20 August 2020 Australian Securities and Investments Commission ASX Market Announcements Office Mr Nathan Bourne ASX Limited Senior Executive Leader, Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 ASX LIMITED – 2020 FULL-YEAR RESULTS PRESENTATION SLIDES Attached is a copy of the slides that will be presented at ASX’s full-year results briefing today. The briefing commences at 10.30am (Sydney time) and will be webcast live. Register to view the briefing here. The webcast will be archived on ASX’s website for viewing after the live event. Release of market announcement authorised by: Daniel Csillag Company Secretary Further enquiries: Media Analysts/Investor Relations Matthew Gibbs Josie Ashton General Manager, Media and Communications Head of Investor Relations T +61 2 9227 0218 T +61 2 9227 0646 M 0411 121 219 M 0416 205 234 matthew.gibbs@asx.com.au E E josie.ashton@asx.com.au 20 Bridge Street Sydney NSW 2000 PO Box H224 Customer service 13 12 79 ASX Limited ABN 98 008 624 691 Australia Square NSW 1215 asx.com.au
2020 ASX Limited Full-Year Results 20 August 2020
Agenda FY20 overview and COVID-19 update Dominic Stevens – CEO Financial performance Gillian Larkins – CFO Strategic update Dominic Stevens Outlook and summary Dominic Stevens Q&A – analysts followed by media Dominic Stevens and Gillian Larkins 2 |
Dominic Stevens – CEO FY20 overview and COVID-19 update
FY20 financial results Strong revenue growth offset by lower interest income with dividends per share up 4.5% Cha Chang nge % c change FY20 Y20 on on pc pcp on on pc pcp Operating revenue $938.4m $93 $7 $74.6 m 6 m 8.6 .6% • Driven by heightened trading and steady growth in all four businesses • Total expenses $28 286.2m .2m ($2 ($23.6m 6m) (9. (9.0%) Unexpected COVID-19 related costs took expense growth 1% over guidance EBIT $652.2m 2.2m $51.0 .0m 8.5 .5% • Highest annual growth since FY10 • Interest income $83.8m $8 ($20 20.1 .1m) (19. (1 9.3%) Due to impact of RBA’s three interest rate cuts during FY20 Underlying NPAT • $513.8m $5 m $21 21.8 .8m 4.4% 4. 4% Reflecting strong operational performance Statutory NPAT $49 498.6m • $6.6m $6. 6m 1.4% 4% Post $15.2m significant item Underlying EPS • 265.4 5.4cps 11. 11.3cp cps Eighth year of consecutive EPS growth 4.4% 4. 4% • FY20 total DPS 238.9c 238 9cps 10.2c .2cps 4.5 .5% Final dividend per share 122.5cps, +8.2cps, up 7.2% 4 | Variance relative to the prior comparative period (FY19 pcp) expressed favourable/(unfavourable).
Initial reaction of markets to COVID-19 Record volumes across our markets Trading volume increase on previous daily record (rolling monthly) – total Australian equity market CO COVID-19 19 4,000,000 3,500,000 3,000,000 Number of trades 2,500,000 2,000,000 1,500,000 1,000,000 500,000 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 NEW RECORDS SET DURING MARCH 2020 $169 bn of bonds 7 m trades 24.5 m futures 1,500 market settled in Austraclear registered in CHESS contracts traded surveillance alerts +29% vs previous pre COVID-19 +122% vs previous pre +11% vs previous monthly +38% vs previous daily daily settlement record set COVID-19 daily record record set in March 2019 record set 24 August 2019 set 6 August 2019 15 March 2019 5 |
Initial reaction of markets to COVID-19 Volatility led to largest intra-day trading ranges in the history of the S&P/ASX 200 S&P/ASX 200 intraday moves – 2000 to 2020 CO COVID-19 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 IN THE WAKE OF COVID-19 3.6 m asx.com.au 100% 8 /10 $31 bn uptime of ASX’s largest intra-day secondary capital raised unique visitors to website in March ‘20 trading ranges during June ’20 quarter markets in history of S&P/ASX 200 double FY19 monthly average second largest quarter in history after December quarter ‘09 6 |
FY20 activity drivers boosted by COVID-19 related activity Strong secondary raisings and equities trading; record Austraclear holdings balance Total Capital Raised ($billion) Cash Market Trading – ASX Value On-market ($billion) 27 27 26 26 37 37 887 887 24 24 58 582 15 15 530 0 541 41 536 6 70 70 55 55 56 56 49 49 41 41 63 639 9 587 7 539 9 530 0 510 0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Secondary capital listed IPO capital listed 1H 2H Futures - Contracts – (million) Austraclear Securities Holdings – Spot Balance ($billion) 83 3 93 93 82 2 73 73 73 73 2,35 ,358 2,05 054 1,94 949 9 1,896 96 1,860 0 86 6 78 78 74 4 69 69 63 63 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 1H 2H 7 |
Sustaining Australia’s financial markets through COVID-19 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 Access t ss to and d func nctioni ning ng of f Proac active in in ad addressing of our pe peopl ple our ur i infrastruct ructur ure and nd COVID i impli mplications ser ervices es • • • 95% of workforce transitioned to Markets remained fair, orderly and Capital raising flexibility to support working from home (WFH) over a transparent despite unprecedented listed companies weekend periods of volatility in March 2020 • Futures and equity markets • • Protection measures for on-site staff Record volumes in March 2020 maintained strong liquidity and price and an allowance for WFH costs managed across infrastructure and discovery services • • Pre-existing mobile capabilities and Continued delivery of projects and • tools enabling effective WFH and Clearing houses managed record additional time allocated for those collaboration initial and variation margin balances requiring coordinated customer effort supporting financial system resilience • • Wellbeing and mental health support Daily engagement with customers prioritised and increased and regulators 8 |
Building an exchange for the future Executing 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 9 |
COVID-19 has accelerated the trend towards digitisation of processes Challenges arising from WFH have increased 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 data sets 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 10 |
Gillian Larkins - CFO FY20 financial performance
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