Slide 1: ASX Limited – Half-Year 2013 Results Presentation
For personal use only ASX Limited – Half-Year 2013 Results Presentation 21 February 2013
Slide 2: Disclaimer
Disclaimer For personal use only 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 (21 February 2013). It is provided in summary and does not purport to be complete. You should not rely upon i
Slide 3: 1H13 Highlights
1H13 Highlights For personal use only Statutory Statutory Underlying Revenue Expenses Dividend Net Profit EPS Net Profit $304.8m $71.3m 87.9c $171.1m 97.7c $171.1m (3.3%) (1.3%) (5.3%) (2.5%) (2.5%) (5.3%) • Underlying net profit $171.1m, down 5.3% ‒ Dividend 87.9 cents per share; 90% payout ratio •
Slide 4: Income Statement
Income Statement For personal use only 1H13 1H12 2H12 % Variance % Variance $ Million $ Million $ Million Operating Revenue 304.8 315.1 (3.3%) 295.3 3.2% Cash Operating Expenses 71.3 70.4 (1.3%) 70.7 (0.9%) EBITDA 233.5 244.7 (4.6%) 224.6 3.9% Depreciation and Amortisation 15.4 12.9 (19.5%) 14.7 (3.
Slide 5: Revenue Movement ($M)
Revenue Movement ($M) For personal use only 5.0 (12.0) 315.1 (4.0) 2.0 (2.2) 1.3 (0.4) 304.8 1H12 Listings and Cash Market Information Technical Derivatives Austraclear Other 1H13 Issuer Services Services Services Services % Change 7.3% (18.0%) (11.7%) 8.8% (2.3%) 7.5% (3.5%) (3.3%) Underlying reven
Slide 6: Revenue Performance by Quarter
Revenue Performance by Quarter For personal use only 1Q13 % Variance 2Q13 % Variance $ Million to PCP $ Million to PCP Listings and Issuer 33.7 3.4% 39.9 10.8% Services Cash Market 27.9 (25.2%) 27.0 (9.1%) Information Services 15.1 (13.2%) 15.5 (9.9%) Technical Services 12.1 8.0% 12.5 9.6% Derivativ
Slide 7: Revenue Profile Over Years (1H10 to 1H13)
Revenue Profile Over 3 Years (1H10 to 1H13) For personal use only 1H10 ($302.8 million) 1H13 ($304.8 million) Austraclear Other Austraclear Other Services 2% Services 3% 5% Listings & 6% Listings & Issuer Issuer Services Services 27% 24% Derivatives 24% Derivatives 31% Cash Market Trading 5% Cash Ma
Slide 8: Regulatory Developments
Regulatory Developments For personal use only Cash Market Trading Clearing and Settlement Market Structure Market Structure • Changed 31 October 2011 • Review by Council of Financial Regulators − Best execution 1 March 2013 • Announcement by Treasurer on 11 Feb 2013 • Investor concern around market
Slide 9: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $73.6 million, up 7.3% Listings • Listings $60.0 million, up 6.8% • Capital raising flexibility – 592 AGM approvals ‒ Secondary capital $22.5 billion, up 3.6% • Enhanced reporting for mining, oil and gas ‒ 41 IPOs (
Slide 10: Cash Market
Cash Market For personal use only Highlights Areas of Focus Revenue $54.9 million, down 18.0% Trading • Includes equities trading, clearing and settlement • Centre Point enhancements • All Ordinaries up 12.8% since 1 July 2012 − 4.0% of value traded, 9.6% of revenue • Activity at cyclical low; total
Slide 11: Information and Technical Services
Information and Technical Services For personal use only Highlights Areas of Focus Information Services $30.6 million, down 11.7% Information Services • Retail and professional data usage declined • Low latency data services for futures; Technical Services $24.6 million, up 8.8% equities data servic
Slide 12: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $94.4 million, down 2.3% Product Development • ASX 24 Derivatives $79.9 million, down 2.3% • VIX and sectoral futures • ASX Derivatives $14.5 million, down 2.5% • Equity option market enhancements • Revenue performan
Slide 13: Austraclear Services
Austraclear Services For personal use only Highlights Areas of Focus Revenue $19.1 million, up 7.5% Collateral management service • Transaction revenue $7.9 million, flat • 2013 focus on Austraclear • Holdings revenue $3.2 million, up 18.5% ‒ Average balances up 6.8% • Later phases include CHESS col
Slide 14: Interest and Dividend Income
Interest and Dividend Income For personal use only 1H13 1H12 % Highlights $ Million $ Million Variance Total net interest income flat ASX Group Interest ASX Group interest income down 7.5 11.6 (35.6%) Income 35.6% due to lower interest rates Net Interest Earned Net interest earned on collatera
Slide 15: Expenses
Expenses For personal use only 1H13 1H12 % Highlights $ Million $ Million Variance Total expenses up 1.3% Staff 43.2 41.7 (3.6%) ‒ Staff: fixed remuneration and Occupancy 6.6 7.8 15.3% deferred incentives Equipment 10.5 10.2 (2.8%) Staff numbers up 3.8%. 518 FTEs at 31/12/12, up from Administratio
Slide 16: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 34.8 20.5 18.9 18.5 15.5 15.4 12.7 13.0 8.6 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 Normal Capex Data Centre Highlights Capital expenditure in 1H13 of $15.4 million Guidance FY13: up to $40 million. Uplift from initiative development 16
Slide 17: Capital and Liquidity Position
Capital and Liquidity Position For personal use only ASX Group Equity ASX Group Cash Net Tangible Equity versus ASX Group Cash versus Risk-Based Capital Attribution Cash-Backed Requirements 900 800 800 700 700 600 600 500 $ Million $ Million 500 400 400 300 300 200 200 100 100 0 0 31 Dec 2011 31 Dec
Slide 18: Post Balance Date Activity (to Feb)
Post Balance Date Activity (to 15 Feb) For personal use only Some stabilisation of the global economic environment US economy showing tentative signs of improvement Europe less volatile in recent months – but serious structural issues remain Asia showing relative strength Equity market act
Slide 19: Current Market Environment
Current Market Environment For personal use only Daily Average Value Traded $bn1 and All S&P/ASX 200 VIX vs CBOE S&P 500 VIX Ordinaries Index 8 8000 60 7 7000 50 6 6000 40 5 5000 4 4000 30 3 3000 20 2 2000 10 1 1000 0 0 0 May-06 May-07 May-08 May-09 May-10 May-11 May-12 Jan-06 Jan-07 Jan-08 Jan-09 J
Slide 20: 1H13 Highlights
1H13 Highlights For personal use only Statutory Statutory Underlying Revenue Expenses Dividend Net Profit EPS Net Profit $304.8m $71.3m 87.9c $171.1m 97.7c $171.1m (3.3%) (1.3%) (5.3%) (2.5%) (2.5%) (5.3%) • Underlying net profit $171.1m, down 5.3% ‒ Dividend 87.9 cents per share; 90% payout ratio •
Slide 21: ASX Limited – Half-Year 2013 Results Presentation
For personal use only ASX Limited – Half-Year 2013 Results Presentation 21 February 2013
Slide 22: Appendices
Appendices For personal use only 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 4.1 Listings and Issuer Services 4.2 Cash Market 4.3 Information and Technical Services 4.4 ASX Derivatives 4.5 ASX 24 Derivatives 4.6 Austraclear Services 4.7 CCP Partici
Slide 23: 1. Income Statement
1. Income Statement 1H11 2H11 1H12 2H12 1H13 For personal use only $ Million $ Million $ Million $ Million $ Million REVENUE Listings and Issuer Services 77.8 72.5 68.6 64.8 73.6 Cash Market 66.8 67.1 66.9 57.6 54.9 Trading 19.6 19.2 19.6 16.8 15.7 Clearing 25.0 24.6 25.1 20.8 19.7 Settlement 22.2 2
Slide 24: 1. Income Statement (Continued)
1. Income Statement (Continued) 1H11 2H11 1H12 2H12 1H13 For personal use only $ Million $ Million $ Million $ Million $ Million Depreciation and Amortisation 11.3 12.0 12.9 14.7 15.4 EBIT 227.0 231.7 231.8 209.9 218.1 Net Interest Income 10.2 10.6 11.6 8.9 7.5 Net Interest on Participants’ Balances
Slide 25: 2. Balance Sheet
2. Balance Sheet 31 Dec 10 30 Jun 11 31 Dec 11 30 Jun 12 31 Dec 12 For personal use only $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 3,365.2 3,318.6 3,841.0 3,696.2 4,333.9 Goodwill 2,262.8 2,262.8 2,262.8 2,262.8 2,262.8 Other Assets 492.8 6
Slide 26: 3. Key Financial Ratios
3. Key Financial Ratios For personal use only 1H11 2H11 1H12 2H12 1H13 Basic EPS (including significant items) 98.6c 103.0c 100.2c 93.5c 97.7c Diluted EPS (including significant items) 98.6c 103.0c 100.2c 93.5c 97.7c Underlying EPS (excluding significant items) 100.7c 103.4c 103.2c 94.4c 97.7c Divid
Slide 27: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services 1H11 2H11 1H12 2H12 1H13 For personal use only Annual listings revenue ($m) $28.5 $29.3 $30.2 $30.4 $29.9 Initial listings revenue ($m) $8.2 $4.9 $3.7 $2.5 $3.4 Secondary listings revenue ($m) $23.9 $20.7 $17.7 $16.7 $22.8 Other listings revenue (including structured
Slide 28: 4.2 Cash Market
4.2 Cash Market 1H11 2H11 1H12 2H12 1H13 For personal use only Trading days 130 123 129 124 129 Total cash market trades ('000) 70,180 74,141 87,025 78,781 76,283 Average daily cash market trades 539,850 602,772 674,609 635,333 591,341 Open trading value traded ($bn) $401.715 $401.798 $386.180 $321.
Slide 29: 4.3 Information and Technical Services
4.3 Information and Technical Services 1H11 2H11 1H12 2H12 1H13 For personal use only Technical Services – Liquidity Access No. of ASX sessions – period end 1,727 1,737 1,786 1,703 1,625 No. of ASX gateways – period end 401 321 331 302 267 No. of ASX liquidity cross connects – period end 70 71 78 75
Slide 30: 4.4 ASX Derivatives
4.4 ASX Derivatives For personal use only 1H11 2H11 1H12 2H12 1H13 Trading days (ASX) 130 123 129 124 129 Total contracts ('000) 77,857 83,195 86,618 77,280 80,477 Average daily derivatives contracts 598,901 676,384 671,455 623,230 623,855 Average fee per derivatives contract $0.19 $0.18 $0.17 $0.17
Slide 31: 4.5 ASX Derivatives
4.5 ASX 24 Derivatives 1H11 2H11 1H12 2H12 1H13 For personal use only Trading days (ASX 24) 130 126 129 124 129 Total contracts - futures ('000) ASX SPI 200 5,055 5,451 6,680 5,132 4,894 90 day bank bills 8,906 11,823 10,568 11,084 10,298 3 year bonds 17,665 21,167 20,497 22,005 22,006 10 year bonds
Slide 32: 4.5 ASX Derivatives (Continued)
4.5 ASX 24 Derivatives (Continued) 1H11 2H11 1H12 2H12 1H13 For personal use only Total contracts - options on futures ('000) ASX SPI 200 183 196 227 250 192 90 day bank bills 23 29 25 0 7 3 year bonds 128 434 76 271 256 Overnight 3 year bonds 994 1,045 388 641 742 Intra-day 3 year bonds 672 831 418
Slide 33: 4.6 Austraclear Services
4.6 Austraclear Services 1H11 2H11 1H12 2H12 1H13 For personal use only Transactions revenue ($m) $7.4 $7.4 $8.0 $8.0 $7.9 Holdings revenue ($m) $2.7 $2.7 $2.7 $3.0 $3.2 Registry revenue ($m) $6.8 $6.8 $7.1 $7.3 $8.0 Settlement days 130 123 129 124 129 Transactions ('000) Cash transfers 315 299 321
Slide 34: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances For personal use only 1H11 2H11 1H12 2H12 1H13 $ Million $ Million $ Million $ Million $ Million ASX Clear – initial margins (cash) - period end 251.4 290.6 258.7 254.5 289.5 ASX Clear (Futures) – initial margins House – period end 629.0 495.3 779.8 686.6 1,03
Slide 35: 5. Free Cash Flow Summary
5. Free Cash Flow Summary ASX Group Cash 1H11 2H11 1H12 2H12 1H13 For personal use only $ Million $ Million $ Million $ Million $ Million Total cash and short-term investments 3,365.2 3,318.6 3,841.0 3,696.1 4,333.9 Less participants’ margins and commitments (2,557.3) (2,516.4) (3,042.3) (2,939.6) (
Slide 36: 6. Risk-Based Capital
6. Risk-Based Capital ASX Group Equity 1H11 2H11 1H12 2H12 1H13 For personal use only $ Million $ Million $ Million $ Million $ Million Shareholders equity 2,993.0 3,021.1 2,999.9 2,995.0 3,047.7 Less goodwill (2,262.8) (2,262.8) (2,262.8) (2,262.8) (2,262.8) Net 730.2 758.3 737.1 732.2 784.9 Risk-b
Slide 37: ASX Limited – Half-Year 2013 Results Presentation
For personal use only ASX Limited – Half-Year 2013 Results Presentation 21 February 2013