7. 7
Q1 2015 financial results
Summary financial results
($ million)
Q1 2015 Q1 2014 YoY%
Revenue 271.5 259.4 4.7%
Constant currency growth - - 8.2%
Adjusted EBITDA(1) 120.7 116.7 3.4%
Adjusted EBITDA margin (2) 44.8% 45.0% N/A
Adjusted Earnings (3) 68.5 72.9 (6.0)%
Adjusted EPS, diluted (4) $0.36 $0.41 (12.2)%
Weighted average number of shares
used to compute earnings per share,
diluted
191.7 178.7 7.3%
1. Adjusted EBITDA is defined as profit for the period from continuing operations before income taxes, net finance costs, depreciation and amortisation on fixed assets and
intangible assets (including acquisition related intangible assets), acquisition related items, exceptional items, share based compensation and related items, net other
gains or losses, including Adjusted EBITDA attributable to joint ventures and excluding Adjusted EBITDA attributable to non-controlling interests.
2. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue, excluding revenue attributable to non-controlling interests.
3. Adjusted Earnings is defined as profit for the period from continuing operations before amortisation of acquired intangibles, acquisition related items, exceptional items,
share based compensation and related items, net other gains or losses and unwind of discount, less the tax effect of these adjustments and excluding Adjusted Earnings
attributable to non-controlling interests.
4. Adjusted EPS diluted is defined as Adjusted Earnings divided by the weighted average number of shares used to compute earnings per share diluted.
9. 9
Q1 2015 financial results
Operating expenses
($ million)
Q1 2015 Q1 2014 YoY%
Personnel costs (91.9) (89.1) 3.1%
Non personnel
costs
(54.9) (53.6) 2.4%
Total operating
expenses
(146.8) (142.7) 2.9%
Q1 overview:
─ Personnel costs increased
due to acquisitions and new
hires
─ Non personnel costs
increased due to public
company running costs and
office expansion
10. 10
Q1 2015 financial results
Information
($ million)
117.7 120.6
55.2 58.2
0
20
40
60
80
100
120
140
Q1 2014 Q1 2015
Revenue Adjusted EBITDA
+2.5%
Q1 2015 Q1 2014 YoY%
Revenue 120.6 117.7 2.5%
Organic growth - - 6.3%
Adjusted EBITDA 58.2 55.2 5.4%
Adjusted
EBITDA margin
48.3% 46.9% -
Q1 overview:
─ Strong organic revenue growth
of 6.3%
─ New business wins drove
growth in Pricing and
Reference Data
─ Growth in Indices associated
with our derivative and bond
indices
12. 12
Q1 2015 financial results
Solutions
($ million)
69.5
83.5
22.3
27.8
0
10
20
30
40
50
60
70
80
90
Q1 2014 Q1 2015
Revenue Adjusted EBITDA
+20.1%
Q1 2015 Q1 2014 YoY%
Revenue 83.5 69.5 20.1%
Organic growth - - 14.4%
Acquisition related - - 7.8%
Adjusted EBITDA 27.8 22.3 24.7%
Adjusted EBITDA
margin
33.3% 32.1% -
Q1 overview:
─ Strong organic revenue growth of
14.4% driven by Managed
Services and Enterprise Software
─ New business and syndicated
loan AUMs drove revenue growth
─ Double digit growth in our three
largest products – WSO, On
Demand and EDM
13. 13
Q1 2015 financial results
Net debt / leverage
($ million)
March
31, 2015
December
31, 2014
Bank borrowings 121.7 224.5
Share buyback 190.7 211.1
Total borrowings 312.4 435.6
Cash and cash equivalents (84.4) (117.7)
Net debt 228.0 317.9
LTM Adjusted EBITDA(1) 492.2 488.2
Leverage (2) 0.46x 0.65x
Q1 overview:
─ Strong operating cash flow of
$60.9 million for the quarter
─ $79.9 million cash inflow
associated with option exercises
received in Q1 2015
─ Net debt down 28.3% or $89.9
million
1. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the previous twelve month period to date reported
2. Leverage is defined as net debt divided by LTM Adjusted EBITDA
16. 16
Q1 2015 financial results
Shares outstanding
Summary
─ Average share price is a key driver of the
dilution calculation, an indicative estimate of
the impact of share price fluctuations on
diluted share count is shown in the table
─ Weighted average number of shares, diluted
is calculated in accordance with IFRS
─ The majority of options priced at below
$26.70 vested on IPO
─ Options priced at $26.70 largely vest in
tranches over a 5 year period from IPO date
or January 2014
─ Option exercises will generate substantial
cash inflows as well as cash tax benefits
(million except share price)
2015
Q1
2014
Q1
Number of shares outstanding at the reporting date 188.0 177.9
Weighted average number of shares, basic 183.3 176.7
Option dilution 7.3 1.5
Restricted shares dilution 1.1 0.5
Weighted average number of shares, diluted 191.7 178.7
Share price used for Q115 dilution calculation $26.22
Illustrative average
share price
Illustrative diluted average
number of shares (million)
$23 188.7
$27 192.0
$30 198.0
Exercise price Outstanding (million) Unvested (million)
< $15.00 3.7 –
$15.00- $19.99 5.0 0.7
$20.00- $26.69 20.1 6.5
> $26.69 32.3 28.5
Total 61.1 35.7
Three months ended March 31st – Reported
Illustrative weighted average diluted number of shares three
months ended March 31st 2015
Total outstanding options at March 31st 2015
17. 17
Q1 2015 financial results
Revenue mix – Q1 2015
$ million / % Q1 2015 % Q1 2014 % Q1 YoY
Recurring fixed $145.3 53.5% $134.1 51.7% $11.2
Recurring variable $110.5 40.7% $112.3 43.3% $(1.8)
Non-recurring $15.7 5.8% $13.0 5.0% $2.7
Total Revenue $271.5 $259.4 $12.1
53.5%40.7%
5.8%
Recurring fixed
Recurring variable
Non-recurring
Q1 2015: $271.5 million
Q1 highlights:
─ Recurring fixed revenue
increased primarily due to
new business wins in
Information and Solutions
─ Recurring variable revenue
decrease driven by
Processing
─ Non-recurring revenue
increased due to new
business wins in Solutions,
and acquisition of CTI
18. 18
Q1 2015 financial results
Reconciliation to Adjusted EBITDA
($ million)
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q1 2014 Q1 2015
Profit for the period 151.2 156.2 153.1 147.0 164.1 39.8 54.5
Income tax expense 43.8 50.6 42.7 63.7 56.5 15.6 20.8
Finance costs – net 18.2 22.9 28.9 19.4 16.9 4.4 4.1
Depreciation and amortisation - other 48.2 62.7 66.7 86.0 100.1 23.3 24.9
Amortisation – acquisition related 28.5 34.4 46.2 50.1 57.9 14.2 14.4
Acquisition related items (11.3) 4.8 0.9 (1.4) (12.4) 2.8 -
Exceptional items 30.9 11.6 40.3 60.6 84.9 11.1 1.4
Share based compensation and related items 14.9 11.7 16.2 8.1 16.0 3.0 9.9
Other losses / (gains) – net 0.1 4.6 11.6 (0.7) 6.0 2.5 (7.9)
Share of results from joint venture not attributable
to Adjusted EBITDA
- - - - (1.1) - (0.7)
Adjusted EBITDA attributable to non-controlling
interests
(63.5) (54.5) (48.4) (11.5) (0.7) - (0.7)
Adjusted EBITDA 261.0 305.0 358.2 421.3 488.2 116.7 120.7
19. 19
Q1 2015 financial results
Reconciliation to Adjusted Earnings
($ million)
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q1 2014 Q1 2015
Profit for the period 151.2 156.2 153.1 147.0 164.1 39.8 54.5
Amortisation – acquisition related 28.5 34.4 46.2 50.1 57.9 14.2 14.4
Acquisition related items (11.3) 4.8 0.9 (1.4) (12.4) 2.8 -
Exceptional items 30.9 11.6 40.3 60.6 84.9 11.1 1.4
Share based compensation and related items 14.9 11.7 16.2 8.1 16.0 3.0 9.9
Other losses / (gains) – net 0.1 4.6 11.6 (0.7) 6.0 2.5 (7.9)
Unwind of discount
(1)
3.4 8.9 9.3 12.4 10.5 2.5 2.5
Tax effect of above adjustments (14.6) (7.6) (24.1) (18.0) (47.4) (3.0) (5.6)
Adjusted Earnings attributable to non-controlling
interests
(58.2) (39.8) (35.1) (9.7) (0.6) - (0.7)
Adjusted Earnings 144.9 184.8 218.4 248.4 279.0 72.9 68.5
Weighted average number of shares for
computation of earnings per share, diluted
175,550,760 184,467,540 178,719,390 191,653,520
1. Unwind of discount represents the non-cash unwinding of discount, recorded through finance costs – net in the income statement, primarily in relation to our share buyback liability.
20. 20
Q1 2015 financial results
Definitions
Revenue growth
We measure revenue growth in terms of organic revenue growth, acquisition related revenue growth, foreign currency impact on revenue growth and constant currency revenue growth. We
define these components as follows:
Organic – Revenue growth from continuing operations from factors other than acquisitions and foreign currency fluctuations. We derive organic revenue growth from the development of new
products and services, increased penetration of existing products and services to new and existing customers, price changes for our products and services and market driven factors such as
increased trading volumes or changes in customer assets under management.
Acquisition related – Revenue growth from acquired businesses through the end of the fiscal year following the fiscal year in which the acquisition was completed. This growth results from our
strategy of making targeted acquisitions that facilitate growth by complementing our existing products and services and addressing market opportunities.
Foreign currency – The impact on revenue growth resulting from the difference between current revenue at current exchange rates and current revenue at the corresponding prior period
exchange rates.
Constant currency – Total revenue growth, excluding the impact of exchange rate movements from the prior period to the current period. This is equal to the combination of organic and
acquisition related revenue growth, as described above.
Revenue by type
Revenue by type is how we classify the income recognised from the sale of our products and services into three groups as defined below:
Recurring fixed revenue – Revenue generated from contracts specifying a fixed fee for services delivered over the life of the contract. The fixed fee is typically paid annually, semiannually or
quarterly in advance. These contracts are typically subscription contracts where the revenue is recognised across the life of the contract. The initial term of these contracts can range from one to
five years and usually includes auto-renewal clauses.
Recurring variable revenue – Revenue derived from contracts that specify a fee for services which is typically not fixed. The variable fee is typically paid monthly in arrears. Recurring variable
revenue is based on, among other factors, the number of trades processed, assets under management or the number of positions we value. Many of these contracts do not have a maturity
date while the remainder have an initial term ranging from one to five years.
Non-recurring revenue – Revenue that relates to certain software license sales and the associated consulting revenue.
Other Non-IFRS Measures
Adjusted EBITDA is defined as profit for the period from continuing operations before income taxes, net finance costs, depreciation and amortisation on fixed assets and intangible assets
(including acquisition related intangible assets), acquisition related items, exceptional items, share based compensation and related items, net other gains or losses, including Adjusted EBITDA
attributable to joint ventures and excluding Adjusted EBITDA attributable to non-controlling interests.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue, excluding revenue attributable to non-controlling interests.
LTM Adjusted EBITDA is defined as Adjusted EBITDA for the previous twelve month period from date reported.
Adjusted Earnings is defined as profit for the period from continuing operations before amortisation of acquired intangibles, acquisition related items, exceptional items, share based
compensation and related items, net other gains or losses and unwind of discount, less the tax effect of these adjustments and excluding Adjusted Earnings attributable to non-controlling
interests.
Adjusted EPS diluted is defined as Adjusted Earnings divided by the weighted average number of shares used to compute earnings per share, diluted.
