Iress Limited · ASX:IRE
Iress — dbAccess Australia Corporate Day 2019
29 slides from Iress's conference presentation, Mar 11, 2019
Slide 1: ASX cover letter: Investor Briefing
The Manager Company Announcements Office Australian Stock Exchange Exchange Centre For personal use only 20 Bridge Street SYDNEY NSW 2000 11 March 2019 Dear Sir or Madam RE: Investor Briefing Please find attached for release to the market an Investor Briefing which Andrew Walsh, CEO, and John Harris
Slide 2: dbAccess Australia Corporate Day 2019
For personal use only iress.com dbAccess Australia Corporate 11-12 March 2019 London, 1 Day 2019
Slide 3: Agenda
Agenda For personal use only Who we are 3 Strategy & Growth Opportunities 9 Segment overview 14 2018 Results 19 2019 Outlook 24 Andrew Walsh John Harris Managing Director & CEO Chief Financial Officer iress.com 2
Slide 4: Who we are
For personal use only iress.com 3 Who we are
Slide 5: World-leading solutions for trading & market data, advice, super and lending
World-leading solutions for trading & market data, advice, super and lending For personal use only ● IRESS (IRE.ASX) is an independent financial technology provider of trading and market data, advice, superannuation and lending solutions ● Recurring subscription revenue accounts for approximately 90
Slide 6: Robust business model underpins market-leading positions
Robust business model underpins market-leading positions For personal use only Open and modular software solutions that are central to our clients’ business Subscription-based model with ~90% revenue recurring Market-leading product functionality and focus on user experience Targeted investment to c
Slide 7: Our competitive edge across markets comes from...
Our competitive edge across markets comes from... For personal use only People Relationships Product Scale Long-term, deep and Market-leading solutions, On-the-ground teams Global IP for local delivery trusted client partnerships broad integrated offering Global IP available to clients 450+ people i
Slide 8: Strong track record of delivering revenue and earnings growth
Strong track record of delivering revenue and earnings growth For personal use only Operating revenue Segment profit NPAT iress.com 7
Slide 9: Sustained dividends over time. TSR over years
Sustained dividends over time. TSR over 10 years 236%, over 5 years 61% For personal use only Reported EPS Dividend per share Underlying EPS (2) Share Price +32% Key 12.80 a Investment in organic expansion (UK, SA Wealth, Asia) Shares issued to b acquire Avelo in the UK Shares issued to 5.0 c acquir
Slide 10: Strategy & Growth Opportunities
For personal use only iress.com Strategy & Growth 9 Opportunities
Slide 11: Where is the world going?
Where is the world going? For personal use only Demand for digitally-enabled multi-channel experience increasing Regulatory volume remains at unprecedented levels. More to come Price awareness driving downward pressure on fees Ongoing global regulatory change focused on improving transparency, Agein
Slide 12: Retail convergence accelerating
Retail convergence accelerating For personal use only Broking Broking and advice Advice ● Advisory services Client management ● Client management ● Investment services Advisory services ● Research ● Research Discretionary management ● Business automation ● Portfolio management Order management & exe
Slide 13: What this means for the next five years
What this means for the next five years For personal use only Trading & Market Data Advice Lending ● Trading & Market data IP and expertise ● Growth in highly integrated, automated, ● Highly integrated advice proposition with being leveraged across segments and multi-channel business models evident
Slide 14: IRESS is well placed for continued success in a changing financial services sector
IRESS is well placed for continued success in a changing financial services sector For personal use only Key drivers of growth Increasing regulatory Market consolidation Demand for broader Demand for software that Increasing requirements increasing business integrated solutions to increases efficien
Slide 15: Segment overview
For personal use only iress.com Segment 14 overview
Slide 16: Scalable technology and operating model
Scalable technology and operating model For personal use only Total Segment Overview Revenue % of group Recurring % 2018 ($A) 2018: Strong growth across wealth, superannuation and data analytics solutions. Increasing interest in integrated wealth and trading solutions due to retail broking / wealth
Slide 17: Long term growth from expansion across regions and into adjacencies
Long term growth from expansion across regions and into adjacencies For personal use only APAC South Africa Revenue across operating segments Local currency Lending United Kingdom Canada iress.com 16
Slide 18: A diverse Australian retail client base underpins growth opportunity in APAC
A diverse Australian retail client base underpins growth opportunity in APAC For personal use only Distribution of Australian retail revenue - 2018 ● IRESS well placed to assist clients navigate regulatory and industry change. Compliance a clear priority over productivity at this time. ● Super fund
Slide 19: IRESS operates across multiple client segments in an evolving UK market
IRESS operates across multiple client segments in an evolving UK market For personal use only Distribution of UK revenue - 2018 ● IRESS has growth opportunities across multiple client segments in the UK. ● Converging financial services sector (Advice and Broking) provides unique growth opportunity a
Slide 20: 2018 Results
For personal use only iress.com 19 2018 Results
Slide 21: 2018 financial highlights
2018 financial highlights For personal use only Revenue growth: +8% (constant currency: +6%) Growth driven by Australia and the UK Group Segment Profit growth: +10% (constant currency: +8%) Ahead of 2018 guidance (3-7% constant currency Segment Profit growth). Margin +1% ANZ Wealth Management revenu
Slide 22: Key 2018 strategic achievements
Key 2018 strategic achievements For personal use only Service clients exceptionally Identify and deliver To be essential to scale benefits our clients’ success through continued product investment ● Strong ongoing progress with client ● Continuous delivery improving upgrade ● New digital personal ad
Slide 23: +8% reported revenue growth and positive operating leverage
+8% reported revenue growth and positive operating leverage For personal use only $AUDm - Reported 2017 2018 Change ● Revenue growth of +8% (+6% Operating Revenue 430.0 464.6 +8% constant currency) reflects strong Segment Profit 125.4 137.7 +10% overall performance, with stronger second half perform
Slide 24: Financial results reflect targeted investment
Financial results reflect targeted investment For personal use only AUD (m) 2017 2018 Change Targeted non-operating costs in line with guidance: Operating Revenue 430.0 464.6 +8% ● Team restructuring delivering efficiency, quality and operational leverage Operating Costs (304.6) (326.9) +7% ● Change
Slide 25: 2019 Outlook
For personal use only iress.com 24 2019 Outlook
Slide 26: Strategic priorities in 2019
Strategic priorities in 2019 For personal use only Service clients To be essential to Identify and deliver Attract and retain the exceptionally our clients’ success scale benefits best people through through continued culture, environment product investment and reward ● Consistent systems and ● Cont
Slide 27: 2019 financial outlook
2019 financial outlook For personal use only ● IRESS expects reported Segment Profit growth in ● Following targeted and elevated investment in 2019 of between 6% and 11% ($146m - $153m), on recent years, non-operating costs are expected to a constant 2018 currency basis(1, 2) including the be substa
Slide 28: 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 29: Contact
For personal use only Delivering outcomes today Contact developing Andrew Walsh, CEO John Harris CFO for tomorrow designing +61 3 9018 5800 iress.com for the future iress.com 28