Iress Limited · ASX:IRE
Iress — UBS Australian Small Caps Conference 2010
28 slides from Iress's conference presentation, Oct 21, 2010
Slide 1: UBS Australian Small Caps Conference 2010
UBS Small Caps Conference | October 2010 For personal use only UBS Australian Small Caps p Confe erence 2010 October 2010
Slide 2: IRESS H1'10 Results
UBS Small Caps Conference | October 2010 IRESS H1’10 Results For personal use only • Underlying Group profit $28.1 million (H2’0 09: $27.2m, up 3.5%) & excluding Asia $28.8 million up 5.0%. • Robust R b t performance f through th h the th half. h lf Grou G up (ex ( Asia) A i ) saw Revenue R up 4 4.0
Slide 3: Segment Performance Against Prior Half
UBS Small Caps Conference | October 2010 Segment g Performance Again g nst Prior Half For personal use only Financial Markets Wealth Management Aust & NZ Aust & NZ • Op Rev up 2.7% (up 2.6% on PY) • Op Rev up 3.6% (up 2.8% on PY) • EBITDA up 0 0.6% 6% (up ( 1 1.6% 6% on PY) • EBITDA up 5 5.8% 8% (up
Slide 4: Group Performance Against Prior Half
UBS Small Caps Conference | October 2010 Group p Performance Against g Prior Half For personal use only • Adjusted Group Profit $28.149 m Up p $0.952 m,, 3.5% on p prior half • Segment Contribution against prior half $A % • Financial markets Aust/NZ 0.662 70 • Financial markets Canada 0.332 35 • Wea
Slide 5: EBITDA Margins
UBS Small Caps Conference | October 2010 EBITDA Margins For personal use only EBITDA Margin:% Revenue H1 H2 H1 1 H2 H1 per Media Release 2008 2008 200 09 2009 2010 2007 2008 2009 Aust Fin Mkts 55.2% 55.5% 56 .8% 57.5% 56.3% 54.8% 55.3% 57.2% Can Fin Mkts (CAD) 21.3% 26.3% 29 .2% 34.1% 33.6% (6.4%) 2
Slide 6: Review of Group EBITDA
UBS Small Caps Conference | October 2010 Review of Group EBITDA* For personal use only 50 40 30 Millions $A M 20 10 0 H1'05 H1 05 H1'06 H1 06 H1'07 H1 07 H1'08 H1 08 H1'09 H1 09 H1'10 H1 10 -10 Fin Mkts - Aust Fin Mkts M - Can Fin Mkts - Asia Wlth Mgt - Aust Wlth Mgt - RSA Wlth Mgt - Asia *Defintion
Slide 7: Operating Cashflow per share
UBS Small Caps Conference | October 2010 Operating p g Cashflow p per sharre* For personal use only Cash generation from the business co ontinues to be very strong $0.70 $0.60 $0.50 $0.40 H2 $0.30 H1 $0 20 $0.20 $0.10 $ $0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 * Calculated as Net Cash from
Slide 8: IRESS Group Outlook
UBS Small Caps Conference | October 2010 For personal use only IRESS Group p Outlook • Re-emerging growth in 2010 • Improving conditions, caution remainss. • Canada and Wealth Management overweight contributions in H1. • Gradual restoration of cost base over 2010 moderating result. • Tradingg into H
Slide 9: Daily Trades on the ASX
UBS Small Caps Conference | October 2010 Daily Trades on the ASX For personal use only 1000 900 800 700 600 500 400 300 200 100 0 Value of Trades Number of Trades Up to September 2010 9
Slide 10: Financial Markets – Australia & NZ
UBS Small Caps Conference | October 2010 For personal use only Financial Markets – Australlia & NZ • Re-emerging result following flat prior halff • Revenue increased 2.7% 2 7% on H2 2009 • EBITDA increased 0.6% on H2 2009 • Net N t revenue ggrowth th sustained t i dd during i g H1, H1 upper-end d o
Slide 11: Financial Markets – 2010
UBS Small Caps Conference | October 2010 Financial Markets – 2010 For personal use only • IOS+ progress • Major institutional OMS enhancementss in rollout, others insto projects underway. • IOS+ retail p platform with webIRESS andd international execution in production p • Support for options includ
Slide 12: Financial Markets – Multi-markets
UBS Small Caps Conference | October 2010 For personal use only Financial Markets – Multi-m markets • Regulatory update. Await ASIC consultatio on paper on multi-market operating rules including best execution regime. IRESS playing active role in this process given international experience. • Network
Slide 13: Australia Financial Markets – Monthly Subscription Revenue
UBS Small Caps Conference | October 2010 Australia Financial Markets – Monthly Subscription For personal use only Revenue 7.0 6.5 6.0 5.5 $A Millionss 5.0 4.5 $ 4.0 3.5 3.0 2.5 2004 2005 2006 2007 2008 2009 2010 Up to October 2010 13
Slide 14: Australia Financial Markets - Outlook
UBS Small Caps Conference | October 2010 For personal use only Australia Financial Markets - Outlook • 2010 outlook: • Revenue growth has continued into H2. H2 • Positive momentum into H2 with graduaal restoration of cost base expects positive EBITDA growth in H2. • Medium term revenue outcomes high
Slide 15: Canada - Overview
UBS Small Caps Conference | October 2010 For personal use only Canada - Overview • Strong result adding to prior half gains • Revenue increased 10.3% 10 3% on H2 2009 to 11 11.086m 086m (CAD) • EBITDA increased 8.4% on H2 2009 to 3.721m (CAD) • Many M positive iti client li t iinitiatives iti ti sub
Slide 16: Canada – 2010
UBS Small Caps Conference | October 2010 For personal use only Canada – 2010 • Institutional order management project • Initial phase of project finalised and into o rollout phase at a large bank bank-owned owned dealer. • Now looking to additional opportunities in the space, both functionally and c
Slide 17: Canada – 2010
UBS Small Caps Conference | October 2010 For personal use only Canada – 2010 • webIRESS now available in Canada to sou urce additional opportunities. • Retail IOS+ opportunities • Extending the retail OMS into retail bran nch locations. • Extended IOS+ for US & Canadian optio ons, and other asset cl
Slide 18: Canada – Monthly Subscription Revenue
UBS Small Caps Conference | October 2010 Canada – Monthly Subscripttion Revenue* For personal use only 1.6 $ Millions s 1.2 CAD$ Pre-IRESS full production level offering 0.8 0.4 Apr-04 Apr-05 Apr-06 Apr--07 Apr-08 Apr-09 Apr-10 *Assumes 100% ownership Up to October 2010 18
Slide 19: Canada - Outlook
UBS Small Caps Conference | October 2010 For personal use only Canada - Outlook • H2 2010 outlook • Run rate started below prior half averagge ge. • Cancellations early in H2 higher than exxpected from cost cutting, consolidation and increased vendor competition. • Expect H2 to soften with market co
Slide 20: Daily trades in Canada
UBS Small Caps Conference | October 2010 Daily trades in Canada* For personal use only 1,000 Alpha commenced H2'08 900 800 Chi-X co ommenced m Jan‐05 H1'08 700 mon Base from 600 TriAct & Omega commenced H2'07 500 Pure Market 400 Comm commenced H1'07 300 200 100 - Jan-05 Jan-06 Jan-07 Ja n-08 Jan-09
Slide 21: Financial Markets – Asia
UBS Small Caps Conference | October 2010 For personal use only Financial Markets – Asia • Our investment in Asian expansion continues to progress well as we engage with many prospective opportunities and continue prroduct development. • Key points: • International market data coverage expanded to no
Slide 22: Wealth Management
UBS Small Caps Conference | October 2010 For personal use only Wealth Management g • Australia & New Zealand • Resilient result with revenue up 3.6% 3 6% % and EBITDA up 5 5.8% 8% on H2 2009 • Positive momentum from prior half sustained s in H1 from new and organic opportunities exceeding known clie
Slide 23: Wealth Management - 2010
UBS Small Caps Conference | October 2010 For personal use only Wealth Management g - 2010 0 • Redefining business models driving techn nology demand with themes of transparency, efficiency, growth: • Alignment of business processes with fe ee for service model seeing demand for technology. • Clients
Slide 24: Wealth Management - 2010
UBS Small Caps Conference | October 2010 For personal use only Wealth Management g - 2010 0 • More insurers added to Risk Research rea al-time premium validation. • Referral Portal used to connect referral co ommunities electronically to XPLAN. XPLAN • Integration to 3rd party service providers: pay
Slide 25: Wealth Management – Asia
UBS Small Caps Conference | October 2010 For personal use only Wealth Management g – Asia a • Key module localisation underway to cate er for opportunities in the region. • Platform integration for prospective requirrements now in testing. testing • Multilanguage support now in place in XPLAN. • Dev
Slide 26: Wealth Management – Aust & NZ Monthly Subscription Revenue
UBS Small Caps Conference | October 2010 Wealth Management – Aust & NZ Mthly Subscription Rev For personal use only 4.0 3.5 3.0 Millions 2.5 2.0 $A M 1.5 1.0 0.5 0.0 2004 2005 2006 2007 2008 2009 2010 Up to October 2010 26
Slide 27: Wealth Management Outlook
UBS Small Caps Conference | October 2010 For personal use only Wealth Management g Outloo ok • Australia & New Zealand • Growth has continued into H2, at higher end of expectation given redefining period. • Efficiency and repositioning for growth are a key drivers for activity. Not across the board
Slide 28: For personal use only
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