ASX LIMITED — Annual Report 2018

Sep 25, 2018

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26 September 2018

Australian Securities and Investments Commission ASX Market Announcements Office Mr Oliver Harvey ASX Limited Senior Executive Leader, Financial Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000

CHAIRMAN’S AND CEO’S LETTER TO SHAREHOLDERS – ASX 2018 FINAL DIVIDEND

Attached is a letter from ASX’s Chairman and the Managing Director and CEO regarding the ASX 2018 final dividend.

Daniel Csillag Company Secretary

Further enquiries:

Media

Matthew Gibbs General Manager, Media and Communications

T +61 2 9227 0218

M 0411 121 219

Analysts/Investor Relations

Josie Ashton Head of Investor Relations

• T +61 2 9227 0646

• M 0416 205 234

• E matthew.gibbs@asx.com.au E josie.ashton@asx.com.au

20 Bridge Street Sydney NSW 2000

PO Box H224 Customer service 13 12 79 Australia Square NSW 1215 asx.com.au

ASX Limited ABN 98 008 624 691

ASX Limited ABN 98 008 624 691

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Letter to Shareholders Full-Year 2018

Operating revenue ($m)

26 September 2018

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822.7
764.1
746.3
700.7
658.3
FY14 FY15 FY16 FY17 FY18
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Dear ASX Shareholder,

The 2018 financial year (FY18) was another strong year for ASX. Each of our four main businesses grew, with the overall performance driven by higher capital raisings and increased futures trading.

Of particular interest to shareholders among the highlights were:

• 1) A 7.2% increase in total dividends paid compared to the prior financial year, underpinned by year-on-year revenue growth of 7.7%, which was the highest since FY10

• 2) Significant progress on executing our Stronger Foundations program, which is enhancing ASX’s core operating capabilities to ensure ongoing resilience

Net profit after tax ($m)

• 3) Positive results from our growth initiatives, which are positioning our company for long-term success.

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445.1
426.2 434.1
397.8
383.2
FY14 FY15 FY16 FY17 FY18
Underlying profit in FY18 $465.3 million, FY15 $403.2 million
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Dividend and financial highlights

ASX is paying a final dividend of 109.1 cents per share fully franked for the six-month period to 30 June 2018, up 9.3%. This brings total FY18 dividends to 216.3 cents per share and is consistent with ASX’s policy of paying out 90% of underlying profit in dividends.

Other FY18 financial results[†] :

• Statutory profit after tax $445.1 million, up $11.0 million, or 2.5% on FY17

• Underlying profit after tax $465.3 million, up $31.2 million, or 7.2% (excludes a non-cash significant item)

Dividends per share (cents)

• Operating revenue $822.7 million, up $58.6 million, or 7.7%

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216.3
198.1 201.8
187.4 109.1
178.1
99.0 99.8
95.1
89.9
99.1 102.0 107.2
88.2 92.3
FY14 FY15 FY16 FY17 FY18
Interim Final
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• Operating expenses $195.5 million, up $14.6 million, or 8.0% (in line with guidance)

• Statutory earnings per share (EPS) 230.0 cents, up 2.4%, and underlying EPS 240.4 cents, up 7.1%

• Capital expenditure $54.1 million, reflecting continued investment in strengthening ASX’s technology capabilities and growth initiatives.

† Revenue and expenses as per the Group segment reporting.

ASX Limited ABN 98 008 624 691

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Building Stronger Foundations

Our Stronger Foundations program is built on earning and retaining the trust and confidence of our customers, shareholders, employees, regulators and the wider community. It’s an investment in the operation and integrity of our core activities, which are critical to our future success. It’s a multi-year program, stretching across ASX’s entire business. Achievements in FY18 included:

• Adopting a vision to be the world’s most respected financial marketplace, which reflects our global outlook and commitment to operate from a foundation of respect, trust and integrity

• Advancing the upgrade of our infrastructure to ensure we have contemporary technology that delivers richer, timelier data and stronger operational functionality and resilience. This includes replacing our CHESS post-trade system with distributed ledger technology (DLT), upgrading our secondary data centre to match the sophistication of the Australian Liquidity Centre, and enhancing the performance of ASX Net, our external communications network

• Evolving our rules and guidance for listed companies to ensure standards are kept high and the market remains attractive to issuers and investors, both local and offshore.

Investing for the future

ASX is accelerating its investment in the activities that deliver our company’s core earnings and which enable innovation and growth. We are confident that the increased investment will deliver benefits to ASX and its shareholders, and is supported by two key factors:

• Firstly, Australia’s large and deepening pool of investible assets is driving demand for the listing, trading, clearing, settlement, technical and data services ASX provides to the Australian economy. A stronger, more versatile and contemporary operating platform will allow ASX to better meet this growing demand

Our upcoming AGM

ASX’s 2018 Annual General Meeting (AGM) will be held on 4 October 2018 at 10am (AEST) in the ASX Auditorium, lower ground floor, 18 Bridge Street, Sydney. Shareholders are encouraged to attend and vote. Those shareholders unable to attend may still vote directly or appoint a proxy to act on their behalf. Voting instructions are set out in ASX’s 2018 AGM Notice of Meeting. The meeting will be webcast live on our website: www.asx.com.au.

As advised in the Notice of Meeting, your Chairman has decided, after 12 years as a director and six years as ASX Chairman, that it will be his final term if he is re-elected at the AGM. ASX has a capable and experienced Board, and succession planning has commenced to ensure we retain the right skills to realise ASX’s vision.

• ASX’s complete full-year results materials and the 2018 Annual Report are available at: www.asx.com.au/about/investor-relations.htm

• A webcast of ASX’s 2018 AGM will be available at: www.asx.com.au/about/annual-general-meeting.htm

• If you would like to ask questions of the ASX Board or management please email: company.secretariat@asx.com.au

Thank you for your support.

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Rick Holliday-Smith Chairman

Dominic Stevens Managing Director and Chief Executive Officer

• Secondly, the next few years will be transformational for our customers and the broader financial services industry. By accelerating the investment in our technology, ASX will be wellplaced to leverage its infrastructure to provide new services in areas such as DLT, data and analytics, and artificial intelligence.

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ASX is proud to continue to give its shareholders the chance to support ShareGift Australia. ShareGift is a not-for-profit organisation that allows shareholders to sell shares in any listed company free of brokerage costs and donate the proceeds to charity.

ASX has been a supporter since ShareGift Australia began in 2007. ASX reimburses to brokers ASX fees on ShareGift transactions and promotes ShareGift on CHESS statements. As at 30 June 2018, ShareGift Australia had donated over $1.6 million to more than 470 charities across a range of causes, thanks to the generosity of shareholders.

More information on ShareGift Australia can be found at: www.sharegiftaustralia.org.au. If you are interested, a ShareGift Share Sale Donation Form is enclosed for your consideration and should be returned to ShareGift at the address shown on the form. Please contact ShareGift if you have any queries on: 1300 731 632 or: info@sharegiftaustralia.org.au.

This is a voluntary initiative for those who wish to sell their shares and donate the proceeds to charity. It is not a recommendation to sell shares or a recommendation regarding a normal share sale facility. If you do not wish to participate, you do not need to do anything.