ASX LIMITED — Annual Report 2015

Aug 19, 2015

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ASX Limited

Elmer Funke Kupper , Managing Director and CEO Peter Hiom , Deputy CEO

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 (20 August 2015). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate.

To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by the ASX Group, including any of its related bodies corporate

This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the ASX Group. These forward-looking statements are based on estimates, projections and assumptions made by the ASX Group about circumstances and events that have not yet taken place. Although the ASX Group believes the forward-looking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the ASX Group’s control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results).The ASX Group makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements.

Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends.

The forward-looking statements included in this document speak only as of the date of this document. The ASX Group does not intend to update the forward-looking statements in this document in the future.

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2

Financial Results FY15

Revenues $700.7m 6.4%		Underlying Expenses $160.1m (4.2%)		EBITDA $540.6m 7.1%		Underlying NPAT $403.2m 5.2%		Statutory NPAT $397.8m 3.8%		Underlying EPS 208.4c 5.0%		DPS 187.4c 5.2%

• Positive revenue performance

• Impact of fee reductions in Derivatives business $17.8 million partially offset by removal of other rebates

• Underlying expenses in line with guidance

• Excludes restructuring charge $7.7 million pre-tax

• Additional resources in FY16 to support Asian growth, data business and CHESS replacement

• Capital expenditure $44.4 million

• Technology investment program underway

• FY16 capital expenditure guidance $45-50 million

• Post GFC regulatory settings largely in place

• Outcome from Council of Financial Regulators review of cash equities clearing expected soon

• Significant investment in long-term strategic position

• Higher customer engagement and improved service delivery

• Products and services that give investors flexibility and choice

• World-class trading and post-trade infrastructure

• Leading skills and team engagement

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Revenues and expenses as per the Group segment reporting Variances expressed favourable/(unfavourable)

3

Income Statement

	FY15 $ Million	FY14 $ Million	% Variance
Operating Revenues	700.7	658.3	6.4%
Operating Expenses	160.1	153.6	(4.2%)
EBITDA	540.6	504.7	7.1%
Depreciation and Amortisation	38.6	33.8	(14.3%)
EBIT	502.0	470.9	6.6%
Interest and Dividend	71.9	70.7	1.8%
Underlying Profit Before Tax	573.9	541.6	6.0%
Income Tax Expense	(170.7)	(158.4)	(7.7%)
Underlying Profit After Tax	403.2	383.2	5.2%
Significant Items (Net of Tax)	(5.4)	-
Statutory Profit After Tax	397.8	383.2	3.8%
EBITDA Margin	77.1%	76.7%

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Operating revenues and operating expenses as per the Group segment reporting Variances expressed favourable/(unfavourable)

4

Revenue Movement ($M)

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Interest rate and
electricity futures fee
reductions 4.2 0.8 700.7
4.4
4.9
7.9
(1.5)
21.7
658.3
Up Up Down Up Up Up Up
13.9% 6.7% 0.7% 7.0% 8.3% 10.4% 4.8%
Operating Revenues Up 6.4%
FY14 Listings Cash Derivatives Information Technical Austraclear Other FY15
and Issuer Market and OTC Services Services Revenue
Services Markets
$176.6m $125.2m $206.2m $73.7m $57.3m $45.3m $16.4m
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Operating revenues as per the Group segment reporting

5

Activity Levels by Half-year

Listings Total Capital Raised $ Billion

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Up 5.1% Up 71.6% Up 34.6%
88.9
66.0
50.3
36.7 38.6
29.3
1H 2H FY
FY14 FY15
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Futures Daily Average Contracts ('000)

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Up 2.5% Up 11.5% Up 7.0%
524
494
453 464 470 461
1H 2H FY
FY14 FY15
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ASX Cash Market Average Daily On-Market Value Traded $ Billion

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Up 8.9% Up 22.8% Up 15.9%
4.1
3.8
3.2 3.5 3.4 3.3
1H 2H FY
FY14 FY15
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Equity Options Daily Average Contracts ('000)

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Up 1.8%
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Down 9.2% Down 3.7%
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485 494 500 492 474
454
1H 2H FY
FY14 FY15
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6

Key Themes

Global Leader in A$ and NZ$ Financial Markets

• Innovate in fragmented equity market • Build on leadership in A$ and NZ$ derivatives markets

Investment Supermarket

• Grow listings franchise

• Extend suite of investment options – equities, debt, funds

World-Class Infrastructure, Globally Connected

• Deliver competitive trading and post-trade services

• • Upgrade technology infrastructure – multi-currency

• • Build global connectivity

• Deepen customer engagement across all services

Outstanding Customer • Deliver 24 hour service to local and global clients Experience • Strengthen alignment through fee reductions and rebates Regulatory Settings Employer of Choice

• Deliver 24 hour service to local and global clients

• • Strengthen alignment through fee reductions and rebates

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7

Listings and Issuer Services

Highlights

Areas of Focus

Revenue $176.6 million, up 13.9%

Grow Listings Franchise

• All revenue categories higher

• New Zealand – simplify dual listings process

• 120 IPOs; IPO capital $38.9 billion, up 40.7%

• Tech sector – 30 listings[1] in FY15, 131 entities listed

• Secondary capital $50.0 billion, up 30.2%

• Exchange traded products (ETPs) – 140 ETPs listed totalling $18.5 billion

• Number of holding statements up 11.1% on pcp

• ‘ASX Evolve’ program for listed entities

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Total Capital Raised
100
90
80
70
60 TRADITIONAL CHART
50 ANNUAL BASIS
40
30
20
10
0
FY11 FY12 FY13 FY14 FY15
Secondary Capital IPO Capital Scrip-for-Scrip
$ Billion
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Expand ‘Investment Supermarket’

• Domestic equities

• International equities – subject to regulatory clearance

• Government bonds

• Corporate bonds – support FSI recommendations

• ETFs and listed investment companies

• Unlisted managed funds through mFund service; 30 fund managers offering 101 funds via 11 brokers

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1Includes IPOs and backdoor listings

8

Cash Market

Highlights

Revenue $125.2 million, up 6.7%

• Trading $35.5 million, up 7.4%, clearing $47.1 million, up 9.2%, settlement $42.6 million, up 3.6%

• Total on-market value traded per day across all venues up 16.9%; ASX on-market trading up 15.9%

• Revenue sharing schemes $7.3 million, pcp $0.6 million

Areas of Focus

Trading

• On-market trading market share 90% (91% pcp)

• Growth in ASX auctions and Centre Point; together accounted for 27.8% of ASX on-market value and 47.9% of trading revenue

• Trading platform replacement in early FY17

Clearing and Settlement

Centre Point Value Traded

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80
70
60
50
40
30
20
10
0
FY11 FY12 FY13 FY14 FY15
Standard Block Sweep Preference Single Fill Dark Limit
Value $ Billion
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• ‘Cover 2’ capital standard for equities clearing house, AA- long-term credit rating from S&P

• Government decision on review of cash equities clearing expected soon

Five year extension will allow ASX to:

• Implement new clearing fee schedule. Impact $7.3 million pa based on current activity

• Strengthen the Code of Practice

• Invest in CHESS replacement

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9

Derivatives and OTC Markets

Highlights

Areas of Focus

Revenue $206.2 million, down 0.7%

Product Development

• Futures $181.6 million, down 2.1%

  • Energy – gas futures April 2015

• Contracts traded up 7.0%

• Higher rebates and fee reductions

• Equity options $24.6 million, up 10.9%

• ETOs – Flexclear OTC Clearing May 2015

• 20 Year Government Bond Futures September 2015

• Deliverable Swap Futures Q2 FY16

• Contracts traded down 3.3%

• Trading mix and one-off rebate in prior year

Distribution

• FY16 investment in sales resources targeting Asia

Futures and Options on Futures

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140
120
100
80
60
40
20
0
FY11 FY12 FY13 FY14 FY15
Interest Rates Equity & Other
Contracts Million
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• Trading platform replacement in late FY16

Clearing and Risk Management Services

• OTC clearing $805.9 billion in FY15 ($704.2 billion 2H15), 6 active clients

Regulatory Standards

• ‘Cover 2’ capital standard, AA- credit rating from S&P

• ESMA regulatory recognition, CFTC clearance

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10

Impact of Fee Changes on Futures Revenue ($M)[1 ]

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14.6 (7.4)
(17.8)
185.5
6.7 181.6
FY14 Volume & Higher Prop Fee Removal FY15
Product Mix Trader Reductions Other
Rebates Rebates
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• Fee reductions in electricity (1 July 2014) and interest rate futures (1 October 2014)

• FY15 part-year impact $17.8 million, partially offset by the removal of $6.7 million of other rebates

• FY16 full-year impact estimated to be approximately $24 million at current activity levels

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1FY15 Derivatives and OTC Markets revenue $206.2 million, consisting of futures $181.6 million and equity options $24.6 million

11

Information and Technical Services

Highlights

Areas of Focus

Information Services $73.7 million, up 7.0%

Information Services

• Pricing changes implemented 1 July 2014

Technical Services $57.3 million, up 8.3%

• Multi-year enterprise agreements established with key clients

• Hosting: 188 cabinets (142 pcp), 95 customers (89 pcp)

• Community and Connectivity: 9.2% increase in ALC service connections

• Expansion of data and analytic services – dedicated resources from FY16

Technical Services

Technical Services Revenue

• Growth in hosting as customers increasingly utilise ALC as a primary Australian data centre

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Hosting
$6.9m Community
up 19.1% and
Connectivity
$16.4m
up 6.4%
Application
Services
Liquidity
$3.0m
Access
down 1.5%
$31.0m
up 8.3%
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• Expansion of ASX Net global sites (Chicago CME, Hong Kong early FY16) and the availability of additional thirdparty content

• Increased content and service providers in ALC is generating additional cross-connect opportunities

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12

Austraclear

Highlights

Revenue $45.3 million, up 10.4%

• Transaction volumes down 1.9%

• Average balances up 13.3% to $1.7 trillion

• Number of debt issuances up 10.6%

Areas of Focus

Renminbi Settlement Service

• Launched July 2014

• Provides real-time RMB settlement facility

• Bank of China appointed RMB clearing bank

ASX Collateral Service

Holdings and Transaction Levels

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1,800 1,600
1,600 1,550
1,400
1,500
1,200
1,450
1,000
1,400
800
1,350
600
400 1,300
200 1,250
0 1,200
FY11 FY12 FY13 FY14 FY15
Holdings Balance (period end) (LHS) Transactions (RHS)
Holdings $ Billion
Transaction Volumes (‘000)
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• Reduces collateral costs for ASX clients by utilising fixed income securities within Austraclear

• Competitive pricing following re-negotiated commercial terms with Clearstream to facilitate growth

• Modest growth in activity with $4.3 billion collateral under management, 8 active users

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13

Focus on Customers

Customer Experience

Improving Capabilities

• New ASX Customer Experience Team in place, member of Group Executive Committee

Service Enhancements

• Customer Support Centre opened in April 2015

Engagement and Alignment

Investments

• Acquired 49% stake in the Yieldbroker bond/swap platform, remainder owned by key ASX customers

• ASX senior executive hires sourced from global and domestic customers as well as other industry stakeholders

• New digital Customer Portal in development

Customer Engagement

Customer Support Centre Opened April 2015

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• Client forums established for all asset classes

• First customer survey completed

Fee Reductions

• Promote growth and strengthen the ASX franchise

• Interest rate futures

• Electricity futures and options

• Cash Market Clearing (if market structure retained for five years)

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14

Impact of Fee Reductions on FY16 Revenues

Derivative fee reductions were implemented replacing other rebate schemes

				Variance
		FY15	FY16	FY15-FY16
		$ Million	$ Million	$ Million
Derivatives and OTC Markets
Fee Reductions		17.8	24.0
Removal of Other Rebate Schemes		(6.7)	-
		11.1	24.0	12.9
Commitment to implement fee reductions in FY16 if cash equities				clearing
market structure is retained for five years
				Variance
	FY14	FY15	FY16	FY15-FY16
	$ Million	$ Million	$ Million	$ Million
Cash Market
Revenue Sharing Schemes	0.6	7.31	-
Clearing Fee Reductions (if market structure retained)	-	-	7.3
	0.6	7.3	7.3	-

• FY16 full-year impact estimated at recent activity levels

• Partially offset by removal of other rebate schemes

• FY16 full-year impact estimated at FY15 activity levels

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1 Trading $2.5 million, Clearing $3.6 million & Settlement $1.2 million

15

Interest and Dividend Income

	FY15	FY14	%
	$ Million	$ Million	Variance
ASX Group Net Interest Income	26.9	28.6	(5.7%)
Net Interest Earned
on Collateral Balances	32.3	31.3	3.1%
Total Net Interest Income	59.2	59.9	(1.1%)
Dividend Income	12.7	10.8	17.5%
Interest and Dividend Income	71.9	70.7	1.8%

Highlights

• Total net interest income down 1.1%

• ASX Group net interest income down 5.7% as market rates fell

• Net interest earned on collateral balances up 3.1% primarily due to higher balances

• Collateral balances average $4.1 billion, up 7.5%

• Investment spread 41 bps (44 bps pcp)

• Repositioning of portfolio in line with regulatory standards over next 2 years will lead to lower investment earnings

• Impact in FY16 not expected to be material

• IRESS dividend up 17.5%

• Shareholding 19.2%

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16

Expenses ($M)

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160.1
153.6
146.2
141.1 63.7
135.5 61.2
59.0
58.5
56.7
96.4
92.4
87.2
82.6
78.8
FY11 FY12 FY13 FY14 FY15
Staff Other
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Highlights

• Staff costs up 4.4%

• Higher salaries and incentives

• Higher recruitment costs

• Average headcount down 1.9% to 524 FTEs

• Other costs up 4.1%

• Significant items restructuring charge: $7.7 million pre-tax

• No impact on FY15 final dividend

• Guidance FY16: approximately 5.0% increase:

• Ongoing expenses approximately 3.5%

• $2.5-3.0 million investment in new initiatives: data business, Asia, CHESS replacement

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17

Capital Expenditure ($M)

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50.2 45-50
44.4
43.2
39.1 38.9
FY11 FY12 FY13 FY14 FY15 FY16
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1 Normal ($118.3m) ALC (Data & Customer Support Centre $42.5m) Post-Trade ($55.0m)

Highlights

• Average total capital expenditure since 2011: $43 million per annum

• Capital expenditure guidance for FY16 $45-50 million

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1Post-trade $55.0 million, includes new post-trade services $36.1 million and upgrades of existing platforms $18.9 million

18

Infrastructure Investment Program

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Cash
Futures Trading Market
Trading platforms
Trading
Cash
Equity Clearing/
Clearing &
Phase I (Feb 15 – Dec 16) Options settlement Settlement
Clearing platforms
(CHESS) [1 ]
Market
Market integrity Risk Phase II
Monitoring and risk Management
platforms
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Customer Objectives

Economics

• Innovation and speed to market

• Global standards for connectivity

• Fewer platforms with lower client costs to connect and comply

• Managed within Group capex envelope of $45-50 million pa

• Phase 1 capex approximately $35 million over two years

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1Decision expected in FY16 when there is clarity on cash equities clearing market structure

19

Regulatory Environment

Developments - Last Three Years

Investors

• Equity market regulations supporting end-investors

Systemic risk

• Location requirements

• Global regulatory and capital standards adopted early

• A$ OTC interest rate swap central clearing mandate recommended along with G4 currencies

Global competitiveness

• Post-trade solutions in place

• ESMA recognition received, CFTC clearance

• AA- long-term credit ratings from S&P

Outstanding – Clearing Market Structure

Compelling case for single clearing facility

• Most efficient model for market the size of Australia

• Effective governance through Code of Practice

• Commitment to upgrade infrastructure

• Lower fees with initial 14.7% reduction[1 ]

	Proposed Equities Clearing Fees2 Basis Points
	all value up to $3bn per day 0.225
	any value between $3bn and $4bn 0.175
	any value between $4bn and $5bn 0.125
	any value over $5bn 0.100

1Subject to extension of current market structure

• 2Current fee is 0.25bp. Bands refer to total market value cleared per day

• Red tape reduction

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20

Capital Attribution (Net of Goodwill)

Majority of capital supports clearing and settlement risks for equities and exchange-traded derivatives

Capital Supporting	30 Jun-15 $ Million	Drivers/Comments
Clearing Default Risk
ASX Clear	250	Financial Stability Standards – Cover 2 • Previously Cover 1 • Driven by positions of two largest participants	Capital (cash-backed) held in clearing subsidiaries, ASX Clear and ASX Clear (Futures) 2013 capital raising mostly to meet higher capital standards for existing businesses
ASX Clear (Futures)1	450	Financial Stability Standards – Cover 2 • Previously Cover 1 • Driven by positions of two largest participants • Current positions dominated by traditional interest rate and SPI futures business • OTC clearing service minimal impact
Settlement, Business and Operating Risk	413	• Operational, business and investment risk across clearing, settlement and general business operations • Key drivers are the value in the equities and debt depositories	Held at Group level in cash and other assets Benefiting from risk diversification
Total Capital Attribution 1,113
Total Capital Attribution	1,113

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1In addition to the ASX capital contribution to ASX Clear (Futures) of $450 million, participants contributed $200 million

21

Post Balance Date Activity (to 14 August)

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35.0%
11.9%
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Total Capital raised $9.2 billion July 2015

Cash market trading Cash market trading (Total Market - all (ASX on-market) venues) $3.8 billion $5.1 billion Average value per day Average value per day 16.8%

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Futures trading
416,446
Daily average volume
2.1% (15.2%)
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Equity options OTC clearing trading $235.7 billion 338,804 Total cleared Daily average volume notional value Large

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22

Financial Results FY15

Revenues $700.7m 6.4%		Underlying Expenses $160.1m (4.2%)		EBITDA $540.6m 7.1%		Underlying NPAT $403.2m 5.2%		Statutory NPAT $397.8m 3.8%		Underlying EPS 208.4c 5.0%		DPS 187.4c 5.2%

• Positive revenue performance

• Impact of fee reductions in Derivatives business $17.8 million partially offset by removal of other rebates

• Underlying expenses in line with guidance

• Excludes restructuring charge $7.7 million pre-tax

• Additional resources in FY16 to support Asian growth, data business and CHESS replacement

• Capital expenditure $44.4 million

• Technology investment program underway

• FY16 capital expenditure guidance $45-50 million

• Post GFC regulatory settings largely in place

• Outcome from Council of Financial Regulators review of cash equities clearing expected soon

• Significant investment in long-term strategic position

• Higher customer engagement and improved service delivery

• Products and services that give investors flexibility and choice

• World-class trading and post-trade infrastructure

• Leading skills and team engagement

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Revenues and expenses as per the Group segment reporting Variances expressed favourable/(unfavourable)

23

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24

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Appendices

1. Income Statement

2. Balance Sheet

3. Key Financial Ratios

4. Transaction and Activity Levels

5. Free Cash Flow Summary

6. Capital Supporting Clearing and Settlement

7. Cash Market Clearing and Settlement Income Statements

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25

1. Income Statement

	FY11	FY12	FY13	FY14	FY15
	$ Million	$ Million	$ Million	$ Million	$ Million
Listings and Issuer Services	150.3	133.4	139.7	154.9	176.6
Listings	122.1	109.9	113.2	127.0	143.3
Annual Listing Fees	57.8	60.6	60.0	62.1	70.7
Initial Listing Fees	13.1	6.2	7.2	17.9	20.9
Subsequent Listing Fees	44.6	34.4	37.4	38.4	42.7
Other Listing Fees	6.6	8.7	8.6	8.6	9.0
Issuer Services	28.2	23.5	26.5	27.9	33.3
Cash Market	133.9	124.5	114.6	117.3	125.2
Trading	38.7	36.4	32.8	33.1	35.5
Clearing	49.6	45.9	41.6	43.1	47.1
Settlement	45.6	42.2	40.2	41.1	42.6
Derivatives and OTC Markets	172.2	188.7	197.3	207.7	206.2
Futures	141.7	161.0	169.0	185.5	181.6
Equity Options	30.5	27.7	28.3	22.2	24.6
Information Services	70.9	66.9	61.8	68.8	73.7
Technical Services	40.4	45.3	49.8	52.9	57.3
Austraclear	33.8	36.0	38.6	41.1	45.3
Other Revenue	16.1	15.6	15.6	15.6	16.4
Operating Revenues	617.6	610.4	617.4	658.3	700.7

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26

1. Income Statement (Continued)

	FY11	FY12	FY13	FY14	FY15
	$ Million	$ Million	$ Million	$ Million	$ Million
Staff	78.8	82.6	87.2	92.4	96.4
Occupancy	13.6	15.5	13.7	14.3	13.7
Equipment	21.3	21.6	22.4	23.0	24.0
Administration	13.9	13.5	15.6	16.3	17.2
Variable	4.5	3.7	3.8	4.3	5.1
ASIC Supervision Levy	3.4	4.2	3.5	3.3	3.7
Operating Expenses	135.5	141.1	146.2	153.6	160.1
EBITDA	482.1	469.3	471.2	504.7	540.6
Depreciation and Amortisation	23.3	27.6	30.4	33.8	38.6
EBIT	458.8	441.7	440.8	470.9	502.0
Net Interest Income	20.8	20.6	13.1	28.6	26.9
Net Interest on Participants’ Balances	16.7	19.9	31.0	31.3	32.3
Dividend Revenue	9.9	9.3	9.4	10.8	12.7
Interest and Dividend Income	47.4	49.8	53.5	70.7	71.9
Underlying Profit Before Tax	506.2	491.5	494.3	541.6	573.9
Income Tax Expense	(149.6)	(145.3)	(146.1)	(158.4)	(170.7)
Underlying Profit After Tax	356.6	346.2	348.2	383.2	403.2
Less Significant Items
Significant Items	(6.1)	(9.1)	-	-	(7.7)
Income Tax Credit on Significant Items	1.8	2.1	-	-	2.3
Statutory Profit After Tax	352.3	339.2	348.2	383.2	397.8

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27

2. Balance Sheet

	30 Jun 11	30 Jun 12	30 Jun 13	30 Jun 14	30 Jun 15
	$ Million	$ Million	$ Million	$ Million	$ Million
Assets
Cash and Available-For-Sale Financial Assets	3,318.6	3,696.2	4,496.2	5,015.6	4,879.0
Goodwill	2,262.8	2,262.8	2,317.6	2,317.6	2,317.6
Investments	213.9	162.1	185.6	250.5	376.8
Other Assets	387.2	406.1	369.3	425.1	485.2
Total Assets	6,182.5	6,527.2	7,368.7	8,008.8	8,058.6
Liabilities
Amounts Owing to Participants (including Commitments)	2,516.4	2,939.6	3,753.1	3,986.1	3,886.2
Borrowings	250.0	250.0	-	-	-
Other Liabilities	395.0	342.6	293.8	351.8	412.7
Total Liabilities	3,161.4	3,532.2	4,046.9	4,337.9	4,298.9
Equity
Capital	2,483.2	2,483.2	2,746.4	3,027.2	3,027.2
Retained Earnings	368.3	382.3	427.6	480.9	526.3
Reserves	169.6	129.5	147.8	162.8	206.2
Total Equity	3,021.1	2,995.0	3,321.8	3,670.9	3,759.7

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3. Key Financial Ratios

	FY11	FY12	FY13	FY14	FY15
Basic EPS (including significant items)	198.4c	190.6c	195.5c	198.5c	205.7c
Diluted EPS (including significant items)	198.4c	190.6c	195.5c	198.5c	205.7c
Underlying EPS (excluding significant items)	200.8c	194.6c	195.5c	198.5c	208.4c
Dividend per share – interim	90.2c	92.8c	87.9c	88.2c	92.3c
Dividend per share – final	93.0c	85.1c	82.3c	89.9c	95.1c
Statutory return on equity (including significant items)	12.0%	11.5%	11.5%	10.6%	10.8%
Underlying return on equity	12.1%	11.7%	11.5%	10.6%	10.9%
EBITDA / Operating revenue	78.1%	76.9%	76.3%	76.7%	77.1%
EBIT / Operating revenue	74.3%	72.4%	71.4%	71.5%	71.6%
Total expenses (including depreciation and amortisation) / Operating revenue	25.7%	27.6%	28.6%	28.5%	28.4%
Capital expenditure ($m)	$50.2	$39.1	$38.9	$43.2	$44.4
Net tangible asset backing per share	$4.01	$3.85	$5.04	$6.53	$6.97
Net asset backing per share	$17.25	$17.10	$18.05	$18.96	$19.42
Shareholders’ equity as a % of total assets (excluding participants’ balances)	82.4%	83.5%	91.9%	91.3%	90.1%
Shareholders’ equity as a % of total assets (including participants’ balances)	48.9%	45.9%	45.1%	45.8%	46.7%
Share price at end of period – 30 June	$29.98	$29.36	$33.07	$35.64	$39.90
Ordinary shares on issue at end of period	175,136,729	175,136,729	184,066,764	193,595,162	193,595,162
Weighted average number of ordinary shares¹	177,534,497	177,916,677	178,068,323	193,022,315	193,413,893
Market value of ordinary shares on issue ($m) – 30 June	$5,333	$5,223	$6,087	$6,900	$7,724
Market to book ratio	1.77	1.74	1.83	1.88	2.05
Full-time equivalent permanent staff
- number at period end	502	505	529	526	515
- average during the period	505	502	515	534	524

¹ Weighted average number of ordinary shares used to calculate EPS

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4.1 Listings and Issuer Services

	FY11	FY12	FY13	FY14	FY15
Total domestic market capitalisation ($bn) – period end	$1,349	$1,186	$1,347	$1,552	$1,612
Total number of listed entities (includes all stapled entities) - period end	2,247	2,211	2,185	2,192	2,220
Number of new listings	160	99	82	107	120
Average annual listing fee	$26,086	$27,388	$27,463	$28,333	$31,859
Average initial listing fee	$81,865	$63,160	$87,139	$166,786	$174,080
Average fee per $m of secondary capital	$759	$851	$1,026	$1,002	$854
Initial capital raised ($m)	$29,387	$10,187	$9,908	$27,659	$38,916
Secondary capital raised ($m)	$33,745	$32,558	$32,448	$33,378	$38,787
Other secondary capital raised including scrip-for-scrip ($m)	$24,947	$7,850	$4,027	$4,985	$11,170
Total capital raised (including other) ($m)	$88,079	$50,595	$46,383	$66,022	$88,873
Number of new warrant series quoted	2,822	7,113	6,690	4,206	2,903
Total warrant series quoted	2,409	4,743	5,140	3,564	3,050
Number of CHESS holding statements issued (m)	14.1	11.1	11.1	11.8	13.1

Total capital raised (including other) ($bn)

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52.7
50.3
38.6
35.4 36.7
28.5 29.3
26.2
22.1
20.2
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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4.2 Cash Market

	FY11	FY12	FY13	FY14	FY15
Trading days	253	253	252	253	254
Total cash market trades ('000)	144,321	165,806	174,750	181,861	190,647
Average daily cash market trades	570,440	655,359	693,454	718,817	750,578
Open trading ($bn)	$803.513	$717.882	$645.161	$612.491	$698.315
Auctions trading ($bn)	$156.315	$147.213	$147.418	$157.338	$193.292
Centre Point ($bn)	$4.700	$19.789	$36.953	$61.135	$74.933
Trade reporting ($bn)	$374.612	$300.443	$216.420	$177.933	$145.909
Total cash market value ($bn)	$1,339.140	$1,185.327	$1,045.952	$1,008.897	$1,112.449
Average daily on-market value ($bn)	$3.812	$3.498	$3.292	$3.284	$3.805
Average daily value (including trade reporting) ($bn)	$5.293	$4.685	$4.151	$3.988	$4.380
Average trade size ($)	$9,279	$7,149	$5,985	$5,548	$5,835
Total billable value ($bn)	$1,300.726	$1,161.573	$1,024.227	$989.760	$1,092.799
Average cash market trading, clearing and settlement fee per trade	$0.93	$0.75	$0.66	$0.64	$0.66
Average fee per $1,000 of value traded (cents)¹	10.0	10.5	11.0	11.6	11.3
Average fee per dollar of value (bps)	1.00	1.05	1.10	1.16	1.13
Velocity (total value / average market capitalisation)²	97%	97%	86%	78%	82%
Number of dominant settlement messages (m)	16.8	16.1	15.4	15.2	15.7

Average daily on-market value ($bn)

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3.942 4.131
3.689 3.729 3.257 3.651 3.208 3.365 3.495
2.949
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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¹ For every $1,000 of value ASX earns 11.3 cents inclusive of trading, clearing and settlement for both sides of the transaction

31

² Total value transacted on all venues

4.3 Equity Options

	FY11¹	FY12	FY13	FY14	FY15
Trading days (exchange traded options)	253	253	252	253	254
Equity options (‘000)	153,553	151,619	145,531	116,343	109,546
Index options and futures (‘000)	7,016	12,125	11,762	8,249	10,958
Grains futures and options on futures (‘000) (transferred to ASX 24 platform in Oct 11)	483	154	-	-	-
**Total contracts (‘000)1 **	161,052	163,898	157,293	124,592	120,504
Average daily derivatives contracts2	636,570	647,819	624,179	492,460	474,426
Average fee per derivatives contract2	$0.19	$0.17	$0.18	$0.18	$0.20

Equity options average daily contracts (based on current contract size)

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676,384 671,455
623,230 623,855 624,518
598,901
485,055 500,287 493,843
454,070
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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2 Size of contracts reduced in May 2011

4.4 Futures

	FY11	FY12	FY13	FY14	FY15
Trading days (futures and options)	256	256	255	256	256
Total contracts - futures ('000)
ASX SPI 200	10,506	11,811	10,259	9,715	10,301
90 day bank bills	20,729	21,652	25,866	25,903	28,706
3 year bonds	38,832	42,503	47,499	47,886	49,717
10 year bonds	15,230	17,220	21,211	25,520	29,498
30 day interbank cash rate	6,195	5,334	4,780	3,517	3,678
Agricultural	7	288	354	181	135
Electricity	210	183	168	165	224
Other¹	1	5	19	20	107
NZD 90 day bank bills	1,694	1,597	1,176	1,157	1,394
Total futures	93,404	100,593	111,332	114,064	123,760

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¹ Includes VIX and sector indices

33

4.4 Futures (Continued)

	FY11	FY12	FY13	FY14	FY15
Total contracts - options on futures ('000)
ASX SPI 200	379	477	349	473	454
90 day bank bills	52	25	7	4	-
3 year bonds	562	347	526	416	245
Overnight 3 year bonds	2,039	1,029	1,914	1,523	896
Intra-day 3 year bonds	1,504	978	1,443	1,527	927
Other	28	30	37	47	59
Total options on futures	4,564	2,886	4,276	3,990	2,581
Total futures and options on futures contract volume ('000)	97,968	103,479	115,608	118,054	126,341
Daily average contracts - futures and options	382,688	404,215	453,365	461,148	493,520
Average fee per contract - futures and options	$1.45	$1.56	$1.46	$1.57	$1.44
OTC Markets
Total notional cleared value¹ ($bn)	-	-	-	$124.413	$805.869

Futures and options average daily contracts

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509,194 523,776
453,007 469,548 464,196
423,325 396,494 412,058 398,834
343,302
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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1 Cleared notional value is double-sided

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4.5 Information and Technical Services

	FY11	FY12	FY13	FY14	FY15
Technical Services (number at period end)
Liquidity access
ASX sessions	1,737	1,737	1,526	1,431	1,185
ASX gateways	321	302	248	233	207
ASX liquidity cross connects	71	75	70	61	55
ASX 24 gateways	431	352	272	241	228
ASX ITCH access	N/A	N/A	24	31	31
ASX OUCH access	N/A	N/A	19	31	44
ASX 24 liquidity cross connects	N/A	154	221	297	357
ASX 24 ITCH access	N/A	N/A	16	25	36
Community and connectivity
ASX Net connections	134	125	140	122	126
ASX Net service feeds	189	270	356	356	358
Australian Liquidity Centre service connections	N/A	110	415	622	679
Application services
ASX trader workstations / ASX Best terminals	743	609	491	318	277
Hosting
Australian Liquidity Centre cabinets	N/A	76	117	142	188
Other data centre cabinets	68	8	7	7	8
Information Services
ASX market data terminals – monthly average1	67,580	56,727	49,964	66,701	74,793
ASX 24 market data terminals – monthly average1	18,616	19,576	18,829	18,497	17,824

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1 New billing methodology applied from FY14, impacting on the number of terminals recorded

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4.6 Austraclear

	FY11	FY12	FY13	FY14	FY15
Settlement days	253	253	252	253	254
Transactions ('000)
Cash transfers	613	616	587	600	602
Fixed interest securities	638	733	763	800	774
Discount securities	237	217	183	162	157
Foreign exchange	31	22	21	21	22
Other	12	11	12	10	9
Total transactions	1,531	1,599	1,566	1,593	1,564
Average daily settlement volume	6,052	6,319	6,214	6,298	6,156
Securities holdings (monthly average $bn)	$1,195.4	$1,292.3	$1,374.5	$1,475.5	$1,671.5
Securities holdings (period end $bn)	$1,242.7	$1,330.9	$1,406.8	$1,571.8	$1,752.5
Average settlement and depository fee (including portfolio holdings) per transaction (excludes registry services revenue)	$13.15	$13.54	$14.01	$14.18	$14.88

Austraclear average daily settlement volume

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6,208 6,282 6,357 6,432 6,287 6,310 6,365
5,905 6,005 5,956
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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4.7 CCP Participant Collateral Balances

	FY11	FY12	FY13	FY14	FY15
	$ Million	$ Million	$ Million	$ Million	$ Million
Balances at period end
ASX Clear – initial margins	290.6	254.5	561.4	549.8	673.7
ASX Clear (Futures) – initial margins House	495.3	686.6	907.0	849.3	746.0
ASX Clear (Futures) – initial margins Client	1,280.0	1,574.7	1,866.4	2,201.3	2,067.7
ASX Clear (Futures) – additional and excess	368.0	337.7	343.8	185.7	198.8
Total margins held on balance sheet – (excluding commitments)	2,433.9	2,853.5	3,678.6	3,786.1	3,686.2
Average daily margin balance during the period (excluding commitments)	2,419.3	2,581.7	3,523.2	3,716.4	3,915.5
ASX Clear – guarantees and equity collateral held off balance sheet	4,210.8	3,907.4	3,884.7	4,305.0	3,641.2

Total margins held on balance sheet ($bn) (at period end)

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3.9
3.8 3.8
3.7 3.7
3.4
3.0
2.9
2.5
2.4
1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15
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5. Free Cash Flow Summary

	FY11	FY12	FY13	FY14	FY15
	$ Million	$ Million	$ Million	$ Million	$ Million
ASX Group cash
Total cash and short-term investments	3,318.6	3,696.1	4,496.2	5,015.6	4,879.0
Less participants’ margins and cash commitments	(2,516.4)	(2,939.6)	(3,753.1)	(3,986.1)	(3,886.2)
ASX Group own cash reserves	802.2	756.5	743.1	1,029.5	992.8
Less specific own cash allocations	(558.3)	(558.3)	(558.3)	(768.3)	(768.3)
Available free cash	243.9	198.2	184.8	261.2	224.5
Free cash flow
Free cash flow at period open	168.3	243.9	198.2	184.8	261.2
Add:
Cash generated from business activities	381.3	327.6	368.2	422.9	424.1
Cash from dividend reinvestment plans	45.8	-	-	-	-
Cash from increase/(decrease) in borrowings	-	-	(250.0)	-	-
Cash from issue of shares	-	-	261.6	277.9	-
Less:
Cash used for payment of dividends	(303.6)	(325.2)	(302.9)	(329.9)	(352.4)
Cash used for capital investments	(47.1)	(41.0)	(36.7)	(42.3)	(41.5)
Cash used for employee share plan	(0.8)	-	-	-	-
Increase in inter-Group liquidity commitments	-	-	-	(10.0)	-
Additional equity designated to support the clearing default fund	-	-	-	(200.0)	-
Payments for investments	-	(7.1)	(53.6)	(42.2)	(66.9)
Free cash flow at period end	243.9	198.2	184.8	261.2	224.5

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38

6. Capital Supporting Clearing and Settlement

	FY11	FY12	FY13	FY14	FY15
	$ Million	$ Million	$ Million	$ Million	$ Million
ASX Group shareholders’ equity	3,021.1	2,995.0	3,321.8	3,670.9	3,759.7
Capital supporting clearing and settlement entities
ASX Clear – default fund contributed by ASX (held in ASX Clear)	150.0	150.0	250.0	250.0	250.0
ASX Clear (Futures) – default fund contributed by ASX (held in ASX Clear (Futures))	100.0	100.0	250.0	450.0	450.0
Business risk capital1(period end)	234.9	236.8	283.7	297.6	309.5
Total paid in clearing default fund
ASX Clear	250.0	250.0	250.0	250.0	250.0
ASX Clear (Futures)	370.0	370.0	370.0	650.0	650.0

The increase in the default funds contributed by ASX (from FY13) due to:

• Increased ASX capital contribution replacing previous non-recourse debt facility

• Increase in the size of default fund required to meet higher regulatory standards, ‘Cover 2’

1Business risk capital comprises the aggregate of each clearing and settlement entity held at Group level

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7. Cash Market Clearing and Settlement Income Statements

	Cash Market	Cash Market	Cash Market	Cash Market
	Clearing	Clearing	Settlement	Settlement
	FY15	FY14	FY15	FY14
	$ Million	$ Million	$ Million	$ Million
Operating Revenues	47.5	43.5	45.1	43.5
Operating Expenses	10.7	10.5	12.5	12.1
EBITDA	36.8	33.0	32.6	31.4
Depreciation and Amortisation	2.1	1.8	0.2	0.2
EBIT	34.7	31.2	32.4	31.2
Interest Income	4.6	5.0	2.7	2.8
Profit Before Tax	39.3	36.2	35.1	34.0
Income Tax Expense	(11.8)	(10.8)	(10.5)	(10.2)
Profit After Tax	27.5	25.4	24.6	23.8
Economic Profit after Capital Charge	5.6	3.7	9.9	9.6
EBITDA Margin	77%	76%	72%	72%
Total Capital	218.1	215.8	140.9	135.8
Return on Equity	12.6%	11.8%	17.5%	17.5%

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41