Slide 1: Full-Year 2014 Results Presentation
Full-Year 2014 Results Presentation For personal use only ASX Limited Elmer Funke Kupper, Managing Director and CEO 21 August 2014
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 August 2014). It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Financial Results FY14
Financial Results FY14 For personal use only Revenues Expenses EBITDA Net profit EPS DPS $658.3m $153.6m $504.7m $383.2m 198.5c 178.1c 6.6% (5.1%) 7.1% 10.0% 1.5% 4.6% • Profit after tax $383.2m, up 10.0% ‒ EBITDA up 7.1% driven by revenue growth ‒ EPS and DPS growth impacted by 2013 capital raising
Slide 4: Income Statement
Income Statement For personal use only FY14 FY13 % Variance $ Million $ Million Operating Revenues 658.3 617.4 6.6% Operating Expenses 153.6 146.2 (5.1%) EBITDA 504.7 471.2 7.1% Depreciation and Amortisation 33.8 30.4 (11.2%) EBIT 470.9 440.8 6.8% Interest and Dividend 70.7 53.5 32.3% Profit Before
Slide 5: EPS Movement (Cents per Share)
EPS Movement (Cents per Share) For personal use only 19.7 (16.7) 198.5 195.5 EPS Up 1.5% FY13 Movement due to Movement due to FY14 increased earnings increased number of shares • $553.8 million capital raising in 2013 to strengthen the Group’s clearing houses • EPS up 1.5% – higher earnings partly o
Slide 6: Revenue Movement ($M)
Revenue Movement ($M) - 658.3 For personal use only 2.5 3.1 7.0 10.4 2.7 15.2 617.4 Up Up Up Up Up Up Up 10.9% 2.3% 5.2% 11.4% 6.2% 6.4% 0.4% Operating Revenues Up 6.6% FY13 Listings and Cash Market Derivatives Information Technical Austraclear Other FY14 Issuer and OTC Services Services Revenue Ser
Slide 7: Revenue Performance
Revenue Performance For personal use only FY14 FY13 % Variance $ Million $ Million Listings and Issuer Services 154.9 139.7 10.9% Cash Market 117.3 114.6 2.3% Derivatives and OTC Markets 207.7 197.3 5.2% Information Services 68.8 61.8 11.4% Technical Services 52.9 49.8 6.2% Austraclear 41.1 38.6 6.4
Slide 8: Quarterly Performance
Quarterly Performance For personal use only Revenue Growth (%) EBITDA Growth (%) Strong IPO 9.4% 8.8% activity 7.9% 7.3% 6.5% 6.0% 4.4% 4.5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Contribution from Listings and Issuer Services Operating revenues as per the Group segment reporting 8
Slide 9: Leading Multi-Asset Class Exchange Group
Leading Multi-Asset Class Exchange Group For personal use only • Develop investment ‘supermarket’ Global leader in • Continue to innovate in trade execution A$ and NZ$ markets • Expand Technical Services, re-engineer Information Services • Grow derivatives and post-trade services World-class, global
Slide 10: Listings and Issuer Services
Listings and Issuer Services Highlights Areas of Focus For personal use only Revenue $154.9 million, up 10.9% Listings and Issuer Services • 107 IPOs (82 pcp) • Rights issue timetable reduced from 26 to 19 days • IPO capital $27.7 billion, up 179.2% • Launch of ‘ASX Evolve’ program for listed entiti
Slide 11: Cash Market
Cash Market Highlights Areas of Focus For personal use only Revenue $117.3 million, up 2.3% Trading • Trading $33.1 million, up 0.7%, Clearing $43.1 million, up • Continued innovation and engagement with buy-side 3.6% and Settlement $41.1 million, up 2.3% • Centre Point 7.4% of ASX on-market value (
Slide 12: Derivatives and OTC Markets
Derivatives and OTC Markets Highlights Areas of Focus For personal use only Revenue $207.7 million, up 5.2% Product Development • ASX 24 Derivatives $185.5 million, up 9.7% • Activity in VIX and sector futures below expectations ‒ Contracts traded up 2.1% • ETOs - initiatives to stabilise and return
Slide 13: Building a Globally Competitive Derivatives Market
Building a Globally Competitive Derivatives Market For personal use only Regulation Balance sheet • US and EU recognition (relief) • Highest global capital • Greater certainty around standards ($553.8m location requirements capital raising in 2013) • Greater focus on • AA- long-term credit competiti
Slide 14: Information and Technical Services
Information and Technical Services Highlights Areas of Focus For personal use only Information Services $68.8 million, up 11.4% Information Services • Pricing changes implemented 1 July 2013 • Alignment to changing user profiles Technical Services $52.9 million, up 6.2% Technical Services • Hosting:
Slide 15: Austraclear
Austraclear Highlights Areas of Focus For personal use only Revenue $41.1 million, up 6.4% ASX Collateral Service • Transaction volumes up 1.8% • Launched with support of nine foundation customers • Average balances up 7.4% to $1.5 trillion • Reduces collateral costs for ASX clients by utilising fix
Slide 16: Interest and Dividend Income
Interest and Dividend Income For personal use only FY14 FY13 % Highlights $ Million $ Million Variance • Total net interest income up 35.9% ASX Group Net • ASX Group net interest income up 118.7% 28.6 13.1 118.7% Interest Income following capital raising and repayment of debt facility Net Interest E
Slide 17: Expenses ($M)
Expenses ($M) For personal use only 153.6 Highlights 146.2 141.1 • Total expenses up 5.1% 134.2 135.5 61.2 59.0 58.5 56.5 56.7 ‒ Staff costs up 6.0%. Average headcount up 3.7% to 534 FTEs. Increase driven by initiatives 87.2 92.4 ‒ Other costs up 3.8%. Higher equipment 78.8 82.6 expenses to support
Slide 18: Capital Expenditure ($M)
Capital Expenditure ($M) For personal use only 50.2 43.2 39.1 38.9 27.6 FY10 FY11 FY12 FY13 FY14 Normal Data Centre Post-Trade Highlights • FY14 capital expenditure $43.2 million • Post-trade services investment $25 million in FY14, $49 million over 3 years • Guidance FY15 capital expenditure: $40 t
Slide 19: ASX's Recent Submissions
ASX’s Recent Submissions ASX advocates a greater focus on the competitiveness of Australia and the For personal use only opportunities in Asia Stability Vibrant Domestic Economy Asian Opportunity Financial System Inquiry Competition Policy Review 1. Work with other financial centres to ensure global
Slide 20: Post Balance Date Activity
Post Balance Date Activity For personal use only Market conditions • Global market conditions ‒ Low volatility – VIX at 7 year low ‒ Benign interest rate environment ‒ Limited impact from geopolitics to date • Domestic economy ‒ Resilience in business and consumer markets ‒ Rising unemployment ‒ Pol
Slide 21: Financial Results FY14
Financial Results FY14 For personal use only Revenues Expenses EBITDA Net profit EPS DPS $658.3m $153.6m $504.7m $383.2m 198.5c 178.1c 6.6% (5.1%) 7.1% 10.0% 1.5% 4.6% • Profit after tax $383.2m, up 10.0% ‒ EBITDA up 7.1% driven by revenue growth ‒ EPS and DPS growth impacted by 2013 capital raising
Slide 22: For personal use only
For personal use only Globally connected World class ¢ Internationally competitive Customer driven WWW.aSx.COM.aU Customer service 131 ASX (131 279) | International 461 2 9238 0000
Slide 23: 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 23
Slide 24: 1. Income Statement
1. Income Statement FY10 FY11 FY12 FY13 FY14 For personal use only $ Million $ Million $ Million $ Million $ Million Listings and Issuer Services 146.1 150.3 133.4 139.7 154.9 Listings 115.5 122.1 109.9 113.2 127.0 Annual Listing Fees 52.8 57.8 60.6 60.0 62.1 Initial Listing Fees 6.3 13.1 6.2 7.2 17
Slide 25: 1. Income Statement (Continued)
1. Income Statement (Continued) FY10 FY11 FY12 FY13 FY14 For personal use only $ Million $ Million $ Million $ Million $ Million Staff 77.7 78.8 82.6 87.2 92.4 Occupancy 13.9 13.6 15.5 13.7 14.3 Equipment 22.2 21.3 21.6 22.4 23.0 Administration 15.2 13.9 13.5 15.6 16.3 Variable 5.2 4.5 3.7 3.8 4.3 A
Slide 26: 2. Balance Sheet
2. Balance Sheet For personal use only 30 Jun 10 30 Jun 11 30 Jun 12 30 Jun 13 30 Jun 14 $ Million $ Million $ Million $ Million $ Million Assets Cash and Available-For-Sale Financial Assets 3,716.8 3,318.6 3,696.2 4,496.2 5,015.6 Goodwill 2,262.8 2,262.8 2,262.8 2,317.6 2,317.6 Investments 206.4 21
Slide 27: 3. Key Financial Ratios
3. Key Financial Ratios For personal use only FY10 FY11 FY12 FY13 FY14 Basic EPS (including significant items) 187.4c 198.4c 190.6c 195.5c 198.5c Diluted EPS (including significant items) 187.4c 198.4c 190.6c 195.5c 198.5c Underlying EPS (excluding significant items) 190.0c 200.8c 194.6c 195.5c 198.
Slide 28: 4.1 Listings and Issuer Services
4.1 Listings and Issuer Services For personal use only FY10 FY11 FY12 FY13 FY14 Total domestic market capitalisation ($bn) – period end $1,254 $1,349 $1,186 $1,347 $1,552 Total number of listed entities (includes all stapled entities) - period end 2,192 2,247 2,211 2,185 2,192 Number of new listings
Slide 29: 4.2 Cash Market
4.2 Cash Market For personal use only FY10 FY11 FY12 FY13 FY14 Trading days 253 253 253 252 253 Total cash market trades ('000) 132,250 144,321 165,806 174,750 181,861 Average daily cash market trades 522,729 570,440 655,359 693,454 718,817 Open trading ($bn) $972.090 $803.513 $717.882 $645.161 $612
Slide 30: 4.3 ASX Derivatives
4.3 ASX Derivatives For personal use only FY10 FY11 FY12 FY13 FY14 Trading days (ASX) 253 253 253 252 253 Equity options (‘000) 16,639 39,749 151,619 145,531 116,343 Index options and futures (‘000) 4,628 7,016 12,125 11,762 8,249 Grains futures and options on futures (‘000) 387 483 154 - - (transfe
Slide 31: 4.4 ASX Derivatives
4.4 ASX 24 Derivatives For personal use only FY10 FY11 FY12 FY13 FY14 Trading days (ASX 24) 256 256 256 255 256 Total contracts - futures ('000) ASX SPI 200 9,738 10,506 11,811 10,259 9,715 90 day bank bills 16,538 20,729 21,652 25,866 25,903 3 year bonds 30,196 38,832 42,503 47,499 47,886 10 year b
Slide 32: 4.4 ASX Derivatives (Continued)
4.4 ASX 24 Derivatives (Continued) For personal use only FY10 FY11 FY12 FY13 FY14 Total contracts - options on futures ('000) ASX SPI 200 352 379 477 349 473 90 day bank bills 37 52 25 7 4 3 year bonds 405 562 347 526 416 Overnight 3 year bonds 1,375 2,039 1,029 1,914 1,523 Intra-day 3 year bonds 67
Slide 33: 4.5 Information and Technical Services
4.5 Information and Technical Services FY10 FY11 FY12 FY13 FY14 For personal use only Technical Services (number at period end) Liquidity access ASX sessions 1,641 1,737 1,737 1,526 1,431 ASX gateways 404 321 302 248 233 ASX liquidity cross connects N/A 71 75 70 61 ASX 24 gateways 405 431 352 272 24
Slide 34: 4.6 Austraclear
4.6 Austraclear For personal use only FY10 FY11 FY12 FY13 FY14 Settlement days 253 253 253 252 253 Transactions ('000) Cash transfers 613 613 616 587 600 Fixed interest securities 474 638 733 763 800 Discount securities 290 237 217 183 162 Foreign exchange 30 31 22 21 21 Other 13 12 11 12 10 Total t
Slide 35: 4.7 CCP Participant Collateral Balances
4.7 CCP Participant Collateral Balances For personal use only FY10 FY11 FY12 FY13 FY14 $ Million $ Million $ Million $ Million $ Million Balances at period end ASX Clear – initial margins 353.6 290.6 254.5 561.4 549.8 ASX Clear (Futures) – initial margins House 615.0 495.3 686.6 907.0 849.3 ASX Clea
Slide 36: 5. Free Cash Flow Summary
5. Free Cash Flow Summary FY10 FY11 FY12 FY13 FY14 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group cash Total cash and short-term investments 3,716.8 3,318.6 3,696.1 4,496.2 5,015.6 Less participants’ margins and cash commitments (2,990.2) (2,516.4) (2,939.6) (3,753
Slide 37: 6. Capital Supporting Clearing and Settlement
6. Capital Supporting Clearing and Settlement FY10 FY11 FY12 FY13 FY14 For personal use only $ Million $ Million $ Million $ Million $ Million ASX Group shareholders’ equity 2,921.3 3,021.1 2,995.0 3,321.8 3,670.9 Capital supporting clearing and settlement entities ASX Clear – default fund contribut
Slide 38: 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 FY14 FY13 FY14 FY13 $ Million $ Million $ Million $ Million Operating Revenues 43.5 42.5 43.5 42.8 Operating Expenses 10.5 10.1 12.1
Slide 39: For personal use only
For personal use only Globally connected World class ¢ Internationally competitive Customer driven WWW.aSx.COM.aU Customer service 131 ASX (131 279) | International 461 2 9238 0000