Slide 1: Full-Year 2017 Results
For personal use only Full-Year 2017 Results ASX Limited 17 August 2017
Slide 2: Agenda
Agenda For personal use only Performance and strategic highlights Dominic Stevens – CEO Business performance Peter Hiom – Deputy CEO Summary and outlook Dominic Stevens – CEO Q&A – analysts followed by media 2 |
Slide 3: Highlights – financial results FY17
Highlights – financial results FY17 Continued growth in profit and returns to shareholders For personal use only • $764.1 million, up 2.4% Revenue +$17.8m • Solid performances across all businesses Revenue and expenses • $180.9 million, up 6.0% 5 year change ($million) Expenses ($10.3m) • Investment
Slide 4: Highlights – activity levels
Highlights – activity levels Lower capital raised, higher trading activity For personal use only Total capital raised ($billion) ASX on-market value traded ($billion) 89 1,059 1,080 967 79 830 831 66 56 46 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Secondary capital Scrip-for-scrip IPO capita
Slide 5: Highlights – FY17 revenue
Highlights – FY17 revenue Solid diversified revenue growth For personal use only Revenue movement ($million) Revenue $764.1 million, up 2.4% 2.4 13.2 Listings and Issuer Services 0.0 3.3 (1.1) • Revenue $192.7 million, flat on FY16 • More IPOs and secondary raisings but smaller issuance sizes • High
Slide 6: Revenue composition – FY17
Revenue composition – FY17 Attractive and diversified business model For personal use only Diversification supports revenues across different market cycles • Product and service diversification – Primary market facilitation via listings – Cash market trading, clearing and settlement – Exchange-trade
Slide 7: Strong core value proposition
Strong core value proposition Underlying macro drivers plus ASX initiatives supporting growth For personal use only Listings Trade execution Post-trade Ongoing liquidity Core customer Initial and ongoing access to capital Capital efficiency Hedging and risk transfer Lower cost of capital Risk reduct
Slide 8: Calendar year 2016 IPO capital raised
Calendar year 2016 IPO capital raised ASX is a globally competitive market For personal use only US $billion 25 14 13 10 9 6 4 1 1 8 | Source: ASX, HKEX, TSX, EY, Nasdaq, JPX, LSE, NYSE, SGX ASX includes stapled securities; HKEX includes GEM; TSX includes TSX-V listings; Tokyo Stock Exchange main bo
Slide 9: Calendar year 2016 number of IPOs
Calendar year 2016 number of IPOs ASX is a globally competitive market For personal use only 133 115 103 98 91 84 66 37 16 9 | Source: ASX, HKEX, TSX, EY, Nasdaq, JPX, LSE, NYSE, SGX ASX includes stapled securities and debt listings; HKEX includes GEM; TSX includes TSX-V listings; LSE includes AIM l
Slide 10: Expanding listings franchise
Expanding listings franchise Foreign and technology listings success ASX technology new listings1 50 For personal use only 40 • Globally respected market - 3rd largest in Asia based on free float market capitalisation 30 • Developing critical mass of technology listings. Technology 20 sector is now
Slide 11: New futures trading platform
New futures trading platform Implemented March 2017 For personal use only • Replaced proprietary SYCOM platform introduced in the late 1990s • Significant testing and preparation with close customer collaboration • Approximately 50 ASX participants plus 30 other customers – Broad range of global dat
Slide 12: CHESS replacement
CHESS replacement On track for assessment of DLT in December 2017 For personal use only • Industry wide formal consultation and follow up questionnaires • Quarterly webinars with over 150 attendees Stakeholder • Over 60 DLT system demos to 110 companies and 450 attendees from global financial servic
Slide 13: ASX Trade execution innovation – Centre Point
ASX Trade execution innovation – Centre Point Mid-point anonymous matching referencing ASX liquidity For personal use only • Australia's largest anonymous mid-point trade matching system 120 Centre Point value traded ($billion) • Offers customers deep liquidity, meaningful price improvement and redu
Slide 14: Capital expenditure
Capital expenditure Continued investment in existing and new technology For personal use only FY17 projects completed • New futures trading platform implemented in March 2017 Capital expenditure ($million) 60 • Enhancement to OTC Clearing service including extended hours • BBSW platform 50 • Cyber s
Slide 15: Business performance
For personal use only Peter Hiom – Deputy CEO Business performance
Slide 16: Listing and Issuer Services
Listing and Issuer Services 25% Expanding listings franchise, revenue flat despite lower capital raised For personal use only FY17 FY16 Var $ Var % Revenue ($million) 192.7 192.7 0.0 0.0% Initial and secondary capital raised ($billion) Listings 150.3 149.4 0.9 0.6% 60 and average fees per $ million
Slide 17: Listings and Issuer Services
Listings and Issuer Services Foreign and technology listings, expanding the investment product offering ASX foreign listings by select countries at 30 June 2017 For personal use only New products and services • Updated listing rules strengthen ASX brand as a premier global listing venue • Long-form
Slide 18: Derivatives and OTC Markets
Derivatives and OTC Markets Strong futures activity, expansion and growth in new services 35% For personal use only FY17 FY16 Var $ Var % 15 Revenue ($million) 269.1 265.8 3.3 1.2% Futures volumes 3 month rolling average (million) 14 Futures and OTC 197.4 194.3 3.1 1.6% 13 Equity options 21.7 23.1 (
Slide 19: Derivatives and OTC Markets
Derivatives and OTC Markets Focus on global distribution and OTC service enhancements For personal use only 60,000 Weekly equity option volumes 30 day rolling average New products and services • Growth in weekly equity options (introduced October 2016) with average daily volumes of 21,240 40,000 • P
Slide 20: Trading Services
Trading Services 26% Strong growth in Centre Point, expanded data services and growth in Technical Services For personal use only FY17 FY16 Var $ Var % ASX on-market value traded ($billion) and average Revenue ($million) 196.0 182.8 13.2 7.2% trading fee per side per $ value (bps) 1,200 0.25 Cash Ma
Slide 21: Trading Services
Trading Services Focus on distribution, community growth and expanding ASX data For personal use only New products and services Australian Liquidity Centre • BBSW administrator from January 2017, 700+ customers on-boarded, live as calculation agent July 2017, new calculation methodology in FY18 300
Slide 22: Equity Post-Trade Services
Equity Post-Trade Services 14% Solid growth consistent with increased activity levels, investing for the future For personal use only FY17 FY16 Var $ Var % Revenue ($million) 104.4 102.0 2.4 2.3% Cash Market Clearing 53.3 54.1 (0.8) (1.6%) Total billable value cleared ($billion) Cash Market Settleme
Slide 23: Equity Post-Trade Services
Equity Post-Trade Services Focus on DLT for CHESS replacement, new opportunities in other ASX businesses For personal use only CHESS replacement • Significant engagement continues with issuers, investors, intermediaries, market operators, industry associations and service providers • Engagement key
Slide 24: Operating expenses
Operating expenses FY17 – in line with guidance Expense movement ($million) For personal use only 9.5 0.8 Operating expenses up 6.0% in FY17 Primarily investment in staff to support customer and growth-related initiatives • Staff costs up 9.3% ‒ Average headcount up 4.1% to 556 FTEs 180.9 170.6 ‒ An
Slide 25: Interest and dividend income
Interest and dividend income Collateral balances driving net increase in income For personal use only $million FY17 FY16 Var $ Var % Interest and dividend income ($million) 100 ASX Group net interest income 17.8 22.3 (4.5) (20.0%) 80 Net interest earned on collateral balances 47.5 37.7 9.8 25.9% Div
Slide 26: Summary and outlook
For personal use only Dominic Stevens – CEO Summary and outlook
Slide 27: Summary and outlook
Summary and outlook Continued growth in earnings, initiatives gaining traction For personal use only Highlights • FY17 NPAT $434.1 million, up $7.9 million on pcp • Five year NPAT CAGR 5.7% (FY13-17) • Full-year dividends of 201.8 cents per share, including final dividend of 99.8 cents per share ful
Slide 28: Q&A
Q&A Se . y \ Ajuo gSr/ feuosi8el JO
Slide 29: Appendices
Appendices For personal use only 1. Income statement 2. Balance sheet 3. Key financial ratios 4. Transaction and activity levels 5. Free cash flow summary 6. Capital attribution 29 |
Slide 30: 1. Income statement
1. Income statement FY13 FY14 FY15 FY16 FY17 For personal use only $ Million $ Million $ Million $ Million $ Million Annual listing fees 60.0 62.1 70.7 75.2 79.3 Initial listing fees 7.2 17.9 20.9 18.6 16.0 Subsequent listing fees 37.4 38.4 42.7 45.1 46.5 Other listing fees 8.6 8.6 9.0 10.5 8.5 List
Slide 31: 1. Income statement
1. Income statement FY13 FY14 FY15 FY16 FY17 For personal use only $ Million $ Million $ Million $ Million $ Million Staff 87.2 92.4 96.4 101.1 110.6 Occupancy 13.7 14.3 13.7 14.1 14.6 Equipment 22.4 23.0 24.0 27.0 27.9 Administration 15.6 16.3 17.2 19.2 18.2 Variable 3.8 4.3 5.1 6.3 6.7 ASIC superv
Slide 32: 2. Balance sheet
2. Balance sheet 30 Jun 13 30 Jun 14 30 Jun 15 30 Jun 16 30 Jun 17 For personal use only $ Million $ Million $ Million $ Million $ Million Assets Cash and available-for-sale financial assets 4,496.2 5,015.6 4,879.0 7,072.8 9,085.6 Intangibles (excluding software) 2,317.6 2,317.6 2,317.6 2,317.6 2,32
Slide 33: 3. Key financial ratios
3. Key financial ratios FY13 FY14 FY15 FY16 FY17 For personal use only Basic EPS (including significant items) 195.5c 198.5c 205.7c 220.4c 224.5c Diluted EPS (including significant items) 195.5c 198.5c 205.7c 220.4c 224.5c Underlying EPS (excluding significant items) 195.5c 198.5c 208.4c 220.4c 224.
Slide 34: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services FY13 FY14 FY15 FY16 FY17 For personal use only Total domestic market capitalisation ($bn) – period end $1,347 $1,552 $1,612 $1,620 $1,777 Total number of listed entities (includes all stapled entities) – period end 2,185 2,192 2,220 2,204 2,239 Number of new listings
Slide 35: 4.2 Equity Options
4.2 Equity Options FY13 FY14 FY15 FY16 FY17 For personal use only Trading days 252 253 254 254 253 Single stock equity options (‘000) 145,531 116,343 109,546 88,701 93,295 Index options (‘000) 11,762 8,249 10,958 12,768 10,388 Total contracts traded (‘000) 157,293 124,592 120,504 101,469 103,683 Ave
Slide 36: 4.2 Futures and OTC Markets
4.2 Futures and OTC Markets FY13 FY14 FY15 FY16 FY17 For personal use only Trading days 255 256 256 257 256 Total contracts traded – futures ('000) ASX SPI 200 10,259 9,715 10,301 12,105 12,255 90 day bank bills 25,866 25,903 28,706 29,567 28,931 3 year bonds 47,499 47,886 49,717 50,105 53,233 10 ye
Slide 37: 4.2 Futures and OTC Markets (continued)
4.2 Futures and OTC Markets (continued) FY13 FY14 FY15 FY16 FY17 For personal use only Total contracts traded – options on futures ('000) ASX SPI 200 349 473 454 363 202 3 year bonds 526 416 245 356 152 Overnight 3 year bonds 1,914 1,523 896 579 478 Intra-day 3 year bonds 1,443 1,527 927 660 460 10
Slide 38: 4.2 Austraclear
4.2 Austraclear FY13 FY14 FY15 FY16 FY17 For personal use only Settlement days 252 253 254 254 253 Transactions ('000) Cash transfers 587 600 602 590 582 Fixed interest securities 763 800 774 717 741 Discount securities 183 162 157 150 146 Foreign exchange 21 21 22 11 9 Other 12 10 9 2 1 Total trans
Slide 39: 4.3 Trading Services – Cash Market Trading
4.3 Trading Services – Cash Market Trading FY13 FY14 FY15 FY16 FY17 For personal use only Trading days 252 253 254 254 253 Total cash market trades ('000) 174,750 181,861 190,647 235,923 266,433 Average daily cash market trades 693,454 718,817 750,578 928,829 1,053,096 Continuous trading ($bn) $645.
Slide 40: 4.3 Trading Services – Technical Services
4.3 Trading Services – Technical Services 1111 FY13 FY14 FY15 FY16 FY17 For personal use only Technical Services (number at period end) Liquidity access ASX sessions 1,526 1,431 1,185 1,113 1,033 ASX gateways 248 233 207 192 179 ASX liquidity cross-connects 70 61 55 57 60 Futures gateways 272 241 22
Slide 41: 4.4 CCP participant collateral balances
4.4 CCP participant collateral balances FY13 FY14 FY15 FY16 FY17 For personal use only $ Million $ Million $ Million $ Million $ Million Balances at period end ASX Clear – initial margins 561.4 549.8 673.7 815.7 672.3 ASX Clear (Futures) – initial margins House1 907.0 849.3 746.0 1,293.7 2,030.9 ASX
Slide 42: 5. Free cash flow summary
5. Free cash flow summary FY13 FY14 FY15 FY16 FY17 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group cash Total cash and short-term investments 4,496.2 5,015.6 4,879.0 7,072.8 9,085.6 Less participants’ margins and commitments – cash backed (3,753.1) (3,986.1) (3,886.
Slide 43: 6. Capital attribution
6. Capital attribution FY13 FY14 FY15 FY16 FY17 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group shareholders’ equity 3,321.8 3,670.9 3,759.7 3,824.1 3,908.1 Capital attribution ASX Clear – default fund contributed by ASX (held in ASX Clear) 250.0 250.0 250.0 250.0 2
Slide 44: 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 (17 August For personal use only 2017). It is provided in summary and does not purport to be complete. You should not rely upon it