ASX LIMITED — Interim / Quarterly Report 2017

Feb 16, 2017

17 February 2017

Australian Securities and Investments Commission Mr Oliver Harvey Senior Executive, Financial Market Infrastructure Level 5, 100 Market Street SYDNEY NSW 2000

ASX Market Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

ASX LIMITED – RESULTS FOR ANNOUNCEMENT TO THE MARKET

In accordance with the Listing Rules, ASX encloses for immediate release the following information:

1. Appendix 4D

2. 2017 Half-Year Financial Statements

ASX will hold an analyst and media briefing on the results from 10.30am (Sydney time) today. The briefing will be broadcast live by webcast at: http://www.asx.com.au/about/presentations-andwebcasts.htm and will be archived on the ASX website after the event.

Amanda J Harkness

Group General Counsel and Company Secretary

For further enquiries, contact:

Media

Analysts/Investor Relations

Mr Matthew Gibbs Mr Stephen Hammon General Manager, Media and Communications General Manager, Finance Tel: +61 2 9227 0218 Tel: +61 2 9227 0260 Mobile: +61 411 121219 Mobile: +61 488 212755 matthew.gibbs@asx.com.au stephen.hammon@asx.com.au http://www.asx.com.au/about/media-releases.htm http://www.asx.com.au/about/investor-relations.htm

ASX Limited ABN 98 008 624 691

20 Bridge Street Sydney NSW 2000

www.asx.com.au Customer service 13 12 79

Appendix 4D

Preliminary financial statements for the half-year ended 31 December 2016 as required by ASX listing rule 4.2A

ASX listing rule 4.2A
RESULTS FOR ANNOUNCEMENT TO THE MARKET
(All comparisons to half-year ended 31 December 2015)	$m	Up/down	Movement %
Revenues from ordinaryactivities	465.2	up	2.2%
Revenues from ordinaryactivities excludinginterest income	392.5	up	2.7%
Proft after tax from ordinaryactivities(includingsignifcant items)	219.4	up	3.0%
Underlying proft after tax(excludingsignifcant items)	219.4	up	3.0%
		Franked
	Amount per	amount	Tax rate
	share	per share	for franking
DIVIDEND INFORMATION	(cents)	(cents)	credit
Final 2016 dividendper share(paid 28 September 2016)	99.0	99.0	30%
Interim 2017 dividendper share determined	102.0	102.0	30%
Interim dividend dates*
Ex-dividend date			9 March 2017
Record date			10 March 2017
Payment date			29 March 2017
* Dates are subject to fnal ASX Board approval
The Company’s Dividend Reinvestment Plan (DRP) will not apply to	the interim dividend.
	31	Dec 2016	31 Dec 2015
Net tangible assetsper security		$7.45	$7.12

This information should be read in conjunction with the 2016 Annual Report.

Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors’ Report and the consolidated financial statements for the half-year ended 31 December 2016.

This report is based on the consolidated financial statements for the half-year ended 31 December 2016 which have been reviewed by PricewaterhouseCoopers.

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ASX Limited and its controlled entities

2017 ASX Limited Half-Year Financial Statements

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ASX Limited ABN 98 008 624 691 and its controlled entities.

Results of operations

Contents

Directors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Auditor’s independence declaration . . . . . . . . . . . . . . . . . . . . . . . 5 Consolidated statement of comprehensive income . . . . . . . . . . . . . 6 Consolidated balance sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Consolidated statement of changes in equity . . . . . . . . . . . . . . . . 8 Consolidated statement of cash flows. . . . . . . . . . . . . . . . . . . . . 9 Notes to the financial statements . . . . . . . . . . . . . . . . . . . . . . 10 1. Segment reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2. Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3. Issued capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4. Amounts owing to participants . . . . . . . . . . . . . . . . . . . . . . . 13 5. Fair value measurements of financial instruments . . . . . . . . . . . . 13 6. Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 7. Available-for-sale investments . . . . . . . . . . . . . . . . . . . . . . . . 14 8. Contractual contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 9. New and amended standards and interpretations adopted by the Group . . . . . . . . . . . . . . . . . . . . 14 10. Subsequent events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Directors’ declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Independent auditor’s review report to the members of ASX Limited . 16

Directors’

report

The directors present their report together with the financial statements of ASX Limited (ASX or the Company) and its subsidiaries (together referred to as the Group), for the half-year ended 31 December 2016 and the auditor’s report thereon. The financial statements have been reviewed and approved by the directors on the recommendation of the ASX Audit and Risk Committee.

The consolidated net profit after tax for the halfyear ended 31 December 2016 attributable to the owners of ASX was $219.4 million (31 December 2015: $213.1 million).

Directors

The directors of ASX in office during the half-year and at the date of this report (unless otherwise stated) were as follows:

• Mr Rick Holliday-Smith (Chairman)

• Mr Dominic J Stevens[1] (Managing Director and CEO)

• Ms Yasmin A Allen

• Ms Melinda B Conrad[1]

• Dr Ken R Henry AC

• Mr Peter R Marriott

• Mrs Heather M Ridout AO

• Mr Damian Roche

• Mr Peter H Warne

1 Mr Dominic J Stevens was appointed Managing Director and CEO, and Ms Melinda B Conrad was appointed a director, on 1 August 2016. Mr Stevens was appointed a non-executive director in December 2013.

The Group’s profit after tax for the half-year ended 31 December 2016 (1H17) increased 3.0% to $219.4 million from the prior comparative period (pcp). A summary income statement in line with the Group’s segment note is reflected in the following table:

	$million Operatingrevenue Operatingexpenses EBITDA	1H17 386.6 (90.1) 296.5	1H16 376.2 (85.1) 291.1	Variance % fav/(unfav) 2.8 (6.0) 1.9
	Depreciation and amortisation	(22.1)	(20.8)	(6.3)
	EBIT Interest and dividend income Proft before tax Tax expense	274.4 37.5 311.9 (92.5)	270.3 33.7 304.0 (90.9)	1.5 11.3 2.6 (1.8)
	Proft after tax	219.4	213.1	3.0

Earnings per share

The Group’s earnings per share (EPS) in 1H17 was 113.4 cents compared to 110.2 cents in the pcp. The 2.9% increase in EPS compared to the pcp reflects the increase in profit as the number of issued shares remained unchanged.

Dividends

The Group’s dividend policy is to pay 90% of underlying earnings after tax. This measure excludes amounts regarded as significant non-recurring items of revenue and expenses. There were no items classified as significant in the current period or the pcp. The Board determined to pay an FY17 interim dividend of 102.0 cents per share on 29 March 2017, up 2.9% on the 99.1 cents per share paid in the pcp, reflecting the increased profit.

ASX Half-Year Report 2017 | Contents 2

Listings and Issuer Services – $103.3 million, down 2.1%

The following table includes information relating to dividends in respect of the prior and current financial years, including dividends paid or determined by the Company since the end of the previous financial year.

During 1H17, the number of new listings increased, while the amount of capital raised was lower when compared to a strong pcp.

• Annual listing revenue – up 7.3% to $39.3 million. There were 2,215 listed entities at 31 December 2016 compared to 2,238 a year earlier. Increases in market capitalisation and fee changes were the main drivers supporting the increase in revenue.

Type Cents per share Total amount $m Date of payment In respect of the current fnancialyear: Interim 102.0 197.5 29 March 2017
In respect of theprior fnancialyear: Interim 99.1 191.9 23 March 2016 Final 99.0 191.7 28 September 2016 Total 198.1 383.6

• Initial listing revenue – down 17.2% to $9.7 million. While the number of new listings increased from 77 to 86, the capital raised in 1H17 was $11.1 billion compared to $13.5 billion in the pcp. This was mainly due to fewer larger listings in 1H17.

Dividends are fully franked based on a tax rate of 30%.

• Secondary capital raisings revenue – down

• Operating revenue 8.0% to $26.7 million. This follows a 37.3% Group operating revenue as reported in the decrease in the amount of capital raised to segment note increased 2.8% to $386.6 million $25.8 billion compared to $41.1 billion in the in 1H17 compared to the pcp. pcp. The prior half-year included $18.1 billion of capital raised by the four major Australian banks.

The operating revenue from each business activity is reflected in the table below.

• Issuer services revenue – down 2.4% to $22.6 million. The decrease in revenue resulted from fewer holding statements, partially offset by an increase in the fee due to increased postage costs.

Revenue category Listings and Issuer Services TradingServices Equity Post-Trade Services Derivatives and OTC Markets Other revenue Total operating revenue	1H17 $m 103.3 96.0 52.9 133.0 1.4 386.6	1H16 $m 105.6 91.4 51.0 126.8 1.4 376.2	Variance % fav/(unfav) (2.1) 5.0 3.8 4.9 0.2 2.8	. fewer holding statements, partially offset by an increase in the fee due to increased postage costs. Trading Services – $96.0 million, up 5.0% Trading Services comprises cash market trad- ing, information and technical services. •Cash market trading – up 14.7% to $23.3 million. The increase in revenue resulted from: - Centre Point activity increased 51.2% leading to a higher average fee as this service is charged at a premium.

Commentary on operating revenue for the various business activities is detailed across.

• -Higher daily average on-market value traded on ASX of $4.2 billion compared to $4.1 billion in the pcp.

• -The participant trading rebate was discontinued from 1 July 2016, where in the pcp ASX rebated $1.0 million.

ASX’s market share of on-market trading averaged 87.9% in 1H17 compared to 88.4% in the pcp.

• Information services – down 1.8% to $39.9 million. The decrease in revenue resulted primarily from reduced index royalties against the pcp.

• Technical services – up 7.6% to $32.8 million.

• -Community and connectivity – up 7.5% to $9.2 million. Total revenue grew from increased service connections.

-Liquidity access – up 6.1% to $16.2 million due to increased automated data feeds and lower latency order entry services.

-Application services – down 0.3% to $2.7 million primarily due to lower installation fees from futures cross-connects.

-Hosting – up 19.1% to $4.7 million. The number of customer cabinets hosted in the ALC increased from 219 to 270.

Equity Post-Trade Services – $52.9 million, up 3.8%

Equity Post-Trade Services revenue includes fees for clearing and settlement of ASX-quoted securities including equities, debt securities, warrants and exchange-traded funds.

• Cash market clearing revenue – down 1.4% to $26.8 million. ASX reduced clearing fees by 10% from 1 July 2016. The daily average value cleared increased 3.9% to $4.6 billion reflecting the increase in trading across all venues in Australia. The lower fee revenue resulted in no revenue sharing rebate, compared to $1.7 million in the pcp.

• Cash market settlement revenue – up 9.8% to $26.1 million. Settlement messages increased with a 10.3% increase in the dominant settlement message. The settlement revenue sharing rebate was $1.1 million compared to $0.8 million in the pcp.

Derivatives and OTC M arkets – $133.0 million, up 4.9%

Derivatives and OTC Markets includes futures and equity options; clearing of OTC interest rate derivatives; settlement, depository and registry services for debt securities and cash transactions (Austraclear); and ASX Collateral services.

• Equity options – down 3.0% to $11.0 million. Total volume of contracts increased 1.1%. The decrease in revenue was due to a change in product mix: single stock option volumes were up 2.7% while index option volumes were down 10.0%.

• Futures and OTC – up 6.2% to $97.2 million. The increase in revenue was due to a 8.8% increase in futures volumes and a significant increase in OTC clearing. The value cleared through the OTC Clearing Service increased to $2,159.7 billion compared to $817.4 billion in the pcp. ASX also provided $8.2 million ($7.6 million pcp) in interest rate rebates to large customers. Rebates paid to proprietary traders also increased in 1H17.

• Austraclear – up 3.7% to $24.8 million. The increase in revenue was primarily due to an increase in registry activity and an increase in certain fees. At 31 December 2016, the value of assets in the ASX Collateral service increased to $11.7 billion compared to $4.8 billion at 30 June 2016.

ASX Half-Year Report 2017 | Directors’ report 3

Operating expenses

Underlying operating expenses (excluding finance costs and depreciation and amortisation) increased by 6.0% to $90.1 million compared to the pcp.

Operating expenses	1H17 $m	1H16 $m	Variance % fav/(unfav)
Staff Occupancy Equipment Administration Variable ASIC supervision levy Total operating expenses	55.2 7.3 14.6 8.1 3.4 1.5 90.1	50.7 6.8 13.1 9.9 3.1 1.5 85.1	(8.9) (7.9) (11.2) 17.8 (10.8) 2.4 (6.0)

Staff costs increased 8.9% to $55.2 million. This was due to salary increases and higher average headcount. The average full-time equivalent (FTE) headcount increased from 523 in the pcp to 556 in the current period. The increase in FTE reflects investment in new staff to support customer and growth related projects including expanding the listings franchise and launching new derivatives products and services.

Other operating costs increased 1.6% to $34.9 million. This was due to higher equipment costs to support new technology platforms and higher variable costs driven by increased postage costs. Administration costs were lower as a result of reduced discretionary costs partly attributable to timing of expenditure.

Depreciation and amortisation

Depreciation and amortisation expenses increased 6.3% to $22.1 million. This included increased capital investment in prior periods in new services as well as ongoing technology maintenance and refresh of existing platforms.

Capital expenditure

The Group incurred $20.3 million on capital expenditure during the half-year, compared to $18.7 million in the pcp. Expenditure was focused on upgrading technology platforms, particularly the new futures trading platform, and is inclusive of distributed ledger technology development.

Net interest and dividend income

Net interest increased 13.2% to $32.6 million. Net interest consists of two components: interest on ASX’s cash balances and net interest earned from the investment of collateral balances lodged by clearing participants.

Interest income on ASX’s own cash balances decreased 16.9% to $9.4 million as a result of lower interest rates.

Net interest earned from the investment of participant balances increased 32.7% to $23.2 million. This increase was driven by a 28.5% increase in average collateral balances to $5.6 billion. Investment earnings on this portfolio averaged 41 basis points above the official overnight cash rate, up from 37 basis points in the pcp.

Dividend income from ASX’s shareholding in IRESS was flat on pcp at $4.9 million.

Financial position

At 31 December 2016, the net assets of the Group were $3,874.1 million, up 1.3% from 30 June 2016. Retained earnings increased $27.9 million from continuing business operations.

A summary balance sheet is presented below.

The decrease in participant balances resulted in a corresponding 1.0% decrease in cash and available-for-sale financial assets, as the balances are invested by ASX.

	$million	31 Dec 2016	30 Jun 2016	Variance %
	Assets Cash and available-for-sale fnancial assets	7,002.2	7,072.8	(1.0)
	Intangible assets	2,431.2	2,420.7	0.4
	Property, plant and equipment	47.3	51.6	(8.4)
	Investments	473.2	424.8	11.4
	Other assets	301.9	481.7	(37.3)
	Total assets	**10,255.8 **	10,451.6	(1.9)
	Liabilities Amounts owing to participants	5,987.7	6,088.2	(1.7)
	Other liabilities Total liabilities Equity Capital Retained earnings Reserves Total equity	394.0 6,381.7 3,027.2 604.8 242.1 3,874.1	539.3 6,627.5 3,027.2 576.9 220.0 3,824.1	(27.0) (3.7) - 4.8 10.0 1.3

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

Rounding of amounts

ASX is a company of the kind referred to in ASIC Legislative Instrument 2016/191 dated 24 March 2016. In accordance with that instrument, amounts in the financial statements and the directors’ report have been rounded to the nearest hundred thousand dollars, unless otherwise indicated.

Signed in accordance with a resolution of the directors:

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Notable movements in the balance sheet during the half-year were as follows.

Intangible assets – up $10.5 million or 0.4% The increase in intangible assets reflects continued investment in software assets and the BBSW intangibles following ASX’s appointment as administrator of the index late in the half-year.

Rick Holliday-Smith Chairman

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Amounts owing to participants – down $100.5 million or 1.7%

As part of its clearing operations, the Group holds a significant amount of collateral lodged by clearing participants to cover exposures on cash market and derivative open positions. The decrease in margins followed a reduction in margin rates near the end of the year. As noted earlier, the average collateral lodged by participants over the halfyear was significantly higher compared to the pcp.

Dominic J Stevens Managing Director and CEO Sydney, 17 February 2017

ASX Half-Year Report 2017 | Directors’ report 4

Auditor’s independence declaration

As lead auditor for the review of ASX Limited for the half-year ended 31 December 2016, I declare that to the best of my knowledge and belief, there have been:

• a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b. no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of ASX Limited and the entities it controlled during the period.

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Matthew Lunn Partner PricewaterhouseCoopers

Sydney, 17 February 2017

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PricewaterhouseCoopers, ABN 52 780 433 757

Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171

T: +61 2 8266 0000 F: +61 2 8266 9999 www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

ASX Half-Year Report 2017 | Auditor’s independence declaration

5

Consolidated statement of comprehensive income

For the half-year ended	31 Dec 2016 $m 31 Dec 2015 $m
Revenue
Listings and Issuer Services	103.6 106.2
TradingServices	96.3 91.8
EquityPost-Trade Services	52.9 51.0
Derivatives and OTC Markets	133.1 127.0
Interest income	72.7 72.9
Dividend income	4.9 4.9
Share of netproft of equityaccounted investments	0.5 0.4
Other	1.2 1.0
	465.2 455.2
Expenses
Staff	(55.2) (50.7)
Occupancy	(7.3) (6.8)
Equipment	(15.3) (14.0)
Administration	(13.3) (14.8)
Depreciation and amortisation	(22.1) (20.8)
Finance costs	(40.1) (44.1)
	(153.3) (151.2)
Proft before income tax expense	311.9 304.0
Income tax expense	(92.5) (90.9)
Netproft for the half-year attributable to owners of the Company	219.4 213.1
Other comprehensive income
Items that may be reclassifed toproft or loss1:
Change in the fair value of available-for-sale investments	22.2 (2.5)
Change in the fair value of available-for-sale fnancial assets	(0.8) 0.5
Change in the fair value of cash fow hedges	0.5 (0.2)
Other comprehensive income for the half-year, net of tax	21.9 (2.2)
Total comprehensive income for the half-year attributable to owners of the Company	241.3 210.9
Earnings per share
Basic earnings per share(centsper share)	113.4 110.2
Diluted earnings per share(centsper share)	113.4 110.2
1$0.2 million (2016: $0.1 million) was reclassifed from equity to proft or loss during the half-year following the sale of available-for-sale fnancial assets prior to their maturity.

ASX Half-Year Report 2017 | Consolidated statement of comprehensive income 6

Consolidated balance sheet

As at	Note	31 Dec 2016 $m 30 Jun 2016 $m
Current assets
Cash and funds on deposit		3,099.3 3,276.4
Available-for-sale fnancial assets	5	3,902.9 3,796.4
Receivables		285.0 469.1
Prepayments		14.1 12.6
Total current assets		7,301.3 7,554.5
Non-current assets
Available-for-sale investments	7	406.1 358.2
Equityaccounted investments		67.1 66.6
Intangible assets		2,431.2 2,420.7
Property,plant and equipment		47.3 51.6
Prepayments		2.8 -
Total non-current assets		2,954.5 2,897.1
Total assets		10,255.8 10,451.6
Current liabilities
Amounts owingtoparticipants	4	5,787.7 5,888.2
Payables		225.1 437.8
Current tax liabilities		27.4 9.9
Provisions		15.8 14.5
Revenue received in advance		66.9 16.4
Total current liabilities		6,122.9 6,366.8
Non-current liabilities
Amounts owingtoparticipants	4	200.0 200.0
Net deferred tax liabilities		51.5 51.6
Provisions		7.2 9.0
Revenue received in advance		0.1 0.1
Total non-current liabilities		258.8 260.7
Total liabilities		6,381.7 6,627.5
Net assets		3,874.1 3,824.1
Equity
Issued capital		3,027.2 3,027.2
Retained earnings		604.8 576.9
Restricted capital reserve		71.5 71.5
Asset revaluation reserve		161.6 139.7
Equitycompensation reserve		9.0 8.8
Total equity		3,874.1 3,824.1

ASX Half-Year Report 2017 | Consolidated balance sheet 7

Consolidated statement of changes in equity

For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m	For the half-year ended 31 December 2016 Note Issued capital $m Retained earnings $m Restricted capital reserve $m Asset revaluation reserve $m Equity compensation reserve $m Total equity $m
Opening balance at 1 July 2016 3,027.2 576.9 71.5 139.7 8.8 3,824.1
Proft for theperiod - 219.4 - - - 219.4
Other comprehensive income for theperiod		-	-	-	21.9	-	21.9
Total comprehensive income for theperiod, net of tax		-	219.4	-	21.9	-	241.3
Transactions with owners in their capacity as owners:
Employee share schemes - value of employee services		-	-	-	-	0.2	0.2
Dividendspaid 2 - (191.5) - - - (191.5)
Closing balance at 31 December 2016 3,027.2 604.8 71.5 161.6 9.0 3,874.1
For the half-year ended 31 December 2015
Opening balance at 1 July 2015 3,027.2 526.3 71.5 125.4 9.3 3,759.7
Proft for theperiod - 213.1 - - - 213.1
Other comprehensive income for theperiod -			-	-	(2.2)	-	(2.2)
Total comprehensive income for theperiod, net of tax -			213.1	-	(2.2)	-	210.9
Transactions with owners in their capacity as owners:
Employee share schemes - value of employee services -			-	-	-	0.5	0.5
Dividendspaid 2 - (183.9) - - - (183.9)
Closing balance at 31 December 2015 3,027.2 555.5 71.5 123.2 9.8 3,787.2

ASX Half-Year Report 2017 | Consolidated statement of changes in equity 8

Consolidated statement of cash flows

For the half-year ended 31 Dec 2016 $m 31 Dec 2015 $m	For the half-year ended 31 Dec 2016 $m 31 Dec 2015 $m
Cash fows from operating activities Receipts from customers(inclusive of GST) 471.8 466.4 Payments to suppliers and employees(inclusive of GST) (151.9) (147.5) 319.9 318.9 Interest received 73.9 74.4 Interestpaid (40.3) (43.0) Dividends received 4.9 4.9 Income taxespaid (84.4) (92.7) Net cash infow from operating activities 274.0 262.5	Reconciliation of the operating proft after income tax to the net cash fows from operating activities:
	Netproft after tax 219.4 213.1
	Add non-cash items:
	Depreciation and amortisation 22.1 20.8
	Share-basedpayments 0.2 0.5
	Share of netproft of equityaccounted investments (0.5) (0.4)
	Tax on fair value adjustment of available-for-sale fnancial assets 0.3 (0.2)
	Tax on fair value adjustment of cash fow hedges (0.2) 0.1
Cash fows from investing activities (Decrease)/increase in participants’ margins and commitments (66.4) 398.2 Payments for available-for-sale investments (16.2) - Payments for other non-current assets (36.0) (24.0) Net cash(outfow)/infow from investing activities (118.6) 374.2 Cash fows from fnancing activities Dividendspaid (191.5) (183.9) Net cash(outfow) from fnancing activities (191.5) (183.9) Net(decrease)/increase in cash and cash equivalents (36.1) 452.8 (Decrease)/increase in fair value of cash and cash equivalents (0.4) 0.4 (Decrease)/increase in cash and cash equivalents due to changes in foreign exchange rates (34.1) 24.1 Cash and cash equivalents at the beginning of the fnancialperiod 7,072.8 4,879.0 Cash and cash equivalents at the end of the fnancialperiod 7,002.2 5,356.3 Cash and cash equivalents consist of: ASX Groupfunds 1,014.5 1,047.8 Participants’ margins and commitments 5,987.7 4,308.5 Total cash and cash equivalents 7,002.2 5,356.3	Changes in operating assets and liabilities:
	Increase/(decrease)in tax balances 8.0 (1.7)
	(Increase)/decrease in current receivables (1.8) 5.1
	(Increase)inprepayments (4.3) -
	(Decrease)inpayables (19.2) (23.3)
	Increase in revenue received in advance 50.5 49.1
	(Decrease)in other current liabilities - (0.1)
	Increase in currentprovisions 1.3 0.5
	(Decrease)in non-currentprovisions (1.8) (1.0)
	Net cash infow from operating activities 274.0 262.5

ASX Half-Year Report 2017 | Consolidated statement of cash flows 9

Notes to the financial statements

ASX is a for-profit company limited by shares, incorporated and domiciled in Australia.

The condensed consolidated financial statements of the Group for the half-year ended 31 December 2016 were authorised for issue by the Board of Directors on 17 February 2017. The directors have the power to amend and reissue the financial statements.

The half-year financial statements are general

purpose financial statements that:

• have been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001

• have been prepared on a historical cost basis, except for available-for-sale financial assets and investments, which have been measured at fair value

• are presented in Australian dollars (being ASX’s functional and presentation currency) with all values rounded to the nearest hundred thousand dollars unless otherwise stated, in accordance with ASIC Legislative Instrument 2016/191.

The half-year financial statements do not include all of the information required for full-year financial statements. Accordingly, these financial statements should be read in conjunction with the consolidated financial statements for the year ended 30 June 2016 and any public announcements made by the Company during the halfyear in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The Group’s accounting policies have been consistently applied to all years presented, unless otherwise stated.

1. Segment reporting

(a) Description of segment

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and CEO.

The CODM assesses performance of the Group as a single segment, being a vertically integrated organisation that provides a multi-asset class product offering.

Vertical integration includes the:

• listing and issuer services offered to public companies and other issuers

• trading venue or exchange activities for trading

• clearing and settlement activities

• exchange-traded and over-the-counter (OTC) products

• information and technical services supporting the Group’s activities.

Multi-asset class service offerings include equities, interest rate, commodity and energy products across cash and derivatives markets.

In addition to reviewing performance based on statutory profit after tax, the CODM assesses the performance of the Group based on underlying profit after tax. This measure excludes amounts regarded as significant items of revenue and expenses such as those that may be associated with significant business restructuring or individual transactions of an infrequent nature. There were no items reported as significant in the current or prior financial period.

Group performance measures including earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation and amortisation (EBITDA) are also reviewed by the CODM. In assessing performance, doubtful debt provisions and arrangements where revenue is shared with external parties are reclassified from expenses to operating revenue; certain expenses are reclassified within operating expenses; and interest income is presented net of interest expense.

(b) Segment results

The information provided on a regular basis to the CODM, along with a reconciliation to statutory profit after tax for the period attributable to owners of the Company, is presented on the following page.

ASX derives all external customer revenue within Australia and some services are accessible from offshore.

No single customer generates revenue greater than 10% of the Group’s total revenue.

ASX Half-Year Report 2017 | Notes to the financial statements 10

Half-year ended 31 December 2016 Segment information $m Adjustments $m Consolidated income statement $m Revenue Listings 80.7 0.3 81.0 Issuer services 22.6 - 22.6 Listings and Issuer Services 103.3 0.3 103.6 Cash market trading 23.3 - 23.3 Information services 39.9 - 39.9 Technical services 32.8 0.3 33.1 Trading Services 96.0 0.3 96.3 Cash market clearing 26.8 - 26.8 Cash market settlement 26.1 - 26.1 Equity Post-Trade Services 52.9 - 52.9 Equityoptions 11.0 - 11.0 Futures and OTC 97.2 - 97.2 Austraclear 24.8 0.1 24.9 Derivatives and OTC Markets 133.0 0.1 133.1 Other 1.4 (0.2) 1.2 Operating revenue 386.6 Interest income 72.7 72.7 Dividend income 4.9 4.9 Share of netproft of equityaccounted investments 0.5 0.5 Total revenue 78.6 465.2 Expenses Staff (55.2) - (55.2) Occupancy (7.3) - (7.3) Equipment (14.6) (0.7) (15.3) Administration (8.1) (5.2) (13.3) Variable (3.4) 3.4 - ASIC supervision levy (1.5) 1.5 - Operating expenses (90.1) EBITDA 296.5 Finance costs - (40.1) (40.1) Depreciation and amortisation (22.1) - (22.1) Total expenses (22.1) (41.1) (153.3) EBIT 274.4	Half-year ended 31 December 2016 Segment information $m Adjustments $m Consolidated income statement $m
	Net interest and dividend income
	Net interest income 9.4 (9.4) -
	Net interest onparticipant balances 23.2 (23.2) -
	Dividend income 4.9 (4.9) -
	Net interest and dividend income 37.5 (37.5) -
	Underlying proft before tax 311.9 - 311.9
	Income tax expense (92.5) - (92.5)
	Underlying proft after tax 219.4 - 219.4
	Signifcant items, net of tax - - -
	Netproft after tax 219.4 - 219.4

ASX Half-Year Report 2017 | Notes to the financial statements 11

Half-year ended 31 December 2015 Segment information $m Adjustments $m Consolidated income statement $m Revenue Listings 82.4 0.6 83.0 Issuer services 23.2 - 23.2 Listings and Issuer Services 105.6 0.6 106.2 Cash market trading 20.3 - 20.3 Information services 40.6 - 40.6 Technical services 30.5 0.4 30.9 Trading Services 91.4 0.4 91.8 Cash market clearing 27.2 - 27.2 Cash market settlement 23.8 - 23.8 Equity Post-Trade Services 51.0 - 51.0 Equityoptions 11.3 - 11.3 Futures and OTC 91.6 0.1 91.7 Austraclear 23.9 0.1 24.0 Derivatives and OTC Markets 126.8 0.2 127.0 Other 1.4 (0.4) 1.0 Operating revenue 376.2 Interest income 72.9 72.9 Dividend income 4.9 4.9 Share of netproft of equityaccounted investments 0.4 0.4 Total revenue 79.0 455.2 Expenses Staff (50.7) - (50.7) Occupancy (6.8) - (6.8) Equipment (13.1) (0.9) (14.0) Administration (9.9) (4.9) (14.8) Variable (3.1) 3.1 - ASIC supervision levy (1.5) 1.5 - Operating expenses (85.1) EBITDA 291.1 Finance costs - (44.1) (44.1) Depreciation and amortisation (20.8) - (20.8) Total expenses (20.8) (45.3) (151.2) EBIT 270.3	Half-year ended 31 December 2015 Segment information $m Adjustments $m Consolidated income statement $m
	Net interest and dividend income
	Net interest income 11.3 (11.3) -
	Net interest onparticipant balances 17.5 (17.5) -
	Dividend income 4.9 (4.9) -
	Net interest and dividend income 33.7 (33.7) -
	Underlying proft before tax 304.0 - 304.0
	Income tax expense (90.9) - (90.9)
	Underlying proft after tax 213.1 - 213.1
	Signifcant items, net of tax - - -
	Netproft after tax 213.1 - 213.1

ASX Half-Year Report 2017 | Notes to the financial statements 12

2. Dividends

4. Amounts owing to participants

5. Fair value measurements of financial instruments

(a) Fair value hierarchy and valuation techniques

Dividends recognised and paid by ASX for the half-years ended 31 December 2016 and 2015:

The Group collects margins and other balances (commitments) from clearing participants as security for clearing risk undertaken.

The following tables present the Group’s financial assets measured and recognised at fair value at 31 December 2016 and 30 June 2016. The Group did not have any financial liabilities measured at fair value at 31 December 2016 or 30 June 2016.

Cents Total
per share amount $m	Participants’ margins and commitments recog- nised on balance sheet at reporting date
2016	comprised:
Final dividend for the year ended 30 June 2016 99.0 191.7 2015 Final dividend for the year ended 30 June 2015 95.1 184.1	Cash Debt securities	31 Dec 2016 $m 5,603.8 183.9	30 Jun 2016 $m 5,674.9 213.3
The above dividends paid by ASX include amounts	Current amounts owing toparticipants	5,787.7	5,888.2
attached to certain shares held by the Group’s Long-Term Incentive Plan Trust (LTIP). The dividend revenue recognised by LTIP of $0.2 million (31	Commitments Non-current amounts owing toparticipants	200.0 200.0	200.0 200.0
December 2015: $0.2 million) has been eliminated on consolidation.	Total participants’ margins and commitments	5,987.7	6,088.2

Cents per Total amount	Cents per Total amount	Cents per Total amount
share $m 2016 Final dividend for the year ended 30 June 2016 99.0 191.7 2015 Final dividend for the year ended 30 June 2015 95.1 184.1 The above dividends paid by ASX include amounts attached to certain shares held by the Group’s Long-Term Incentive Plan Trust (LTIP). The dividend revenue recognised by LTIP of $0.2 million (31 December 2015: $0.2 million) has been eliminated on consolidation.	p g g nised on balance sheet at reporting date comprised: 31 Dec 2016 $m 30 Jun 2016 $m	31 December 2016 Level 1 $m Level 2 $m Level 3 $m Total $m
		Assets
		Available-for-sale fnancial assets
		- Negotiable certifcates of deposit - 848.0 - 848.0
		- Promissorynotes - 1,590.5 - 1,590.5
	Cash 5,603.8 5,674.9
	Debt securities 183.9 213.3	- Treasurynotes - 26.9 - 26.9
	Current amounts owing toparticipants 5,787.7 5,888.2	- Floatingrate notes - 426.8 - 426.8
		- Bonds 581.5 429.2 - 1,010.7
	Commitments 200.0 200.0	Available-for-sale investments 382.0 - 24.1 406.1
	Non-current amounts owing toparticipants 200.0 200.0	Total assets 963.5 3,321.4 24.1 4,309.0
		30 June 2016
	Total participants’ margins and commitments 5,987.7 6,088.2
		Assets
Since the end of the half-year, the directors have determined the below interim dividend. The divi- dend will be fully franked based on tax paid at 30%. Interim dividend for the half- year ended 31 December 2016 102.0 197.5 The interim dividend has not been recognised in the fnancial statements for the half-year ended 31 December 2016, and will be recognised in the	As at 31 December 2016, collateral lodged by clearing participants was as follows: ASX Clear ASX Clear (Futures) 31 Dec 2016 $m 30 Jun 2016 $m 31 Dec 2016 $m 30 Jun 2016 $m Cash 445.5 815.7 5,158.3 4,859.2 Bankguarantees 4.5 14.6 - - Equitysecurities 3,754.0 3,385.7 - - Debt securities - - 183.9 213.3
		Available-for-sale fnancial assets
		- Negotiable certifcates of deposit - 1,179.5 - 1,179.5
		- Promissorynotes - 1,123.1 - 1,123.1
		- Treasurynotes - 114.8 - 114.8
		- Floatingrate notes - 1,012.9 - 1,012.9
		- Bonds 213.3 152.8 - 366.1
	Cash	Available-for-sale investments 334.9 - 23.3 358.2
	Bankguarantees	Total assets 548.2 3,583.1 23.3 4,154.6
	Equitysecurities	The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at
	Debt securities

The interim dividend has not been recognised in the financial statements for the half-year ended 31 December 2016, and will be recognised in the following reporting period.

The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting date.

Collateral lodged as bank guarantees or equities are not recognised on the balance sheet as the Group is not party to the contractual provisions of the instruments other than in the event of a default.

3. Issued capital

There were no transfers between levels for recurring measurements during the period. The Group did not measure any financial assets at fair value on a non-recurring basis as at 31 December 2016.

There was no movement in ordinary share capital. The following table presents the movement in treasury shares during the period.

The classification of financial instruments within the fair value hierarchy and the valuation techniques used to determine their fair values are detailed on the following page.

All net delivery and net payment obligations relating to cash market and derivative securities owing to or by participants as at 31 December 2016 were subsequently settled.

Number of treasury shares Opening balance Issue of deferred shares	31 Dec 2016 181,269 (5,419)	30 Jun 2016 181,269 -
Shares transferred to LTIP	1,376	-
Closing balance	177,226	181,269

ASX Half-Year Report 2017 | Notes to the financial statements 13

Level 1

Level 1 inputs are unadjusted quoted prices in active markets at the measurement date for identical assets and liabilities. Financial instruments included in this category are the Group’s external listed equity investment and Australian Government bonds.

The fair value of the listed investment is determined by reference to the ASX-quoted closing price at reporting date and the fair value of Australian Government bonds are determined by reference to readily observable quoted prices for identical assets in active markets.

Level 2

Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). All current available-for-sale financial assets other than Australian Government bonds as noted above are classified as level 2 financial instruments as their fair values are determined using either discounted cash flow models or observable market prices for identical assets that are not actively traded.

Level 3

Level 3 inputs are based on unobservable market data. The fair value of the Group’s external unlisted equity investment is determined by reference to the most recent purchase price (inclusive of the cost of any rights to acquire) for the same class of securities held at reporting date. As this is an unobservable input, the investment is classified as a level 3 financial instrument.

(b) Fair values of other financial instruments

The Group has a number of financial instruments which are not measured at fair value on the balance sheet. Due to their short-term nature, the carrying amounts of current receivables and current payables are assumed to approximate their fair value. The carrying amount of non-current payables approximates their fair value as the impact of discounting is not significant.

(c) Level 3 fair value instruments

The following table presents the changes in level 3 instruments for the periods ended 31 December and June 2016.

	31 Dec 2016 30 Jun 2016
	$m $m Opening balance 23.3 -
	Additions - 24.4
	FX revaluationgain/(loss)1 0.8 (1.1) Closing balance 24.1 23.3 1The gain/(loss), net of tax, recognised as a result of changes in
	foreign exchange rates has been recognised within the asset revaluation reserve.

There were no gains or losses recognised in profit or loss for the periods ended 31 December 2016 and 30 June 2016.

The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. This analysis assumes all other variables, in particular foreign exchange rates, remain constant.

	Description	Investment in unlisted entities
	Fair value at 31 Dec 2016	$24.1 million
	Unobservable inputs*	Purchase price
	Change in inputs Relationship of unobservable inputs to fair	10% A 10% increase/decrease in the purchase price would increase/ decrease fair value by $2.4
	value	million

*There were no significant inter-relationships between unobservable inputs that materially affect fair values.

6. Intangible assets

Software

During the half-year ended 31 December 2016, the Group incurred $17.8 million of capital expenditure for software (31 December 2015: $13.4 million).

Goodwill

The pre-tax discount rate for all cash generating units (CGUs) used in the value-in-use calculations changed from 9.5% at 30 June 2016 to 9.25% at 31 December 2016. There were no other changes in the assumptions detailed in the 2016 annual financial report to support the carrying value of goodwill.

7. Available-for-sale investments

	Investments in listed entities Investments in unlisted entities Total available-for-sale investments	31 Dec 2016 $m 382.0 24.1 406.1	30 Jun 2016 $m 334.9 23.3 358.2

During the current half-year, ASX purchased 1,429,639 shares in IRESS as part of the IRESS placement offer. The total purchase cost of the share capital was $16.2 million.

8. Contractual contingencies

In December 2016, ASX entered into a contract with the Australian Financial Markets Association to become the new administrator of the Bank Bill Swap (BBSW) benchmark rate. In accordance with this contract, an amount may be payable in June 2017. No provision has been recognised in relation to this as the amount is contingent upon future events. The maximum amount payable is not material.

9. New and amended standards and interpretations adopted by the Group

There are no new or amended standards applicable for the first time for the December 2016 half-year report that affect the Group’s accounting policies or any of the amounts recognised in the financial statements.

10. Subsequent events

From the end of the reporting period to the date of this report, no matter or circumstance has arisen which has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group.

ASX Half-Year Report 2017 | Notes to the financial statements 14

Directors’ declaration

In the opinion of the directors of ASX Limited (the Company):

(a) the financial statements and notes that are contained in pages 6 to 14 are in accordance with the Corporations Act 2001 , including:

• i. giving a true and fair view of the Group’s financial position as at 31 December 2016 and of its performance for the half-year ended on that date; and

• ii. complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

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Rick Holliday-Smith Chairman

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Dominic J Stevens Managing Director and CEO

Sydney, 17 February 2017

ASX Half-Year Report 2017 | Directors’ declaration 15

Independent auditor’s review report to the members of ASX Limited

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PricewaterhouseCoopers, ABN 52 780 433 757

Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171

Report on the half-year financial report

We have reviewed the accompanying half-year financial report of ASX Limited (the company), which comprises the consolidated balance sheet as at 31 December 2016, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for the ASX Limited Group (the consolidated entity). The consolidated entity comprises the company and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance

with Australian Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent

Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including - giving a true and fair view of the consolidated enti ty’s financial position as at 31 December 2016 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of

the company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the consolidated entity is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year ended on that date, and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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PricewaterhouseCoopers

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Matthew Lunn Partner Sydney, 17 February 2017

T: +61 2 8266 0000 F: +61 2 8266 9999 www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

ASX Half-Year Report 2017 | Independent auditor’s review report to the members of ASX Limited 16