Slide 1: Results Presentation Half Year to 30th June 2007
For personal use only Results Presentation Half Year to 30th June 2007 August 2007
Slide 2: Group Performance
Group Performance For personal use only Adjusted Group Profit $18.159 m Up $2.682 million, 17.3% on prior half Segment Contribution against prior half Information Services Contribution $1.257 Wealth Management Contribution $1.985 Canada ($0.560) $2.682 Interim dividend 10.0 cents, fully fran
Slide 3: Segment Performance Against Prior Half
Segment Performance Against Prior Half For personal use only Information Services Operating Revenue up 7.9% (up 19.1% on PCP) EBITDA up 10.0% (up 19.1% on PCP) PAT up 8.7% (up 14.7% on PCP) Wealth Management Operating Revenue up 85.5% (up 248% on PCP) EBITDA up 141.2% (up 327% on PCP)
Slide 4: Strategic & Non-Recurring Items
For personal use only Strategic & Non-Recurring Items Strategic Charges ($4.602)m in total As with prior period we have continued with amortisation of purchased intangibles such as Computer Software The main changes in H1 2007 charges were: Full period charge for Computer Software recognised
Slide 5: IRESS Group – Overview
IRESS GROUP – Overview For personal use only Information Services Wealth Management IRESS Visiplan Australia & IOS, Australia & WebIRESS, WebIRESS, Xplan Portfolio New Zealand New Zealand FTS Plantech KTA Spotlight IRESS Canada Mkt Data, South Africa Xplan Trading IOS Plantech
Slide 6: Review of Group Recurring Subscription Revenue
Review of Group Recurring Subscription For personal use only Revenue Client & Central Royalty Comm Rev Rev 50.0 News Rev 45.0 Sub Rev (non-rec) 40.0 35.0 30.0 Sub Rev (recurring) $m 25.0 20.0 15.0 10.0 5.0 - H1'02 H1'03 H1'04 H1'05 H1'06 H1'07 Info Services Recurring Wealth Mngt Recurring Canada Rec
Slide 7: PCP change in Group Recurring Subscription Revenue
PCP change in Group Recurring For personal use only Subscription Revenue Acquisition of Visiplan business in April’07 9.0 8.0 Acquisition of Plantech business 7.0 in Sept’06 6.0 5.0 Acquisition of $m Acquisition of 100% existing business as of Canada business 4.0 part of Cad JV in in April’06 April’
Slide 8: Review of Group EBITDA
For personal use only Review of Group EBITDA* 29.0 24.0 19.0 $m 14.0 9.0 4.0 (1.0) H1'02 H2'02 H1'03 H2'03 H1'04 H2'04 H1'05 H2'05 H1'06 H2'06 H1'07 Info Services Wealth Mngnt Canada (AUD) *Defintion of EBITDA as per IRESS Media Release
Slide 9: PCP change in Group EBITDA
For personal use only PCP change in Group EBITDA* Acquisition of Visiplan business in April 07 6.0 Acquisition of 5.0 Plantech business in Sept’06 4.0 Acquisition of Acquisition of 100% existing business as of Canada business 3.0 part of Cad JV in in April’06 $m April’04 2.0 1.0 - H2'03 H1'04 H2'04
Slide 10: Relative Impact H01'07
For personal use only Relative Impact H01’07 100% 80% 60% 40% 20% 0% Revenue EBITDA* DirectStaffCosts Strategic Charges Info Services Wealth Mngnt Canada (AUD) -20% *Defintion of EBITA as per IRESS Media Release
Slide 11: Daily Trades on the ASX
For personal use only Daily Trades on the ASX 0.6 Millions 0.5 0.4 0.3 0.2 0.1 0 98 99 00 01 02 03 04 05 06 07
Slide 12: Information Services
For personal use only Information Services Î Half on half growth again replicates prior half Î Revenue growth across all products. Major contributors IRESS desktop, IOS & WebIRESS Î Competitors present at bottom end of market data and top end of order management. Impact very minor and at bottom end.
Slide 13: Info Services – Monthly Subscription Rev
Info Services – Monthly Subscription Rev For personal use only 5.5 5.0 4.5 $m 4.0 3.5 3.0 2.5 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07
Slide 14: PCP change in Info Services Revenue
PCP change in Info Services Revenue For personal use only 4.0 3.5 3.0 2.5 2.0 $m 1.5 1.0 0.5 - H2'01 H1'02 H2'02 H1'03 H2'03 H1'04 H2'04 H1'05 H2'05 H1'06 H2'06 H1'07 (0.5) IRESS + Services Trading Services Hardware/DR Other News, Royalty & Comms
Slide 15: Info Services – Margin Analysis
For personal use only Info Services – Margin Analysis % Revenue per Media Release H1 2005 H2 2005 H1 2006 H2 2006 H1 2007 Licence Fee Revenue 71.9% 71.7% 71.8% 72.0% 71.9% Other Rev (News / Roy. / Comms) 28.1% 28.3% 28.2% 28.0% 28.1% Total Direct Staff Costs (18.3%) (18.5%) (18.0%) (18.4%) (17.0%) T
Slide 16: Info Services Highlights – H1
For personal use only Info Services Highlights – H1 07 Î Unprecedented ASX trading volumes handled smoothly Î Agreement with key online brokers to fully migrate all premium users to WebIRESS Î AXE ECN compatible versions of IRESS, IOS released Î ASX CFD’s and FX capability added Î Further retail IOS
Slide 17: Australian Market Interface (AMI)
Australian Market Interface (AMI) For personal use only Î Single system connecting to ASX, ECN and any new venue Î Initiative based around IOS+, FIX+ and existing strategy engine White paper generating strong interest Automated two-way bridge between existing IOS network and IOS+. In test FIX+
Slide 18: IRESS Portfolio System (IPS)
For personal use only IRESS Portfolio System (IPS) Î IPS a critical integration component between equities market and wealth management divisions. Tax based reporting Equities, options, funds, futures, debt, hybrids Corporate action processing (current and historical) Managed accounts (IMA /
Slide 19: Wealth Management
For personal use only Wealth Management Î IRESS becomes the leading independent provider of Wealth Management software in Australia, New Zealand and South Africa VisiPlan acquisition (April 07) doubled the Wealth Management revenue base Spotlight (RSA) acquisition (July 07) provides scale and gr
Slide 20: Wealth Management Acquisitions
For personal use only Wealth Management Acquisitions Î VisiPlan Î Spotlight (RSA) Strong recurring revenue Strong established strategic base position Synergies in back-office, Skilled & highly regarded development efficiencies, local management and data management Strong recurring revenue
Slide 21: Wealth Management – Business Overview
Wealth Management – Business Overview For personal use only Revenue (AUD) Xplan Australia & Plantech 34.3m (pa) est. New Zealand Visiplan Spotlight South Africa 5.7m (pa) est. Plantech Estimates based on current run rate
Slide 22: Annualised current revenue mix
For personal use only Annualised current revenue mix 18.0 Millions 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 - VisiW eb VisiPlan Xplan (A&NZ) Plantech Plantech Spotlight (A&NZ) (RSA) (RSA)
Slide 23: Wealth Management – Plantech
For personal use only Wealth Management – Plantech Î Stable revenue base Î Risk Researcher and qualitative tools now integrated and enhanced into Xplan. Î Risk strengths combined with web-delivered Xplan make an attractive upgrade for PlanTech desktop users. Adoption has commenced. Î Risk Research a
Slide 24: Wealth Management – VisiPlan
For personal use only Wealth Management – VisiPlan Î Merger well received by client’s of both companies and new prospects Î Staff retention provides service continuity to combined customer base Î Combined scale provides unique capacity for new developments in response to client demands Î Consolidati
Slide 25: Wealth Management Initiatives – AUS & NZ
Wealth Management Initiatives – AUS & NZ For personal use only Î AppCentral “STP” for insurance applications Multi-applications Launched with Zurich and further support Î CommPay Dealer payment and reporting system Integration is key differentiator Trialling by some clients, significant
Slide 26: Wealth Management Initiatives – AUS & NZ (Cont'd)
Wealth Management Initiatives – AUS & For personal use only NZ (Cont’d) Î Debt Analysis Tools Qualifier E-app Î IPS Expansion of feeds, modelling Î IQM+/Risk Researcher Significant interest in integrated solution. User base attractive to insurance partners Î Connectivity Investment / Ins
Slide 27: Wealth Management - Spotlight (South Africa)
Wealth Management - Spotlight (South Africa) For personal use only Î Spotlight is the leading provider in South Africa with a large installed user base (16,000) and strong established client relationships Î Spotlight will continue to provide client support and development locally Î Growth opportunit
Slide 28: Wealth Management – Mthly Subscription Rev
Wealth Management – Mthly Subscription Rev For personal use only 3.0 2.5 Acquisition of 2.0 Visiplan business in Apl’07 $m 1.5 Acquisition of 1.0 Plantech business in Sept’06 0.5 Xplan if P’tech & Visi was excluded 0.0 2003 2004 2005 2006 2007
Slide 29: PCP change in Financial Planning Subscription Revenue
PCP change in Financial Planning For personal use only Subscription Revenue 6 .0 5 .0 Acquisition of Visiplan Apl’07 4 .0 $m 3 .0 Acquisition of Plantech Sept ‘06 2 .0 1 .0 - H 1 '0 3 H 1 '0 4 H 1 '0 5 H 1 '0 6 H 1 '0 7 X p la n P la nte ch V isip la n
Slide 30: Wealth Management – Margin Analysis
For personal use only Wealth Management – Margin Analysis % Revenue per Media Release H1 2005 H2 2005 H1 2006 H2 2006 H1 2007 Licence Fee Revenue 97.8% 97.1% 96.7% 97.1% 97.8% Other Rev (News / Roy. / Comms) 2.2% 2.9% 3.3% 2.9% 2.2% Total Direct Staff Costs (67.7%) (55.4%) (49.3%) (45.8%) (45.3%) To
Slide 31: Margin Analysis
For personal use only Margin Analysis Î Higher Q1 margin due to lower staffing levels Î “abnormal” result in April with cutover of VisiPlan billing and costs Î Xplan + PlanTech + Visi -> averaging down from current levels Î Looking forward Costs Commitment to maintain and grow service levels, no
Slide 32: Daily Trades on TSX & TSX Venture Exchanges
Daily Trades on TSX & TSX Venture For personal use only Exchanges 1.2 Millions 1 0.8 0.6 0.4 0.2 0 Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07
Slide 33: Canada Business
Canada Business For personal use only Î Revenue growth momentum picking up with 15% growth from previous half and 26% pcp. Growth to accelerate through to mid 08. Î Massive increase in Canadian activity rates (trades and particularly orders) has challenged everyone’s infrastructure (clients, competi
Slide 34: Canada – CX Trader Conversion
Canada – CX Trader Conversion For personal use only Î CX Trader Order Entry (OE) significantly rolled out: Main driver of revenue growth in H1 Most contracts included additional sales of IRESS products 90%+ contracted of original list Î CX OMS conversions about to commence Major clients in f
Slide 35: Canada - Outlook
Canada - Outlook For personal use only Î CX OMS installations challenging given market volume pressures, importance of the system and scale of the clients. Î Current roll-out schedule for balance of 07 implies very significant revenue growth by early 08. Contracted and expected conversion should pus
Slide 36: Canada Longer Term Outlook
For personal use only Canada Longer Term Outlook Î Current strategy includes: Trading terminals for Canadian equities and options Retail order flow management (including US FX tools) Institutional order management and compliance FIX connectivity Limited market data around OMS solutions Î E
Slide 37: Canada – Monthly Subscription Revenue To June 07
Canada – Monthly Subscription Revenue To June 07* For personal use only 0.800 Millions 0.750 0.700 CAD 0.650 0.600 Pre-IRESS full production level offering 0.550 0.500 0.450 0.400 Apr-04 Apr-05 Apr-06 Apr-07 * Assumes 100% ownership
Slide 38: Review of Group Operating Expenses
Review of Group Operating Expenses For personal use only Comms & Other Info Services 10 General Administration Expenses 8 Occupancy Expenses $m 6 Hardware & Software Expenses 4 Other Employee Related Expenses 2 Total Direct Staff Costs (Inc AL) 0 H1'03 H1'04 H1'05 H1'06 H1'07 Canada CAD (Assumes 100
Slide 39: Breakdown of operating expenses H1'07
Breakdown of operating expenses H1’07 For personal use only Total Direct Staff Costs (Inc AL) Info Services 6% 1% Other Employee Related Expenses 7% Hardware & Software Expenses 2% 5% Occupancy Expenses To be updated General Administration Expenses Comms & Other 79% 1% Management Wealth Canada (CAD)
Slide 40: Headcount & Direct staff costs
Headcount & Direct staff costs* For personal use only 350 Acquisition of Visiplan business 300 in Apl’07 Full time equivalent staff 250 200 150 100 50 - H 2 '0 1 H 1 '0 2 H 2 '0 2 H 1 '0 3 H 2 '0 3 H 1 '0 4 H 2 '0 4 H 1 '0 5 H 2 '0 5 H 1 '0 6 H 2 '0 6 H 1 '0 7 1 8 .0 * Direct Staff Costs as shown ex
Slide 41: Dividends
For personal use only Dividends Î Interim Dividend 10.0 cents (8.0 cents previous) Full franked Payable 28th September 2007 25% growth in dividend Î Franking credit balance $16.401m (Dec 2006: 14.553m)
Slide 42: Share Based Payments
For personal use only Share Based Payments Î The total $ value of the pool made available for LTIs in any period is a function of the prevailing wages expense. Î In calculating the quantum of grants made the total $ of the pool is divided by the accounting value ascribed to each series. Î As a conse
Slide 43: Share Based Payments (Cont)
For personal use only Share Based Payments (Cont) SBP Expense ($m) Jun 2007 Dec 2007 Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 2004 Series 0.178 - - - - - - 2005 Staff Series 0.531 0.540 0.382 - - - - 2005 MD Series 1 0.128 0.130 0.118 0.093 0.084 0.066 0.046 2005 MD Series 2 0.299 0.304 0.280 0.
Slide 44: Strategic Charges
Strategic Charges For personal use only Î Intangibles arising through the acquisition of a business or company Cost (AUD) Tax Description Amortisation period $m Deductible Xplan Software 11.034 5 years (ending Mar 08) Yes Plantech Software 11.440 3 years (ending Oct 09) Yes Wealth Plantech Goodwill
Slide 45: Estimated future strategic charges
For personal use only Estimated future strategic charges Description H1'07 H2'07 H1'08 H2'08 H1'09 H2'09 H1'10 H2'10 Xplan Software 1.070 1.070 0.478 - - - - - Plantech Software 1.907 1.907 1.907 1.907 1.907 0.953 - - Wealth Plantech Goodwill - - - - - - - - Management Visiplan Software 1.385 3.671
Slide 46: For personal use only
A.BN. 47 060 31.3 359 so 1v) O pa! O Zz, ne UO Ww = fe Ww x (a < 2 *