Tel Aviv Stock Exchange Ltd. — Earnings Release 2021

Aug 11, 2021

August 11, 2021 395760.docx

THE TEL-AVIV STOCK EXCHANGE LTD. REPORTED SECOND QUARTER 2021 RESULTS

August 11, 2021 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the second quarter ended June 30, 2021.1

General

The first half of 2021 was characterized by the gradual lifting of all of the restrictions that were imposed on the business sector following the coronavirus outbreak, this in light of the expansion of the vaccination campaign and the resulting reduction in the number of cases in Israel, which in turn contributed to the economy resuming activity and to a reduction in the unemployment rate.

In the Israeli capital market, the number of companies carrying out an IPO on TASE continued to rise in the first half of 2021 (63 companies) of all sectors that are traded on TASE. Since the beginning of the year, the value of the assets traded on TASE has risen and the average trading volume in the first half of 2021 remained similar to the average trading volumes in all year of 2020, as opposed to the high trading volumes and the strong fluctuations in the value of the assets in the first half of 2020, on the backdrop of the uncertainty that prevailed in the market at the time following the coronavirus outbreak in Israel.

The increase in morbidity rates that started at the end of the second quarter of 2021 did not materially affect the aforementioned trends concerning the value of the assets traded on TASE and the trading volumes. Additionally, to the date of publishing of the financial statements, in view of the continued rise in morbidity rates in August, the Government approved the return of some of the restrictions that were lifted during the second quarter of 2021. Nevertheless, based on the nature of trading in the first half of 2021, the Company believes that, to the extent that the rise in morbidity is short in term and will not entail the imposition of additional restrictions on the economy, no material adverse effect on the activity of the Company is expected.

1.1 Highlights of TASE's Results for the second quarter of 2021

• TASE revenues amounted to NIS 84.6 million in the second quarter of 2021, an increase of 15% compared to the corresponding quarter last year, due mainly to an increase in revenue other than from trading and clearing and a non-recurring income from the Ministry of Finance in respect of the listing fee, until December 31, 2020, of Governmental bonds in an amount of NIS 3.8 million.
• Adjusted EBITDA increased in the second quarter of 2021 to NIS 26.2 million, compared to NIS 21.0 million in the corresponding quarter last year, an increase of 25%.
• Financing income decreased in the second quarter of 2021 to NIS 1.3 million, compared to financing income of NIS 3.5 million in the corresponding quarter last year, a decrease of 62%.
• Adjusted net profit amounted to NIS 12.3 million in the second quarter of 2021, compared to NIS 10.4 million adjusted net profit in the corresponding quarter last year, an increase of 18%.

1.2 Business and Corporate Highlights for the second quarter and the first half of 2021 BUSINESS HIGHLIGHTS

In the second quarter of 2021, a total of NIS 8 billion was raised on TASE in shares, an increase of 368% over the corresponding quarter in the previous year, of which a total of NIS 4.7 billion was

¹ The Board of Directors of TASE today approved the Consolidated Financial Statement as of June 30, 2021. The consolidated financial statements of the Company were prepared in accordance with IFRS.

This is an English translation of parts of the information included in the approved financial statements. In the event of any discrepancy between the original Hebrew and the translation to English, the Hebrew version alone will prevail. The consolidated financial statements in the English Version will be published on the website by the end of September 2021.

raised in 30 IPO's. In the first half of 2021, NIS 17.3 billion was raised on TASE in shares, an increase of 225% over the corresponding period in the previous year, of which a total of NIS 8 billion was raised in 63 IPOs (27 IPOs in total during the entire year of 2020), mostly in the high-tech sector. Since the end of the second quarter to date, 12 new companies joined TASE, bringing the total number of new companies that joined TASE since the beginning of 2021 to 75. For information regarding deferred income from listing fees as of June 30,2021 and the forecast for recognition of income, see Appendix hereto– Deferred income from listing fees.

• The leading indices TA-35, TA-90, TA-125 and TA-SME60 have risen by 4.9%, 8.7% ,6.0% and 3.4% respectively, in the second quarter of 2021 and by 12.3%, 15.3% ,12.5% and 16.8% respectively, in the first half of 2021. The average daily trading volume of shares in the second quarter of 2021 amounted to approximately NIS 1.9 billion, similar to the average daily trading volume in the second quarter of the previous year and in the year 2020.
• The average daily trading volume of corporate bonds in the second quarter of 2021 amounted to approximately NIS 0.9 billion, a 25% decrease compared to the volumes in the corresponding quarter of the previous year and a 19% decrease compared to the volumes in the year 2020. The average daily trading volume of government bonds in the second quarter of 2021 amounted to approximately NIS 2.9 billion, an 11% decrease compared to the volumes in the second quarter of 2020 and a 7% decrease compared to the volumes in the year 2020.
• Pursuant to the agreement that TASE and TASE-CH have signed with the Government of Israel regarding the listing fees of government bonds in May 2021 (see details in section 4.2 below), in the years 2021 to 2025 (inclusive) the Company will recognize income of 3.2 million a year and, in the years 2026 to 2031 (inclusive) income of NIS 2.1 million will be recognized each year.

SEASONALITY

The revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days. In the second quarter of 2021, there were 61 trading days, compared to 57 days in the corresponding quarter last year (a 7% increase). In the first six months of 2021 there were 123 trading days, compared to 120 trading days in the corresponding period last year, a 2.5% increase. Due to the upcoming holidays, there will be a reduced number of trading days in the third quarter of 2021 there will be 56, compared to 62 days in the corresponding quarter last year, and 65 days in the fourth quarter compared to 66 in the corresponding quarter last year.

2. Presented below is information relating to the results for the second quarter of 2021 (NIS, in thousands)

	Quarter ended		Difference
	30.06.2021	30.06.2020	Amount	%
Revenue from services	84,592	73,547	11,045	15%
Expenses	70,422	63,908	6,514	10%
Profit before financing income, net	14,170	9,639	4,531	47%
Financing income	1,338	3,505	(2,167)	(62%)
Taxes on income	3,435	3,114	321	10%
Net profit	12,073	10,030	2,043	20%
% of total revenue from services for the quarter	14.3%	13.6%

Three Months Ended June 30, 2021 Compared to the Three Months Ended June 30, 2020 Statement of Profit or Loss

• Revenue in the second quarter of 2021 amounted to NIS 84.6 million, compared to revenue of NIS 73.5 million in the corresponding quarter last year, an increase of 15%. The increase in revenue is due mainly to an increase in revenue other than from trading and clearing (approx. 10% of total revenue) and a nonrecurring income from the Ministry of Finance in respect of the listing fees, until December 31, 2020, of Government bonds in an amount of NIS 3.8 million (approx. 5% of total revenue, see section 4.2 below).
• The costs in the second quarter of 2021 amounted to NIS 70.4 million, compared to costs of NIS 63.9 million in the corresponding quarter last year, an increase of 10%. The increase in the costs is due mainly to employee benefits expenses (approx. 5% of total costs) resulting from salary updates, increase in headcount and an increase in overtime. Marketing campaign expenses (approx. 3% of total costs) and an increase in municipal taxes, building maintenance and depreciation and amortization (approx. 1% of total costs, each).
• Net financing income in the second quarter of 2021 amounted to NIS 1.3 million, compared to net financing income of NIS 3.5 million in the corresponding quarter last year. The decrease in financing income is due to a difference in the yields on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios (0.7% yield in the second quarter, compared to 1.9%in the corresponding quarter last year).
• The profit in the second quarter of 2021 totaled NIS 12.1 million, compared to NIS 10.0 million in the corresponding quarter last year, an increase of 20%. The increase in profit was due to higher revenue from services other than trading and clearing services, which were offset by the increase in employee benefits expenses, marketing campaign expenses and a decrease in financing income, as described above.

	Quarter ended
	30.06.2021	30.06.2020	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	101,224,600	100,000,000	1%
Diluted earnings per share	104,642,251	103,099,590	1%
Basic earnings per share in NIS	0.119	0.100	19%
Diluted earnings per share in NIS	0.115	0.097	19%

The revenue in the second quarter of 2021 – below is the composition of the second quarter's revenue, compared to the corresponding quarter last year:

Quarter ended
Revenue from services	30.06.2021	% of the Company's total revenues	30.06.2020	% of the Company's total revenues	% change
	31,649 37% 32,187 44% (2%) The decrease in revenue from trading and clearing commissions is due to a reduction in the trading volumes of corporate bonds, derivatives and T-bills compared to the trading
Trading and clearing commissions	volumes in the corresponding quarter last year, resulting in a 9% decrease in revenue from trading and clearing commissions. This was due to the effect of the coronavirus crisis outbreak in the first quarter last year on the trading volumes in the second quarter of 2020. In opposition, the greater number of trading days in the second quarter compared to the corresponding period last year resulted in a partial 7% offset of the reduction in revenue from trading and clearing.
	18,347	22%	14,765	20%	24%
The increase is due mainly to an increase in revenue from listing fees, including by virtue of an agreement signed between TASE and TASE-CH and the Ministry of Finance in May 2021, effective from the beginning of 2021 (see details in section 4.2 below) - Listing fees approx. 13% of the revenue from listing fees and levies (of which 5% relates to revenue and levies for the first quarter). Additionally, an increase in the number of prospectuses submitted for review in the second quarter, an increase in the number of companies and funds that pay an annual levy and the charging of new annual levies, which started to be collected in 2021, have contributed 6%, 3% and 2%, respectively, to the increase in total revenue from listing fees and levies.
	16,945	20%	14,127	19%	20%
Clearing House services	Most of the increase in revenue from Clearing House services is due to an increase in custodial fees resulting from the appreciation in the value of the Clearing House managed assets, which contributed 11% to the increase in total revenue from Clearing House services. Additionally, an increase in revenue from Clearing House services to members, in revenue from new Clearing House services and in revenue from Clearing House services to companies, resulted in a 5%, 3% and 1% increase, respectively, in revenue from clearing services.
	13,195	16%	12,183	17%	8%
Data distribution and connectivity services	The increase in revenue from data distribution and connectivity services is due mainly to an increase in revenue from data distribution to customers outside Israel, which has contributed 4% to the increase in revenue, inter alia, in view of a modification to the pricelist that came into effect at the beginning of the second quarter of 2021. Additionally, an increase in revenue from the distribution of derivative data and in revenue from connectivity services (BSO and Colocation), have each contributed to a 2% increase in revenue from data distribution and connectivity services.
	4,456	5%	285	-	1464%
Other revenue	The increase in other revenue is due mainly to the effect of an agreement signed between TASE and TASE-CH and the Ministry of Finance in May 2021 (see details in section 4.2 below), effective from the beginning of 2021, which provides for the payment to the Company of a settlement amount of NIS 3.8 million in respect of Government bonds that were listed in the lending pool in the period up to December 31, 2020.
Total revenue from services	84,592	100%	73,547	100%	15%

Adjusted net profit and adjusted EBITDA data2

	Quarter ended		Difference
	30.06.2021	30.06.2020	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income, net	14,170	9,639	4,531
Adjustments:
Share-based payment expenses	236	370	(134)
Depreciation and capital losses	11,821	10,968	853
Adjusted EBITDA for the quarter:	26,227	20,977	5,250	25%
% of total revenue from services for the quarter	31.0%	28.5%
Adjusted profit for the quarter:
Profit for the quarter	12,073	10,030	2,043
Adjustments:
Share-based payment expenses	236	370	(134)
Adjusted profit for the quarter:	12,309	10,400	1,909	18%
% of total revenue from services for the quarter	14.6%	14.1%

• The adjusted EBITDA in the second quarter of 2021 totaled NIS 26.2 million, compared to NIS 21.0 million in the corresponding quarter last year, an increase of 25%. The increase is due to an increase in revenue from services, other than trading and clearing, which was mostly offset by an increase in employee benefits costs and marketing expenses any by a reduction in financing income.
• The adjusted profit in the second quarter of 2021 totaled NIS 12.3 million, compared to NIS 10.4 million in the corresponding quarter last year, an increase of 18%. The increase is due mainly to an increase in revenue from services, other than trading and clearing, which was mostly offset by an increase in employee benefits costs and marketing expenses any by a reduction in financing income.

Adjusted data for the profit and EBITDA (operating profit before interest, tax, depreciation and amortization): These data are² based on the data in the Company's financial statements for the reported periods, after eliminating the effects of certain events and factors, as explained above, that are not typical of the Company's operating activities.

It is hereby clarified that the data presented above are not presented in accordance with generally accepted accounting principles and do not reflect the Company's cash flows from operating activities or its operating profits and net profit and, accordingly do not constitute a substitute for the data in the Company's financial statements regarding the operating profit and/or the net profit. Nevertheless, in the Company's opinion, these data enable a better comparison to be made of the Company's performance in the reported periods.

3. Presented below is information relating to the results for the six months ended June 30,2021 (NIS, in thousands)

	Six Months ended		Difference
	30.06.2021	30.06.2020	Amount	%
Revenue from services	162,962	154,754	8,208	5%
Expenses	136,096	127,528	8,568	7%
Profit before financing income (expenses), net	26,866	27,226	(360)	(1%)
Financing income (expenses)	1,472	(902)	2,374	-
Taxes on income	6,604	6,064	540	9%
Net profit	21,734	20,260	1,474	7%
% of total revenue from services for the Period	13.3%	13.1%

Six Months Ended June 30, 2021 Compared to the Six Months Ended June 30, 2020 Statement of Profit or Loss

• Revenue in the first half of 2021 amounted to NIS 163.0 million, as compared to revenue of NIS 154.8 million in the corresponding period last year, a 5% increase. The increase in revenue is due mainly to the increase in revenue other than from trading and clearing (approx. 7% increase in total revenue) and from a non-recurring income from the Ministry of Finance in respect of the listing fees, until December 31, 2020, of Government bonds in an amount of NIS 3.8 million (an increase of approx. 2% in total revenue. see section 4.2 below), which were offset by a reduction in revenue from trading and clearing (a decrease of approx. 4% in total revenue).
• The costs in the first half of 2021 totaled NIS 136.1 million, compared to costs of NIS 127.5 million in the corresponding period last year, a 7% increase. The increase in the costs is due mainly to employee benefits expenses (approx. 3% of total costs), marketing expenses (approx. 2% of total costs) and to an increase in depreciation expenses (approx. 1% of total costs).
• Financing income (expenses), net in the first half of 2021 totaled NIS 1.5 million, as compared to financing expenses, net of NIS 0.9 million in the corresponding period last year. The transition to financing income resulted from positive yields of 0.75% in the first half of 2021 on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios, compared to negative yields of 0.28% in the corresponding period last year.
• The profit in the first half of 2021 totaled NIS 21.7 million, compared to NIS 20.3 million in the corresponding period last year, a 7% increase. The increase in profit was due to the increase in revenue from services other than trading and clearing, and the transition to financing income, which were partly offset by the increase in expenses, as described above.

	Six Months ended
	30.06.2021	30.06.2020	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	101,188,717	100,000,000	1%
Diluted earnings per share	104,403,895	102,532,446	2%
Basic earnings per share in NIS	0.215	0.203	6%
Diluted earnings per share in NIS	0.208	0.198	5%

The revenue in the first half of 2021 – below is the composition of the first half of 2021 revenue, compared to the corresponding period last year:

	Six Months ended
Revenue from services	30.06.2021	% of the Company's total revenues	30.06.2020	% of the Company's total revenues	% change
	65,764	40%	71,867	47%	(8%)
Trading and clearing commissions	The decrease in revenue from trading and clearing commissions is due mainly to a reduction in the volume of creations/redemptions in mutual funds and a reduction in the trading volumes of corporate bonds, shares, derivatives and T-bills on TASE compared to the trading volumes in the corresponding period last year, this stemming from the coronavirus crisis outbreak in the first quarter of 2020, resulting in a decrease of 6%, 4%, 3%, 2% and 1%, respectively, in revenue from trading and clearing commissions. In opposition, an increase in the effective commission on the clearing of mutual funds, in view of the lower volume of transactions that are affected by the existence of a maximum commission, and the greater number of trading days in the first half of 2021 compared to the corresponding period last year resulted in a partial 5% and 3% offset of the reduction in revenue from trading and clearing, respectively.
	34,749	21%	29,742	19%	17%
Listing fees and levies	Most of the 7% increase in revenue from listing fees and levies is due to an increase in revenue from listing fees of government bonds, mainly as a result of an agreement signed between TASE and TASE-CH and the Ministry of Finance in May 2021, effective from the beginning of 2021 (see details in section 4.2 below). Additionally, an increase in the number of prospectuses submitted for review in the period, an increase in revenue from existing levies and the charging of new annual levies, which started to be collected in 2021, have contributed 6%, 2% and 2%, respectively, to the increase in total revenue from listing fees and levies.
	31,996	20%	28,495	18%	12%
Clearing House services	Most of the increase in revenue from Clearing House services is due to an increase in custodial fees resulting from the appreciation in the value of the Clearing House managed assets, which contributed 8% to the increase in total revenue from Clearing House services. Additionally, an increase in revenue from Clearing House services to members and an increase in revenue from new Clearing House services, each resulted in a 2% increase in revenue from clearing services.
	25,825	16%	23,798	15%	9%
Data distribution and connectivity services	Most of the increase in revenue from data distribution and connectivity services is due to the increase in revenue from data distribution to customers outside Israel and from data distribution to private customers in Israel, which contributed 3% and 2%, respectively, and to the increase in revenue from the distribution of derivative data which contributed 2% to the increase in total revenue from data distribution and connectivity services. Additionally, an increase in revenue from BSO and Colocation services resulted in a 2% increase in revenue from data distribution and connectivity services.
	4,628	3%	852	1%	443%
Other revenue	The increase in other revenue is due mainly to the effect of an agreement signed between TASE and the Ministry of Finance in May 2021 (see details in section 4.2 below), which provides for the payment to the company of a settlement amount of NIS 3.8 million in respect of government bonds that were listed in the lending pool in the period up to December 31, 2020.
Total revenue from services	162,962	100%	154,754	100%	5%

Adjusted net profit and adjusted EBITDA data3

	Six Months ended		Difference
	30.06.2021	30.06.2020	Amount	%
Adjusted EBITDA for the period:
Profit before financing income, net	26,866	27,226	(360)
Adjustments:
Share-based payment expenses	469	784	(315)
Depreciation and capital losses	23,448	21,857	1,591
Adjusted EBITDA for the period:	50,783	49,867	916	2%
% of total revenue from services for the period	31.2%	32.2%
Adjusted profit for the period:
Profit for the period	21,734	20,260	1,474
Adjustments:
Share-based payment expenses	469	784	(315)
Adjusted profit for the period:	22,203	21,044	1,159	6%
% of total revenue from services for the period	13.6%	13.6%

• The adjusted EBITDA in the first half of 2021 totaled NIS 50.8 million, compared to NIS 49.9 million in the corresponding period last year, a 2% increase. The increase is due to an increase in revenue from services, other than trading and clearing, which were partly offset, mainly by the increase in employee benefits expense and marketing expenses.
• The adjusted profit in the first half of 2021 totaled NIS 22.2 million, compared to NIS 21.0 million in the corresponding period last year, a 6% increase. The increase is due mainly to the higher revenue from services, with the exception of trading and clearing, which were partly offset, mainly by the increase in employee benefits expense, marketing expenses and depreciation expenses.

Adjusted data for the profit and EBITDA (operating profit before interest, tax, depreciation and amortization): These data are ³ based on the data in the Company's financial statements for the reported periods, after eliminating the effects of certain events and factors, as explained above, that are not typical of the Company's operating activities.

It is hereby clarified that the data presented above are not presented in accordance with generally accepted accounting principles and do not reflect the Company's cash flows from operating activities or its operating profits and net profit and, accordingly do not constitute a substitute for the data in the Company's financial statements regarding the operating profit and/or the net profit. Nevertheless, in the Company's opinion, these data enable a better comparison to be made of the Company's performance in the reported periods.

Presented below is information relating to the financial position as of June 30, 2021 (NIS, in thousands):

	As of 30.06.2021	As of 31.12.2020
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short term financial assets	360,177	346,712	13,465	4%
Other current assets	30,408	19,303	11,105	58%
Property and equipment and intangible assets	466,185	451,196	14,989	3%
Other non-current assets	18,079	17,460	619	4%
Total assets (*)	874,849	834,671	40,178	5%
Current liabilities	98,654	75,141	23,513	31%
Non-current liabilities	138,150	128,690	9,460	7%
Total liabilities (*)	236,804	203,831	32,973	16%
Total equity	638,045	630,840	7,205	1%
Ratio of equity to total assets (*)	72.9%	75.6%
Surplus equity over regulatory requirements (in NIS millions)	290	298	(8)	(3%)
Surplus liquidity over regulatory requirements (in NIS millions)	127	142	(15)	(10%)

(*) The total assets and liabilities in the statement of financial position as of June 30, 2021 and December 31, 2020, include a balance of assets/liabilities in respect of open derivative positions amounting to NIS 494.0 million and NIS 353.2 million, respectively, which for reasons of convenience in analyzing the financial position have been offset against each other in this report.

• The total assets as of June 30, 2021 amounted to NIS 874.8 million, a 5% increase compared to December 31, 2020. Most of the increase is due to an increase in property and equipment and intangible assets, cash and cash equivalents, in other receivables and trade receivables.
• The total liabilities as of June 30, 2021 amounted to NIS 236.8 million, a 16% increase compared to December 31, 2020. Most of the increase is due to annual levies and listing fees collected in advance and lease liabilities.
• The total equity as of June 30, 2021 amounted to NIS 638.0 million, a 1% increase compared to December 31, 2020. Most of the increase is due to the profit in the first six-month period of 2021, totaling NIS 21.7 million which was partly offset by a dividend in an amount of NIS 18.5 million paid in the reported period.

Presented below are Cash flows for the three months ended June 30, 2021 (NIS, in millions):

		Three months ended June 30,
	Item	2021	2020	Explanations of the Company
Net cash from operating activities	Adjusted EBITDA	26.2	21.0	The increase in adjusted EBITDA is due mainly to an increase in revenue from services and was partly offset by an increase in expenses.
	Changes in working capital	(7.3)	2.3	The decrease in working capital is due mainly to the timing of payments and receipts between the quarters, primarily with respect to employee benefits, trade payables and trade receivables.
	Financing and tax	(1.6)	(2.3)	The increase is due mainly to lower tax payments, net in the quarter, compared to the corresponding quarter last year.
	Total	17.3	21.0	Cash flows from operating activities decreased by 18% between the quarters due mainly to changes in working capital.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(9.6)	(9.0)	The increase is due to the timing of implementation of the Group's investment work plans in the quarters
	Disposal (acquisition) of financial assets, net	(2.3)	(3.5)	Disposal of assets in accordance with the Group's investment policy.
	Total	(11.9)	(12.5)
	Lease payments	(2.3)	(2.5)
Net cash for financing activities	Dividend payment	(18.5)	(8.8)	The increase reflects the effect of the increase in profit between 2019 and 2020 on the amount of the dividend distribution.
	Total	(20.8)	(11.3)
equivalents	Total decrease in cash and cash	(15.4)	(2.8)

Presented below are Cash flows for the Six months ended June 30, 2021 (NIS, in millions):

		Data for the six months ended June 30, 2021	Data for the six months ended June 30, 2020	Explanations of the Company
Net cash from operating activities	Adjusted EBITDA	50.8	49.9	The increase in adjusted EBITDA is due mainly to an increase in the in revenue from services, other than trading and clearing, and was partly offset by an increase in expenses, primarily employee benefits expenses and marketing expenses.
	Changes in working capital	11.1	19.0	The decrease in working capital is due to the timing of payments and receipts between the periods, primarily with respect to employee benefits, trade receivables and other receivables and was partly offset by an increase in the balance of deferred revenue from listing fees and levies, trade payables and other payables.
	Financing and tax	(2.8)	(1.3)	The change is due mainly to the increase in tax payments in the period compared to the corresponding period last year.
	Total	59.1	67.6	Cash flows from operating activities decreased by 13% between the periods.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(22.9)	(17.1)
	Acquisition of financial assets, net	(3.7)	(2.0)
	Total	(26.6)	(19.1)
Net cash for financing activities	Lease payments	(4.6)	(5.0)
	Dividend payment	(18.5)	(8.8)	The increase reflects the effect of the increase in profit between 2019 and 2020 on the amount of the dividend distribution.
	Total	(23.1)	(13.8)
Total increase in cash and cash equivalents		9.4	34.7

4. Events at the reporting date and there after

4.1 On April 5, 2021, a dividend of NIS 18,450 thousand (representing NIS 0.1823 per ordinary share) was paid to the Company's shareholders of record as at March 25, 2021.

4.2 Claim Against the Ministry of Finance Concerning Listing Fees

On May 5, 2020, the Company filed a monetary claim by summary procedure with the Tel Aviv District Court against the State of Israel, the Ministry of Finance - Accountant General, in an amount of approximately NIS 20.13 million (including VAT). The cause of the claim is default in payment of the listing fees payable by virtue of the TASE Rules in respect of Government bonds that had been issued in the period from May 2013 to March 2020 (inclusive), within the framework of the Ministry of Finance's lending pool.

Shortly before the end of May 2021, within the framework of discussions for a compromise in the Company's claim, the Company and TASE-CH entered into a series of agreements with the Ministry of Finance pursuant to which, inter alia, the term of the agreement for the management of the lending pool will be extended until December 31, 2025 (this despite TASE-CH's notification from July 2020 that is does not wish to extend the aforesaid agreement beyond September 2021, its end-date at the time of the notification), and, in settlement of all the Company's claims against the Ministry of Finance in said claim with respect to the period ending on December 31, 2020, the Company will be paid a settlement amount of NIS 3,846 thousand (plus VAT). As the Company has so far not recognized in its financial statements revenue from the listing fees that are covered in this claim, the settlement amount (before tax) was fully recognized as other income in the second quarter of 2021.

In addition to the aforesaid, the agreement provides for the payments by the Ministry of Finance for the listing of securities that are issued by the State of Israel, in an amount of NIS 0.3 million per calendar quarter under the lending pool and NIS 1.2 million per calendar quarter outside the lending pool. In June 2021, an amendment to the TASE Rules concerning the listing fees for the aforesaid securities was approved within the framework of the compromise scheme.

Following the fulfillment of the conditions for the agreement in June 2021, revenue in amount of NIS 0.7 million for the first quarter of 2021 was recognized in "revenue from listing fees and levies" in the second quarter of 2021 (NIS 1.6 million for the first six months).

It should be noted that, upon the termination of the agreement (at the end of 5 years), unless otherwise agreed between the parties, the Ministry of Finance will pay for the listing of government bonds in the lending pool a fixed quarterly amount of NIS 150 thousand and for bonds that are listed outside the lending pool, the Ministry of Finance will pay listing fees to TASE in accordance with the TASE Rules and the related Regulations, as set out in Section 6.C. in Chapter Thirteen of the Regulations pursuant to Part Two of the TASE Rules, which determines that the listing fees of obligatory certificates that are issued by the State of Israel, other than short-term government bonds, will be an amount equal to 0.004% of their value. Notwithstanding the foresaid, no listing fees will be payable on obligatory certificates issued by the State of Israel overseas, which on the date of their listing on TASE are also listed overseas.

The listing fees on obligatory certificates issued by the State of Israel that are short-term government bonds will be an amount equal to 0.0007% of their value.

4.3 The Company entered into an agreement with a foreign state for the rent of one floor at the TASE building (with an option to rent an additional floor), to serve as the offices of the foreign state's embassy. The second rent period was set at two years commencing on April 18, 2021 (with an option to extend the period for an additional three years, but subject to a right of exit with an advance notice of at least 6 months). The option to rent an additional floor has expired and the Company is currently negotiating with potential renters.

4.4 Investment in the capital of the Company and transactions in its shares – transfer of surplus consideration from the sale of Company shares by other shareholders

For details regarding the position of the Israel Securities Authority's staff concerning the contemplated scheme for the acquisition of shares from TASE members and the allotment of an identical quantity of new shares and the applicability of the transitional provision prescribed in Amendment No. 63 of the Securities Law, see the Company's immediate report dated April 5, 2021 (reference no.: 2021-01- 056325). The information included in said report is included herein by way of reference. Further to the aforesaid, the Israel Securities Authority's staff and the representatives of the Company have held multiple discussions concerning the interpretation of the aforementioned transitional provision and alternatives for the advancement of the scheme, which regrettably have not been successful. Consequently, the discussions have been terminated for the time being.

4.5 Collaboration agreements – negotiations for a joint venture in connection with the Ukraine Stock Exchange

On May 23, 2021, the Company informed the representatives of the group of investors that, in view of the prolonged process and the uncertainty surrounding the feasibility of the joint venture in a manner that involves the Government of Ukraine, at this stage it is terminating further discussions for the advancement of the move.

4.6 Media campaigns

During the second quarter of 2021, the Company launched a media campaign (on the Web, social networks, in outdoor signs and in commercial broadcasting channels) that encourages investors and the general public to compare the fees that are charged by the TASE members. The campaign's costs amounted to NIS 3.8 million.

4.7 Compensation Plan for the Chairman of the Board of Directors for the Years 2018 through 2020

On May 25, 2021, the general meeting of the Company approved the granting of the discretionary annual bonus component to the Chairman of the Board of Directors of the Company for the year 2020, in an amount of NIS 154 thousand (before VAT).

4.8 Approval of a retirement bonus to Mr. Amnon Neubach, Chairman of the Board of Directors of the Company

On June 29, 2021, the Chairman of the Board of Directors of TASE, Mr. Amnon Neubach, announced his decision to retire several months prior to the end of his maximum tenure and end his office on August 1, 2021. On July 6, 2021, the Board of Directors of the Company, after obtaining the approval of the Compensation Committee on July 4, 2021, approved the payment of a retirement bonus to Mr. Neubach in an amount of NIS 700 thousand (before VAT). The retirement bonus is subject to approval by a special general meeting which is scheduled to convene on August 31, 2021. It is hereby clarified that, since the bonus is subject to approval by the Company's shareholders' meeting, and as such approval is scheduled to take place subsequent to the balance sheet date, the Company did not recognize an expense in its respect financial statements.

4.9 Officers' Insurance

On August, 2021 the Company approved the engagement in a new officers' liability insurance policy, for the period from August 1, 2021 through July 31, 2022 (inclusive), with a liability limit of US\$ 40 million per incident and in aggregate for the insurance period, for a premium of US\$ 268 thousand (hereafter: "the Current Policy"). The maximum deductible in the Current Policy (payable by the Company alone) is US\$ 400 thousand. Each of the subsidiaries will bear its pro-rata share of the cost of the premiums in accordance with the principles of the allocation model.

4.10Bill for the Establishment of a Dedicated Stock Exchange

On August 2, 2021, the aforesaid bill was published in the Official Gazette. The bill primarily contains the arrangements that are described in section 4.8 of the press release for the fourth quarter of 2020 published on March 16, 2021.

4.11Securities Trading Services - Foreign Exchange

During the reporting period, in April 2021, the Israel Securities Authority granted the Dubai Gold & Commodities Exchange (DGCX, hereafter: "the Foreign Exchange") a license pursuant to Section 49 A of the Securities Law to offer services for trading in financial instruments that are offered and listed outside Israel, which shall not include securities that are listed on an Israeli exchange or derivatives on such securities, with the exception of securities of Israeli corporations that are dual listed in Israel and outside Israel.

In addition to the aforesaid, the license is conditional upon the restriction of the Foreign Exchange's activities in Israel for qualified investors, as set out in the First Addendum to the Securities Law, with certain exceptions (hereafter: "Qualified Corporations"), and that such Qualified Corporations will not trade on the Foreign Exchange for others or offer others to trade through them on the Foreign Exchange; the marketing activities of the Foreign Exchange exclusively target Qualified Corporations; that the activity in Israel of the Foreign Exchange represent a small portion of the total activities of the Foreign Exchange, will not comprise activities that are not subject to the supervision of the Foreign Exchange's regulatory authorities and will not include activities that are specifically addressed to or customized for Israeli investors; and all orders that flow from Israel being handled, adjusted and cleared in the systems of the Foreign Exchange outside Israel. Subject to the stated above, the Israel Securities Authority has confirmed to the Foreign Exchange that its activity in the format described above shall not be deemed the management of an exchange in Israel contrary to the provisions of Section 45(A) of the Securities Law.

5. Information relating to the results for the second quarter of 2021 (NIS, in thousands) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	June 30,		December
			31,
Assets	2021	2020	2020
Current assets
Cash and cash equivalents Financial assets at fair value through profit or loss	151,612 208,565	138,658 204,597	142,154 204,558
Trade receivables	16,434	11,822	12,854
Other receivables	13,974	12,875	6,449
	390,585	367,952	366,015
Assets derived from clearing operations in respect of open derivative positions	494,024	462,406	353,193
Total current assets	884,609	830,358	719,208
Non-current assets
Cash restricted as to use	720	542	542
Other long-term receivables	2,520	2,866	2,110
Property and equipment, net	338,127	335,104	330,075
Intangible assets, net	128,058	115,978	121,121
Deferred tax assets	14,839	12,953	14,808
Total non-current assets	484,264	467,443	468,656
Total assets	1,368,873	1,297,801	1,187,864
Liabilities and Equity
Current liabilities
Trade payables	10,602	10,857	12,159
Short-term liabilities for employee benefits	28,703	40,069	32,013
Other payables	5,134	3,146	3,684
Current maturities of lease liabilities	8,746	7,334	4,302
Current tax liabilities	5,597	4,598	1,919
Deferred income from listing fees and levies	39,872	35,376	21,064
	98,654	101,380	75,141
Liabilities derived from clearing operations in respect of open derivative positions	494,024	462,406	353,193
Total current liabilities	592,678	563,786	428,334
Non-current liabilities
Non-current liabilities for employee benefits	36,747	32,012	40,413
Lease liabilities	18,107	10,585	9,089
Deferred income from listing fees and levies	82,576	74,413	78,646
Other liabilities	720	542	542
Total non-current liabilities	138,150	117,552	128,690
Equity
Remeasurement of net defined benefit liability	(14,457)	(11,423)	(17,909)
Share-based payment reserve	32,987	32,022	32,518
Other capital reserves	46,802	43,079	46,802
Retained earnings	572,713	552,785	569,429
Total equity	638,045	616,463	630,840
Total liabilities and equity	1,368,873	1,297,801	1,187,864

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (NIS, in thousands)

	Six months ended June 30,		Three months ended June 30,	Year ended December 31,
	2021 2020		2021	2020
Revenue from services:
Trading and clearing commissions	65,764	71,867	31,649	32,187	136,451
Listing fees and levies	34,749	29,742	18,347	14,765	59,887
Clearing House services	31,996	28,495	16,945	14,127	57,453
Data distribution and connectivity services	25,825	23,798	13,195	12,183	48,408
Other revenue	4,628	852	4,456	285	2,067
Total revenue from services	162,962	154,754	84,592	73,547	304,266
Cost of revenue:
Employee benefits expenses	75,306	70,959	37,910	34,568	139,355
Share-based payments expenses	469	784	236	370	1,280
Computer and communications expenses	14,034	13,138	7,325	6,850	26,753
Property taxes and building maintenance expenses	6,250	5,411	3,202	2,277	11,762
General and administrative expenses	4,715	4,580	2,034	2,205	9,373
Marketing expenses	7,312	5,411	5,585	3,981	11,098
Fee to the Israel Securities Authority	4,562	5,388	2,309	2,689	10,776
Depreciation and amortization	23,349	21,839	11,777	10,968	44,510
Other expenses	99	18	44	-	587
Total costs	136,096	127,528	70,422	63,908	255,494
Profit before financing income (expenses), net	26,866	27,226	14,170	9,639	48,772
Financing income	1,828	(458)	1,513	3,785	410
Financing expenses	356	444	175	280	983
Total financing income (expenses), net	1,472	(902)	1,338	3,505	(573)
Profit before taxes on income	28,338	26,324	15,508	13,144	48,199
Taxes on income	6,604	6,064	3,435	3,114	11,295
Profit for the period	21,734	20,260	12,073	10,030	36,904
Basic earnings per share (NIS)	0.215	0.203	0.119	0.100	0.368
Diluted earnings per share (NIS)	0.208	0.198	0.115	0.097	0.358

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (NIS in thousands)

	Share based payment reserve	Remeasurement of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at January 1, 2021	32,518	(17,909)	46,802	569,429	630,840
Profit for the period	-	-	-	21,734	21,734
Other comprehensive loss for the period	-	3,452	-	-	3,452
Total comprehensive income for the period	-	3,452	-	21,734	25,186
Dividend paid	-	-	-	(18,450)	(18,450)
Share-based payment	469	-	-	-	469
Balance at June 30, 2021	32,987	(14,457)	46,802	572,713	638,045

	Share based payment reserve	Remeasurement of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at April 1, 2021	32,751	(15,577)	46,802	560,640	624,616
Profit for the period	-	-	-	12,073	12,073
Other comprehensive loss for the period	-	1,120	-	-	1,120
Total comprehensive income for the period	-	1,120	-	12,073	13,193
Share-based payment	236	-	-	-	236
Balance at June 30, 2021	32,987	(14,457)	46,802	572,713	638,045

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Six months ended June 30,		Three months ended June 30,	Year ended December 31,
	2021	2020	2021	2020	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year	21,734	20,260	12,073	10,030	36,904
Expenses in respect of share-based payments	469	784	236	370	1,280
Tax expenses recognized in profit or loss	6,604	6,064	3,435	3,114	11,295
Net financing expenses (income) recognized in profit or loss	(1,472)	902	(1,338)	(3,505)	573
Depreciation and amortization	23,349	21,839	11,777	10,968	44,510
Loss from disposal of property and equipment and intangible assets	99	18	44	-	587
	50,783	49,867	26,227	20,977	95,149
Changes in asset and liability items:
Decrease (increase) in trade receivables and other receivables	(11,503)	(3,636)	971	3,235	2,514
Increase in receivables in respect to open derivative positions	(140,831)	(110,664)	156,478	114,436	(1,451)
Decrease (increase) in trade payables and other payables	2,379	(2,394)	1,569	(1,019)	(2,673)
Increase in deferred income from listing	22,738	16,491	(4,603)	(3,904)	6,412
fees and levies
Increase in payables in respect to open derivative positions	140,831	110,664	(156,478)	(114,436)	1,451
Increase in liabilities for employee	(2,493)	8,514	(5,276)	3,962	436
benefits
	61,904	68,842	18,888	23,251	101,838
Interest received	1,523	1,914	36	55	5,008
Interest paid	(350)	(395)	(178)	(280)	(723)
Tax Payments - operating activities	(3,992)	(2,826)	(1,447)	(2,113)	(10,694)
	(2,819)	(1,307)	(1,589)	(2,338)	(6,409)
Net cash provided by operating activities	59,085	67,535	17,299	20,913	95,429
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(4,859)	(4,650)	(1,707)	(1,583)	(11,145)
Proceeds from the disposal of property and equipment	14	-	-	-	-
Acquisitions of intangible assets	(7,753)	(4,403)	(2,864)	(2,967)	(11,161)
Payments in respect to costs capitalized to property and equipment and to intangible assets	(10,290)	(8,010)	(5,050)	(4,400)	(15,583)
Disposal (acquisition) of financial assets at fair value through profit or loss, net	(3,736)	(2,031)	(2,318)	(3,495)	(4,206)
Net cash used in investing activities	(26,624)	(19,094)	(11,939)	(12,445)	(42,095)

	Six months ended June 30,		Three months ended June 30,		Year ended December 31,
	2021	2020	2021	2020	2020
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(4,585)	(4,992)	(2,266)	(2,490)	(9,929)
Dividend paid	(18,450)	(8,770)	(18,450)	(8,770)	(8,770)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	-	-	3,723
Net cash used in financing activities	(23,035)	(13,762)	(20,716)	(11,260)	(14,976)
Net increase in cash and cash equivalents	9,426	34,679	(15,356)	(2,792)	38,358
Cash and cash equivalents, beginning of the period	142,154	103,928	166,996	141,491	103,928
Effect of changes in exchange rates on cash balances held in foreign currency	32	51	(28)	(41)	(132)
Cash and cash equivalents, end of the period	151,612	138,658	151,612	138,658	142,154

Quarterly statements of profit or loss for 2020 and for the first & second quarters of 2021 (NIS, in thousands)

	Jan Mar 2020	Apr-Jun 2020	Jul Sep 2020	Oct Dec 2020	Jan Mar 2021	Apr Jun 2021	2020
Item	(Unaudited)				(Audited)
Number of trading days	63	57	62	66	62	61	248
Revenue from services:
Trading and clearing commissions	39,680	32,187	31,097	33,487	34,115	31,649	136,451
Listing fees and levies	14,977	14,765	14,856	15,289	16,402	18,347	59,887
Clearing House services	14,368	14,127	13,952	15,006	15,051	16,945	57,453
Data distribution and connectivity services	11,615	12,183	11,738	12,872	12,630	13,195	48,408
Other revenue	567	285	387	828	172	4,456	2,067
Total revenue from services	81,207	73,547	72,030	77,482	78,370	84,592	304,266
Cost of revenue
Employee benefits expenses, net	36,391	34,568	34,989	33,407	37,396	37,910	139,355
Share-based payments expenses	414	370	250	246	233	236	1,280
Computer and communications expenses	6,288	6,850	6,736	6,879	6,709	7,325	26,753
Property taxes and building maintenance expenses	3,134	2,277	3,076	3,275	3,048	3,202	11,762
General and administrative expenses	2,375	2,205	2,504	2,289	2,681	2,034	9,373
Marketing expenses	1,430	3,981	2,693	2,994	1,727	5,585	11,098
Fee to the Israel Securities Authority	2,699	2,689	2,694	2,694	2,253	2,309	10,776
Depreciation and amortization expenses	10,871	10,968	11,126	11,545	11,572	11,777	44,510
Other expenses	18	-	1	568	55	44	587
Total cost of revenue	63,620	63,908	64,069	63,897	65,674	70,422	255,494
Profit before financing income (expenses), net	17,587	9,639	7,961	13,585	12,696	14,170	48,772
Financing income	(4,243)	3,785	(735)	1,603	315	1,513	410
Financing expenses	164	280	165	374	181	175	983
Total financing income (expenses), net	(4,407)	3,505	(900)	1,229	134	1,338	(573)
Profit before taxes on income	13,180	13,144	7,061	14,814	12,830	15,508	48,199
Taxes on income	2,950	3,114	1,692	3,539	3,169	3,435	11,295
Net profit	10,230	10,030	5,369	11,275	9,661	12,073	36,904
Other comprehensive income (loss):
Remeasurement of net defined benefit liability, net of tax	7,890	(2,408)	(5,710)	(776)	2,332	1,120	(1,004)
Comprehensive income for the year	18,120	7,622	(341)	10,499	11,993	13,193	35,900

ABOUT TASE

The Company, including by means of the subsidiaries consolidated in its financial statements (collectively, "the Group"), is engaged in the trading and clearing of securities

Within this framework, the Group is engaged in setting rules regarding the TASE companies, rules for listing securities on TASE (including the obligations that apply to companies whose securities are listed) and rules regarding trading on TASE. The Group operates trading systems and provides clearing services for both listed and non-listed securities. In addition, the Group operates a derivatives clearing house that writes derivatives that are traded on TASE, clears them and serves as a central counterparty for transactions in them. The Group provides central counterparty (CCP) services for transactions in securities and derivatives that are executed on TASE and also provides central securities depository (CSD) services for securities. The Group engages in calculating security indices, in authorizing the use of indices for the creation of financial instruments that track the indices, and in distributing TASE trading data. In addition, since January 2018, the Group has been operating a nominee company as defined in the Securities Law (securities traded on TASE are registered in the nominee company's name). The Company has one area of activity that is reported as a business segment in the Company's consolidated financial statements – trading and clearing transactions in securities

CONTACTS Yehuda van der Walde Orna Goren EVP, CFO Head of Communication and Public Relations Unit Email: cfo@tase.co.il Email: ir.tase@tase.co.il Tel: +972-76-8160442 Tel: +972-76-8160405

Appendix – Transactional Metrics

	Six months ended June 30,		Three months ended June 30,	Year ended December 31,
	2021	2020	2021	2020	2020
Number of trading days	123	120	61	57	248
SHARES
Market cap of Shares (ex. ETN / ETFs)	958	680	958	680	842
Market cap of ETN / ETFs on share indices	70	50	70	50	61
Total market cap (in NIS billions)	1028	730	1028	730	903
Shares ADV (ex. ETN / ETFs)	1,569	1,578	1,594	1,484	1,465
ETN / ETFs on share indices ADV	302	467	289	401	393
Total average daily volume (in NIS millions)	1,871	2,045	1,883	1,885	1,858
Average commissions	0.01068%	0.01040%	0.01045%	0.01086%	0.01067%
Revenue (in NIS thousands)	24,585	25,517	12,007	11,668	49,150
BONDS
Market cap of government bonds -unlinked	367	307	367	307	351
Market cap of government bonds -linked	306	259	306	259	280
Market cap of corporate bonds	393	372	393	372	388
Market cap of bonds (ex. ETN / ETFs)	1,066	938	1,066	938	1,019
Market cap of ETN / ETFs on bond indices	31	27	31	27	31
Total market cap (in NIS billions)	1,097	965	1,097	965	1,050
Government bonds - unlinked ADV (in NIS millions)	1,977	2,313	1,595	2,116	1,959
Government bonds - linked ADV (in NIS millions)	1,304	1,204	1,260	1,091	1,100
Corporate bonds ADV excluding ETNs (in NIS millions)	750	1,056	804	1,071	928
ETN / ETFs on bond indices ADV	126	172	117	160	148
Total Average daily volume (in NIS millions)	4,157	4,745	3,776	4,438	4,135
Government bonds unlinked - average commissions	0.00192%	0.00185%	0.00191%	0.00183%	0.00188%
Government bonds linked - average commissions	0.00278%	0.00295%	0.00288%	0.00313%	0.00294%
Corporate bonds - average commissions	0.00703%	0.00689%	0.00695%	0.00679%	0.00696%
Government bonds - unlinked (in NIS thousands)	4,674	5,142	1,854	2,210	9,116
Government bonds - linked (in NIS thousands)	4,466	4,264	2,212	1,950	8,022
Corporate bonds (in NIS thousands)	7,571	10,152	3,905	4,766	18,573
Other (MTS) (in NIS thousands)	150	75	77	33	135
Revenue (in NIS thousands)	16,861	19,633	8,048	8,959	35,846

	Six months ended June 30,		Three months ended June 30	Year ended December 31,
	2021	2020	2021	2020	2020
TREASURY BILLS
Market cap (in NIS billions)	101	93	101	93	87
Treasury bills ADV (in NIS millions)	339	795	228	667	579
Average commissions	0.00263%	0.00186%	0.00307%	0.00184%	0.00203%
Revenue (in NIS thousands)	1,095	1,779	427	699	2,920
MUTUAL FUNDS
Market cap (in NIS billions)	272	215	272	215	239
Average daily value of creation/redemptions (in NIS millions)	903	1,296	864	864	1,055
Average commissions	0.01199%	0.00891%	0.01240%	0.01166%	0.01016%
Revenue (in NIS thousands)	13,313	13,848	6,537	5,742	26,594
DERIVATIVES
Derivatives on indices	97.5	116.1	90.7	111.3	112.1
Derivatives on foreign currency	51.9	58.2	49.5	57.7	55.0
Derivatives on individual shares	4.8	3.2	5.1	3.7	3.0
Total derivative contracts (in '000 units)	154.2	177.5	145.3	172.7	170.1
Derivatives on indices - average commissions (in NIS)	0.58	0.58	0.58	0.58	0.58
Derivatives on foreign currency -average commissions (in NIS)	0.36	0.36	0.36	0.36	0.36
Derivatives on individual shares - average commissions (in NIS)	1.00	1.00	1.00	1.00	1.00
Revenue (in NIS thousands)	9,910	11,090	4,630	5,119	21,941
Total revenue from trading and clearing commissions	65,764	71,867	31,649	32,187	136,451

	Six months ended June 30,			Three months ended June 30,	Year ended December 31,
	2021	2020	2021	2020	2020
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	542	529	536	529	527
Mutual funds and ETNs / ETFs	2,204	2,151	2,226	2,154	2,142
Avg. revenue from levies (in NIS thousands)
Companies	10.8	10.5	5.4	5.2	20.9
Mutual funds and ETNs / ETFs	3.7	3.9	1.8	1.9	7.6
Revenue from Annual Levies from: (in NIS thousands)
Companies	5,819	5,532	2,881	2,766	11,039
Mutual funds and ETNs / ETFs	8,209	8,355	4,113	4,002	16,225
Nominee Company and others	2,519	1,501	1,263	750	3,067
Total revenue from Annual Levies (in NIS thousands)	16,547	15,388	8,257	7,518	30,331
Value of Offerings Used to Calculate the Listing Fees1 (NIS, in millions)
Companies – Shares, Bonds and ETN / ETFs2	97,461	48,923	43,388	26,126	118,413
Government bonds (including swap transactions) 3	85,104	64,173	35,471	45,621	164,779
Treasury-bills	62,949	44,948	30,953	16,986	100,924
Number of issuances
Number of public offerings of shares on TASE	102	44	46	21	115
Number of new issuers of shares	63	6	30	4	27
Number of new (dual-listed) companies	2	2	1	1	3
Number of Offerings and Volumes Raised
Amount raised in share IPOs of new issuers (in NIS millions)	7,797	1,000	4,696	563	4,616
Amount raised in bond offerings by new issuers (in NIS millions)	259	0	140	-	100
Number of corporate bond offerings to the public	78	70	44	37	145
Number of corporate bond offerings to the public by new companies	4	0	2	-	1
Average revenue from Examination and Listing Fees(3)
Companies – Shares, Bonds and ETN / ETFs4	0.0157%	0.0189%	0.0160%	0.0198%	0.0182%

1 Value on listing date of a security, used to calculate the listing fees, as prescribed in the TASE Rules.

2 The actual amount raised in the six-month period ended June 30, 2021 and June 30, 2020 and in the one-year period ended December 31, 2020 amounted to NIS 54.3 billion, NIS 41.7 billion and NIS 91.5 billion, respectively.

3 Commencing in 2021, listing fees on government bonds will be charged based on a new pricelist, as signed between the Company and the State of Israel's Ministry of Finance, which provides for the payment of a fixed amount over the entire period set out in the agreement, rather than a percentage of the amount raised (for additional details, see section 4.2 above).

4 The reduction in the average rate of receipts from listing fees reflects material offerings on TASE UP, as well as the effect of the maximum commission in the listing fees on shares and stock convertibles.

Appendix – Non-Transactional Metrics (Cont'd)

	Six months ended June 30,		Three months ended June 30,		Year ended Decemb er 31,
	2021	2020	2021	2020	2020
LISTING FEES AND LEVIES (Cont.)
Revenue from Examination and Listing Fees (in NIS thousands)
Examination fees	4,897	3,161	2,565	1,682	6,843
Listing fees - shares & bonds	15,278	9,257	6,949	5,171	21,570
Listing fees - government bonds	2,906	2,318	1,157	1,643	5,881
Listing of T-bills	440	315	216	119	707
Levies and examination fees from members	106	53	53	53	133
Other	95	29	90	29	218
Effect of IFRS on Listing Fees	(5,520)	(779)	(940)	(1,450)	(5,796)
Total revenue from Examination and Listing Fees (in NIS thousands)	18,202	14,354	10,090	7,247	29,556
Total revenue from Listing Fees and Levies	34,749	29,742	18,347	14,765	59,887
CLEARING HOUSE SERVICES
Average Monthly Market value of assets (in NIS billions)	2,867	2,447	2,958	2,389	2,491
Avg. commissions from Custodian Fees	0.00108%	0.00107%	0.00108%	0.00107%	0.00107%
Revenue from: (in NIS thousands)
Custodian fees	15,502	13,068	8,007	6,397	26,676
Clearing House services for members / company events	13,875	13,048	7,646	6,534	25,805
Other	2,619	2,379	1,292	1,196	4,972
Total revenue from Clearing House services	31,996	28,495	16,945	14,127	57,453
DATA DISTRIBUTION AND CONNECTIVITY SERVICES:
Average number of data terminals
In Israel – for business customers	7,684	7,630	7,584	7,652	7,559
In Israel – for private customers	9,240	8,532	8,012	9,298	8,816
Overseas	4,943	4,446	4,939	4,598	4,560
Quote generator	300	275	326	279	285
Total	22,167	20,883	20,861	21,827	21,220
Revenue from data terminals and data (in NIS thousands)
Data terminals in Israel charged monthly – business customers	8,253	8,285	4,072	4,153	16,416
Data terminals in Israel charged monthly – private customers	1,940	1,792	841	977	3,703
Data terminals overseas charged monthly	3,329	2,775	1,903	1,429	5,559
Quote generator	1,013	813	573	413	1,697
Data terminals according to extent of use and information files	5,137	4,120	2,602	2,438	9,066
Indices and data	1,609	1,639	765	625	3,189
Connectivity services	4,544	4,374	2,439	2,148	8,778
Total revenue from Data distribution and Connectivity services	25,825	23,798	13,195	12,183	48,408

Appendix – Velocity of trading

Presented below are details regarding the velocity of trading(5) in Israel in the reported period:

	Six months ended June 30,		% change		Three months ended June 30,		Year ended December 31,
	2021	2020		2021	2020		2020
Velocity of trading
Shares(2)	42.7%	58.9%	(28%)	39.7%	58.4%	(32%)	52.9%
Corporate bonds(2) (3)	54.6%	75.1%	(27%)	57.5%	76.4%	(25%)	66.5%
Government bonds – shekel (4)	104.9%	159.9%	(34%)	85.5%	136.8%	(38%)	124.1%
Government bonds – other(5)	88.3%	103.7%	(15%)	89.5%	92.9%	(4%)	89.9%
Treasury bills	68.0%	124.2%	(45%)	76.2%	102.3%	(26%)	98.4%

(1) The velocity of trading does not include off-exchange transactions.

(2) The velocity of trading includes the ETFs / ETFs traded.

(3) The velocity of trading does not include data of TACT institutional-traded corporate bonds.

(4) Including "Shahar" fixed-interest shekel bonds and short-term government bonds.

(5) Includes CPI-linked bonds and "Gilon" variable-interest shekel bonds.

Appendix – Deferred income from listing fees

Forecast for recognition of income

	Deferred income from listing fees as of			Income recognition in Three months ended	Income recognition in Twelve months ended	Deferred income from listing fees as of
	30.06.2021	30.09.2021	31.12.2021	31.03.2022	30.06.2022	30.6.2023	30.06.2024	30.06.2024
Listing of
shares	31.6	1.0	1.0	1.0	0.9	3.6	3.3	20.8
Corporate bonds	31.0	2.5	2.3	2.2	2.1	7.1	5.2	9.6
ETF	30.1	1.2	1.2	1.2	1.1	4.3	4.0	17.1
government bonds	11.4	1.3	1.2	0.9	0.6	2.0	1.4	4.0
T-bills	0.4	0.2	0.1	0.1	-	-	-	-
Total	104.5	6.2	5.8	5.4	4.7	17.0	13.9	51.5