Asx Limited · ASX:ASX
Asx — Citi Australian & New Zealand Investment Conference 2016
23 slides from Asx's conference presentation, Mar 7, 2016
Slide 1: ASX Presentation to Investors (cover announcement)
7 March 2016 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX PRESENTATION TO INVESTORS
Slide 2: Investor Presentation - Australian & NZ Investment Conference
For personal use only Investor Presentation Australian & NZ Investment Conference ASX Limited Elmer Funke Kupper Managing Director and CEO March 2016
Slide 3: 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 (7 March 2016). It is provided in summary and does not purport to be complete. You should not rely upon it as
Slide 4: Financial Results 1H16
Financial Results 1H16 Revenues Expenses EBITDA NPAT EPS DPS For personal use only $376.2m $85.1m $291.1m $213.1m 110.2c 99.1c 7.9% (4.4%) 8.9% 7.3% 7.3% 7.4% Positive revenue growth of 7.9% • Growth in Listings, Trading Services and Post-Trade Services • Derivatives and OTC Markets flat with fee re
Slide 5: Financial Results 1H16 (Continued)
Financial Results 1H16 (Continued) Revenues Expenses EBITDA NPAT EPS DPS For personal use only $376.2m $85.1m $291.1m $213.1m 110.2c 99.1c 7.9% (4.4%) 8.9% 7.3% 7.3% 7.4% Balance sheet and regulatory settings • Strong balance sheet; AA- long-term credit rating from S&P • Compliance with Financial St
Slide 6: Income Statement
Income Statement 1H16 1H15 For personal use only $m $m % Variance Operating Revenues 376.2 348.7 7.9% Operating Expenses 85.1 81.4 (4.4%) EBITDA 291.1 267.3 8.9% Depreciation and Amortisation 20.8 18.6 (12.2%) EBIT 270.3 248.7 8.7% Interest and Dividend Income 33.7 34.4 (2.0%) Profit Before Tax 304.
Slide 7: Business Structure from July 2015
Business Structure from 1 July 2015 Deputy CEO For personal use only Listings and Trading Equities Derivatives and Issuer Services Services Post-Trade OTC Markets Scope Scope Scope Scope • Listings • Equities trading • Equities Clearing • Futures • Equities Settlement • Exchange Traded Options • Iss
Slide 8: Revenue Performance
Revenue Performance 1H16 1H15 % of Group For personal use only $m $m % Variance Revenue Listings and Issuer Services 105.6 91.3 15.6% 28% Listings 82.4 70.9 16.3% Issuer Services 23.2 20.4 13.2% Trading Services 91.4 84.6 8.1% 24% Cash Market Trading 20.3 17.7 14.9% Information Services 40.6 36.7 10
Slide 9: Activity Levels
Activity Levels Cash Market Trading Total Capital Raised ($ Billion) ASX Average Daily Value On-Market ($ Billion) For personal use only 54.6 50.3 4.131 4.073 3.365 3.495 38.6 3.208 36.7 29.3 1H14 2H14 1H15 2H15 1H16 1H14 2H14 1H15 2H15 1H16 Futures - Average Daily Contracts ('000) Equity Options -
Slide 10: ASX Group Priorities
ASX Group Priorities For personal use only • Innovate in fragmented equity market Global Leader in A$ and NZ$ • Build on leadership in A$ and NZ$ derivatives markets • Grow listings franchise Investment Supermarket • Extend suite of investment options – equities, debt, funds • Upgrade technology inf
Slide 11: Listings and Issuer Services
Listings and Issuer Services For personal use only Highlights Areas of Focus Revenue $105.6 million, up 15.6% Grow Listings Franchise • 77 IPOs; IPO capital $13.5 billion, down 28.9% • New Zealand – simplified dual listings process • Secondary capital $41.1 billion, up 109.6%, including • Tech secto
Slide 12: Trading Services (1/2)
Trading Services (1/2) For personal use only Highlights Areas of Focus Revenue $91.4 million, up 8.1% Cash Market Trading • Cash Market Trading $20.3 million, up 14.9% • On-market trading market share 88.4% ‒ Total on-market value traded per day up 18.6% • ASX Auctions and Centre Point accounted for
Slide 13: Trading Services (2/2)
Trading Services (2/2) For personal use only Highlights Areas of Focus Information Services $40.6 million, up 10.8% Information Services • Fee changes and higher index royalties • Expansion of data and analytic services Technical Services $30.5 million, up 1.0% • Hosting: 219 cabinets Technical Serv
Slide 14: Trading Services Revenue Mix Change and Growth
Trading Services Revenue Mix Change and Growth ($m) For personal use only $152.8 $151.4 $147.3 $158.0 $169.9 $91.4 100% 90% $42.5 $47.5 $30.5 $52.2 $55.6 $60.1 80% 70% 60% 50% $70.9 $66.9 $61.7 $68.8 $40.6 $73.7 40% 30% 20% $39.4 $37.0 10% $33.4 $33.6 $36.1 $20.3 0% FY11 FY12 FY13 FY14 FY15 1H16 13
Slide 15: Equity Post-Trade Services
Equity Post-Trade Services For personal use only Highlights Areas of Focus Revenue $51.0 million, up 11.7% • T+2 settlement from March 2016 • Clearing $27.2 million, up 17.3% • Investment in distributed ledger technology ‒ Value cleared up 18.4% ‒ Significant potential benefits to issuers, investors
Slide 16: Opportunity for Post-Trade Innovation
Opportunity for Post-Trade Innovation Investors For personal use only Consolidated view of holdings Issuers/listed companies Choice of real-time access to securities/cash Improved shareholder analytics Real-time dividend payments, voting Streamlined/automated corporate actions Simplified tax prepara
Slide 17: Derivatives and OTC Markets
Derivatives and OTC Markets For personal use only Highlights Areas of Focus Revenue $126.8 million, flat Product Development • Futures and OTC $91.6 million, up 1.3% • Launched 20 Year Bond Futures, mini SPI, East Coast ‒ Contracts traded up 5.1% Wheat futures/options, Deliverable Swap Futures, and
Slide 18: Futures and OTC Clearing Movement
Futures and OTC Clearing Movement For personal use only OTC Notional Value Cleared ($ Billion) Revenue Movement ($ Million) 207 5.1 0.7 (4.6) 188 91.6 90.4 137 136 140 137 118 121 102 104 71 62 43 17 15 20 2 5 1H15 Volume and Lower Higher 1H16 Dec-14 May-15 Apr-15 Dec-15 Aug-14 Jun-15 Oct-14 Nov-14
Slide 19: Interest and Dividend Income
Interest and Dividend Income For personal use only 1H16 1H15 $m $m % Variance Highlights ASX Group Net • ASX Group net interest income down 24.4% 11.3 14.9 (24.4%) from lower interest rates Interest Income • Net interest on collateral balances up 20.1% Net Interest Earned on Collateral 17.5 14.6 20.
Slide 20: Expenses ($ Million)
Expenses ($ Million) Highlights For personal use only • Expenses up 4.4% 85.1 • Staff costs up 1.5% 81.4 78.7 77.2 76.4 34.4 31.5 ‒ Higher staff and recruitment costs, 30.0 31.2 32.2 partially offset by increased capitalisation ‒ Average headcount down 0.6% to 523 FTEs 49.9 50.7 47.2 45.2 46.5 • Oth
Slide 21: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 31.4 23.5 24.6 20.5 18.5 18.6 18.7 15.4 13.0 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 Normal ($93.9m) ALC (Data and Customer Support Centre $17.8m) Post-Trade ($55.4m)¹ Technology Transformation ($17.9m)² Highlights • Focus on technology transformat
Slide 22: Financial Results 1H16
Financial Results 1H16 Revenues Expenses EBITDA NPAT EPS DPS For personal use only $376.2m $85.1m $291.1m $213.1m 110.2c 99.1c 7.9% (4.4%) 8.9% 7.3% 7.3% 7.4% Positive revenue performance • Growth in Listings, Trading Services and Post-Trade Services • Derivatives and OTC Markets flat following fee
Slide 23: Thank you
For personal use only Thank you
ASX — Citi Australian & New Zealand Investment Conference 2016 on 6ix