Asx Limited · ASX:ASX
Asx — Australian Stock Exchange — FY2006 Earnings Presentation
18 slides from Asx's earnings presentation, Aug 17, 2006
Slide 1: Australian Stock Exchange Limited 2005/2006 Full Year Results
Australian Stock Exchange Limited 2005/2006 Full Year Results Robert Elstone, MD and CEO John Hayes, CFO (ASX) Martin Davey, CFO (SFE) 17 August 2006 Sydney, Australia The material contained in this document is a presentation of general information about ASX’s and SFE's activities current as at the
Slide 2: Basis of preparation: AIFRS and AGAAP comparatives
Results for the year ended 30 June 2006 have been determined based on Australian Equivalents to International Financial Reporting Standards (AIFRS). Comparatives for the year and six months ended 30 June 2005 have been restated based on AIFRS. Comparisons referred to in this analysis for reporting p
Slide 3: Introduction / ASX Performance Summary — FY06
. e e Introduction ASX Financial and Operational Highlights SFE Financial and Operational Highlights Post Balance Date and Outlook Robert Elstone John Hayes Martin Davey Robert Elstone Questions Close 1, Ey 4 om CaprAarmmanm ed ASX Performance Summary — FY06 Net profit after tax up 24.6% to $137.1 m
Slide 4: SFE Performance Summary: Net profit after tax up 26.3% to $42.3 million
e Net profit after tax up 26.3% to $42.3 million * Revenue up 17.0% to $76.4 million * Expenses (inc D&A) up 1.0% to $26.8 million * Expenses (ex D&A) up 4.4% to $24.9 million + Interim dividend up 53.1% to 32.6 cents per share ¢ Total Exchange volumes up 26.4% to 38.9 million *Futures up 25.8% to 3
Slide 5: ASX Result Highlight
ASX Result Highlight Full year ended 30 June 2006 137.4 ‘4 : . E ie 28 Sid 110.0 | FY05 Revenue Expenses Interest and Tax Other FY06 Normal Dividends Normal NPAT NPAT @ ASX Excludes merger related costs Net Profit After Tax and Reven Net Profit After Tax Revenue $200 $400 @ Significant terms 9 t @ S
Slide 6: Financial Performance
iS ance YO ay sre, yt, sry item, & Pp rt “en singed Financial Perform Normal Earnings Per Share Dividends Per Share $1.40 $1.40 @ Special dividend $1.20 24.6% increase $1.20 4 @ Total dividends 26.3% increase $1.00 $1.00 | $0.80 $0.80 4 $0.60 $0.60 | $0.40 $0.40 4 $0.20 $0.20 4 $0.00 $0.00 + : = : 7
Slide 7: Revenue
Revenue Listings Equities Derivatives Information Services Other Total Normal Revenue 12 mths to vs. 5 year Jun 2005 pcp CAGR 71.5 7.7% 15.8% 118.2 10.7% TAY 44.0 10.0% 4.8% 32.1 11.2% 44% 13.7 - 7.8% 279.5 3% 8.3% @ ASX Market Trading Vol Equities 241.0 $8.00 Total trades {LHS) mmm Total average re
Slide 8: Capital Raised
eg Ae Capital Raised ngs Business Listings Revenue $60 1,600. $90 Secondary capital (LHS) 0 Other gum (PO capital (LHS) Subsequent oom Narket Cap {RHS} @ initial B Annual 4,060 $60 c 2 & wn a 500 $30 0 $0 ] ag 4 | oe 2 o + a oOo x ow © 2 o + a 7 ¥ 6 @ SS eee eee S £ FS FSF fF FS F Fs Kiner ; “ja ] J
Slide 9: Dividend policy and Accounting for the ASX/SFE Merger
* Dividend policy — 90% of Normal Net Profit After Tax fully franked * $100 million capital return subject to tax advice ¢ Shareholder approval will be sought at 9 October 2006 Annual General Meeting * Further capital management initiatives not a near term priority and subject to risk capital (inclu
Slide 10: SFE Result Highlight: Half year ended June 2006
fe Fen bom ee Half year ended 30 June 2006 Change from “HYO5 * Excludes merger related costs Dividends ij 2 = 2.4 E oS En 42.3 we 33.5 HY 05 NPAT Revenue Expenses” _ Interest and Tax* HYO6 NPAT™
Slide 11: SFE Financial Performance
@ Guat SSN Net Profit Af Net Profit After Tax * $50 26.3% increase $ mitlion r Tax an $ million d Revenue Revenue $100 17.0% increase $0 T T T 1 r 1 a HY¥01 HYO02 HYO3 HYO4 HYO5 HYO6 HYO1 HYO2 HYO3 HY04 HYO5S HYO6 * Excludes merger related costs FE Finan oe a Pert. 4, UPI Ae op sn ha, PiNanGial Pero
Slide 12: SFE Revenue and Average Daily Exchange Volumes
es iG BPE ¢ P% 6 months to 30 6 months to 30 June 06 June 05 % Change $m $m Exchange Fees 56.2 46.7 20% 4 Market Data 4.8 4.2 17% # Settlement & Depository 6.7 6.5 AG 4 Registry 25 2.0 29% 4 Participation 1.2 1.2 2% 4 Technology Infrastructure 3.9 3.7 6% 4 Other Revenue 1.0 1.0 5% [Total Revenue * 7
Slide 13: Contracts per Day
Contracts per Day Exchange Traded 390 $1.80 fuzzy Average Daily Volume {800} (LHS) women A Yerage Fee Per Contract (RHS) 260 + ”~ + $1.60 hy, ‘, " ' Mi 130 5 + $1.40 0o4 + + $1.20 FYO4 FYOS | HYO6 FYO4 FYo2 FYO3 Non Exchange Traded 6 $14 Average Daily Vofume (000) (LHS) wwmmmnne Ay Orage Fee inc Hol
Slide 14: SFE Expenses and Dividends, Free Cash Flow and Capex
6 months to 30 6 months to 30 June 06 June 05 % Change $m $m Employee Related 12.8 12.0 7% 4 Premises 14 1.3 0% Computer Related 64 6.7 4% Clearing Guarantee 0.3 0.6 50% Y Insurance, Legal, 1.6 1.5 5% 4 Accounting & Bank Fees Other Expenses 24 1.8 33% t Total Expenses (excl depreciation) * 24.9 23.9
Slide 15: Key Performance Indicators
Key Performance 2006 Half Year Volume Growth” (Derivatives) 26% Returns” 38% {Return on Equity} Efficiency Ratio 35% (Total Expenses as % of Revenue) People 174 {Average FTEs) System Availability SYCOM (Derivatives trading) 99.94% SECUR (Derivatives clearing) 100.00% FINTRACS (Austraclear) 100.00% *
Slide 16: ASX Transformation since 1 July 2006
zat EV & ga. RE Co aS wud oO aa er a ©. < Q SS — es RISE o Es oll ASK Transformation ; Since 1 July 2006 * ASX/SFE merger effected 11 July 2006 * Changing Leadership * 3 new Directors from 25 July 2006 including MD and CEO « 2current ASX Directors to retire at 2006 AGM * Executive Management * GE St
Slide 17: ASX Group overview: Trading, Clearing and Settlement
Trading + Capitat raising + Speculation, arbitrage and hedging + Market data Fait, orderly and 0 Seporvisi + 1,920 fisted entities + information vendors + Retail and insfifutional investors. + Regulators and Goverment + ASK shareheiders, + $1.2 Sillion total market capitalisation + Over 120k average
Slide 18: Outlook: Synergies and Costs
4 BB or, ym Gh te oe he sim carey & C« g 9% & ie, vg ge say grate sen Month Outlook ~ Synergies and Costs Merger cost synergies Cost increases Purchase accounting under AIFRS $14 million to $18 million merger synergies achievable Calculated off June 2006 pre-merger combined cost based of both ASX an
Australian Stock Exchange — FY2006 Earnings Presentation on 6ix