Asx Limited · ASX:ASX
Asx — Investor Day (June 2024)
56 slides from Asx's investor day presentation, Jun 13, 2024
Slide 1: Investor Forum Presentation Slides
13 June 2024 Australian Securities and Investments Commission ASX Market Announcements Office Mr Benjamin Cohn-Urbach ASX Limited Senior Executive Leader, Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 INVESTOR FORUM PRESENTATION SLIDES For personal
Slide 2: ASX Limited
ASX Limited 13 June 2024 @BASX
Slide 3: Disclaimer
Disclaimer is presentation has been prepared by ASX Limited (ABN 98 008 624 691) (“ASX”). enmary information is presentation contains general information about ASX and its related bodies corporate (“ASX Group”) and their activities current as at 13 ne 2024, unless otherwise stated. It is provided in
Slide 4: Acknowledging Country
Acknowledging Country - ASX acknowledges the Tradi Owners of Country throughot Australia. We pay our respect Elders past and present. Artwork by Lee Ann Hall, My country My People
Slide 5: Session agenda
Session one: Group view two: business line de cD, 10.00am Update on ASX five year strategy Listings : Helen Lofthouse, Chief Executive Officer Blair Beaton, Group Executive, Listings 10.30am Technology roadmap Markets : Tim Whiteley, Chief Information Officer Darren Yip, Group Executive, Markets 10.
Slide 6: ASX Executive Leadership Team
ASX Executive Leadership Team Presenting today Oo ® op) > © Cc Oo Y pas ® ok Oo LL Helen Lofthouse Managing Director and CEO Group Executive, Technology & Data (until June 2024) Dan Chesterman wl Tim Whiteley Chief Information Officer Chief People Officer Jane Franks Andrew Tobin Chief Financial Off
Slide 7: Strategy
Strategy Helen Lofthouse,
Slide 8: ASX portfolio
ASX portfolio High quality businesses & Portfolio of high quality businesses, diverse revenue streams =) ) Strong position in Strength of multiple markets business model 4 Demonstrated by delivery of record revenue for a first half in 1H24 despite challenging markets. personal use onl For @ @asx
Slide 9: ASX value chain: creating value across the market lifecycle
ASX value chain: creating value across the market lifecycle Strength of business model Raising apital Trading | Clearing For personal use on! @asx
Slide 10: Supported by structural tailwinds
Supported by structural tailwinds Long term growth drivers c Oo i ) ==) (= Yn — =| E= Wa =) — © Growing Australian Increasing demand for S capital base technology and data a : — oO Importance of public markets: Role of an exchange is to support the economy and solve customer challenges. To deliver p
Slide 11: Strategic horizons
Strategic horizons Making good progress through Horizon 1 but still plenty to do HORIZON 1 - RESET HORIZON 2 - EMBED AND GROW Restore confidence, focus on fundamentals Increase speed, quality and value, drive future growth Still in Horizon 1 with ongoing focus on regulatory commitments, technology m
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Slide 15: Current operating environment
Current operating environment Addressing current market dynamics i) J, Lower equity market activity and good recovery in rate futures volumes J, Legislative reform: * Competition in Clearing and Settlement * Financial Market Infrastructure Reform For personal use onl @BASx
Slide 16: Technology roadmap
For personal use only
Slide 17: Major projects
Major projects Driving our delivery roadmap Cc je) Cash Market Trading ro) y, i) © Derivatives Markets Trading =) 7, oC Trading Networks Cc y, 8 OTC Clearing La 4 Futures Clearing ok J — iv =) Cash Market Clearing Settlement and Sub Register } @asx
Slide 18: Technology modernisation
Technology modernisation Platforms and delivery capability Cc O cD Delivery capability ce, Driving productivity, standardising processes = and increasing automation e Digital Strategic portfolio plan 3 | / = Data Project delivery governance g / / Cloud Improved processes and tools fe) A 7, LL @BASx
Slide 19: Delivery roadmap
Delivery roadmap! Integrated plan to manage ASX and market capacity for change and future Cc fo) Gg @ ‘3 i: os 2) —— Bi - o oe — fo) LL Derivatives > Clearing 1 1 'This roadmap is indicative only and is subject to change having regard to a number of factors including but not limited to the outcome o
Slide 20: Technology modernisation
Technology modernisation Role in the ASX value chain To support customer driven growth For |personaladise onl @BASx
Slide 21: Finance update
>) _ Finance update Andrew Tobin, Chief Financial Officer Y For per
Slide 22: FY24 and FY25 total expense growth guidance
FY24 and FY25 total expense growth guidance - ®, +6%-9% y -- - FY24 total expense profile: =o | ~+15% oy = ae " + FY24 expense growth forecast of ~15%! - Expecting reduction in 2H24 total expenses compared to 1H24 FY25 total pense profile * FY25 expense growth guidance of 6% to 9%' supporting costs
Slide 23: FY24 and FY25 capital expenditure guidance
FY24 and FY25 capital expenditure guidance Primarily driven by technology modernisation program Capital expenditure ($ Eor personal us $160m-$180m co 1 ' | Fv21 Fy22 FY23 FY24F FY25F Capex guidance range af $160 to $180 million excludes $10 to $12 milion capex for new office fit out in each of FY25
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For personal use only 250 200 • 111.2 120.0 112.1 150 100 • 50 112.4 116.4 116.2 101.2 0 • • •
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Slide 26: Listings
aising Listings ® Blair Beaton, — ee
Slide 27: Why list on ASX
Why list on ASX Earlier index inclusion drives liquidity = Outsized access to Valuation metrics C4 growth capital via SACoG EWES compare favourably ey Half the cost Price transparency of the US@ and discovery ($) World's 5th largest S=/ ] pension system! g —+
Slide 28: Listed market remains the dominant arena for raising equity
Listed market remains the dominant arena for raising equity ASX accounts for 97.5% of domestic equity investment PE/VC vs ASX - comparative size! PE/VC vs Global listed market - comparative size? $98.2t $2,504b 92.5% For personal use 97.5% ™ Aggregate ASX domestic equity market capitalisation = S&P
Slide 29: IPO activity - ASX and peer exchanges
IPO activity - ASX and peer exchanges Number of IPO >" personal use onl 28 | Souce Dee crsineuteshsdo NYSE LSE JP Yond Ors
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For personal use only 46% 40% 11% 75% 41% 34% 48%
Slide 31: Follow-on offerings show the strength of the ASX market
Follow-on offerings show the strength of the ASX market Performing ( N@asx Aidit Be change yl Nasdaq (O sexe un = l Ky ke ion (oe) nul BFF Lee orange YW) rsh @asx © Hkex HKEX euzen euzen i tok — @Bnasdaq SGX= LL Obps. 20bps 40bps 60bps 80bps 100bps AU $0b AU S20b AU $40b AU $60b AU $80b AU $100b inh
Slide 32: Top new listings in 2023-24 by market capitalisation
Top new listings in 2023-24 by market capitalisation Newmont Gold $68.6 Dual me — fa Specialty Chemicals $10.9 Dual Ee ithtam LIGHT& Ez WONDERS Casinos & Gaming $8.5 Dual COPPER Copper $5.2 Dual ANI its?” Self-Storage REITs S19 De-merger Freightways Air Freight & Logistics $1.4 Dual Trading Companie
Slide 33: Growth strategy
Growth strategy Focus on Australia and Targeted offshore Pipeline of attractive companies business development New Zealand market For personal use onl 32 | @BASx
Slide 34: Markets
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Slide 35: Cash market trading: drivers and recent trends
Cash market trading rivers and recent trends ASX Cash Equities Total Traded Valu COVID: Jan 2020 - Nov 2022 8000 (qn) 7000 * Global equities indices trading at or near record levels Cw y 6500 + Resilient company earnings (@) A + Changes in interest rate expectations (72) 60 aA wv) 6000 = * Solid gro
Slide 36: Cash market trading
Cash market trading Central bank interest rate decisions Increase in IPO activity Potential catalysts that impact activity M&A activity Geopolitical events For personal use onl @asx
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Slide 38: Rates futures
Rates futures Volumes below pre-COVID levels SA interest rate volume arterly since July COVID: Mar 2020 - Nov 2022 50 45 : P Fi 40 | RBA Yield Target Potential drivers of an increase _ 8 in activity: a | a | 30 i ia 2 New ASX rates futures initiatives 22 (ap) Continuation of increased federal = 20 i
Slide 39: Growth opportunities
Growth opportunities © Enabled by technology + Making it easier to do business with us Stakeholder engagement Continuing to evolve products and focus on market quality © Cc O ® 7) a) © Cc e) 7) — ® ok — eo) LL @asx
Slide 40: Growth opportunities
Growth opportunities For personal use onl Developing a transition to net zero product ecosystem * Core electricity futures * Gas futures * Environmental futures (including carbon) * Exploring opportunity with Clean Energy Regulator to run Carbon Exchange Dy, The transition to net zero creates volati
Slide 41: Securities & Payments
ading E ~— securities & Payments Clive Triance, Group Executive Clearing Settlement, payment t F and register
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Slide 43: Cash Market Clearing and Settlement
Cash Market Clearing and Settlement Our proposition and revenue drivers ® © ®@ Numbers (HIN) & Gg a Oo Trading volume and Shareholders Value of the i capital markets with Holder equities cleared a activity Identification Gg Le @BASx
Slide 44: Issuer Services
Issuer Services 1d efficient title tration track E >3 million active HIN holders and (>) Number of holders with active yy) 20 million unique security holdings J holdings on HIN ~5,000 corporate action events Volume of changes in holding balances ES Markets activity, capital issuance and yy) corporat
Slide 45: Fixed income and payments
Fixed income and payments How Austraclear supports Australia's debt capital markets Austraclear by the numbers Depository holdings : Holdings Balance Ys3ttrillion | 1,115 a e onl o Total depository holdings i Austraclear participants 307 Cc : 257 ~H 1,400 : 2million zor eae ; © Issues per month : Tr
Slide 46: CHESS Replacement
CHESS Replacement Implementation progress Following solution announcement in November 2023, ASX and TCS progressing next implementation milestone and delivery of technology enhancements. For personal use onl 4 a Consultation: Release 1 Consultation: Release 2 Consultation paper released in March 202
Slide 47: Growth opportunities
Growth opportunities e-statements Carbon Exchange Cc oO ® 2) - = = TT) ) © fs Continue to drive Progressing the Sympli Fixed income 7) uptake of Australian data — ®o — Oo LL @asx 7s a
Slide 48: Technology & Data
Technology & Data ~f Diccon Close, General Manager ——— 7) es <a
Slide 49: Role of Technology & Data business
Role of Technology & Data business Efficient, secure connecti and in: ts for our customers Access and Data and insights: connectivity: ASX to add value to to the financial our customers ecosystem : ty ty Connectivity for, and between, ASX customers. For personal use onl @BASx
Slide 50: Drivers of growth in Technology & Data business
Drivers of growth in Technology & Data business Part of the ASX value chain Raising capital Tools and Clearing insights For personal use onl @BASx
Slide 51: Drivers of growth in Technology & Data business
Drivers of growth in Technology & Data business Structural tailwinds and trends Cc ie) <b) YW) =) A md oC Growing Australian = capital base O (Tp) Increasing demand — for technology and data oO dd ok — Transition to net Oo LL zero emissions J @BASx
Slide 52: Growth opportunities
Growth opportunities ASX is a data-rich environment Fixed income Data analytics to New datasets Augmented data support market from product listed company activity evolution disclosure data Fgpwpersonal use onl Listening to our customers Technology modernisation program @BASx
Slide 53: Closing comments and summary
—_™“~ and summary QASX
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Slide 55: Summary
Summary akin yd pre jen r of five year strategy Total expense growth guidance of 6% to 9%! c One year into Making good progress, still plenty to do in our Vv) five year strategy key focus areas =) © @ Capital expenditure guidance of $160 to $180 million? ) Supported by value chain and structural tai
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