Slide 1: ASX Limited 2021 Full-Year Results Presentation Slides
19 August 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 FULL-YEAR R
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2021 ASX Limited 19 August 2021
Slide 3: Agenda
Agenda a —— —FY21 overview and strategic update Dominic Stevens - CEO “Financial performance Gillian Larkins - CFO USE “Outlook and summary Dominic Stevens on “Q&A - analysts followed by media Dominic Stevens and Gillian Larkins r For pe 2] @asx
Slide 4: FY21 overview and strategic update
use only —Dominic Stevens - CEO o}iarel PFY21 overview 0) ; ©and strategic update For a ASX
Slide 5: Overview
Overview Building an exchange for the future on sustainable foundations and contemporary technology * FY21 financial result demonstrates the strength of ASX’s diversification — 9th consecutive year of operating revenue growth — Impacted, as expected, by the RBA's current policy settings — Revenues u
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Slide 7: Revenue unaffected by RBA policy settings maintained momentum
Revenue unaffected by RBA policy settings maintained momentum Actions impacted trading in short-end rates futures and interest income Index of short-dated futures trading revenue, interest income and all other Group revenue (FY14 = rebased to 100) YCC' begins, affecting 25% of FY20 and 100% of FY21
Slide 8: Supportive conditions for equity-related businesses
Supportive conditions for equity-related businesses Total capital raised (Sbillion) Cash market trading - ASX value on-market ($billion) FYI? FY18 FY19 FY20 FY21 FYI? FY18 FY19 FY20 FY21 mH m2H mH = 2H Futures - contracts (millions) Austraclear securities holdings — spot balance (Sbillion) 1,860 FY1
Slide 9: Diversified business delivering reliable earnings and dividends
Diversified business delivering reliable earnings and dividends Operating revenue’ ($million) Underlying net profit after tax ($million) FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Earnings before interest and tax ($million) Dividends (cps) 129.1 Special dividend FY17 FY18 FY19 FY20 FY21 FY17
Slide 10: Executing our customer-focused, technology-driven strategy
Executing our customer-focused, technology-driven strategy Making business easier for customers today, developing the infrastructure for tomorrow Ill. Leverage expertise and capabilities Adjacent procccoocoooocnecomersceenoone » Provide the financial services infrastructure growth opportunities of t
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Slide 12: Investing in the transformation of the equity technology stack
Investing in the transformation of the equity technology stack A Significant reduction in technology debt since 2016 11 | Years 35 30 25 20 15 10 2016 2017 Equity data warehouse = Website mReference data @ Australian Liquidity Centre Age of key equity technologies 2018 2019 2020 2021 2022E 2023E m E
Slide 13: Improved resilience delivered by technology transformation
Improved resilience delivered by technology transformation A Significant reduction in incidents and outages Index of incidents that have a customer impact Number of outages on a rolling two-year basis on a rolling six-month basis (December 2016 = 100%) ~ five key trading, clearing and settlement sys
Slide 14: Enhanced resilience delivered by continuous improvement culture
Enhanced resilience delivered by continuous improvement culture @ Action already taken to strengthen processes and practices post November 2020 + Review process undertaken for incidents with a customer impact — Take every opportunity to continually improve + November 2020 outage review process — Eng
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For personal use only • 91 • 73 40 68 55 35 28 34 17 120 • 10 82 68 52 33 FY17 FY18 FY19 FY20 FY21 • Domestic based technology listings Foreign based technology listings Other foreign based listings
Slide 16: Optimise products, services and processes - Derivatives
Optimise products, services and processes - Derivatives A Expanding our value proposition for customers 5-year treasury bond future — launched November 2020 New Australian electricity cap futures for 5 minute settlement + Amore efficient and effective hedge for mid-curve treasury bonds + Reference p
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Slide 18: Optimise products, services and processes — Equity Post-Trade
Optimise products, services and processes — Equity Post-Trade 7 N Contemporary technology enabling digitisation and simplification of processes CHESS replacement - delivering Australia a world-leading DLT-enabled clearing and settlement system * Ontrack for go-live April 2023 8 p DRP/BSPs - New func
Slide 19: Providing the financial services infrastructure of the future
Providing the financial services infrastructure of the future A Leveraging ASX’s technology capabilities and expertise DLT Solutions — ‘distributed ledger technology as a service’ | Sympli - making property e-settlement simple * Developer sandbox available + Interoperability is happening — Enabling
Slide 20: Financial performance
use only —Gillian Larkins - CFO Financial performance ersona FOr p a ASX
Slide 21: FY21 ASX financial results
FY21 ASX financial results Diversified business model delivers reliable returns to shareholders FY21] 2H21] 1H21|_-FY20| FY21v $m $m $m $m| _FY20 Operating revenue 9515 4810 470.5 938.4 14% . * Operating revenue up 1.4% Operating expenses 256.8 130.7 126.1 235.7 ~— (8.9%) 9 + Total expenses up 8.4%
Slide 22: FY21 ASX operating revenue
FY21 ASX operating revenue Growth in listings and equity activities balancing downturn in futures Fy21] 2H21] 1H21]_-FY20] FY21v $m $m sm Sm} FY2 Listings and Issuer Services 258.2 1306 1276 2371 8.9% Derivatives and OTC Markets 2846 140.0 144.6 317.6 (10.4%) Trading Services 265.0 1348 130.2 256.3
Slide 23: Listings and Issuer Services
Listings and Issuer Services Ne Strong increase in market cap of new listings Brea ater] te FY20 a Initial listing fee revenue contribution per period under AASB 15 (Smillion)' H Revenue (Smillion) 258.2 130.6 127.6 237.1 8.9% Listings 182.5 93.8 88.7 1759 3.8% 19.2 84, Issuer services 75.7 36.8 38.
Slide 24: Derivatives and OTC Markets
Derivatives and OTC Markets Revenue decline due to current low rate climate FY21v Revenue ($million) 2846 140.0 144.6 317.6 (10.4%) Futures and OTC 214.4 107.5 106.9 242.9 (11.8%) Equity options 11.6 44 7.2 18.5 (37.3%) Austraclear 58.6 28.1 30.5 56.2 44% Key drivers Futures volume (million) 143.8 7
Slide 25: Trading Services
Solid retail market activity and continued market data distribution growth Trading Services San wD “Fr20 2,000 - ASX on-market traded value (Sbillion) Revenue (Smillion) 265.0 134.8 130.2 256.3 3.4% Cash market trading 61.0 29.4 31.6 64.2 (5.0%) 4500 | Information services 118.0 61.7 56.3 106.8 10.5
Slide 26: Equity Post-Trade Services
Equity Post-Trade Services ‘a | Reflects trading and settlement activity ~ J Fve1 Hei] FY20 On-market value cleared (Sbillion) Revenue (Smillion) 143.7 75.6 68.1 127.4 12.8% Cash market clearing 71.0 36.8 34.2 65.3 8.6% Cash market settlement 727 38.8 33.9 621 17.2% Key drivers On-market value clear
Slide 27: FY21 ASX total expenses
FY21 ASX total expenses Total expense growth within market guidance 2H21| 1H21]_-FY20} FY21v $m $m $m] FY20 Staff 154.3 78.4 75.9 145.4 6.1%) + Staff expense uplift reflects growth in Occupancy 94 46 48 97 2.7% average FTE as a result of timing of FY20 hires and new roles to support Equipment 42.5 2
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Slide 29: FY21 ASX net interest income
FY21 ASX net interest income Lower investment earnings slightly offset by elevated collateral balances Fy21] 2H21} ~—1H21 FY21v $m aul a Non FY20 Group net interest income (0.6) 11.0 (106.0%) Lease financing cost (3.3) a fe (3.4) 3.9% Average collateral balance ($billion) Group net interest income (
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Slide 32: ASX delivering to shareholders
ASX delivering to shareholders 90% dividend payout policy Underlying earnings per share (cents) 248.4 123.5 124.9 265.4 (6.4%) Statutory earnings per share (cents) 248.4 123.5 124.9 257.6 (3.6%) Dividends per share (cents) 223.6 111.2 112.4 238.9 (6.4%) % of underlying profit paid out 90% 90% 90% 90
Slide 33: Outlook and summary
use only —Dominic Stevens - CEO ona “Outlook and summary For pe a ASX
Slide 34: Progressing through an organisational restructure
Progressing through an organisational restructure For personal use only Listings Cash market clearing Futures and OTC clearing Information services Cash market settlement Equity options Technical services Issuer services Issuer services Cash market trading Cash market trading Austraclear Austraclear
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Slide 36: Summary
Summary Delivering enhanced customer value today; building financial service infrastructure for tomorrow * Integrated financial markets infrastructure provider with a track record of resilient earnings and dividends * Building on sustainable foundations and investing in contemporary technology ¢ Dig
Slide 37: Thank you
Thank you. Ajuo asn jeuosied 10S ® ASX
Slide 38: Appendices
Appendices 1. Income statement 2. Balance sheet 3. Key financial ratios 4. Transaction and activity levels 5. ASX Group own cash movement 6. Accounting policy change @asx
Slide 39: 1. Income statement
1. Income statement Annual listing 79.3 92.4 89.9 Initial listing 16.0 18.4 18.6 Subsequent raisings 46.5 56.1 644 Other listing 9.6 9.0 99 Listings 151.4 175.9 182.5 Issuer services 42.3 61.2 75.7 Listings and Issuer Services 193.7 237.1 258.2 Equity options 217 18.5 11.6 Futures and OTC clearing 1
Slide 40: 1. Income statement
1. Income statement FY17 FY18 FY19 FY20 Smillion $million S$million Smillion Staff 110.6 114.6 127.7 145.4 Occupancy 14.6 16.4 17.9 97 Equipment 27.9 27.9 30.7 35.4 Administration 18.2 22.4 22.5 26.0 Variable 67 7.9 84 10.7 AsIClevy 2.9 6.3 7.6 8.5 Operating expenses 180.9 195.5 214.8 235.7 EBITDA 5
Slide 41: 2. Balance sheet
2. Balance sheet Assets Cash and other financial assets 9,085.6 9,570.1 12,270.3 13,857.0 13,381.9 Intangibles (excluding software) 2,326.6 2,326.3 2,326.1 2,325.9 2,325.6 Software 112.6 111.7 132.2 170.9 240.9 Investments 497.8 469.5 76.3 85.6 87.6 Other assets" 1,189.1 445.4 525.4 975.4 561.0 Tota
Slide 42: 3. Key financial ratios
3. Key financial ratios FY17 FY18 FY19 Fy2i FY21 Basic earnings per share (EPS) " 224.5¢ 230.0¢ 254.1¢ 257.6¢ 248.4¢ Diluted EPS* 224.5¢ 230.0¢ 254.1¢ 257.6C 248.4¢ Underlying EPS? 224.5¢ 240.4¢ 254.1¢ 265.4¢ 248.4¢ Dividend per share - interim 102.0¢ 107.2¢ 114.4¢ 116.4c 112.4¢ Dividend per share -
Slide 43: Listings and Issuer Services
411 Listings and Issuer Services FY17 FY18 FY19 FY. FY21 Total domestic market capitalisation (Sbn) - period end $1,777 $1,957 $2,069 $1,918 $2,498 Total number of listed entities (includes all stapled entities) - period end 2,239 2,285 2,269 2,188 2,228 Number of new listings 152 137 m1 83 176 Aver
Slide 44: 4.2 Derivatives and OTC Markets: Equity Options
4.2 Derivatives and OTC Markets: Equity Options FY17 FY18 FY19 FY20 FY21 Trading days 253 252 252 255 254 Single stock options ('000) 93,295 80,091 73,825 65,894 56,887 Index options and futures (‘000) 10,388 12,461 11,282 9,842 5,328 Average daily single stock options contracts 368,755 317,822 292,
Slide 45: 4.2 Derivatives and OTC Markets: Futures and OTC
4.2 Derivatives and OTC Markets: Futures and OTC FY17 FY18 FY19 FY20 FY21 Trading days 256 255 255 257 256 Total contracts traded - futures (‘000) ASX SPI 200 12,255 13,782 15,994 19,246 14,425 90 day bank bills 28,931 33,226 34,698 24,967 12,833 3 year bonds 53,233 56,041 60,488 58,091 45,598 5 yea
Slide 46: 4.2 Derivatives and OTC Markets: Futures and OTC (continued)
4.2 Derivatives and OTC Markets: Futures and OTC (continued) FY17 FY18 FY1 FY. Total contracts traded - options on futures ('000) ASX SPI 200 202 140 98 65 28 3 year bonds 152 85 227 177 3 Overnight 3 year bonds 478 314 279 269 i} Intra-day 3 year bonds 460 344 610 508 27 10 year bonds* 19 36 4 25 6
Slide 47: 4.2 Derivatives and OTC Markets: Austraclear
4.2 Derivatives and OTC Markets: Austraclear FY17 FY18 FY19 FY20 FY21 Settlement days 253 252 253 255 254 Transactions (‘000) Cash transfers 582 605 610 645 565 Fixed interest securities 741 770 812 975 1,100 Discount securities 146 146 147 131 103 Foreign exchange 9 9 9 6 5 Other 1 1 : - 1 Total tr
Slide 48: 4.3 Trading Services: Cash Market Trading
4.3 Trading Services: Cash Market Trading FY17 FY18 FY19 Fy2i FY21 Trading days 253 252 252 255 254 Total cash market trades ('000) 266,433 292,528 359,985 460,789 384,150 Average daily cash market trades 1,053,096 1,160,826 1,428,512 1,807,015 1,512,400 Continuous trading value ($bn) $735.447 $677.
Slide 49: 4.3 Trading Services: Technical Services
4.3 Trading Services: Technical Services FY17 FY18 FY1 FY20 Technical Services (number at period end) ASX Distribution Platform Australian Liquidity Centre cabinets 285 301 324 326 368 Connection Services ASX Net connections 123 ne 104 103 103 ASX Net service feeds 437 444 447 455 452 Australian Liq
Slide 50: 4.4 CCP participant collateral balances
4.4 CCP participant collateral balances Balances at period end ASX Clear - initial margins 672.3 567.3 843.6 1,286.4 971.3 ASX Clear (Futures) - initial margins House’ 2,030.9 1,920.6 2,369.7 2,763.2 2,628.2 ASX Clear (Futures) - initial margins Client’ 4,856.1 4,182.7 5,548.9 6,797.1 6,597.0 ASX Cl
Slide 51: 5. ASX Group own cash movement
5. ASX Group own cash movement FY17 FY18 FY19 FY20 Smillion Smillion Smillion Smillion Smillion ASX Group cash Total cash and short-term investments 9,085.6 9,565.3 12,265.0 13,857.0 13,381.9 Less participants’ margins and commitments (8,084.7) (8,495.8) (10,801.0) (12,677.2) (12,214.8) ASX Group ow
Slide 52: 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 (19 ‘August 2021). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investm