Slide 1: 2017 Half Year Results
2017 Half Year Results For the six months ended 30 June 2017 17 August 2017 iress.com 1
Slide 2: Presentation overview
Presentation overview 1 H17 overview 2 Financial information Andrew Walsh Managing Director & CEO 3 Delivery on strategy 4 Segment overview John Harris CFO 5 Q&A iress.com 2
Slide 3: HY17 Overview
HY17 Overview. iress.com 3
Slide 4: Key project focus, acquisitions contributing
HY17 OVERVIEW Key project focus, acquisitions contributing $AUDm 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Operating Revenue 194.3 195.4 211.8 9% 8% Constant currency basis (3) 185.5 195.4 211.7 14% 8% Segment Profit (1) 63.1 60.4 59.6 6% 1% Constant currency basis (3) 61.2 60.4 59.3 3% 2% Segm
Slide 5: Key business highlights
HY17 Overview Key business highlights Strong progress • Deployment to CBA on XPLAN and XPLAN Prime; conversion of Prime client pipeline commenced. on key client • ViewPoint roll out commenced in Australia with successful delivery to nabtrade. product milestones and • Successful rollout of IRESS-host
Slide 6: Change in segment reporting
HY17 OVERVIEW Change in segment reporting As previously outlined, IRESS has changed its approach to segment reporting to provide greater insight into its financial performance, reduce the complexity of cost allocations, and to better reflect IRESS’ strategy to develop and deploy technology on a glob
Slide 7: Segment summary
HY17 OVERVIEW Segment summary $AUDm Revenue Direct Contribution Contribution Margin % Constant currency basis (1) 1H16 2H16 1H17 1H16 2H16 1H17 1H16 2H16 1H17 APAC FM 56.0 57.4 57.5 41.8 42.3 42.0 75% 74% 73% ANZ WM 43.5 50.3 61.6 35.9 39.9 46.0 82% 79% 75% UK 50.0 53.4 52.4 32.4 36.1 33.3 65% 68% 6
Slide 8: Client Segment Overview
HY17 OVERVIEW Client Segment Overview Resilient revenue reflects quality of product and relationships in both Australia and Asia. Continuing sell-side cost pressure in Australia expected to have more visible revenue impact in second half of 2017 and into 2018. Delivery to Maybank Kim Eng in Singapor
Slide 9: Financial information
Financial information. iress.com 9
Slide 10: Ongoing revenue and profit growth
FINANCIAL INFORMATION Ongoing revenue and profit growth Impact of decline in non-recurring fees and decline in Exchange Portal. Core recurring licence revenue up REVENUE 4.7 0.3 0.1 11.3 (1.0) 0.8 0.1 211.8 195.4 2H16 Revenue APAC FM ANZ WM UK UK Lending South Africa Canada FX 1H17 Revenue SEGMENT P
Slide 11: Results reflect client delivery & product investment
FINANCIAL INFORMATION Results reflect client delivery & product investment AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Non-operating costs are primarily: Operating Revenue 194.3 195.4 211.8 9% 8% • Integration costs associated with the businesses acquired made in 2015 and 2016, inline with prev
Slide 12: Strong balance sheet, conservatively geared
FINANCIAL INFORMATION Strong balance sheet, conservatively geared AUD (m) Jun 2016 Dec 2016 Jun 2017 AUD (m) Jun 2016 Dec 2016 Jun 2017 Cash 33.3 23.0 20.7 Cash 33.3 23.0 20.7 Trade and other receivables 39.2 50.1 60.2 Borrowings (1) (190.6) (179.1) (195.7) Assets held for sale - - 3.3 Net debt 157.
Slide 13: Strong and sustainable cash flow and dividends
FINANCIAL INFORMATION Strong and sustainable cash flow and dividends OPERATING CASH FLOW CASH CONVERSION 110% 120 100 90 100% 100 80 70 90% 80 AUD (cents) 60 AUD (m) 80% 60 50 40 40 30 70% 20 20 60% 10 0 0 50% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H14 2H14 1H15 2H15 1H16 2H16 1H17 H1 (L
Slide 14: Delivery on strategy
Delivery on strategy. iress.com 14
Slide 15: XPLAN Prime – one of multiple advice channels
DELIVERY ON STRATEGY XPLAN Prime – one of multiple advice channels Multiple advice channels and ability to switch People don’t stick to one channel forever and don’t want to switch advice providers as their needs evolve. Digital solutions are relevant to all channels, but in different ways. Low Touc
Slide 16: Scaled benefits of XPLAN Prime
DELIVERY ON STRATEGY Scaled benefits of XPLAN Prime Optimised for efficiency Multi-channel delivery One unified solution Fast, efficient and simple Supports face to face, telephone, One client file, one copy of advice with strategy optimisation and online engagement and advice documents, one version
Slide 17: Market data and front-end investment
DELIVERY ON STRATEGY Market data and front-end investment • Market data content supporting increasing international trade execution, and broad portfolios of integrated wealth solutions. • Expanded content through Proquote and INET acqusitions being delivered across IRESS platform, with localisation
Slide 18: Integrated wealth management & trading
DELIVERY ON STRATEGY Integrated wealth management & trading About Tilney Group About CBAM About Echelon Wealth Partners Provider of financial planning and UK provider of financial planning Canadian provider of wealth investment services in UK. £20bn and investment service to high-net- management and
Slide 19: Segment overview
Segment overview. iress.com 19
Slide 20: APAC - Financial Markets
SEGMENT OVERVIEW APAC - Financial Markets Resilient Australian revenue, client delivery success in Asia creating opportunities Continuing revenue resilience in Australia and stable CFD revenue in AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Asia, reflecting product strength and quality of customer
Slide 21: APAC - Wealth Management
SEGMENT OVERVIEW APAC - Wealth Management Rollout of XPLAN to CBA commenced, first phase of Prime delivered; further Prime clients secured Revenue growth reflects contribution by Financial Synergy, ongoing take-up AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 across existing client base and deliver
Slide 22: United Kingdom
SEGMENT OVERVIEW United Kingdom First half result reflects delivery focus, well positioned for accelerated growth in second half Recurring intermediary software revenue +6% in 1H17, reflecting continuing XPLAN GBP (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 delivery and momentum, existing client take
Slide 23: Lending
SEGMENT OVERVIEW Lending TSB tracking well; promising pipeline Growth in revenue and direct contribution from 2H16 reflects ongoing client GBP (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 delivery activity. Atom Bank has provided a strong reference of functional benefit and value Operating Revenue 8.1
Slide 24: South Africa
SEGMENT OVERVIEW South Africa Continuing underlying growth; INET expands market role Continuing strong growth in underlying revenue and contribution against ZAR (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 a backdrop significantly reduced JSE trading volumes in 2017 (15% down YTD on 2016). Operating R
Slide 25: Canada
SEGMENT OVERVIEW Canada Wealth activity heightened following wealth client delivery; current commitments immediate priority Revenue growth reflects client project deliveries and growth in recurring CAD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 subscription revenue underpinned by strong client reten
Slide 26: Functional segments
SEGMENT OVERVIEW Functional segments Product and Technology The scale of investment in product and development is at the heart of IRESS’ success and market position, supporting client retention and future recurring revenue growth. AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Product and technology
Slide 27: Appendices
Appendices. iress.com 27
Slide 28: Segment summary - reported currency
APPENDIX 1 Segment summary - reported currency $Am Revenue Direct Contribution Contribution Margin % Reported currency 1H16 2H16 1H17 1H16 2H16 1H17 1H16 2H16 1H17 APAC FM 56.0 57.4 57.5 41.8 42.3 42.0 75% 74% 73% ANZ WM 43.5 50.3 61.6 35.9 39.9 46.0 82% 79% 75% UK 57.4 53.4 51.6 37.2 36.1 32.8 65%
Slide 29: Depreciation and amortisation
APPENDIX 2 Depreciation and amortisation D&A - Operational 1H16 2H16 1H17 Depreciation Plant & Equipment 3.1 3.3 3.5 Amortisation Software (3rd Party Purchased) 2.1 2.2 2.5 Total 5.2 5.5 6.0 D&A – Acquisition 1H16 2H16 1H17 2H17 1H18 2H18 Related Avelo 1.3 1.1 0.7 0.8 0.7 0.6 Proquote & Pulse 0.3 0.
Slide 30: iress.com
AUSTRALIA NEW ZEALAND ASIA Melbourne | +61 3 9018 5800 Auckland | +64 9 300 5571 Hong Kong | +852 3965 3343 Sydney | +61 2 8273 7000 Wellington | +64 4 462 6850 Singapore | +65 6672 6288 Perth | +61 8 6211 5900 Brisbane | +61 7 3011 4700 Adelaide | +61 3 9018 5800 CANADA SOUTH AFRICA UNITED KINGDOM
Slide 31: Disclaimer
Disclaimer The material in this presentation is intended to be general background information on IRESS Limited and its activities, current at the date of the presentation. The information is provided in summary form and does not purport to be complete. It is not intended to be relied upon as advice