2020 ASX Limited Annual General Meeting 30 September 2020
ASX Limited Board Rick Holliday-Smith Dominic Stevens Independent, Non-Executive Chairman Managing Director and CEO, Executive Director BA (Hons), FAICD BCom (Hons) Damian Roche Rob Woods Yasmin Allen Independent, Non-Executive Director Independent, Non-Executive Director Independent, Non-Executive Director BCom BCom BCom, FAICD Melinda Conrad Dr Ken Henry AC Peter Marriott Independent, Non-Executive Director Independent, Non-Executive Director Independent, Non-Executive Director BCom (Hons), PhD, DB h.c, FASSA MBA, FAICD BEc (Hons), FCA, MAICD Peter Nash Heather Ridout AO Peter Warne Independent, Non-Executive Director Independent, Non-Executive Director Independent, Non-Executive Director BCom, FCA, F Fin BEc (Hons) BA, FAICD 2 |
Procedural Matters Rick Holliday-Smith Chairman
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Chairman's Address Rick Holliday-Smith
FY20 financial highlights Strong business performance Und nderlyi ying ng Sta tatuto tutory 265.4 5.4c $9 $938. 8.4m $498. $4 8.6m Ope perati ting earni ning ngs net pr t profit t +4. 4.4% 4% +8. +8.6% +1. 1.4% revenue afte ter ta tax per s r share re Earni ning ngs Und nderlyi ying ng $5 $513.8m 8m 238.9 .9c $652 52.2 .2m Dividen dends ds net pr t profit t before in interest +4.5% .5% +4. 4.4% 4% per s r share re +8.5% +8. and nd t tax afte ter ta tax 8 | Variance relative to the prior comparative period (FY19 pcp) expressed favourable/(unfavourable)
Chairman's Address Rick Holliday-Smith
CEO’s Address Dominic Stevens
Historic initial impact of COVID-19 on financial markets Unprecedented volumes and volatility S&P/ASX 200 intraday moves – 2000 to 2020 COVID-19 CO 19 700 14% 12% 600 China devalues yuan Greek default Absolute percentage move 10% 500 Trump wins EU sovereign UK votes election 400 8% Tech bubble bursts debt crisis GFC linked events for Brexit US/China trade war 300 Sept 11 terror 6% attack 4% 200 2% 100 0 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 7 m trades 8 /10 24.5 m futures $31 bn registered in CHESS largest intra-day contracts traded secondary capital raised +122% vs previous pre trading ranges +11% vs previous monthly during June ’20 quarter COVID-19 daily record record set in March 2019 in history of S&P/ASX 200 second largest quarter in history set 6 August 2019 after December quarter ‘09 11 |
Our COVID-19 response was swift and continues Protecting our people as we continue to operate for our customers and Australia’s economy Trusted actions Resilient operations Efficient markets Safet ety a and nd w wel ellbei eing ng Acces ess t to func nctioni ning ng Proactively a addr ddresse ssed of our pe peopl ple infrastruct ructur ure and nd ser ervices es COVID i impli mplications 95% of employees $12.8bn 100% moved to working secondary capital uptime of from home (WFH) raisings facilitated ASX’s markets over a weekend by ASX relief Doubled Enhanced Increased asx.com.au wellbeing communication monthly website visitor numbers focus and investment with regulators 12 |
Delivered a robust FY20 financial performance Solid revenue growth from all four business units FY2 Y20 R REV EVEN ENUE E BY Y BUSIN INES ESS U UNIT ITS Equi quity ty P Post-Trade S Servic ices Lis istin ings and Issuer Servic ices • 7.3% revenue growth driven by • 17.0% revenue growth driven by strong equity volumes ‒ Strong secondary capital raisings ‒ Increase in shareholder activity Tradin ing Servic ices Deriv ivativ ives a and OTC Markets • 4.5% revenue growth driven by • 11.5% revenue growth driven by ‒ Austraclear balances and ‒ Historic equity trading volumes transactions growth ‒ Increased demand for data products ‒ Futures volumes steady and connectivity services 13 | Revenue and expenses as per the Group segment reporting. Variance relative to the prior comparative period (FY19 pcp) expressed favourable/(unfavourable).
Building an exchange for the future Progressing our customer-focused, technology-driven strategy Techno chnology-driv iven Cus usto tomer-fo focused New opportunities to create Pursuing adjacent products and services, and Expertise and capacity growth opportunities reduce risks and costs Product enhancements, Upgraded applications, programs Expanded, enhanced operational efficiencies, and and IT system functionality core customer value proposition easier ways to do business Contemporary, Confidence in the reliability and New IT infrastructure flexible and resilient integrity of transacting via ASX ASX operating platform 14 |
COVID-19 has accelerated the trend towards digitisation Challenges of remote working highlight the need for digital solutions Market t trends accelerated by C COVID-19 19 ASX strategy e AS even m more relevant DLT infrastructure – workflow collaboration Pursuing adjacent DataSphere – data collaboration Multi-party collaboration technology growth opportunities Sympli – workflow collaboration Straight-through-processing (STP) Corporate actions STP Expanded, enhanced core customer value proposition Rich and standardised datasets New DLT-enabled CHESS system Seamless WFH for ASX staff Mobility and communication tools Contemporary, Improved capacity, speed, flexible and resilient System resilience and security backup systems ASX operating platform and cyber security 15 |
Investing in our operating platform CHESS replacement finalises full contemporisation of equities technology stack COMPLET ETED o ED or COMPLE LETI TING B BY END ND F FY21 1 www.asx.com.au and investor portal October Dig igit ital al CUSTOME CU MER R • Corporate actions STP FY21 in interac actio ions EXPER EX ERIEN IENCE • Issuer portal FY21 Market oversight and surveillance systems Complete MAR ARKET O T OVERSIGH GHT T Co Contem temporary • ASX Trade refresh October TR TRAD ADING NG applic ap icat atio ions • CLEAR ARING an NG and CHESS replacement Under SET ETTLEM EMEN ENT consultation consult DataSphere Complete Integ tegrated ted DATA ATA an and e dat ata a Enterprise visual analytics Complete ANALYTI ANAL TICS mana nage gement nt • Enterprise-wide data warehouse FY22 ALC and new secondary data centre Complete DATA C ATA CENTR NTRES, Modern rn, ASX Net upgrade scala lable ble COMMUNI NICATI ATION N Complete infrastruc uctur ture NETW NE TWORKS Continued investment in cyber security Ongoing 16 |
CHESS replacement post COVID-19 consultation We are in the process of incorporating industry feedback into the post COVID replan COVID-19 adjusted • WFH, travel and collaboration challenges draft plan • More time for users and ASX to complete build considerations • Functionality changes resulting from user working groups • Increased Day 1 scope to enable digitisation and STP • Increased Day 1 ‘bursting’ capacity reflecting March volumes CHESS user consultation • Increased industry testing to de-risk cutover feedback • Consideration of some key users preferring more time • Consideration of other industry infrastructure upgrades eg. SWIFT • Incorporating consultation feedback Updated plan • Increased scope, capacity and testing will extend the project • Announcement of updated plan late October 2020 17 |
Expanding our customer value proposition through new products Developing products that create opportunities for customers S&P/ASX All Technology Index (XTX) New 5-year bond futures contract $140 40b+ 28 28 ASX SX 5-year ar bond bo d futur utures Market capitalisation* Listed tech ASX 20-year ‘unicorns’* bond futures SEC ECTORS R REP EPRES ESEN ENTED ED ASX 30-day ASX 10-year interbank bond cash rate futures futures ASX 3-year Consumer Interactive bond Information Electronics Media and futures Technology Services ASX 90-day interbank cash futures Internet Health Care and Direct Technology o/n 1 2 3 4 5 6 7 8 9 10 15 20 25 30 Over- Marketing night Years 18 | *As at 3 September 2020, S&P quarterly rebalance date
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