Asx Limited · ASX:ASX
Asx — H1 2014 Earnings Presentation
36 slides from Asx's earnings presentation, Feb 13, 2014
Slide 1: Half-Year 2014 Results Presentation
Half-Year 2014 Results Presentation For personal use only ASX Limited Elmer Funke Kupper, Managing Director and CEO 13 February 2014 1
Slide 2: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (13 February 2014). It is provided in summary and does not purport to be complete. You should not rely upon i
Slide 3: Financial Results 1H14
Financial Results 1H14 For personal use only Revenue Expenses EBITDA Profit EPS DPS $329.3m $77.2m $252.1m $189.6m 98.3c 88.2c 8.0% (8.3%) 8.0% 10.8% 2.2% 0.3% • Profit after tax $189.6m, up 10.8% − Includes additional interest from capital raising ‒ EBITDA up 8% driven by revenue growth ‒ Interim d
Slide 4: Income Statement
Income Statement For personal use only 1H14 1H13 2H13 % Variance % Variance $ Million $ Million $ Million Operating Revenue 329.3 304.8 8.0% 312.6 5.4% Operating Expenses 77.2 71.3 (8.3%) 74.9 (3.2%) EBITDA 252.1 233.5 8.0% 237.7 6.0% Depreciation and Amortisation 16.3 15.4 (6.1%) 15.0 (8.4%) EBIT 2
Slide 5: EPS Movement (Cents per Share)
EPS Movement (Cents per Share) For personal use only 10.4 (8.3) 98.3 96.2 EPS Up 2.2% 1H13 Movement due to Movement due to increase 1H14 increased earnings in number of shares • EPS impacted by $553 million capital raising in June/July 2013 • EPS up 2.2% - higher earnings partly offset by issue of a
Slide 6: Revenue Movement ($M)
Revenue Movement ($M) For personal use only 1.4 0.6 329.3 5.4 1.6 3.3 4.3 7.9 304.8 Up Up Up Up Up Up Up 10.7% 7.8% 10.9% 6.6% 5.9% 7.4% 6.5% Operating Revenue Up 8.0% 1H13 Listings and Cash Market Information Technical Derivatives and Austraclear Other Revenue 1H14 Issuer Services Services Services
Slide 7: Revenue Performance by Half
Revenue Performance by Half For personal use only 1H14 % Variance % Variance $ Million to PCP to 2H13 Listings and Issuer Services 81.5 10.7% 23.4% Cash Market 59.2 7.8% (0.9%) Information Services 33.9 10.9% 8.7% Technical Services 26.2 6.6% 4.1% Derivatives and OTC Markets 99.8 5.9% (3.0%) Austrac
Slide 8: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $81.5 million, up 10.7% Listings and Issuer Services • Listings $66.8 million, up 11.3% • Rights issue timetable reduction from 26 to 19 days ‒ 69 IPOs (41 pcp) • Equity Research Scheme expanded to $2m in FY14 ‒ IPO
Slide 9: Cash Market
Cash Market For personal use only Highlights Areas of Focus Revenue $59.2 million, up 7.8% Trading • Trading $16.6 million, up 5.0%, Clearing $21.7 million, up • Centre Point 5.5% of value, 15.7% of revenue (10.5% 10.3% and Settlement $20.9, up 7.5% pcp). Further product innovations launched • Total
Slide 10: Information and Technical Services
Information and Technical Services For personal use only Highlights Areas of Focus Information Services $33.9 million, up 10.9% Information Services • Professional and retail usage up • Enhanced Corporate Actions information service • Pricing changes implemented 1 July 2013 • Fee alignment to changi
Slide 11: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $99.8 million, up 5.9% Product Development • ASX 24 Derivatives $89.8 million, up 12.4% • Launch of VIX and equity sectoral futures contracts ‒ Contracts traded up 14.5% • New electricity futures contracts ‒ Includes
Slide 12: Austraclear
Austraclear For personal use only Highlights Areas of Focus Revenue $20.5 million, up 7.4% ASX Collateral Service • Transaction revenue $8.2 million, up 3.4% • Reduces collateral costs for ASX clients ‒ Transaction volume up 5.5% • Phase 1 connects service to Austraclear fixed income • Holdings reve
Slide 13: World Class Post-Trade Services
World Class Post-Trade Services For personal use only World Class World Class Financial Infrastructure Investor Protection • Attractive markets Delivered between • Client protection ‒ Top 5 interest rate futures and July 2013 and July 2014 ‒ Client level clearing swap markets in the world • Domestic
Slide 14: Interest and Dividend Income
Interest and Dividend Income For personal use only 1H14 1H13 % $ Million $ Million Variance Highlights • Total net interest income up 41.5% ASX Group Interest 14.5 7.5 94.0% Income • ASX Group interest income up 94.0% following capital raising and repayment of debt facility Net Interest Earned on Co
Slide 15: Expenses
Expenses For personal use only 1H14 1H13 % Variance Highlights $ Million $ Million • Total expenses up 8.3% Staff 47.2 43.2 (9.4%) ‒ Average staff numbers up 4.1% to 532 FTEs Occupancy 6.9 6.6 (4.5%) (511 pcp). Increase driven by initiatives Equipment 11.6 10.5 (10.8%) ‒ Higher equipment expenses to
Slide 16: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 34.8 23.5 20.5 19.0 18.5 18.6 15.4 15.4 8.6 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 Normal Data Centre Highlights • Approximately $13 million of $18.6 million in 1H14 invested in post-trade services • Guidance FY14 capital expenditure $40 to $45 mi
Slide 17: Post Balance Date Activity
Post Balance Date Activity For personal use only Economic and market conditions • Stabilisation/modest improvement in global economic conditions; structural challenges in Europe remain • Mixed economic indicators domestically − Improving business sentiment; mixed signals in consumer confidence − Cor
Slide 18: Financial Results 1H14
Financial Results 1H14 For personal use only Revenue Expenses EBITDA Profit EPS DPS $329.3m $77.2m $252.1m $189.6m 98.3c 88.2c 8.0% (8.3%) 8.0% 10.8% 2.2% 0.3% • Profit after tax $189.6m, up 10.8% ‒ EBITDA up 8% driven by revenue growth ‒ Interim dividend in line with 1H13 following capital raising
Slide 19: For personal use only
For personal use only Globally connected World class @ Internationally competitive Customer driven Www.asx.com.au Customer service 131 ASX (131 279) | International +61 2 9338 0000
Slide 20: Appendices
For personal use only Appendices 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 5. Free Cash Flow Summary 6. Risk-Based Capital 7. Cash Market Clearing and Settlement Income Statements 20
Slide 21: 1. Income Statement
1. Income Statement For personal use only 1H12 2H12 1H13 2H13 1H14 $ Million $ Million $ Million $ Million $ Million Listings and Issuer Services 68.6 64.8 73.6 66.1 81.5 Listings 56.2 53.7 60.0 53.2 66.8 Issuer Services 12.4 11.1 13.6 12.9 14.7 Cash Market 66.9 57.6 54.9 59.7 59.2 Trading 19.6 16.8
Slide 22: 1. Income Statement (Continued)
1. Income Statement (Continued) For personal use only 1H12 2H12 1H13 2H13 1H14 $ Million $ Million $ Million $ Million $ Million Depreciation and Amortisation 12.9 14.7 15.4 15.0 16.3 EBIT 231.8 209.9 218.1 222.7 235.8 Net Interest Income 11.6 8.9 7.5 5.6 14.5 Net Interest on Participants’ Balances
Slide 23: 2. Balance Sheet
2. Balance Sheet For personal use only 31 Dec 11 30 Jun 12 31 Dec 12 30 Jun 13 31 Dec 13 $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 3,841.0 3,696.2 4,333.9 4,496.2 5,071.7 Goodwill 2,262.8 2,262.8 2,262.8 2,317.6 2,317.6 Investments 164.6 16
Slide 24: 3. Key Financial Ratios
3. Key Financial Ratios For personal use only 1H12 2H12 1H13 2H13 1H14 Basic EPS (including significant items) 98.7c 92.0c 96.2c 99.3c 98.3c Diluted EPS (including significant items) 98.7c 92.0c 96.2c 99.3c 98.3c Underlying EPS (excluding significant items) 101.6c 93.0c 96.2c 99.3c 98.3c Dividends p
Slide 25: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services For personal use only 1H12 2H12 1H13 2H13 1H14 Total domestic market capitalisation ($bn) – period end $1,169 $1,186 $1,336 $1,347 $1,527 Total number of listed entities (includes all stapled entities) - period end 2,222 2,211 2,188 2,185 2,195 Number of new listings
Slide 26: 4.2 Cash Market
4.2 Cash Market For personal use only 1H12 2H12 1H13 2H13 1H14 Trading days 129 124 129 123 130 Total cash market trades ('000) 87,025 78,781 76,283 98,483 93,607 Average daily cash market trades 647,609 635,333 591,341 800,549 720,053 Open trading ($bn) $396.181 $321.700 $296.090 $349.071 $313.211
Slide 27: 4.3 Information and Technical Services
4.3 Information and Technical Services For personal use only 1H12 2H12 1H13 2H13 1H14 Technical Services – Liquidity access No. of ASX sessions – period end 1,786 1,703 1,625 1,526 1,423 No. of ASX gateways – period end 331 302 267 248 236 No. of ASX liquidity cross connects – period end 78 75 70 70
Slide 28: 4.4 ASX Derivatives
4.4 ASX Derivatives For personal use only 1H12 2H12 1H13 2H13 1H14 Trading days (ASX) 129 124 129 123 130 Equity options (‘000) 79,930 71,688 74,309 71,221 59,170 Index options and futures (‘000) 6,534 5,592 6,168 5,595 3,887 Grains futures and options on futures (‘000) 154 - - - - (transferred to A
Slide 29: 4.5 ASX Derivatives
4.5 ASX 24 Derivatives For personal use only 1H12 2H12 1H13 2H13 1H14 Trading days (ASX 24) 129 127 129 126 130 Total contracts - futures ('000) ASX SPI 200 6,680 5,132 4,894 5,365 4,875 90 day bank bills 10,568 11,084 10,298 15,568 13,453 3 year bonds 20,497 22,005 22,006 25,493 23,486 10 year bond
Slide 30: 4.5 ASX Derivatives (Continued)
4.5 ASX 24 Derivatives (Continued) For personal use only 1H12 2H12 1H13 2H13 1H14 Total contracts - options on futures ('000) ASX SPI 200 227 250 192 157 232 90 day bank bills 25 0 7 0 4 3 year bonds 76 271 256 270 153 Overnight 3 year bonds 388 641 742 1,172 719 Intra-day 3 year bonds 418 561 536 9
Slide 31: 4.6 Austraclear
4.6 Austraclear For personal use only 1H12 2H12 1H13 2H13 1H14 Settlement days 129 124 129 123 130 Transactions ('000) Cash transfers 321 295 294 293 312 Fixed interest securities 358 376 371 392 405 Discount securities 115 102 94 91 84 Foreign exchange 11 10 10 11 11 Other 4 5 6 5 5 Total transacti
Slide 32: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances For personal use only 1H12 2H12 1H13 2H13 1H14 $ Million $ Million $ Million $ Million $ Million ASX Clear – initial margins (cash) - period end 258.7 254.5 289.5 561.4 432.8 ASX Clear (Futures) – initial margins House – period end 779.8 686.6 1,032.0 907.0 97
Slide 33: 5. Free Cash Flow Summary
5. Free Cash Flow Summary For personal use only 1H12 2H12 1H13 2H13 1H14 $ Million $ Million $ Million $ Million $ Million ASX Group Cash Total cash and short-term investments 3,841.0 3,696.1 4,333.9 4,496.2 5,071.7 Less participants’ margins and cash commitments (3,042.3) (2,939.6) (3,536.2) (3,753
Slide 34: 6. Risk-Based Capital
6. Risk-Based Capital For personal use only *Pro Forma 1H12 2H12 1H13 1H14 2H13 $ Million $ Million $ Million $ Million $ Million ASX group equity Shareholders equity 2,999.9 2,995.0 3,047.7 3,606.4 3,676.2 Less goodwill (2,262.8) (2,262.8) (2,262.8) (2,317.6) (2,317.6) Net tangible equity 737.1 732
Slide 35: 7. Cash Market Clearing and Settlement Income Statements
7. Cash Market Clearing and Settlement Income Statements For personal use only Cash Market Cash Market Cash Market Cash Market Clearing Clearing Settlement Settlement 1H14 1H13 1H14 1H13 $ Million $ Million $ Million $ Million Operating Revenue 22.2 20.1 22.1 20.8 Operating Expenses 5.2 4.9 6.3 6.0
Slide 36: For personal use only
For personal use only Globally connected World class @ Internationally competitive Customer driven Www.asx.com.au Customer service 131 ASX (131 279) | International +61 2 9338 0000