Australian Bond Exchange Holdings Ltd. · ASX:ABE
Australian Bond Exchange — Shareholder Meeting (November 2024)
34 slides from Australian Bond Exchange's shareholder meeting presentation, Nov 29, 2024
Slide 1: 2024 Annual General Meeting - CEO's Address and Presentation
Australian Bond Exchange Holdings Ltd. Level 19, 15 Castlereagh Street, Sydney NSW 2000 P.O. Box R445, Royal Exchange NSW 1225 ACN 629 543 193 | AFSL 484 453 Telephone: (02) 8076 9343 support@bondexchange.com.au www.bondexchange.com.au 29 November 2024 Australian Bond Exchange Holdings Limited 2024
Slide 2: CEO Address: Remembering who we are
Australian Bond Exchange Pty. Ltd. Level 19, 1 O’Connell Street, Sydney 2000 P.O. Box R445, Royal Exchange NSW 1225 ABN 73 605 038 935 | AFSL 484 453 Telephone: (02) 8076 9343 admin@bondexchange.com.au www.bondexchange.com.au 29 November 2024 CEO ADDRESS: BRADLEY MCCOSKER Thank you, Anthony, For per
Slide 3: CEO Address: Solving four main problems
This has led to significant advances in corporate credit analytics and also in compliance automation. The AI development, of course, is in addition to our transaction technology, which has seen us be involved with the Reserve Bank of Australia with its central bank digital currency trials and also o
Slide 4: CEO Address: Reducing transaction costs and market environment
Reduce Transaction Costs In addition to achieving a good price for investors it is also important to ensure that you can create a transaction and settlement process that remains profitable at smaller trade sizes. To that end, we developed a fast and efficient transaction and custodial management sys
Slide 5: CEO Address: SMSF bond allocation opportunity
This capital is likely to shift to more secure and less volatile assets with a good risk return profile, underpinning the rebalancing from equities towards bonds. Each 1% step change in SMSF bond holdings, i.e. from 1.2% to 2.2% translates into $9.57 billion of additional retail bond purchases. If w
Slide 6: CEO Address: Revenue streams
From advisory right through to the traditional bit off a spread of liquidity provider in the OTC market, but also because of the hybrid model that the Australian Bond Exchange has, we can also generate multiple income streams across exchange style fee structures. This includes transaction data, admi
Slide 7: CEO Address: Verticalization and systematic change
Thirdly, we commenced the verticalization process. This was a restructure of the organisation to offer products and services to cater to the specific requirements of the industry we service. This was to achieve optimal efficiency for growth which was being hindered by the model we previously had. Th
Slide 8: CEO Address: Balance sheet review
We also significantly reduced our headcount during the year, where we exited employees who were not contributing to the growth and profitability of the Company. The leaner business that has resulted from these actions is a better result for shareholders. We remain confident in the fundamentals of ou
Slide 9: CEO Address: CBDC trial and market opportunity
Of course, growth is still necessary for a small company like ours but that growth needs to be tempered with the necessary mindfulness that additional revenue needs to flow through to the bottom line. I do get asked from time to time about the correlation between. Transaction technologies such as th
Slide 10: CEO Address: Outlook
We are also seeing the issuance in corporate debt growing even with higher interest rates and the amount outstanding is certainly enough to supply the demand that is coming. The popularity of Market Linked Securities that we've created have shown that we have the skills and the understanding of the
Slide 11: Investing in a Secure and Growing Future
Australian Bond Exchange Bitlice Holdings Limited Investing in a Secure and Growing Future 29 NoVember 2024
Slide 12: Agenda
X ausTRALIAN BOND EXCHANGE Agenda ¢ Chair Welcome * CEO Address * Formal Business ¢ Shareholder Questions 2
Slide 13: Anthony Hartman, Meeting Chair
For personal use only Anthony Hartman Meeting Chair
Slide 14: Board of Directors
Board of Directors Anthony Hartman Independent Non-executive Director Bradley McCosker Managing Director & Chief Executive Officer X ausTRALiAN BOND EXCHANGE Michael UVanderdonk Director & Chief Technology Officer
Slide 15: CEO Bradley McCosker
For personal use only CEO Bradley McCosker
Slide 16: Our Mission and Strategy
For personal use only Our Mission: Provide equal access to financial products and markets for all investors. Our Strategy: Our Use our proprietary technology to remove barriers to mission entry that have limited investor access to global financial markets. Our strategy What we do today: What we do O
Slide 17: Product + Network + Technology = Growth
For personal use only $6.2B+ $14M+ PRIMARY ISSUANCE AVERAGE DAILY PLACEMENT SINCE VOLUME SINCE INCEPTION INCEPTION PRODUCT + NETWORK + TECHNOLOGY = GROWTH 50+ AI 81% 700+ WHOLESALE CAGR SECURITIES CREDIT & 2017-2024 INSTITUTIONS TRADED GLOBALLY COMPLIANCE txn volume 17+ MARKET 2,800+ CBDC 55% LINKED
Slide 18: Identify Products, Ensure Protection, Source Liquidity, Reduce Costs
For personal use only Identify Ensure Reduce Popular Investor Source Transaction Products Protection Liquidity Costs Commenced B2C Created “Quotation Leveraged existing Designed transaction broking business to Rules” based on relationships with and settlement process obtain direct Credit Risk & inve
Slide 19: Market Environment Since Launch
For personal use only Since we commenced, we have experienced a once in a 100-year pandemic, a reduction in interest rates (the very thing we were selling) to zero, thousands of pages of regulatory changes, and technology advances never experienced by humanity before. The effects of COVID were signi
Slide 20: Bond Demand
For personal use only Bond Demand Total investible assets of Australian Self Managed Superannuation Funds (SMSFs) surpassed A$950 billion Only 1.2% of SMSF assets, and 13.3% of all retirement assets are held in bills and bonds: o Australians aged 60 years old and over account for approximately 5
Slide 21: Total Addressable Market and ABE Opportunities
Total addressable market Illustrative ABE Opportunities Revenue For personal use only Trading margins plus additional streams Potential Revenue Opportunities Issuance by ABE of yield enhanced product Streams AUD$ per annum Additional upside of ABE, using a third party, engages in the development o
Slide 22: Streamline Strategy
For personal use only Streamline Strategy Action Taken Comments Delayering • Thin out the top layer of management and • Cost reduction of non-directly income higher paid staff who were underperforming producing activities. • Decision making process becomes shorter and more effective Work Redesign •
Slide 23: Phillip Kaufman, Financial Controller
For personal use only Phillip Kaufman Financial Controller
Slide 24: Revenue, Net Assets and Expense Breakdown
Revenue For personal use only 6 Millions Corporate 5 Institutional Advisory Revenue 4 Revenue Increased Introduced ABE proved resilient during a 3 period of change within the 2 Private Other organisation Client 1 Revenue Revenue Decreased Decreased 0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 F
Slide 25: Access to Capital and One-off Costs
For personal use only At the previous AGM shareholders approved additional funding in the form of a convertible Access to capital is note. Management judiciously selected capital partners and a funding structure designed to available, but currently maximise shareholder value. Management regularly re
Slide 26: FY2024 key priorities
US FY2024 key priorities
Slide 27: Access, Execution, Innovate, Control
For personal use only ACCESS EXECUTION Provide all investors equal Efficient transactions that drive a access to financial markets sustainable competitive advantage INNOVATE CONTROL Create value though product and Growth is necessary but revenue needs support innovation to drive business to flow thr
Slide 28: RBA estimates from the CBDC trial
For personal use only The results from the CBDC trial prompted the following estimates from the RBA The first set of estimates points to hypothetical transaction cost savings A second set of hypothetical estimates suggests that savings of up to $13 in Australian financial markets in the range of $1–
Slide 29: Credit AI Tool (CAIT) and VICKI
For personal use only Credit Artificial Intelligence Tool (CAIT) A Joint ABE, UC Berkley California and Bond University collaboration Advanced analytics optimised for accurate credit assessment Virtual Intelligent Compliance Knowledge Investigator (VICKI) B Advanced AI-powered monitor that listens t
Slide 30: Serviceable Market Growth and Technology & Industry Changes
For personal use only Serviceable Market Growth Technology & Industry Changes EXPANDING FOCUS CLIENT BASE ON IMPROVING MARGINS GROWING CORPORATE REGULATORY DEBT CHANGES OUTSTANDING RETURN TO GROWTH BUT POPULARITY WITH IMPROVED OF MARKET WORKFLOW LINKED DIGITIZATION MARGINS SECURITIES AFFILIATE ARTIF
Slide 31: For personal use only
For personal use only
Slide 32: Resolutions
X ausTRALIAN BOND EXCHANGE Resolutions Resolution 1: Adoption of the Remuneration Report Resolution 2: Re-election of Anthony Hartman as a Director of the Company Resolution 3: Re-election of Michael Vanderdonk as a Director of the Company Resolution 4: Capital raising by convertible note
Slide 33: Shareholder Questions
US Shareholder Questions
Slide 34: Australian Bond Exchange Holdings Limited
For personal use only Australian Bond Exchange Holdings Limited Level 19, 15 Castlereagh Street SYDNEY NSW 2000
Australian Bond Exchange Holdings — Shareholder Meeting (November 2024) on 6ix