Slide 1: ASX cover letter for IRESS investor presentation
The Manager ASX Market Announcements Office For personal use only Australian Stock Exchange Exchange Centre 20 Bridge Street SYDNEY NSW 2000 11 September 2017 Dear Sir or Madam RE: ELECTRONIC LODGEMENT – IRESS LIMITED INVESTOR PRESENTATION Please find attached for market release an information pack
Slide 2: IRESS overview - CLSA Conference, September 2017
For personal use only IRESS IRESS overview overview CLSA CLSA Conference Conference September 2017 Andrew Walsh - Managing Director & CEO John Harris Andrew Walsh - CFO - Managing Director & CEO John Harris - CFO September 2017 iress.com 1
Slide 3: A brief introduction to IRESS
For personal use only A brief introduction to IRESS iress.com 2
Slide 4: About IRESS
About IRESS For personal use only IRESS (IRE.ASX) is an independent software IRESS’ clients are professional market participants vendor of integrated trading, market data, and intermediaries, who range in size and span global portfolio, wealth management and lending markets. solutions IRESS has ~900
Slide 5: Key elements of our business model
Key elements of our business model For personal use only • More than 90% of revenue is monthly recurring subscription-based revenue • Almost 50% of our people work on our products and technology (~25% revenue, A$100m reinvested pa) • All software development is expensed through the P&L • Modular and
Slide 6: Key drivers of growth
Key drivers of growth For personal use only Integrated wealth Market consolidation • Growth in highly integrated, multi-channel business • Increase in scale players through consolidation and focus on models evident. Vertically integrated service integration, control and flexibility providers(trading
Slide 7: Our strategic priorities
Our strategic priorities For personal use only Product & Technology People • Capitalising on the value of comprehensive connectivity • Attracting and retaining great talent • Ongoing integration of our internal capabilities and product • Creating a contagious and consistent culture components • Prov
Slide 8: Our unified technology capability
Our unified technology capability Financial Markets Wealth Management Lending For personal use only Market data and trading software Integrated wealth management Multi-channel mortgage sales and including order and execution platform offering client management, origination platform including SOLUTIO
Slide 9: Significant market share in chosen markets
Significant market share in chosen markets For personal use only Canada: 72% of retail and UK: 95% of Top100 wealth 39% of institutional sell-side managers. 65% of advised order flow mortgages & 25% of mortgages processed SE Asia: Leading provider Revenue: 4% of Group of CFD trading platforms People
Slide 10: Strong revenue growth & diversification over time
Strong revenue growth & diversification over time For personal use only 2006: $93m 2011: $204m 2016: $390m Lending 9% 120% 92% Revenue growth Revenue growth 7% of revenue generated 22% of revenue generated 47% of revenue generated outside Australia outside Australia outside Australia iress.com 9
Slide 11: Sustainable cash flow and return to shareholders
Sustainable cash flow and return to shareholders For personal use only 110% 120 100 100% 100 80 90% 80 AUD (cents) 60 AUD (m) 60 80% 40 40 70% 20 20 60% 0 0 50% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H14 2H14 1H15 2H15 1H16 2H16 1H17 H1 (LHS) H2 (LHS) Cashflow Per Share (RHS) DIVIDENDS P
Slide 12: Organic growth supported by disciplined acquisition
Organic growth supported by disciplined acquisition For personal use only Operating Revenue 389.7 361.5 329.0 2017 250.6 half year 204.5 206.7 211.8 179.8 163.8 169.5 134.5 92.7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD June FY06 FY07 FY08 FY09 FY10 FY11 FY13 FY15 FY16 1H17 • 100% o
Slide 13: Key metrics all above ASX averages
Key metrics all above ASX 200 averages Last 10 year share price performance against the ASX200 High returns For personal use only (1 January 2007 – 30 June 2017) 125% TSR (10 year) 200 Compared to 56% 80.8% ASX200 (to 31 December 2016) 160 Steady dividends $0.40+ per share in last 5 years (3-5% yiel
Slide 14: Evolving wealth management
For personal use only Evolving wealth management iress.com 13
Slide 15: Integrated wealth management: convergence from broking
Integrated wealth management: convergence from broking Stockbroking models have evolved through market structure, client expectation, and revenue pressure. Increasingly, For personal use only adding services has been evident as participants have sought to address client need and retain clients / rev
Slide 16: Integrated wealth management: convergence from planning
Integrated wealth management: convergence from planning Planning / advice models have evolved through regulatory reform, market structure, client expectation, and revenue For personal use only pressure. As remuneration structures have changed, a trend to integrated wealth models is evident. Tax Spec
Slide 17: IRESS' functional breadth: uniquely aligned to macro trends
IRESS’ functional breadth: uniquely aligned to these macro trends For personal use only IRESS integrated technology drives efficiency, lowers risk and simplifies client technology stack Broking (FM) Integrated Wealth Advice (WM) • Advisory Services Client Management • Client Management • Investment
Slide 18: The future of advice: supporting multiple advice channels
The future of advice: supporting multiple advice channels For personal use only Multiple advice channels and ability to switch People don’t stick to one channel forever and don’t want to switch advice providers as their needs evolve. Digital solutions are relevant to all channels, but in different w
Slide 19: June 2017 Half Year Results
For personal use only 30 June 2017 Half Year Results iress.com 18
Slide 20: HY17 Overview - Key business highlights
HY17 Overview - Key business highlights Strong progress • Deployment to CBA on XPLAN and XPLAN Prime; conversion of Prime client pipeline commenced. For personal use only on key client • ViewPoint roll out commenced in Australia with successful delivery to nabtrade. product milestones and • Successf
Slide 21: Strong result in 2016 underpinned by strategic, focused growth
Strong result in 2016 underpinned by strategic, focused growth For personal use only $AUDm 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Operating Revenue 194.3 195.4 211.8 9% 8% Constant currency basis (3) 185.5 195.4 211.7 14% 8% Segment Profit (1) 63.1 60.4 59.6 6% 1% Constant currency basis (3) 6
Slide 22: Client segment overview
Client segment overview For personal use only Resilient revenue reflects quality of product and relationships in both Australia and Asia. Continuing sell-side cost pressure in Australia expected to have more visible revenue impact in second half of 2017 and into 2018. Delivery to Maybank Kim Eng in
Slide 23: Results reflect client delivery & product investment
Results reflect client delivery & product investment For personal use only AUD (m) 1H16 2H16 1H17 1H17 / 1H16 1H17 / 2H16 Non-operating costs are primarily: Operating Revenue 194.3 195.4 211.8 9% 8% • Integration costs associated with the businesses acquired made in 2015 and 2016, inline with prev
Slide 24: Strong balance sheet, conservatively geared
Strong balance sheet, conservatively geared For personal use only AUD (m) Jun 2016 Dec 2016 Jun 2017 AUD (m) Jun 2016 Dec 2016 Jun 2017 Cash 33.3 23.0 20.7 Cash 33.3 23.0 20.7 Trade and other receivables 39.2 50.1 60.2 Borrowings (1) (190.6) (179.1) (195.7) Assets held for sale - - 3.3 Net debt 157.
Slide 25: 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 26: Office contact details
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