Slide 1: ASX Limited – 2024 Half-Year Results Presentation Slides
16 February 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 ASX LIMITED – 2024 HALF-YEAR RESULTS PRESEN
Slide 2: ASX Limited February 2024
ASX Limited 16 February 2024
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by ASX Limited (ABN 98 008 624 691) (“ASX’). Summary information This presentation contains general information about ASX and its related bodies corporate (“ASX Group”) and their activities current as at 16 February 2024, unless otherwise stated. It is
Slide 4: Acknowledging Country
Acknowledging Country | ASX acknowledges the Trad Owners of Country throughot : Australia. We pay our respects to - Elders past and present. i Artwork by Lee Ann Hall, My country My People
Slide 5: Contents
Contents 1H24 highlights and focus areas Helen Lofthouse, CEO 1H24 financial performance Andrew Tobin, CFO Strategy Helen Lofthouse Outlook and summary Helen Lofthouse Q&A Helen Lofthouse and Andrew Tobin 4| @asx
Slide 6: 1H24 highlights and focus areas
Helen Loftnouse, CEOmy > 1H24 highlights and focus a reas |
Slide 7: 1H24 highlights
1H24 highlights Solid revenue growth offset by expenses, maintaining investment in Key focus areas FOCUS AREAS 1H24 financial Regulatory Business results commitments rationalisation Operating revenue Significant progress in Ongoing investment Expense management growth in challenging delivery of regu
Slide 8: 1H24 financial results summary
1H24 financial results summary ating revenue growth offset by higher total expenses Resilient operating revenue performance with growth in Markets and Technology and Data offset by decline in Listings Operating revenue! and Securities and Payments businesses Total expenses Total expenses increase dr
Slide 9: Good progress in regulatory commitments
Seicai progress in regulatory commitments Delivering Governance v Released external expert report on identification and management of intra-group conflicts v CHESS Governance Statement published enefits from investment to c Stakeholder engagement v Established CHESS replacement Technical Committee v
Slide 10: Technology modernisation roadmap
Technology modernisation roadmap Prioritising investment in technology to support long term sustainability of ASX Trading Delivery capability Technology roadmaps Driving productivity, Strategic portfolio management standardising processes Project delivery uplift and increasing automation Improved pr
Slide 11: Technology modernisation - CHESS replacement
Technology modernisation - CHESS replacement Now in delivery phase Benefits of TCS BaNCS product cted to meet the f today’s mar benefits Settlement and sub-register ged implementation Estimated cost: $105 - $125 million Cost and timing expects to be determined tential reuse o in late 2024 g of each
Slide 12: Business rationalisation
Business rationalisation Prioritisation and e + Workforce optimisation underway: — Targeted restructure initiated Expense - Opportunity to reduce use of consultants and contractors management review * Further opportunities in: + Exiting investments — Process simplification and automation - Yieldbrok
Slide 13: 1H24 financial performance
Andrew Tobin, CFO os 1H24 financial performance _
Slide 14: Financial results
Financial results Solid operating revenue growth offset by total expenses 1H24 2H23 1 1H24v $m $m 1H23 Listings 104.9 108.9 109.7 (4.4%) Markets 153.2 153.6 138.8 10.4% Technology and Data 124.6 123.3 117.5 6.0% Securities and Payments 129.0 124.9 133.5 (3.4%) Operating revenue 511.7 510.7 499.5 24%
Slide 15: Listings
Listings Revenue recognition pol 4H24 2H23 tial list e nue contribution per period der AASB 15 (5 million)! Revenue ($million) 104.9 108.9 109.7 Annual listing 53.5 54.4 53.9 Initial listing’ 10.3 11.2 11.8 Secondary raisings2 37.0 38.8 39.5 Investment products & other listing 41 45 45 S116 5107 S10
Slide 16: Markets
Markets Growth in futures activity partially offset by decline in cash market trading 1H24v tates future umes (million) Revenue ($million) 153.2 153.6 138.8 10.4% 6 Futures and OTC 14.4 113.7 98.1 16.6% 5 Cash market trading 30.0 30.9 32.4 (7.4%) 40 Equity options 8.8 9.0 83 6.0% 39 Tevan 20 ey driv
Slide 17: Technology & Data
Technology & Data Ongoing demand for market data and ALC service connections 1H24v Revenue ($million) 123.3 117.5 6.0% Information services 76.0 74.4 70.4 8.0% Technical services 48.6 48.9 471 3.2% Key drivers (spot) ALC cabinets 388 390 388 0.0% ALC service connections 1378 1346 1314 4.9% Informati
Slide 18: Securities & Payments
Securities & Payments ta Slowdown in cash markets activity impacting issuer and equity post trade services 1H24 v Revenue ($million) 124.9 133.5 (3.4%) Issuer services 29.6 28.4 32.7 (9.5%) Equity post-trade services 64.3 65.3 69.5 (7.5%) Austraclear (including Sympli) 35.1 31.2 31.3 12.1% Key drive
Slide 19: Total expenses
Total expenses 1H24 2H23 re\Meemirzeg Staff expense growth reflects increased headcount to support ($m) ($m) ($m) are} the investment in technology modernisation, regulatory Staff 124.8 102.1 96.5 __ (29.3%) commitments and delivery of risk and compliance initiatives Occupancy 54 5.0 49 eed — — Equi
Slide 20: Total expenses profile
Total expenses profile 1H24 gro} C a astment in ke FY24 total expenses growth guidance of 12%-15% unchanged: * Supporting the reset horizon of five year strategy and ongoing regulatory associated costs + ~S7 million in regulatory costs in 1H24, one-off in nature 200 * Business rationalisation: - Exp
Slide 21: Net interest income
Net interest income ASX Group cash net income growth offset by subdued investment spread income 1H24 2H23 1H23] 1H24v ($m; ($m) ($m) 1H23 Net interest income on ASX Group cash 23.3 19.1 13.5 73.2% Lease financing cost (1.4) (1.3) (1.3) (12.3%) Group net interest income 22.2 17.8 12.2 82.0% Net inter
Slide 22: Balance sheet and shareholder returns
Balance sheet and shareholder returns Balance sheet 31Dec 23 30 Jun 23 $m $m Shareholder returns 1H24 2H23 1Ha3_ H24v 1H23 Cash 999.6 1,008.6 Underlying return on equity 12.6% 13.4% 13.4% _(79bps) Financial assets' 10,993.0 12,448.1 Underlying earnings per share (cents) 119.0 124.6 1291 — (7.8%) Int
Slide 23: Capital expenditure profile
Capital expenditure profile Primarily driven by technology modernis 60 50 40 30 20 Capital expenditure ($m) 1H23 2H23 1H24 Other — BB CHESS replacement + 1H24 capital expenditure of $49.9 million with 2H24 expected to be higher as technology projects ramp-up FY24 guidance of $110 - $140 million unch
Slide 24: Strategy
Helen Lofthouse, CEO Strategy
Slide 25: Five year strategy supporting customer driven growth
Five year strategy supporting customer driven growth * Executive team settled * Focus on culture and capability Cust ustomer driven growth supporting + Modern technology * Regulatory licences Update on business unit growth strategies to be presented at Investor Forum in June @asx
Slide 26: Strengths and structural tailwinds
Strengths and structural tailwinds term shareholder value Our strengths set us apart Structural tailwinds + Unmatched connectivity and liquidity * Growing Australian capital base i kets exes lle an * Increasing demand for technology * Trusted regional champion and data Deep experience in regulated *
Slide 27: Outlook and summary
Helen Loftnouse, CEO Outlook and summary
Slide 28: Outlook and guidance
Outlook and guidance nditions ment inn * Easing inflation, growing confidence around where interest rates will peak should drive increase in cash market volumes, recognising that ongoing geopolitical tension creates uncertainty + Solid pipeline of corporates looking to list on ASX as market conditio
Slide 29: 1H24 highlights
1H24 highlights Solid revenue growth offset by expenses, maintaining investment in Key focus areas FOCUS AREAS 1H24 financial Regulatory Business results commitments rationalisation Operating revenue Significant progress in Ongoing investment Expense management growth in challenging delivery of regu
Slide 30: Q&A
QEA GP ASX
Slide 31: Thank you
Slide 32: Appendix C. Financial appendix
Appendix Cc. Financial appendix @aAsx
Slide 33: 1. Income statement
1. Income statement 1H24 2H23 1H23 2H22 1H22 Smillion $million Smillion $million Smillion Annual listing 53.5 54.4 53.9 55.6 53.2 Initial listing 10.3 11.2 1.8 1.8 11 Secondary raisings 37.0 38.8 39.5 38.0 35.1 Investment products and other listing 441 45 45 44 47 Listings 104.9 108.9 109.7 109.8 10
Slide 34: 1. Income statement (continued)
1. Income statement (continued) 1H24 2H23 1H23 2H22 1H22 $million $million $million $million $million Staff" 124.8 102.1 96.5 86.0 85.7 Occupancy 5.4 5.0 49 44 45 Equipment 24.8 26.6 26.0 24.2 23.6 Administration’ 26.1 23.9 19.8 18.6 13.0 Variable 62 5.9 63 25 8.0 AsIClevy 74 44 3.0 44 33 Operating
Slide 35: 2. Balance sheet
2. Balance sheet Dec 23 30 Jun 23 31 Dec 22 30 Jun22 31 Dec 21 Smillion Smillion Smillion Smillion Smillion Assets Cash 999.6 1,008.6 5,952.9 4,972.2 5,288.4 Financial assets" 10,993.0 12,448.1 6,072.3 9,484.8 7,795.5 Intangibles (excluding software) 2,325.5 2,325.5 2,325.5 2,325.5 2,325.5 Capital s
Slide 36: 3. Key financial ratios
3. Key financial ratios 1H24 2H23 1H23 2H22 1H22 Basic earnings per share (EPS) * 119.0¢ 125.8¢ 38.1¢ 133.4¢ 129.3¢ Diluted EPS* 119.0¢ 125.8¢ 38.1¢ 133.4¢ 129.3¢ Underlying EPS2 119.0¢ 124.6¢ 129.1¢ 133.4¢ 129.3¢ Dividend per share - interim 101.2¢ - 116.2c - 116.4c Dividend per share - final - 112
Slide 37: 4.1 Listings
4.11 Listings 1H24 2H23 1H23 2H22 1H22 Total domestic market capitalisation ($bn) - period end $2,626 $2,504 $2,463 $2,308 $2,603 Total number of listed entities (includes all stapled entities) - period end 2,191 2,255 2,292 2,317 2,299 Number of new listings 28 17 40 67 150 Average annual listing f
Slide 38: 4.2 Markets: Futures and OTC
4.2 Markets: Futures and OTC 1H24 2H23 1H23 2H22 1H22 Trading days 128 127 129 126 130 Total contracts traded - futures ('000) ASX SPI 200 7,678 7,598 7,791 7,978 6,837 90 day bank bills 17,071 17,598 12,725 11,848 9,387 3 year bonds 23,263 24,103 19,560 22,198 20,420 5 year bonds 174 143 180 299 61
Slide 39: Markets: Futures and OTC (continued)
42 Markets: Futures and OTC (continued) 1H24 2H23, 1H23 2H22 1H22 Total contracts traded - options on futures ('000) ASX SPI 200 1 1 3 6 3 3 year bonds ie} ie} ie} ie} ie} Overnight 3 year bonds 17 5 1 0 5 Intra-day 3 year bonds 13 63 9 ie} 7 10 year bonds* i) i) i) i) 3 Electricity 53 67 36 55 46 O
Slide 40: 4.2 Markets: Equity Options
4.2 Markets: Equity Options 1H24 2H23 1H23 2H22 1H22 Trading days 128 124 128 123 130 Single stock options (‘000) 31,428 30,269 28,076 31,560 28,613 Index options and futures (‘000) 3,872 4,348 3,323 3,335 2,561 Single stock options average daily contracts 245,533 244,108 219,341 256,582 220,096 ind
Slide 41: 4.2 Markets: Cash Market Trading
4.2 Markets: Cash Market Trading 1H24 2H23 1H23 2H22 1H22 Trading days 128 124 128 123 130 Total cash market trades ('000) 181,590 171,028 198,556 235,089 213,187 Average daily cash market trades 1,418,673 1,379,259 1,551,217 1,911,289 1,639,903 Continuous trading value ($bn) $377,002 $398,424 $449,
Slide 42: 4.3 Technology and Data: Technical Services
4.3 Technology and Data: Technical Services 1H24 2H23 1H23 2H22 1H22 Technical Services (number at period end) ASX Distribution Platform Australian Liquidity Centre cabinets 388 390 388 386 369 Connection Services ASX Net connections 100 99 102 106 104 ASX Net service feeds 445 456 470 476 466 Austr
Slide 43: 4.4 Securities and Payments: Clearing & Settlement and Issuer Services
4.4 Securities and Payments: Clearing & Settlement and Issuer Services 1H24 2H23 1H23 2H22 1H22 Clearing days 128 124 128 123 130 Total billable cash market value cleared ($bn) 721.38 742.77 793.65 941.22 870.97 Settlement days 128 124 128 123 130 Number of dominant settlement messages (m) 10.0 10.3
Slide 44: 4.4 Securities and Payments: Austraclear
4.4 Securities and Payments: Austraclear 1H24 2H23 1H23 2H22 1H22} Settlement days 128 123 129 123 130 Transactions (‘000) Cash transfers 290 280 298 282 278 Fixed interest securities 772 725 744 688 541 Discount securities 70 66 68 53 51 Foreign exchange 2 10 2 2 2 Other ie) 1 te) te) te) Total tra
Slide 45: 4.5 CCP participant collateral balances
4.5 CCP participant collateral balances 1H24 2H23 1H23 2H22 1H22 $million $million $million $million $million Balances at periodend ASX Clear - initial margins 975.2 970.5 941.9 1,257.7 710.7 ASX Clear (Futures) - initial margins House’ 1,646.6 2,484.2 2,084.0 2,449.3 2,354.8 ASX Clear (Futures) - i
Slide 46: 5. ASX Group own cash and short-term investments movement
5. ASX Group own cash and short-term investments movement 1H24 2H23 1H23 2H22 1H22 Smillion Smillion Smillion Smillion Smillion ASX Group cash and short-term investments Total cash and short-term investments. 1,992.6 13,4567 12,025.2 14,457.0 13,083.9 Less participants’ margins and commitments (10,7