Slide 1: Full-Year 2016 Results Presentation
For personal use only Full-Year 2016 Results Presentation ASX Limited Dominic Stevens Peter Hiom Ramy Aziz 18 August 2016
Slide 2: Financial Results FY16
Financial Results FY16 For personal use only Revenue Expenses EBITDA NPAT EPS DPS $746.3m $170.6m $575.7m $426.2m 220.4c 198.1c 6.5% (6.5%) 6.5% 5.7%* 5.8%* 5.7% Strong result • Revenue up $45.6 million • Growth in all business lines underpinned by higher trading activity and robust capital raisings
Slide 3: Income Statement
Income Statement For personal use only FY16 FY15 $ Million $ Million % Variance Operating Revenue 746.3 700.7 6.5% Operating Expenses (170.6) (160.1) (6.5%) EBITDA 575.7 540.6 6.5% Depreciation and Amortisation (42.7) (38.6) (10.5%) EBIT 533.0 502.0 6.2% Interest and Dividend Income 73.1 71.9 1.7% P
Slide 4: Revenue Movement ($ Million)
Revenue Movement ($ Million) For personal use only 11.9 1.4 746.3 10.2 12.9 9.2 700.7 Up Up Up Up Up 5.0% 7.7% 11.1% 4.7% 89.5% Operating Revenue Up 6.5% FY15 Listings and Trading Equity Post-Trade Derivatives and Other FY16 Issuer Services Services Services OTC Markets Revenue $192.7 $182.8 $102.0
Slide 5: Activity Levels
Activity Levels Cash Market Trading For personal use only Total Capital Raised ($ Billion) ASX Average Daily Value On-Market ($ Billion) 88.9 4.170 78.6 3.805 3.498 66.0 3.292 3.284 50.6 46.4 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Futures¹ - Average Daily Contracts ('000) Equity Options -
Slide 6: ASX Group Priorities
ASX Group Priorities Strategic initiatives progressing For personal use only Global Leader in A$ and NZ$ • Upgrade technology infrastructure – trading, risk, clearing World-Class • Be leader in post-trade innovation – distributed ledger technology Infrastructure • Build global connectivity – Chicago
Slide 7: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $192.7 million, up 5.0% Develop listings franchise • 124 IPOs; IPO capital $23.6 billion, down 39.4% • New Zealand – simplified dual listings process; 8 listings in FY16, 46 NZ entities now listed • Secondary capita
Slide 8: Trading Services (1/2)
Trading Services (1/2) For personal use only Highlights Areas of Focus Revenue $182.8 million, up 7.7% Cash Market Trading Cash Market Trading $40.7 million, up 12.9% • On-market trading market share 88.7% (89.7% pcp) ‒ Total on-market value traded per day up 10.9% • ASX Auctions and Centre Point ac
Slide 9: Trading Services (2/2)
Trading Services (2/2) For personal use only Highlights Areas of Focus Information Services $80.1 million, up 8.7% Information Services • Fee changes and higher index royalties • Progressive changes to futures market data • Enterprise licences contributed 23.0% of revenue introduced: ‒ Removal of da
Slide 10: Equity Post-Trade Services
Equity Post-Trade Services Highlights Areas of Focus For personal use only Revenue $102.0 million, up 11.1% Key updates • Clearing $54.1 million, up 14.5% • T+2 settlement introduced 7 March 2016 ‒ On-market value cleared up 11.7% • Clearing fees reduced 10% from 1 July 2016, rebate ‒ Revenue sharin
Slide 11: Public Blockchain vs ASX Private Permissioned Ledger
Public Blockchain vs ASX Private Permissioned Ledger For personal use only Public Blockchain ASX Private Permissioned Ledger Not applicable to highly regulated markets Similar to today, but an enhanced database architecture • Unregulated • Highly regulated market ‒ No restrictions on ability to join
Slide 12: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $265.8 million, up 4.7% Product development • Futures and OTC $194.3 million, up 6.9% • Launched 20 year bond futures, mini SPI, Eastern Australian wheat futures/options and TORESS options ‒ Contracts traded up 8.3%
Slide 13: Futures and OTC Clearing Movement
Futures and OTC Clearing Movement For personal use only OTC Notional Value Cleared ($ Billion) Revenue Movement ($ Million) 1,283 18.7 (6.0) 194.3 181.6 642 498 344 360 319 78 24 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 Volume & Higher Prop FY16 Product Mix Rebates $806 bn FY15 $2,742 bn FY16 •
Slide 14: Interest and Dividend Income
Interest and Dividend Income For personal use only FY16 FY15 $ Million $ Million % Variance Highlights ASX Group Net • ASX Group net interest income down 17.3% 22.3 26.9 (17.3%) from lower interest rates Interest Income • Net interest on collateral balances up 17.0% Net Interest Earned on Collateral
Slide 15: Operating Expenses ($ Million)
Operating Expenses ($ Million) Highlights For personal use only • Operating expenses up 6.5% • Staff costs up 4.9% ‒ Higher salaries and recruitment costs 170.6 ‒ CEO transition costs 160.1 153.6 141.1 146.2 69.5 ‒ Average headcount up 1.9% to 534 63.7 FTEs, technology transformations and 61.2 58.5
Slide 16: Capital Expenditure ($ Million)
Capital Expenditure ($ Million) 50.2 For personal use only 43.2 44.4 39.1 38.9 FY12 FY13 FY14 FY15 FY16 Maintenance capex ALC (Data and Customer Support Centre) Post-Trade Technology Transformation* Highlights • Focus on technology transformation program – futures trading, risk management and market
Slide 17: Technology Transformation
Technology Transformation For personal use only Futures Trading CHESS Replacement Completing DLT Feb 17 Prototype Derivatives Equities Clearing Trading Phase I FY16 – FY18 Risk Management Market Phase II FY17 + Phase 1 Monitoring Completed Risk Management Phase 2 Progress • Futures trading on target
Slide 18: Post Balance Date Activity
Post Balance Date Activity For personal use only Total capital raised $8.6 billion July 2016 (6.2%) Cash market trading Cash market trading (total market - all (ASX on-market) venues) $3.9 billion $5.5 billion Average value per day 7.8% 4.9% Average value per day Futures trading Equity options tradi
Slide 19: Financial Results FY16
Financial Results FY16 For personal use only Revenue Expenses EBITDA NPAT EPS DPS $746.3m $170.6m $575.7m $426.2m 220.4c 198.1c 6.5% (6.5%) 6.5% 5.7%* 5.8%* 5.7% Strong result • Revenue up $45.6 million • Growth in all business lines underpinned by higher trading activity and robust capital raisings
Slide 20: Thank you
For personal use only Thank you
Slide 21: Appendices
Appendices For personal use only 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 5. Free Cash Flow Summary 6. Capital Attribution 7. Cash Market Clearing and Settlement Income Statements
Slide 22: 1. Income Statement
1. Income Statement FY12 FY13 FY14 FY15 FY16 $ Million $ Million $ Million $ Million $ Million For personal use only Annual Listing Fees 60.6 60.0 62.1 70.7 75.2 Initial Listing Fees 6.2 7.2 17.9 20.9 18.6 Subsequent Listing Fees 34.4 37.4 38.4 42.7 45.1 Other Listing Fees 8.7 8.6 8.6 9.0 10.5 Listi
Slide 23: 1. Income Statement (Continued)
1.Income Statement (Continued) FY12 FY13 FY14 FY15 FY16 $ Million $ Million $ Million $ Million $ Million For personal use only Staff 82.6 87.2 92.4 96.4 101.1 Occupancy 15.5 13.7 14.3 13.7 14.1 Equipment 21.6 22.4 23.0 24.0 27.0 Administration 13.5 15.6 16.3 17.2 19.3 Variable 3.7 3.8 4.3 5.1 6.2 A
Slide 24: 2. Balance Sheet
2. Balance Sheet 30 Jun 12 30 Jun 13 30 Jun 14 30 Jun 15 30 Jun 16 For personal use only $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets¹ 3,696.2 4,496.2 5,015.6 4,879.0 7,072.8 Goodwill 2,262.8 2,317.6 2,317.6 2,317.6 2,317.6 Investments 162.1 1
Slide 25: 3. Key Financial Ratios
3. Key Financial Ratios FY12 FY13 FY14 FY15 FY16 For personal use only Basic EPS (including significant items) 190.6c 195.5c 198.5c 205.7c 220.4c Diluted EPS (including significant items) 190.6c 195.5c 198.5c 205.7c 220.4c Underlying EPS (excluding significant items) 194.6c 195.5c 198.5c 208.4c 220.
Slide 26: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services FY12 FY13 FY14 FY15 FY16 For personal use only Total domestic market capitalisation ($bn) – period end $1,186 $1,347 $1,552 $1,612 $1,620 Total number of listed entities (includes all stapled entities) - period end 2,211 2,185 2,192 2,220 2,204 Number of new listings
Slide 27: 4.2 Trading Services – Cash Market Trading
4.2 Trading Services – Cash Market Trading FY12 FY13 FY14 FY15 FY16 For personal use only Trading days 253 252 253 254 254 Total cash market trades ('000) 165,806 174,750 181,861 190,647 235,923 Average daily cash market trades 655,359 693,454 718,817 750,578 928,829 Open trading ($bn) $717.882 $645
Slide 28: 4.2 Trading Services – Technical Services
4.2 Trading Services – Technical Services FY12 FY13 FY14 FY15 FY16 For personal use only Technical Services (number at period end) Liquidity access ASX sessions 1,737 1,526 1,431 1,185 1,113 ASX gateways 302 248 233 207 192 ASX liquidity cross connects 75 70 61 55 57 ASX 24 gateways 352 272 241 228
Slide 29: 4.3 Equity Options
4.3 Equity Options FY12 FY13 FY14 FY15 FY16 For personal use only Trading days (ASX) 253 252 253 254 254 Equity options (‘000) 151,619 145,531 116,343 109,546 88,701 Index options (‘000) 12,125 11,762 8,249 10,958 12,768 Grains futures and options on futures (‘000) 154 - - - - (transferred to ASX24
Slide 30: 4.3 Futures and OTC Clearing
4.3 Futures and OTC Clearing FY12 FY13 FY14 FY15 FY16 For personal use only Trading days (Futures) 256 255 256 256 257 Total contracts traded - futures ('000) ASX SPI 200 1 11,811 10,259 9,715 10,301 12,105 90 day bank bills 21,652 25,866 25,903 28,706 29,567 3 year bonds 42,503 47,499 47,886 49,717
Slide 31: 4.3 Futures and OTC Clearing (continued)
4.3 Futures and OTC Clearing (continued) FY12 FY13 FY14 FY15 FY16 For personal use only Total contracts traded - options on futures ('000) ASX SPI 200 477 349 473 454 363 90 day bank bills 25 7 4 - 4 3 year bonds 347 526 416 245 356 Overnight 3 year bonds 1,029 1,914 1,523 896 579 Intra-day 3 year b
Slide 32: 4.3 Austraclear
4.3 Austraclear FY12 FY13 FY14 FY15 FY16 For personal use only Settlement days 253 252 253 254 254 Transactions ('000) Cash transfers 616 587 600 602 590 Fixed interest securities 733 763 800 774 717 Discount securities 217 183 162 157 150 Foreign exchange 22 21 21 22 11 Other 11 12 10 9 2 Total tra
Slide 33: 4.4 CCP Participant Collateral Balances
4.4 CCP Participant Collateral Balances FY12 FY13 FY14 FY15 FY16 For personal use only $ Million $ Million $ Million $ Million $ Million Balances at period end ASX Clear – initial margins 254.5 561.4 549.8 673.7 815.7 ASX Clear (Futures) – initial margins House 686.6 907.0 849.3 746.0 1,293.7 ASX Cl
Slide 34: 5. Free Cash Flow Summary
5. Free Cash Flow Summary FY12 FY13 FY14 FY15 FY16 $ Million $ Million $ Million $ Million $ Million For personal use only ASX Group cash Total cash and short-term investments 3,696.1 4,496.2 5,015.6 4,879.0 7,072.8 Less participants’ margins and commitments – cash backed (2,939.6) (3,753.1) (3,986.
Slide 35: 6. Capital Attribution
6. Capital Attribution FY12 FY13 FY14 FY15 FY16 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group shareholders’ equity 2,995.0 3,321.8 3,670.9 3,759.7 3,824.1 Capital Attribution ASX Clear – default fund contributed by ASX (held in ASX Clear) 150.0 250.0 250.0 250.0 2
Slide 36: 7. Cash Market Clearing and Settlement Income Statements
7. Cash Market Clearing and Settlement Income Statements Cash Cash Cash Cash For personal use only Market Market Market Market Clearing Clearing Settlement Settlement FY16 FY15 FY16 FY15 $ Million $ Million $ Million $ Million Operating Revenue 54.3 47.5 48.5 45.1 Operating Expenses 11.5 10.7 13.4 1
Slide 37: 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 (18 August 2016). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 38: Thank you
For personal use only Thank you