Slide 1: Financial Results Full Year ended 30 June 2004
Financial Results Full Year ended 30 June 2004 Richard Humphry A 4 Managing Director & CEO AUSTRALIAN STOCK EXCHANGE 28 July 2004
Slide 2: Results summary
esults summary * Net profit after tax up 43.2% to $82.7 million * Operating revenue up 16.6% to $241.2 million * Expenses up 0.6% to $133.1 million ¢ EBIT up 45.3% to $108.1 million * Capex $9.9 million (and even with new trading system, is likely to be at lower end of $10-15 million target) * Total
Slide 3: Operating revenue and Profit after tax
Operating revenue Profit after tax mFyY01 FY02 @ FY03 FY04 @FY01 O FY02 @ FY03 FyY04 $250 $90 & $241.2 & $82.7 $200 $75 $60 $150 $45 $100 $30 $50 $15 $0 $0 9mths 12 mths 3mths 6 mths 9 mths 12 mths ASK
Slide 4: Performance
Performance > EBIT and EBITDA $70 $50 EBIT @ EBITDA Fy00 FY01 FY02 FY03 cato rs rs Cost to income 100% 80% - 60% | 40% - 20% - 0% 78.2% 612% 28% 62.0% 64.0% a ine 55.2% 44.8% 38.8% 38.09 ° ’ 37.2% 0% — 36.0% 21.8% 1999 2000 2001 2002 2003 2004 ~Costto income —+— EBIT to income | ASK
Slide 5: Revenues FY04 and Expenses FY04
i Revenues FY04 Other revenue 6% Listings Market Data 12% 22% Derivatives 16% ee Equities 44% *% expenses by category Expenses FY04 Admin 14% Staff Equipment 49% 22% Occupancy 15% ASX ce IER EAC
Slide 6: Core business drivers
A Core busi Hm Listings revenue $60 $50 $40 $30 $20 $10 $0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 ness drivers Market capital raisings $30 IPO capital @ Secondary capital ~~] $billion $25 $20 $15 1 $10 $5 $0
Slide 7: Core business drivers: A healthy and growing market
B Core business drivers A healthy and growing market $ billion Avg mkt cap (LHS) === Liquidity (RHS) FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04
Slide 8: Core business drivers: New listings
& lao New listings 200 160 120 Hm ine $71,378 $68,948 wu BY i, S Qrivers 1 Num ber of new listings Avg initial listing fee $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 1,650 1,550 1,450 1,350 1,250 Total listings Total listings <@Avg annual listing fee $16,000 $15,000 $14,067 $14,000 $13,000 1,38
Slide 9: Core business drivers
B & % 1, e a % if Core business drivers Equities trades (million) Options contracts (million) 20 @ 1HFY @ 2HFY & FY 20 ——______ 9) 1HFY @ 2HFY O FY 16 12 Fy98 FY99 FY00 FY01 FY02 FY03 FY04 Fy98 FY99 FY00 FY01 FY02 FY03 FY04 7-year compound growth of 15.7% in equities, 12.5% in options
Slide 10: Financial result analysis
Financial result analysis John Hayes Chief Financial Officer
Slide 11: Financial summary
3S Financial s 12mths 12 mths $ millions toJune toJune vs. pcp 2003 2002 Revenue 206.8 205.1 +16.6% Expenses 132.4° 127.1 +0.6% EBIT 74.4 78.0 +45.3% Interest & Divds 8.0 5.3 +13.8% ASX Perpetual (1.7) (0.5) +76.5% Tax (22.4) (23.4) +48.8% Outside Equity Int (0.4) (0.1) +28.8% Net profit 57.8 59.1 +
Slide 12: Revenue
venue ($million) Listings Equities Derivatives Market Data Other Total 12 mths to June vs. pcp 2002 37.0 +39.1% 91.5 +17.4% 38.3 +0.6% 28.8 +5.9% 9.4 +14.1% 205.1 +16.6% ASX ce IER EAC
Slide 13: Expenses
($million) Staff Occupancy Equipment Administration Total 12 mths 12 mths to June ‘to June vs. pcp 2003 2002 63.6 61.9 +3.5% 16.4 17.5 +18.5% 35.7 30.7 -17.5% 16.6 17.1 +10.5% 132.4* 127.2 +0.6% *Includes FundConnect ASX ce IER EAC
Slide 14: Summary of ASX cost changes
Y03 Summary of ASX cost changes 140 = 135 16 08 133-4 & 0.9 || == = 1.3 [| m= 130 TA E 2730 Ft 125 4 120 : Costs excl Costs Fixed Non Costs Other Total Fundconnect Associated Increases Recurring Providing with Cosis a Future increased Benefit Activity ASX ce IER EAC
Slide 15: Expenditure control
enciture control Depreciation > capex, again Maintain reliability c $38 [=Total Capex | * Disciplined approach with = $30 ——DeA — continual reinvestment in $25 core business $20 * Click XT is the key initiative $15 ¢ Investment in facilities is attracting clients to our secure operational support se
Slide 16: ASX Perpetual turnaround performance
$million ASX Perpetual | Turnaround performance $60 $50 $40 $30 $20 $10 $0 -$10 @ Revenue @ EBITDA FY01 FY02 FY03 FY04 * ASX is committed to a competitive registry market ¢ Pitcher Partners acquisition adds 100 clients, 500k shareholder accounts * Repayment of shareholders loans - $3m in principal,
Slide 17: Key business initiatives
Key business initiatives Richard Humphry Managing Director & CEO
Slide 18: Market data
arket data Revenue trends — 5 years $35,000 ssam73 * An encouraging turnaround $32,000 * Strong year for data services and $30,080 sos7s $29,218 new products including $29,000 : ComNews * Re-engineering and new product development work continues $26,000 $23,000 * Savings being reinvested into infras
Slide 19: Adoption of OM Click XT
¢ Adoption of OM Click XT — $9.6 million capex — Balance of cost relates to initial work, retention and redundancy payments — Opportunity for rationalisation of infrastructure — Improved access for participants here and abroad ¢ New surveillance system — $1.0 million capitalised expense in 2003-04 A
Slide 20: Derivatives strategy
Derivatives strategy A key focus for the business * Organic growth ¢ CAGR over 7 years: 15.7% equities, 12.5% options ¢ Product initiatives ¢« Grain futures ¢ Wool futures ¢ Launched ASX/S&P Buy-Write index ¢ Targeting institutional investors for growth ASX...
Slide 21: Clearing Support and Investor Protection funds
Clearing Support (second tranche, Clearing Support (first if capped) tranche) $28 million $77 million N Investor Protection $80 million -—_(if uncapped) $52 million (if capped) Total available for allocation: $157 million (30 June 2004) ASK
Slide 22: Succession and transition
@ Succession and transition Target handover by November 2004 New CEO is already: — Participating in Board meetings — Consulted on all key decisions Strong focus on business continuity Colin Scully appointed Deputy CEO from 1 July Board strategy meeting in November Organisation emphasis on organic in
Slide 23: Australian Stock Exchange
AUSTRALIAN STOCK EXCHANGE