Asx Limited · ASX:ASX
Asx — Macquarie Australia Conference 2017
24 slides from Asx's conference presentation, May 3, 2017
Slide 1: ASX Limited – Presentation to Investors (cover letter)
For personal use only 3 May 2017 Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive Leader, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – PRESENTATI
Slide 2: FY17 Third Quarter Update
For personal use only FY17 Third Quarter Update Dominic Stevens 4 May 2017
Slide 3: Agenda
Agenda For personal use only • Results overview • Summary and outlook • Q&A
Slide 4: Highlights - financial results – months to March 2017
Highlights - financial results – 9 months to 31 March 2017 For personal use only Revenue Expenses EBITDA NPAT $570.1m $135.1m $435.0m $327.5m 3.1% (5.9%) 2.3% 3.2% Revenue up $17.3 million to $570.1 million with continued solid performance across all businesses Expenses up $7.6 million, in line with
Slide 5: Income statement – months to March 2017
Income statement – 9 months to 31 March 2017 For personal use only March 17 March 16 Variance Variance YTD YTD $m % $m $m Operating revenues 570.1 552.8 17.3 3.1% Operating expenses 135.1 127.5 (7.6) (5.9%) EBITDA 435.0 425.3 9.7 2.3% Depreciation and amortisation 33.3 31.3 (2.0) (6.3%) EBIT 401.7 3
Slide 6: Highlights - activity levels
Highlights - activity levels Growth in trading, lower capital raisings For personal use only Total capital raised ($billion) Cash market trading ASX average daily value on-market ($billion) 28.3 26.3 4.254 4.097 4.262 4.246 4.162 4.295 18.3 18.6 3.887 15.6 8.4 6.5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY16 FY17 F
Slide 7: Revenue – months to March 2017
Revenue – 9 months to 31 March 2017 Solid diversified revenue growth For personal use only Highlights Revenue $570.1 million, up 3.1% Revenue movement ($million) Listings and Issuer Services 2.2 0.3 0.1 6.4 8.3 • Revenue $144.7 million, up 0.1% • Lower capital raised, increased IPOs and annual listi
Slide 8: Revenue composition – March 2017 YTD
Revenue composition – March 2017 YTD Attractive and diversified business model For personal use only • Domestic leader in all segments, Asian leader in A$ derivatives • Derivatives and OTC includes interest rate, equity index, electricity and commodities futures, single stock options and clearing fo
Slide 9: Australia's financial markets
Australia’s financial markets Large mature financial markets and a stable economy For personal use only • One of the top 5 largest pools in the world at $2.2 trillion and projected to continue Investable assets to grow strongly • 2,224 listed entities • 114 IPOs YTD Capital formation • 33 foreign li
Slide 10: Strong core value proposition
Strong core value proposition Underlying macro drivers plus ASX initiatives drive growth For personal use only Listings Trade execution Clearing and settlement Ongoing liquidity Initial and ongoing access to capital Capital efficiency Core customer Hedging and risk transfer Lower cost of capital Ris
Slide 11: Highlights - strategic initiatives
Highlights - strategic initiatives Progress across all businesses For personal use only Expanding listings franchise Listings Success in attracting offshore listings Growing technology listings New futures trading platform implemented Derivatives and OTC Continued growth in OTC Clearing, i
Slide 12: Listings and Issuer Services
Listings and Issuer Services Success in foreign and technology listings, flat result on record pcp For personal use only Mar 17 Mar 16 ASX foreign companies YTD YTD Var Var % 300 Revenue ($million) 144.7 144.6 0.1 0.1% 112.6 112.2 0.4 0.3% 250 Listings Issuer Services 32.1 32.4 (0.3) (0.7%) 200 150
Slide 13: Derivatives and OTC Markets
Derivatives and OTC Markets Focus on global distribution and OTC service extension For personal use only Mar 17 Mar 16 OTC notional value cleared ($billion) YTD YTD Var Var % 1,464 Revenue ($million) 200.2 193.8 6.4 3.3% 1,283 Futures and OTC 146.8 140.6 6.2 4.4% 1,116 1,044 Equity Options 16.1 17.1
Slide 14: New futures trading platform – implemented March 2017
Derivatives and OTC Markets New futures trading platform – implemented March 2017 For personal use only • Replaced proprietary SYCOM platform originally introduced in the late 1990s • Approximately 50 ASX participants plus 30 other customers connected: • Broad range of global data vendors and softwa
Slide 15: Trading Services
Trading Services Continued strong growth in Centre Point For personal use only 60 Centre Point value traded ($billion) Mar 17 Mar 16 YTD YTD Var $ Var % 50 Revenue ($million) 145.0 136.7 8.3 6.0% Cash Market Trading 34.4 30.3 4.1 13.4% 40 Information Services 61.3 60.0 1.3 2.0% 30 Technical Services
Slide 16: Equity Post-Trade Services
Equity Post-Trade Services Growth in value cleared and settlement messages For personal use only Mar 17 Mar 16 Value cleared ($billion) YTD YTD Var Var % 700 Revenue ($million) 78.2 76.0 2.2 2.8% 600 Cash Market Clearing 39.7 40.4 (0.7) (2.0%) 500 Cash Market Settlement 38.5 35.6 2.9 8.4% 400 300 Ke
Slide 17: CHESS replacement
CHESS replacement Significant stakeholder engagement on business requirements For personal use only 16
Slide 18: Expenses - months to March 2017
Expenses - 9 months to 31 March 2017 In line with guidance For personal use only Highlights Operating expenses up 5.9% Expense movement ($million) Higher investment in staff to support customer and growth- related initiatives 6.7 0.9 • Staff costs up 8.8% • Average headcount up 4.9% to 556 FTEs 127.
Slide 19: Interest and dividend income
Interest and dividend income Growth in margins driving net interest income Margins held on balance sheet March 2017 For personal use only (total $6.5 billion) $million Mar 17 Mar 16 YTD YTD Var $ Var % 9% ASX Group net interest 5% ASX Clear - initial margins 13.8 17.1 (3.3) (19.5%) income Net intere
Slide 20: Capital expenditure
Capital expenditure Continued investment in line with guidance For personal use only Capital expenditure ($millions) 31.4 31.5 23.5 24.6 18.6 18.7 20.3 15.4 13.0 10.8 3Q17 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 Highlights • March 2017 YTD capital expenditure $31.1 million • Successful go-
Slide 21: Summary and outlook
Summary and outlook Solid result, initiatives gaining traction For personal use only Highlights Statutory NPAT ($million) • March 17 YTD NPAT $327.5 million, up 3.2% on pcp • Five year NPAT CAGR 3.9% (FY11-16) 193.6 199.2 213.1 177.1 108.1 • Strong balance sheet underpinned by AA- long-term S&P cred
Slide 22: For personal use only
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Slide 23: Thank you.
For personal use only Thank you.
Slide 24: 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 of this presentation (4 May For personal use only 2017). It is provided in summary and does not purport to be complete. You should not rely upon it as a