Tel Aviv Stock Exchange Ltd. — Earnings Release 2021

May 24, 2021

May 24, 2021 386017.docx

THE TEL-AVIV STOCK EXCHANGE LTD REPORTED FIRST QUARTER 2021 RESULTS

May 24, 2021 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the first quarter ended March 31, 2021. 1

1.

General

The first quarter of 2021 was characterized by the lifting of most of the coronavirus restrictions due to the expansion and progress of the national vaccination campaign and the resulting reduced number of cases in Israel, which, in turn contributed to the economy's gradual activity resumption and to an unemployment rate reduction.

In the face of these occurrences, in the first quarter of 2021 there was a value increase of the assets traded on TASE and an increase in the number of new companies that carried out IPOs on TASE. At the same time, trading volumes on TASE in the first quarter of 2021 were more moderate compared to those recorded in the first quarter of 2020, which was characterized by strong fluctuations and large trading volumes as a result of the uncertainty that prevailed at the outset of the coronavirus outbreak in Israel.

1.1 Highlights of TASE's Results for the First Quarter of 2021

First Quarter Results

• TASE revenues amounted to NIS 78.4 million in the first quarter of 2021, a decrease of 3% compared to the corresponding quarter last year. The decrease is due mainly to revenue from trading and clearing services, and was partly offset by an increase in other revenue items.
• Adjusted EBITDA decreased in the first quarter of 2021 to NIS 24.6 million compared to NIS 28.9 million in the corresponding quarter last year, a decrease of 15%.
• Adjusted net profit amounted to NIS 9.9 million in the first quarter of 2021, compared to NIS 10.6 million adjusted net profit in the corresponding quarter last year, a decrease of 7%.

1.2 Business and Corporate Highlights for the First Quarter of 2021

BUSINESS HIGHLIGHTS

• In the first quarter of 2021, NIS 9.4 billion was raised on TASE in shares, an increase of 157% over the corresponding quarter in the previous year, of which NIS 3.1 billion was raised in 33 IPO's mostly in the high-tech sector (27 IPOs total in 2020). Since the end of the first quarter to date, 8 new companies joined TASE, bringing the total number of new companies that joined TASE since the beginning of 2021 to 41.
• The leading indices TA-35, TA-90, TA-125 and TA-SME60 rose by 7%, 6% ,6% and 13% respectively, in the first quarter of 2021. The average daily trading volume of shares amounted to

¹ The Board of Directors of TASE today approved the Consolidated Financial Statement as of March 31, 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 June 2021.

approximately NIS 1.9 billion, a decrease of 15% compared to the first quarter of the previous year and similar to the average daily trading volume in the year 2020.

• The leading bond indices rose in the first quarter of 2021, similarly to the trend of trading in the equity market, with the exception of the prices of fixed-rate government shekel bonds, which decreased by 1.7% in the quarter. The average daily trading volume of corporate bonds in the first quarter of 2021 amounted to approximately NIS 0.8 billion, a 32% decrease compared to the volumes in the corresponding quarter of the previous year and a 23% decrease compared to the volumes in the year 2020. The average daily trading volume of government bonds in the first quarter of 2021 amounted to approximately NIS 3.7 billion, a 3% decrease compared to the volumes in the first quarter of 2020 and a 21% increase compared to the volumes in the year 2020.
• The average daily trading volume of derivatives amounted to 163 thousand units a day, compared to 182 thousand units in the corresponding quarter of 2020, a decrease of 10%. A decrease of 4% compared to the average daily trading volume in year 2020.
• The average daily trading volume of mutual funds amounted to NIS 942 million compared to NIS 1,686 million in the corresponding quarter of 2020, a decrease of 44% and a decrease of 10% compared to the average daily trading volume in the year 2020.

▪ SEASONALITY

The revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days. In the first quarter of 2021, there were 62 trading days, compared to 63 days in the corresponding quarter last year (a 2% decrease). The number of trading days expected in the second, third and fourth quarters of 2021 are 61, 56 and 65, respectively compared to 57, 62 and 66 in the second, third and fourth quarter of 2020, respectively.

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

Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020

Statement of Profit or Loss

	Quarter ended		Difference
	31.3.2021	31.03.2020	Amount	%
Revenue from services	78,370	81,207	(2,837)	(3%)
Expenses	65,674	63,620	2,054	3%
Profit before financing income, net	12,696	17,587	(4,891)	(28%)
Financing income (expenses)	134	(4,407)	4,541	-
Taxes on income	3,169	2,950	219	7%
Net profit	9,661	10,230	(569)	(6%)
% of total revenue from services for the quarter	12.3%	12.6%

• Revenue in the first quarter of 2021 amounted to NIS 78.4 million, compared to revenue of NIS 81.2 million in the corresponding quarter last year, a decrease of 3%. The decrease is due mainly to revenue from trading and clearing services, and was partly offset by an increase in other revenue items (see details below).
• The costs in the first quarter of 2021 amounted to NIS 65.7 million, compared to costs of NIS 63.6 million in the corresponding quarter last year, an increase of 3%. The increase in the costs is due mainly to employee benefits expenses (approx. 2% of total costs) resulting from salary updates and to an increase in depreciation expenses (approx. 1% of total costs) in respect of projects activated between the periods.
• Net financing income in the first quarter of 2021 amounted to NIS 0.1 million, compared to net financing expenses of NIS 4.4 million in the corresponding quarter last year. The transition to financing income in the quarter resulted from positive yields of 0.02% on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios, compared to negative yields of 2.1% in the corresponding quarter last year, as a result of the implications of the coronavirus outbreak on the trading on TASE and the reduction in the prices of securities.
• The net profit in the first quarter of 2021 totaled NIS 9.7 million, compared to NIS 10.2 million in the corresponding quarter last year, a decrease of 6%. The decrease in profit was due to lower revenue from services, primarily revenue from trading and clearing services, and to higher expenses, which were partly offset by the transition to financing income, as described above.

	Quarter ended
	31.3.2021	31.03.2020	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	101,152,435	100,000,000	1%
Diluted earnings per share	104,112,911	102,082,290	2%
Basic earnings per share in NIS	0.096	0.102	(6%)
Diluted earnings per share in NIS	0.093	0.100	(7%)

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

Revenue	Quarter ended
from services	31.03.2021	% of the Company's total revenues	31.03.2020	% of the Company's total revenues	% change
Trading and clearing commission s	34,115 respectively	44% 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 in trading volumes of shares, corporate bonds, derivatives and T-bills on TASE compared to the trading volumes in the corresponding period last year, which stemmed mainly from the coronavirus outbreak, resulting in a decrease of 9%, 5%, 4%, 2% and 1%, respectively, in revenue from trading and clearing commissions. An additional decrease of 2% in revenue is due to the lesser number of trading days in the quarter compared to the corresponding period last year. In opposition, an increase in the effective commission on trading and clearing in shares and in the effective commission on clearing of mutual funds offset the reduction in revenue from trading and clearing by 3% and 6%,	39,680	49%	(14%)
Listing fees and levies	16,402 21% 14,977 18% 10% The increase is due mainly to the increase in revenue from examination fees as a result of multiple prospectuses, which contributed 6% to the increase in total revenue from listing fees and levies, the increased charging of new annual fees introduced in 2021, which contributed 2% to the increase in total revenue from listing fees in levies, and an increase in revenue from existing fees and from listing fees, each contributing another 1% to the increase in total revenue from listing fees and levies.
Clearing House services	15,051 19% 14,368 18% 5% 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 6% to the increase in total revenue from Clearing House services, and to an increase in revenue from new Clearing House services, which contributed 2% to the increase in revenue. In opposition, a decrease in revenue from existing Clearing House services compared to the corresponding quarter last year offset 3% of the total increase in revenue from Clearing House services.
Data distribution and connectivity services	12,630 16% 11,615 14% 9% Most of the increase is due to the higher revenue from private customers, which contributed 6% to the increase in revenue from data distribution and connectivity services, and to an increase in revenue from data distribution to business customers, which contributed 4% to the increase in revenue from data distribution and connectivity services, of which 3% relates to an increase in revenue from the distribution of derivative information.
Other revenue	172 - 567 1% (70%) Most of the decrease derives from the shutting down of the Conference Center activities in March 2020 as a result of the coronavirus outbreak, and from the termination of the rent agreement as of February 2021.
Total revenue from services	78,370	100%	81,207	100%	(3%)

Adjusted net profit and adjusted EBITDA data²

	Quarter ended		Difference
	31.03.2021	31.03.2020	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income (expenses), net	12,696	17,587	(4,891)
Adjustments:
Share-based payment expenses	233	414	(181)
Depreciation and capital losses	11,627	10,889	738
Adjusted EBITDA for the quarter:	24,556	28,890	(4,334)	(15%)
% of total revenue from services for the quarter	31.3%	35.6%
Adjusted profit for the quarter:
Profit for the quarter	9,661	10,230	(569)
Adjustments:
Share-based payment expenses	233	414	(181)
Adjusted profit for the quarter:	9,894	10,644	(750)	(7%)
% of total revenue from services for the quarter	12.6%	13.1%

• The adjusted EBITDA in the first quarter of 2021 totaled NIS 24.6 million, compared to NIS 28.9 million in the corresponding quarter last year, a decrease of 15%. The decrease is due to a reduction in revenue from services, primarily revenue from trading and clearing, and from an increase in costs, primarily employee benefits costs.
• The adjusted profit in the first quarter of 2021 totaled NIS 9.9 million, compared to NIS 10.6 million in the corresponding quarter last year, a decrease of 7%. The decrease is due mainly to a reduction in revenue from services, primarily from trading and clearing, and to an increase in costs, primarily employee benefits costs and depreciation expenses, which were mostly offset by the transition to financing income.

² Adjusted data for the profit and EBITDA (operating profit before interest, tax, depreciation and amortization): These data are 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 March 31, 2021 (NIS, in thousands):

	As of 31.03.2021	As of 31.12.2020
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short term financial assets	371,735	346,712	25,023	7%
Other current assets	32,117	19,303	12,814	66%
Property and equipment and intangible assets	469,168	451,196	17,972	4%
Other non-current assets	17,368	17,460	(92)	(1%)
Total assets (*)	890,388	834,671	55,717	7%
Current liabilities	125,509	75,141	50,368	67%
Non-current liabilities	140,263	128,690	11,573	9%
Total liabilities (*)	265,772	203,831	61,941	30%
Total equity	624,616	630,840	(6,224)	(1%)
Ratio of equity to total assets (*)	70.2%	75.6%
Surplus equity over regulatory requirements (in NIS millions)	282	298	(16)	(5%)
Surplus liquidity over regulatory requirements (in NIS millions)	116	142	(26)	(18%)

• (*) The total assets and liabilities in the statement of financial position as of March 31, 2021 and December 31, 2020, include a balance of assets/liabilities in respect of open derivative positions amounting to NIS 650.5 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 March 31, 2021 amounted to NIS 890.4 million, a 7% increase compared to December 31, 2020. Most of the increase is due to an increase in cash from operating activities, in other receivables and in property and equipment and intangible assets.
• The total liabilities as of March 31, 2021 amounted to NIS 265.8 million, a 30% increase compared to December 31, 2020. Most of the increase is due to annual levies and listing fees collected in advance, a dividend that was declared and paid after the reporting date and lease liabilities
• The total equity as of March 31, 2021 amounted to NIS 624.6 million, a 1% decrease compared to December 31, 2020. Most of the decrease is due to a dividend in an amount of NIS 18.5 million declared and paid after the reporting date, which was partly offset by the profit in the first three-month period of 2021, totaling NIS 9.7 million.

Presented below are Cash flows for the three months ended March 31, 2021 (NIS, in millions):

		Three months ended March31
	Item	2021	2020	Explanations of the Company
	Adjusted EBITDA	24.6	28.9	The decrease in adjusted EBITDA is due mainly to the lower revenue from services, primarily trading and clearing services, and to an increase in expenses, due to mostly fixed structure of expenses.
Net cash from operating activities	Changes in working capital	18.4	16.7	The increase in working capital is due mainly to the increase in deferred income from listing fees and levies, which was offset by the timing of payments and receipts between the quarters, primarily with respect to other receivables.
	Financing and tax	(1.2)	1.0	The decrease is due mainly to higher tax payments, net in the quarter, compared to the corresponding quarter last year.
	Total	41.8	46.6	Cash flows from operating activities decreased by 10% between the quarters.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(13.3)	(8.1)	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	(1.4)	1.5	The transition to cash for investing activity is due to the acquisition of assets, net in managed portfolios, compared to net disposals in the corresponding period last year in accordance with the Company's investment policy.
	Total	(14.7)	(6.6)
Net cash for financing	Lease payments	(2.3)	(2.5)
activities	Total	(2.3)	(2.5)
equivalents	Total increase in cash and cash	24.8	37.5

3. Events at the reporting date and there after

3.1 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 of March 25, 2021.

3.2 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 publication date of the report, the parties reached various understandings concerning the management of the lending pool of government bonds for the Ministry of Finance. Within this framework, the parties reached a compromise in the dispute that is the cause of this claim, pursuant to which, against the withdrawal of all of the Company's contentions against the Ministry of Finance under this claim, for the period until December 31, 2020 the Company will be paid a settlement amount of NIS 3,846 thousand (plus VAT). It is hereby stressed that the series of agreements that implements the aforementioned compromise, which has yet to be signed, will also include an undertaking by the Company to take actions to amend the TASE Rules concerning the listing fees for securities listed by the State in accordance with the provisions of the compromise. Subject to the signing of the series of agreements in the format described above, and 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 is expected to be fully recognized as gain (before tax) in the hands of the Company in its financial statements that will be published following the aforesaid amendment of the TASE Rules.

3.3 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 first 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).

3.4 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 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. To the date of publication of the report, the Authority's Staff and representatives of the Company are discussing additional alternatives for the advancement of the matter.

3.5 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.

3.6 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 costs amounted to NIS 3.5 million – NIS 4 million.

4. Information relating to the results for the first quarter of 2021 (NIS, in thousands)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	March 31,
	2021	2020
Assets
Current assets
Cash and cash equivalents	166,996	141,491
Financial assets at fair value through profit or loss	204,739	197,301
Trade receivables	14,603	12,287
Other receivables	17,514	15,245
	403,852	366,324
Assets derived from clearing operations in respect of open derivative positions	650,502	576,842
Total current assets	1,054,354	943,166
Non-current assets
Cash restricted as to use	-	541
Other long-term receivables	1,771	3,345
Property and equipment, net	342,811	339,482
Intangible assets, net	126,357	112,659
Deferred tax assets	15,597	12,681
Total non-current assets	486,536	468,708
Total assets	1,540,890	1,411,874
Liabilities and Equity
Current liabilities
Trade payables	10,306	9,252
Short-term liabilities for employee benefits	34,421	37,251
Other payables	4,914	4,908
Dividend declared	18,450	8,770
Current maturities of lease liabilities	8,817	8,897
Current tax liabilities	4,033	4,015
Deferred income from listing fees and levies	44,568	40,496
	125,509	113,589
Liabilities derived from clearing operations in respect of open derivative positions	650,502	576,842
Total current liabilities	776,011	690,431
Non-current liabilities
Non-current liabilities for employee benefits	37,759	27,740
Lease liabilities	20,021	11,494
Deferred income from listing fees and levies	82,483	73,197
Other liabilities	-	541
Total non-current liabilities	140,263	112,972
Equity
Remeasurement of net defined benefit liability	(15,577)	(9,015)
Share-based payment reserve	32,751	31,652
Other capital reserves	46,802	43,079
Retained earnings	560,640	542,755
Total equity	624,616	608,471
Total liabilities and equity	1,540,890	1,411,874

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

	Three months ended March 31,		Year ended December 31,
	2021	2020	2020
Revenue from services:
Trading and clearing commissions	34,115	39,680	136,451
Listing fees and levies	16,402	14,977	59,887
Clearing House services	15,051	14,368	57,453
Data distribution and connectivity services	12,630	11,615	48,408
Other revenue	172	567	2,067
Total revenue from services	78,370	81,207	304,266
Cost of revenue:
Employee benefits expenses	37,396	36,391	139,355
Share-based payments expenses	233	414	1,280
Computer and communications expenses	6,709	6,288	26,753
Property taxes and building maintenance expenses	3,048	3,134	11,762
General and administrative expenses	2,681	2,375	9,373
Marketing expenses	1,727	1,430	11,098
Fee to the Israel Securities Authority	2,253	2,699	10,776
Depreciation and amortization	11,572	10,871	44,510
Other expenses	55	18	587
Total costs	65,674	63,620	255,494
Profit before financing income (expenses), net	12,696	17,587	48,772
Financing income	315	(4,243)	410
Financing expenses	181	164	983
Total financing income (expenses), net	134	(4,407)	(573)
Profit before taxes on income	12,830	13,180	48,199
Taxes on income	3,169	2,950	11,295
Profit for the year	9,661	10,230	36,904
Basic earnings per share (NIS)	0.096	0.102	0.368
Diluted earnings per share (NIS)	0.093	0.100	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	-	-	-	9,661	9,661
Other comprehensive loss for the period	-	2,332	-	-	2,332
Total comprehensive income for the period	-	2,332	-	9,661	11,993
Dividend declared	-	-	-	(18,450)	(18,450)
Share-based payment	233	-	-	-	233
Balance at March 31, 2021	32,751	(15,577)	46,802	560,640	624,616

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Three months ended March 31,		Year ended December 31,
	2021	2020	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year	9,661	10,230	36,904
Expenses in respect of share-based payments	233	414	1,280
Tax expenses recognized in profit or loss	3,169	2,950	11,295
Net financing expenses (income) recognized in profit or loss	(134)	4,407	573
Depreciation and amortization	11,572	10,871	44,510
Loss from disposal of property and equipment and intangible assets	55	18	587
	24,556	28,890	95,149
Changes in asset and liability items:
Decrease (increase) in trade receivables and other receivables	(12,474)	(6,871)	2,514
Increase in receivables in respect to open derivative positions	(297,309)	(225,100)	(1,451)
Decrease (increase) in trade payables and other payables	810	(1,375)	(2,673)
Increase in deferred income from listing fees and levies	27,341	20,395	6,412
Increase in payables in respect to open derivative positions	297,309	225,100	1,451
Increase in liabilities for employee benefits	2,783	4,552	436
	43,016	45,591	101,838
Interest received	1,486	1,859	5,008
Interest paid	(171)	(115)	(723)
Tax Payments - operating activities	(2,545)	(713)	(10,694)
	(1,230)	1,031	(6,409)
Net cash provided by operating activities	41,786	46,622	95,429
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(3,152)	(3,067)	(11,145)
Proceeds from the disposal of property and equipment	14	-	-
Acquisitions of intangible assets	(4,889)	(1,436)	(11,161)
Payments in respect to costs capitalized to property and equipment and to intangible assets	(5,240)	(3,610)	(15,583)
Disposal (acquisition) of financial assets at fair value through profit or loss, net	(1,418)	1,464	(4,206)
Net cash used in investing activities	(14,685)	(6,649)	(42,095)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(2,319)	(2,502)	(9,929)
Dividend paid	-	-	(8,770)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	3,723
Net cash used in financing activities	(2,319)	(2,502)	(14,976)
Net increase in cash and cash equivalents	24,782	37,471	38,358
Cash and cash equivalents, beginning of the period	142,154	103,928	103,928
Effect of changes in exchange rates on cash balances held in	60	92	(132)
foreign currency Cash and cash equivalents, end of the period	166,996	141,491	142,154

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

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

	Three months ended March 31,		Year ended December 31,
	2021	2020	2020
Number of trading days	62	63	248
SHARES
Market cap of Shares (ex. ETN / ETFs)	877	649	842
Market cap of ETN / ETFs on share indices	66	46	61
Total market cap (in NIS billions)	943	695	903
Shares ADV (ex. ETN / ETFs)	1,545	1,663	1,465
ETN / ETFs on share indices ADV	315	527	393
Total average daily volume (in NIS millions)	1,890	2,190	1,858
Average commissions	0.01091%	0.01004%	0.01067%
Revenue (in NIS thousands)	12,578	13,849	49,150
BONDS
Market cap of government bonds -unlinked	361	270	351
Market cap of government bonds -linked	293	254	280
Market cap of corporate bonds	389	373	388
Market cap of bonds (ex. ETN / ETFs)	1,043	897	1,019
Market cap of ETN / ETFs on bond indices	31	26	31
Total market cap (in NIS billions)	1,074	923	1,050
Government bonds - unlinked ADV (in NIS millions)	2,354	2,492	1,959
Government bonds - linked ADV (in NIS millions)	1,346	1,307	1,100
Corporate bonds ADV excluding ETNs (in NIS millions)	696	1,043	928
ETN / ETFs on bond indices ADV	135	182	148
Total Average daily volume (in NIS millions)	4,531	5,024	4,135
Government bonds unlinked - average commissions	0.00193%	0.00187%	0.00188%
Government bonds linked - average commissions	0.00270%	0.00281%	0.00294%
Corporate bonds - average commissions	0.00712%	0.00698%	0.00696%
Government bonds - unlinked (in NIS thousands)	2,820	2,932	9,116
Government bonds - linked (in NIS thousands)	2,254	2,314	8,022
Corporate bonds (in NIS thousands)	3,666	5,386	18,573
Other (MTS) (in NIS thousands)	73	42	135
Revenue (in NIS thousands)	8,813	10,674	35,846

	Three months ended March 31,	Year ended December 31,
	2021	2020	2020
TREASURY BILLS
Market cap (in NIS billions)	91	112	87
Treasury bills ADV (in NIS millions)	449	911	579
Average commissions	0.00240%	0.00188%	0.00203%
Revenue (in NIS thousands)	668	1,080	2,920
MUTUAL FUNDS
Market cap (in NIS billions)	255	200	239
Average daily value of creation/redemptions (in NIS millions)	942	1686	1055
Average commissions	0.01160%	0.00763%	0.01016%
Revenue (in NIS thousands)	6,776	8,106	26,594
DERIVATIVES
Derivatives on indices	104.1	120.6	112.1
Derivatives on foreign currency	54.3	58.7	55.0
Derivatives on individual shares	4.6	2.8	3.0
Total derivative contracts (in '000 units)	163.0	182.1	170.1
Derivatives on indices - average commissions (in NIS)	0.58	0.58	0.58
Derivatives on foreign currency -average commissions (in NIS)	0.36	0.36	0.36
Derivatives on individual shares - average commissions (in NIS)	1.00	1.00	1.00
Revenue (in NIS thousands)	5,280	5,971	21,941
Total revenue from trading and clearing commissions	34,115	39,680	136,451

	Three months ended March 31,		Year ended December 31,
	2021	2020	2020
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	545	531	527
Mutual funds and ETNs / ETFs	2,182	2,150	2,142
Avg. revenue from levies (in NIS thousands)
Companies	5.4	5.2	20.9
Mutual funds and ETNs / ETFs	1.9	2.0	7.6
Revenue from Annual Levies from: (in NIS thousands)
Companies	2,938	2,766	11,039
Mutual funds and ETNs / ETFs	4,096	4,353	16,225
Nominee Company and others	1,256	751	3,067
Total revenue from Annual Levies (in NIS thousands)	8,290	7,870	30,331
Issuance volume including swap transactions (in NIS millions)
Companies – Shares, Bonds and ETN / ETFs	54,073	22,796	118,413
Government bonds	49,633	18,552	164,779
Treasury-bills	31,996	27,962	100,924
Number of issuances
Number of public offerings of shares on TASE	56	23	115
Number of new issuers of shares	33	2	27
Number of new (dual-listed) companies	1	1	3
Number of Offerings and Volumes Raised
Amount raised in share IPOs of new issuers (in NIS millions)	3,101	437	4,616
Amount raised in bond offerings by new issuers (in NIS millions)	119	-	100
Number of corporate bond offerings to the public	34	33	145
Number of corporate bond offerings to the public by new companies	2	-	1
Average revenue from Examination and Listing Fees
Companies – Shares, Bonds and ETN / ETFs	0.0154%	0.0179%	0.0182%
Government bonds	0.0035%	0.0036%	0.0036%
Revenue from Examination and Listing Fees (in NIS thousands)
Examination fees	2,332	1,479	6,843
Listing fees - shares & bonds	8,329	4,086	21,570
Listing fees - government bonds	1,749	675	5,881
Listing of T-bills	224	196	707
Levies and examination fees from members	53	-	133
Other	5	-	218
Effect of IFRS on Listing Fees	(4,580)	671	(5,796)
Total revenue from Examination and Listing Fees (in NIS thousands)	8,112	7,107	29,556
Total revenue from Listing Fees and Levies	16,402	14,977	59,887

	Three months ended March 31,		Year ended December 31,
	2021	2020	2020
CLEARING HOUSE SERVICES
Average Monthly Market value of assets (in NIS billions)	2,776	2,505	2,491
Avg. commissions from Custodian Fees	0.00108%	0.00107%	0.00107%
Revenue from: (in NIS thousands)
Custodian fees	7,495	6,671	26,676
Clearing House services for members / company events	6,229	6,514	25,805
Other	1,327	1,183	4,972
Total revenue from Clearing House services	15,051	14,368	57,453
DATA DISTRIBUTION AND CONNECTIVITY SERVICES:
Average number of data terminals
In Israel – for business customers	7,785	7,607	7,559
In Israel – for private customers	10,467	7,766	8,816
Overseas	4,946	4,293	4,560
Quote generator	273	272	285
Total	23,471	19,938	21,220
Revenue from data terminals and data (in NIS thousands)
Data terminals in Israel charged monthly – business customers	4,181	4,132	16,416
Data terminals in Israel charged monthly – private customers	1,099	815	3,703
Data terminals overseas charged monthly	1,426	1,346	5,559
Quote generator	440	400	1,697
Data terminals according to extent of use and information files	2,535	1,682	9,066
Indices and data	844	1,014	3,189
Connectivity services	2,105	2,226	8,778
Total revenue from Data distribution and Connectivity services	12,630	11,615	48,408

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

	Three months ended March 31,		% change	Year ended December 31,
	2021	2020		2020
Velocity of trading
Shares(2)	46.1%	60.8%	(24%)	52.9%
Corporate bonds(2) (3)	51.9%	74.8%	(31%)	66.5%
Government bonds – shekel (4)	124.2%	184.1%	(33%)	124.1%
Government bonds – other(5)	87.1%	113.8%	(23%)	89.9%
Treasury bills	89.7%	140.1%	(36%)	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.