ASX LIMITED — Investor Presentation 2016

May 3, 2016

4 May 2016

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 – PRESENTATION TO INVESTORS

Attached is a copy of an ASX presentation to investors that will be delivered at the Australian Macquarie Securities Conference held in Sydney on 4 and 5 May 2016.

Amanda J. Harkness

Group General Counsel & Company Secretary

Further enquiries:

Media

Matthew Gibbs General Manager, Media and Communications Tel: +61 2 9227 0218 Mobile: 0411 121219 matthew.gibbs@asx.com.au http://www.asx.com.au/about/media-releases.htm

Analysts/Investor Relations

Stephen Hammon General Manager, Finance Tel: +61 2 9227 0260 Mobile: 0488 212755 stephen.hammon@asx.com.au http://www.asx.com.au/about/investor-relations.htm

20 Bridge Street Sydney NSW 2000

ASX Limited ABN 98 008 624 691

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

Investor Presentation

ASX Limited

4 May 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 (4 May 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 – 9 Months to 31 March 2016

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Revenues Expenses EBITDA Underlying NPAT Statutory NPAT
$552.8 m $127.5m $425.3m $317.4m $317.4m
7.0% (6.1%) 7.2% 5.9% 6.2%
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Positive revenue growth of 7.0%

• Growth in all major categories compared to pcp supported by robust trading activity

• Impact of futures fee reductions $11.2m vs $10.5m pcp, continued growth in OTC clearing

• Lower average listings activity in the third quarter of FY16 compared to 1H16

Expense growth of 6.1%

• Acceleration of investment in post-trade services

• CEO transition arrangements

• FY16 guidance expense growth of approximately 6%

Capital expenditure $30.6 million

• FY16 guidance unchanged at approximately $50 million

• Q4 expenditure in line with scheduled technology transformation investments

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Unaudited result

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

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Financial Results – 9 Months to 31 March 2016 (continued)

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Revenues Expenses EBITDA Underlying NPAT Statutory NPAT
$552.8 m $127.5m $425.3m $317.4m $317.4m
7.0% (6.1%) 7.2% 5.9% 6.2%
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CEO Renewal

• Elmer Funke Kupper resigned 21 March after 4.5 years in the role

• CEO renewal progressing at accelerated pace

• Rick Holliday-Smith, Chairman with executive oversight in the interim

• Peter Hiom and Amanda Harkness managing the business, commercial/regulatory separation maintained

Regulatory

• Greater certainty on market structure for equities clearing following Treasurer’s announcement

• ASX ownership restrictions to be made consistent with banks and insurers

Continued investment in strategic positioning

• Implementation of strategy and initiatives broadly on track

• Expected delivery of the new trading platform: futures in July - November 2016, equities in 2017

• Assessment of distributed ledger technology underway

Unaudited result

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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 – 9 Months to 31 March 2016

	YTD March 16 $m	YTD March 15 $m	% Variance
Operating Revenues	552.8 516.8 7.0%
Operating Expenses	127.5 120.2 (6.1%)
EBITDA	425.3 396.6 7.2%
Depreciation and Amortisation	31.3 28.2 (11.1%)
EBIT	394.0 368.4 6.9%
Interest and Dividend Income	56.7 57.9 (2.0%)
Profit Before Tax	450.7 426.3 5.7%
Income Tax Expense	(133.3) (126.5) (5.4%)
Underlying Profit after Tax	317.4 299.8 5.9%
Significant Items after Tax	- (1.1) n/a
Statutory Profit After Tax	317.4 298.7 6.2%

Unaudited result

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

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Revenue Movement – 9 Months to 31 March 2016 ($ Million)

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||||||||
|---|---|---|---|---|---|---|
|4.1|0.7|552.8|
|7.7|
|9.7|
|13.7|
|516.8|
|Up|Up|Up|Up|Up|
|10.5%|7.7%|11.3%|2.2%|74.8%|
|Operating Revenues Up 7.0%|
|July 14 to|Listings and|Trading|Equity Post-Trade|Derivatives and|Other|July 15 to|
|March 15|Issuer Services|Services|Services|OTC Markets|Revenue|March 16|
|$144.6|$136.7|$76.0|$193.8|$1.7|

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Unaudited result

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

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Activity Levels

Total Capital Raised ($ Billion)

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38.7
28.3
26.3
25.3
13.3
11.6
8.4
1Q 2Q 3Q 4Q
FY15 FY16
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Futures[1] - Average Daily Contracts ('000)

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562
518 529
492 484
462 466
1Q 2Q 3Q 4Q
FY15 FY16
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Cash Market Trading ASX Average Daily Value On-market ($ Billion)

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4.254 4.246 4.241
4.021
3.887
3.557
3.434
1Q 2Q 3Q 4Q
FY15 FY16
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Equity Options - Average Daily Contracts
('000)
490 498 487
419 414 422
353
1Q 2Q 3Q 4Q
FY15 FY16
7
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1. Consists of futures and options on futures

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Attractive and Diversified Business Model

YTD Mar 2016 ASX Revenues

100% = $553m

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Austraclear
7% Listings
20%
Listings and
Issuer Services
Derivatives
26%
and OTC
Futures and OTC Markets Issuer
Clearing Services
25% 35% 6%
Technical
Services
Equity Trading 8%
Options Services
3% Equity Post-Trade 25%
Services Information
Services
Cash Market 14% 11%
Settlement
7%
Cash
Cash Market
Market
Trading
Clearing 6%
7%
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• Domestic leader in all segments, Asian leader in A$ derivatives

• Derivatives and OTC includes interest rate, equity index, electricity and commodities futures, single stock options and clearing for OTC A$ interest rate swaps

• Depositories (equities and fixed income) hold $3.4 trillion

• Cash market trading: 89% market share

• Cash market clearing and settlement conducted for entire market

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ASX Group Priorities Business initiatives progressing

• Innovate in fragmented equity market – Centre Point

Global Leader in A$ and NZ$

• Build on leadership in A$ and NZ$ derivatives markets – OTC, Collateral

Investment Supermarket

• Grow listings franchise – NZ, Tech

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

• Upgrade technology infrastructure – trading, risk, clearing

World-Class Infrastructure

• Be leader in post-trade innovation – Distributed Ledger Technology

• 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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Global Leader in A$ and NZ$ Markets Growth in OTC Clearing & Collateral Management Services

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OTC Notional Value Cleared ($ Billion)
261
227
207
188
154
137 136 140 137
118 121
102 104
71
62
43
2 5 [17 15 20 ]
• Notional value of OTC interest rate swaps cleared was
$1.5 trillion March 16 YTD ($445 billion pcp)
• Six active users
• Margin optimisation service to be launched in 2016
providing institutions the ability to maximise margin
offsets between Futures and OTC
•
Futures and OTC fee rebates could increase by $2-3
million in 2H16 compared to 1H16
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
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Collateral Balances ($ Billion)
7
5 5
4 4 4 4 4 4 5
4 4
3
3 3 3
3 3 3
2
2
• Notable balance growth in repo transactions
• Eight active users
• Tri-party securities lending service (bond vs bond)
currently under development and expected to
commence in FY17
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 Jan-16 Feb-16 Mar-16
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Investment Supermarket

Grow Listings Franchise (FY16 Listings)

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Areas of Focus

Grow listings franchise

• Attractive and flexible capital market listing rules – 25% increase in capital raised March 16 YTD

• New Zealand simplified dual listing process – 42 NZ companies

• NZ IPOs – 4 YTD

• Technology sector – 30 listings¹ YTD

• ETFs – 161 ETFs listed totaling $21.3 billion

Investment Supermarket

• Domestic equities

• Government bonds

• Corporate bonds

• International shares – regulatory considerations will drive service design

• mFund expansion – 48 fund managers offering 161 funds via 18 brokers

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11

1. Includes IPOs and backdoor listings

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Technology Transformation Key projects progressing

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Cash
Futures
Market
Trading Trading
Trading
platforms including ETOs
Jul to
Nov 2016
2017 Equities
Derivatives
Clearing/ Distributed Ledger
Clearing settlement Technology
Phase I
Prototype
platforms
FY17 / FY18 Development
FY17
Market
Market Risk Phase II
integrity
Monitoring Management
and risk
2016 platforms 2016
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Progress

• Trading platform replacement underway

• measures taken to de-risk implementation

• customer engagement and readiness progressing

• futures delivery July – November 2016, equities delivery 2017

• Market monitoring and risk management progressing, derivatives clearing on track

• Distributed Ledger Technology potential replacement for CHESS. Capability assessment throughout FY17

• Managed within Group capex, approximately $50 million in FY16

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Opportunity for Post-Trade Innovation Distributed Ledger Environment

Investors

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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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Distributed Ledger Technology Assessing the opportunity

Current Focus

• Investment in Digital Asset Holdings (DAH) of $14.9m for a 5% stake plus rights to acquire additional 5%

• ASX and DAH working together to develop a beta software system to assess the technology

• Engaging with regulators, stakeholders and customers

• 6–12 month process of initial evaluation

• Development alongside existing CHESS platform

• Final decision on post-trade technology in 2017

Digital Asset Holdings Investors

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Regulatory Environment

Developments Last Three Years

Investors

• Equity market regulations supporting end-investors

Systemic risk

• Location requirements

• Global regulatory and capital standards adopted

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

Global competitiveness

• Post-trade solutions in place

• ESMA recognition received, CFTC exemption relief

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

Equities Clearing Review

Safe and effective competition

• Treasurer announced commitment to putting in place safe and effective competition for cash equities clearing

• Minimum 18 month period to transition

• Changes to ASX’s 15% shareholder limit to bring into line with banks and insurance companies – Treasurer can act in national interest

• Confirmation of domestic location requirements

ASX cash equities clearing and settlement

• Key customer and stakeholder commitments on engagement, pricing, access and confidential information confirmed

• 10% reduction in clearing fees from 1 July 2016

• Retain rebate schemes in FY17

• Equities trading rebate scheme discontinued from 1 July 2016

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Operating Expenses – 9 Months to 31 March 2016

	YTD March 16 $m	YTD March 15 $m	% Variance
Staff	76.0 73.4 (3.5%)
Other	51.5 46.8 (10.1%)
Total Operating Expenses	127.5 120.2 (6.1%)

• Staff costs up 3.5%

• Average headcount up 0.8% to 530 FTEs

• 547 FTEs at 31 March 16, up from 534 at 31 December 2015

• CEO transition arrangements

• Other costs up 10.1%

• Higher equipment and administration costs to support accelerated initiatives

• Higher variable costs due to increased CHESS holding statements and postage costs

• Guidance FY16 approximately 6% expense increase

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Unaudited result Operating expenses as per the Group segment reporting Variance expressed favourable / (unfavourable)

16

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Capital Expenditure ($ Million)

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FY12 $39.1m FY13 $38.9m FY14 $43.2m FY15 $44.4m FY16 approx $50m
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 2H16
Normal ALC (Data and Customer Support Centre) Post-Trade Technology Transformation¹
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Highlights

• March 16 YTD expenditure $30.6 million

• Focus on technology transformation program

• Phase I to be complete in FY17

• Technology transformation $15.5 million March 16 YTD

• Guidance FY16 approximately $50 million

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17

1. Technology transformation includes new trading platform, risk management and market monitoring systems

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Financial Results – 9 Months to 31 March 2016

Revenues Expenses EBITDA Underlying NPAT Statutory NPAT $552.8 m $127.5m $425.3m $317.4m $317.4m 7.0% (6.1%) 7.2% 5.9% 6.2%

Positive revenue growth of 7.0%

• Growth in all major categories compared to pcp supported by robust trading activity

• Impact of futures fee reductions $11.2m vs $10.5m pcp, continued growth in OTC clearing

• Lower average listings activity in the third quarter of FY16 compared to 1H16

Expense growth of 6.1%, FY16 guidance of approximately 6%

• Acceleration of investment in post-trade services

• CEO transition arrangements, renewal underway

Capital expenditure $30.6 million, FY16 guidance unchanged at approximately $50 million

• Measures taken to de-risk technology implementation

Continued investment in strategic positioning

• Implementation of strategy and initiatives broadly on track

• Greater certainty on market structure for equities clearing, assessment of Distributed Ledger Technology underway

Unaudited result

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18

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