Tel Aviv Stock Exchange Ltd. — Earnings Release 2022

Aug 8, 2022

August 8, 2022 411333.docx

THE TEL-AVIV STOCK EXCHANGE LTD REPORTED SECOND QUARTER 2022 RESULTS

August 8, 2022 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the Second quarter ended June 30, 2022. 1

General

TASE concludes a second consecutive quarter with over 90 million in revenues. In addition, the adjusted EBITDA in the quarter totaled approximately NIS 36 million, 36% over the corresponding quarter last year, and the EBITDA margin reached a new record of 39% in the quarter.

1.1 Highlights of TASE's Results for the Second Quarter of 2022

Second Quarter Results

• TASE revenues amounted to NIS 91 million in the Second quarter of 2022, an increase of 8% compared to the corresponding quarter last year. Revenue increased in the quarter across all operations. In the second quarter of 2021, following the signing of an agreement between TASE and the Ministry of Finance, one-time income in an amount of NIS 3.8 million was included with respect to listing fees for government bonds listed in the lending pool.
• Adjusted EBITDA increased in the second quarter of 2022 to NIS 35.8 million compared to NIS 26.2 million in the corresponding quarter last year, an inter-quarter increase of 36%. The increase is due to an 8% rise in revenue as a result of the increase across all operations and a decrease of 4% in expenses, primarily with respect to the timing of marketing costs.

Adjusted net profit amounted to NIS 14.3 million in the second quarter of 2022, compared to NIS 12.3 million adjusted net profit in the corresponding quarter last year, an increase of 16%. The increase is due both to an 8% rise in revenue as a result of the higher volume of activity and to a 3% decrease in expenses with respect to the timing of marketing costs, and was partly offset by the transition to financing expenses as a result of a negative return on the Company's investments in financial assets held for trade and an increase in the tax expense.

1.2 Business and Corporate Highlights for the Second Quarter and the first half of 2022

BUSINESS HIGHLIGHTS

• The average daily trading volume of shares in the second quarter of 2022 amounted to approximately NIS 2.4 billion, an increase of 27% compared to the volumes in the corresponding quarter in the previous year.
• The average daily trading volume of corporate bonds in the second quarter of 2022 amounted to approximately NIS 1.3 billion, a 40% increase compared to the volumes in the corresponding quarter in the previous year. The average daily trading volume of government bonds in the Second quarter of 2022 amounted to approximately NIS 2.3 billion, a 19% decrease compared to the volumes in the corresponding quarter in the previous year.

¹ The Board of Directors of TASE today approved the Consolidated Financial Statement as of June 30, 2022. 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 2022.

• The average daily trading volume of derivatives in the second quarter of 2022 amounted to 161 thousand units a day, compared with 145 thousand units in the corresponding quarter in the previous year., an increase of 11%.
• The average daily trading volume of mutual funds in the second quarter of 2022 amounted to NIS 874 million compared with NIS 864 million in the corresponding quarter in the previous year.
• In the Second quarter of 2022, NIS 6.8 billion was raised on TASE in shares, a decrease of 14% over the corresponding quarter in the previous year, of which NIS 0.025 billion was raised in 1 IPO's (compared to NIS 4.7 billion raised in 30 IPOs during the second quarter of 2021). In the first half of 2022, NIS 14.4 billion was raised on TASE in shares, a decrease of 17% over the corresponding period in the previous year, of which a total of NIS 1.4 billion was raised in 9 IPOs (94 IPOs in total during the entire year of 2021).
• In the second quarter of 2022, NIS 20.2 billion was raised on TASE in corporate bonds, an increase of 39% over the corresponding quarter in the previous year and NIS 9.9 billion was raised on TASE in government bonds, a decrease of 72% over the corresponding quarter in the previous year.
• The leading indices TA-35, TA-90, TA-125 and TA-SME60 have decreased by 9.5%, 11.6%, 10.2% and 15.3% respectively, in the second quarter of 2022 and decreased by 7.5%, 9.6% ,8.4% and 18.7% respectively, in the first half of 2022.
• A 3% decrease in the balance of assets in custodianship at TASE-CH in 2022 to an amount of NIS 2.9 trillion, compared to the balance of assets in the corresponding period.
• The marketing and distribution expenses of the Company totaled NIS 1.6 million in the second quarter of 2022, a decrease of 72% over the corresponding quarter in the previous year. The marketing and distribution expenses of the Company totaled NIS 7.3 million in the first half of 2022, similar to the first half of the previous year. The company intends to launch new marketing campaign in approximately NIS 3.5 million during the third quarter of 2022.
• Net financing expenses in the first half of 2022 of the Company totaled NIS 8.6 million, as compared to net financing income of NIS 1.5 million in the corresponding period last year. The transition to financing expenses this quarter resulted from a negative return of approximately 4.25% on the Company's investments in marketable securities' portfolios comprising of Israeli Government bonds, as compared to a positive return of approximately 0.75% in the corresponding period last year.
• TASE to initiate the first stage of its declared buyback intention in an amount of up to NIS 36 million over six months. For additional information, see Section 4.2 below.
• TASE announces joining of Jump Trading one of Europe's top-tier international trading entities, which operates as a provider of liquidity and trades on multiple exchanges around the world - as a remote member on TASE.

2. Presented below is information relating to the results for the second quarter of 2022 (NIS, in thousands)

Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021

Statement of Profit or Loss

	Quarter ended		Difference
	30.06.2022	30.06.2021	Amount	%
Revenue from services	90,986	84,592	6,394	8%
Expenses	68,145	70,422	(2,277)	(3%)
Profit before financing income, net	22,841	14,170	8,671	61%
Financing income (expenses)	(3,416)	1,338	(4,754)	-
Taxes on income	5,220	3,435	1,785	52%
Net profit	14,205	12,073	2,132	18%
% of total revenue from services for the quarter	15.6%	14.3%

• Revenue in the second quarter of 2022 amounted to NIS 91.0 million, compared to revenue of NIS 84.6 million in the corresponding quarter last year, an increase of 8%. Revenue increased in the quarter across all operations. In the second quarter of 2021, following the signing of an agreement between TASE and the Ministry of Finance, one-time income in an amount of NIS 3.8 million was included with respect to listing fees for government bonds listed in the lending pool.
• The costs in the second quarter of 2022 totaled approximately NIS 68.1 million, compared to costs of NIS 70.4 million in the corresponding quarter last year, a decrease of 3%. The decrease in the costs is due mainly to a decrease in marketing expenses (approx. 5% of total costs), as a result of the timing of performance of campaigns, which was partly offset by an increase in employee benefits expenses and an increase in depreciation expenses (approx. 2% of total costs).
• Net financing expenses in the second quarter of 2022 totaled NIS 3.4 million, as compared to net financing income of NIS 1.3 million in the corresponding quarter last year. The transition to financing expenses this quarter resulted from a negative return of approximately 1.86% on the Company's investments in marketable securities' portfolios comprising of Israeli Government bonds, as compared to a positive return of approximately 0.73% in the corresponding quarter last year.
• Tax expenses, net in the second quarter of 2022 totaled NIS 5.2 million, as compared to NIS 3.4 million in the corresponding quarter last year. The increase in expenses was due to the higher pre-tax profit and the reduction in the fair value of the Company's investments in government bonds for which deferred taxes were not created.
• The net profit in the second quarter of 2022 totaled NIS 14.2 million, compared to NIS 12.1 million in the corresponding quarter last year, an increase of 18%. The increase in profit was due to higher revenue from services and to a decrease in costs, which were partly offset by the transition to financing expenses and the increase in the tax expense, as described above.

	Quarter ended
	30.06.2022	30.06.2021	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	102,513,222	101,224,600	1.3%
Diluted earnings per share	104,696,078	104,642,251	0.1%
Basic earnings per share in NIS	0.139	0.119	17%
Diluted earnings per share in NIS	0.136	0.115	18%

The revenue in the second quarter of 2022 –

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

	Quarter ended
Revenue from services	30.06.2022	% of the Company's total revenues	30.06.2021	% of the Company's total revenues	% change
Trading and clearing commissions	35,872	39% maximum commission), deducted 5% from the increase in revenue.	31,649	37% 18% of the increase in revenue from trading and clearing commissions is due to an increase in the trading volumes between the periods, particularly with respect to shares (10% increase in revenue) and corporate bonds (5% increase in revenue). In opposition, a reduction in the effective commission rate, primarily in shares and mutual funds (mainly as a result of the increase in the volume of transactions that are affected by the existence of a	13%
Listing fees and levies	20,256 corresponding quarter last year.	22%	18,347	22% 7% of the increase in revenue from listing fees and levies is due to an increase in revenue from annual levies, mainly as a result of an increase in the number of companies and funds that pay an annual levy compared to the corresponding period last year, as well as an increase of 5% in revenue from listing fees. In opposition, revenue from examination fees decreased by 2%, mainly as a result of the reduction in the number of IPO compared to the	10%
Clearing House services	18,345 companies.	20%	16,945	20% 6% of the increase in revenue from Clearing House services is due to an increase in revenue from Clearing House services to members. In addition, 1% of the increase in revenue is due to the rise in revenue from custodian fees as a result of the increase in the value of assets that are held in custodianship at TASE-CH compared to the corresponding period last year and an increase of 1% in revenue from Clearing House services to	8%
Data distribution and connectivity services	15,076	17% information through TASE's API service.	13,195	16% 7% of the increase in revenue from data distribution and connectivity services is due to a rise in revenue from connectivity services (of which 3% with respect to prior periods) and 4% of the increase is due to an increase in revenue from the distribution of trading data and derivative information to business customers outside Israel, as a result of the increase in the volume of activity and the updating of the pricelist in the second quarter of 2022. In addition, 2% of the increase in revenue is due to an increase in revenue from the sale of	14%
Other revenue	1,437	2% pool in the period up to December 31, 2020.	4,456	5% The revenue for the quarter includes revenue of NIS 0.5 million from the sale of technological consulting services, revenue of NIS 0.5 million from the Conference Center and trade openings, and revenue of NIS 0.3 million from the rent of an office floor. The reduction in revenue is due to the effect of an agreement signed between TASE the Ministry of Finance in May 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	(68%)
Total revenue from services	90,986	100%	84,592	100%	8%

Adjusted net profit and adjusted EBITDA data²

	Quarter ended		Difference
	30.06.2022	30.06.2021	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income (expenses), net	22,841	14,170	8,671
Adjustments:
Share-based payment expenses	132	236	(104)
Depreciation and capital losses	12,782	11,821	961
Adjusted EBITDA for the quarter:	35,755	26,227	9,528	36%
% of total revenue from services for the quarter	39.3%	31.0%
Adjusted profit for the quarter:
Profit for the quarter	14,205	12,073	2,132
Adjustments:
Share-based payment expenses	132	236	(104)
Adjusted profit for the quarter:	14,337	12,309	2,028	16%
% of total revenue from services for the quarter	15.8%	14.6%

• The adjusted EBITDA in the second quarter of 2022 totaled NIS 35.8 million, compared to NIS 26.2 million in the corresponding quarter last year, an increase of 36%. The increase is due to an 8% rise in revenue as a result of the increase across all operations and a decrease of 4% in expenses, primarily with respect to the timing of marketing.
• The adjusted profit in the second quarter of 2022 totaled NIS 14.3 million, compared to NIS 12.3 million in the corresponding quarter last year, an increase of 16%. The increase is due both to an 8% rise in revenue as a result of the higher volume of activity and to a 3% decrease in expenses with respect to the timing of marketing costs, and was partly offset by the transition to financing expenses as a result of a negative return on the Company's investments in financial assets held for trade and an increase in the tax expense.

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.

3. Presented below is information relating to the results for the six months of 2022 (NIS, in thousands)

Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021

Statement of Profit or Loss

	Six months ended
	30.06.2022	30.06.2021	Difference	% Change
Revenue from services	188,662	162,962	25,700	16%
Expenses	141,551	136,096	5,455	4%
Profit before financing income, net	47,111	26,866	20,245	75%
Financing income (expenses), net	(8,623)	1,472	(10,095)	-
Taxes on income	9,564	6,604	2,960	45%
Profit for the year	28,924	21,734	7,190	33%
% of total revenue from services for the year	15.3%	13.3%

• Revenue in the first half of 2022 amounted to NIS 188.7 million, as compared to revenue of NIS 163.0 million in the corresponding period last year, a 16% increase. The increase in revenue is due mainly to an overall increase in activity (approx. 12% of total increase) and to an update to the period of revenue recognition from listing fees (approx. 4% of total increase). In the second quarter of 2021, following the signing of an agreement between TASE and the Ministry of Finance, one-time income in an amount of NIS 3.8 million was included with respect to listing fees for government bonds listed in the lending pool.
• The costs in the first half of 2022 totaled NIS 141.6 million, compared to costs of NIS 136.1 million in the corresponding period last year, a 4% increase. The increase in the costs is due mainly to employee benefits expenses (approx. 2% of total costs) resulting from salary updates and provisions for bonuses, as well as to an increase in depreciation and amortization expenses (approx. 1% of total costs).
• Net financing expenses in the first half of 2022 totaled NIS 8.6 million, as compared to net financing income of NIS 1.5 million in the corresponding quarter last year. The transition to financing expenses in the first half of the year resulted from a negative return of approximately 4.25% on the Company's investments in marketable securities' portfolios comprising of Israeli Government bonds, as compared to a positive return of approximately 0.75% in the corresponding period last year.
• Tax expenses in the first half of 2022 totaled NIS 9.6 million, as compared to NIS 6.6 million in the corresponding period last year. The increase in expenses was due to the higher pre-tax profit and the reduction in the fair value of the Company's investments in government bonds for which deferred taxes were not created.
• The profit in the first half of 2022 totaled NIS 28.9 million, as compared to NIS 21.7 million in the corresponding period last year, a 33% increase. The increase in profit is due to an increase in revenue from services, which was partly offset by the rise in expenses, a transition to financing expenses and an increase in the tax expense.

	Six Months ended
	30.06.2022	30.06.2021	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	100,166,689	101,188,717	-1.0%
Diluted earnings per share	103,938,682	104,403,895	-0.4%
Basic earnings per share in NIS	0.285	0.215	33%
Diluted earnings per share in NIS	0.278	0.208	34%

The revenue in the first six months of 2022 – below is the composition of the first six months revenue, compared to the corresponding period last year:

	Six Months ended
Revenue from services	30.06.2022	% of the Company's total revenues	30.06.2021	% of the Company's total revenues	% change
	75,317	40%	65,764	40%	15%
Trading and clearing commissions	3% from the increase in revenue.				16% of the increase in revenue from trading and clearing commissions is due to an increase in the trading volumes between the periods, particularly with respect to shares (a 13% increase in revenue) and corporate bonds (3% increase in revenue), as well as to the greater number of trading days this period compared to the corresponding period last year (2 trading days), which contributed 2% to the increase in revenue. In opposition, a reduction in the effective commission rate, primarily in shares and mutual funds (mainly as a result of the increase in the volume of transactions that are affected by the existence of a maximum commission), deducted
	45,045	24%	34,749	21%	30%
Listing fees and levies	20% of the increase in revenue from listing fees and levies is due to the update to the period of revenue recognition from listing fees on shares and ETFs pursuant to International Financial Reporting Standard, "Revenue from Contracts with Customers" (IFRS 15) (for additional information, see details in section 5.4 below), and to a 7% increase in revenue from annual levies as a result of an increase in the number of companies and funds that pay an annual levy compared to the corresponding period last year.
	35,697	19%	31,996	20%	12%
Clearing House services	8% of the increase in revenue from Clearing House services is due to an increase in revenue from Clearing House services to members. In addition, an increase of 3% in revenue is due to the rise in revenue from custodian fees as a result of the increase in the value of assets that are held in custodianship at TASE-CH compared to the corresponding period last year.
	29,375	15%	25,825	16%	14%
Data distribution and connectivity services	6% of the increase in revenue from data distribution and connectivity services is due to a rise in revenue from connectivity services and 5% of the increase is due to an increase in revenue from the distribution of trading data and derivative information to business customers outside Israel, mainly as a result of the increase in the volume of activity and the updating of the pricelist. In addition, 2% of the increase in revenue is due to an increase in revenue from the sale of information through TASE's API service.
	3,228	2%	4,628	3%	(30%)
Other revenue	The revenue in the period include revenue of NIS 1.3 million from the sale of technological consulting services with respect to an engagement that ended in the first half of 2022. Revenue of NIS 1.1 million from the Conference Center and trade openings and NIS 0.7 million from the rent of an office floor. The reduction in revenue is due to the effect of an agreement signed between TASE the Ministry of Finance in May 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	188,662	100%	162,962	100%	16%

Adjusted net profit and adjusted EBITDA data³

	Six Months ended		Difference
	30.06.2022	30.06.2021	Amount	%
Adjusted EBITDA for the period:
Profit before financing income (expenses), net	47,111	26,866	20,245
Adjustments:
Share-based payment expenses	263	469	(206)
Depreciation and capital losses	25,230	23,448	1,782
Adjusted EBITDA for the period:	72,604	50,783	21,821	43%
% of total revenue from services for the period	38.5%	31.2%
Adjusted profit for the period:
Profit for the period	28,924	21,734	7,190
Adjustments:
Share-based payment expenses	263	469	(206)
Adjusted profit for the period:	29,187	22,203	6,984	31%
% of total revenue from services for the period	15.5%	13.6%

• The adjusted EBITDA in the first half of 2022 totaled NIS 72.6 million, as compared to NIS 50.8 million in the corresponding period last year, a 43% increase. The increase is due to a 16% rise in revenue as a result of the higher volume of activity, which was partly offset by a 3% increase in expenses, primarily employee benefits costs.
• The adjusted profit in the first half of 2022 totaled NIS 29.2 million, as compared to NIS 22.2 million in the corresponding period last year, a 31% increase. The increase is due to a 16% rise in revenue as a result of the higher volume of activity, which was partly offset by a 3% increase in expenses, primarily with respect to employee benefits and depreciation and the transition to financing expenses as a result of the negative return on the Company's investments in financial assets held for trade and an increase in the tax expenses.

³ 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 June 30, 2022 (NIS, in thousands):

	As of 30.06.2022	As of 31.12.2021
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short-term financial assets	390,663	390,057	606	0%
Other current assets	29,773	24,745	5,028	20%
Property and equipment and intangible assets	461,006	461,789	(783)	(0%)
Other non-current assets	13,243	17,566	(4,323)	(25%)
Total assets (*)	894,685	894,157	528	0%
Current liabilities	107,165	91,230	15,935	17%
Non-current liabilities	110,747	141,059	(30,312)	(21%)
Total liabilities (*)	217,912	232,289	(14,377)	(6%)
Total equity	676,773	661,868	14,905	2%
Ratio of equity to total assets	76%	74%
Surplus equity over regulatory requirements (in NIS millions)	317	311	7	2%
Surplus liquidity over regulatory requirements (in NIS millions)	154	165	(12)	(7%)

• (*) The total assets and liabilities in the statement of financial position as of June 30, 2022 and December 31, 2021, include a balance of assets/liabilities in respect of open derivative positions amounting to NIS 553.9 million and NIS 665.3 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, 2022 amounted to NIS 894.7 million, a 0.1% increase compared to December 31, 2021. Most of the increase is due to an increase in other receivables, less a reduction in the balance of deferred tax assets.
• The total liabilities as of June 30, 2022 amounted to NIS 217.9 million, a 6% decrease compared to December 31, 2021. Most of the decrease is due to a reduction in the liability for employee that was partly offset by an increase in deferred income from annual levies.
• The total equity as of June 30, 2022 amounted to NIS 676.8 million, a 2% increase compared to December 31, 2021. The increase in the equity is due mainly to the profit of NIS 28.9 million in the first half of the year, other comprehensive income of NIS 12.9 million and proceeds from the sale of shares within the framework of the TASE ownership restructuring in an amount of NIS 5.5 million, less a dividend in an amount of NIS 22.7 million declared and paid and a buyback of Company shares in an amount of NIS 9.9 million.

Presented below are Cash Flows for the Three months Ended June 30, 2022 (NIS, in millions):

		Three months ended June 30,
	Item	2022	2021	Explanations of the Company
Net cash from operating activities	Adjusted EBITDA	35.7	26.2	The increase in adjusted EBITDA is due mainly to an increase in revenue from services as a result of the higher volume of activity and a decrease in marketing expenses in the quarter compared to the corresponding quarter last year.
	Changes in working capital	(11.9)	(7.3)	The increase in the negative working capital is due mainly to a decrease in trade and other payables.
	Financing and tax	(3.5)	(1.6)	The change is due mainly to higher tax payments, net in the quarter, compared to the corresponding quarter last year.
	Total	20.3	17.3	Cash flows from operating activities grew by 17% between the quarters.
Net cash for investing activities	Investments in property and equipment, intangible assets and capitalized payroll costs	(13.9)	(9.6)	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	3.1	(2.3)	Acquisition and disposal of assets in accordance with the Company's investments policy.
	Total	(10.8)	(11.9)
	Lease payments	(2.2)	(2.3)
Net cash for financing activities	Payments for the acquisition of treasury shares	(9.9)	-	amount of NIS 9.9 million, in accordance with the buyback plan approved in May 2022. For additional information, see details in section 5.2 below.
	Short-term credit	1.2	-	Short-term credit as a result of the aforesaid buyback of Company shares in trust.
	Dividend paid	(22.7)	(18.5)	The increase reflects the effect of the increase in profit between 2020 and 2021 on the amount of the dividend distribution.
	Receipts carried directly to equity within the framework of implementing the TASE Restructuring Law, net	4.4	-	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law.
	Total	(29.2)	(20.8)
Total increase in cash and cash equivalents		(19.7)	(15.4)

Presented below are Cash Flows for the Six months Ended June 30, 2022 (NIS, in millions):

		Six months ended June 30,
	Item	2022	2021	Explanations of the Company
	Adjusted EBITDA	72.6	50.8	The increase in adjusted EBITDA is due mainly to an increase in revenue from services, which was partly offset by an increase in expenses, primarily employee benefits costs.
Net cash from operating activities	Changes in working capital	1.2	11.1	The decrease in working capital is due mainly to the timing of payments to suppliers and to a decrease in deferred income from listing fees.
	Financing and tax	(6.1)	(2.8)	The change is due to the increase in tax payments in the period compared to the corresponding period last year.
	Total	67.7	59.1	Cash flows from operating activities grew by close to 15% between the periods.
Net cash for investing activities	Investments in property and equipment, intangible assets and capitalized payroll costs	(29.4)	(22.9)	The increase is due to the timing of implementation of the Group's investment work plans in the periods.
	Disposal (acquisition) of financial assets, net	3.1	(3.7)	Acquisition and disposal of assets in accordance with the Company's investments policy.
	Total	(26.3)	(26.6)
	Lease payments	(4.5)	(4.6)
Net cash for financing activities	Payments for the acquisition of treasury shares	(9.9)	-	Buyback of Company shares in an amount of NIS 9.9 million, in accordance with the buyback plan approved in May 2022. For additional information, see details in section 5.2 below.
	Short-term credit	1.2	-	Short-term credit as a result of the aforesaid buyback of Company shares in trust.
	Dividend paid	(22.7)	(18.5)	Dividend payment of approximately NIS 22.7 million.
	Receipts carried directly to equity within the framework of implementing the ownership restructuring, net.	8.2	-	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law.
Total		(27.7)	(23.1)
Total increase in cash and cash equivalents		13.7	9.4

4. 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 2022, there were 61 trading days, similarly to the number of days in the corresponding quarter last year. In the first six months of 2022 there were 125 trading days, compared to 123 trading days in the corresponding period last year, a 1.6% increase.

Presented below are expected trading days:

	Q1	Q2	Q3	Q4	Total
Year
2021	62	61	56	65	244
2022	64	61	61	58	244

5. Events at the reporting date and there after

5.1 On April 7, 2022, a dividend of NIS 22,735 thousand (representing NIS 0.2220 per ordinary share) was paid to the Company's shareholders (that held their shares on March 30, 2022).

5.2 Buyback of the Company's shares

In March 2022, the Board of Directors of the Company instructed the Company to formulate a plan for the buyback of Company shares in an amount of up to NIS 100 million and for a period of up to two years. Accordingly, the management of the Company has recommended that the buyback plan be carried out in conformity with the Securities Authority's Directive, Legal Position No. 199-8, "Safe Harbor Protection in the Acquisition of Securities by a Corporation" (hereafter: "Safe Harbor Format") and in the form of several consecutive plans that will be presented to the Board of Directors for approval.

In May 2022, after reviewing of the distribution criteria in accordance with the provisions of Section 302 of the Companies Law, 1999, the Board of Directors of the Company approved a first plan for the buyback of Company shares in an amount of up to NIS 36 million over a six-month period, in Safe Harbor Format. In view of its non-revocable nature, the plan imposes restrictions and qualifications on the performance of the purchases with regard to the daily volume pf purchases and the purchasing prices. For this purpose, the Company entered into an agreement with an external broker (hereafter: "broker"), which is not related to the Company, for the execution of the purchases in accordance with the buyback plan, based on an irrevocable power of attorney that is effective until the end of the plan period.

In the period from May 26, 2022 to June 30, 2022, the Company executed a buyback on The Tel Aviv Stock Exchange of 615 thousand of its ordinary shares in consideration for NIS 9.9 million (of which NIS 1.2 million was transferred to the broker after the balance sheet date). After the balance sheet date and until August 4 2022, the Company acquired 524 thousand of its ordinary shares in a total monetary amount of NIS 8.6 million.

Since the performance of a buyback is subject to the fulfillment of the profit criterion and the solvency criterion (within the definition of the terms in the Companies Law, 1999), on August 8, 2022, the Board of Directors of the Company determined that the execution of the remaining portion of the Company's buyback plan meets the distribution criteria.

It should be noted that, as of the date of the report, notices were received from two shareholders who are among the shareholders received Company shares in the framework of the restructuring in TASE, in which they raise various claims against the aforesaid buyback plan. Some of the claims address the implications of the buyback for them as shareholders that are subject to the arrangement set out in the Securities Law. The aforesaid relates to the requirement to transfer to the Company the surplus consideration, in the event of the sale of their shares, as well as to the impact of the buyback on their percentage holding in the shares of the Company following the buyback. The Company categorically rejects all of the aforesaid claims.

5.3 Receipts from shareholders within the framework of implementing the ownership restructuring

During the first half of 2022 the shareholders realized 485,401 shares. In respect of this realization and another realization carried out in December 2021, in the First half of 2022 TASE received an amount of NIS 8.2 million (of which NIS 2.7 million in respect of realizations made in December 2021).

It should be noted that the Company has contacted the boards of directors of each of the 3 largest holders from among the aforesaid shareholders, which are TASE members, requesting them to explain the reason for their refraining from selling their holdings in the Company, considering that such sale would realize the provisions of the Securities Law. The holders maintained that they are not obligated by law to sell those holdings. The Company is examining the claims of the aforesaid shareholders and considering further courses of action.

5.4 Changes in estimates reported in prior reporting periods

Revenue from listing fees on shares and ETFs is recognized over the period in which the securities of the customer on which the listing fees were paid are expected to be traded on TASE, since the customer simultaneously receives and consumes the rewards from the performance of the Group, where the Group provides such listing services.

For the purpose of determining the scheduling of the recognition of revenue from the listing fees, the Company estimates, among others with the assistance of an independent external consultant, the average duration of listing of similar securities in the past. The first-time examination was performed on the date of implementation of International Financial Reporting Standard 15, "Revenue from Contracts with Customers", in the financial statements for 2018 and determined that the average duration of shares and ETFs in IPOs is 13 years and in secondary offerings 13 years as well, which served as a basis for defining the revenue recognition periods.

In the first quarter of 2022, as part of an estimates validation process and in view of changes that occurred in offerings on TASE over the past three years, the Company examined the estimation of the period over which the securities of the customer are traded on TASE for revenue recognition purposes.

The examination was performed in relation to the period for recognition of revenue from listing fees on shares (in IPOs and secondary offerings) and on ETFs. Based on an examination performed by the Company, the period of recognition of revenue from listing fees on the initial listing of shares and on the listing of ETFs and ETNs is 12 years, and on the secondary offering of shares is 6 years.

Consequently, in respect of contracts for which the performance obligation, according to the updated estimate, ended by January 1, 2022, the Company recognized revenue from listing fees in an amount of NIS 4.3 million. In respect of contracts for which the performance obligation has not yet ended as of January 1, 2022, their remaining period of performance obligation has been updated, resulting an increase of NIS 2.8 million and NIS 1.3 million in revenue from listing fees for the six and three-month periods ended on June 30, 2022, respectively.

Presented below are expected revenue recognition from listing fees before and after estimation update as of December, 31 2021:

	Expected Revenue Recognition
	up to 1 year	1-2 years	2-5 years	after 5 years	Total amount of unfulfilled (or partially fulfilled) performance obligations
	NIS, in thousands
Before estimation update	24,588	18,169	36,956	31,314	111,027
After estimation update	(*) 33,625	20,657	38,546	18,199	111,027

(*) Including revenue of NIS 4.3 million with respect to contracts for which, according to the updated estimation, the performance obligation has been fulfilled as of January 1, 2022.

5.5 On May 10, 2022, the Interim Chairman of the Board of Directors of TASE, Mr. Steinberg, resigned from all of his duties in the TASE Group. Mr. Steinberg, who had served as Interim Chairman and has even been recommended for permanent office in this position, announced his retirement due to a disagreement as to the terms of his compensation as Chairman of the Company's Board of Directors. In view of the aforesaid, the Board of Directors of the Company has appointed Mr. Salah Saabneh as Interim Chairman of the Board of Directors, pending the completion of a process for the sourcing and appointment of a new Chairman of the Board of Directors for the Company.

5.6 Collective relations in the Company

On September 14, 2022, the collective agreements of the TASE employees will expire. To the date of the report, the management of the Company is negotiating a new collective agreement with the Labor Federation and the employees committee.

5.7 TASE tariffs

In July 2022, the amendment that cancels the maximum commission on OTC transactions was approved for a period of three years. The Company is working to implement the resolution.

5.8 Targets and Business Strategy

Since the regularization of digital assets in Israel is inconclusive and in view of the uncertainty surrounding the scope of the sources that are available to the Company with respect to the right to receive surplus considerations from the sale of shares by shareholders who had obtained their shares in the framework of the TASE restructuring arrangement, the proceedings for the formulation of a new strategic plan are expected to be delayed. In addition, The management of the Company is considering investment opportunities for its liquid and surplus balances, looking to generate surplus yield in the intermediate term through financial-type investments in corporations that engage in fields that are tangent or complementary to its own activities, such as Fintech.

1. Information relating to the results for the second quarter of 2022 (NIS, in thousands)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	June 30,
	2022	2021
Assets
Current assets
Cash and cash equivalents	193,868	151,612
Financial assets at fair value through profit or loss	196,795	208,565
Trade receivables	14,886	16,434
Other receivables	14,887	13,974
	420,436	390,585
Assets derived from clearing operations in respect of open derivative positions	553,924	494,024
Total current assets	974,360	884,609
Non-current assets
Cash restricted as to use	720	720
Deferred tax assets	10,806	14,839
Property and equipment, net	327,064	338,127
Intangible assets, net	133,942	128,058
Other long-term receivables	1,717	2,520
Total non-current assets	474,249	484,264
Total assets	1,448,609	1,368,873

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands) (CONT.)

	June 30,
	2022	2021
Liabilities and Equity
Current liabilities
Current maturities of lease liabilities	8,507	8,746
Trade payables	8,644	10,602
Other payables	5,682	5,134
Income received in advance with respect to annual levies	19,589	17,869
Deferred income from listing fees, levies and others	28,722	22,003
Current tax liabilities	3,884	5,597
Short-term liabilities for employee benefits	32,137	28,703
	107,165	98,654
Liabilities derived from clearing operations in respect of open derivative positions	553,924	494,024
Total current liabilities	661,089	592,678
Non-current liabilities
Lease liabilities	10,437	18,107
Deferred income from listing fees and levies	78,003	82,576
Non-current liabilities for employee benefits	21,587	36,747
Other liabilities	720	720
Total non-current liabilities	110,747	138,150
Equity
Remeasurement of net defined benefit liability	(3,682)	(14,457)
Capital reserve in respect to share-based payment transactions	33,520	32,987
Other capital reserves	54,222	46,802
Retained earnings	592,713	572,713
Total equity	676,773	638,045
Total liabilities and equity	1,448,609	1,368,873

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,
	2022	2021	2022	2021	2021
Revenue from services:
Trading and clearing commissions	75,317	65,764	35,872	31,649	131,116
Listing fees and levies	45,045	34,749	20,256	18,347	69,056
Clearing House services	35,697	31,996	18,345	16,945	65,505
Distribution of data and connectivity services	29,375	25,825	15,076	13,195	52,268
Other revenue	3,228	4,628	1,437	4,456	5,712
Total revenue from services	188,662	162,962	90,986	84,592	323,657
Cost of revenue:
Employee benefits expenses	78,486	75,306	38,333	37,910	148,395
Expenses in respect to share-based payments	263	469	132	236	739
Computer and communications expenses	14,192	14,034	7,362	7,325	27,823
Property taxes and building maintenance expenses	6,487	6,250	3,347	3,202	13,190
General and administrative expenses	4,957	4,715	2,299	2,034	10,883
Marketing expenses	7,323	7,312	1,583	5,585	11,203
Fee to the Israel Securities Authority	4,613	4,562	2,307	2,309	9,123
Depreciation and amortization	25,184	23,349	12,736	11,777	47,618
Other expenses	46	99	46	44	262
Total costs	141,551	136,096	68,145	70,422	269,236
Profit before financing income (expenses), net	47,111	26,866	22,841	14,170	54,421
Financing income	(8,407)	1,828	(3,302)	1,513	5,488
Financing expenses	216	356	114	175	948
Total financing income (expenses), net	(8,623)	1,472	(3,416)	1,338	4,540
Profit before taxes on income	38,488	28,338	19,425	15,508	58,961
Taxes on income	9,564	6,604	5,220	3,435	13,491
Profit for the year	28,924	21,734	14,205	12,073	45,470
Basic earnings per share (NIS)	0.285	0.215	0.139	0.119	0.449
Diluted earnings per share (NIS)	0.278	0.208	0.136	0.115	0.436

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, 2022	33,257	(16,536)	48,698	596,449	661,868
Profit for the period	-	-	-	28,924	28,924
Other comprehensive loss for the period	-	12,854	-	-	12,854
Total comprehensive income for the period	-	12,854	-	28,924	41,778
Dividend paid	-	-	-	(22,735)	(22,735)
Share-based payment	263	-	-	-	263
Acquisition of Treasury shares	-	-	-	(9,925)	(9,925)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	5,524	-	5,524
Balance at June 30, 2022	33,520	(3,682)	54,222	592,713	676,773

	Share based payment reserve	Remeasurement of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at April 1, 2022	33,388	(6,565)	54,222	588,433	669,478
Profit for the period	-	-	-	14,205	14,205
Other comprehensive loss for the period	-	2,883	-	-	2,883
Total comprehensive income for the period	-	2,883	-	14,205	17,088
Share-based payment	132	-	-	-	132
Acquisition of Treasury shares	-	-	-	(9,925)	(9,925)
Balance at June 30, 2022	33,520	(3,682)	54,222	592,713	676,773

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Six months ended June 30,		Three months ended June 30,	Year ended December 31,
	2022	2021	2022	2021	2021
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	28,924	21,734	14,205	12,073	45,470
Expenses in respect of share-based payments	263	469	132	236	739
Tax expenses recognized in profit or loss	9,564	6,604	5,220	3,435	13,491
Net financing expenses (income) recognized in profit or loss	8,623	(1,472)	3,416	(1,338)	(4,540)
Depreciation and amortization	25,184	23,349	12,736	11,777	47,618
Loss from disposal of property and equipment and intangible assets	46	99	46	44	262
	72,604	50,783	35,755	26,227	103,040
Changes in asset and liability items:
Decrease (increase) in trade receivables and other receivables	(7,748)	(11,503)	4,825	971	(5,000)
Decrease (increase) in receivables in respect to open derivative positions	111,347	(140,831)	18,228	156,478	(312,078)
Increase (Decrease) in trade payables and other payables	(4,437)	2,379	(5,694)	1,569	5,719
Increase (Decrease) in income received in advance with respect to annual levies	19,299	17,758	(6,464)	(4,303)	179
Increase (decrease) in deferred income from listing fees, levies and others	(4,012)	4,980	(1,478)	(300)	11,138
Increase (decrease) in payables in respect to open derivative positions	(111,347)	140,831	(18,228)	(156,478)	312,078
Increase (Decrease) in liabilities for employee benefits	(1,950)	(2,493)	(3,132)	(5,276)	1,725
	73,756	61,904	23,812	18,888	116,801
Interest received	1,485	1,523	251	36	4,300
Interest paid	(212)	(350)	(90)	(178)	(726)
Tax payments - operating activities	(7,350)	(3,992)	(3,666)	(1,447)	(13,993)
	(6,077)	(2,819)	(3,505)	(1,589)	(10,419)
Net cash provided by operating activities	67,679	59,085	20,307	17,299	106,382
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(12,866)	(4,859)	(5,405)	(1,707)	(6,239)
Proceeds from the disposal of property and equipment	-	14	-	-	16
Acquisitions of intangible assets	(6,388)	(7,753)	(3,034)	(2,864)	(11,883)
Payments in respect to costs capitalized to property and equipment and to intangible assets	(10,174)	(10,290)	(5,436)	(5,050)	(17,527)
Disposal (acquisition) of financial assets at fair value through profit or loss, net	3,163	(3,736)	3,129	(2,318)	(4,591)
Net cash used in investing activities	(26,265)	(26,624)	(10,746)	(11,939)	(40,224)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(4,464)	(4,585)	(2,216)	(2,266)	(9,125)
Acquisition of Treasury shares	(9,925)	-	(9,925)	-	-
Short-term credit	1,155	-	1,155	-	-
Dividend paid	(22,735)	(18,450)	(22,735)	(18,450)	(18,450)
Receipts (payments) carried directly to equity within the framework of implementing the TASE Restructuring Law, net	8,220	-	4,427	-	(800)
Net cash provided by (used in) financing activities	(27,749)	(23,035)	(29,294)	(20,716)	(28,375)
Net increase (Decrease) in cash and cash equivalents	13,665	9,426	(19,733)	(15,356)	37,783
Cash and cash equivalents, beginning of the period	179,768	142,154	213,259	166,996	142,154
Effect of changes in exchange rates on cash balances held in foreign currency	435	32	342	(28)	(169)
Cash and cash equivalents, end of the period	193,868	151,612	193,868	151,612	179,768

Quarterly statements of profit or loss for 2021 and for the Second quarter of 2022 (NIS, in thousands)

	Jan Mar 2021	Apr Jun 2021	Jul-Sep 2021	Oct Dec 2021	Jan Mar 2022	Apr Jun 2022	2021
Item	(Unaudited)						(Audited)
Number of trading days	62	61	56	65	64	61	244
Revenue from services:
Trading and clearing commissions	34,115	31,649	28,727	36,625	39,445	35,872	131,116
Listing fees and levies	16,402	18,347	16,867	17,440	24,789	20,256	69,056
Clearing House services	15,051	16,945	15,931	17,578	17,352	18,345	65,505
Distribution of data and connectivity services	12,630	13,195	12,927	13,516	14,299	15,076	52,268
Other revenue	172	4,456	516	568	1,791	1,437	5,712
Total revenue from services	78,370	84,592	74,968	85,727	97,676	90,986	323,657
Cost of revenue
Expenses in respect of employee benefits, net	37,396	37,910	35,423	37,666	40,153	38,333	148,395
Share-based payment expenses	233	236	136	134	131	132	739
Computer and communication expenses	6,709	7,325	6,389	7,400	6,830	7,362	27,823
Property taxes and building maintenance expenses	3,048	3,202	3,482	3,458	3,140	3,347	13,190
General and administrative expenses	2,681	2,034	2,924	3,244	2,658	2,299	10,883
Marketing expenses	1,727	5,585	1,715	2,176	5,740	1,583	11,203
Fee to the Israel Securities Authority	2,253	2,309	2,280	2,281	2,306	2,307	9,123
Depreciation and amortization expenses	11,572	11,777	12,076	12,193	12,448	12,736	47,618
Other expenses	55	44	8	155	-	46	262
Total cost of revenue	65,674	70,422	64,433	68,707	73,406	68,145	269,236
Profit before financing income (expenses), net	12,696	14,170	10,535	17,020	24,270	22,841	54,421
Financing income	315	1,513	2,105	1,555	(5,105)	(3,302)	5,488
Financing expenses	181	175	307	285	102	114	948
Total financing income (expenses), net	134	1,338	1,798	1,270	(5,207)	(3,416)	4,540
Profit before taxes on income	12,830	15,508	12,333	18,290	19,063	19,425	58,961
Taxes on income	3,169	3,435	2,698	4,189	4,344	5,220	13,491
Net profit	9,661	12,073	9,635	14,101	14,719	14,205	45,470

ABOUT TASE

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

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 derivative 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 operated 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

	Six months ended		Three months ended	Year ended
		June 30,	June 30,	December 31,
	2022 2021		2022	2021	2021
Number of trading days	61	61	125	123	244
SHARES
Market cap of Shares (ex. ETFs)	1,008	958	1,008	958	1,125
Market cap of ETFs on share indices	70	70	70	70	75
Total market cap (in NIS billions)	1,078	1,028	1,078	1,028	1,200
Shares ADV (ex. ETFs)	1,942	1,594	2,019	1,569	1,543
ETFs on share indices ADV	448	289	477	302	335
Total average daily volume (in NIS millions)	2,390	1,883	2,496	1,871	1,878
Average commissions	0.01004%	0.01045%	0.01025%	0.01068%	0.01081%
Revenue (in NIS thousands)	14,642	12,007	31,982	24,585	49,538
BONDS
Market cap of government bonds -unlinked	322	367	322	367	364
Market cap of government bonds - linked	321	306	321	306	341
Market cap of corporate bonds	415	393	415	393	426
Market cap of bonds (ex. ETFs)	1,058	1,066	1,058	1,066	1,131
Market cap of ETFs on bond indices	28	31	28	31	32
Total market cap (in NIS billions)	1,086	1,097	1,086	1,097	1,163
Government bonds - unlinked ADV (in NIS millions)	1,324	1,595	1,517	1,977	1,868
Government bonds - linked ADV (in NIS millions)	984	1,260	1,008	1,304	1,155
Corporate bonds ADV excluding ETFs (in NIS millions)	1,144	804	978	750	781
ETFs on bond indices ADV	144	117	148	126	125
Total Average daily volume (in NIS millions)	3,596	3,776	3,651	4,157	3,929
Government bonds unlinked - average commissions	0.00195%	0.00191%	0.00191%	0.00192%	0.00193%
Government bonds linked - average commissions	0.00292%	0.00288%	0.00288%	0.00278%	0.00285%
Corporate bonds - average commissions	0.00699%	0.00695%	0.00696%	0.00703%	0.00709%
Government bonds - unlinked (in NIS thousands)	1,571	1,854	3,624	4,674	8,817
Government bonds - linked (in NIS thousands)	1,754	2,212	3,623	4,466	8,022
Corporate bonds (in NIS thousands)	5,491	3,905	9,800	7,571	15,674
Other (MTS) (in NIS thousands)	32	77	135	150	299
Revenue (in NIS thousands)	8,848	8,048	17,182	16,861	32,812
TREASURY BILLS
Market cap (in NIS billions)	134.3	101	134.3	101	115
Treasury bills ADV (in NIS millions)	803	228	632	339	320
Average commissions	0.00236%	0.00307%	0.00247%	0.00263%	0.00269%
Revenue (in NIS thousands)	1,155	427	1,952	1,095	2,104
MUTUAL FUNDS
Market cap (in NIS billions)	262	272	262	272	292
Average daily value of creation/ redemptions (in NIS millions)	874	864	908	903	890
Average commissions	0.01121%	0.01240%	0.01127%	0.01199%	0.01200%
Revenue (in NIS thousands)	5,977	6,537	12,795	13,313	26,054
DERIVATIVES
Derivatives on indices	118.5	90.7	122	97.5	106.4
Derivatives on foreign currency	39	49.5	41.2	51.9	47.9
Derivatives on individual shares	3.1	5.1	5.3	4.8	5.0
Total derivative contracts (in '000 units)	160.6	145.3	168.5	154.2	159.3
Options on indices - Average commissions Derivatives on FX -Average commissions	0.58 0.36	0.58 0.36	0.58 0.36	0.58 0.36	0.58 0.36

	Six months ended June 30,		Three months ended June 30,		Year ended December 31,
	2022	2021	2022	2021	2021
Derivatives on single shares- Average commissions	1.00	1.00	1.00	1.00	1.00
Revenue (in NIS thousands)	5,250	4,630	11,406	9,910	20,608
Total revenue from trading and clearing commissions	35,872	31,649	75,317	65,764	131,116

Appendix – Non-Transactional Metrics

	Six months ended		Three months ended	Year ended
	June 30,		June 30,		Decemb er 31,
	2022	2021	2022	2021	2021
CLEARING HOUSE SERVICES
Average Monthly Market value of assets (in NIS billions)	3,004	2,958	3,060	2,867	2,975
Avg. commissions from Custodian Fees	0.00109 %	0.00108 %	0.00109 %	0.00108 %	0.00108 %
Revenue from: (in NIS thousands)
Custodian Fees	8,160	8,007	16,604	15,502	32,221
Clearing House services for members / company events	8,866	7,646	16,475	13,875	28,163
Other	1,319	1,292	2,618	2,619	5,121
Total revenue from Clearing House services	18,345	16,945	35,697	31,996	65,505
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	615	536	615	539	535
Mutual funds and ETFs	2,310	2,226	2,290	2,204	2,210
Avg. revenue from levies (in NIS thousands)
Companies	5.7	5.4	11.4	10.8	21.6
Mutual funds and ETFs	1.9	1.8	3.8	3.7	7.4
Revenue from Annual Levies from: (in NIS thousands)
Companies	3,488	2,881	7,003	5,819	11,547
Mutual funds and ETFs	4,420	4,113	8,770	8,209	16,335
Nominee Company and others	1,586	1,263	3,150	2,519	5,178
Total revenue from Annual levies	9,494	8,257	18,923	16,547	33,060
The value of issuance used to calculate Listing fees (in NIS millions)
Companies – Shares, Bonds and ETFs	32,281	43,388	75,690	97,461	182,966
Government bonds (including swap transactions)	9,889	35,471	25,307	85,104	157,956
Treasury-bills	39,651	30,953	80,580	62,949	130,926
Number of issuances
Number of public offerings of shares on TASE (including on TASE-UP)	12	46	41	102	170
Number of new issuers of shares	1	30	9	63	94
Number of new (dual-listed) companies	-	1	1	2	2
Number of Offerings and Volumes Raised
Amount raised in share IPOs of new issuers (in NIS millions)	25	4,696	1,416	7,797	10,490
Amount raised in bond offerings by new issuers (in NIS millions)	98	140	370	259	364
Number of corporate bond offerings to the public	34	44	85	78	177
Number of corporate bond offerings to the public by new companies	1	2	3	4	5
Average revenue from Examination and Listing Fees

	Six months ended June 30,		Three months ended June 30,		Year ended Decemb er 31,
	2022	2021	2022	2021	2021
Companies – shares, bonds and ETFs Revenue from Examination and Listing Fees (in NIS thousands)	0.0176%	0.0160%	0.0177%	0.0157%	0.0172%
Examination fees	2,129	2,565	4,449	4,897	8,986
Receipts from listing Fees
Listing fees - shares, bonds & ETF's	5,688	6,949	13,429	15,278	31,388
Listing fees - government bonds	1,488	1,157	2,976	2,906	5,812
Listing of T-bills	90	216	377	440	916
Levies and examination fees from members	638	53	796	106	290
Other	29	90	82	95	162
Total	7,933	8,465	17,660	18,825	38,568
Accounting adjustments to revenue recognition	700	(940)	4,013	(5,520)	(11,558)
Total revenue from listing Fees	8,633	7,525	21,673	13,305	27,010
Total revenue from examination and listing fees (in NIS thousands)	10,762	10,090	26,122	18,202	35,996
Total revenue from listing fees and levies	20,256	18,347	45,045	34,749	69,056
DATA DISTRIBUTION AND CONNECTIVITY SERVICES (*)
Average number of data terminals
Domestic business clients	7,459	7,584	7,589	7,685	7,551
Overseas business clients	5,214	4,850	5,347	4,851	4,927
Non-display data	297	326	308	300	286
Revenue from distribution and connectivity services (in NIS thousands)
Domestic business clients	4,179	4,137	8,494	8,396	16,516
Overseas business clients	2,277	1,901	4,385	3,326	7,160
Private clients	2,176	2,050	4,461	4,372	8,577
Derivative date and non-display data	1,380	1,093	2,385	1,921	3,954
Data files and other data	1,019	810	2,001	1,657	3,381
Authorization for indices usage	768	765	1,670	1,609	3,093
Connectivity services	3,277	2,439	5,979	4,544	9,587
Total revenue from Data distribution and Connectivity services	15,076	13,195	29,375	25,825	52,268

(*) Changes in the presentation of data regarding revenue from data distribution and connectivity services

During this period, changes took place in the business activity, including the modification of the pricing model for data distribution customers and the institution of a distinction between business and private customers, and the improvement of the accessibility and quality of the information, which made it necessary to alter the presentation of the data. Accordingly, the detailed data in reports commencing in the current quarter present revenues from business customers separately from the revenues from private customers, and contain additional information regarding derivative information as well as information and data files.

Presented below are details regarding the velocity of trading (1) in Israel in the reported period:

	Six months ended June 30,		% Change	Three months ended June 30,		% Change	Year ended December 31,
	2022	2021		2022	2021		2021
Velocity of trading
Shares	46.0%	42.7%	8%	42.8%	39.7%	8%	39.8%
Corporate bonds (2)	65.4%	54.6%	20%	75.0%	57.5%	30%	54.8%
Government bonds – shekel (3)	93.4%	104.9%	(11%)	84.1%	85.5%	(2%)	100.3%
Government bonds – linked (4)	67.4%	88.3%	(24%)	67.7%	89.5%	(24%)	78.3%
Treasury bills	103.5%	68.0%	52%	119.5%	47.9%	149%	62.4%

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

(2) The velocity of trading does not include data of corporate bonds traded on TASE UP.

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

(4) Including CPI-linked bonds, "Gilon" variable-interest shekel bonds and global government bonds.

Appendix – Deferred income from listing fees

	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
	30.06.22	30.09.22	31.12.22	31.03.23	30.06.23	30.06.24	30.06.25	30.06.25
Listing of
Shares	30	1.8	1.6	1.5	1.4	5	4.2	14.5
Corporate bonds	38.5	3.1	2.9	2.7	2.6	8.6	6.4	12.2
ETF	25.8	1.5	1.5	1.4	1.4	5.3	4.9	9.8
Government bonds	11.3	1.1	1.1	1.1	1	3.1	1.1	2.8
T-bills	0.4	0.2	0.1	0.1	0	0	0	0
Total	106.0	7.7	7.2	6.8	6.4	22.0	16.6	39.3

(*) For more details regarding estimate update in relation to the period for recognition of revenue from listing fees on shares (in IPOs and secondary offerings) and on ETFs, please see clause 4.3 above.