Tel Aviv Stock Exchange Ltd. — Earnings Release 2023

May 23, 2023

May 23, 2023

THE TEL-AVIV STOCK EXCHANGE LTD REPORTED FIRST QUARTER 2023 RESULTS

May 23, 2023 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the first quarter ended March 31, 2023. 1

1. General

TASE crosses the NIS 100 million revenue, with a 73% increase in net profit in the first quarter of 2023 to NIS 25.5 million, compared to NIS 14.7 million net profit in the corresponding quarter last year.

TASE expended the Buyback scheme with two additional plans for a total of up to NIS 124 million.

1.1 Highlights of TASE's Results for the First Quarter of 2023

First Quarter Results

• TASE revenues amounted to NIS 100.0 million in the first quarter of 2023, an increase of 2% compared to the corresponding quarter last year. The increase in revenue is due mainly to the increased volume of activity, excluding the non-recurring effect of an update to the estimated period of revenue recognition from listing fees recorded in the corresponding quarter last year in an amount of NIS 4.3 million, a 7% increase .
• Adjusted EBITDA increased in the first quarter of 2023 to NIS 43.5 million compared to NIS 36.8 million in the corresponding quarter last year, an inter-quarter increase of 18%. The increase is due to a 2% rise in revenue and to a 5% decrease in expenses. The decrease in the costs is due mainly to a reduction in marketing expenses in the reported period.
• Adjusted net profit amounted to NIS 26.1 million in the first quarter of 2023, compared to NIS 14.9 million adjusted net profit in the corresponding quarter last year, an increase of 76%. The increase is due to a 2% rise in revenue as a result of the higher volume of activity, to a 7% decrease in expenses, primarily marketing costs, and to a transition to financing income as a result of a positive return on the Company's investments in financial assets held for trade.

1.2 Business and Corporate Highlights for the First Quarter of 2023

BUSINESS HIGHLIGHTS

• The average daily trading volume of shares in the first quarter of 2023 amounted to approximately NIS 2.1 billion, a 18% decrease compared to the volumes in the corresponding quarter in the previous year.
• The average daily trading volume of corporate bonds in the first quarter of 2023 amounted to approximately NIS 1.1 billion, a 13% increase compared to the volumes in the corresponding quarter in the previous year. The average daily trading volume of government bonds in the first quarter of 2023 amounted to approximately NIS 3.0 billion, a 10% increase 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 March 31, 2023. 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 2023.

• The average daily trading volume of T-bills in the first quarter of 2023 amounted to NIS 1.4 billion compared with NIS 0.5 billion in the corresponding quarter in the previous year, an increase of 193%.
• The average daily redemptions or creations volume of mutual funds in in the first quarter of 2023 amounted to NIS 1.5 billion compared with NIS 0.9 billion in the corresponding quarter in the previous year, an increase of 59%.
• The daily average trading volume of derivatives in the first quarter of 2023 amounted to 164.4 thousand units a day, compared with 176.1 thousand units in the corresponding quarter in the previous year, a decrease of 7%.
• In the first quarter of 2023, NIS 2.6 billion was raised on TASE in shares, a decrease of 66% over the corresponding quarter in the previous year, of which NIS 0.2 billion was raised in a single IPO (compared to NIS 1.4 billion raised in 8 IPOs during the first quarter of 2022).
• In the first quarter of 2023, NIS 21.9 billion was raised on TASE in corporate bonds, a decrease of 15% over the corresponding quarter in the previous year and NIS 16.5 billion was raised on TASE in government bonds, an increase of 7% over the corresponding quarter in the previous year.
• In the first quarter of 2023, NIS 129.7 billion was raised on TASE in T-bills, an increase of 217% over the corresponding quarter in the previous year.
• The leading indices TA-35, TA-90, TA-125 and TA-SME60 decreased by 3.2%, 9.0%, 4.8% and decreased by 11.4% respectively, in the first quarter of 2023.
• A 5% decrease in the balance of assets in custodianship at TASE-CH in March 31,2023 to an amount of NIS 2.8 trillion, compared to the balance of assets in December 31,2022.
• The marketing expenses of the Company totaled NIS 0.9 million in the first quarter of 2023, a decrease of 85% over the corresponding quarter in the previous year. In the first quarter of 2022, the Company launched new advertising campaign on digital media and traditional media, at a total cost of NIS 3.9 million.
• Net financing in the first quarter of 2023 totaled NIS 2.5 million, as compared to net financing expenses of NIS 5.2 million in the corresponding quarter last year. The transition to financing income this quarter resulted from a positive return of approximately 0.5% on the Company's investments in marketable securities' portfolios comprising of Israeli Government bonds, as compared to a negative return of approximately 2.5% in the corresponding quarter last year. In addition, the increase in the interest rate generated the Company interest income on deposits in an amount of NIS 1.5 million.
• TASE to initiate the third stage of its declared Buyback scheme in an amount of up to NIS 33.9 million over six months. For additional information, see Section 4.1 below.
• In addition, the Board of Directors of the Company approved a special Buyback plan of up to NIS 90 million until the end pf June 2023, which is not subject to the prescribed restrictions and to the terms of the "safe harbor" protection, see Section 4.1 below.

2. Summary of Information Relating to the Results for the First Quarter of 2023 (NIS, in thousands)

Three Months Ended March 31, 2023 Compared to the Three Months Ended March 31, 2022

Statement of Profit or Loss

	Quarter ended		Difference
	31.3.2023	31.3.2022	Amount	%
Revenue from services	100,016	97,676	2,340	2%
Expenses	69,976	73,406	(3,430)	(5%)
Profit before financing income, net	30,040	24,270	5,770	24%
Financing income (expenses)	2,528	(5,207)	7,735	-
Profit before Taxes on income	32,568	19,063	13,505	71%
Taxes on income	7,087	4,344	2,743	63%
Net profit	25,481	14,719	10,762	73%
% of total revenue from services for the quarter	25.5%	15.1%

• Revenue in the first quarter of 2023 totaled at NIS 100.0 million, compared to revenue of NIS 97.7 million in the corresponding quarter last year, an increase of 2%. The increase in revenue is due mainly to the increased volume of activity, excluding the non-recurring effect of an update to the estimated period of revenue recognition from listing fees recorded in the corresponding quarter last year in an amount of NIS 4.3 million, a 7% increase .
• Costs in the first quarter of 2023 totaled at NIS 70.0 million, compared to costs of NIS 73.4 million in the corresponding quarter last year, a 5% decrease. The decrease in the costs is due mainly to a reduction in marketing expenses in the reported period .
• Net financing in the first quarter of 2023 totaled at NIS 2.5 million, as compared to net financing expenses of NIS 5.2 million in the corresponding quarter last year. The transition to financing income this quarter resulted from a positive return of approximately 0.5% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, as compared to a negative return of approximately 2.5% in the corresponding quarter last year. In addition, the increase in the interest rate generated the Company interest income on deposits in an amount of NIS 1.5 million.
• The profit in the first quarter of 2023 totaled at NIS 25.5 million, compared to NIS 14.7 million in the corresponding quarter last year, an increase of 73%. The increase in profit was due to the increase in revenue from services, the reduction in expenses and the transition to financing income, all as explained below, net of an increase in the tax expense due to the higher pre-tax profit.

	Quarter ended
	31.3.2023	31.3.2022	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	100,359,684	101,877,265	-1.5%
Diluted earnings per share	102,067,851	104,092,262	-1.9%
Basic earnings per share in NIS	0.254	0.144	76%
Diluted earnings per share in NIS	0.250	0.141	77%

The revenue in the first quarter of 2023 – below is the composition of the first quarter's revenue, compared to the corresponding quarter last year:

	Quarter ended
Revenue from services	31.3.2023	% of the Company's total revenues	31.3.2022	% of the Company's total revenues	% change
	41,923	42%	39,445	40%	6%
Trading and clearing commissions	9% of the increase in revenue from trading and clearing commissions is due to the increase in revenue from T-bills, inter alia, as a result of the increase in T-bills issuances and the cancellation of the maximum commission on off-exchange transactions. An increase in revenue from mutual funds and corporate bonds resulted in a 3% increase in revenue. In opposition, a decrease in revenue from shares, due to the reduced trading volumes, resulted in a 6% decrease in revenue compared to the corresponding quarter last year.
	20,302	20%	24,789	25%	(18%)
Listing fees and levies	The decrease in revenue from listing fees and levies is due to the updating of the estimate concerning the period of recognition of revenue from listing fees on shares and ETFs pursuant to International Financial Reporting Standard, "Revenue from Contracts with Customers" (IFRS 15), in an amount of NIS 4.3 million, performed in the corresponding quarter last year.
	19,113	19%	17,352	18%	10%
Clearing House services	12% of the increase in revenue from Clearing House services is due to an increase in Clearing House services to companies and members. In opposition, a 4% reduction is due to the decrease in revenue from custodian fees as a result of the reduction in the value of assets that are held in custodianship at TASE-CH.
	17,124	17%	14,299	15%	20%
Data distribution and connectivity services	11% of the increase in revenue from data distribution and connectivity services is due to the updating of the index-usage pricelist, 9% of the increase in revenue is due revenue from colocation services, from data terminals for customers outside Israel and from the sale of other information (3% each).
	1,554	2%	1,791	2%	(13%)
Other revenue	The decrease in revenue is due to revenue from the sale of technological consulting services provided in the corresponding quarter last year in an amount of NIS 0.7 million. In opposition, a municipal tax refund of NIS 0.6 million in respect of previous years was received this quarter.
Total revenue from services	100,016	100%	97,676	100%	2%

Adjusted Net Profit and Adjusted EBITDA Data²

	Quarter ended		Difference
	31.3.2023	31.3.2022	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income (expenses), net	30,040	24,270	5,770
Adjustments:
Share-based payment expenses	611	131	480
Depreciation and capital losses	12,883	12,448	435
Adjusted EBITDA for the quarter:	43,534	36,849	6,685	18%
% of total revenue from services for the quarter	43.5%	37.7%
Adjusted profit for the quarter:
Profit for the quarter	25,481	14,719	10,762
Adjustments:
Share-based payment expenses	611	131	480
Adjusted profit for the quarter:	26,092	14,850	11,242	76%
% of total revenue from services for the quarter	26.1%	15.2%

• − The adjusted EBITDA in the first quarter of 2023 totaled at NIS 43.5 million, compared to NIS 36.8 million in the corresponding quarter last year, an increase of 18%. The increase is due to a 2% rise in revenue and to a 5% decrease in expenses, primarily marketing costs.
• − The adjusted profit in the first quarter of 2023 totaled at NIS 26.1 million, compared to NIS 14.9 million in the corresponding quarter last year, an increase of 76%. The increase is due to a 2% rise in revenue as a result of the higher volume of activity, to a 7% decrease in expenses, primarily marketing costs, and to a transition to financing income as a result of a positive return on the Company's investments in financial assets held for trade.

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.

Summary of Information Relating to the Financial Position as of March 31, 2023 (NIS, in thousands):

	As of 31.03.2022	As of 31.03.2022
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short term financial assets	401,640	388,627	13,013	3%
Other current assets	41,041	23,591	17,450	74%
Property and equipment and intangible assets	452,348	455,662	(3,314)	(1%)
Other non-current assets	9,797	6,991	2,806	40%
Total assets (*)	904,826	874,871	29,955	3%
Current liabilities	123,375	96,092	27,283	28%
Non-current liabilities	89,261	92,331	(3,070)	(3%)
Total liabilities (*)	212,636	188,423	24,213	13%
Total equity	692,190	686,448	5,742	1%
Ratio of equity to total assets (*)	76%	78%
Adjusted ratio of equity to total assets () (*)	88%	91%
Surplus equity over regulatory requirements (in NIS millions)	615	613	2	0%
Surplus liquidity over regulatory requirements (in NIS millions) (**)	273	257	16	6%

(*) The total assets and liabilities in the balance sheet as of March 31, 2023 and December 31, 2022, include a balance of assets and liabilities in respect of open derivative positions amounting to NIS 1,371 million and NIS 937 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, 2023 amounted to NIS 904.8 million, a 3% increase compared to December 31, 2022. Most of the increase is due to an increase in cash and cash equivalents and in other receivables.
• The total liabilities as of March 31, 2023 amounted to NIS 212.6 million, a 13% increase compared to December 31, 2022. Most of the increase is due to annual levies that were collected in advance.
• The total equity as of March 31, 2023 amounted to NIS 692.2 million, a 1% increase compared to December 31, 2022. The increase in the equity is due mainly to the profit of NIS 25.5 million in the quarter, other comprehensive income of NIS 2.2 million and proceeds from the sale of shares within the framework of the TASE ownership restructuring in an amount of NIS 1.8 million, less a buyback of Company's shares in an amount of NIS 24.4 million.
• (**) The adjusted equity also includes the total deferred income from listing fees.

Summary of Cash Flows for the Three Months Ended March 31, 2023 (NIS, in millions):

		31
	Item	2023	2022	Explanations of the Company
	Adjusted EBITDA	43.5	36.8	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 to a reduction in expenses, primarily marketing expenses.
Net cash from operating activities	Changes in working capital	8.8	13.1	The decrease in working capital is due mainly to an increase in trade and other receivables.
	Financing and tax	(4.0)	(2.6)	The decrease is due mainly to higher tax payments, net in the quarter, compared to the corresponding quarter last year.
Net cash for investing activities	Total	48.3	47.3	Cash flows from operating activities grew by 2% between the quarters.
	Investments in property and equipment and in intangible assets and capitalized payroll costs	(11.4)	(15.6)	The decrease is due to the timing of implementation of the Group's investment work plans in the quarters.
	Acquisition of financial assets, net	(1.4)	-	Acquisition of assets in accordance with the Company's investments policy.
	Total	(12.8)	(15.5)
	Lease payments	(2.1)	(2.2)
	Short-term credit	0.9	-
Net cash for financing activities	Acquisition of treasury shares	(24.4)	-
	Payments carried directly to equity within the framework of implementing the TASE Restructuring Law, net	1.8	3.8	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law.
	Total	(23.8)	1.6
equivalents	Total increase in cash and cash	11.7	33.4

Three months ended March

3. 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 2023, there were 64 trading days, the same as in the corresponding quarter last year.

Presented below are expected trading days:

	Q1	Q2	Q3	Q4	TOTAL
Year
2022	64	61	61	58	244
2023	64	58	61	65	248

4. Events During the Reporting Period and Thereafter

4.1 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's shares in an amount of up to NIS 100 million and for a period of up to two years.

In May 2022, the Board of Directors of the Company approved a first plan for the buyback of Company's shares in an amount of up to NIS 36 million over a six-month period, in "safe harbor" format. Following its expiration, in November 2022, the Board of Directors of the Company approved an additional plan for the buyback of Company's shares in an amount of up to NIS 36 million over a six-month period.

The Company purchased under the second buyback plan 2,029,614 ordinary shares in an amount of NIS 36 million.

Under the two plans TASE has purchased overall 3.9 million shares for a total consideration close to NIS 66 million, at an average price of NIS 17.1 per share.

On May 23,2023, after establishing the fulfillment of the profit criterion and the solvency criterion (as these terms are defined in the Companies Law, 1999), the Board of Directors of the Company approved an additional plan for the buyback of Company's shares in an amount of up to NIS 33.9 million and for a period of six months (hereafter: "the Third Plan"). For details regarding the Third Plan, see the Company's immediate report dated May 23,2023.

In addition, on the same date, the Board of Directors of the Company approved a special buyback plan of up to NIS 90 million in effect until the end of June 2023, which is not subject to the prescribed restrictions and to the terms of the "safe harbor" protection. For details regarding the aforesaid special buyback plan, see the Company's immediate report dated May 23,2023.

4.2 Receipts from Shareholders Within the Framework of Implementing the Ownership Restructuring

Concerning the sale by shareholders of shares held by them prior to the date of approval of the restructuring arrangement in TASE (hereafter: "the Holders of Arrangement Shares"), during the first three months of 2023 the Holders of Arrangement Shares sold 150,000 shares. In respect of this sale, an amount of NIS 1.8 million was transferred to TASE.

4.3 Warrant Plan for Officers in the Company

On February 26, 2023, the Board of Directors of the Company, after obtaining the approval of the Compensation Committee, approved a warrant plan for the officers in the Company and the grant to 9 officers of the Company of 2,980,000 warrants exercisable into 2,980,000 ordinary shares of the Company, over a period of 4 years, at an exercise price of NIS 24.386 per share. The cost of the benefit embodied in the warrants granted as aforesaid, based on their fair value on their grant date, amounted to

NIS 10 million. The total expense collected as expenses in respect to share-based payments for a period of three months that ended on March 31, 2023, amounted to 480 thousand NIS.

4.4 Retention Plan o the Company's CEO

On May 4,2023, the general meeting of the Company's shareholders approved the retention plan for the CEO of the Company over a five-year period, including the extension of the new retention loan in an amount of NIS 3.5 million and the grant of 544,435 warrants exercisable into 544,435 ordinary shares of the Company at an exercise price of NIS 40 per share. The cost of the benefit inherent in the options that are granted as aforesaid, based on the fair value on their grant date, amounts to approximately NIS 1.5 million.

4.5 Approval of a Candidate for Chairman of the Company's Board of Directors

On April 30,2023 and May 4, 2023, the Board of Directors of the Company, after obtaining the approval of the Audit Committee in its capacity as Compensation Committee, approved the nomination and the terms of employment of Prof. Eugene Kandel as a non-executive Chairman of the Board of Directors, at a 50% employment percentage. It should be noted that the appointment of Prof. Kandel is in accordance with the provisions of Section 50B6 of the Securities Law, 1968, for an initial term of 5 years is subject to the approval by the Company's shareholders' meeting of his appointment and the terms of his office, as well as to the approval of the Israeli Securities Authority, in accordance with the provisions of Section 50B16 of the Securities Law, 1968. In accordance with his terms of employment, and subject to the approval of the shareholders' meeting, Prof. Kandel shall be entitled to a (gross) monthly salary of NIS 64.5 thousand, an annual bonus of up to three (gross) monthly salaries and the grant of 319,800 warrants exercisable into 319,800 ordinary shares of the Company over a period of 4 years, at an exercise price of NIS 24.386 per share, as well as to related benefits, as customary in the Company.

The cost of the benefit embodied in the warrants granted as aforesaid, based on their fair value on their grant date, amounted to NIS 1.0 million. The warrants will be allotted to a trustee, subject to the receipt of the approvals required pursuant to Section 102 of the Income Tax Ordinance under the capital gains track, and subject to obtaining TASE's approval for the listing of the exercise shares.

4.6 Donations

After the date of the report, the Board of Directors of the Company approved the establishment of a fund, in collaboration with Social Finance Israel (SFI) for the integration of underprivileged populations in the capital market and in other areas of activity. The fund will raise funds for specific ventures using a Career Impact Bond (CIB) model, to allow diverse populations access to training and quality employment in various areas. The Company will donate an amount of NIS 300 thousand towards the establishment of the fund.

4.7 Mutual Hedge Funds

In March 2023, the dedicated system for the clearing of mutual hedge funds aired, with the last week of March 2023 set as the first "creation period". During the first creation period, creation orders totaling NIS 20 million were submitted, this in relation to 15 mutual hedge funds, with prospectuses approved by the Israel Securities Authority, that registered at the TASE Clearing House. To the date of the report, 20 mutual hedge funds are registered in TASE-CH.

4.8 Trading Platforms for Cryptographic Currency

In accordance with TASE's strategic plan, and subject to obtaining the approval of the Israel Securities Authority, TASE-CH intends to offer custody services for digital assets, with emphasis on cryptographic currency. Initially, the service will be provided for select cryptographic currencies, and only to entities that have been granted a permit/license by the applicable regulator and in conformity with the applicable regulation. These services will, for the first time in Israel, make digital assets' custody services accessible to local investors and market participants, by a regulated entity possessing the necessary experience. The Company believes that this will be conducive to the development of proper digital asset trading in Israel, as well as to the adoption of innovative technologies by the major financial infrastructures. It will give Israeli investors access to quality services in relation to digital assets, while reducing the dependence of local investors on service providers that are not subject to regulation and/or that do not possess the necessary experience.

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 operates 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 Ben Ezra		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

12

Information relating to the results for the first quarter of 2023 (NIS, in thousands)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	March 31,	December 31,
	2023	2022	2022
Assets
Current assets
Cash and cash equivalents	204,271	213,259	192,416
Financial assets at fair value through profit or loss	197,369	203,843	196,211
Trade receivables	20,598	16,179	16,021
Other receivables	20,443	22,326	7,570
	442,681	455,607	412,218
Assets derived from clearing operations in respect of open derivative positions	1,371,095	572,152	937,259
Total current assets	1,813,776	1,027,759	1,349,477
Non-current assets
Cash restricted as to use	720	720	720
Deferred tax assets	4,936	12,254	5,586
Property and equipment, net	309,429	333,184	315,598
Intangible assets, net	142,919	130,111	140,064
Other long-term receivables	4,141	2,233	685
Total non-current assets	462,145	478,502	462,653
Total assets	2,275,921	1,506,261	1,812,130

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

	March 31,	December 31,
	2023	2022	2022
Liabilities and Equity
Current liabilities
Current maturities of lease liabilities	7,490	8,580	8,473
Trade payables	9,632	16,885	13,864
Other payables	6,788	5,527	3,036
Dividend declared	-	22,735	-
Income received in advance with respect to annual levies	28,420	26,053	-
Deferred income from listing fees, levies and others	27,888	29,640	28,412
Current tax liabilities	5,200	2,916	4,743
Short-term liabilities for employee benefits	37,957	35,679	37,564
	123,375	148,015	96,092
Liabilities derived from clearing operations in respect of open derivative positions	1,371,095	572,152	937,259
Total current liabilities	1,494,470	720,167	1,033,351
Non-current liabilities
Lease liabilities	5,500	12,411	6,572
Deferred income from listing fees and levies	77,711	78,563	78,459
Non-current liabilities for employee benefits	5,326	24,922	6,580
Other liabilities	724	720	720
Total non-current liabilities	89,261	116,616	92,331
Equity
Remeasurement of net defined benefit liability	7,386	(6,565)	5,207
Capital reserve in respect to share-based payment transactions	34,398	33,388	33,787
Other capital reserves	56,071	54,222	54,222
Retained earnings	594,335	588,433	593,232
Total equity	692,190	669,478	686,448
Total liabilities and equity	2,275,921	1,506,261	1,812,130

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

	Three months ended March 31,	Year ended December 31,
	2023	2022	2022
Revenue from services:
Trading and clearing commissions	41,923	39,445	142,490
Listing fees and levies	20,302	24,789	84,489
Clearing House services	19,113	17,352	70,908
Distribution of data and connectivity services	17,124	14,299	58,060
Other revenue	1,554	1,791	5,064
Total revenue from services	100,016	97,676	361,011
Cost of revenue:
Employee benefits expenses	38,171	40,153	147,905
Expenses in respect to share-based payments	611	131	530
Computer and communications expenses	9,013	6,830	29,953
Property taxes and building maintenance expenses	3,227	3,140	13,798
General and administrative expenses	2,779	2,658	11,648
Marketing expenses	863	5,740	13,171
Fee to the Israel Securities Authority	2,429	2,306	9,341
Depreciation and amortization	12,868	12,448	51,335
Other expenses	15	-	132
Total costs	69,976	73,406	277,813
Profit before financing income (expenses), net	30,040	24,270	83,198
Financing income	2,648	(5,105)	(12,802)
Financing expenses	(120)	102	423
Total financing income (expenses), net	2,528	(5,207)	(13,225)
Profit before taxes on income	32,568	19,063	69,973
Taxes on income	7,087	4,344	19,137
Profit for the year	25,481	14,719	50,836
Basic earnings per share (NIS)	0.254	0.144	0.500
Diluted earnings per share (NIS)	0.250	0.141	0.492

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, 2023	33,787	5,207	54,222	593,232	686,448
Profit for the period	-	-	-	25,481	25,481
Other comprehensive loss for the period	-	2,179	-	-	2,179
Total comprehensive income for the period	-	2,179	-	25,481	27,660
Share-based payment	611	-	-	-	611
Acquisition of Treasury shares				(24,378)	(24,378)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	1,849	-	1,849
Balance at March 31, 2023	34,398	7,386	56,071	594,335	692,190

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Three months ended March 31,		Year ended December 31,
	2023	2022	2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	25,481	14,719	50,836
Expenses in respect of share-based payments	611	131	530
Tax expenses recognized in profit or loss	7,087	4,344	19,137
Net financing expenses (income) recognized in profit or loss	(2,528)	5,207	13,225
Depreciation and amortization	12,868	12,448	51,335
Loss from disposal of property and equipment and intangible assets	15	-	131
	43,534	36,849	135,194
Changes in asset and liability items:
Increase in trade receivables and other receivables	(20,891)	(12,573)	(532)
Decrease (increase) in receivables in respect to open derivative positions	(433,836)	93,119	(271,988)
Increase in trade payables and other payables	577	1,257	(2,320)
Increase in income received in advance with respect to annual levies	28,420	25,763	-
Increase (decrease) in deferred income from listing fees, levies and others	(1,272)	(2,534)	(4,156)
Increase (decrease) in payables in respect to open derivative positions	433,836	(93,119)	271,988
Increase in liabilities for employee benefits	1,969	1,182	14
	52,337	49,944	128,200
Interest received	2,783	1,234	5,297
Interest paid	(168)	(122)	(417)
Tax payments - operating activities	(6,614)	(3,684)	(13,498)
	(3,999)	(2,572)	(8,618)
Net cash provided by operating activities	48,338	47,372	119,582
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,196)	(7,461)	(14,841)
Acquisitions of intangible assets	(4,628)	(3,354)	(14,086)
Payments in respect to costs capitalized to property and equipment and to intangible assets	(5,625)	(4,738)	(19,331)
Disposal (acquisition) of financial assets at fair value through profit or loss, net	(1,400)	34	(4,632)
Net cash used in investing activities	(12,849)	(15,519)	(52,890)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(2,125)	(2,248)	(8,815)
short term credit	889	-	-
Dividend paid	-	-	(22,735)
Company's share in the first-time listing of the shares	(24,378)	-	(31,318)
Receipts (payments) carried directly to equity within the framework of implementing the TASE Restructuring Law, net	1,849	3,793	8,220
Net cash provided by (used in) financing activities	(23,765)	1,545	(54,648)
Net increase in cash and cash equivalents	11,724	33,398	12,044
Cash and cash equivalents, beginning of the period	192,416	179,768	179,768
Effect of changes in exchange rates on cash balances held in foreign currency	131	93	604
Cash and cash equivalents, end of the period	204,271	213,259	192,416

Quarterly statements of profit or loss for 2022 and for the first quarter of 2023 (NIS, in thousands)

	Jan-Mar 2022	Apr-Jun 2022	Jul-Sep 2022	Oct-Dec 2022	Jan-Mar 2023	2022
Item			(Unaudited)			(Audited)
Number of trading days	64	61	61	58	64	244
Revenue from services:
Trading and clearing commissions	39,445	35,872	33,412	33,761	41,923	142,490
Listing fees and levies	24,789	20,256	19,927	19,517	20,302	84,489
Clearing House services	17,352	18,345	17,340	17,871	19,113	70,908
Distribution of data and connectivity services	14,299	15,076	14,407	14,278	17,124	58,060
Other revenue	1,791	1,437	938	898	1,554	5,064
Total revenue from services	97,676	90,986	86,024	86,325	100,016	361,011
Cost of revenue
Expenses in respect of employee benefits, net	40,153	38,333	34,288	35,131	38,171	147,905
Share-based payment expenses	131	132	133	134	611	530
Computer and communication expenses	6,830	7,362	7,331	8,430	9,013	29,953
Property taxes and building maintenance expenses	3,140	3,347	3,825	3,486	3,227	13,798
General and administrative expenses	2,658	2,299	3,351	3,340	2,779	11,648
Marketing expenses	5,740	1,583	4,303	1,545	863	13,171
Fee to the Israel Securities Authority	2,306	2,307	2,393	2,335	2,429	9,341
Depreciation and amortization expenses	12,448	12,736	13,090	13,061	12,868	51,335
Other expenses	-	46	80	6	15	132
Total cost of revenue	73,406	68,145	68,794	67,468	69,976	277,813
Profit before financing income (expenses), net	24,270	22,841	17,230	18,857	30,040	83,198
Financing income	(5,105)	(3,302)	(4,033)	(362)	2,648	(12,802)
Financing expenses	102	114	95	112	(120)	423
Total financing income (expenses), net	(5,207)	(3,416)	(4,128)	(474)	2,528	(13,225)
Profit before taxes on income	19,063	19,425	13,102	18,383	32,568	- 69,973
Taxes on income	4,344	5,220	4,395	5,178	7,087	19,137
Net profit	14,719	14,205	8,707	13,205	25,481	50,836

Transactional Services

	Three months ended March 31,		Year ended December 31,
	2023	2022	2022
Number of trading days	64	64	244
SHARES
Market cap of Shares (ex. ETFs)	893	1,135	949
Market cap of ETFs on share indices	71	76	71
Total market cap (in NIS billions)	964	1,211	1,020
Shares ADV (ex. ETFs)	1,733	2,093	1,874
ETFs on share indices ADV	403	504	421
Total average daily volume (in NIS millions)	2,136	2,597	2,295
Average commissions	0.01085%	0.01043%	0.01044%
Revenue (in NIS thousands)	14,827	17,340	58,469
BONDS
Market cap of government bonds -unlinked	278	331	287
Market cap of government bonds - linked	306	334	300
Market cap of corporate bonds	411	422	409
Market cap of bonds (ex. ETFs)	995	1,087	996
Market cap of ETFs on bond indices	27	30	27
Total market cap (in NIS billions)	1,022	1,117	1,023
Government bonds - unlinked ADV (in NIS millions)	1,885	1,702	1,476
Government bonds - linked ADV (in NIS millions)	1,109	1,030	955
Corporate bonds ADV excluding ETFs (in NIS millions)	969	820	916
ETFs on bond indices ADV	125	152	130
Total Average daily volume (in NIS millions)	4,088	3,704	3,477
Government bonds unlinked - average commissions	0.00195%	0.00188%	0.00195%
Government bonds linked - average commissions	0.00294%	0.00283%	0.00290%
Corporate bonds - average commissions	0.00701%	0.00693%	0.00707%
Government bonds - unlinked (in NIS thousands)	2,350	2,053	7,010
Government bonds - linked (in NIS thousands)	2,085	1,869	6,760
Corporate bonds (in NIS thousands)	4,909	4,309	18,036
Other (MTS) (in NIS thousands)	74	103	208
Revenue (in NIS thousands)	9,418	8,334	32,014
TREASURY BILLS
Market cap (in NIS billions)	272	126	209
Treasury bills ADV (in NIS millions) Average commissions	1,377 0.00492%	470 0.00265%	783 0.00334%
Revenue (in NIS thousands)	4,332	797	6,375
MUTUAL FUNDS
Market cap (in NIS billions)	277	284	272
Average daily value of creation/ redemptions (in NIS millions)	1,498	940	987
Average commissions	0.00779%	0.01134%	0.01027%
Revenue (in NIS thousands)	7,468	6,818	24,732

	Three months ended March 31,		Year ended December 31,
	2023	2022	2022
DERIVATIVES
Derivatives on indices	110.1	125.3	114.6
Derivatives on foreign currency	42	43.3	40.3
Derivatives on individual shares	12.3	7.5	4.3
Total derivative contracts (in '000 units)	164.4	176.1	159.2
Options on indices - Average commissions	0.580	0.580	0.580
Derivatives on FX -Average commissions	0.360	0.360	0.360
Derivatives on single shares- Average commissions	1.000	1.000	1.000
Revenue (in NIS thousands)	5,878	6,156	20,900
Total revenue from trading and clearing commissions	41,923	39,445	142,490

Non-Transactional Services

	Three months ended March 31,		Year ended December 31,
	2023	2022	2022
CLEARING HOUSE SERVICES
Average Monthly Market value of assets (in NIS billions)	2,829	3,116	2,983
Avg. commissions from Custodian Fees	0.00109%	0.00108%	0.00109%
Revenue from: (in NIS thousands)
Custodian Fees	7,741	8,444	32,460
Clearing House services for members / company events	9,991	7,609	33,348
Other	1,381	1,299	5,100
Total revenue from Clearing House services	19,113	17,352	70,908
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	630	617	612
Mutual funds and ETFs	2,341	2,270	2,314
Avg. revenue from levies (in NIS thousands)
Companies	5.4	5.7	22.8
Mutual funds and ETFs	2.0	1.9	7.7
Revenue from Annual Levies from: (in NIS thousands)
Companies	3,397	3,515	13,966
Mutual funds and ETFs	4,740	4,350	17,778
Nominee Company and others	1,838	1,564	6,381
Total revenue from Annual levies	9,975	9,429	38,125
The value of issuance used to calculate Listing fees (in NIS millions)
Companies – Shares, Bonds and ETFs	28,664	43,409	143,732
Government bonds (including swap transactions)	16,451	15,418	41,501
Treasury-bills	129,693	40,929	231,158

	Three months ended March 31,		Year ended December 31,
	2023	2022	2022
Number of issuances
Number of public offerings of shares on TASE (including on TASE-UP)	16	29	78
Number of new issuers of shares	1	8	13
Number of new (dual-listed) companies	2	1	2
Number of Offerings and Volumes Raised
Amount raised in share IPOs of new issuers (in NIS millions)	145	1,391	2,342
Amount raised in bond offerings by new issuers (in NIS millions)	105	272	967
Number of corporate bond offerings to the public	33	51	165
Number of corporate bond offerings to the public by new companies	2	2	8
Average revenue from Examination and Listing Fees
Companies – shares, bonds and ETFs	0.0165%	0.0178%	0.0175%
Revenue from Examination and Listing Fees (in NIS thousands)
Examination fees	1,946	2,320	8,245
Receipts from listing Fees
Listing fees - shares, bonds & ETF's	4,728	7,741	25,183
Listing fees - government bonds	1,567	1,488	5,952
Listing of T-bills	908	287	1,618
Levies and examination fees from members Other	57 26	158 53	850 236
Total	7,286	9,727	33,839
Accounting adjustments to revenue recognition	1,095	3,313	4,280
Total revenue from listing Fees	8,381	13,040	38,119
Total revenue from examination and listing fees (in NIS thousands)	10,327	15,360	46,364
Total revenue from listing fees and levies	20,302	24,789	84,489
DATA DISTRIBUTION AND CONNECTIVITY SERVICES (*)
Average number of data terminals
Domestic business clients	7,379	7,718	7,419
Overseas business clients	5,722	5,480	5,447
Non-display data	308	318	288
Revenue from distribution and connectivity services (in NIS thousands)
Domestic business clients	4,450	4,315	16,693
Private clients	2,103	2,108	8,254
Overseas business clients	2,589	2,285	9,251
Derivative date and non-display data	1,199	1,005	4,775
Data files and other data Authorization for indices usage	1,167 2,462	982 902	4,147 3,202
Connectivity services	3,154	2,702	11,738
Total revenue from Data distribution and Connectivity services	17,124	14,299	58,060

The velocity of trading (1) in Israel in the reported period:

	Three months ended March 31,		% Change	Year ended December 31,
	2023	2022		2022
Velocity of trading
Shares	45.5%	48.5%	(6%)	43.1%
Corporate bonds (2)	63.9%	56.2%	14%	60.9%
Government bonds – shekel (3)	139.4%	101.9%	37%	95.2%
Government bonds – linked (4)	80.0%	66.9%	20%	66.6%
Treasury bills	125.4%	87.2%	44%	115.4%

(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.

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
	31.03.23	30.06.23	30.09.23	31.12.23	31.03.24	31.03.25	31.03.26	31.03.26
Listing of
Shares	28.1	1.5	1.5	1.4	1.4	5.1	4.4	12.8
Corporate bonds	39.8	3.3	3.1	2.9	2.7	9	6.4	12.4
ETF	23.9	1.2	1.2	1.2	1.2	4.5	3.8	10.8
Government bonds	11.7	1	1	0.9	0.9	3.4	2.2	2.3
T-bills	1.4	0.5	0.5	0.3	0.1	0	0	0
Total	104.9	7.5	7.3	6.7	6.3	22.0	16.8	38.3