Slide 1: ASX Limited 2008 Half-Year Results
For personal use only ASX Limited 2008 Half-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO Eric Mayne, CSO 14 February 2008 Sydney, Australia
Slide 2: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about ASX’s activities current as at the date of this presentation (14 February 2008). It is provided in summary and does not purport to be complete. You should not rely upon it as advic
Slide 3: Important Notes
Important Notes The financial statistics, including comparables, in this report are For personal use only based on ASX’s pro-forma income statement which itself is not audited, but is based upon externally audited accounts. The pro- forma income statement is presented as if ASX and SFE were combined
Slide 4: Agenda
Agenda For personal use only • Introduction Robert Elstone • Financial and Operational Highlights Alan Bardwell • Markets Supervision Highlights Eric Mayne • Outlook and Post Balance Date Activity Robert Elstone • Questions • Close
Slide 5: Introduction
For personal use only Introduction Robert Elstone Managing Director and CEO
Slide 6: Financial Highlights – Six Months to December 2007
Financial Highlights – Six Months to 31 December 2007 For personal use only • Operating revenue up 21.2% to $314.7 million ; • Cash operating expenses down 9.3% to $68.2 million ; • Normal profit after tax up 34.5% to $187.4 million ; • EPS up 27.6% to 109.7 cents per share* ; • Interim dividend up
Slide 7: Business Highlights – Six Months to December 2007
Business Highlights – Six Months to 31 December 2007 • Record trade execution volumes for cash equities, equity derivatives and interest For personal use only rate derivatives • Best practice availability of core systems applications • 99.9% trade execution and clearing & settlement • 99.9% deposito
Slide 8: ASX Financial and Operational Highlights
For personal use only ASX Financial and Operational Highlights Alan Bardwell Chief Financial Officer
Slide 9: Revenue Highlights – Six Months to December 2007
Revenue Highlights – Six Months to 31 December 2007 For personal use only Change From HY07 18.1% 31.7% 12.8% 27.5% 16.6% 21.2% (pcp) $314.7 $5.0 $7.2 $ million $9.4 $23.1 $10.2 $259.7 HY07 Listings Cash Market Derivatives Information Other HY08 Operating Services Operating Revenue Revenue Based on A
Slide 10: Operating Revenue – HY08
Operating Revenue – HY08 For personal use only Category Business Driver Other Revenue 11% Other 14% Listing 21% Info rm atio n M arket Data Services 11% Usage 8% Traded Vo lum e 40 % Listed Value C ash M arkets Derivatives 26% 21% 31% Traded Value 17% Revenue diversification between category and bus
Slide 11: Market Activity - Listings
Market Activity - Listings • 177 new listings in HY08 (147 pcp) For personal use only $ billion $ trillion $60 $1.8 • 2,209 listed entities at 31 Dec 07 Secondary Capital (LHS) IPO Capital (LHS) (2,014 pcp) Mkt Cap (RHS) • $42.2 billion of total capital raised in $40 $1.2 HY08 ($37.7 billion pcp) •
Slide 12: Market Activity – Cash Market
Market Activity – Cash Market For personal use only ASX Cash Market – Volume ASX Cash Market – Value M illion $ billion BPS 48 $8.00 $1,000 1.90 Total Trades (LHS) Total V alue (LHS) 42 Average Fee per Trade (RHS) BPS per $1 Value (RHS) $7.00 $800 36 $6.00 1.60 30 $600 24 $5.00 18 $400 $4.00 1.30 12
Slide 13: Cash Market Revenue Composition
Cash Market Revenue Composition For personal use only Cash Market Net Revenue 1H08 1H07 Gross Cash $116.0m $80.1m Market LPR (20%) Trading 41% Rebate $19.7m $7.0m Settlement 45% Net Cash $96.3m $73.1m Clearing Market 34% Rebates % 17% 8.7% of Gross
Slide 14: Market Activity – Derivatives
Market Activity – Derivatives For personal use only Derivatives – Futures & Equity Derivatives Options M illion Million 15.0 $1.90 50 $2.10 Total Contracts Traded (LHS) Total Contracts Traded (LHS) A verage Fee per Contract (RHS) Average Fee per 40 Contract (RHS) $1.90 10.0 $1.60 30 $1.70 20 5.0 $1.
Slide 15: Financial Performance – Expenses
Financial Performance – Expenses For personal use only HY08 HY07 Variance Variance Expenses $ million $ million $ million % Staff Expenses 38.0 41.0 3.0 7.3% Occupancy Expenses 6.7 9.0 2.3 25.6% Equipment Expenses 11.7 13.5 1.8 13.6% Administration Expenses 8.5 9.5 1.0 10.6% Variable Expenses 3.3 2.
Slide 16: Financial Performance – Income Statement
Financial Performance – Income Statement For personal use only HY08 HY07 Variance Variance $ million $ million $ million % Operating Revenue 314.7 259.7 55.0 21.2% Cash Operating Expenses 68.2 75.2 7.0 9.3% EBITDA 246.4 184.5 61.9 33.6% Depreciation and Amortisation 7.3 7.6 0.3 4.0% Interest and Div
Slide 17: Capital Structure and Management
Capital Structure and Management For personal use only • Dividend policy – 90% of Normal NPAT, fully franked • Interim dividend – 98.5 cents up 36% pcp • Adequate capital held as surplus over risk requirement 300 Capital Return Special Dividend Final Dividend Interim Dividend 200 Cents Per Share 58.
Slide 18: ASX Markets Supervision
For personal use only ASX Markets Supervision Eric Mayne Chief Supervision Officer
Slide 19: Markets Supervision Highlights
Markets Supervision Highlights • ASX Markets Supervision For personal use only • Released revised ASX Corporate Governance Council Principles and Recommendations in Aug 07 – start 1 Jan 08 • Assumed responsibility for supervision of CFD market in Nov 07 • Integrated ASX and SFE disciplinary processe
Slide 20: Markets Supervision Highlights
Markets Supervision Highlights • Monitoring and enforcement activity for period For personal use only • 70,214 company announcements processed (up 15% on pcp) • 944 price queries issued (up 42% on pcp) resulting in 606 subsequent market announcements • 37 (ASX and SFE market) referrals to ASIC (38 p
Slide 21: Outlook and Post Balance Date
For personal use only Outlook and Post Balance Date Robert Elstone Managing Director and CEO
Slide 22: Post Balance Date – Market Events
Post Balance Date – Market Events • Very strong market activity levels throughout Jan 08 For personal use only • Sell-off in global equity markets • Societe Generale fraud • Widening interest rate differentials between Australia and US • Participant capital adequacy ‘pulse check’ in mid-Jan; broker
Slide 23: Post Balance Date – Activity Levels
Post Balance Date – Activity Levels • 16 new entities listed Jan 08 (consistent with pcp) For personal use only • Total cash market trades for Jan 08 were 8.2m (up 115% on pcp) with average trade size continuing to decline • Daily record of 665,623 cash market trades ($10bn in value) on 22 Jan 08 (u
Slide 24: Outlook – Business Initiatives
Outlook – Business Initiatives • Robust pipeline of new listings For personal use only • Proposed rule changes for SME capital raising and the issuance of non-voting shares • Development of ASX Quoted Assets (AQUA) • Second generation of CFD products • Creation of ASX Clearing Corporation • Work wit
Slide 25: Questions
For personal use only Questions
Slide 26: ASX Limited 2008 Half-Year Results
For personal use only ASX Limited 2008 Half-Year Results Robert Elstone, MD and CEO Alan Bardwell, CFO Eric Mayne, CSO 14 February 2008 Sydney, Australia