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

Aug 8, 2023

August 8, 2023

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

August 8, 2023 (Tel Aviv) -Tel Aviv Stock Exchange Ltd (TASE:TASE) today announced its financial results for the second quarter ended June 30, 2023. 1

1. General

TASE continue to achieve strong financial results. The revenue totaled to NIS 93 million, despite a 5% reduction in the number of trading days, and increased by 2% compared to the corresponding quarter of 2022. Adjusted net profit increased significantly by 42% in the second quarter of 2023 to NIS 20.4 million, compared to NIS 14.3 million in the corresponding quarter last year.

As of 1.1.2023 and up to 30.6.2023, TASE purchased appx. 7,120 thousand of its ordinary shares in consideration for NIS ~131.9 million.

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

Second Quarter Results

TASE revenues amounted to NIS 92.9 million in the second quarter of 2023, an increase of 2% compared to the corresponding quarter last year. The increase in revenue is due mainly to revenues deriving from data distribution and connectivity services, as a result of the increased volume of activity and the impact of the updated index-usage fees.

• Adjusted EBITDA amounted in the second quarter of 2023 to NIS 35.6 million, similar to the corresponding quarter last year, NIS 35.7 million.
• Adjusted net profit amounted to NIS 20.4 million in the second quarter of 2023, compared to NIS 14.3 million adjusted net profit in the corresponding quarter last year, an increase of 42%. The increase is due mainly to the transition to financing income as a result of positive returns on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds and to the increase in the interest on deposits.

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

• The average daily trading volume of shares in the second quarter of 2023 amounted to approximately NIS 2.1 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 second quarter of 2023 amounted to approximately NIS 0.9 billion, a 28% decrease compared to the volumes in the corresponding quarter in the previous year. The average daily trading volume of government bonds in the second quarter of 2023 amounted to approximately NIS 2.6 billion, a 14% 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 June 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

• The average daily trading volume of T-bills in the second quarter of 2023 amounted to NIS 1.3 billion compared with NIS 0.8 billion in the corresponding quarter in the previous year, an increase of 62%.
• The average daily redemptions or creations volume of mutual funds in in the second quarter of 2023 amounted to NIS 1.3 billion compared with NIS 0.9 billion in the corresponding quarter in the previous year, an increase of 49%.
• The daily average trading volume of derivatives in the second quarter of 2023 amounted to 153.2 thousand units a day, compared with 160.6 thousand units in the corresponding quarter in the previous year, a decrease of 5%.
• In the second quarter of 2023, NIS 1.4 billion was raised on TASE in shares, a decrease of 79% over the corresponding quarter in the previous year.
• In the second quarter of 2023, NIS 25.1 billion was raised on TASE in corporate bonds, an increase of 24% over the corresponding quarter in the previous year and NIS 23.9 billion was raised on TASE in government bonds, an increase of 142% over the corresponding quarter in the previous year.
• In the second quarter of 2023, NIS 79.2 billion was raised on TASE in T-bills, an increase of 100% over the corresponding quarter in the previous year.
• The leading indices TA-35, TA-90, TA-125 and TA-SME60 decreased by 7.5%, 9.6%, 8.4% and decreased by 18.7% respectively, in the second quarter of 2023.
• The marketing expenses of the company totaled NIS 2.4 million in the second quarter of 2023, an increase of 53% over the corresponding quarter in the previous year. In the second quarter of 2023, the Company launched new advertising campaign on, at a total cost of NIS 2.3 million.
• Net financing income in the second quarter of 2023 totaled NIS 3.6 million, as compared to net financing expenses of NIS 3.4 million in the corresponding quarter last year. The transition to financing income this quarter resulted from a positive return of approximately 0.9% on the Company's investments in marketable securities' portfolios comprising of Israeli Government bonds, as compared to a negative return of approximately 1.9% 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 1.6 million.

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

Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Statement of Profit or Loss

	Quarter ended		Difference
	30.6.2023	30.6.2022	Amount	%
Revenue from services	92,903	90,986	1,917	2%
Expenses	72,591	68,145	4,446	7%
Profit before financing income, net	20,312	22,841	(2,529)	(11%)
Financing income (expenses)	3,616	(3,416)	7,032	-
Profit before Taxes on income	23,928	19,425	4,503	23%
Taxes on income	5,153	5,220	(67)	(1%)
Net profit	18,775	14,205	4,570	32%
% of total revenue from services for the quarter	20.2%	15.6%

• Revenue in the second quarter of 2023 totaled NIS 92.9 million, compared to NIS 91.0 million in the corresponding quarter last year, an increase of 2%. The increase in revenue is due mainly to revenue from data distribution and connectivity services, as a result of the increased volume of activity and the impact of the updated index-usage fees
• Costs in the second quarter of 2023 totaled NIS 72.6 million, compared to NIS 68.1 million in the corresponding quarter last year, a 7% increase. The increase in costs is due mainly to an increase in computer and communication expenses, expenses with respect to share-based payment following the allotment of warrants to management members and to marketing expenses.
• Net financing income in the second quarter of 2023 totaled NIS 3.6 million, compared to net financing expenses of NIS 3.4 million in the corresponding quarter last year. The transition to financing income this quarter resulted from a positive return of approximately 0.9% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to a negative return of approximately 1.9% in the corresponding quarter last year, as well as from the raising of the Bank of Israel's interest rate, which increased the interest on deposits.
• The profit in the second quarter of 2023 totaled NIS 18.8 million, compared to NIS 14.2 million in the corresponding quarter last year, an increase of 32%. The increase in profit was due mainly to the transition to financing income.

	Quarter ended
	30.6.2023	30.6.2022	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	98,254,632	102,513,222	(4.2%)
Diluted earnings per share	99,730,939	104,696,078	(4.7%)
Basic earnings per share in NIS	0.191	0.139	38%
Diluted earnings per share in NIS	0.188	0.136	39%

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

	Quarter ended
Revenue from services	30.6.2023	% of the Company's total revenues	30.6.2022	% of the Company's total revenues	% change
Trading and clearing commissions	35,528	38%	35,872	39% 5% of the decrease in revenue from trading and clearing commissions is due to the reduction in the number of trading days and 3% is due to the reduction in the trading volumes of corporate bonds. In opposition, a 5% increase in revenue originates in revenue from T-bills, inter alia, as a result of the increase in trading volumes, T-bills issuances and the cancellation of the maximum commission on off-exchange transactions. In addition, a 2% increase is due to revenue from mutual funds.	(1%)
Listing fees and levies	20,143 revenue.	22%	20,256	22% The decrease in revenue from listing fees and levies is due to the reduction in revenues from the examination of prospectuses, at a rate of 2% of total revenue, which was partly offset by an increase in the annual fees from mutual funds, at a rate of 1% of total	(1%)
Clearing House services	18,974 House services to companies.	20%	18,345	20% The increase in revenue from Clearing House services is due to an increase in Clearing	3%
Data distribution and connectivity services	17,367 19% 15,076 17% 15% 12% 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 data terminals for customers outside Israel.
Other revenue	891	1%	1,437	2% The decrease in revenue is due to the sale of technological consulting services provided in the corresponding quarter last year in an amount of NIS 0.5 million.	(38%)
Total revenue from services	92,903	100%	90,986	100%	2%

Adjusted Net Profit and Adjusted EBITDA Data²

	Quarter ended		Difference
	30.6.2023	30.6.2022	Amount	%
Adjusted EBITDA for the quarter:
Profit before financing income (expenses), net	20,312	22,841	(2,529)
Adjustments:
Share-based payment expenses	1,645	132	1,513
Depreciation and capital losses	13,618	12,782	836
Adjusted EBITDA for the quarter:	35,575	35,755	(180)	(1%)
% of total revenue from services for the quarter	38.3%	39.3%
Adjusted profit for the quarter:
Profit for the quarter	18,775	14,205	4,570
Adjustments:
Share-based payment expenses	1,645	132	1,513
Adjusted profit for the quarter:	20,420	14,337	6,083	42%
% of total revenue from services for the quarter	22.0%	15.8%

• Adjusted EBITDA amounted in the second quarter of 2023 to NIS 35.6 million, similar to the corresponding quarter last year, NIS 35.7 million.
• Adjusted net profit amounted in the second quarter of 2023 to NIS 20.4 million, compared to NIS 14.3 million. adjusted net profit in the corresponding quarter last year, an increase of 42%. The increase is due mainly to the transition to financing income as a result of positive returns on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds and to 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 six months of 2023 (NIS, in thousands)

Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Statement of Profit or Loss

	Six months ended
	30.6.2023	30.6.2022	Difference	% Change
Revenue from services	192,919	188,662	4,257	2%
Costs	142,567	141,551	1,016	1%
Profit before financing income (expenses), net	50,352	47,111	3,241	7%
Financing income (expenses), net	6,144	(8,623)	14,767
Taxes on income	12,240	9,564	2,676	28%
Profit for the period	44,256	28,924	15,332	53%
% of total revenue from services for the period	22.9%	15.3%

• Revenue in the first half of 2023 totaled NIS 192.9 million, compared to revenue of NIS 188.7 million in the corresponding period last year, an increase of 2%. 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 5%.
• The costs in the first half of 2023 totaled NIS 142.6 million, compared to costs of NIS 141.6 million in the corresponding period last year, a 1% increase.
• Net financing income in the first half of 2023 totaled NIS 6.1 million, compared to net financing expenses of NIS 8.6 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 4.3% in the corresponding period last year, as well as from an increase in the interest on deposits.
• Net tax expense in the first half of 2023 totaled NIS 12.2 million, compared to NIS 9.6 million in the corresponding period last year. The increase in the tax expense stemmed from the higher pre-tax profit. The reduction in the effective tax rate is due mainly to deferred taxes created with respect to losses for which deferred taxes were not created in prior periods.
• The profit in the first half of 2023 totaled NIS 44.3 million, compared to NIS 28.9 million in the corresponding period last year, a 53% increase. The increase in profit was due to the increase in revenue from services, 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.

	Six Months ended
	30.6.2023	30.6.2022	Difference %
Weighted average number of ordinary shares used to compute
Basic earnings per share	98,833,478	101,446,193	(2.6%)
Diluted earnings per share	100,439,296	103,938,682	(3.4%)
Basic earnings per share in NIS	0.448	0.285	57%
Diluted earnings per share in NIS	0.441	0.278	58%

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

	Six Months ended
Revenue from services	30.6.2023	% of the Company's total revenues	30.6.2022	% of the Company's total revenues	% change
Trading and clearing commissions	77,451 corresponding period last year.	40% 7% of the increase in revenue from trading and clearing commissions is due to the increase in revenue originates 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 a 5% decrease in revenue compared to the	75,317	40%	3%
Listing fees and levies	40,445 21% 45,045 24% (10%) 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.
Clearing House services	38,087	20% 9% 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 decrease of 3% 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.	35,697	19%	7%
Data distribution and connectivity services	34,491 18% 29,375 15% 17% 11% of the increase in revenue from data distribution and connectivity services is due to the updating of the index-usage pricelist, 4% of the increase in revenue is due to revenue from data terminals for customers outside Israel.
Other revenue	2,445 previous years was received.	1% The decrease in revenue is due to revenue from the sale of technological consulting services provided in the corresponding period last year in an amount of NIS 1.3 million. In opposition, in the reported period, a municipal tax refund of NIS 0.6 million in respect of	3,228	2%	(24%)
Total revenue from services	192,919	100%	188,662	100%	2%

Adjusted net profit and adjusted EBITDA data³

	Six Months ended		Difference
	30.6.2023	30.6.2022	Amount	%
Adjusted EBITDA for the period:
Profit before financing income (expenses), net	50,352	47,111	3,241
Adjustments:
Share-based payment expenses	2,256	263	1,993
Depreciation and capital losses	26,501	25,230	1,271
Adjusted EBITDA for the period:	79,109	72,604	6,505	9%
% of total revenue from services for the period	41.0%	38.5%
Adjusted profit for the period:
Profit for the period	44,256	28,924	15,332
Adjustments:
Share-based payment expenses	2,256	263	1,993
Adjusted profit for the period:	46,512	29,187	17,325	59%
% of total revenue from services for the period	24.1%	15.5%

• − The adjusted EBITDA in the first half of 2023 totaled NIS 79.1 million, as compared to NIS 72.6 million in the corresponding period last year, a 9% increase. The increase is due to a 6% rise in revenue as well as to a reduction in the adjusted expenses (a 3% decrease), mainly with respect to marketing expenses.
• − The adjusted profit in the first half of 2023 totaled NIS 46.5 million, as compared to NIS 29.2 million in the corresponding period last year, a 59% increase. The increase is due to mainly to an increase in revenue and the transition to financing income as a result of the positive return on the Company's investments in held-for-trade financial assets, 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 June 30, 2023 (NIS, in thousands):

	As of 30.06.2023	As of 31.12.2022
	NIS, in thousands		Difference	% Change
Cash and cash equivalents and short term financial assets	318,984	388,627	(69,643)	(18%)
Other current assets	36,513	23,591	12,922	55%
Property and equipment and intangible assets	450,154	455,662	(5,508)	(1%)
Other non-current assets	12,182	6,991	5,191	74%
Total assets (*)	817,833	874,871	(57,038)	(7%)
Current liabilities	116,334	96,092	20,242	21%
Non-current liabilities	86,858	92,331	(5,473)	(6%)
Total liabilities (*)	203,192	188,423	14,769	8%
Total equity	614,641	686,448	(71,807)	(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)	536	613	(77)	(12%)
Surplus liquidity over regulatory requirements (in NIS millions) (**)	190	257	(67)	(26%)

(*) The total assets and liabilities in the balance sheet as of June 30, 2023 and December 31, 2022, include a balance of assets and liabilities in respect of open derivative positions amounting to NIS 1,546 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 adjusted equity also includes the total deferred income from listing fees.

• The total assets as of June 30, 2023 amounted to NIS 817.8 million, a 7% increase compared to December 31, 2022. Most of the increase is due to an increase in cash and cash equivalents with respect to the buyback of Company shares during the period.
• The total liabilities as of June 30, 2023 amounted to NIS 203.2 million, a 8% 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 June 30, 2023 amounted to NIS 614.6 million, a 10% decrease compared to December 31, 2022. The decrease in the equity is due mainly to the buyback of Company shares in a total amount of NIS 132.9 million, net a profit of NIS 44.3 million accrued in the first half of 2023 and excess ownership restructuring, which sold shares in an amount of NIS 11.8 million during the period (for details see section 5.1 below).

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

		Three months ended June 30,
	Item	2023	2022	Explanations of the Company
	Adjusted EBITDA	35.6	35.7
Net cash from operating activities	Changes in working capital	(2.2)	(11.9)	The changes in working capital differ between the periods, due mainly to the different timing of payments with respect to employee benefits.
	Financing and tax	(2.5)	(3.5)	The decrease is due mainly to an increase of NIS 1.8 million in interest received, which was offset from the increase of NIS 0.7 million in tax payments, net in the quarter, compared to the corresponding quarter last year.
	Total	30.9	20.3	Considering the aforesaid, cash flows from operating activities grew by 52% between the quarters.
Net cash for investing activities	Investments in property and equipment and in intangible assets and capitalized payroll costs	(10.8)	(13.9)	The change is due to the timing of implementation of the Group's investment work plans in the quarters.
	Acquisition of financial assets, net	(1.2)	3.1	Acquisition of assets in accordance with the Company's investments policy.
	Total	(12.0)	(10.8)
	Lease payments	(2.3)	(2.2)
	Short-term credit	(0.9)	1.2	Short-term credit as a result of the buyback of Company shares, as above.
	Acquisition of treasury shares	(108.0)	(9.9)	Buyback of Company shares, in accordance with approved buyback plans, as described in section 5.1 below.
Net cash for financing activities	Dividend paid	-	(22.7)
	Payments carried directly to equity within the framework of implementing the TASE Restructuring Law, net	6.8	4.4	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law, as described in section 5.2 below.
	Total	(104.4)	(29.2)
Total decrease in cash and cash equivalents		(85.5)	(19.7)

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

			Six months ended June 30,
	Item	2023	2022	Explanations of the Company
Net cash from operating activities	Adjusted EBITDA	79.1	72.6	The increase in adjusted EBITDA is due mainly to an increase in revenue from services and a decrease in adjusted expenses, mainly marketing expenses.
	Changes in working capital	6.7	1.2	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	(6.5)	(6.1)
	Total	79.3	67.7	Considering the aforesaid, the cash flows from operating activities grew by close to 17% between the periods.
Net cash for investing activities	Investments in property and equipment, intangible assets and capitalized payroll costs	(22.2)	(29.4)	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	(2.6)	3.1	Acquisition of assets in accordance with the Company's investments policy.
	Total	(24.8)	(26.3)
	Lease payments	(4.4)	(4.5)
	Payments for the acquisition of treasury shares	(132.4)	(9.9)	Buyback of Company shares in accordance with the approved buyback plans, as described in section 5.1 below.
Net cash for financing activities	Short-term credit	-	1.2	Short-term credit as a result of the buyback of Company shares, as above.
	Dividend paid	-	(22.7)
	Receipts carried directly to equity within the framework of implementing the ownership restructuring, net.	8.6	8.2	Receipts from a shareholder that realized shares that are subject to the provisions of the TASE Restructuring Law, see section 5.2 below.
	Total	(128.2)	(27.7)
Total increase (decrease) in cash and cash equivalents		(73.7)	13.7

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	65	248

5. Events During the Reporting Period and Thereafter

5.1 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 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.

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. For details regarding the Third Plan, see the Company's immediate report dated 23.5.2023. The information provided in said report is included herein by way of reference.

Within the framework of the first, the second and the third plan, as above, until 30.6.2023 the Company purchased 4,443 thousand shares for a total cost of NIS 77 million, at an average price of NIS 17.32 per share.

In addition, in the period from 1.7.2023 to 6.8.2023, 582 thousand shares were purchased in consideration for NIS 10.9 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.

Accordingly, in the period from 1.1.2023 to 30.6.2023, the Company purchased on The Tel Aviv Stock Exchange 7,120 thousand of its ordinary shares in consideration for NIS 131.9 million.

Overall, until 6.8.2023 the Company purchased 9,593 thousand shares for a total cost of NIS 174 million and at an average price per share of NIS 18.14. representing 9.3% of the issued and paidup share capital of the Company.

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

5.2 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 six months of 2023 the Holders of Arrangement Shares realized 923,000 shares. In respect of this realization, an amount of NIS 11.8 million was transferred to TASE (based on a price of NIS 5.08 per share), of which NIS 3.2 million was paid to TASE after the balance sheet date.

5.3 Equity compensation 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 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.

5.4 Retention Plan for 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. on 1.6.2023, the aforesaid warrants were allotted to the CEO of TASE. The total expense collected as expenses in respect to share-based payments for a period of three and six months that ended on June 30, 2023, amounted to 70 thousand NIS.

5.5 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.

5.6 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 will be recognized in the third quarter of 2023, retrospectively from the beginning of the year, since the resolution of the Finance Committee was passed after the balance sheet date.

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

5.7 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.

5.8 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 Impale 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.

5.10 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, 17 mutual hedge funds that the aggregate value of their assets amounts to a total of approximately NIS 50 million are registered in TASE-CH.

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

5.12 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 Q4-2023. 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.

5.13 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. 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.

5.14 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.

6. Market Review - the Legal System Reform

Trading on TASE was negatively affected by the planned reform of the legal system (hereinafter: "the reform"), promoted by the government, and on the other hand, by the growing protest against the reform and the fear of its consequences on the Israeli economy.

On July 24, 2023, the Knesset passed an amendment to the basic law: the Judiciary ("the Law to Abolish the reasonableness"), which is one of several legislative initiatives of the government to make changes in the legal system of Israel.

The controversy surrounding the proposed changes in the legal system - as long as it continues, let alone if it increases, could lead to further devaluation of the shekel, damages to exports, inflationary pressures, further monetary tightening (mainly in the form of interest rate increases by the Bank of Israel), a crisis in the mortgage industry and a decrease in local investments (both due to the reluctance of foreign investors with an emphasis on the high-tech industry and due to the diversion of investments of local investors abroad) and the demand for private consumption;

In addition to this, this may lead to a lowering of the credit rating of the State of Israel or the forecast for the credit rating by the international rating agencies and an increase in the Israel's risk premium (at least, in the short term).

In accordance with the above, according to the Bank of Israel (April 2023), the range of potential damage to GDP in the event that significant legislative changes affecting the economy occur is estimated at a rate of approximately 0.8%-2.8% each year, on average, over the next three years (depending on the changes in the state's risk premium, markets and demand).

6. Market Review - the Legal System Reform (CONT.)

Following the controversy surrounding the reform as detailed above and the increase in security tensions in Israel, and in parallel with the expectations of continued interest rate hikes in the US by the Fed, the shekel weakened in the first half of 2023, amid volatility, at a rate of approximately 5% relative to the US dollar and at a rate of approximately 7% relative to the euro.

On the other hand, a positive windfall for commerce in Tel Aviv was obtained from positive macroeconomic data for the economy, including:

Continued positive and high growth in relation to OECD countries - the Central Bureau of Statistics published estimated data, according to which: the gross domestic product at constant prices increased in the first quarter of 2023 by an annualized rate of 3.1% compared to the previous quarter, after an increase of 1.8% and a rate of 5.3% in the third quarter and in the fourth quarter of 2022, respectively.

The (quantitative) growth rate in Israel in the first quarter of 2023 (0.8%) is the second highest among the OECD countries that reported, including the USA (0.3%), Great Britain (0.1%) and Germany (-0.3%).

Low unemployment rate - the rate of the unemployed in the economy without being temporarily absent from work decreased to a rate of approximately 3.5% in June 2023, compared to a rate of approximately 4.3% in December 2022. It should be noted that the decrease in the rate of the unemployed is despite the crisis in the high-tech industry, which Expressed in the reduction of manpower, similar to the trend in the world.

Following this, Israel's high credit rating was confirmed by the international rating companies: Fitch confirmed the credit rating of the State of Israel at the level of A+ with a "stable" forecast; Moody's confirmed in April 2023 the credit rating of Israel at the level of A1 but lowered the forecast The rating went from "positive" to "stable"; S&P confirmed the credit rating of the State of Israel at the level of AAwith a stable outlook. It should be noted that leaving the credit rating unchanged by the three companies was accompanied by a warning about the consequences that the reform of the legal system would have if completed.

In the summary of the first half of the year 2023, the leading stock indices in Tel Aviv underperformed compared to the stock indices in the world's leading stock exchanges, the initial public offerings were halted, and the capital and debt raising by the traded companies slowed down compared to the first half of the year 2022. The public diverted its money from the mutual funds that invest in stocks and bonds in Israel for financial funds, basket funds and open-end funds that invest in stocks and bonds abroad.

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 second quarter of 2023 (NIS, in thousands) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (NIS, in thousands)

	June 30,	December 31,
	2023	2022	2022
Assets
Current assets
Cash and cash equivalents	118,958	193,868	192,416
Financial assets at fair value through profit or loss	200,026	196,795	196,211
Trade receivables	16,420	14,886	16,021
Other receivables	20,093	14,887	7,570
	355,497	420,436	412,218
Assets derived from clearing operations in respect of open derivative positions	1,545,977	553,924	937,259
Total current assets	1,901,474	974,360	1,349,477
Non-current assets
Cash restricted as to use	731	720	720
Deferred tax assets	4,660	10,806	5,586
Property and equipment, net	303,672	327,064	315,598
Intangible assets, net	146,482	133,942	140,064
Other long-term receivables	6,791	1,717	685
Total non-current assets	462,336	474,249	462,653
Total assets	2,363,810	1,448,609	1,812,130

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

	June 30,	December 31,
	2023	2022	2022
Liabilities and Equity
Current liabilities
Current maturities of lease liabilities	6,563	8,507	8,473
Trade payables	8,889	8,644	13,864
Other payables	5,437	5,682	3,036
Income received in advance with respect to annual levies	19,956	19,589	-
Deferred income from listing fees, levies and others	28,213	28,722	28,412
Current tax liabilities	5,853	3,884	4,743
Short-term liabilities for employee benefits	41,423	32,137	37,564
	116,334	107,165	96,092
Liabilities derived from clearing operations in respect of open derivative positions	1,545,977	553,924	937,259
Total current liabilities	1,662,311	661,089	1,033,351
Non-current liabilities
Lease liabilities	4,542	10,437	6,572
Deferred income from listing fees and levies	76,577	78,003	78,459
Non-current liabilities for employee benefits	5,008	21,587	6,580
Other liabilities	731	720	720
Total non-current liabilities	86,858	110,747	92,331
Equity
Remeasurement of net defined benefit liability	7,945	(3,682)	5,207
Capital reserve in respect to share-based payment transactions	36,043	33,520	33,787
Other capital reserves	66,057	54,222	54,222
Retained earnings	504,596	592,713	593,232
Total equity	614,641	676,773	686,448
Total liabilities and equity	2,363,810	1,448,609	1,812,130

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(NIS, in thousands)

	Six months ended June 30,		Three months ended June 30,	Year ended December 31,
	2023	2022	2023	2022	2022
Revenue from services:
Trading and clearing commissions	77,451	75,317	35,528	35,872	142,490
Listing fees and levies	40,445	45,045	20,143	20,256	84,489
Clearing House services	38,087	35,697	18,974	18,345	70,908
Distribution of data and connectivity services	34,491	29,375	17,367	15,076	58,060
Other revenue	2,445	3,228	891	1,437	5,064
Total revenue from services	192,919	188,662	92,903	90,986	361,011
Cost of revenue:
Employee benefits expenses	75,238	78,486	37,067	38,333	147,905
Expenses in respect to share-based payments	2,256	263	1,645	132	530
Computer and communications expenses	17,927	14,192	8,914	7,362	29,953
Property taxes and building maintenance expenses	6,461	6,487	3,234	3,347	13,798
Other operating expenses	1,133	854	599	414	2,548
General and administrative expenses	4,602	4,103	2,357	1,885	9,100
Marketing expenses	3,291	7,323	2,428	1,583	13,171
Fee to the Israel Securities Authority	4,857	4,613	2,428	2,307	9,341
Depreciation and amortization	25,908	25,184	13,040	12,736	51,335
Other expenses	894	46	879	46	132
Total costs	142,567	141,551	72,591	68,145	277,813
Profit before financing income (expenses), net	50,352	47,111	20,312	22,841	83,198
Financing income	6,344	(8,407)	3,696	(3,302)	(12,802)
Financing expenses	(200)	216	(80)	114	423
Total financing income (expenses), net	6,144	(8,623)	3,616	(3,416)	(13,225)
Profit before taxes on income	56,496	38,488	23,928	19,425	69,973
Taxes on income	12,240	9,564	5,153	5,220	19,137
Profit for the year	44,256	28,924	18,775	14,205	50,836
Basic earnings per share (NIS)	0.448	0.285	0.191	0.139	0.500
Diluted earnings per share (NIS)	0.441	0.278	0.188	0.136	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	-	-	-	44,256	44,256
Other comprehensive loss for the period	-	2,738	-	-	2,738
Total comprehensive income for the period	-	2,738	-	44,256	46,994
Share-based payment	2,256	-	-	-	2,256
Acquisition of Treasury shares	-	-	-	(132,892)	(132,892)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	11,835	-	11,835
Balance at June 30, 2023	36,043	7,945	66,057	504,596	614,641

	Share based payment reserve	Remeasurement of net defined benefit liability	Other capital reserves	Retained earnings	Total
Balance at April 1, 2023	34,398	7,386	56,071	594,335	692,190
Profit for the period	-	-	-	18,775	18,775
Other comprehensive loss for the period	-	559	-	-	559
Total comprehensive income for the period	-	559	-	18,775	19,334
Share-based payment	1,645	-	-	-	1,645
Acquisition of Treasury shares	-	-	-	(108,514)	(108,514)
Receipts from shareholders within the framework of implementing the ownership restructuring, net	-	-	9,986	-	9,986
Balance at June 30, 2023	36,043	7,945	66,057	504,596	614,641

CONSOLIDATED STATEMENTS OF CASH FLOWS (NIS, in thousands)

	Six months ended June 30,		Three months ended June 30,		Year ended December 31,
	2023	2022	2023	2022	2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	44,256	28,924	18,775	14,205	50,836
Expenses in respect of share-based payments	2,256	263	1,645	132	530
Tax expenses recognized in profit or loss	12,240	9,564	5,153	5,220	19,137
Net financing expenses (Income) recognized in profit or loss	(6,144)	8,623	(3,616)	3,416	13,225
Depreciation and amortization	25,908	25,184	13,040	12,736	51,335
Loss from disposal of property and equipment and intangible assets	593	46	578	46	131
	79,109	72,604	35,575	35,755	135,194
Changes in asset and liability items:
Decrease (Increase) in trade receivables and other receivables	(15,591)	(7,748)	5,047	4,825	(532)
Decrease (Increase) in receivables in respect to open derivative positions	(608,718)	111,347	(174,882)	18,228	(271,988)
Decrease in trade payables and other payables	(1,475)	(4,437)	(1,799)	(5,694)	(2,320)
Increase (Decrease) in income received in advance with respect to annual levies	19,956	19,299	(8,464)	(6,464)	-
Decrease in deferred income from listing fees, levies and others	(2,081)	(4,012)	(809)	(1,478)	(4,156)
Increase (Decrease) in payables in respect to open derivative positions	608,718	(111,347)	174,882	(18,228)	271,988
Increase (Decrease) in liabilities for employee benefits	5,843	(1,950)	3,874	(3,132)	14
	85,761	73,756	33,424	23,812	128,200
Interest received	4,872	1,485	2,089	251	5,297
Interest paid	(318)	(212)	(150)	(90)	(417)
Tax payments - operating activities	(11,015)	(7,350)	(4,401)	(3,666)	(13,498)
	(6,461)	(6,077)	(2,462)	(3,505)	(8,618)
Net cash provided by operating activities	79,300	67,679	30,962	20,307	119,582
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,744)	(12,866)	(548)	(5,405)	(14,841)
Acquisitions of intangible assets	(9,070)	(6,388)	(4,442)	(3,034)	(14,086)
Payments in respect to costs capitalized to property and equipment and to intangible assets	(11,411)	(10,174)	(5,786)	(5,436)	(19,331)
Disposal (Acquisition) of financial assets at fair value through profit or loss, net	(2,623)	3,163	(1,223)	3,129	(4,632)
Net cash used in investing activities	(24,848)	(26,265)	(11,999)	(10,746)	(52,890)
CASH FLOW FROM FINANCING ACTIVITIES:
Lease payments	(4,398)	(4,464)	(2,273)	(2,216)	(8,815)
short term credit	-	1,155	(889)	1,155	-
Dividend paid	-	(22,735)	-	(22,735)	(22,735)
Acquisition of Treasury shares	(132,408)	(9,925)	(108,030)	(9,925)	(31,318)
Receipts (Payments) carried directly to equity within the framework of implementing the TASE Restructuring Law, net	8,620	8,220	6,771	4,427	8,220
Net cash used in financing activities	(128,186)	(27,749)	(104,421)	(29,294)	(54,648)
Net increase (Decrease) in cash and cash equivalents	(73,734)	13,665	(85,458)	(19,733)	12,044
Cash and cash equivalents, beginning of the period	192,416	179,768	204,271	213,259	179,768
Effect of changes in exchange rates on cash balances held in foreign currency	276	435	145	342	604
Cash and cash equivalents, end of the period	118,958	193,868	118,958	193,868	192,416

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

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

Transactional Services

	Six months ended		Three months ended	Year ended
	June 30,		June 30,		December 31,
	2023	2022	2023	2022	2022
Number of trading days	122	125	58	61	244
SHARES
Market cap of Shares (ex. ETFs)	927	1,008	927	1,008	949
Market cap of ETFs on share indices	82	70	82	70	71
Total market cap (in NIS billions)	1,009	1,078	1,009	1,078	1,020
Shares ADV (ex. ETFs)	1,715	2,019	1,695	1,943	1,874
ETFs on share indices ADV	387	477	370	448	421
Total average daily volume (in NIS millions)	2,102	2,496	2,065	2,391	2,295
Average commissions	0.01106%	0.01025%	0.01129%	0.01004%	0.01044%
Revenue (in NIS thousands)	28,353	31,982	13,526	14,642	58,469
BONDS
Market cap of government bonds - unlinked	292	322	292	322	287
Market cap of government bonds - linked	309	321	309	321	300
Market cap of corporate bonds	425	415	425	415	409
Market cap of bonds (ex. ETFs)	1,026	1,058	1,026	1,058	996
Market cap of ETFs on bond indices	28	28	28	28	27
Total market cap (in NIS billions)	1,054	1,086	1,054	1,086	1,023
Government bonds - unlinked ADV (in NIS millions)	1,774	1,517	1,651	1,324	1,476
Government bonds - linked ADV (in NIS millions)	1,047	1,008	979	984	955
Corporate bonds ADV excluding ETFs (in NIS millions)	905	978	834	1,144	916
ETFs on bond indices ADV	112	148	98	144	130
Total Average daily volume (in NIS	3,838	3,651	3,562	3,596	3,477
millions) Government bonds unlinked - average	0.00196%	0.00191%	0.00198%	0.00195%	0.00195%
commissions Government bonds linked - average commissions	0.00296%	0.00288%	0.00298%	0.00292%	0.00290%
Corporate bonds - average commissions	0.00703%	0.00696%	0.00705%	0.00699%	0.00707%
Government bonds - unlinked (in NIS thousands)	4,247	3,624	1,897	1,571	7,010
Government bonds - linked (in NIS thousands)	3,775	3,623	1,690	1,754	6,760
Corporate bonds (in NIS thousands)	8,720	9,800	3,811	5,491	18,036
Other (MTS) (in NIS thousands)	138	135	64	32	208
Revenue (in NIS thousands)	16,880	17,182	7,462	8,848	32,014
TREASURY BILLS
Market cap (in NIS billions)	282	134	282	134	209
Treasury bills ADV (in NIS millions)	1,341	632	1,302	803	783
Average commissions	0.00453%	0.00247%	0.00407%	0.00236%	0.00334%

	Six months ended		Three months ended	Year ended
	June 30,		June 30,		December 31,
	2023	2022	2023	2022	2022
Revenue (in NIS thousands)	7,409	1,952	3,077	1,155	6,375
MUTUAL FUNDS
Market cap (in NIS billions)	297	262	297	262	272
Average daily value of creation/ redemptions (in NIS millions)	1,407	908	1,306	874	987
Average commissions	0.00815%	0.01127%	0.00860%	0.01121%	0.01027%
Revenue (in NIS thousands)	13,984	12,795	6,516	5,977	24,732
DERIVATIVES
Derivatives on indices	108.4	122	106.4	118.5	114.6
Derivatives on foreign currency Derivatives on individual shares	39.5 11.3	41.2 5.3	36.7 10.1	39 3.1	40.3 4.3
Total derivative contracts (in '000 units)	159.2	168.5	153.2	160.6	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)	10,825	11,406	4,947	5,250	20,900
Total revenue from trading and clearing commissions	77,451	75,317	35,528	35,872	142,490

Non-Transactional Services

	Six months ended June 30,		Three months ended June 30,		Year ended December 31,
	2023	2022	2023	2022	2022
CLEARING HOUSE SERVICES
Average Monthly Market value of assets (in NIS billions)	2,853	3,060	2,877	3,004	2,983
Avg. commissions from Custodian Fees	0.00110%	0.00109%	0.00110%	0.00109%	0.00109%
Revenue from: (in NIS thousands)
Custodian Fees	15,632	16,604	7,891	8,160	32,460
Clearing House services for members	11,999	10,752	5,574	5,443	22,549
Clearing House services for company events	7,637	5,723	4,071	3,423	10,799
Other	2,819	2,618	1,438	1,319	5,100
Total revenue from Clearing House services	38,087	35,697	18,974	18,345	70,908
LISTING FEES AND LEVIES
Weighted avg. number of companies / funds
Companies	627	615	624	613	612
Mutual funds and ETFs	2,326	2,290	2,309	2,310	2,314
Avg. revenue from levies (in NIS thousands)
Companies	10.9	11.4	5.5	5.7	22.8
Mutual funds and ETFs	4.0	3.8	2.0	1.9	7.6

	Six months ended June 30,		Three months ended June 30,		Year ended
					December 31,
	2023	2022	2023	2022	2022
Revenue from Annual Levies from: (in NIS thousands)
Companies	6,840	7,003	3,443	3,488	13,966
Mutual funds and ETFs	9,392	8,770	4,652	4,420	17,778
Nominee Company and others	3,658	3,150	1,820	1,586	6,381
Total revenue from Annual levies	19,890	18,923	9,915	9,494	38,125
The value of issuance used to calculate Listing fees (in NIS millions)
Companies – Shares, Bonds and ETFs	59,470	75,626	30,806	32,217	143,732
Government bonds (including swap transactions)	40,379	25,307	23,928	9,889	41,501
Treasury-bills	208,889	80,580	79,196	39,651	231,158
Number of issuances
Number of public offerings of shares on TASE (including on TASE-UP)	35	41	19	12	78
Number of new issuers of shares	1	9	-	1	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	1,416	-	25	2,342
Amount raised in bond offerings by new issuers (in NIS millions)	523	370	418	98	967
Number of corporate bond offerings to the public	67	85	34	34	165
Number of corporate bond offerings to the public by new companies	3	3	1	1	8
Average revenue from Examination and Listing Fees
Companies – shares, bonds and ETFs	0.0173%	0.0177%	0.0180%	0.0176%	0.0175%
Revenue from Examination and Listing Fees (in NIS thousands)
Examination fees	3,726	4,449	1,780	2,129	8,245
Receipts from listing Fees
Listing fees - shares, bonds & ETF's	10,273	13,429	5,543	5,688	25,183
Listing fees - government bonds	3,133	2,976	1,566	1,488	5,952
Listing of T-bills	1,462	377	554	90	1,618
Levies and examination fees from members	57	796	-	638	850
Other Total	122 15,047	82 17,660	96 7,759	29 7,933	236 33,839
Accounting adjustments to revenue recognition	1,782	4,013	689	700	4,280
Total revenue from listing Fees	16,829	21,673	8,448	8,633	38,119
Total revenue from examination and listing fees (in NIS thousands)	20,555	26,122	10,228	10,762	46,364
Total revenue from listing fees and levies	40,445	45,045	20,143	20,256	84,489
DATA DISTRIBUTION AND CONNECTIVITY SERVICES
Average number of data terminals
Domestic business clients Overseas business clients	7,312 5,845	7,589 5,347	7,245 5,968	7,459 5,214	7,419 5,447
Non-display data	269	308	230	297	288

	Six months ended June 30,		Three months ended June 30,		Year ended December 31,
	2023	2022	2023	2022	2022
Revenue from distribution and connectivity services (in NIS thousands)
Domestic business clients	8,830	8,494	4,380	4,179	16,693
Overseas business clients	5,623	4,385	3,034	2,277	9,251
Private clients	4,120	4,461	2,017	2,176	8,254
Derivative date and non-display data	2,273	2,385	1,074	1,380	4,775
Data files and other data	2,295	2,001	1,128	1,019	4,147
Authorization for indices usage	4,973	1,670	2,511	768	3,202
Connectivity services	6,377	5,979	3,223	3,277	11,738
Total revenue from Data distribution and Connectivity services	34,491	29,375	17,367	15,076	58,060

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

	Six months ended June 30,		% Change	Three months ended June 30,		Year ended % Change December 31,
	2023	2022		2023	2022		2022
Velocity of trading
Shares	44.7%	46.0%	(3%)	44.3%	42.8%	3%	43.1%
Corporate bonds (2)	59.4%	65.4%	(9%)	54.7%	75.0%	(27%)	60.9%
Government bonds – shekel (3)	130.7%	93.4%	40%	121.9%	84.1%	45%	95.2%
Government bonds – linked (4)	74.8%	67.4%	11%	69.1%	67.7%	2%	66.6%
Treasury bills	116.5%	103.5%	13%	107.3%	119.5%	(10%)	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	Total receipts for the Six months ended	Income recognition in Six 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	30.06.23	30.06.23	30.06.23	30.06.24	30.06.25	30.06.26	30.6.26
Listing of
Shares	28.9	1.3	3.2	27.0	5.7	5.0	4.2	12.1
Corporate bonds	40.0	7.5	7.0	40.5	12.3	9.1	6.5	12.6
ETF	24.6	1.5	2.5	23.6	4.8	4.5	3.7	10.6
Government bonds	11.4	3.1	2.6	11.9	3.7	3.3	2.8	2.1
T-bills	1.0	1.5	1.2	1.3	1.3	0.0	0.0	0.0
Total	105.9	14.9	16.5	104.3	27.8	21.9	17.2	37.4