Slide 1: ASX release cover letter
For personal use only ASX Market Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 18 August 2016 IRESS LIMITED - INFORMATION FOR RELEASE TO THE MARKET As required by the Listing Rules, IRESS encloses for release to the market a presentation to be provided to investors today at 09.30
Slide 2: 2016 Half Year Results
For personal use only 2016 Half Year Results 30 June 2016 Andrew Walsh - Managing Director & CEO John Harris - CFO 18 August 2016 iress.com 1
Slide 3: Financial summary
Financial summary Strong performance, progress and delivery against strategy For personal use only 1H16 / 1H16 / Operating Revenue $Am 1H15 2H15 1H16 1H15 2H15 1H16 194.3 % % 2H15 188.3 Operating Revenue 173.2 188.3 194.3 p12% p3% 1H15 173.2 Constant currency basis (3) 177.7 188.3 202.7 p14% p8% Seg
Slide 4: Segmental financial summary
Segmental financial summary Core business strength, supported by strong demand and acquisitions For personal use only Operating Revenue • Resilient Financial Markets Australia Revenue. 1H16 v 1H15 1H16 v 2H15 (local currency) A&NZ FM 1% p 1% p • Growth in Australian Wealth continues, reflecting broa
Slide 5: Contribution by segment
Contribution by segment Sustainable underlying revenue and segment profit growth For personal use only Operating Revenue 1.3 (8.3) 10.6 1.3 (0.9) 2.0 (0.0) 0.3 194.3 188.3 2H15 Revenue ANZ FM ANZ WM Asia RSA Canada UK (ex Lending FX 1H16 Revenue Lending) Segment Profit 1.3 (2.0) 1.5 0.5 (0.6) 0.2 (0
Slide 6: Segment profit margins
Segment profit margins For personal use only % Operating Revenue 1H14 2H14 2014 1H15 2H15 2015 1H16 ANZ FM AUD 47% 46% 46% 43% 43% 43% 43% ANZ WM AUD 47% 44% 46% 46% 49% 48% 47% UK (ex Lending) GBP 20% 27% 23% 19% 24% 22% 23% South Africa ZAR 26% 32% 29% 33% 33% 33% 33% Canada CAD 30% 12% 21% 13% 13
Slide 7: Statutory financial results
Statutory financial results Strong cash flow, reduced funding costs For personal use only 1H16 / 1H16 / AUD (m) 1H15 2H15 1H16 1H15 2H15 Operating Revenue 173.2 188.3 194.3 p12% p3% • Non-recurring items primarily related Operating Costs 115.6 126.6 131.3 p13% p4% to post acquisition integration pro
Slide 8: Strong balance sheet, conservatively geared
Strong balance sheet, conservatively geared For personal use only AUD (m) June 2015 Dec 2015 June 2016 AUD (m) Dec 15 June 16 Cash 75.0 39.2 33.3 Cash 39.2 33.3 (5.9) Trade and other receivables 37.1 37.4 39.2 Borrowings (1) (202.4) (190.6) (11.8) Total current assets 112.0 76.6 72.5 Net debt 163.2
Slide 9: Sustainable cashflow and dividends
Sustainable cashflow and dividends For personal use only Operating Cash Flow 120 70 100 60 50 AUD (cents) 80 AUD (m) 40 60 30 40 20 20 10 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 Operating Cash Flow (LHS) H2 Operating Cash Flow (LHS) Operating Cash Flow Per Share (RHS) Dividends
Slide 10: Segment overview
For personal use only Segment overview iress.com 9
Slide 11: Australia & New Zealand - Financial markets
Australia & New Zealand - Financial markets Pleasing ongoing revenue resilience For personal use only 1H16 / 1H16 / • Revenue resilience continues with growth experienced AUD (m) 1H15 2H15 1H16 in H1. Opportunities in portfolio management in buy- 1H15 2H15 side and retail administration, offsetting
Slide 12: Australia & New Zealand - Wealth management
Australia & New Zealand - Wealth management Strong, ongoing wealth management demand For personal use only 1H16 / 1H16 / • Revenue reflects broad organic growth, new client wins, AUD (m) 1H15 2H15 1H16 implementation revenue. 1H15 2H15 • Some revenue timing impact of implementations and Operating Re
Slide 13: United Kingdom - (ex Lending)
United Kingdom - (ex Lending) Delivery and momentum; contribution of acquisitions For personal use only • Strong implementation momentum continues in H1, buoyed by the full 1H16 / 1H16 / half contribution of Proquote and Pulse. Recurring revenue represents GBP (m) 1H15 2H15 1H16 1H15 2H15 90+% of se
Slide 14: United Kingdom - Lending
United Kingdom - Lending Strong sales momentum For personal use only GBP (m) 1H15 2H15 1H16 1H16 / 1H16 / • First half result buoyed by MSO V1 revenue. 1H15 2H15 • MSO V2 sales and implementation activity remains Operating Revenue 8.6 7.5 8.1 q5% p 8% strong. Working with a number of significant ins
Slide 15: South Africa
South Africa Sustained demand and growth across product suite For personal use only • Continuing strong revenue and Segment Profit growth reflects ongoing 1H16 / 1H16 / momentum in the South African market and sustained demand for ZAR (m) 1H15 2H15 1H16 1H15 2H15 integrated suite of IRESS products a
Slide 16: Canada
Canada Challenging environment; diversifying efforts For personal use only • Financial Markets revenue decline reflects challenging 1H16 / 1H16 / industry conditions, particularly for institutional equity brokers, CAD (m) 1H15 2H15 1H16 1H15 2H15 with a number of firm closures, consolidation and cos
Slide 17: Asia
Asia Key project progress For personal use only 1H16 / 1H16 / • Stable CFD revenue. Focus on key cash equity AUD (m) 1H15 2H15 1H16 implementations and sales activity in first half. 1H15 2H15 Operating Revenue 1.2 1.4 1.3 p 13% q 3% • Maybank Kim Eng implementation remains key focus. First stage suc
Slide 18: Appendices
For personal use only Appendices iress.com 17
Slide 19: Depreciation & Amortisation
Depreciation & Amortisation For personal use only D&A - Operational 1H15 2H15 1H16 Depreciation Plant & Equipment 3.0 3.1 3.1 Amortisation Software (3rd Party Purchased) 2.0 2.1 2.1 Total 5.0 5.3 5.2 D&A – Acquisition Related 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Avelo 1.9 2.1 1.3 1.1 0.9 0.9 0.8
Slide 20: Disclaimer
Disclaimer For personal use only The material in this presentation is intended to be general background information on IRESS Limited and its activities, current at the date of the presentation. The information is provided in summary form and does not purport to be complete. It is not intended to be
Slide 21: Office locations and contact numbers
For personal use only AUSTRALIA NEW ZEALAND ASIA Melbourne | +61 3 9018 5800 Auckland | +64 9 300 5571 Hong Kong | +852 3965 3343 Sydney | +61 2 8273 7000 Wellington | +64 4 462 6850 Singapore | +65 6672 6288 Perth | +61 8 6211 5900 Brisbane | +61 7 3011 4700 Adelaide | +61 3 9018 5800 CANADA SOUTH