Iress Limited · ASX:IRE
Iress — IRESS Market Technology — FY2002 Earnings Presentation
12 slides from Iress's earnings presentation, Feb 28, 2003
Slide 1: Final Results February 2003
€ OHIO ress MARKET TECHNOLOGY Final Results February 2003 Peter Dunai — Managing Director
Slide 2: 2002 Underlying Results
MARKET TECRNCLCT 2002 Underlying Results ra 030 200 7 £ Be Up - 48.9 489 406 3? ofit befe 14.2 228 17.6 UP . ‘© 29.5% Up nnd 9.8 15.9 12.2 30 a9, 11.88 Up EPS - Dilutec 9.461 15.363 5 293% Up B HESERLO 10.2 10 2 6 70.0%
Slide 3: IRESS 2002 excluding IWL & Beacon
MARKET TECRNCLCT amortisation IRESS — 2002 excluding IWL & Beacon Millions $ 4o 4 30 20 4 1998 1999 2000 2004 2002 @ Revenue Profit before tax Eamings
Slide 4: 2002 — the wrap up
MARKET TECRNCLCT 2002 — the wrap up => Extremely solid result in a tough year > Beacon transaction successfully completed > IWL merger - a disappointment but the right decision > New IRESS version (Felix completed) > IOS retail product released => Key Fund Managers cut over to FTS.
Slide 5: Xplan Acquisition Details
MARKET TECRNCLCT Xplan Acquisition Details > Purchase of 100% of Xplan Technology for $5.1 million > Further investment in scaling up Xplan of $1.0 to $1.5 million in the first year and $0.7 to $1.4 in the second year > Second payment in three years contingent on a profitable operation and only mate
Slide 6: Xplan Strengths
MARKET TECRNCLCT Xplan Strengths »}» Widely regarded as the strong contender to win substantial market share in desk top financial planning software. > Principals have longstanding experience in the sector with strong industry knowledge and client relationships > Modern technology base: product refl
Slide 7: Wealth Management Strategy
MARKET TECRNCLCT Wealth Management Strategy > Xplan the cornerstone of broader IRESS wealth management strategy including: > desk top solutions > transaction management > industry connectivity ~» Xplan’s suite plus IRESS transaction routing and processing middleware is the core of a competitive comp
Slide 8: On Market Share Buy Back
MARKET TECRNCLCT On Market Share Buy Back > Despite Xplan the company retains considerable excess capital capacity => Recent prices produce a pre-tax earnings yield of greater than 12% > Directors have agreed to a $10 million buy back program over the next 12 months => No impact on any growth or acq
Slide 9: Current Trading
MARKET TECRNCLCT Current Trading > No end in sight to financial services recession > Revenue loss through client rationalisation & downsizing continues as it has since end 2000 > Net revenue gains in 2003 have more than offset Q4 decline > Revenue risks remain but on current trading 2003 should be a
Slide 10: Products with Revenue Potential
MARKET TECRNCLCT Products with Revenue Potential > Electronic Trade Confirmations (ETC’s) — now on test servers at brokers > Options Order Routing - TMC’s completed > SYCOM replacement » Spread matrix developed in latest version - Felix > RMS » Market making tool for the warrants and ETO markets. >
Slide 11: Medium Term Growth
MARKET TECRNCLCT Medium Term Growth » Xplan is a substantial start to our wealth management goals. Further investment would be considered for the right opportunity. *» Hong Kong progress has been slow given the difficult environment. Discussions continue on joint venture opportunities. > A range of
Slide 12: HES EY
€ HES EY ress MARKET TECHNOLOGY
IRESS Market Technology — FY2002 Earnings Presentation on 6ix