Tel Aviv Stock Exchange Ltd. · TASE:TASE
Tel Aviv Stock Exchange — Q4 2021 Earnings Presentation
30 slides from Tel Aviv Stock Exchange's earnings presentation, 2022
Slide 1: Investors Presentation Fourth quarter 2021
Tel-Aviv Stock Exchange (TASE) Investors Presentation Fourth quarter 2021 1
Slide 2: Important notice
IMPORTANT: You must read the following before continuing. The following applies to the presentation with respect to The Tel-Aviv Stock Exchange Limited and its subsidiaries and affiliates (collectively, “TASE”). In accessing the presentation, you agree to be bound by the following terms and conditio
Slide 3: TASE at a Glance / 2021 by the Numbers
TASE at a Glance / 2021 by the Numbers Established in 1953, TASE is the only Securities Exchange in Israel and a cornerstone of its growing capital market Average Daily Turnover Financial Metrics (NIS Billions) (NIS Billions) (‘000 Contracts) (NIS Millions) (NIS Millions) (NIS Millions) (NIS Million
Slide 4: The results for Q4’21
The results for Q4’21 NIS, in thousands Quarter Ended Revenue 85.7 December 31, December 31, (NIS Millions) 77.5 11% IFRS (GAAP) 2021 2020 Difference -% Revenue from services 85,727 77,482 11% Expenses 68,707 63,897 8% Y-o-Y Growth Q4'20 Q4'21 Profit before financing income, net 17,020 13,585 25% Fi
Slide 5: Revenue Q4’21
Revenue Q4’21 NIS, in thousands 43% transactional Quarter Ended 57% non-transactional % of the % of the December Company’s December Company’s Difference -% 31, 2021 total 31, 2020 total revenues revenues 1% 16% The increase in revenue from trading and clearing is due mainly to the Trading and increa
Slide 6: Adjusted Expenses Q4’21
Adjusted Expenses(*) Q4’21 NIS, in thousands Quarter Ended % of the % of the December Company’s December Company’s 0% Difference -% 31, 2021 total 31, 2020 total 18% Expenses Expenses Q4’21 Compensation 37,666 55% 33,407 52% 13% 3% Adjusted 3% Expenses 68.6 Computer and 7,400 11% 6,879 11% 8% Commun
Slide 7: Balance Sheet and Liquidity Position
Balance Sheet and Liquidity Position as of December 31st 2021 | NIS Thousands Assets: Capital requirements in respect of the risk components: Current assets Cash and cash equivalents 179,768 Credit risk 37,124 Financial assets at fair value through profit or loss 210,289 Market risk 6,059 Trade rece
Slide 8: Cash Flow
Cash Flow NIS in Millions Item 2021 Q4’21 Q3’21 Q2'21 Q1’21 2020 Q4’20 Q3’20 Q2’20 Q1’20 Adjusted EBITDA(1) 103.0 29.5 22.8 26.2 24.6 95.1 25.9 19.3 21.0 28.9 Operating Changes in working capital 13.8 11.1 )8.4( )7.3( 18.4 6.7 (1.9) )10.4( 2.3 16.7 Activities Financing and tax )10.4( )4.0) )3.6( )1.
Slide 9: Revenue Trends
Revenue Trends NIS in Millions 323.7 Annual 304.3 2% 1% Other Revenue 260 16% 255.6 16% 2% 2% Data distribution and connectivity services 14% 16% 19% 20% Clearing House services 19% 20% 19% 21% Securities listing fees, and annual levies 18% 21% Trading and clearing commissions 47% 45% 41% 41% 2018 2
Slide 10: Adjusted Operating Expenses Trends
Adjusted Operating Expenses(1) Trends NIS in Millions 268.5 Annual 254.2 242.0 Other Expenses(1) 227.1 27% 26% 27% Depreciation and amortization 29% 18% Compensation 19% 18% 15% 57% 55% 55% 55% 2018 2019 2020 2021 Quarterly Expenses(1) 70.2 68.6 63.2 63.5 63.8 63.7 65.4 64.3 61.7 59.9 62.4 58.0 25%
Slide 11: Profitability Trends
Profitability Trends NIS in Millions 40% 45.0 35% 36% 31% 32% 34% 35% 40.0 33% 120.0 31% 31% 30% 30% 35.0 29% 103.0 30% 27% 100.0 24% 24% 95.1 26% 26% 28.9 29.5 25% 30.0 25% 23% 25.9 26.2 22% 24.6 20% 80.0 25.0 22.8 20% 21.0 61.5 62.9 19.3 Adjusted EBITDA15% 60.0 20.0 16.6 17.0 15.1 & Margin (1) 14.
Slide 12: Issuance Volume
Issuance Volume Number of Issuances(2) 2021(1) Capital Issuances(2) (NIS in billions) Secondary offering IPO'S 2% Secondary Offerings IPO's 26.4 170 Secondary Offerings Equity Market 31% 16.8 115 40% 26.4 Private Placements 13.3 NIS in IPOs 60 94 billions Exercise of Warrants 10.5 27 27% 7 3.2 4.6 2
Slide 13: APPENDIX
APPENDIX PROTA ge TELAVIV STOCK EXCHANGE ~~
Slide 14: Q4’21 Revenue Composition
Q4’21 Revenue Composition 43% transactional 57% non-transactional Trading and Clearing Commissions Clearing House Services ▪ Trade execution and ▪ Custodian services, 2% clearing of corporate 7% clearing across asset Shares 19% actions, and transfer Custodian classes and clearing for 1% creation/red
Slide 15: 2021 Revenue Composition
2021 Revenue Composition 41% transactional 59% non-transactional Trading and Clearing Commissions Clearing House Services ▪ Trade execution and ▪ Custodian services, 2% clearing of corporate 8% clearing across asset Shares classes and clearing for 20% actions, and transfer Custodian 2% creation/rede
Slide 16: Revenue Drill Down | Transactional - Shares
Revenue Drill Down | Transactional - Shares Velocity 36% 35% 53% 40% 33% 35% 37% 36% 61% 58% 50% 47% 46% 40% 41% 38% 2.19 1.86 1.88 1.89 1.86 1.88 1.97 1.70 1.79 1.60 1.67 1.37 1.43 1.30 1.26 1.15 Average Daily Turnover (NIS billions) 2018 2019 2020 2021 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'
Slide 17: Revenue Drill Down | Transactional - Bonds
Revenue Drill Down | Transactional - Bonds Velocity 91% 83% 109% 77% 88% 82% 85% 83% 118% 100% 78% 74% 87% 76% 68% 77% 5.03 4.44 4.53 4.14 3.93 1.23 3.96 3.69 3.55 3.72 3.60 3.54 0.83 3.78 Government Bonds Corporate Bonds 3.51 3.41 3.37 1.23 3.40 1.08 0.91 0.99 1.04 0.90 0.81 0.93 0.92 0.89 0.86 1.0
Slide 18: Revenue Drill Down | Transactional - Mutual Funds
Revenue Drill Down | Transactional - Mutual Funds 1.69 1.06 0.96 0.89 0.91 0.91 0.94 0.95 0.88 0.84 0.87 0.86 0.88 0.86 0.77 0.79 Average Daily Turnover (NIS billions) 2018 2019 2020 2021 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 0.0125% 0.0124% 0.0130% 0.0120% 0.0114%
Slide 19: Revenue Drill Down | Transactional – Derivatives
Revenue Drill Down | Transactional – Derivatives Daily Contracts (thousands) Single-stock Derivatives FX derivatives Options on Indices 195.4 3 182 173 170 159 167 160 163 160 168 3 159 3 4 59 145.1 5 135 145 4 142 3 3 5 145 7 3 3 3 3 59 5 44 55 2 47 58 54 51 54 44 48 40 45 40 54 50 Average Daily Tu
Slide 20: Revenue Drill Down | Non-transactional
Revenue Drill Down | Non-transactional Custodian fees (Clearing House Services) 3,034 3,131 2,975 2,958 2,639 2,639 2,776 2,491 2,478 2,564 2,505 2,467 2,602 2,310 2,419 2,390 Asset Value (NIS billions)* 2018 2019 2020 2021 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 0.00
Slide 21: Revenue Drill Down | Non-transactional
Revenue Drill Down | Non-transactional NIS in Millions Unless Otherwise Noted 33.1 30.3 28.1 20.2 Annual Levies 7.0 6.9 7.0 7.2 7.9 7.5 7.5 7.5 8.3 8.3 8.2 8.3 2018 2019 2020 2021 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 36.0 29.6 26.4 26.6 Examination and Listing Fees
Slide 22: Q4’21 Adjusted Expense Composition
Q4’21 Adjusted Expense Composition Property Taxes and Building 0% Compensation Computer and Communications Maintenance 18% ▪ The 2017 Collective Agreement ▪ Expenses associated with ▪ Expenses associated with owning Q4’21 sets the maximum annual maintenance, support, and the TASE headquarters 3% Adj
Slide 23: 2021 Adjusted Expense Composition
2021 Adjusted Expense Composition Property Taxes and Building 0% Compensation Computer and Communications Maintenance 18% ▪ The 2017 Collective Agreement ▪ Expenses associated with ▪ Expenses associated with owning Q4’21 sets the maximum annual maintenance, support, and the TASE headquarters 4% Adju
Slide 24: Adjusted Net Profit and Adjusted EBITDA Reconciliation
Adjusted Net Profit and Adjusted EBITDA Reconciliation NIS in Thousands Quarter Ended ,Year ended December 31, December 31, December 31, 2021 2020 2019 2021 2020 Profit for the year 14,101 11,275 45,470 36,904 17,558 Adjusted Net Profit (+) Expenses in respect to share-based payments 134 246 739 1,2
Slide 25: Transactional Metrics
Transactional Metrics Quarter ended Year ended 31.12.21 30.09.21 30.06.21 31.03.21 31.12.20 30.09.20 30.06.20 31.03.20 31.12.21 31.12.20 31.12.19 31.12.18 Number of trading days 65 56 61 62 66 62 57 63 244 248 244 245 SHARES Market cap of Shares (ex. ETN / ETFs) 1,125 1,015 958 877 842 714 680 649 1
Slide 26: Transactional Metrics | Continued
Transactional Metrics | Continued Quarter ended Year ended 31.12.21 30.09.21 30.06.21 31.03.21 31.12.20 30.09.20 30.06.20 31.03.20 31.12.21 31.12.20 31.12.19 31.12.18 Number of trading days 65 56 61 62 66 62 57 63 244 248 244 245 TREASURY BILLS Market cap (in NIS billions) 115 105 101 91 87 91 93 11
Slide 27: Non-Transactional Metrics
Non-Transactional Metrics Quarter ended Year ended 31.12.21 30.09.21 30.06.21 31.03.21 31.12.20 30.09.20 30.06.20 31.03.20 31.12.21 31.12.20 31.12.19 31.12.18 CLEARING HOUSE SERVICES Average Monthly Market value of assets (in NIS billions)* 3,131 3,034 2,958 2,776 2,602 2,467 2,390 2,505 2,975 2,491
Slide 28: Non-Transactional Metrics | Continued
Non-Transactional Metrics | Continued Quarter ended Year ended 31.12.21 30.09.21 30.06.21 31.03.21 31.12.20 30.09.20 30.06.20 31.03.20 31.12.21 31.12.20 31.12.19 31.12.18 LISTING FEES AND LEVIES The value of issuance used to calculate Listing fees (in NIS millions)(1) Companies – Shares, Bonds and E
Slide 29: Non-Transactional Metrics | Continued
Non-Transactional Metrics | Continued Quarter ended Year ended 31.12.21 30.09.21 30.06.21 31.03.21 31.12.20 30.09.20 30.06.20 31.03.20 31.12.21 31.12.20 31.12.19 31.12.18 DATA DISTRIBUTION AND CONNECTIVITY SERVICES Average number of data terminals Domestic business clients 7,658 7,184 7,584 7,785 7,
Slide 30: Contacts
CONTACTS Yehuda van der Walde Orna Goren EVP CFO Head of Communication & PR unit Email: cfo@tase.co.il Email: tase.ir@tase.co.il Tel: +972-76-8160442 Tel: +972-76-8160405 30
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