Tel Aviv Stock Exchange Ltd. — Interim / Quarterly Report 2023

Nov 21, 2023

THE TEL-AVIV STOCK EXCHANGE LTD THIRD QUARTER 2023 RESULTS

Hello,

The State of Israel is living through one of the most difficult periods since its establishment. We, the employees, management and Board of Directors of the Tel Aviv Stock Exchange bow our heads in memory of the victims of October 7th , the fallen IDF soldiers and security forces who gave their lives defending our country. We pray for the full recovery of all the wounded in body and soul, and for the safe return of our soldiers – among them employees of the Stock Exchange .We stand with the families of the hostages and the missing, demanding that no effort be spared to bring everyone safely and urgently home .

Israel is a strong and resilient country with determined citizens, a powerful army and a productive economy. No enemy, however savage and inhuman, will succeed in breaking our spirit.

We at the Tel Aviv Stock Exchange, the home of the Israeli economy, stand resolute in ensuring continuity, stability and security for companies and investors, foreign and local, enabling and facilitating continued investment in the Israeli economy.

We are committed, in partnership with many others, to do whatever is necessary to preserve and enhance Israel's economic strength.

All TASE Board of Directors

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

November 21, 2023 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the third quarter ended September 30, 2023. 1

1. General

TASE continue to achieve strong financial results. The revenue totaled to NIS 95.5 million, and increased by 11% compared to the corresponding quarter of 2022. Adjusted net profit increased significantly by 127% in the third quarter of 2023 to NIS 20.1 million, compared to NIS 8.8 million in the corresponding quarter last year and the Adjusted EBITDA amounted in the third quarter of 2023 to NIS 38.4 million, increased by 26%, compared to corresponding quarter last year.

As of 1.1.2023 and up to 30.9.2023, TASE purchased appx. 8,218 thousands of its ordinary shares in consideration for NIS ~153.7 million.

Today, November 21, 2023 the Board of Directors of TASE instructed the management of the Company to present to the Board of Directors for approval a tender offer buyback, for up to NIS 50 million (see section 5.17 here in after).

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

Third Quarter Results

• TASE revenues amounted to NIS 95.5 million in the third quarter of 2023, an increase of 11% compared to NIS 86.0 million in the corresponding quarter last year. Revenue in the quarter increased across all operations, with 7% of the increase attributed to revenue other than from trading and clearing and 4% attributed to the increase in revenue from trading and clearing.
• Adjusted EBITDA amounted in the third quarter of 2023 totaled NIS 38.4 million, compared to NIS 30.5 million in the corresponding quarter last year, an increase of 26%, stemming mainly from the increase in revenue.
• Adjusted net profit amounted in the third quarter of 2023 totaled NIS 20.1 million, compared to NIS 8.8 million in the corresponding quarter last year, an increase of 127%, stemming mainly from the increase in revenue and the transition to financing income as a result of the higher returns on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to the corresponding quarter last year, and the increase in the interest on deposits.

1.2 Business and Corporate Highlights for the Third Quarter of 2023 BUSINESS HIGHLIGHTS

• The average daily trading volume of shares in the third quarter of 2023 amounted to approximately NIS 1.9 billion, a 14% decrease compared to the volumes in the corresponding quarter in the previous year.
• The average daily trading volume of corporate bonds in the third quarter of 2023 amounted to approximately NIS 1.1 billion, an increase of 18% compared to the volumes in the corresponding quarter in the previous year.
• The average daily trading volume of government bonds in the third quarter of 2023 amounted to approximately NIS 2.4 billion, a 7% 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 September 30, 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 December 2023.

• The average daily trading volume of T-bills in the third quarter of 2023 amounted to NIS 1.3 billion compared with NIS 0.7 billion in the corresponding quarter in the previous year, an increase of 88%.
• The average daily redemptions or creations volume of mutual funds in in the third quarter of 2023 amounted to NIS 1.4 billion compared with NIS 0.9 billion in the corresponding quarter in the previous year, an increase of 54%.
• The daily average trading volume of derivatives in the third quarter of 2023 amounted to 158.8 thousand units a day, compared with 148.9 thousand units in the corresponding quarter in the previous year, an increase of 7%.
• In the third quarter of 2023, NIS 3.3 billion was raised on TASE in shares, a decrease of 42% over the corresponding quarter in the previous year.
• In the third quarter of 2023, NIS 19.8 billion was raised on TASE in corporate bonds, a decrease of 23% over the corresponding quarter in the previous year and NIS 24.0 billion was raised on TASE in government bonds, an increase of 250% over the corresponding quarter in the previous year.
• In the third quarter of 2023, NIS 95.0 billion was raised on TASE in T-bills, an increase of 115% over the corresponding quarter in the previous year.
• The leading indices TA-35, TA-90, TA-125 and TA-SME60 increased by 5.5%, 5.1%, 5.6% and by 2.2% respectively, in the third quarter of 2023.
• The marketing expenses of the company totaled NIS 0.8 million in the third quarter of 2023, a decrease of 81% over the corresponding quarter in the previous year. In the third quarter of 2022, the Company launched advertising campaign, at a total cost of NIS 3.4 million.
• Net financing income in the third quarter of 2023 totaled NIS 2.0 million, compared to net financing expenses of NIS 4.1 million in the corresponding quarter last year. The transition to financing income this quarter resulted from a negative return of approximately 0.1% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to a negative return of approximately 2.2% in the corresponding quarter last year, as well as from the raising of the Bank of Israel interest rate, which increased the interest on deposits.

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

Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022 Statement of Profit or Loss

	Quarter ended		Difference
	30.9.2023	30.9.2022	Amount	%
Revenue from services	95,488	86,024	9,464	11%
Expenses	72,063	68,794	3,269	5%
Profit before financing income, net	23,425	17,230	6,195	36%
Financing income (expenses)	1,988	(4,128)	6,116	-
Profit before Taxes on income	25,413	13,102	12,311	94%
Taxes on income	7,186	4,395	2,791	64%
Net profit	18,227	8,707	9,520	109%
% of total revenue from services for the quarter	19.1%	10.1%

• Revenue in the third quarter of 2023 totaled NIS 95.5 million, compared to NIS 86.0 million in the corresponding quarter last year, an increase of 11%. Revenue in the quarter increased across all operations, with 7% of the increase attributed to revenue other than from trading and clearing and 4% attributed to the increase in revenue from trading and clearing.
• Costs in the third quarter of 2023 totaled NIS 72.1 million, compared to NIS 68.8 million in the corresponding quarter last year, a 5% increase. The increase in the costs is due mainly to a rise in employee benefit expenses and computer and communication expenses, which was partly offset by a decrease in marketing expenses.
• Net financing income in the third quarter of 2023 totaled NIS 2.0 million, compared to net financing expenses of NIS 4.1 million in the corresponding quarter last year. The transition to financing income this quarter resulted from a negative return of approximately 0.1% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to a negative return of approximately 2.2% in the corresponding quarter last year, as well as from the raising of the Bank of Israel interest rate, which increased the interest on deposits.
• The profit in the third quarter of 2023 totaled NIS 18.2 million, compared to NIS 8.7 million in the corresponding quarter last year, an increase of 109%. The increase in profit was due mainly to the increase in revenue and the transition to financing income.

	Quarter ended
	30.9.2023	30.9.2022	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	92,953,041	101,371,622	(8%)
Diluted earnings per share	94,705,333	102,625,552	(8%)
Basic earnings per share in NIS	0.196	0.086	128%
Diluted earnings per share in NIS	0.192	0.085	127%

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

Quarter ended
Revenue from services	30.9.2023	% of the Company's total revenues	30.9.2022	% of the Company's total revenues	% change
Trading and clearing commissions	36,948 39% 33,412 39% 11% The increase in revenue from trading and clearing commissions is due to the 4% increase in revenue from T-bills, inter alia, as a result of the higher trading volumes, the increase in T-bills issuances and the cancellation of the maximum commission on OTC transactions, to the 4% increase in revenue from mutual funds and to the 2% increase in the trading volumes of derivatives.
Listing fees and levies	20,489 21% 19,927 23% 3% The increase in revenue from listing fees and levies is due to the increase in revenues from the annual levies, at a rate of 2% of total revenue, and to an increase in revenue from listing fees, at a rate of 1% of total revenue.
Clearing House services	19,155 20% 17,340 20% 10% The increase in revenue from Clearing House services is due to the 6% rise in Clearing House services to members, with close to half of the rise stemming from the expansion of the services in relation to information on OTC transactions. Another 3% increase is due to an increase in Clearing House services to companies.
Data distribution and connectivity services	18,111 19% 14,407 17% 26% 12% of the increase in revenue from data distribution and connectivity services is due to the updating of the index-usage pricelist and 8% of the increase in revenue is due to revenue from data terminals for business customers outside Israel. Another 6% increase is due to an increase in revenue from data distribution to business customers in Israel and to private customers, and from connectivity services.
Other revenue	785	1%	938	1% The decrease in revenue is due to a reduction in Conference Center activities.	(16%)
Total revenue from services	95,488	100%	86,024	100%	11%

Adjusted Net Profit and Adjusted EBITDA Data²

	Quarter ended		Difference
	30.9.2023	30.9.2022	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income (expenses), net	23,425	17,230	6,195
Adjustments:
Share-based payment expenses	1,883	133	1,750
Depreciation and capital losses	13,104	13,151	(47)
Adjusted EBITDA for the quarter:	38,412	30,514	7,898	26%
% of total revenue from services for the quarter	40.2%	35.5%
Adjusted profit for the quarter:
Profit for the quarter	18,227	8,707	9,520
Adjustments:
Share-based payment expenses	1,883	133	1,750
Adjusted profit for the quarter:	20,110	8,840	11,270	127%
% of total revenue from services for the quarter	21.1%	10.3%

• Adjusted EBITDA amounted in the third quarter of 2023 totaled NIS 38.4 million, compared to NIS 30.5 million in the corresponding quarter last year, an increase of 26%, stemming mainly from the increase in revenue.
• Adjusted net profit amounted in the third quarter of 2023 totaled NIS 20.1 million, compared to NIS 8.8 million in the corresponding quarter last year, an increase of 127%, stemming mainly from the increase in revenue and the transition to financing income as a result of the higher returns on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to the corresponding period last year, and the increase in the interest on deposits.

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 first nine months of 2023 (NIS, in thousands)

Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022 Statement of Profit or Loss

	Nine months ended
	30.9.2023	30.9.2022	Difference	% Change
Revenue from services	288,407	274,686	13,721	5%
Costs	214,630	210,345	4,285	2%
Profit before financing income (expenses), net	73,777	64,341	9,436	15%
Financing income (expenses), net	8,132	(12,751)	20,883	-
Taxes on income	19,426	13,959	5,467	39%
Profit for the period	62,483	37,631	24,852	66%
% of total revenue from services for the period	21.7%	13.7%

• Revenue in the first nine months of 2023 totaled NIS 288.4 million, compared to revenue of NIS 274.7 million in the corresponding period last year, an increase of 5%. The increase in revenue is due to the increased activity of the TASE Group. Eliminating the non-recurring effect of an update to the estimated period of revenue recognition from listing fees recorded in the corresponding period last year, in an amount of NIS 4.3 million, the increase in revenue totals 7%.
• The costs in the first nine months of 2023 totaled NIS 214.6 million, compared to costs of NIS 210.3 million in the corresponding period last year, a 2% increase.
• Net financing income in the first nine months of 2023 totaled NIS 8.1 million, compared to net financing expenses of NIS 12.8 million in the corresponding period last year. The transition to financing income in the period resulted from a positive return of 1.4% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, as compared to a negative return of 6.4% in the corresponding period last year, as well as from an increase in the interest on deposits.
• Net tax expense in the first nine months of 2023 totaled NIS 19.4 million, compared to NIS 14.0 million in the corresponding period last year. The increase in the tax expense stemmed from the higher pre-tax profit.
• The profit in the first nine months of 2023 totaled NIS 62.5 million, compared to NIS 37.6 million in the corresponding period last year, a 66% increase. The increase in profit is due mainly to the increase in revenue from services and the transition to financing income, all as explained above, net of an increase in costs and the tax expense due to the higher pre-tax profit.

	Nine Months ended
	30.9.2023	30.9.2022	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	96,851,792	101,918,851	(5.0%)
Diluted earnings per share	98,514,071	103,447,451	(4.8%)
Basic earnings per share in NIS	0.645	0.369	75%
Diluted earnings per share in NIS	0.634	0.364	74%

The revenue in the first nine months of 2023 – below is the composition of the first nine months revenue, compared to the corresponding period last year:

	Nine Months ended
Revenue from services	30.9.2023	% of the Company's total revenues	30.9.2022	% of the Company's total revenues	% change
Trading and clearing commissions	114,399 40% 108,729 40% 5% 6% 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 higher trading volumes, the increase in T-bills issuances and the cancellation of the maximum commission on off-exchange transactions. An increase in the revenue from mutual funds increased revenue by 2%. In opposition, a decrease in revenue from shares, due mainly to the reduced trading volumes, resulted in a 4% decrease in revenue compared to the corresponding period last year.
Listing fees and levies	60,934 21% 64,972 24% (6%) The decrease in revenue from listing fees and levies is due mainly 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) in an amount of NIS 4.3 million performed in the first quarter last year, as well as to the decrease in revenue from prospectus examination, which were offset by the increase in revenue from annual levies.
Clearing House services	57,242 20% 53,037 19% 8% The increase in revenue from Clearing House services is due to an increase in Clearing House services to companies and members.
Data distribution and connectivity services	52,602 18% 43,782 15% 20% 11% of the increase in revenue from data distribution and connectivity services is due to the updating of the index-usage pricelist, and 5% of the increase in revenue is due to revenue from data terminals for business customers outside Israel. Another 4% increase is due to the increase in revenue from data distribution to business customers in Israel, API products and connectivity services.
Other revenue	3,230	1% The decrease in revenue is due mainly to the reduction in revenue from the sale of technological consulting services provided in the corresponding period last year in an amount of NIS 1.3 million, which was partly offset by a municipal tax refund of NIS 0.6 million in respect of previous years.	4,166	2%	(22%)
Total revenue from services	288,407	100%	274,686	100%	5%

Adjusted net profit and adjusted EBITDA data³

	Nine Months ended		Difference
	30.9.2023	30.9.2022	Amount	%
Adjusted EBITDA for the period:
Profit before financing income (expenses), net	73,777	64,341	9,436
Adjustments:
Share-based payment expenses	4,139	396	3,743
Depreciation and capital losses	39,605	38,381	1,224
Adjusted EBITDA for the period:	117,521	103,118	14,403	14%
% of total revenue from services for the period	40.7%	37.5%
Adjusted profit for the period:
Profit for the period	62,483	37,631	24,852
Adjustments:
Share-based payment expenses	4,139	396	3,743
Adjusted profit for the period:	66,622	38,027	28,595	75%
% of total revenue from services for the period	23.1%	13.8%

• − The adjusted EBITDA in the first nine months of 2023 totaled NIS 117.5 million, as compared to NIS 103.1 million in the corresponding period last year, a 14% increase. The increase is due to an increase in revenue.
• − The adjusted profit in the first nine months of 2023 totaled NIS 66.6 million, compared to NIS 38.0 million in the corresponding period last year, a 75% increase. The increase is due mainly to an increase in revenue and the transition to financing income as a result of the higher return on the Company's investments in held-for-trade financial assets compared to the corresponding period last year, as well as to the increase in the interest on deposits, which were partly offset by an increase in the tax expense.

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.

Summary of Information Relating to the Financial Position as of September 30, 2023 (NIS, in thousands):

	As of 30.9.2023	As of 31.12.2022
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short term financial assets	319,334	388,627	(69,293)	(18%)
Other current assets	34,044	23,591	10,453	44%
Property and equipment and intangible assets	455,824	455,662	162	0%
Other non-current assets	8,764	6,991	1,773	25%
Total assets (*)	817,966	874,871	(56,905)	(7%)
Current liabilities	112,878	96,092	16,786	17%
Non-current liabilities	89,523	92,331	(2,808)	(3%)
Total liabilities (*)	202,401	188,423	13,978	7%
Total equity	615,565	686,448	(70,883)	(10%)
Ratio of equity to total assets (*)	75%	78%
Adjusted ratio of equity to total assets () (*)	88%	91%
Surplus equity over regulatory requirements (in NIS millions)	537	613	(76)	(12%)
Surplus liquidity over regulatory requirements (in NIS millions) (**)	195	257	(62)	(24%)

(*) The total assets and liabilities in the balance sheet as of September 30, 2023 and December 31, 2022, include a balance of assets and liabilities in respect of open derivative positions amounting to NIS 1,713 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 30.9.2023 amounted to NIS 818.0 million, compared to NIS 874.9 million as of 31.12.2022, a 7% decrease. The decrease is due mainly to the decrease in cash and cash equivalents with respect to the buyback of Company shares during the period.
• The total liabilities as of 30.9.2023 amounted to NIS 202.4 million, compared to NIS 188.4 million as of 31.12.2022, a 7% increase. Most of the increase is due to annual levies that were collected in advance and to short-term liabilities for employee benefits.
• The total equity as of 30.9.2023 amounted to NIS 615.6 million, compared to NIS 686.4 million as of 31.12.2022, a 10% decrease. The decrease in the equity is due mainly to the buyback of Company shares in an amount of NIS 153.7 million, which was partly offset against a net of a profit of NIS 62.5 million accrued in the first nine months of 2023 and receipts with respect to the excess consideration received from shareholders within the framework of the TASE ownership restructuring, which sold shares in an amount of NIS 12.8 million during the period.
• (**) The adjusted equity also includes the total deferred income from listing fees.

Summary of Cash Flows for the Three Months Ended September 30, 2023 (NIS, in millions):

		Three months ended September 30,
	Item	2023	2022	Explanations of the Company
	Adjusted EBITDA	38.4	30.5	The increase in adjusted EBITDA is due mainly to an increase in revenue from services.
Net cash from operating	Changes in working capital	(5.4)	(6.6)
activities	Financing and tax	(1.6)	(1.7)
	Total	31.4	22.2	Considering the aforesaid, cash flows from operating activities grew by 41% between the quarters.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(11.8)	(10.4)	The change is due to the timing of implementation of the Group's investment work plans in the quarters.
	Acquisition of financial assets, net	110.1	0.4	In August 2023, the Company realized close to half of its investments in government bonds.
	Total	98.3	(10.0)
	Lease payments	(2.2)	(2.2)
	Short-term credit	0.5	(0.6)	Short-term credit as a result of the buyback of Company shares.
Net cash for financing activities	Acquisition of treasury shares	(21.3)	(20.5)	Buyback of Company shares, in accordance with approved buyback plans, as described in section 5.2 here in after.
	Payments carried directly to equity within the framework of implementing the TASE Restructuring Law, net	4.1	-	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law, as described in section 5.3 here in after.
	Total	(18.9)	(23.3)
Total increase in cash and cash equivalents		110.9	(11.1)

Presented below are Cash Flows for the nine months Ended September 30, 2023 (NIS, in millions):

		Nine months ended September 30,
	Item	2023	2022	Explanations of the Company
Net cash from operating activities	Adjusted EBITDA	117.5	103.1	The increase in adjusted EBITDA is due mainly to an increase in revenue from services.
	Changes in working capital	1.3	(5.5)	The changes in working capital differ between the periods due to the different timing of payments and receipts, mainly with respect to employee benefits and other receivables.
	Financing and tax	(8.0)	(7.8)
	Total	110.8	89.8	Considering the aforesaid, the cash flows from operating activities grew by close to 23% between the periods.
Net cash for investing activities	Investments in property and equipment, intangible assets and capitalized payroll costs	(34.0)	(39.8)	The change is due to the timing of implementation of the Group's investment work plan over the year.
	Disposal (acquisition) of financial assets, net	107.5	3.5	In August 2023, the Company realized close to half of its investments in government bonds.
	Total	73.5	(36.3)
	Lease payments	(6.6)	(6.6)
	Payments for the acquisition of treasury shares	(153.7)	(30.4)	Buyback of Company shares in accordance with the approved buyback plans, as described in section 5.2 here in after.
	Short-term credit	0.5	0.5	Short-term credit as a result of the buyback of Company shares, as above.
Net cash for	Dividend paid	-	(22.7)
financing activities	Receipts carried directly to equity within the framework of implementing the ownership restructuring, net.	12.8	8.2	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law, see section 5.3 here in after.
	Total	(147.0)	(51.0)
Total increase in cash and cash equivalents		37.3	2.5

4. Seasonality

The revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days.

Presented below are expected trading days:

	Q1	Q2	Q3	Q4	TOTAL
Year
2022	64	61	61	58	244
2023	64	58	61	66	249

5. Events During the Reporting Period and Thereafter

5.1 Disclosure on the effects of the Iron Swords War

In October 2023, the Government of Israel declared a state of war in the wake of the terror attack on the State of Israel that took place on October 7, 2023 and is still ongoing ("the War"). The break-out of the War caused price drops on the equity and bond markets and the revaluation of the dollar in relation to the shekel. To the publication date of the report, there has been no material change in the operations of the Company as a result of the War. Nevertheless, the War, the duration and scope of which are uncertain at present, is likely to have effects, both immediate and long-term, on the Israeli economy, including: economic slowdown accompanied by price hikes due to the revaluation of the dollar, disruptions in the manufacturing and supply chain, further rise in energy prices, and increase in the government deficit and in the Debt-GDP ratio.

Additionally, the S&P rating agency has reduced the State of Israel's rating outlook from stable to negative. The international rating agencies, Fitch and Moody's, have reaffirmed Israel's credit rating (A+ and A1, respectively), but have placed Israel under "rating review for downgrade", and have subsequently announced that Israeli banks have also been placed under such review.

Alongside the anticipated impact of the Iron Swords War on Israel's macroeconomic indicators and the growing uncertainty in the market, the War is also expected to affect the operations and profitability of corporations in Israel, inter alia, as a result of the greater occurrence of insolvency proceedings and debt arrangements, which will entail higher credit losses and provisions for credit losses by financiers. Those effects, combined with the macroeconomic effects, could also affect, both indirectly and directly, the operations and profitability of TASE, this, inter alia, as a result of: changes in the prices of shares and government and corporate bonds, changes in the volumes of activity in the various channels, change in the activity of the foreign investors and the institutional investors, and change in the volumes of capital and debt raising on TASE. At this stage, mainly due to the uncertainty surrounding the intensity and duration of the War, the Company is unable to assess the impact of those changes on its operations and profitability.

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. In May 2022, 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. Following its expiration, in November 2022, the Board of Directors of the Company approved an additional plan for the buyback of Company shares in an amount of up to NIS 36 million over a six-month period. The second plan was completed on 3.5.2023, with total purchases in an amount of NIS 36 million.

5. Events During the Reporting Period and Thereafter (CONT.)

On 23.5.2023, 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 shares in an amount of up to NIS 33.9 million and for a period

of six months (hereafter: "the Third Plan"), in "safe harbor" format. On 10.10.2023, the third plan was completed in full.

Within the framework of the aforesaid buyback plans, as above, until 30.9.2023 the Company purchased 5,542 thousand shares for a total cost of NIS 98 million, at an average price of NIS 17.72 per share.

In the period from 1.10.2023 to the completion of the third plan, the Company purchased close to 90 thousand shares in consideration for approximately NIS 2 million, thereby concluding the plan for the buyback of Company shares in an amount of NIS 100 million.

In addition, on 23.5.2023, the Board of Directors of the Company approved a special buyback plan of up to NIS 90 million from the date of its approval until 29.6.2023, which is not subject to the terms of the "safe harbor" protection. On 1.6.2023, after being contacted by a foreign institutional investor that holds shares of the Company but is not an interested party therein (hereafter: "the Shareholder"), the Company purchased the Shareholder's entire holdings in the Company, of close to 4,568 thousand shares, at a price per share of NIS 18.85 and for a total consideration of NIS 86.1 million.

It should be noted that in the reported period, from 1.1.2023 to 30.9.2023, the Company purchased 8,218 thousand of its ordinary shares in consideration for NIS 153.7 million, and overall, since the initiation of the buybacks until 10.10.2023 the Company purchased 10,199 thousand shares for a total cost of NIS 186 million and at an average price per share of NIS 18.25, representing 9.9% of the issued and paid-up share capital of the Company.

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

Concerning the realization 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 nine months of 2023 the Holders of Arrangement Shares realized 989,000 shares. In respect of this realization, an amount of NIS 12.8 million was transferred to TASE (based on a price of NIS 5.08 per share).

5.4 Equity compensation Plan for Officers in the Company

On 26.2.2023, the Board of Directors of the Company, after obtaining the approval of the Compensation Committee, approved an equity compensation plan for the allotment of up to 4,100,000 warrants that are exercisable, each, into one ordinary share of the Company to all the officers in the Company (hereafter: "the Plan" and "the Pool", respectively). On 2.4.2023, out of said Pool 2,980,00 warrants that are exercisable, each, into one ordinary share of the Company were allotted at an exercise price of NIS 24.386 per warrant to 9 officers reporting to the CEO. The cost of the benefit embodied in the warrants granted as above, based on their fair value on the grant date, totaled NIS 10.1 million.

5.5 Retention Plan for the Company's CEO

On 4.5.2023, the general meeting approved the retention plan for the CEO of the Company, including the extension of a new retention loan in an amount of NIS 3.5 million and the grant of 544,435 warrants exercisable, each, into one ordinary share of the Company at an exercise price of NIS 40 per warrant. On 1.6.2023, the aforesaid warrants were allotted to the CEO of TASE. The cost of the benefit embodied in the warrants granted as above, based on their fair value on the grant date, totaled NIS 1.5 million.

5. Events During the Reporting Period and Thereafter (CONT.)

5.6 Approval of the appointment of a Chairman for the Company's Board of Directors and of the terms of his employment

On 12.7.2023, further to the approval by the Company's general meeting on 29.6.2023, Prof. Eugene Kandel took office as Chairman of the Board of Directors of TASE. It should be noted that the general meeting of the Company, after obtaining the approval of the Company's Board of Directors and Audit Committee in its capacity as Compensation Committee, approved the nomination and the terms of employment of Prof. Eugene Kandel as Chairman of the Board of Directors, at a 50% appointment percentage. According to the terms of his employment, Prof. Kandel shall be entitled to a monthly salary (gross) of NIS 64.5 thousand, to an annual bonus in an amount of up to 3 times the monthly salary (gross) and to the grant of 319,800 warrants, out of the Pool, which are exercisable, each, into one ordinary share of the Company, at an exercise price of NIS 24.386 per warrant, as well as to related benefits, as customary in the Company. On 13.7.2023, the aforesaid warrants were allotted to the Chairman of the Board of Directors out of the Pool. The cost of the benefit embodied in the warrants granted as above, based on their fair value on the grant date, totaled NIS 1.0 million.

5.7 Equity compensation to directors

On 15.8.2023, further to the framework resolution of the Company's general meeting from 12.1.2022, the Board of Directors of the Company (after obtaining the approval of the Audit Committee in its capacity as Compensation Committee on the same day), approved the grant, to 6 directors of the Company, of 376,746 warrants out of the pool, which are exercisable, each, into one ordinary share of the Company at an exercise price of NIS 24.386 per warrant. The cost of the benefit embodied in the warrants granted as above, based on their fair value on the grant date, totaled NIS 1.5 million.

5.8 Reduction of the Fee to the Israel Securities Authority

On 10.7.2023, the Knesset's Finance Committee approved, in an ad hoc provision, the reduction of the Israel Securities Authority's fees, such that the reduction will be increased to 30% in 2023 and 2024, and in 2025 will be reinstated to 15%. The significance of the reduction of the aforesaid fees is an annual decrease of NIS 1.7 million in expenses. The aforesaid reduction of the fee was recognized in the third quarter of 2023, retrospectively from the beginning of the year.

5.9 Collective Agreement Relations in the Company

Concerning the expiration of the collective agreements at TASE, over the past period, the management of the Company, TASE's Employees Representation and representatives of the New General Federation of Labor have held discussions for a new collective agreement and as of the reporting date have even reached understandings and are currently formulating a new collective agreement. To remove any doubt, it is hereby clarified that the declaration of a labor dispute at TASE has not yet been withdrawn.

5.10 Donations

In the reported period, 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 donated in the reported period an amount of NIS 300 thousand towards the establishment of the fund.

Additionally, since the break out of the Iron Swords War and thereafter, until shortly before the publication date of this report, the Company has made donations by financing volunteering activities and assistance initiatives of its employees for the benefit of victims impacted by the war and by purchasing equipment for those individuals in an amount of approximately NIS 410 thousand.

5.10 TASE and TASE CH members

To the publication date of the report, the Board of Directors of TASE approved the application of two Israeli companies to be accepted as a TASE member, subject to their compliance with various prerequisites for such operations, as set out in the TASE Rules (which to the date of the report have not yet been fulfilled).

5. Events During the Reporting Period and Thereafter (CONT.)

The Board of Directors of the TASE Clearing House approved also the application of an international clearing house to be accepted as a custodial member of the TASE Clearing House, and the request of a member (of the aforesaid) to be accepted as a member of the TASE Clearing House, all subject to their compliance with various prerequisites for such operations, as set out in TASE Rules (which to the date of the report have not yet been fulfilled).

5.11 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, 18 mutual hedge funds that the aggregate value of their assets amounts to a total of approximately NIS 133 million are registered in TASE-CH.

5.12 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 regulatory 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.

For the purpose of providing the aforesaid services, TASE has recently engaged with Fireblocks, a company that develops an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets.

The PoC included the digitalization of a new series of bonds and its (mockup) issuance to the system participants. A live test conducted in May 2023 at The Tel Aviv Stock Exchange included twelve leading international and local banks (primary dealers). As part of the test, the Ministry of Finance issued for the first time (in a mockup issuance) a digital government bond (security token) over a Blockchain platform developed by TASE with the assistance of select technology vendors that are leaders in this field. In light of the success of the PoC, TASE is contemplating further moves in this area.

5.13 The Indices Liquidity Reform

In May 2022, the Board of Directors approved a new indices' methodology that was designed, inter alia, to enhance the liquidity of the indices' composition and reduce their tracking costs. The reform involves the incorporation of liquidity ratios for the calculation of the weight of securities in the index and the changing of the indices' rebalancing frequency from monthly to quarterly. In May 2023, the Israel Securities Authority approved the reform and TASE is pursuing the implementation of the resolution in 2.11.2023. Further to the aforesaid, the semiannual update of the indices' composition scheduled for August 2023 was canceled and replaced by a monthly updating of ratios.

5.14 Launch of an Additional Weekly Series of Options on the TA-35 Index

In July 2023, TASE launched of a new weekly series of options on the TA-35 Index, this in addition to the current weeklies that expire on Thursdays. The weekly options on the TA-35 Index were launched at TASE in 2013, and their use is constantly on the rise. Trading in the series that is closest to expiration concentrates more than 60% of the overall trading volume of options on the TA-35 Index.

5. Events During the Reporting Period and Thereafter (CONT.)

Consequently, these options hold most of the liquidity among the overall series in circulation. Short-term options are trending globally, under the heading Zero Days to Expiration (0DTE). The launch of the additional weekly series is part of this trend and is designed to diversify the derivatives market and align it with international standards.

5.15 Reporting of OTC transactions

In July 2023, TASE launched a new system, the Trade Repository, for the real-time reporting of OTC transactions. The system will allow investors instant access to information on transactions effected off the order book. This step is in alignment with international standards, such as Mifid2. As part of the launch of the new system, TASE charges dedicated fees for the publication of the transactions on the Trade Repository. The real-time, transparent publication of the transactions helps optimize trading by local and foreign investors, on par with the leading global capital markets.

5.16 Market Review - The Judicial Reform

The trading on TASE has been adversely affected by the proposed judicial reform. Accordingly, trading in the second quarter of 2023 was affected by the uncertainty and tensions surrounding the attempt to reach a broad consensus.

On July 24, 2023, the Knesset passed the second and the third reading of the Amendment to the Basic Law - The Judiciary ("Cancellation of the Reasonableness Standard Law"), one of several legislation initiatives that are being advanced by the Government for the modification of the Israeli judicial system. In September 2023, the High Court of Justice started hearing petitions filed by various parties in this regard.

The dispute surrounding the proposed changes to the judicial system - should it persist and more so should it escalate, could result in the continued devaluation of the Israeli shekel, adversely affect export, generate inflationary pressures, fiscal contraction (mainly in the form of interest-rate increases by the Bank of Israel), create a crisis in the mortgage sector and reduce local investments (both by deterring foreign investors, with emphasis on the high-tech sector, and as a result of local investors diverting their investments outside Israel) and the demand for private consumption;

In addition, it could result in the reduction of Israel's credit rating or of the rating outlook by the international rating firms and the increase of Israel's risk premium (at minimum, in the short term).

5.17 Consideration of a tender offer buyback recommendation

Further to the stated see section 5.2 above, on November 21, 2023 the Board of Directors of TASE instructed the management of the Company to present to the Board of Directors for approval a tender offer buyback, for up to NIS 50 million and the publication of specifications in accordance with the provisions of the Securities Regulations (Tender Offer), 2000. It is hereby clarified that, to date, a tender offer buyback has not yet been approved and will be presented to the Company's Board of Directors for approval in the coming weeks, and that the approval of a tender offer buyback will be subject to compliance with the distribution criteria, as required by the Companies Law and the liquidity directives that apply to the Company. Upon the approval of a tender offer buyback, the Company will publish specifications, as required by law. It is hereby clarified that the above information concerning the approval of a tender offer buyback constitutes forward-looking information that may be realized in a manner that materially differs from the described above or may not be realized at all, among others, as a result of a change in the market conditions and/or in the plans of the Company.

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

19

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

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	September 30,		December 31,
	2023	2022	2022
Assets
Current assets
Cash and cash equivalents	230,339	182,884	192,416
Financial assets at fair value through profit or loss	88,995	190,190	196,211
Trade receivables	16,461	15,023	16,021
Other receivables	17,583	14,876	7,570
	353,378	402,973	412,218
Assets derived from clearing operations in respect of open derivative positions	1,713,318	993,198	937,259
Total current assets	2,066,696	1,396,171	1,349,477
Non-current assets
Cash restricted as to use	-	720	720
Deferred tax assets	2,963	9,343	5,586
Property and equipment, net	306,139	320,822	315,598
Intangible assets, net	149,685	137,300	140,064
Other long-term receivables	5,801	1,201	685
Total non-current assets	464,588	469,386	462,653
Total assets	2,531,284	1,865,557	1,812,130

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

	September 30,	December 31,
	2023	2022	2022
Liabilities and Equity
Current liabilities
Current maturities of lease liabilities	5,305	8,537	8,473
Trade payables	10,152	10,809	13,864
Other payables	6,053	4,342	3,036
Income received in advance with respect to annual levies	10,359	9,814	-
Deferred income from listing fees, levies and others	28,211	28,189	28,412
Current tax liabilities	7,225	4,140	4,743
Short-term liabilities for employee benefits	45,573	31,557	37,564
	112,878	97,388	96,092
Liabilities derived from clearing operations in respect of open derivative positions	1,713,318	993,198	937,259
Total current liabilities	1,826,196	1,090,586	1,033,351
Non-current liabilities
Lease liabilities	9,012	8,668	6,572
Deferred income from listing fees and levies	76,194	79,416	78,459
Non-current liabilities for employee benefits	4,317	17,733	6,580
Other liabilities	-	720	720
Total non-current liabilities	89,523	106,537	92,331
Equity
Remeasurement of net defined benefit liability	8,697	(407)	5,207
Capital reserve in respect to share-based payment transactions	37,926	33,653	33,787
Other capital reserves	66,975	54,222	54,222
Retained earnings	501,967	580,966	593,232
Total equity	615,565	668,434	686,448
Total liabilities and equity	2,531,284	1,865,557	1,812,130

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(NIS, in thousands)

	Nine months ended September 30,		Three months ended September 30,		Year ended December 31,
	2023	2022	2023	2022	2022
Revenue from services:
Trading and clearing commissions	114,399	108,729	36,948	33,412	142,490
Listing fees and levies	60,934	64,972	20,489	19,927	84,489
Clearing House services	57,242	53,037	19,155	17,340	70,908
Distribution of data and connectivity services	52,602	43,782	18,111	14,407	58,060
Other revenue	3,230	4,166	785	938	5,064
Total revenue from services	288,407	274,686	95,488	86,024	361,011
Cost of revenue:
Employee benefits expenses	113,309	112,774	38,071	34,288	147,905
Expenses in respect to share based payments	4,139	396	1,883	133	530
Computer and communications expenses	28,110	21,523	10,183	7,331	29,953
Property taxes and building maintenance expenses	10,297	10,312	3,836	3,825	13,798
Other operating expenses	1,893	1,632	760	778	2,548
General and administrative expenses	6,768	6,676	2,166	2,573	9,100
Marketing expenses	4,111	11,626	820	4,303	13,171
Fee to the Israel Securities Authority	6,099	7,006	1,242	2,393	9,341
Depreciation and amortization	38,954	38,274	13,046	13,090	51,335
Other expenses	950	126	56	80	132
Total costs	214,630	210,345	72,063	68,794	277,813
Profit before financing income (expenses), net	73,777	64,341	23,425	17,230	83,198
Financing income	8,472	(12,440)	2,128	(4,033)	(12,802)
Financing expenses	(340)	311	(140)	95	423
Total financing income (expenses), net	8,132	(12,751)	1,988	(4,128)	(13,225)
Profit before taxes on income	81,909	51,590	25,413	13,102	69,973
Taxes on income	19,426	13,959	7,186	4,395	19,137
Profit for the year	62,483	37,631	18,227	8,707	50,836
Basic earnings per share (NIS)	0.645	0.369	0.196	0.086	0.500
Diluted earnings per share (NIS)	0.634	0.364	0.192	0.085	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	-	-	-	62,483	62,483
Other comprehensive loss for the period	-	3,490	-	-	3,490
Total comprehensive income for the period	-	3,490	-	62,483	65,973
Share-based payment	4,139	-	-	-	4,139
Acquisition of Treasury shares	-	-	-	(153,748)	(153,748)
Receipts from shareholders within the framework of implementing the ownership
restructuring, net	-	-	12,753	-	12,753
Balance at September 30, 2023	37,926	8,697	66,975	501,967	615,565

	Share based payment reserve	Remeasurement of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at July 1, 2023	36,043	7,945	66,057	504,596	614,641
Profit for the period	-	-	-	18,227	18,227
Other comprehensive loss for the period	-	752	-	-	752
Total comprehensive income for the period	-	752	-	18,227	18,979
Share-based payment	1,883	-	-	-	1,883
Acquisition of Treasury shares	-	-	-	(20,856)	(20,856)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	918	-	918
Balance at September 30, 2023	37,926	8,697	66,975	501,967	615,565

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Nine months ended September 30,		Three months ended September 30,		Year ended December 31,
	2023	2022	2023	2022	2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	62,483	37,631	18,227	8,707	50,836
Expenses in respect of share-based payments	4,139	396	1,883	133	530
Tax expenses recognized in profit or loss	19,426	13,959	7,186	4,395	19,137
Net financing expenses (income) recognized in profit or loss	(8,132)	12,751	(1,988)	4,128	13,225
Depreciation and amortization	38,954	38,274	13,046	13,090	51,335
Loss from disposal of property and equipment and intangible assets	651	107	58	61	131
	117,521	103,118	38,412	30,514	135,194
Changes in asset and liability items:
Decrease (increase) in trade receivables and other receivables	(15,569)	(7,356)	22	392	(532)
Increase in receivables in respect to open derivative positions	(776,059)	(327,927)	(167,341)	(439,274)	(271,988)
Increase (decrease) in trade payables and other payables	(1,351)	(2,356)	124	2,081	(2,320)
Increase (decrease) in income received in advance with respect to annual levies	10,359	9,814	(9,597)	(9,485)	-
Increase (decrease) in deferred income from listing fees, levies and others	(2,466)	(3,422)	(385)	590	(4,156)
Increase in payables in respect to open derivative positions	776,059	327,927	167,341	439,274	271,988
Increase (decrease) in liabilities for employee benefits	10,278	(2,131)	4,435	(181)	14
	118,772	97,667	33,011	23,911	128,200
Interest received	7,685	3,538	2,813	2,053	5,297
Interest paid	(384)	(308)	(66)	(96)	(417)
Tax payments - operating activities	(15,347)	(11,006)	(4,332)	(3,656)	(13,498)
	(8,046)	(7,776)	(1,585)	(1,699)	(8,618)
Net cash provided by operating activities	110,726	89,891	31,426	22,212	119,582
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(3,776)	(13,630)	(2,032)	(764)	(14,841)
Acquisitions of intangible assets	(13,350)	(11,003)	(4,280)	(4,615)	(14,086)
Payments in respect to costs capitalized to property and equipment and to intangible assets	(16,850)	(15,231)	(5,439)	(5,057)	(19,331)
Disposal (acquisition) of financial assets at fair value through profit or loss, net	107,475	3,537	110,098	374	(4,632)
Net cash from (used in) investing activities	73,499	(36,327)	98,347	(10,062)	(52,890)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(6,623)	(6,665)	(2,225)	(2,201)	(8,815)
short term credit	527	506	527	(649)	-
Dividend paid	-	(22,735)	-	-	(22,735)
Acquisition of Treasury shares	(153,748)	(30,379)	(21,340)	(20,454)	(31,318)
Receipts (payments) carried directly to equity within the framework of implementing the TASE Restructuring Law, net	12,753	8,220	4,133	-	8,220
Net cash provided by (used in) financing activities	(147,091)	(51,053)	(18,905)	(23,304)	(54,648)
Net increase in cash and cash equivalents	37,134	2,511	110,868	(11,154)	12,044
Cash and cash equivalents, beginning of the period	192,416	179,768	118,958	193,868	179,768
Effect of changes in exchange rates on cash balances held in foreign currency	789	605	513	170	604
Cash and cash equivalents, end of the period	230,339	182,884	230,339	182,884	192,416

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

	Jan-Mar 2022	Apr Jun 2022	Jul-Sep 2022	Oct-Dec 2022	Jan-Mar 2023	Apr-Jun 2023	Jul-Sep 2023	2022
Item	(Unaudited)						(Audited)
Number of trading days	64	61	61	58	64	58	61	244
Revenue from services:
Trading and clearing commissions	39,445	35,872	33,412	33,761	41,923	35,528	36,948	142,490
Listing fees and levies	24,789	20,256	19,927	19,517	20,302	20,143	20,489	84,489
Clearing House services	17,352	18,345	17,340	17,871	19,113	18,974	19,155	70,908
Distribution of data and connectivity services	14,299	15,076	14,407	14,278	17,124	17,367	18,111	58,060
Other revenue	1,791	1,437	938	898	1,554	891	785	5,064
Total revenue from services	97,676	90,986	86,024	86,325	100,016	92,903	95,488	361,011
Cost of revenue
Expenses in respect of employee benefits, net	40,153	38,333	34,288	35,131	38,171	37,067	38,071	147,905
Share-based payment expenses	131	132	133	134	611	1,645	1,883	530
Computer and communication expenses	6,830	7,362	7,331	8,430	9,013	8,914	10,183	29,953
Property taxes and building maintenance expenses	3,140	3,347	3,825	3,486	3,227	3,234	3,836	13,798
Other operating expenses	440	414	778	916	534	599	760	2,548
General and administrative expenses	2,218	1,885	2,573	2,424	2,245	2,357	2,166	9,100
Marketing expenses	5,740	1,583	4,303	1,545	863	2,428	820	13,171
Fee to the Israel Securities Authority	2,306	2,307	2,393	2,335	2,429	2,428	1,242	9,341
Depreciation and amortization expenses	12,448	12,736	13,090	13,061	12,868	13,040	13,046	51,335
Other expenses	-	46	80	6	15	879	56	132
Total cost of revenue	73,406	68,145	68,794	67,468	69,976	72,591	72,063	277,813
Profit before financing income (expenses), net	24,270	22,841	17,230	18,857	30,040	20,312	23,425	83,198
Financing income	(5,105)	(3,302)	(4,033)	(362)	2,648	3,696	2,128	(12,802)
Financing expenses	(102)	(114)	(95)	(112)	(120)	(80)	(140)	423
Total financing income (expenses), net	(5,207)	(3,416)	(4,128)	(474)	2,528	3,616	1,988	(13,225)
Profit before taxes on income	19,063	19,425	13,102	18,383	32,568	23,928	25,413	69,973
Taxes on income	4,344	5,220	4,395	5,178	7,087	5,153	7,186	19,137
Net profit	14,719	14,205	8,707	13,205	25,481	18,775	18,227	50,836

Transactional Services

	Nine months ended		Three months ended	Year ended
		September 30,		September 30,
	2023	2022	2023	2022	2022
Number of trading days	183	186	61	61	244
SHARES
Market cap of Shares (ex. ETFs)	964	1,007	964	1,007	949
Market cap of ETFs on share indices	92	71	92	71	71
Total market cap (in NIS billions)	1,056	1,078	1,056	1,078	1,020
Shares ADV (ex. ETFs)	1,628	1,949	1,453	1,804	1,874
ETFs on share indices ADV	396	441	413	368	421
Total average daily volume (in NIS millions)	2,024	2,390	1,866	2,172	2,295
Average commissions	0.01123%	0.01034%	0.01164%	0.01055%	0.01044%
Revenue (in NIS thousands)	41,597	45,973	13,244	13,991	58,469
BONDS
Market cap of government bonds - unlinked	284	299	284	299	287
Market cap of government bonds - linked	297	299	297	299	300
Market cap of corporate bonds	427	419	427	419	409
Market cap of bonds (ex. ETFs)	1,009	1,017	1,009	1,017	996
Market cap of ETFs on bond indices	29	28	29	28	27
Total market cap (in NIS billions)	1,037	1,045	1,037	1,045	1,023
Government bonds - unlinked ADV (in NIS millions)	1,721	1,447	1,615	1,304	1,476
Government bonds - linked ADV (in NIS millions)	968	995	811	969	955
Corporate bonds ADV excluding ETFs (in NIS millions)	916	920	939	799	916
ETFs on bond indices ADV	121	136	139	112	130
Total Average daily volume (in NIS millions)	3,726	3,498	3,504	3,184	3,477
Government bonds unlinked - average commissions	0.00197%	0.00193%	0.00199%	0.00199%	0.00195%
Government bonds linked - average commissions	0.00298%	0.00289%	0.00306%	0.00290%	0.00290%
Corporate bonds - average commissions	0.00703%	0.00707%	0.00702%	0.00735%	0.00707%
Government bonds - unlinked (in NIS thousands)	6,207	5,206	1,960	1,582	7,010
Government bonds - linked (in NIS thousands)	5,288	5,339	1,513	1,716	6,760
Corporate bonds (in NIS thousands)	13,334	13,886	4,614	4,086	18,036
Other (MTS) (in NIS thousands)	194	171	56	36	208
Revenue (in NIS thousands)	25,023	24,602	8,143	7,420	32,014
TREASURY BILLS
Market cap (in NIS billions)	316	144	316	144	209
Treasury bills ADV (in NIS millions) Average commissions	1,335 0.00411%	655 0.00260%	1,323 0.00327%	702 0.00284%	783 0.00334%
Revenue (in NIS thousands)	10,047	3,170	2,638	1,218	6,375

	Nine months ended		Three months ended	Year ended
	September 30,	September 30,			December 31,
	2023	2022	2023	2022	2022
MUTUAL FUNDS
Market cap (in NIS billions)	313	267	313	267	272
Average daily value of creation/ redemptions (in NIS millions)	1,406	910	1,406	915	987
Average commissions	0.00825%	0.01107%	0.00846%	0.01065%	0.01027%
Revenue (in NIS thousands)	21,243	18,740	7,259	5,945	24,732
DERIVATIVES
Derivatives on indices	107.7	116.9	106.2	106.4	114.6
Derivatives on foreign currency	37.7	40.7	34.2	39.6	40.3
Derivatives on individual shares	13.6	4.5	18.4	2.9	4.3
Total derivative contracts (in '000 units)	159.0	162.1	158.8	148.9	159.2
Options on indices - Average commissions	0.580	0.580	0.580	0.580	0.580
Derivatives on FX -Average commissions	0.360	0.360	0.360	0.360	0.360
Derivatives on single shares- Average commissions	1.000	1.000	1.000	1.000	1.000
Revenue (in NIS thousands)	16,489	16,244	5,664	4,838	20,900
Total revenue from trading and clearing commissions	114,399	108,729	36,948	33,412	142,490

Non-Transactional Services

	Nine months ended		Three months ended		Year ended
		September 30, September 30,			December 31,
	2023	2022	2023	2022	2022
CLEARING HOUSE SERVICES
Average Monthly Market value of assets (in NIS billions)	2,884	3,022	2,946	2,946	2,983
Avg. commissions from Custodian Fees	0.00110 %	0.00109 %	0.00110 %	0.00109 %	0.00109%
Revenue from: (in NIS thousands)
Custodian Fees	23,726	24,619	8,093	8,015	32,460
Clearing House services for members	18,457	16,187	6,459	5,435	22,549
Clearing House services for company events	10,840	8,363	3,203	2,640	10,799
Other	4,219	3,868	1,400	1,250	5,100
Total revenue from Clearing House services	57,242	53,037	19,155	17,340	70,908
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	626	614	618	612	612
Mutual funds and ETFs	2,319	2,305	2,303	2,339	2,314
Avg. revenue from levies (in NIS thousands)
Companies	16.4	17.1	5.5	5.7	22.8
Mutual funds and ETFs	6.0	5.7	2.0	1.9	7.6
Revenue from Annual Levies from: (in NIS thousands)
Companies	10,256	10,487	3,416	3,484	13,966
Mutual funds and ETFs	14,054	13,237	4,662	4,467	17,778
Nominee Company and others	5,531	4,760	1,873	1,610	6,381
Total revenue from Annual levies	29,841	28,484	9,951	9,561	38,125
The value of issuance used to calculate Listing fees (in NIS millions)
Companies – Shares, Bonds and ETFs	97,397	114,073	37,927	38,447	143,732
Government bonds (including swap transactions)	64,370	32,163	23,991	6,856	41,501
Treasury-bills	303,858	124,782	94,969	44,202	231,158
Number of issuances
Number of public offerings of shares on TASE (including on TASE-UP)	52	62	17	21	78
Number of new issuers of shares	1	13	-	4	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	2,342	-	926	2,342
Amount raised in bond offerings by new issuers (in NIS millions)	863	736	340	366	967
Number of corporate bond offerings to the public	107	140	40	55	165
Number of corporate bond offerings to the public by new companies	7	6	4	3	8
Average revenue from Examination and Listing Fees

	Nine months ended		Three months ended	Year ended December 31,
	September 30,		September 30,
	2023	2022	2023	2022	2022
Companies – shares, bonds and ETFs	0.0166%	0.0177%	0.0155%	0.0177%	0.0175%
Revenue from Examination and Listing Fees (in NIS thousands)
Examination fees	5,466	6,584	1,740	2,135	8,245
Receipts from listing Fees
Listing fees - shares, bonds & ETF's	16,163	20,242	5,890	6,813	25,183
Listing fees - government bonds	4,700	4,464	1,567	1,488	5,952
Listing of T-bills	2,127	873	665	496	1,618
Levies and examination fees from members	171	850	114	54	850
Other	320	130	198	48	236
Total	23,481	26,559	8,434	8,899	33,839
Accounting adjustments to revenue recognition	2,146	3,345	364	(668)	4,280
Total revenue from listing Fees	25,627	29,904	8,798	8,231	38,119
Total revenue from examination and listing fees (in NIS thousands)	31,093	36,488	10,538	10,366	46,364
Total revenue from listing fees and levies	60,934	64,972	20,489	19,927	84,489
DATA DISTRIBUTION AND CONNECTIVITY SERVICES
Average number of data terminals
Domestic business clients	7,312	7,485	7,311	7,279	7,419
Overseas business clients	5,871	5,425	5,924	5,580	5,447
Non-display data	252	290	219	254	288
Revenue from distribution and connectivity services (in NIS thousands)
Domestic business clients	13,285	12,612	4,455	4,118	16,693
Overseas business clients	9,119	6,807	3,496	2,422	9,251
Private clients	6,324	6,456	2,204	1,995	8,254
Derivative date and non-display data	3,338	3,638	1,065	1,253	4,775
Data files and other data	3,453	3,054	1,158	1,053	4,147
Authorization for indices usage	7,446	2,439	2,473	769	3,202
Connectivity services	9,638	8,777	3,261	2,798	11,738
Total revenue from Data distribution and Connectivity services	52,603	43,783	18,112	14,408	58,060

	Nine months ended September 30,		% Change	Three months ended September 30,		% Change	Year ended December
	2023	2022		2023	2022		31, 2022
Velocity of trading
Shares	42.6%	44.0%	(3%)	38.8%	40.3%	(4%)	43.1%
Corporate bonds (2)	58.9%	61.3%	(4%)	57.8%	53.1%	9%	60.9%
Government bonds shekel (3) –	127.2%	90.8%	40%	119.2%	84.7%	41%	95.2%
Government bonds linked (4) –	69.3%	68.1%	2%	58.3%	69.4%	(16%)	66.6%
Treasury bills	107.9%	106.4%	1%	93.6%	111.9%	(16%)	115.4%

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

(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	Total receipts for the Nine months ended	Income recognition in Nine months ended	Deferred income from listing fees as of	Income recognition in Twelve months ended			Deferred income from listing fees as of
	31.12.22	30.9.23	30.9.23	30.9.23	30.9.24	30.9.25	30.9.26	30.9.26
Listing of
Shares	28.9	2.4	4.7	26.6	5.7	5.0	4.2	11.7
Corporate bonds	40.0	11.4	10.6	40.8	12.5	9.2	6.5	12.6
ETF	24.6	2.4	3.8	23.2	4.8	4.4	3.5	10.5
Government bonds	11.4	4.7	3.9	12.2	3.6	3.3	2.9	2.4
T-bills	1.0	2.1	1.8	1.3	1.3	0.0	0.0	0.0
Total	105.9	23.0	24.8	104.1	27.9	21.9	17.1	37.2