to price increase plus modest organic growth. Î Basis B i current trading di performance f iis maintained i i d suggests a fl flat H1 2009 revenue result. Î In the medium term revenu
Slide 17: Canada - Overview
Canada - Overview For personal use only Î Meeting the challenges: CX and KTA conversions are now completed. We continue to focus on client service and satisfaction. TSX Volumes have exploded. Recent peak of 54m messages against 12m a year ago Launch of Alpha on Nov 7th key industry event Î Rev
Slide 18: Canada Business - Highlights
C Canada d BBusiness i - Highlights Hi hli ht For personal use only Î KTA customers conversions to KTA+ (IRESS technology) completed in April p 2008. KTA infrastructure shut down. Î Second “blue chip” data centre brought online Î 40 out of top 50 Canadian brokers now have at least one IOS system in
Slide 19: Canada Longer Term Outlook
Canada Longer g Term Outlook For personal use only Î Current product set includes: Trading terminals for Canadian equities and options Retail order flow management (including US FX tools) Institutional order management and compliance FIX connectivity Limited market data around OMS solution
Slide 20: Canada – Monthly Subscription Revenue
Canada – Monthly Subscription Revenue* For personal use only Pre-IRESS full production level offering *A Assumes 100% ownership hi 20
Slide 21: Wealth Management - Revenue
Wealth Management - Revenue For personal use only Î Major part of the group contributing on an annualised basis 27% of revenue (and 21% of EBITDA) Î Aus/NZ revenue run rate : around $40m pa Î South African revenue run rate over $5m pa – H1 2008 reflects combination of growth in underlying recurring,
Slide 22: Wealth Management - Acquisitions
Wealth Management g - Acquisitions q For personal use only Î TransActive Leading provider of mortgage analytics in broker market with opportunity for STP of loan applications Compliments advice platform to dealer groups groups. Strong interest Î DMS R Remuneration ti managementt software ft ff
Slide 23: Wealth Management - Position & Product initiatives
Wealth Management - Position & Product initiatives For personal use only Î Clear industry leader in Australia, New Zealand & South Africa Î Distribution scale unmatched and provides opportunity and capacity to invest further in functionality, content and connectivity Î New modules for debt & eApplic
Slide 24: Wealth Management – Australia & NZ Monthly Subscription Revenue
Wealth Management – Australia & NZ Mthly Subscription Revenue For personal use only Acquisition of VisiPlan business in Apl’07 Acquisition of PlanTech business in Sept’06 24
Slide 25: Wealth Mgt – Aust & NZ Margin Analysis
Wealth Mgt – Aust & NZ Margin Analysis For personal use only % Revenue per Media Release H1 2007 H2 2007 H1 2008 2005 2006 2007 Licence Fee Revenue 97.6% 97.5% 97.3% 97.4% 96.9% 97.5% Oth Rev Other R (News (N /R Roy. / C Comms)) 2 4% 2.4% 2 5% 2.5% 2 7% 2.7% 2 6% 2.6% 3 1% 3.1% 2 5% 2.5% Gross Profi
Slide 26: Wealth Management - South Africa
Wealth Management - South Africa For personal use only Î Spotlight is the leading provider in South Africa with a large installed user base (16 (16,000) 000) and strong established client relationships relationships. Î Spotlight continues to provide client support and development locally, incorporat
Slide 27: Review of Group Opex
Review of Group p Opex p For personal use only 12 Canada Equities (Assumes 100% Ownership) Aust Equities 5 10 4 8 3 6 $Am C AD m 2 4 2 1 0 0 H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 H1'03 H1'04 H1'05 H1'06 H1'07 H1'08 Total Direct Staff Costs (inc AL) Other E'ee Related Expenses Hardware & Software Occup
Slide 28: Breakdown of Opex H1'08
Breakdown of Opex H1’08 Canada Equities For personal use only Aust Equities 1% 6% 5% 0% 4% 3% 2% 8% 3% 8% 76% 84% Total Direct Staff Costs (inc AL) Other Employee Related Expenses Hardware & Software Expenses Occupancy Expenses General Administration Expenses Comms & Other Wealth Mgt Aust Wealth Mgt
Slide 29: For personal use only
MARKET TECHNOLOGY A.B.N. 47 060 313 359
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