Iress Limited · ASX:IRE
Iress — Corporate Update (November 2023)
16 slides from Iress's corporate update, Nov 30, 2023
Slide 1: Iress Investor Transformation Update
Iress Investor Transformation Update 30 November 2023
Slide 2: Agenda
Agenda Topic Speaker Page Introduction Roger Sharp, Chair 3 Transformation update Marcus Price, CEO 5 CFO update Cameron Williamson, CFO 10 Q&A 2
Slide 3: Chair's introduction
Chair’s introduction ● Transformation is a whole-of-company strategy fully supported by Board. Roger Sharp Chair ● Several transformation initiatives have been brought forward in response to headwinds at mid year. ● Program well advanced; to be completed by end of FY24. ● Iress on a path to becoming
Slide 4: Summary
Summary New structure, with refreshed leadership, Transformation on track driving execution of strategy Aligned business to be focused on customers Creating capacity to reinvest in our and products core businesses Targeting further cost efficiencies Clear program for divestments and in business units
Slide 5: Transformation update
Transformation update Focused on cash generation and leaner, organic-growth driven businesses Marcus Price Managing Director & CEO ● Transformation driving progress towards our Rule of 40 goal: ○ Arrested cost growth momentum, further cost efficiencies to come. ○ Creating capacity for selective re-inv
Slide 6: Transformation accelerated, ahead of schedule
Transformation accelerated, ahead of schedule 2H 2023 Progress 1H 2024 Priorities Transformation ✔ Transformation Office: FY23 exit run rate target achieved Drive execution to achieve FY24 targets 1. Structure for accountability ✔ Delivery of new company performance metrics & Align BU performance with
Slide 7: Transformation update: ANZ Wealth Management
Transformation update: ANZ Wealth Management Business strategy Business snapshot ● Provide technology that makes it easier to deliver financial advice to more people. ● Revenue growth of 5-7% per year within medium term. Recurring revenue 98.9% ~$670m Customer retention 99% 2H highlights Outlook Mont
Slide 8: Transformation update: APAC Trading & Market Data
Transformation update: APAC Trading & Market Data Business strategy Business snapshot ● To be the preeminent provider of innovative trading, market data and connectivity solutions that optimise performance and enhance decision Recurring revenue 98.3% making for all market participants. ● Revenue gro
Slide 9: Transformation update: Superannuation
Transformation update: Superannuation Business strategy Business snapshot ● Establish Iress as leading technology provider that empowers super funds to deliver for their members Recurring revenue 81.9% ● Achieve 30-40% market share for super software, up 10% over next 3-4 years Customer retention 98
Slide 10: CFO update
CFO update Cameron Williamson ● Managed Portfolio exits progressing Chief Financial Officer ● Capital management plan on track for February 2024 ● Revenue/cost trends improved ● Guidance upgraded. 10
Slide 11: Transformation update: Managed Portfolio
Transformation update: Managed Portfolio Business strategy ● Patiently maximise value to Iress to enable focus and investment in the core and growth businesses. ● Ongoing process of management and capital repatriation from non-strategic assets to retire debt and release capital. 2H highlights Outloo
Slide 12: Capital management
Capital management ● Capital management plan on track to be shared in February 2024. ● Will address debt, dividends and R&D investment. ● Net debt level of $308m at 31 October (vs $375m at 30 June) and forecast to decline further as assets divested. ● 2.3x leverage ratio1 as at 31 October, comfortab
Slide 13: Transformation initiatives moderating revenue/cost trends
Transformation initiatives moderating revenue/cost trends +2.6% 2H v 1H Modest revenue growth, slightly up on 1H ● Average monthly revenue +2.6% in 2H23 led by UK. ● Pricing adjustments largely implemented 1 April. ● MFA business divested, impact from October. Staff costs trending lower -3.9% 2H v 1
Slide 14: Outlook - Pathway to Rule of 40 for Iress Group
Outlook - Pathway to Rule of 40 for Iress Group 2023 Guidance Upgrade FY24 Outlook Reaffirmed - By end of FY24: ● Underlying EBITDA trending more favourably in second half1: ● Transformation program completed supported by specialist execution consultants. Previous guidance New guidance ● Significant fo
Slide 15: Summary and Q&A
Summary and Q&A New structure, with refreshed Transformation on track leadership, driving execution of strategy Aligned business to be focused Creating capacity to reinvest on customers and products in our core businesses Targeting further cost Clear program for divestments and efficiencies in busines
Slide 16: Disclaimer
Disclaimer The material in this presentation is intended to be general background information on Iress Limited and its activities, current at the These risks and uncertainties could cause actual results, performance or events to differ materially from those expressed or date of the presentation. The