Slide 1: ASX Limited – 2022 Half-Year Results Presentation Slides
10 February 2022 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 – 2022 HALF-YEAR RESULTS PRESENTATION
Slide 2: 2022 ASX Limited
2022 ASX Limited 10 February 2022
Slide 3: Agenda
Agenda 1H22 financial results overview Financial performance Strategic update Outlook Q&A - analysts and media 2| Dominic Stevens - CEO Gillian Larkins - CFO Dominic Stevens Dominic Stevens Dominic Stevens and Gillian Larkins @aAsx
Slide 4: 1H22 financial results overview
Dominic Stevens - CEO 1H22 financial results overview a ASX
Slide 5: Strong 1H22 financial result
Strong 1H22 financial result Continuing to deliver reliable, long-term returns to shareholders we oe on pcp on pcp q * Strong results for listings and equities trading as well as greater demand for $501.4m technology and data, partly offset by lower futures volumes -6%) * Continued investment in ini
Slide 6: Revenues unaffected by RBA policy settings continue to grow strongly
Revenues unaffected by RBA policy settings continue to grow strongly Short-end interest rate futures volumes and interest income appear to have bottomed in 2H21 Index of short-dated futures trading revenue, interest income and all other group revenue (1H14 = rebased to 100) Yield Curve 180 Control (
Slide 7: Uncertainty around interest rate outlook increasing
Uncertainty around interest rate outlook increasing Continue to expect a recovery in short-end interest rate futures volumes; timing remains unclear Implied yields in December 2023 90-day short and bank bill futures 25 a . * Globally, seeing interest rates starting to rise due to inflationary pressu
Slide 8: Futures volumes reflect their respective drivers
Futures volumes reflect their respective drivers Improvement in short-end interest rate volumes; growth in electricity volumes Short and long interest rate futures volume Increase in short-end Electricity futures and options net revenue multiplied by published average fee ($m) volumes driven by as a
Slide 9: Record listings activity
Record listings activity Current performance underpins future listings revenue growth All time record half Total capital raised ($bn) Initial and secondary listings revenue - reported vs cash ($m) Future periods to benefit from (23 current listings strength 49) 46 4HI9 2H19 4H20 2H20 4H21 2H21 4H22
Slide 10: Sustained securities activity
Sustained securities activity Cash equity trading volumes supported by M&A activity; retail remains elevated vs pre-COVID levels Cash equity trading driven by increased institutional activity Securities and Payments driven by equity market activity On-market average daily value traded (ADV) (Sbn) Se
Slide 11: Ongoing demand for data and connectivity services
Ongoing demand for data and connectivity services Growth reflects increased market activity, customer numbers and customer-to-customer connectivity Information services: growing at a 5-year CAGR of 10% * Continuing structural tail-winds include — Growing demand for display and non-display products —
Slide 12: Execution of key initiatives
Execution of key initiatives Significant delivery in a challenging operating environment Challenging operating environment * COVID * Competition for securing and retaining talent Cautious and agile approach + Ongoing commitment to — Protecting the health and safety of staff and customers — Maintaini
Slide 13: Financial performance
Gillian Larkins - CFO Financial performance a ASX
Slide 14: 1H22 ASX financial results
1H22 ASX financial results Diversified business model delivers reliable returns to shareholders 1H22 2H21 1H21| 1H22 v , . $m $m sm 4H21 * Operating revenue increased by 6.6% reflecting listings and trading activity plus Operating revenue 501.4 481.0 470.5 6.6% . P § higher demand for technology and
Slide 15: 1H22 ASX operating revenue
1H22 ASX operating revenue Higher equities activity, growing demand for tech and data offerings, partly offset by lower futures 2H21 4H21] 1H22v 1H22 operating revenue contribution by business $m $m 1H21 Austracl Listings 104.1 94.0 88.9 17.0% Say 5% Cash Market Markets 141.9 141.3 145.7 (2.6%) B Se
Slide 16: 1H22 ASX operating revenue by business
1H22 ASX operating revenue by business 1H22 v Revenue (Smillion) 104.1 94.0 88.9 17.0% Annual listing 53.2 46.4 43.5 22.3% Initial listing 1.4 9.6 9.0 22.9% Subsequent raisings 35.1 32.7 314 11.7% Investment products and other listing 47 53 5.0 (5.5%) Key drivers New listings (number) 150 1 85 76.5%
Slide 17: 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 Total initial and secondary listing fee revenue contribution per period under AASB 15 (§ million) 1H21 Initial 1H21 Secondary 2H21 Initial 2H21 Secondary 1H22 Initial 1H22
Slide 18: 1H22 ASX operating revenue by business (continued)
1H22 ASX operating revenue by business (continued) Technology and Data 1H22| = 2H21 1H21 TERY 1H21 Revenue (Smillion) 108.6 105.4 98.6 10.1% Information services 63.6 61.7 56.3 12.9% Technical services 45.0 437 42.3 6.3% Key drivers (spot) Number of ALC cabinets 369 368 345 7.0% ALC cross-connection
Slide 19: 1H22 ASX total expenses
1H22 ASX total expenses Continued investment in initiatives coupled with growth in market activity 1H22 2H21 1H21| 1H22 v $m $m $m 1H21 Staff 857 78.4 75.9 (13.0%) * Staff expense growth reflects costs associated with operating model Occupancy 45 4.6 48 6.7% redesign, headcount increase and Equipmen
Slide 20: ASX FY22 total expense and capital expenditure guidance
ASX FY22 total expense and capital expenditure guidance Annual growth composition and guidance Expense growth % Capital expenditure ($million) 9.0% EY22 1098 89S Suidance 1 105-115 | 75A 80.4 ' ' ' \ i ' : Z - FYI? FY18 FY19 FY20 FY21 FY22 FYI7 FY18 FY19 FY20 FY21 FY22 m Staff m Equipment ™ Variable
Slide 21: 1H22 ASX net interest income
1H22 ASX net interest income Lower investment earnings in the current interest rate environment 1H22 2H21 1H21| 1H22v = a al 4H21 Group net interest income (Ige) Average collateral balance (billion) Lease financing cost ta as i ne (1. i 94% Group net interest income (2.3) (2.4) (1.5) (56.3%) Net int
Slide 22: 1H22 ASX balance sheet
1H22 ASX balance sheet Financially stable with strong levels of participant margins 31 Dec 21 30 Jun 21 sm sm Cash and other financial assets 13,083.9 13,381.9 Intangibles (excluding software) 2,325.5 2,325.6 Software 279.4 240.9 Investments 92.5 87.6 Other assets 945.4 561.0 Total assets 16,726.7 1
Slide 23: ASX delivering to shareholders
ASX delivering to shareholders 90% dividend payout policy 1H22 v Earnings per share (cents) 1293 1235 1249 3.5% Dividends per share (cents) 164 1112 1124 3.5% % of profit paid out 90% 90% 90% * Earnings per share up 3.5% on pcp + Interim dividend of 116.4 cents per share, up 3.5% on pcp 22 | Underly
Slide 24: Strategic update
Dominic Stevens - CEO Strategic update a ASX
Slide 25: Technology strategy key to building an exchange for the future
Technology strategy key to building an exchange for the future Achieved through transforming our technology, strengthening resilience and focusing on opportunities FY17 - Commenced execution of business strategy to build an exchange for the future OBJECTIVES Technology transformation Enable Australi
Slide 26: Significant reduction in technology debt since 2016
Significant reduction in technology debt since 2016 Achieved through renewal and replacement of foundational hardware and software TRANSFORMATION RESILIENCE Age of equity and key infrastructure technologies (as at calendar year-end) 30 25 20 15 10 25 | 2016 2017 2018 2019 Equity data warehouse mSeco
Slide 27: Transformation of equity and core technology close to completion
Transformation of equity and core technology close to completion Contemporary, flexible technology enabling ASX to make business easier for customers TRANSFORMATION RESILIENCE Electronic statements capability & ——— New equity data warehouse FOCUS 0101010101 0101010101 0101010101 — CHESS replacement
Slide 28: Technology transformation delivering increased resilience
Technology transformation delivering increased resilience Averaged 99.99% uptime across all five key systems between 1 July 2017 and 31 December 2021 TRANSFORMATION RESILIENCE FOCUS Reduction reflects success of investing in risk management, technology, IT governance, enterprise architecture and inc
Slide 29: Focus on technology is creating opportunities to leverage strengths
Focus on technology is creating opportunities to leverage strengths Opening up pathways for future growth World-leading capabilities in DLT TRANSFORMATION RESILIENCE Globally recognised technology listings market * Over the last six years, ASX has established itself as a global leader in technology
Slide 30: Focus on technology is creating opportunities to leverage strengths
Focus on technology is creating opportunities to leverage strengths Opening up pathways for future growth ae she. ASX bond settlement @ revenue ~S20m ASX cash equities settlement revenue ~$80m Property Our own big data platform Large adjacency in property e-Settlement + ASX has its own enterprise-gr
Slide 31: Focus on technology and customers reflected in new operating model
Focus on technology and customers reflected in new operating model TRANSFORMATION RESILIENCE FOCUS Technology Directly focused technology - and Technology Centre of Excellence Operations operations resources a oe integrated Customer Delivery and Digital Centre of Excellence into the Enabling functio
Slide 32: Execution of technology strategy delivering an exchange for the future
Execution of technology strategy delivering an exchange for the future Technology transformation close to completion, resilience strengthened and focusing on opportunities FY17 - Commenced execution of business strategy to build an exchange for the future Technology transformation A Technology resil
Slide 33: Outlook
Dominic Stevens - CEO Outlook a ASX
Slide 34: Outlook
Outlook Increased uncertainty around the political, geopolitical and economic outlook January 2022 update * Strong growth across a number of businesses ~ Cash market equity trading value up 45% and clearing value up 40% — Continued momentum in IPOs and secondary capital raisings Markets outlook * —
Slide 35: Appendices
Appendices 1. Income statement 2. Balance sheet 3. Key financial ratios 4. Transaction and activity levels 5. Free cash flow summary 34 | @asx
Slide 36: 1. Income statement
1. Income statement Annual listing Initial listing Subsequent raisings Investment products and other listing Listings Equity options Futures and OTC clearing Cash market trading Markets Information services Technicalservices Technology and Data Issuer services Cashmarket clearing Cash market settlem
Slide 37: 1. Income statement
1. Income statement 1H20 2H20 1H21 2H21 1H22 S$million Smillion S$million S$million Smillion Staff 72.5 72.9 75.9 78.4 85.7 Occupancy 47 5.0 48 46 45 Equipment 16.1 19.3 21.0 21.5 23.6 Administration 12.7 13.3 13.0 14.9 13.0 Variable 46 61 6.8 74 8.0 ASIC supervision levy 3.8 47 46 39 33 Operating e
Slide 38: 2. Balance sheet
2. Balance sheet Assets Cash and other financial assets 1,893.3 13,857.0 13,7537 13,381.9 13,083.9 Intangibles (excluding software) 2,326.0 2,325.9 2,325.7 2,325.6 2,325.5 Software 152.2 170.9 209.0 240.9 279.4 Investments 99.2 85.6 86.4 87.6 92.5 Other assets" 1,440.7 975.4 979.0 561.0 945.4 Total
Slide 39: 3. Key financial ratios
3. Key financial ratios 1H20 2H20 1H21 2H21 1H22 Basic earnings per share (EPS) * 129.3¢ 128.3¢ 124.9¢ 123.5c 129.3¢ Diluted EPS* 129.3¢ 128.3¢ 124.9¢ 123.5¢ 129.3¢ Underlying EPS? 129.3¢ 136.1¢ 124.9¢ 123.5¢ 129.3¢ Dividend per share - interim 116.4 : 112.4c : 116.4 Dividend per share - final - 122
Slide 40: 4.1 Listings
4.1 Listings 1H20 2H20 1H21 2H21 1H22 Total domestic market capitalisation ($bn) - period end $2,118 $1,918 $2,237 $2,498 $2,603 Total number of listed entities (includes all stapled entities) - period end 2,240 2,188 2,200 2,228 2,299 Number of new listings 55 28 85 91 150 Average annual listing fe
Slide 41: 4.2 Markets: Futures and OTC
4.2 Markets: Futures and OTC 1H20 2H20 1H21 2H21 1H22 Trading days 130 127 130 126 130 Total contracts traded - futures ('000) ASX SPI 200 8,491 10,755 7,770 6,655 6,837 90 day bank bills 13,884 11,083 5,437 7,396 9,387 3 year bonds 30,359 27,732 24,12 21,486 20,420 5 year bonds" - - 45 1,093 614 10
Slide 42: 4.2 Markets: Futures and OTC (continued)
4.2 Markets: Futures and OTC (continued) 1H20 2H20 1H21 2H21 1H22 Total contracts traded - options on futures ('000) ASX SPI 200 17 48 21 7 3 3 year bonds 153 24 3 ie} ie} Overnight 3 year bonds 181 88 ie} ie} 5 Intra-day 3 year bonds 303 205 12 15 7 10 year bonds* 1 24 42 19 3 Electricity 29 50 56
Slide 43: 4.2 Markets: Equity Options
4.2 Markets: Equity Options 1H20 2H20 1H21 2H21 1H22 Trading days 130 125 130 124 130 Single stock options ('000) 33,928 31,966 29,124 27,763 28,613 Index options and futures (000) 4,659 5,183 2,826 2,502 2,561 Average daily single stock options contracts 260,982 255,728 224,029 223,896 220,096 Aver
Slide 44: 4.2 Markets: Cash Market Trading
4.2 Markets: Cash Market Trading 1H20 2H20 1H21 2H21 1H22 Trading days 130 125 130 124 130 Total cash market trades ('000) 214,880 245,909 194,109 190,041 213,187 Average daily cash market trades 1,652,922 1,967,271 1,493,145, 1,532,587 1,639,903 Continuous trading value ($bn) $398,583 $596.736 $530
Slide 45: 4.3 Technology & Data: Technical Services
4.3 Technology & Data: Technical Services 1H20 2H20 1H21 2H21 1H22 Tec I services (number at period end) ASX Distribution Platform Australian Liquidity Centre cabinets 324 326 345 368 369 Connection Services ASX Net connections 101 103 104 103 104 ASX Net service feeds 447 455 449 452 466 Australian
Slide 46: 4.4 Securities & Payments: Austraclear
4.4 Securities & Payments: Austraclear 1H20 2H20 1H21 2H21 1H22 Settlement days 130 125 130 124 130 Transactions (‘000) Cash transfers 320 325 290 275 278 Fixed interest securities 457 518 545 555 541 Discount securities 66 65 53 50 54 Foreign exchange 4 2 3 2 2 Other - a - 1 - Total transactions 84
Slide 47: 4.5 CCP participant collateral balances
4.5 CCP participant collateral balances 1H20 2H20 1H21 $million $million n Balances at period end ASX Clear - initial margins 600.8 1,286.4 725.5 971.3 710.7 ASX Clear (Futures) - initial margins House’ 2,166.7 2,763.2 2,380.2 2,628.2 2,354.8 ASX Clear (Futures) - initial margins Client’ 6,355.7 6,7
Slide 48: 5. ASX Group own cash movement
5. ASX Group own cash movement 1H20 2H20 1H21 2H21 1H22 S$million $million S$million Smillion S$million ASX Group cash Total cash and short-term investments 1,893.3 13,857.0 13,753.7 13,381.9 13,083.9 Less participants’ margins and commitments (10,705.3) (12,677.2) (12,574.7) (12,214.8) (11,838.1) A
Slide 49: 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 (10 February 2022). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for invest