Slide 1: ASX Limited 2021 Half-Year Results Presentation Slides announcement
11 February 2021 For personal use only 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 – 2021 HALF-YEAR
Slide 2: 2021 ASX Limited Half-Year Results
2021 ASX Limited Half-Year Results 11 February 2021 ASX
Slide 3: Agenda
Agenda 1H21 overview and strategic update Financial performance Outlook and summary Q&A - analysts followed by media 2| Dominic Stevens - CEO Gillian Larkins - CFO Dominic Stevens Dominic Stevens and Gillian Larkins @aAsx
Slide 4: Dominic Stevens - CEO
Dominic Stevens - CEO ASX
Slide 5: 1H21 highlights
1H21 highlights Sol 4| id operating result in mixed conditions while continuing to progress strategic initiatives Solid operating result highlights strength of ASX’s diversified business Advancing product and service initiatives Increasing long-term operational resilience across the organisation, de
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Slide 7: 1H21 activity drivers
1H21 activity drivers Continued volatility in the equity market; stability in the interest rate market Total capital raised (Sbillion) Cash market trading - ASX value on-market (Sbillion) FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 m@1H m@2H m1H m2H Futures - contracts (million) Aust
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For personal use only • • • 46 foundation members 69 current members •
Slide 9: Enhancing customer value proposition of Derivatives and OTC Markets
Enhancing customer value proposition of Derivatives and OTC Markets 5-year Treasury bond future launched alongside a range of service and product enhancements * Launch of 5-year Treasury bond future offers an additional liquidity point and hedging tool 5-year Treasury bond future — Pleasing initial
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Slide 11: Dominic Stevens - CEO
Dominic Stevens - CEO ASX
Slide 12: Increasing operating resilience and reliability
Increasing operating resilience and reliability Average outage run-rate has fallen significantly since 2018 Average number of outages on a rolling two-year basis * Post 2018, on a rolling two-year basis, there has been — five key trading, clearing and settlement systems oe . og a significant fall in
Slide 13: Increasing operating resilience and reliability
Increasing operating resilience and reliability 78% decline in incidents that have a customer impact since 2016 . 9 eo . Index of incidents that have a customer impact 78% decline in incidents over past four years reflects: ona rolling six-month basis (December 2016 = 100) — Execution of Building St
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For personal use only 12 10 • • 8 • • Average age (years) • 6 • • 4 • • • 2 • • 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 15: Re-planning of CHESS complete; go-live confirmed for April 2023
Re-planning of CHESS complete; go-live confirmed for April 2023 Meeting requests for increased volumes, functionality and testing Original plan (announced December 2017) 1 JAN 2018 1 JUL 2020 TESTING, | erin ACCREDITATION ONE and CUSTOMER 2021 READINESS Re-plan (announced October 2020) 1 JAN 2018 1
Slide 16: Investing in technology supports core and strategic initiatives
Investing in technology supports core and strategic initiatives Contemporary and flexible technology Supportive market forces me 5 Data explosion Digitisation of processes Focus on risk management \ & & Compulsory superannuation (() @ (uc) 15 | Adjacent growth opportunities Enhanced core customer va
Slide 17: Gillian Larkins - CFO
Gillian Larkins - CFO ASX
Slide 18: ASX financial results
ASX financial results Diversified business model delivers reliable returns to shareholders 1H21| — 2H20 1H20] 1H21v $m $m $m 1H20 Operating revenue 4705 4835 454.9 3.4% * Operating revenue up 3.4% S . Operating expenses 126.1 121.3 14.4 (10.3%) * Total expenses up 8.2% with Depreciation and amortisa
Slide 19: ASX operating revenue
ASX operating revenue’ Up 3.4% reflecting diversification across the business 1H21 operating revenue contribution by business Cash Market Settlement Cash Market 7% Clearing 1% 1H21| 2H20 4H20| 1H21v $m $m sm 1H20 Listings and Issuer Services 127.6 122.5 114.6 11.4% Equity Post-Trade Derivatives and
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Slide 21: Initial and secondary listing fees
Initial and secondary listing fees Initial listing fees amortised over 5 years and secondary listing fees amortised over 3 years Initial listing fee revenue contribution per period Secondary listing fee revenue contribution per period under AASB 15 (Smillion)' under AASB 15 (Smillion)' #303 }s05 s39
Slide 22: ASX operating revenue by business (continued)
ASX operating revenue by business (continued) 1H21v Trading Services 1H21) 2H20) 1H20 4H20 Revenue ($million) 130.2 131.4 124.9 4.2% Cash market trading 31.6 36.3 27.9 12.8% Information services 56.3 53.3 53.5 5.2% Technical services 42.3 41.8 43.5 (2.7%) Key drivers Total ASX on-market value (Sbill
Slide 23: ASX 1H21 total expenses
ASX 1H21 total expenses Heightened market activity, continued investment in initiatives 1H21| — 2H20 1H20| 1H21Vv $m $m $m 1H20 Staff 75.9 72.9 72.5 4.8%) Occupancy 48 5.0 47 (1.7%) Equipment 21.0 19.3 16.1 (30.8%) Administration 13.0 13.3 12.7 (2.1%) Variable 6.8 6.1 46 (46.8%) ASIC supervision lev
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Slide 25: ASX net interest income
ASX net interest income Lower investment earnings slightly offset by elevated collateral balances 1H21] 2H20 1H20| 1H21v al al al 1H20 Group net interest income (97.1%) Lease financing cost t. ‘ “7 (1. 17 Average collateral balance (Sbillion) Group net interest income (1.5) 1.5 6.1 (123.9%) Net inte
Slide 26: ASX balance sheet
ASX balance sheet Strong with high levels of participant margins 31 Dec 20 30 Jun 20 sm sm Cash and other financial assets 3,753.7 13,857.0 Intangibles (excluding software) 2,325.7 2,325.9 Software 209.0 170.9 Investments 86.4 85.6 Other assets 979.0 975.4 Total assets 17,353.8 17,414.8 Amounts owin
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Slide 28: ASX delivering to shareholders
ASX delivering to shareholders 90% dividend payout policy 1H21v Underlying earnings per share (cents) 124.9 136.1 129.3 (3.4%) Statutory earnings per share (cents) 124.9 1283 129.3 (3.4%) Dividends per share (cents) 12.4 1225 116.4 (3.4%) % of underlying profit paid out 90% 90% 90% + Earnings per sh
Slide 29: Dominic Stevens - CEO
Dominic Stevens - CEO ASX
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For personal use only
Slide 33: Thank you.
Thank you. Ajuo asn jeuosied 10S ® ASX
Slide 34: Appendices
Appendices 1. Income statement 2. Balance sheet 3. Key financial ratios 4. Transaction and activity levels 5. Free cash flow summary @asx
Slide 35: 1. Income statement
1. Income statement Annual listing Initial listing Subsequent raisings Other listing Listings Issuer services Listings and Issuer Services Equity options Futures and OTC clearing Austraclear Derivatives and OTC Markets Cashmarket trading Information services Technical services Trading Services Cashm
Slide 36: 1. Income statement
1. Income statement 1H19 2H19 1H20 2H20 1H21 S$million Smillion S$million S$million Smillion Staff 63.2 64.5 72.5 72.9 75.9 Occupancy 8.6 93 47 5.0 48 Equipment 15.3 15.4 16.1 19.3 21.0 Administration 10.5 12.0 12.7 13.3 13.0 Variable 44 4.0 46 61 6.8 ASIC supervision levy 3.2 44 38 47 46 Operating
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For personal use only ¹ Balance due to material movement on variation and initial margin requirements on Futures 36 |
Slide 38: 3. Key financial ratios
3. Key financial ratios 1H19 2H19 1H20 2H20 1H21 Basic earnings per share (EPS) * 127.4c 127.0¢ 129.3¢ 128.3¢ 124.9¢ Diluted EPS* 127.1¢ 127.0¢ 129.3¢ 128.3¢ 124.9¢ Underlying EPS® 127.1C 127.0¢ 129.3 136.1¢ 124.9¢ Dividend per share - interim 114.4 : 116.4¢ : 112.4 Dividend per share - final - 114.
Slide 39: Listings and Issuer Services
411 Listings and Issuer Services 1H19 2H19 1H20 2H20 1H21 Total domestic market capitalisation ($bn) - period end $1,790 $2,069 $2.18 $1,918 $2,237 Total number of listed entities (includes all stapled entities) - period end 2,284 2,269 2,240 2,188 2,200 Number of new listings 72 39 55 28 85 Average
Slide 40: 4.2 Derivatives and OTC Markets: Equity Options
4.2 Derivatives and OTC Markets: Equity Options 1H19 2H19 1H20 2H20 1H21 Trading days 129 123 130 125 130 Single stock options ('000) 36,636 37,189 33,928 31,966 29,124 Index options and futures (000) 6,196 5,086 4,659 5,183 2,826 Average daily single stock options contracts 283,996 302,354 260,982
Slide 41: 4.2 Derivatives and OTC Markets: Futures and OTC
4.2 Derivatives and OTC Markets: Futures and OTC 1H19 2H19 1H20 2H20 1H21 Trading days 129 126 130 127 130 Total contracts traded - futures ('000) ASX SPI 200 7,974 8,020 8,491 10,755 7,770 90 day bank bills 15,083 19,615 13,884 11,083 5,437 3 year bonds 27,284 33,204 30,359 27,732 24,12 5 year bond
Slide 42: 4.2 Derivatives and OTC Markets: Futures and OTC (continued)
4.2 Derivatives and OTC Markets: Futures and OTC (continued) 1H19 1H20 2H20 1H21 Total contracts traded - options on futures ('000) ASX SPI 200 66 32 17 48 21 3 year bonds 91 136 153 24 3 Overnight 3 year bonds 131 148 181 88 Intra-day 3 year bonds 204 406 303 205 12 10 year bonds* 2 2 1 24 42 Elect
Slide 43: 4.2 Derivatives and OTC Markets: Austraclear
4.2 Derivatives and OTC Markets: Austraclear 1H19 2H19 1H20 2H20 1H21 ‘Settlement days 129 124 130 125 130 Transactions (‘000) Cash transfers 311 299 320 325 290 Fixed interest securities 397 415 457 518 545 Discount securities 75 72 66 65 53 Foreign exchange 5 4 4 2 3 Total transactions 788 790 847
Slide 44: 4.3 Trading Services - Cash Market Trading
4.3 Trading Services - Cash Market Trading 1H19 2H19 1H20 2H20 1H21 Trading days 129 123 130 125 130 Total cash market trades ('000) 171,273 188,712 214,880 245,909 194,109 Average daily cash market trades 1,327,701 1,534,241 1,652,922 1,967,271 1,493,145 Continuous trading value ($bn) $368,321 $353
Slide 45: 4.3 Trading Services - Technical Services
4.3 Trading Services - Technical Services 1H19 1H20 2H20 1H21 Tec I services (number at period end) ASX Distribution Platform Australian Liquidity Centre cabinets 310 324 324 326 345 Connection Services ASX Net connections 108 104 101 103 104 ASX Net service feeds 454 447 447 455 449 Australian Liqu
Slide 46: 4.4 CCP participant collateral balances
4.4 CCP participant collateral balances 2H19 1H20 $million n Balances at period end ASX Clear - initial margins 654.8 843.6 600.8 1,286.4 725.5 ASX Clear (Futures) - initial margins House’ 1,743.3 2,369.7 2,166.7 2,763.2 2,380.2 ASX Clear (Futures) - initial margins Client’ 3,760.8 5,548.9 6,355.7 6
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For personal use only 1,179.8 1,179.0 1,188.0 1,179.8 85.4 79.1 46 |
Slide 48: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (11 February 2021). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for invest