Slide 1: ASX Limited – Presentation to Investors (cover letter)
7 September 2015 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – PRESENTATIO
Slide 2: ASX Full-Year 2015 Investor Roadshow
ASX Full-Year 2015 Investor Roadshow For personal use only Elmer Funke Kupper, Managing Director and CEO September 2015
Slide 3: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date For personal use only of this presentation (September 2015). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 4: Financial Results FY15
Financial Results FY15 For personal use only Underlying Underlying Statutory Underlying Revenues EBITDA DPS Expenses NPAT NPAT EPS $700.7m $540.6m 187.4c $160.1m $403.2m $397.8m 208.4c 6.4% 7.1% 5.2% (4.2%) 5.2% 3.8% 5.0% • Positive revenue performance ‒ Impact of fee reductions in Derivatives busin
Slide 5: Income Statement
Income Statement For personal use only FY15 FY14 % Variance $ Million $ Million Operating Revenues 700.7 658.3 6.4% Operating Expenses 160.1 153.6 (4.2%) EBITDA 540.6 504.7 7.1% Depreciation and Amortisation 38.6 33.8 (14.3%) EBIT 502.0 470.9 6.6% Interest and Dividend 71.9 70.7 1.8% Underlying Prof
Slide 6: Revenue Movement ($M)
Revenue Movement ($M) For personal use only Interest rate and electricity futures fee reductions 4.2 0.8 700.7 4.4 4.9 7.9 (1.5) 21.7 658.3 Up Up Down Up Up Up Up 13.9% 6.7% 0.7% 7.0% 8.3% 10.4% 4.8% Operating Revenues Up 6.4% FY14 Listings Cash Derivatives Information Technical Austraclear Other FY
Slide 7: Attractive Business Mix
Attractive Business Mix For personal use only FY15 Revenues (100% = A$700.7 million) Other, • Domestic leader in all segments, Asian Austraclear, 2% leader in A$ derivatives Technical 7% Services, Listings and 8% Issuer • Cash markets 18% of total revenues Revenue, (trading, clearing and settlement)
Slide 8: Key Themes
Key Themes For personal use only Global Leader in A$ and NZ$ • Innovate in fragmented equity market Financial Markets • Build on leadership in A$ and NZ$ derivatives markets • Grow listings franchise Investment Supermarket • Extend suite of investment options – equities, debt, funds • Deliver compet
Slide 9: Listings and Issuer Services
Listings and Issuer Services Highlights Areas of Focus For personal use only Revenue $176.6 million, up 13.9% Grow Listings Franchise • All revenue categories higher • New Zealand – simplify dual listings process • 120 IPOs; IPO capital $38.9 billion, up 40.7% • Tech sector – 30 listings1 in FY15, 1
Slide 10: Cash Market
Cash Market Highlights Areas of Focus For personal use only Revenue $125.2 million, up 6.7% Trading • Trading $35.5 million, up 7.4%, clearing $47.1 million, up • On-market trading market share 90% (91% pcp) 9.2%, settlement $42.6 million, up 3.6% • Growth in ASX auctions and Centre Point; together
Slide 11: Derivatives and OTC Clearing
Derivatives and OTC Clearing Highlights Areas of Focus For personal use only Revenue $206.2 million, down 0.7% Product Development • Futures $181.6 million, down 2.1% • Energy – gas futures April 2015 ‒ Contracts traded up 7.0% • ETOs – Flexclear OTC Clearing May 2015 ‒ Higher rebates and fee reduct
Slide 12: Impact of Fee Changes on Futures Revenue ($M)
Impact of Fee Changes on Futures Revenue ($M)1 For personal use only 14.6 (7.4) (17.8) 185.5 6.7 181.6 • Fee reductions in electricity (1 July 2014) and interest rate futures (1 October 2014) • FY15 part-year impact $17.8 million, partially offset by the removal of $6.7 million of other rebates • FY
Slide 13: Information and Technical Services
Information and Technical Services Highlights Areas of Focus For personal use only Information Services $73.7 million, up 7.0% Information Services • Pricing changes implemented 1 July 2014 • Multi-year enterprise agreements established with key Technical Services $57.3 million, up 8.3% clients • Ho
Slide 14: Austraclear
Austraclear Highlights Areas of Focus For personal use only Revenue $45.3 million, up 10.4% Renminbi Settlement Service • Transaction volumes down 1.9% • Launched July 2014 • Average balances up 13.3% to $1.7 trillion • Provides real-time RMB settlement facility • Number of debt issuances up 10.6% •
Slide 15: Focus on Customers
Focus on Customers For personal use only Customer Experience Engagement and Alignment Improving Capabilities Investments • New ASX Customer Experience Team in place, member • Acquired 49% stake in the Yieldbroker bond/swap of Group Executive Committee platform, remainder owned by key ASX customers S
Slide 16: Impact of Fee Reductions on FY16 Revenues
Impact of Fee Reductions on FY16 Revenues For personal use only Derivative fee reductions were implemented replacing other rebate schemes Variance FY15 FY16 FY15-FY16 $ Million $ Million $ Million Derivatives and OTC Markets • FY16 full-year impact Fee Reductions 17.8 24.0 estimated at recent activi
Slide 17: Interest and Dividend Income
Interest and Dividend Income For personal use only FY15 FY14 % Highlights $ Million $ Million Variance • Total net interest income down 1.1% ASX Group Net • ASX Group net interest income down 5.7% as 26.9 28.6 (5.7%) market rates fell Interest Income • Net interest earned on collateral balances up 3
Slide 18: Expenses ($M)
Expenses ($M) For personal use only Highlights 160.1 153.6 146.2 • Staff costs up 4.4% 141.1 63.7 135.5 59.0 61.2 ‒ Higher salaries and incentives 58.5 56.7 ‒ Higher recruitment costs ‒ Average headcount down 1.9% to 524 FTEs 96.4 • Other costs up 4.1% 92.4 87.2 82.6 78.8 • Significant items restruc
Slide 19: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 50.2 45-50 43.2 44.4 39.1 38.9 FY11 FY12 FY13 FY14 FY15 FY16 Normal ($118.3m) ALC (Data & Customer Support Centre $42.5m) Post-Trade ($55.0m)1 Highlights • Average total capital expenditure since 2011: $43 million per annum • Capital expenditure guidanc
Slide 20: Infrastructure Investment Program
Infrastructure Investment Program For personal use only Cash Futures Trading Market Trading platforms Trading Cash Equity Clearing/ Clearing & Phase I (Feb 15 – Dec 16) Options settlement Settlement Clearing platforms (CHESS)1 Market Market integrity Risk Phase II Monitoring and risk Management plat
Slide 21: Regulatory Environment
Regulatory Environment For personal use only Developments – Last Three Years Outstanding – Clearing Market Structure Investors Compelling case for single clearing facility • Equity market regulations supporting end-investors • Most efficient model for market the size of Australia Systemic risk • Eff
Slide 22: Business Structure From July 2015
Business Structure From 1 July 2015 For personal use only Peter Hiom – Deputy CEO Listings and Issuer Trading Derivatives and OTC Equities Services Services Markets Post-Trade Scope Scope Scope Scope • Listings • Equities trading • Futures • Equities Clearing • Issuer Services • Information Services
Slide 23: Financial Results FY15
Financial Results FY15 For personal use only Underlying Underlying Statutory Underlying Revenues EBITDA DPS Expenses NPAT NPAT EPS $700.7m $540.6m 187.4c $160.1m $403.2m $397.8m 208.4c 6.4% 7.1% 5.2% (4.2%) 5.2% 3.8% 5.0% • Positive revenue performance ‒ Impact of fee reductions in Derivatives busin
Slide 24: Globally connected
For personal use only Globally connected World class ¢ Internationally competitive Customer driven WWW.aSxX.COM.aU Customer service 131 ASX (131 279) | International +61 29338 000