Iress : IRE 2021 Results Investor Presentation

2021

Full year ended 31 December 2021

Full year results onlypresentation

usenal

	Iress full year results presentation	2

	Agenda
					Andrew Walsh	John Harris
								Managing Director & CEO		Chief Financial Officer
			Overview of Iress	3
onlyusenal	2021 results summary	4
			Performance review	18
			Outlook	24
			Appendix	32

Iress full year results presentation

Overview of Iress

Our vision: Simpler, faster with higher returns

Highlights

only2021 pro forma Segment Profit up 6%, pro forma NPAT up 14%: guidance delivered with strong 2H performance.

2022 Segment Profit is expected to grow 7-10%incl. Mortgages (6-9%excl. Mortgages). 2025 target of ~$120m with upside reaffirmed.

Executing growth strategies in UK, Superannuation, Investment Infrastructure: major contracts already won, scaling into large addressable markets.

Transition to Single Technology Platform to drive speed to market and perating leverage. $30m pre tax investment planned for 2022-2023. Team

seeded with experienced Iress people, work underway.

Mortgages sale progressing well. Scope for significant capital management: use$100m buyback to be completed in 2022, high dividend payout ratio and

potential Mortgages sale proceeds to be distributed.

Core business leverages common technology in trading, wealth and data to build scale in large markets with similar regulatory frameworks. Capital light, scalable business model with high levels of recurring revenue and cash conversion.

3

Key statistics

10,500+ clients

Annual Contract Value $610.8m³

LTV of total portfolio $28.4bn³

Annual Churn Rate 1.4%³

Consistent revenue growth with ~90% recurring²

5 Year CAGR 8% in constant currency¹

		264.7	271.9	305.7
	236.1
223.4
216.5	229.4	239.9	270.7	294.5
2017	2018	2019	2020	2021
2H Revenue		1H Revenue

nal(1)

(2)

(3)

Figures are presented on a constant currency basis, assuming results are converted at the average foreign exchange rates used for 2020. See slide 46 for FX rates. Recurring revenue is made up of revenue from subscription and licence fees.

Annual Contract Value (ACV) refers to the annualised value of recurring revenue (calculated by multiplying the exit month by 12) plus the addition of the last 12 months of Non-recurring revenues.

	Iress full year results presentation	4

2021 constant currency and pro forma financial performance

Delivered on pro forma Segment Profit and NPAT guidance			Segment profit
					guidance delivered
				157.1	166.4	164-168
Pro forma revenue (1)			Pro forma
Up 3%	583.7	600.2	Segment Profit & margin (1) (2)	26.9%	27.7%
only			Segment Profit up 6%
	2020	2021		2020	2021	2021
						Guidance
Pro forma NPAT (1)			Pro forma product & technology
Up 14%	51.7	58.9	% of revenue (1)		23%	23%
	Stable at 23%
use
2020	2021			2020	2021
Pro forma earnings			Pro forma ROIC (1) (4)
per share (1) (3)	27.6	30.9	Up 30 bps		8.2%	8.5%
Up 12%
	2020	2021			2020	2021

nal
	(1)	2020 pro forma results adds back the pre acquisition trading for OneVue and O&M and adjusts to exclude a $5.1m benefit in Non-Operating Expenses relating to provision revaluations for BCG and QuantHouse earn-outs. 2021 pro forma results excludes currency movements (assuming
	2021 results are converted at the average foreign exchange rates used for 2020) and excludes a benefit of $15.0m for significant one-off items relating to the finalisation of the QuantHouse and BCG earnout, non-operating costs related to NBIO (Non-binding Indicative Offer) from EQT, and the
	office closure at Warwick . Refer to slide 35 & 36 for reconciliations from Reported to Pro forma results.
	(2)	Pro forma Segment Profit margin has been calculated using Pro forma Segment Profit / Pro forma Revenue.
	(3)	Pro forma earnings per share has been calculated using Pro forma NPAT / Pro forma weighted average number of ordinary shares used in basic earnings per share. Pro forma weighted average number of ordinary shares for 2020 has been adjusted to include an additional 4.7m shares
	which assumes the shares issued to raise the capital to acquire OneVue were issued on the 1 January 2020.
	(4)	Pro forma ROIC has been calculated using the rolling 12 month Pro forma NPAT (excluding interest and finance costs) as a percentage of the addition of net debt and equity.

	Iress full year results presentation	5

2021 reported financial performance

Earnings growth and improved return on capital

					152.9	166.2
Reported revenue				Reported
Up 10%	542.6	595.9		Segment Profit & margin	28.2%	27.9%
onlyUp 25%	67-74(4)	% of revenue
59.2	73.8	24%	23%
				Segment Profit up 9%
	2020	2021			2020	2021
Reported NPAT			NPAT guidance	Reported product & technology
		delivered
2021 NPAT includes $15.0m benefit				23%
of significant one-off items (1)
use	2020	2021	2021		2020	2021
			Guidance
Reported earnings				Reported ROIC (3)
per share (2)	32.4	38.8		Up 130 bps	9.2%	10.5%
Up 20%
	2020	2021			2020	2021

nal
	(1)	Significant one-offs in the 2021 Reported NPAT results include the $14.2m benefit associated with finalisation of QuantHouse earnout arrangements and the $8.1m benefit relating to the finalisation of the BC Gateways (BCG) earnout. Partly offset by (-$5.5m) costs relating to the Warwick
	(UK) office closure and (-$4.0m) of non-operating costs incurred in relation to the NBIO (Non-binding Indicative Offer) from EQT. The tax effect for the one-off costs relating to Warwick and EQT is a benefit of $2.2m and finalisation of the BCG and Quanthouse earn out payments have no
	income tax effect.
	(2)	Reported earnings per share is calculated using Reported NPAT / Weighted average number of shares.
	(3)	ROIC has been calculated using Reported NPAT (excluding interest and finance costs) as a percentage of the addition of net debt and equity.
	(4)	NPAT Guidance of $70m - $77m as per the 30 June 2021 Half year results presentation, has been adjusted to include $3m (post tax) expense incurred in relation to the NBIO (Non-binding Indicative Offer) from EQT.