ASX Group Report


Half-Year 2016 Results Presentation


ASX Limited


Elmer Funke Kupper

Peter Hiom 11 February 2016


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 (11 February 2016). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate.


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This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the ASX Group. These forward-looking statements are based on estimates, projections and assumptions made by the ASX Group about circumstances and events that have not yet taken place. Although the ASX Group believes the forward-looking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the ASX Group's control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). The ASX Group makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements.


Forward-looking statements may be identified by words such as "aim", "anticipate", "assume", "continue", "could", "estimate", "expect", "intend", "may", "plan", "predict", "should", "will", or "would" or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends.


The forward-looking statements included in this document speak only as of the date of this document. The ASX Group does not intend to update the forward-looking statements in this document in the future.


2


Revenues

$376.2m 7.9%

Expenses

$85.1m (4.4%)

EBITDA

$291.1m

8.9%

NPAT

$213.1m 7.3%

EPS 110.2c

7.3%

DPS 99.1c

7.4%


Positive revenue growth of 7.9%

  • Growth in Listings, Trading Services and Post-Trade Services

  • Derivatives and OTC Markets flat with fee reductions in futures offsetting volume growth

  • Revenue reporting aligned to four main businesses under new ASX management structure


    Expense growth of 4.4%

  • Acceleration of investment in post-trade services

  • FY16 guidance expense growth approximately 5.5%


    Capital expenditure $18.7 million

  • FY16 capital expenditure guidance approximately $50 million

  • Trading and risk management platform projects underway with delivery targeted for CY16

  • Next phase will focus on post-trade services, including potential use of distributed ledger technology

  • Initial investment in Digital Asset Holdings of $14.9 million - 5% holding and warrant


Operating revenues and operating expenses as per the Group segment reporting

Variance expressed favourable / (unfavourable) 3


Revenues

$376.2m

Expenses

$85.1m

EBITDA

$291.1m

NPAT

$213.1m

EPS 110.2c

DPS 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 Stability Standards on track

  • Distributed ledger technology could materially change the clearing and settlement processes in the equity

    market, delivering significant benefits to users and avoiding investment in legacy infrastructure


    Investment in strategic positioning

  • Significant investment in infrastructure - opportunity for innovation in trading and post-trade services

  • Products and services that give investors flexibility and choice

  • Higher customer engagement and improved service delivery

  • Management responsibilities aligned with business priorities


Operating revenues and operating expenses as per the Group segment reporting

Variance expressed favourable / (unfavourable) 4

ASX Limited issued this content on 11 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 22:02:09 UTC

Original Document: http://www.asx.com.au/documents/investor-relations/Half-Year_2016_Results_Presentation.pdf