Slide 1: Full-Year 2015 Results Presentation
Full-Year 2015 Results Presentation For personal use only ASX Limited The Heart of Australia’s Financial Markets Elmer Funke Kupper, Managing Director and CEO Peter Hiom, Deputy CEO 20 August 2015
Slide 2: 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 For personal use only of this presentation (20 August 2015). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Financial Results FY15
Financial Results FY15 Underlying Underlying Statutory Underlying For personal use only Revenues EBITDA DPS Expenses NPAT NPAT EPS $700.7m $540.6m 187.4c $160.1m $403.2m $397.8m 208.4c 6.4% 7.1% 5.2% (4.2%) 5.2% 3.8% 5.0% • Positive revenue performance ‒ Impact of fee reductions in Derivatives busin
Slide 4: Income Statement
Income Statement For personal use only FY15 FY14 % Variance $ Million $ Million Operating Revenues 700.7 658.3 6.4% Operating Expenses 160.1 153.6 (4.2%) EBITDA 540.6 504.7 7.1% Depreciation and Amortisation 38.6 33.8 (14.3%) EBIT 502.0 470.9 6.6% Interest and Dividend 71.9 70.7 1.8% Underlying Prof
Slide 5: Revenue Movement ($M)
Revenue Movement ($M) For personal use only Interest rate and electricity futures fee reductions 4.2 0.8 700.7 4.4 4.9 7.9 (1.5) 21.7 658.3 Up Up Down Up Up Up Up 13.9% 6.7% 0.7% 7.0% 8.3% 10.4% 4.8% Operating Revenues Up 6.4% FY14 Listings Cash Derivatives Information Technical Austraclear Other FY
Slide 6: Activity Levels by Half-year
Activity Levels by Half-year For personal use only Listings Total Capital Raised $ Billion ASX Cash Market Average Daily On-Market Value Traded $ Billion Up 5.1% Up 71.6% Up 34.6% Up 8.9% Up 22.8% Up 15.9% 88.9 4.1 3.8 66.0 3.5 3.4 3.3 3.2 50.3 36.7 38.6 29.3 1H 2H FY 1H 2H FY FY14 FY15 FY14 FY15 Fu
Slide 7: Key Themes
Key Themes For personal use only Global Leader in A$ and NZ$ • Innovate in fragmented equity market Financial Markets • Build on leadership in A$ and NZ$ derivatives markets • Grow listings franchise Investment Supermarket • Extend suite of investment options – equities, debt, funds • Deliver compet
Slide 8: Listings and Issuer Services
Listings and Issuer Services Highlights Areas of Focus For personal use only Revenue $176.6 million, up 13.9% Grow Listings Franchise • All revenue categories higher • New Zealand – simplify dual listings process • 120 IPOs; IPO capital $38.9 billion, up 40.7% • Tech sector – 30 listings1 in FY15, 1
Slide 9: Cash Market
Cash Market Highlights Areas of Focus For personal use only Revenue $125.2 million, up 6.7% Trading • Trading $35.5 million, up 7.4%, clearing $47.1 million, up • On-market trading market share 90% (91% pcp) 9.2%, settlement $42.6 million, up 3.6% • Growth in ASX auctions and Centre Point; together
Slide 10: Derivatives and OTC Markets
Derivatives and OTC Markets Highlights Areas of Focus For personal use only Revenue $206.2 million, down 0.7% Product Development • Futures $181.6 million, down 2.1% • Energy – gas futures April 2015 ‒ Contracts traded up 7.0% • ETOs – Flexclear OTC Clearing May 2015 ‒ Higher rebates and fee reducti
Slide 11: Impact of Fee Changes on Futures Revenue ($M)
Impact of Fee Changes on Futures Revenue ($M)1 For personal use only 14.6 (7.4) (17.8) 185.5 • Fee reductions in electricity (1 July 6.7 181.6 2014) and interest rate futures (1 October 2014) • FY15 part-year impact $17.8 million, partially offset by the removal of $6.7 million of other rebates • FY
Slide 12: Information and Technical Services
Information and Technical Services Highlights Areas of Focus For personal use only Information Services $73.7 million, up 7.0% Information Services • Pricing changes implemented 1 July 2014 • Multi-year enterprise agreements established with key Technical Services $57.3 million, up 8.3% clients • Ho
Slide 13: Austraclear
Austraclear Highlights Areas of Focus For personal use only Revenue $45.3 million, up 10.4% Renminbi Settlement Service • Transaction volumes down 1.9% • Launched July 2014 • Average balances up 13.3% to $1.7 trillion • Provides real-time RMB settlement facility • Number of debt issuances up 10.6% •
Slide 14: Focus on Customers
Focus on Customers For personal use only Customer Experience Engagement and Alignment Improving Capabilities Investments • New ASX Customer Experience Team in place, member • Acquired 49% stake in the Yieldbroker bond/swap of Group Executive Committee platform, remainder owned by key ASX customers S
Slide 15: Impact of Fee Reductions on FY16 Revenues
Impact of Fee Reductions on FY16 Revenues For personal use only Derivative fee reductions were implemented replacing other rebate schemes Variance FY15 FY16 FY15-FY16 $ Million $ Million $ Million Derivatives and OTC Markets • FY16 full-year impact estimated at recent activity Fee Reductions 17.8 24
Slide 16: Interest and Dividend Income
Interest and Dividend Income For personal use only FY15 FY14 % Highlights $ Million $ Million Variance • Total net interest income down 1.1% ASX Group Net • ASX Group net interest income down 5.7% as 26.9 28.6 (5.7%) market rates fell Interest Income • Net interest earned on collateral balances up 3
Slide 17: Expenses ($M)
Expenses ($M) For personal use only Highlights 160.1 153.6 146.2 • Staff costs up 4.4% 141.1 63.7 135.5 61.2 ‒ Higher salaries and incentives 59.0 58.5 56.7 ‒ Higher recruitment costs ‒ Average headcount down 1.9% to 524 FTEs 96.4 • Other costs up 4.1% 92.4 87.2 82.6 78.8 • Significant items restruc
Slide 18: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 50.2 45-50 43.2 44.4 39.1 38.9 FY11 FY12 FY13 FY14 FY15 FY16 1 Normal ($118.3m) ALC (Data & Customer Support Centre $42.5m) Post-Trade ($55.0m) Highlights • Average total capital expenditure since 2011: $43 million per annum • Capital expenditure guidan
Slide 19: Infrastructure Investment Program
Infrastructure Investment Program For personal use only Cash Futures Trading Market Trading platforms Trading Cash Equity Clearing/ Clearing & Phase I (Feb 15 – Dec 16) Options settlement Settlement Clearing platforms (CHESS)1 Market Market integrity Risk Phase II Monitoring and risk Management plat
Slide 20: Regulatory Environment
Regulatory Environment For personal use only Developments - Last Three Years Outstanding – Clearing Market Structure Investors Compelling case for single clearing facility • Equity market regulations supporting end-investors • Most efficient model for market the size of Australia Systemic risk • Eff
Slide 21: Capital Attribution (Net of Goodwill)
Capital Attribution (Net of Goodwill) Majority of capital supports clearing and settlement risks for equities and exchange-traded derivatives For personal use only 30 Jun-15 Capital Supporting Drivers/Comments $ Million Clearing Default Risk Financial Stability Standards – Cover 2 ASX Clear 250 • Pr
Slide 22: Post Balance Date Activity (to August)
Post Balance Date Activity (to 14 August) For personal use only Total Capital raised $9.2 billion July 2015 35.0% Cash market trading Cash market trading (Total Market - all (ASX on-market) venues) $3.8 billion $5.1 billion Average value per day 11.9% Average value per day 16.8% Futures trading Equi
Slide 23: Financial Results FY15
Financial Results FY15 Underlying Underlying Statutory Underlying For personal use only Revenues EBITDA DPS Expenses NPAT NPAT EPS $700.7m $540.6m 187.4c $160.1m $403.2m $397.8m 208.4c 6.4% 7.1% 5.2% (4.2%) 5.2% 3.8% 5.0% • Positive revenue performance ‒ Impact of fee reductions in Derivatives busin
Slide 24: For personal use only
For personal use only ¢ Internationally competitive Customer driven Globally connected World class as e WWW.aSX.COM.aU | 131 ASX (131270) | International 161 29388 0000
Slide 25: Appendices
For personal use only Appendices 1. Income Statement 2. Balance Sheet 3. Key Financial Ratios 4. Transaction and Activity Levels 5. Free Cash Flow Summary 6. Capital Supporting Clearing and Settlement 7. Cash Market Clearing and Settlement Income Statements 25
Slide 26: 1. Income Statement
1. Income Statement FY11 FY12 FY13 FY14 FY15 For personal use only $ Million $ Million $ Million $ Million $ Million Listings and Issuer Services 150.3 133.4 139.7 154.9 176.6 Listings 122.1 109.9 113.2 127.0 143.3 Annual Listing Fees 57.8 60.6 60.0 62.1 70.7 Initial Listing Fees 13.1 6.2 7.2 17.9 2
Slide 27: 1. Income Statement (Continued)
1. Income Statement (Continued) FY11 FY12 FY13 FY14 FY15 For personal use only $ Million $ Million $ Million $ Million $ Million Staff 78.8 82.6 87.2 92.4 96.4 Occupancy 13.6 15.5 13.7 14.3 13.7 Equipment 21.3 21.6 22.4 23.0 24.0 Administration 13.9 13.5 15.6 16.3 17.2 Variable 4.5 3.7 3.8 4.3 5.1 A
Slide 28: 2. Balance Sheet
2. Balance Sheet For personal use only 30 Jun 11 30 Jun 12 30 Jun 13 30 Jun 14 30 Jun 15 $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 3,318.6 3,696.2 4,496.2 5,015.6 4,879.0 Goodwill 2,262.8 2,262.8 2,317.6 2,317.6 2,317.6 Investments 213.9 16
Slide 29: 3. Key Financial Ratios
3. Key Financial Ratios For personal use only FY11 FY12 FY13 FY14 FY15 Basic EPS (including significant items) 198.4c 190.6c 195.5c 198.5c 205.7c Diluted EPS (including significant items) 198.4c 190.6c 195.5c 198.5c 205.7c Underlying EPS (excluding significant items) 200.8c 194.6c 195.5c 198.5c 208.
Slide 30: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services For personal use only FY11 FY12 FY13 FY14 FY15 Total domestic market capitalisation ($bn) – period end $1,349 $1,186 $1,347 $1,552 $1,612 Total number of listed entities (includes all stapled entities) - period end 2,247 2,211 2,185 2,192 2,220 Number of new listings
Slide 31: 4.2 Cash Market
4.2 Cash Market For personal use only FY11 FY12 FY13 FY14 FY15 Trading days 253 253 252 253 254 Total cash market trades ('000) 144,321 165,806 174,750 181,861 190,647 Average daily cash market trades 570,440 655,359 693,454 718,817 750,578 Open trading ($bn) $803.513 $717.882 $645.161 $612.491 $698
Slide 32: 4.3 Equity Options
4.3 Equity Options For personal use only FY11¹ FY12 FY13 FY14 FY15 Trading days (exchange traded options) 253 253 252 253 254 Equity options (‘000) 153,553 151,619 145,531 116,343 109,546 Index options and futures (‘000) 7,016 12,125 11,762 8,249 10,958 Grains futures and options on futures (‘000) 4
Slide 33: 4.4 Futures
4.4 Futures For personal use only FY11 FY12 FY13 FY14 FY15 Trading days (futures and options) 256 256 255 256 256 Total contracts - futures ('000) ASX SPI 200 10,506 11,811 10,259 9,715 10,301 90 day bank bills 20,729 21,652 25,866 25,903 28,706 3 year bonds 38,832 42,503 47,499 47,886 49,717 10 yea
Slide 34: 4.4 Futures (Continued)
4.4 Futures (Continued) For personal use only FY11 FY12 FY13 FY14 FY15 Total contracts - options on futures ('000) ASX SPI 200 379 477 349 473 454 90 day bank bills 52 25 7 4 - 3 year bonds 562 347 526 416 245 Overnight 3 year bonds 2,039 1,029 1,914 1,523 896 Intra-day 3 year bonds 1,504 978 1,443
Slide 35: 4.5 Information and Technical Services
4.5 Information and Technical Services FY11 FY12 FY13 FY14 FY15 For personal use only Technical Services (number at period end) Liquidity access ASX sessions 1,737 1,737 1,526 1,431 1,185 ASX gateways 321 302 248 233 207 ASX liquidity cross connects 71 75 70 61 55 ASX 24 gateways 431 352 272 241 228
Slide 36: 4.6 Austraclear
4.6 Austraclear For personal use only FY11 FY12 FY13 FY14 FY15 Settlement days 253 253 252 253 254 Transactions ('000) Cash transfers 613 616 587 600 602 Fixed interest securities 638 733 763 800 774 Discount securities 237 217 183 162 157 Foreign exchange 31 22 21 21 22 Other 12 11 12 10 9 Total tr
Slide 37: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances For personal use only FY11 FY12 FY13 FY14 FY15 $ Million $ Million $ Million $ Million $ Million Balances at period end ASX Clear – initial margins 290.6 254.5 561.4 549.8 673.7 ASX Clear (Futures) – initial margins House 495.3 686.6 907.0 849.3 746.0 ASX Clea
Slide 38: 5. Free Cash Flow Summary
5. Free Cash Flow Summary FY11 FY12 FY13 FY14 FY15 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group cash Total cash and short-term investments 3,318.6 3,696.1 4,496.2 5,015.6 4,879.0 Less participants’ margins and cash commitments (2,516.4) (2,939.6) (3,753.1) (3,986
Slide 39: 6. Capital Supporting Clearing and Settlement
6. Capital Supporting Clearing and Settlement FY11 FY12 FY13 FY14 FY15 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group shareholders’ equity 3,021.1 2,995.0 3,321.8 3,670.9 3,759.7 Capital supporting clearing and settlement entities ASX Clear – default fund contribut
Slide 40: 7. Cash Market Clearing and Settlement Income Statements
7. Cash Market Clearing and Settlement Income Statements For personal use only Cash Market Cash Market Cash Market Cash Market Clearing Clearing Settlement Settlement FY15 FY14 FY15 FY14 $ Million $ Million $ Million $ Million Operating Revenues 47.5 43.5 45.1 43.5 Operating Expenses 10.7 10.5 12.5
Slide 41: For personal use only
For personal use only ¢ Internationally competitive Customer driven Globally connected World class as e WWW.aSX.COM.aU | 131 ASX (131270) | International 161 29388 0000