ASX LIMITED — Interim / Quarterly Report 2016

Feb 10, 2016

Half-Year 2016 Results Presentation

ASX Limited Elmer Funke Kupper Peter Hiom 11 February 2016

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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 (11 February 2016). 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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Financial Results 1H16

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Revenues Expenses EBITDA NPAT EPS DPS
$376.2m $85.1m $291.1m $213.1m 110.2c 99.1c
7.9% (4.4%) 8.9% 7.3% 7.3% 7.4%
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Positive revenue growth of 7.9%

• Growth in Listings, Trading Services and Post-Trade Services

• Derivatives and OTC Markets flat with fee reductions in futures offsetting volume growth

• Revenue reporting aligned to four main businesses under new ASX management structure

Expense growth of 4.4%

• Acceleration of investment in post-trade services

• FY16 guidance expense growth approximately 5.5%

Capital expenditure $18.7 million

• FY16 capital expenditure guidance approximately $50 million

• Trading and risk management platform projects underway with delivery targeted for CY16

• Next phase will focus on post-trade services, including potential use of distributed ledger technology

• Initial investment in Digital Asset Holdings of $14.9 million – 5% holding and warrant

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

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Financial Results 1H16 (Continued)

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Revenues Expenses EBITDA NPAT EPS DPS
$376.2m $85.1m $291.1m $213.1m 110.2c 99.1c
7.9% (4.4%) 8.9% 7.3% 7.3% 7.4%
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Balance sheet and regulatory settings

• Strong balance sheet; AA- long-term credit rating from S&P

• Compliance with Financial Stability Standards on track

• Distributed ledger technology could materially change the clearing and settlement processes in the equity market, delivering significant benefits to users and avoiding investment in legacy infrastructure

Investment in strategic positioning

• Significant investment in infrastructure – opportunity for innovation in trading and post-trade services

• Products and services that give investors flexibility and choice

• Higher customer engagement and improved service delivery

• Management responsibilities aligned with business priorities

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

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Income Statement

	1H16 $m	1H15 $m	% Variance
Operating Revenues	376.2 348.7 7.9%
Operating Expenses	85.1 81.4 (4.4%)
EBITDA	291.1 267.3 8.9%
Depreciation and Amortisation	20.8 18.6 (12.2%)
EBIT	270.3 248.7 8.7%
Interest and Dividend Income	33.7 34.4 (2.0%)
Profit Before Tax	304.0 283.1 7.4%
Income Tax Expense	(90.9) (84.5) (7.6%)
Profit After Tax	213.1 198.6 7.3%
EBITDA Margin	77.4% 76.6%

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

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Business Structure from 1 July 2015

				Deputy CEO (Peter Hiom)1
Listings and				Trading Equities			Derivatives and
Issuer Services				Services Post-Trade			OTC Markets
(Max Cunningham)				(David Raper)1 (Cliff Richards)			(Helen Lofthouse)1
Scope			Scope Scope			Scope
• Listings			•	Equities trading • Equities Clearing		•	Futures
• Issuer Services			• •	Information Services Technical Services • Equities Settlement • Post-trade innovation/ distributed ledger		• • •	Exchange Traded Options OTC Clearing Collateral Management
				technology		•	Austraclear
Position			Position Position				Position
• Leading listings and			•	Trade execution services • Central clearing of cash		•	Futures and options
capital raising venue				(lit market, Centre Point) equity products			across interest rate,
• ‘Investment Supermarket’ • Investor relations services for listed companies			• •	Technical and co- location services Information and data analytic services • Netting and settlement of cash equities • Sub-register for equity products		• •	equity, energy markets Clearing of exchange traded and OTC products Settlement and depository for debt products
1H16 Revenue $105.6m				1H16 Revenue $91.4m 1H16 Revenue $51.0m			1H16 Revenue $126.8m

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1. Members of Group Executive Committee

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Revenue Performance

	1H16 $m	1H15 $m	% Variance	% of Group Revenue
Listings and Issuer Services	105.6 91.3 15.6% 28%
Listings	82.4 70.9 16.3%
Issuer Services	23.2 20.4 13.2%
Trading Services	91.4 84.6 8.1% 24%
Cash Market Trading	20.3 17.7 14.9%
Information Services	40.6 36.7 10.8%
Technical Services	30.5 30.2 1.0%
Equity Post-Trade Services	51.0 45.6 11.7% 14%
Cash Market Clearing	27.2 23.1 17.3%
Cash Market Settlement	23.8 22.5 6.0%
Derivatives and OTC Markets	126.8 126.8 - 34%
Equity Options	11.3 12.8 (11.4%)
Futures and OTC Clearing	91.6 90.4 1.3%
Austraclear	23.9 23.6 1.5%
Other Revenue	1.4 0.4 185.2%
Operating Revenues	376.2 348.7 7.9%

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Operating revenues as per the Group segment reporting Variance expressed favourable / (unfavourable)

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Revenue Movement ($ Million)

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1.0 376.2
5.4 0.0
6.8
14.3
348.7
Up Up Up Flat Large
15.6% 8.1% 11.7%
Operating Revenues Up 7.9%
1H15 Listings Trading Equity Post Derivatives and Other Revenue 1H16
and Issuer Services Trade Services OTC Markets
Services
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Operating revenues as per the Group segment reporting Variance expressed favourable / (unfavourable)

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Activity Levels

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Total Capital Raised ($ Billion)
54.6
50.3
38.6
36.7
29.3
1H14 2H14 1H15 2H15 1H16
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Futures - Average Daily Contracts ('000)
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524
488
453 470 464
1H14 2H14 1H15 2H15 1H16
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Cash Market Trading
ASX Average Daily Value On-Market ($ Billion)
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4.131 4.073
3.495
3.365
3.208
1H14 2H14 1H15 2H15 1H16
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Equity Options - Average Daily Contracts ('000)

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485 500 494
454
387
1H14 2H14 1H15 2H15 1H16
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ASX Group Priorities

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

Investment Supermarket

• Grow listings franchise

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

• Upgrade technology infrastructure, including multi-currency

• World-Class Infrastructure • Be global leader in post-trade innovation • Build global connectivity – Chicago, London, Singapore, HK

• Deepen customer engagement across all services

• •

• Outstanding Experience Deliver 24 hour service to local and global clients • Strengthen alignment through fee reductions and rebates

• Regulatory Settings Employer of Choice

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Listings and Issuer Services

Highlights

Revenue $105.6 million, up 15.6%

• 77 IPOs; IPO capital $13.5 billion, down 28.9%

• Secondary capital $41.1 billion, up 109.6%, including $18.1 billion from ‘big four’ Australian banks

• Number of holding statements up 10% on pcp

Areas of Focus

Grow Listings Franchise

• New Zealand – simplified dual listings process implemented; 42 NZ entities listed

• Tech sector – 22 listings¹ in 1H16, 146 entities listed

• Exchange-traded products (ETPs) – 171 ETPs listed totalling $21.4 billion

Expand ‘Investment Supermarket’

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Total Capital Raised
60
50
40
30
20
10
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
Secondary Capital IPO Capital Scrip-for-Scrip
$ Billion
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• Domestic equities

• International equities

• Government bonds

• Corporate bonds

• ETFs and listed investment companies

• Unlisted managed funds through mFund service – 41 fund managers offering 133 funds via 15 brokers; NAB connected in December 2015

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11

1. Includes IPOs and backdoor listings

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Trading Services (1/2)

Highlights

Revenue $91.4 million, up 8.1%

• Cash Market Trading $20.3 million, up 14.9%

• Total on-market value traded per day up 18.6%

Areas of Focus

Cash Market Trading

• On-market trading market share 88.4% (89.9% pcp)

• ASX Auctions and Centre Point accounted for 26.3% of ASX on-market value, 43.9% of trading revenue

• ASX on-market trading up 16.6%

• Revenue sharing scheme $1.0 million, pcp $0.8m

ASX On-Market Value Traded

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600
500
400
300
200
100
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
Open Trading Auctions Trading Centre Point
Value $ Billion
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• Trading platform replacement

Auctions and Centre Point Value Traded

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160
140
120
100
80
60
40
20
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
Auctions Centre Point
Value $ Billion
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Trading Services (2/2)

Highlights

Information Services $40.6 million, up 10.8%

• Fee changes and higher index royalties

Technical Services $30.5 million, up 1.0%

Areas of Focus

Information Services

• Expansion of data and analytic services; appointment of dedicated development team in 2H16

• Hosting: 219 cabinets (179 pcp)

Technical Services

• Community and Connectivity: 8.3% increase in ALC connections offset by decrease in ASX Net connections

• Liquidity Access: Higher low latency data and order entry access, offset by lower futures cross connections and ASX sessions

• Application services revenue impacted by introduction of minimum 3 month period for futures cross connections and ASX gateways

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

Revenue Mix Technical Services

• ASX Net global Hong Kong hub established

Hosting Community and $4.0m Connectivity up 13.0% $8.5m up 3.9% Liquidity Application Access Services $15.3m $2.7m down 0.8% down 11.6%

• New order entry terminal development will be aligned to new trading platform in CY16

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Equity Post-Trade Services

Highlights

Revenue $51.0 million, up 11.7%

• Clearing $27.2 million, up 17.3%

• Value cleared up 18.4%

• Revenue sharing scheme $1.7 million, pcp $1.1m

• Settlement $23.8 million up 6.0%

• Dominant settlement messages up 6.7%

• Revenue sharing scheme $0.8 million, pcp $0.3m

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Billable Value Cleared
600
500
400
300
200
100
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
Value $ Billion
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Areas of Focus

• T+2 settlement on track for March 2016 delivery

• Investment in distributed ledger technology

• Significant potential benefits to issuers, investors, intermediaries and regulators

• Investment in Digital Asset Holdings

• During development phase ASX will

• Operate CHESS as normal

• Retain revenue sharing scheme for clearing and settlement

• Reduce clearing fees by 10% from 1 July 2016 (impact approximately $5 million pa)

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Opportunity for Post-Trade Innovation

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Investors
Consolidated view of holdings
Issuers/listed companies Choice of real-time access to securities/cash
Improved shareholder analytics Real-time dividend payments, voting
Streamlined/automated corporate actions Simplified tax preparation
Electronic AGMs Recording of sophisticated investor requirements
Security
Government, regulators Trust Intermediaries
Improved audit trail Risk reduction
Improved analytics Efficiency Back-office cost reduction –
reconciliations, KYC, AML, FATCA
Timeliness
ASX Service innovators/Fintech
Lower risk and capital requirements Data analytics
Tailored liquidity and settlement services Wealth management, tax reporting
Data, issuer and investor services
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Derivatives and OTC Markets

Highlights

Revenue $126.8 million, flat

• Futures and OTC $91.6 million, up 1.3%

• Contracts traded up 5.1%

• Impact of fee reduction $4.6 million

• Equity Options $11.3 million, down 11.4%

Areas of Focus

Product Development

  - Launched 20 Year Bond Futures, mini SPI, East Coast Wheat futures/options, Deliverable Swap Futures, and TORESS options

  - Weekly/Serial ETOs CY16

  - Gold futures 1H17

• Contracts traded down 21.7%

• Positive impact from trading and product mix

• Austraclear $23.9 million, up 1.5%

Distribution

• Opened Hong Kong office focused on Asian sales

• Trading platform replacement

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Futures Volumes
70
60
50
40
30
20
10
0
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
Contracts Million
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• Yieldbroker expansion into Asia

Clearing and Risk Management Services

• OTC clearing $817.4 billion in 1H16 ($101.7 billion pcp), six active clients

• Collateral Management average balance $4.3 billion

Austraclear

• Average balances up 12.2% to $1.8 trillion

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Futures and OTC Clearing Movement

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Revenue Movement ($ Million)
0.7
5.1 (4.6)
91.6
90.4
1H15 Volume and Lower Higher 1H16
Product Mix Prop Rebates Fee Reductions
• Tiered fee schedule introduced 1 October 2014
• Provides progressively lower fees to institutions as
their OTC volumes increase
•
1H16 fee reductions $7.6 million
• Impact in 2H16 will depend on clients reaching OTC
clearing thresholds, fee discounts could increase by
$4-5 million compared to 1H16
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OTC Notional Value Cleared ($ Billion)
207
188
137 136 [140 ] 137
118 121
102 104
71
62
43
17 15 [20 ]
2 5
• Notional value of OTC interest rate derivative
contracts cleared centrally was $817.4 billion 1H16
($101.7 billion pcp)
• Six active users
• Margin optimisation service to be launched in CY16
providing institutions the ability to maximise margin
offsets between Futures and OTC
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
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Interest and Dividend Income

	1H16 $m	1H15 $m	% Variance	Highlights • ASX Group net interest income down 24.4% from lower interest rates • Net interest on collateral balances up 20.1% ‒ Collateral balances average $4.3 billion ($3.8 billion pcp) ‒ Investment spread 37 bps (40 bps pcp) • Repositioning of portfolio in line with regulatory standards over next two years will lead to lower investment earnings Impact in FY16 not expected to be material • IRESS shareholding 19.2%
ASX Group Net Interest Income	11.3 14.9 (24.4%)
Net Interest Earned on Collateral Balances	17.5 14.6 20.1%
Total Net Interest Income	28.8 29.5 (2.4%)
Dividend Income	4.9 4.9 0.6%
Interest and Dividend Income	33.7 34.4 (2.0%)

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Variance expressed favourable / (unfavourable)

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Expenses ($ Million)

Highlights

• Expenses up 4.4%

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85.1
81.4
78.7
77.2 76.4 34.4
31.5
32.2
30.0 31.2
49.9 50.7
47.2 46.5
45.2
1H14 2H14 1H15 2H15 1H16
Staff Other
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• Staff costs up 1.5%

• Higher staff and recruitment costs, partially offset by increased capitalisation

• Average headcount down 0.6% to 523 FTEs

• Other costs up 9.0%.

• Higher equipment and administration costs to support initiatives

• Higher variable costs driven by increase in CHESS holding statements

• FY16 operating expenses guidance approximately 5.5%

• Investment in resources to accelerate assessment of distributed ledger technology

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Expenses as per the Group segment reporting

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Capital Expenditure ($M)

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31.4
24.6
23.5
20.5
18.5 18.6 18.7
15.4
13.0
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
Normal ($93.9m) ALC (Data and Customer Support Centre $17.8m) Post-Trade ($55.4m)¹ Technology Transformation ($17.9m)²
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Highlights

• Focus on technology transformation program

• Guidance FY16 approximately $50 million

1. Post-trade $55.4m, includes new post-trade services $36.2 million and upgrades of existing platforms $19.2 million 2. Technology Transformation includes new trading platform, risk management and data analytics

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Post Balance Date Activity (to 5th February)

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(92.7%)
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Total Capital raised $0.3 billion January 2016

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7.5%
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Cash market trading Cash market trading (total market - all (ASX on-market) venues) $4.0 billion $5.3 billion Average value per day 7.6% Average value per day

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2.5%
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Futures trading 482,464 Daily average volume

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(22.3%)
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OTC clearing Equity options trading $258.0 billion 349,118 Total cleared Daily average volume notional value Large

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Financial Results 1H16

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Revenues Expenses EBITDA NPAT EPS DPS
$376.2m $85.1m $291.1m $213.1m 110.2c 99.1c
7.9% (4.4%) 8.9% 7.3% 7.3% 7.4%
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Positive revenue performance

• Growth in Listings, Trading Services and Post-Trade Services

• Derivatives and OTC Markets flat following fee reductions in futures

Expenses and capex

• FY16 expense guidance approximately 5.5%

• FY16 capital expenditure guidance approximately $50 million

Strong balance sheet and compliance with regulatory standards

• Distributed ledger technology could materially change the clearing and settlement processes in the equity market, delivering significant benefits to users and avoiding investment in legacy infrastructure

Investment in strategic positioning

• Significant investment in infrastructure – opportunity for innovation in trading and post-trade services

• Products and services that give investors flexibility and choice

• Higher customer engagement and improved service delivery

• Management responsibilities aligned with business priorities

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

22

Thank you

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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 Attribution

7. Cash Market Clearing and Settlement Income Statement

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1. Income Statement

	1H14	2H14	1H15	2H15	1H16
	$ Million	$ Million	$ Million	$ Million	$ Million
Annual Listing Fees	30.7	31.4	34.8	35.9	36.7
Initial Listing Fees	11.2	6.7	11.4	9.5	11.7
Subsequent Listing Fees	20.5	17.9	21.2	21.5	29.0
Other Listing Fees	4.4	4.2	3.5	5.5	5.0
Listings	66.8	60.2	70.9	72.4	82.4
Issuer Services	17.8	16.3	20.4	19.8	23.2
Listings and Issuer Services	84.6	76.5	91.3	92.2	105.6
Cash Market Trading	16.8	16.8	17.7	18.4	20.3
Information Services	33.9	34.9	36.7	37.0	40.6
Technical Services	27.6	28.0	30.2	29.9	30.5
Trading Services	78.3	79.7	84.6	85.3	91.4
Cash Market Clearing	21.8	21.5	23.1	24.2	27.2
Cash Market Settlement	21.9	21.1	22.5	22.0	23.8
Equity Post-Trade Services	43.7	42.6	45.6	46.2	51.0
Equity Options	10.0	12.2	12.8	11.8	11.3
Futures and OTC Clearing	89.8	95.7	90.4	91.2	91.6
Austraclear	21.7	21.7	23.6	24.2	23.9
Derivatives and OTC Markets	121.5	129.6	126.8	127.2	126.8
Other Revenue	1.2	0.6	0.4	1.1	1.4
Operating Revenue	329.3	329.0	348.7	352.0	376.2

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1.Income Statement (Continued)

	1H14	2H14	1H15	2H15	1H16
	$ Million	$ Million	$ Million	$ Million	$ Million
Staff	47.2	45.2	49.9	46.5	50.7
Occupancy	6.9	7.4	6.7	7.0	6.8
Equipment	11.6	11.4	11.8	12.2	13.1
Administration	7.3	9.0	8.4	8.8	9.9
Variable	2.3	2.0	2.8	2.3	3.1
ASIC Supervision Levy	1.9	1.4	1.8	1.9	1.5
Operating Expenses	77.2	76.4	81.4	78.7	85.1
EBITDA	252.1	252.6	267.3	273.3	291.1
Depreciation and Amortisation	16.3	17.5	18.6	20.0	20.8
EBIT	235.8	235.1	248.7	253.3	270.3
Net Interest Income	14.5	14.1	14.9	12.0	11.3
Net Interest on Participants’ Balances	16.4	14.9	14.6	17.7	17.5
Dividend Revenue	3.3	7.5	4.9	7.8	4.9
Interest and Dividend Income	34.2	36.5	34.4	37.5	33.7
Underlying Profit Before Tax	270.0	271.6	283.1	290.8	304.0
Income Tax Expense	(80.4)	(78.0)	(84.5)	(86.2)	(90.9)
Underlying Profit After Tax	189.6	193.6	198.6	204.6	213.1
Significant Items (Net of Tax)	-	-	-	(5.4)	-
Statutory Profit After Tax	189.6	193.6	198.6	199.2	213.1

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2. Balance Sheet

	31 Dec 13	30 Jun 14	31 Dec 14	30 Jun 15	31 Dec 15
	$ Million	$ Million	$ Million	$ Million	$ Million
Assets
Cash and Available-For-Sale Financial Assets	5,071.7	5,015.6	5,027.3	4,879.0	5,356.3
Goodwill	2,317.6	2,317.6	2,317.6	2,317.6	2,317.6
Investments	288.7	250.5	394.6	376.8	373.6
Other Assets	318.8	425.1	341.5	485.2	527.9
Total Assets	7,996.8	8,008.8	8,081.0	8,058.6	8,575.4
Liabilities
Amounts Owing to Participants (including Funded Commitments)	4,033.4	3,986.1	3,997.4	3,886.2	4,308.5
Other Liabilities	287.2	351.8	331.7	412.7	479.7
Total Liabilities	4,320.6	4,337.9	4,329.1	4,298.9	4,788.2
Equity
Capital	3,027.2	3,027.2	3,027.2	3,027.2	3,027.2
Retained Earnings	458.1	480.9	505.6	526.3	555.5
Reserves	190.9	162.8	219.1	206.2	204.5
Total Equity	3,676.2	3,670.9	3,751.9	3,759.7	3,787.2

	31 Dec 13	30 Jun 14	31 Dec 14	30 Jun 15	31 Dec 15
	$ Million	$ Million	$ Million	$ Million	$ Million
Assets
Cash and Available-For-Sale Financial Assets	5,071.7	5,015.6	5,027.3	4,879.0	5,356.3
Goodwill	2,317.6	2,317.6	2,317.6	2,317.6	2,317.6
Investments	288.7	250.5	394.6	376.8	373.6
Other Assets	318.8	425.1	341.5	485.2	527.9
Total Assets	7,996.8	8,008.8	8,081.0	8,058.6	8,575.4
Liabilities
Amounts Owing to Participants (including Funded Commitments)	4,033.4	3,986.1	3,997.4	3,886.2	4,308.5
Other Liabilities	287.2	351.8	331.7	412.7	479.7
Total Liabilities	4,320.6	4,337.9	4,329.1	4,298.9	4,788.2
Equity
Capital	3,027.2	3,027.2	3,027.2	3,027.2	3,027.2
Retained Earnings	458.1	480.9	505.6	526.3	555.5
Reserves	190.9	162.8	219.1	206.2	204.5
Total Equity	3,676.2	3,670.9	3,751.9	3,759.7	3,787.2

	31 Dec 13	30 Jun 14	31 Dec 14	30 Jun 15	31 Dec 15
	$ Million	$ Million	$ Million	$ Million	$ Million
Assets
Cash and Available-For-Sale Financial Assets	5,071.7	5,015.6	5,027.3	4,879.0	5,356.3
Goodwill	2,317.6	2,317.6	2,317.6	2,317.6	2,317.6
Investments	288.7	250.5	394.6	376.8	373.6
Other Assets	318.8	425.1	341.5	485.2	527.9
Total Assets	7,996.8	8,008.8	8,081.0	8,058.6	8,575.4
Liabilities
Amounts Owing to Participants (including Funded Commitments)	4,033.4	3,986.1	3,997.4	3,886.2	4,308.5
Other Liabilities	287.2	351.8	331.7	412.7	479.7
Total Liabilities	4,320.6	4,337.9	4,329.1	4,298.9	4,788.2
Equity
Capital	3,027.2	3,027.2	3,027.2	3,027.2	3,027.2
Retained Earnings	458.1	480.9	505.6	526.3	555.5
Reserves	190.9	162.8	219.1	206.2	204.5
Total Equity	3,676.2	3,670.9	3,751.9	3,759.7	3,787.2

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3. Ke Financial Ratios y

	1H14	2H14	1H15	2H15	1H16
Basic EPS (including significant items)	98.3c	100.2	102.7c	103.0	110.2c
Diluted EPS (including significant items)	98.3c	100.2	102.7c	103.0	110.2c
Underlying EPS (excluding significant items)	98.3c	100.2	102.7c	105.7	110.2c
Dividend per share – interim	88.2c	-	92.3	-	99.1
Dividend per share – final	-	89.9c	-	95.1	-
Statutory return on equity (including significant items)	10.5%	10.7%	10.8%	10.8%	11.4%
Underlying return on equity	10.5%	10.7%	10.8%	11.0%	11.4%
EBITDA / Operating revenue	76.5%	76.8%	76.6%	77.6%	77.4%
EBIT / Operating revenue	71.6%	71.5%	71.3%	71.9%	71.9%
Total expenses (including depreciation and amortisation) / Operating revenue	28.4%	28.5%	28.7%	28.1%	28.1%
Capital expenditure ($m)	$18.6	$24.6	$13.0	$31.4	$18.7
Net tangible asset backing per share	$6.60	$6.53	$6.97	$6.97	$7.12
Net asset backing per share	$18.99	$18.96	$19.38	$19.42	$19.56
Shareholders’ equity as a % of total assets (excluding participants’ balances)	92.8%	91.3%	91.9%	90.1%	88.8%
Shareholders’ equity as a % of total assets (including participants’ balances)	46.0%	45.8%	46.4%	46.7%	44.2%
Share price at end of period	$36.76	$35.64	$36.74	$39.90	$42.46
Ordinary shares on issue at end of period	193,595,162	193,595,162	193,595,162	193,595,162	193,595,162
Weighted average number of ordinary shares (excluding treasury shares)	192,818,390	193,022,315	193,413,893	193,413,893	193,413,893
Market value of ordinary shares on issue ($m)	$7,117	$6,900	$7,113	$7,724	$8,220
Market to book ratio	1.94	1.88	1.90	2.05	2.17
Full-time equivalent permanent staff – number at period end	533	526	523	515	534
Full-time equivalent permanent staff – average during the period	532	535	526	522	523

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4.1 Listing and Issuer Services

	1H14	2H14	1H15	2H15	1H16
Total domestic market capitalisation ($bn) – period end	$1,527	$1,552	$1,575	$1,612	$1,629
Total number of listed entities (includes all stapled entities) - period end	2,195	2,192	2,208	2,220	2,238
Number of new listings	69	38	71	49	77
Average annual listing fee	$13,966	$14,348	$15,752	$16,192	$16,381
Average initial listing fee	$162,261	$175,001	$160,588	$193,630	$152,508
Average fee per $m of secondary capital	$1,085	$921	$1,082	$706	$707
Initial capital raised ($m)	$17,817	$9,842	$18,956	$19,960	$13,477
Secondary capital raised ($m)	$16,373	$17,005	$17,746	$21,041	$35,597
Other secondary capital raised including scrip-for-scrip ($m)	$2,514	$2,471	$1,860	$9,310	$5,501
Total capital raised (including other) ($m)	$36,704	$29,318	$38,562	$50,311	$54,575
Number of new warrant series quoted	2,341	1,865	1,507	1,396	1,290
Total warrant series quoted	4,450	3,564	3,107	3,050	2,925
Number of CHESS holding statements issued (m)	6.5	5.3	6.7	6.4	7.4

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Total capital raised (including other) ($bn) 50.3 54.6
38.6
36.7
28.5 29.3
26.2
22.1
20.2
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
29
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4.2 Trading Services – Cash Market Trading

	1H14	2H14	1H15	2H15	1H16
Trading days	130	123	130	124	130
Total cash market trades ('000)	93,607	88,254	92,984	97,663	110,091
Average daily cash market trades	720,053	717,512	715,263	787,602	846,853
Open trading ($bn)	$313.211	$299.280	$326.180	$372.135	$390.115
Auctions trading ($bn)	$75.757	$81.581	$91.469	$101.823	$103.701
Centre Point ($bn)	$28.106	$33.029	$36.657	$38.276	$35.725
Trade reporting ($bn)	$94.835	$83.098	$72.258	$73.651	$75.727
Total cash market value ($bn)	$511.909	$496.988	$526.564	$585.885	$605.268
Average daily on-market value ($bn)	$3.208	$3.365	$3.495	$4.131	$4.073
Average daily value (including Trade reporting) ($bn)	$3.938	$4.041	$4.050	$4.725	$4.656
Average trade size ($)	$5,469	$5,631	$5,663	$5,999	$5,498
Total billable value ($bn)	$501.971	$487.789	$519.707	$573.092	$596.515
Average fee per dollar of value (bps)	1.16	1.17	1.18	1.08	1.15
Velocity (total value / average market capitalisation)1	80%	76%	80%	85%	92%

Average daily on-market value ($bn)

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4.131 4.073
3.729 3.257 2.949 3.651 3.208 3.365 3.495
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
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30

1. Total value transacted on all venues

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4.2 Tradin Services – Technical Services g

	1H14	2H14	1H15	2H15	1H16
Technical Services (number at period end)
Liquidity access
ASX sessions	1,423	1,431	1,277	1,185	1,141
ASX gateways	236	233	221	207	197
ASX liquidity cross connects	59	61	60	55	59
Futures gateways	249	241	230	228	222
ASX ITCH access	30	31	30	31	35
ASX OUCH access	30	31	45	44	56
Futures liquidity cross connects	261	297	353	357	288
Futures ITCH access	20	25	33	36	41
Community and connectivity
ASX Net connections	144	142	135	126	122
ASX Net service feeds	352	356	363	358	370
Australian Liquidity Centre service connections	545	622	689	679	746
Application services
ASX trader workstations / ASX Best terminals	393	318	283	277	268
Hosting
Australian Liquidity Centre cabinets	133	142	179	188	219
Other data centre cabinets	7	7	7	8	8

Information Services terminal numbers are no longer being reported. As more customers utilise enterprise wide agreements for data, the statistic is not a meaningful driver of Information Services revenue.

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31

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4.3 Equity Options

	1H14	2H14	1H15	2H15	1H16
Trading days	130	123	130	124	130
Single stock equity options (‘000)	59,170	57,173	58,515	51,031	44,050
Index options (‘000)	3,887	4,362	5,685	5,273	6,201
Total contracts (‘000)	63,057	61,535	64,200	56,304	50,251
Average daily options contracts	485,055	500,287	493,843	454,070	386,549
Average fee per options contract	$0.16	$0.20	$0.20	$0.21	$0.23

Options average daily contracts

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671,455
623,230 623,855 624,518
485,055 500,287 493,843
454,070
386,549
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
32
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4.3 Futures and OTC Markets

	1H14	2H14	1H15	2H15	1H16
Trading days	130	126	130	126	130
Total contracts - futures ('000)
ASX SPI 200	4,875	4,840	5,171	5,130	5,909
Mini-ASX SPI 2001	-	-	-	-	10
90 day bank bills	13,453	12,450	13,942	14,764	13,728
3 year bonds	23,486	24,400	24,117	25,600	23,708
10 year bonds	12,040	13,480	13,707	15,791	15,996
20 year bonds2	-	-	-	-	192
30 day interbank cash rate	2,339	1,178	1,169	2,509	1,817
Agricultural	115	66	88	47	75
Electricity	76	89	130	94	105
Other	9	11	19	88	83
NZD 90 day bank bills	571	586	523	871	898
Total futures	56,964	57,100	58,866	64,894	62,521

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1. Introduced 12 October 2015 2. Introduced 21 September 2015

33

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4.3 Futures and OTC Markets

	1H14	2H14	1H15	2H15	1H16
Total contracts - options on futures ('000)
ASX SPI 200	232	241	313	141	189
3 year bonds	153	263	108	137	137
Overnight 3 year bonds	719	804	496	400	249
Intra-day 3 year bonds	804	723	523	404	329
Other	19	32	39	20	16
Total options on futures	1,927	2,063	1,479	1,102	920
Total futures and options on futures contract volume ('000)	58,891	59,163	60,345	65,996	63,441
Daily average contracts - futures and options	453,007	469,548	464,196	523,776	488,009
Average fee per contract - futures and options	$1.53	$1.62	$1.50	$1.38	$1.44
OTC Markets
Total notional cleared value ($bn)1	$4.277	$120.135	$101.671	$704.198	$817.445

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Futures average daily contracts
509,194 523,776
453,007 469,548 464,196 488,009
396,494 412,058 398,834
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
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34

1. Cleared notional value is double-sided

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4.3 Austraclear

	1H14	2H14	1H15	2H15	1H16
Settlement days	130	123	130	124	130
Transactions ('000)
Cash transfers	312	288	299	303	300
Fixed interest securities	405	395	379	395	363
Discount securities	84	78	80	77	75
Foreign exchange	11	10	11	11	6
Other	5	5	5	4	2
Total transactions	817	776	774	790	746
Average daily settlement volume	6,287	6,310	5,956	6,366	5,736
Securities holdings (monthly average $bn)	$1,436.0	$1,515.0	$1,620.9	$1,722.2	$1,828.2
Securities holdings (period end $bn)	$1,468.9	$1,571.8	$1,692.8	$1,752.5	$1,849.0
Average settlement and depository fee (including portfolio holdings) per transaction (excludes registry services revenue)	$13.74	$14.64	$14.77	$14.98	$15.62

Austraclear average daily settlement volume

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6,273 6,357 6,432 6,287 6,310 6,366
6,005 5,956 5,736
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
35
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4.4 CCP Participant Collateral Balances

	1H14	2H14	1H15	2H15	1H16
	$ Million	$ Million	$ Million	$ Million	$ Million
Balances at period end
ASX Clear – initial margins	432.8	549.8	450.5	673.7	583.5
ASX Clear (Futures) – initial margins House	971.4	849.3	727.3	746.0	853.3
ASX Clear (Futures) – initial margins Client	1,987.5	2,201.3	2,407.1	2,067.7	2,495.7
ASX Clear (Futures) – additional and excess	482.2	185.7	212.5	198.8	176.0
Total margins held on balance sheet (excluding commitments)	3,873.9	3,786.1	3,797.4	3,686.2	4,108.5
Average daily margin balance during the period (excluding commitments)	3,919.7	3,716.4	3,571.1	3,915.5	4,136.0
ASX Clear – guarantees and equity collateral held off balance sheet	4,386.5	4,189.7	3,901.8	3,641.2	3,508.5

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

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4.1
3.7 3.9 3.8 3.8 3.7
3.4
3.0 2.9
1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16
36
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5. Free Cash Flow Summar y

	1H14	2H14	1H15	2H15	1H16
	$ Million	$ Million	$ Million	$ Million	$ Million
ASX Group cash
Total cash and short-term investments	5,071.7	5,015.6	5,027.3	4,879.0	5,356.3
Less participants’ margins and commitments – cash backed	(4,033.4)	(3,986.1)	(3,997.4)	(3,886.2)	(4,308.5)
ASX Group own cash reserves	1,038.3	1,029.5	1,029.9	992.8	1,047.8
Less specific own cash allocations	(758.3)	(768.3)	(768.3)	(768.3)	(768.3)
Available free cash	280.0	261.2	261.6	224.5	279.5
Free cash flow
Free cash flow at period open	184.8	280.0	261.2	261.6	224.5
Add:
Cash generated from business activities (including changes in fair value)	239.3	183.7	257.6	166.5	262.9
Cash from issue of shares	277.9	-	-	-	-
Less:
Cash used for payment of dividends	(159.2)	(170.8)	(173.9)	(178.5)	(183.9)
Cash used for capital investments	(20.6)	(21.7)	(16.4)	(25.1)	(24.0)
Additional equity designated to support the clearing default fund/CDN	(200.0)	(10.0)	-	-	-
Payments for investments	(42.2)	-	(66.9)	-	-
Free cash flow at period end	280.0	261.2	261.6	224.5	279.5

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6. Capital Attribution

	31 Dec 13	30 Jun 14	31 Dec 14	30 Jun 15	31 Dec 15
	$ Million	$ Million	$ Million	$ Million	$ Million
ASX Group shareholders’ equity	3,676.2	3,670.9	3,751.9	3,759.7	3,787.2
Goodwill	2,317.6	2,317.6	2,317.6	2,317.6	2,317.6
ASX Clear – default fund contributed by ASX (held in ASX Clear)	250.0	250.0	250.0	250.0	250.0
ASX Clear (Futures) – default fund contributed by ASX (held in ASX Clear (Futures))	450.0	450.0	450.0	450.0	450.0
Business risk capital – ASX Clear & ASX Clear (Futures)	75.0	75.0	75.0	75.0	75.0
Business risk other entities (including settlement)	281.0	279.0	317.0	337.9	339.2
Total capital attribution	1,056.0	1,054.0	1,092.0	1,112.9	1,114.2
Total paid in clearing default fund
ASX Clear	250.0	250.0	250.0	250.0	250.0
ASX Clear (Futures)	650.0	650.0	650.0	650.0	650.0

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7. Cash Market Clearing and Settlement Income Statement

	Cash	Cash	Cash	Cash
	Market	Market	Market	Market
	Clearing	Clearing	Settlement	Settlement
	1H16	1H15	1H16	1H15
	$ Million	$ Million	$ Million	$ Million
Operating Revenues	27.3	23.2	24.1	22.8
Operating Expenses	5.7	5.4	6.9	6.6
EBITDA	21.6	17.8	17.2	16.2
Depreciation and Amortisation	1.0	1.0	0.1	0.1
EBIT	20.6	16.8	17.1	16.1
Interest Income	2.0	2.5	1.2	1.5
Profit Before Tax	22.6	19.3	18.3	17.6
Income Tax Expense	(6.8)	(5.8)	(5.5)	(5.3)
Profit After Tax	15.8	13.5	12.8	12.3
Economic Profit after Capital Charge	5.8	2.5	6.0	5.0
EBITDA Margin	79.1%	76.6%	71.5%	71.2%
Total Capital	218.1	218.1	143.2	140.0
Return on Equity	14.4%	12.3%	17.8%	17.5%

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Cash Market Clearing based on ‘Cover 2’ financial stability standard for entire period.

39

Thank you

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