Slide 1: ASX Limited 2009 Half-Year Results
For personal use only ASX Limited 2009 Half-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO 17 February 2009 Sydney, Australia
Slide 2: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about ASX’s activities current as at the date of this presentation (17 February 2009). It is provided in summary and does not purport to be complete. You should not rely upon it as advic
Slide 3: Important Notes
Important Notes For personal use only The financial statistics, including comparables, in this report are based on ASX’s pro-forma income statement which itself is not audited, but is based upon externally reviewed accounts. There have been no material changes to accounting policies during the perio
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Financial and Operational Highlights Alan Bardwell • Outlook and Post Balance Date Activity Robert Elstone • Questions
Slide 5: Introduction
For personal use only Introduction Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights – Six Months to December 2008 (1H09)
Financial Highlights – Six Months to 31 December 2008 (1H09) For personal use only • Operating revenue excluding interest and dividends of $286.3 million, down 9.0% • Cash operating expenses of $70.1 million, up 2.8% • Normal profit after tax of $171.9 million, down 8.2% • Normal earnings per share
Slide 7: Australian Equity and Interest Rate Market Volatility
Australian Equity and Interest Rate Market Volatility For personal use only 3.0% 3.0% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 90 Day Bank Bill Rate All Ordinaries Index • Average absolute daily percentag
Slide 8: Business Highlights – Six Months to December 2008
Business Highlights – Six Months to 31 December 2008 For personal use only • Robust performance by the ASX group in light of market conditions including reduced activity levels and global deleveraging • Cash market traded value down 25%, derivatives volumes down 27% • Strong secondary capital raisin
Slide 9: ASX Financial and Operational Highlights
For personal use only ASX Financial and Operational Highlights Alan Bardwell Chief Financial Officer
Slide 10: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only 1H09 1H08 Variance Variance $ million $ million $ million % Operating Revenue 286.3 314.7 (28.4) (9.0%) Cash Operating Expenses 70.1 68.2 (1.9) (2.8%) EBITDA 216.2 246.4 (30.2) (12.3%) Depreciation and Amortisation 7.2 7.3 0.1 1.3% EBIT
Slide 11: Revenue Highlights – Six Months to December 2008
Revenue Highlights – Six Months to 31 December 2008 For personal use only 1H09 $55.9m $89.3m $70.1m $37.0m $14.4m $11.8m $7.9m Revenue Change 16% 7% 16% 11% 9% 7% 30% From 1H08 (pcp) $350 314.7 (10.7) (7.0) (12.9) 3.6 1.2 0.7 (3.3) 286.3 $340 $330 $320 $310 $300 $290 $280 $270 $260 $250 $240 $230 $2
Slide 12: Market Activity - Listings
Market Activity - Listings For personal use only $ billion $ trillion 50.00 1.80 45.00 1.60 40.00 1.40 35.00 1.20 30.00 1.00 25.00 0.80 20.00 0.60 15.00 10.00 0.40 5.00 0.20 0.00 0.00 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 Secondary Capital (LHS) IPO Capital (LHS) Dom Mkt Cap (RHS) •
Slide 13: Cash Market Revenue Composition
Cash Market Revenue Composition For personal use only LPR (2%) % 1H09 1H08 Change Trading $29.5m $38.9m (24%) Clearing $24.5m $32.1m (24%) Trading 34% Settlement $36.7m $44.9m (18%) Se ttle me nt 40% Gross Cash $90.7m $116.0m (22%) Market Net Cash $89.3m $ 96.3m (7%) Cle aring 28% Market
Slide 14: Market Activity – Cash Market
Market Activity – Cash Market For personal use only ASX Cash Market – Volume ASX Cash Market – Value Trades million $ fee per trade $ billion traded BPS 60 6 900 1.80 800 1.60 50 5 700 1.40 40 4 600 1.20 500 1.00 30 3 400 0.80 20 2 300 0.60 200 0.40 10 1 100 0.20 0 0 0 0.00 1H04 2H04 1H05 2H05 1H06
Slide 15: Market Activity – Derivatives
Market Activity – Derivatives For personal use only Derivatives Volume & Average Fee Contracts $ fe e (m illion) 70.0 ASX Derivatives Volume (m) (LHS) 1.80 • ASX derivatives volumes traded were SFE Derivatives Volume (m) (LHS) SFE Derivatives Avg Fee (RHS) 9.8 million in 1H09 (down 22.9% on ASX Deri
Slide 16: Financial Performance – Expenses
Financial Performance – Expenses For personal use only 1H09 1H08 Variance Variance Expenses $ million $ million $ million % Staff Expenses 41.6 38.0 (3.6) (9.5%) Occupancy Expenses 6.5 6.7 0.2 2.8% Equipment Expenses 11.0 11.7 0.7 6.0% Administration Expenses 8.4 8.5 0.1 1.2% Variable Expenses 2.6 3
Slide 17: Interest and Dividend Income 1H09
Interest and Dividend Income 1H09 For personal use only Monthly Cash Margins $ billion 8.0 Average SFECC Initial Margins Average SFECC Excess Margins 7.0 Average SFECC Additional Initial Margins 1H09 1H08 Average ACH Initial Margins 6.0 Total Ave Margins Interest Income $14.0m $14.5m 5.0 Net Interes
Slide 18: Capital Structure and Management
Capital Structure and Management For personal use only • Dividend policy – 90% of Normal NPAT, fully franked • Interim dividend – 90.4 cps • Adequate capital held as surplus over risk requirement • ASXCC debt raising planned for FY10 Capital Return Special Dividend 250.0 Final Dividend Cents per Int
Slide 19: Outlook and Post Balance Date
For personal use only Outlook and Post Balance Date Robert Elstone Managing Director and CEO
Slide 20: Post Balance Date – Market Events and Activity Levels
Post Balance Date – Market Events and Activity Levels For personal use only • January 09 trading activity low compared to January 08 • First fortnight of February 09 showing improvement • Cash markets average daily traded value $3.4 billion (up 19% on Jan 09) • SFE derivatives average daily volume 2
Slide 21: Outlook – Business Initiatives
Outlook – Business Initiatives For personal use only • New product launches and development • Large order execution (VolumeMatch and CentrePoint) • Energy product expansion (Coal, Gas, NZ Electricity and RECs) • Carbon as soon as ETS legislation is finalised • Enhanced technology • Futures platform
Slide 22: Questions
For personal use only Questions
Slide 23: ASX Limited 2009 Half-Year Results
For personal use only ASX Limited 2009 Half-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO 17 February 2009 Sydney, Australia