Iress Limited · ASX:IRE
Iress — IRESS Market Technology — H1 2006 Earnings Presentation
24 slides from Iress's earnings presentation, Aug 25, 2006
Slide 1: Cover letter: 2006 Half Year Results Investor Presentation
25 August 2006 ir The Manager MARKET TECHNOLOGY Company Announcements Office Australian Stock Exchange 10" Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam 2006 Half Year Results — Investor Presentation Please find attached a copy of an investor presentation on the Compan
Slide 2: Results Presentation Half Year to 30 June 2006
MARKET TECHNOLOGY Results Presentation Half Year to 30% June 2006 ress MARKET TECHNOLOGY August 2006
Slide 3: Group Performance
iress MARKET TECHNOLOGY Group Performance Adjusted Group Profit $14.168 m Up $2.331 million, 19.7% on PCP Segment Contribution against PCP >Information Services Contribution $2.161 93% >XPLAN Contribution $0.560 24% >Canada JV ($0.390) (17)% $2.331 100% » Interim dividend 8.0 cents, fully franked (2
Slide 4: Segment Performance Against Prior Half
iress MARKET TECHNOLOGY Segment Performance Against Prior Half Information Services ve Financial Planning Canadian JV v +» Strategic Amortisation > XPLAN > Canadian Ops +» Non Recurring >» “Published” PAT 8.4% increase in profit 42% increase in profit $0.164m increase in loss to $0.272m as fixed cos
Slide 5: Review of Group Subscription Rev
iress MARKET TECHNOLOGY $m 37.0 32.0 4 27.0 22.0 170 120 Review of Group Subscription Rev H1'01 H2'01 Hi02 202,103 2038104 204 1105 lress Recurring i Xplan Recurring B Canada Recurring H2'05 H106
Slide 6: PCP change in Group Sub Rev
iress MARKET TECHNOLOGY PCP change in Group Sub Rev Acquisition of 2nd 50% of Cad JV in ApriP06 4.0 5 Acquisition of 3.5 4 initial 50% of Cad JVin 3.0 4 April’04 26 4 2.0 5 Xplan & acquired Mar 1.6 4 03 as siart up operation 1.0 4 0.5 4 H2'01 H1'02 H2'02 H1'03 H2'03 H1'04 (0.5) - H204 A105 = H2'05 R
Slide 7: Review of Operations and Outlook
iress MARKET TECHNOLOGY Review of Operations and Outlook > Half on half growth maintains consistent trend of recent years » Trading activity levels remain consistently strong across all levels (institutional, retail and online) » Organic revenue result with few specific highlights. Growth of existin
Slide 8: Review of Info Services Rev
iress MARKET TECHNOLOGY Review of Info Services Rev 30 - 25 7 20 7 15 4 $m Subsciption Revenue News, Royalty & Comms H1’01 to H1’06
Slide 9: Info Services Rev — split by type
6 I¥ESS || Info Services Rev — split by type. 25 4 lress+ Services Trading Services Hardware/DR Other News, Royalty & Comms H1’01 to H1’06
Slide 10: PCP change in Info Services Rev
iress MARKET TECHNOLOGY PCP change in Info Services Rev 3.5 4 3.0 4 2.5 4 2.0 | 1.5 4 $m 1.0 4 0.5 4 H2'01 (0.5) - H1'02, -H2'02_—sH103 ier H1'04 -H2'04— H1'05— ss H205-—s H11'06 lress+ Services U Trading Services @ Hardware/DR @ Other @ News, Royalty & Comm
Slide 11: Core Business — ASX ITS Project
iress MARKET TECHNOLOGY Core Business — ASX ITS Project =» Development, product and operations consumed with the ITS project. For both us and our clients, other initiatives have been on hold to a significant extent. => Development is complete for all phases apart from small tweaks as market wide tes
Slide 12: Core Business: New Projects
iress MARKET TECHNOLOGY Core Business : New Projects > 10S Plus > Australian implementation of the Canada IOS re-write » Execution terminal, operator tools focus > OTS will assist in SEATS migration > FIX Plus >» Re-developed FIX engine linked to IOS Plus > Order of magnitude increase in throughput.
Slide 13: Core Business: New Projects
iress MARKET TECHNOLOGY Core Business : New Projects > FTS Plus » FTS well entrenched with local fund managers but strengths are domestic equities and derivatives » Developing international multi-currency capability plus better support of fixed income securities » Release targeted for H1 07 will mak
Slide 14: Daily Trades on SEATS (ASX)
Daily Trades on SEATS (ASX) 250 5 Thousands Ny o oS 150 - 100 - 50 5 T T T T 98 99 00 01 02 03 04 05
Slide 15: Financial Planning - XPLAN
6 eae Financial Planning - XPLAN > Another excellent performance with strong revenue growth despite implementing a major roll-out. > Organic growth continues to be strong > Client acceptance feeds growth, virtually zero churn > On-line model fully established and a major positive » Significant clien
Slide 16: Review of Xplan Subscription Rev
iress MARKET TECHNOLOGY Review of Xplan Subscription Rev 3.5 4 3.0 - 2.5 5 2.0 - $m 1.5 - 1.0 - 0.5 - — | Xplan Recurring Xplan Non-recurring H1’03 to H1’06
Slide 17: Xplan Gross Operational Revenue
iress MARKET TECHNOLOGY Xplan Gross Operational Revenue Thousands 700 4 600 500 + 400 4 300 200 100 4 0 _/ / a Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Ju-05 Oct-05 Jan-06 Apr-06 Jul-06
Slide 18: PCP change in Xplan Subscription Rev
mess|| PCP change in Xplan Subscription MARKET TECHNOLOGY Rev H1'03 H2'03 H1'04 H2'04 H1'05 H2'05 H1'06 & Recurring @ Non-recurring
Slide 19: Canadian Operations
iress MARKET TECHNOLOGY Canadian Operations Increase in Scale and Importance => Purchase of ITG’s interest in the joint venture took IRESS to 100%, increasing our exposure and giving us the ability to fully focus the business on our goals. > Arrangement with REUTERS Canada for their CX trader user b
Slide 20: Canadian Operations — Key Points
6 #¥@SS'! Canadian Operations — Key Points > Intensive development to facilitate conversion since CX trader deal signed. > Version with features sufficient to convert most CX Traders in test and will facilitate conversions in October. > First CX clients already signed to convert > Very strong suppor
Slide 21: Dividends and Board
iress MARKET TECHNOLOGY Dividends and Board » Interim Dividend 8.0 cents (6.5 cents previous ) > Full franked » Payable 29th September 2006 > Franking credit balance $10.024m =» Cameron O'Reilly has resigned from the IRESS board. New appointment likely this year.
Slide 22: Capital Management
iress MARKET TECHNOLOGY Capital Management = Continued high dividend payout > 80% of earnings before strategic charges => Encouraging opportunities for rationalisation in Canadian marketplace > The company remains open to acquisition and joint venture opportunities where these are consistent with ou
Slide 23: Headcount
iress MARKET TECHNOLOGY Headcount Staff related costs are our largest operating expense. Canada headcount growth 90+% due to acquisition of control, balance represents underlying increase. 200 5 180 + 160 + 140 5 120 + Full time equivalent staff 100 | 80 | | 60 4 | 40 + 20 4 | 7 Dec- Jun-02 Dec- Jun
Slide 24: jress
jress MARKET TECHNOLOGY mess MARKET TECHNOLOGY
IRESS Market Technology — H1 2006 Earnings Presentation on 6ix