ASX LIMITED — Interim / Quarterly Report 2020

Mar 24, 2020

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25 March 2020

Australian Securities and Investments Commission Mr Nathan Bourne Senior Executive Leader, Market Infrastructure Level 5, 100 Market Street SYDNEY NSW 2000

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

DIVIDEND LETTER

Attached is a letter to shareholders from the Chairman and the Managing Director and CEO regarding ASX's FY20 interim dividend and half-year financial results.

Release of market announcement authorised by:

ASX Continuous Disclosure Committee

Further enquiries: Media Matthew Gibbs

General Manager, Media and Communications

• T +61 2 9227 0218 M 0411 121 219

• E matthew.gibbs@asx.com.au

Analysts/Investor Relations

Josie Ashton

Head of Investor Relations

• T +61 2 9227 0646

• M 0416 205 234

• 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 Half-Year 2020

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25 March 2020

Dear ASX shareholder

On 13 February 2020, ASX announced a solid result for the first half of the 2020 financial year, as our diversified business continued to deliver reliable earnings while progressing our strategy and strengthening our foundations.

We are investing in the long-term sustainability of our business by strengthening our technology, risk and governance foundations, and upgrading our operating and service capabilities to support future growth.

Operational earnings before interest and tax rose 6% to $315.1 million – a rise of $17.7 million – and statutory net profit after tax grew by 1.8% to $250.4 million – up $4.3 million – compared to the same period last year (pcp).

Revenue increased by 7.1% to $454.9 million, reflecting growth from strong market activity and our core businesses. This operational growth was offset by a decline in interest and dividend income, due mainly to the lower interest rate environment and sale of our stake in IRESS, which enabled the payment of a special dividend in September 2019.

Overall, ASX delivered increased returns to shareholders, with our interim dividend rising 1.7% to 116.4 cents per share – the seventh consecutive first half increase in dividends, which will be paid today.

The key performance drivers of the results were:

• 9% rise in the number of daily average futures contracts traded, particularly in 30-day futures

• 8% increase in cash market trading, with daily average value across the period of $4.9 billion

• Demand for more technical and information services within the expanding ecosystem of our Australian Liquidity Centre.

ASX’s total expenses rose 9.8%, due mainly to the annualisation of employing more people last year, while guidance on capital expenditure is unchanged at approximately $75-$80 million for the full-year.

Financial highlights

			Variance
		1H20	(pcp)
	Operatingrevenue	$454.9 million	↑$30.2m↑7.1%
	Total expenses(includesdepreciation)	$139.8 million	↑$12.5m↑9.8%
	EBIT	$315.1 million	↑$17.7m↑6.0%
%	Interest anddividend income	$44.1 million	↓$10.8m↓19.7%
	Net proftafter tax	$250.4 million	↑$4.3m↑1.8%
	Earnings pershare	129.3 cents	↑2.2 cents↑1.7%
	Interim dividendper share	116.4 cents	↑2.0 cents↑1.7%

ASX Limited ABN 98 008 624 691

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Technology driven and customer focused

ASX has a long history of being at the forefront of the global exchange industry in the adoption of technology for the benefit of customers, investors and regulators. We added to that history during the first half of the financial year.

Our project to replace CHESS with a solution powered by distributed ledger technology is moving forward and our Sympli joint venture completed its first four-party e-settlement property transaction in December 2019. Just after results, ASX launched the S&P/ASX All Technology Index. The new index will enhance the profile and understanding of the tech sector in Australia, and increase opportunities for investors.

During the period we finalised a major package of refreshed listing rules and guidance, which help improve company disclosures to the market, make the rules easier to understand and comply with, and enable ASX to better monitor and enforce compliance. ASX is committed to market quality and to ensure the rules and processes keep evolving to serve the interests of issuers, investors and the Australian economy.

ASX is building an exchange for the future – an exchange that provides resilient and trusted market infrastructure and services, while also pursuing new opportunities that harness our experience, expertise and technology. This will deliver opportunities for innovation and for cost and risk reduction for our customers and across the Australian economy.

• Complete half-year 2020 results materials are available on the ASX shareholder page of the ASX website: www2.asx.com.au/about/asx-shareholders

• Any questions you would like to ask ASX can be emailed to: investor.relations@asx.com.au

Thank you for your support.

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“ Our diversified business continued to deliver reliable earnings while progressing our strategy and strengthening our foundations.”

Since the end of the half-year, ASX – like the rest of the world – has been managing the impact of COVID-19 or coronavirus. For news and information on the action we’ve taken to protect the wellbeing of our people and maintain the orderliness of the markets we operate, please see the ASX website here: www2.asx.com.au/about/media-centre/asx-action-on-covid-19

Yours sincerely

Yours sincerely,

Rick Holliday-Smith Chairman

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Dominic Stevens Managing Director and Chief Executive Officer