ASX Limited – Half-Year 2013 Results Presentation

21 February 2013

Disclaimer The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (21 February 2013). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate.

To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by the ASX Group including any of its related bodies corporate.

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• Underlying net profit $171.1m, down 5.3% ‒ Dividend 87.9 cents per share; 90% payout ratio

• Revenue performance ‒ Decline driven by equity market activity falling to cyclical low of $3.8bn per day, down 24.5% ‒ First quarter down 8.8% compared to strong quarter previous year; second quarter up 2.8%

driven by Listings, Derivatives and Technical Services

• Expenses well controlled • Regulatory environment in cash equities business stabilising

‒ Controls around equities trading – dark pools, HFT ‒ Clearing market structure retained, Code of Practice under development

• Capital expenditure $15.4m ‒ Increasing focus on post-trade services – OTC clearing, collateral management ‒ Strong balance sheet position maintained

1H13 Highlights

All comparisons are to prior comparative period (pcp) 3

Revenue $304.8m (3.3%)

Expenses $71.3m (1.3%)

Underlying Net Profit $171.1m (5.3%)

Statutory Net Profit $171.1m (2.5%)

Dividend 87.9c (5.3%)

Statutory EPS 97.7c (2.5%)

Income Statement

1H13 $ Million

1H12 $ Million % Variance 2H12

$ Million % Variance

Operating Revenue 304.8 315.1 (3.3%) 295.3 3.2%

Cash Operating Expenses 71.3 70.4 (1.3%) 70.7 (0.9%)

EBITDA 233.5 244.7 (4.6%) 224.6 3.9%

Depreciation and Amortisation 15.4 12.9 (19.5%) 14.7 (3.8%)

EBIT 218.1 231.8 (5.9%) 209.9 3.9%

Interest and Dividend 25.2 25.2 - 24.6 2.6%

Profit Before Tax 243.3 257.0 (5.3%) 234.5 3.8%

Income Tax Expense (72.2) (76.3) 5.4% (69.0) (4.7%)

Underlying Net Profit 171.1 180.7 (5.3%) 165.5 3.4%

Significant Items After Tax 0.0 (5.1) 100.0% (1.9) 100.0%

Statutory Net Profit 171.1 175.6 (2.5%) 163.6 4.6%

EBITDA Margin 76.6% 77.7% 76.1%

4 Variances expressed favourable/(unfavourable)

Revenue Movement ($M)

5 Underlying revenue categories as per ASX’s segment disclosure

315.1

5.0 (12.0)

(4.0)

2.0 (2.2) 1.3 (0.4) 304.8

1H12

% Change

Listings andIssuer Services

7.3%

Cash Market

(18.0%)

InformationServices

(11.7%)

TechnicalServices

8.8%

Derivatives

(2.3%)

AustraclearServices

7.5%

Other

(3.5%)

1H13

(3.3%)

Revenue Performance by Quarter

1Q13 $ Million

% Variance to PCP

2Q13 $ Million

% Variance to PCP

Listings and Issuer Services 33.7 3.4% 39.9 10.8%

Cash Market 27.9 (25.2%) 27.0 (9.1%)

Information Services 15.1 (13.2%) 15.5 (9.9%)

Technical Services 12.1 8.0% 12.5 9.6%

Derivatives 48.3 (9.4%) 46.0 6.4%

Austraclear Services 9.6 6.1% 9.5 8.9%

Other Revenue 3.7 (9.8%) 3.9 -

Operating Revenue 150.4 (8.8%) 154.4 2.8%

6 Variances expressed favourable/(unfavourable)

Listings & Issuer

Services24%

Cash Market Trading

5%Cash Market

Clearing7%

Cash Market Settlement

6%Information Services

10%

Technical Services

8%

Derivatives31%

Austraclear Services

6%

Other3%

1H13 ($304.8 million)

Revenue Profile Over 3 Years (1H10 to 1H13)

7

Listings & Issuer

Services27%

Cash Market Trading

9%

Cash Market Clearing

8%Cash Market Settlement

8%

Information Services

12%

Technical Services

5%

Derivatives24%

Austraclear Services

5%

Other2%

1H10 ($302.8 million)

Reduced Contribution from Cash Equities

Derivatives + 7% Technical Services + 3%

Cash Markets - 7% Information Services - 2%

Regulatory Developments

8

Cash Market Trading Clearing and Settlement

Market Structure • Changed 31 October 2011

− Best execution 1 March 2013

• Investor concern around market quality

• Reforms announced November 2012; further controls under review ‒ Dark execution ‒ High frequency trading

• Essential to retain existing controls ‒ Tick sizes ‒ Supervision cost recovery methodology

ASX • 1H13 ASX share of on-market traded value 96.5%

• Expansion of execution services (eg Centre Point)

• Investment in Technical Services

Market Structure • Review by Council of Financial Regulators

• Announcement by Treasurer on 11 Feb 2013 ‒ Retain market structure ‒ Code of Practice

• New Financial Stability Standards for clearing and settlement

ASX • Improve risk management

‒ Cash market margining ‒ CME SPAN margining engine ‒ Financial Stability Standards

• Invest in new services. Focus next 6-12 months ‒ OTC derivatives clearing ‒ Client clearing ‒ Collateral management

Listings and Issuer Services

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Areas of Focus Listings • Capital raising flexibility – 592 AGM approvals

• Enhanced reporting for mining, oil and gas

• Int’l quotations (rejected in proposed form)

Issuer Services • Equity research scheme pilot

Product Expansion • Fixed income ETFs

• Australian Government Bonds

Distribution / Market Efficiency • Managed Funds Service – 60 partners

Public Policy • Flow-through shares

Highlights Revenue $73.6 million, up 7.3%

• Listings $60.0 million, up 6.8%

‒ Secondary capital $22.5 billion, up 3.6%

‒ 41 IPOs (57 pcp)

• Issuer Services $13.6 million, up 9.6%

• Fee review

Total Capital Raised

10

Cash Market

Areas of Focus Trading • Centre Point enhancements − 4.0% of value traded, 9.6% of revenue • On-market trading market share 96.5% − Best execution 1 March 2013 • Regulation of dark pools and HFT

Clearing • Cash market margining from June 2013 • Market structure review completed

Settlement • Fee unbundling

Customer alignment

• Revenue sharing arrangements across each business

Highlights Revenue $54.9 million, down 18.0%

• Includes equities trading, clearing and settlement

• All Ordinaries up 12.8% since 1 July 2012

• Activity at cyclical low; total market value traded down 19.9%, ASX down 24.5%

• Average fee 1.13 bps, up 8.7%

Trading Activity

Information and Technical Services

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Areas of Focus

Information Services

• Low latency data services for futures; equities data service in place

• Redesign of service in line with user categories (retail, professional, electronic)

Technical Services

• Low latency access and data services

• ASX Best enhancements

• Global connectivity through ASX Net

• Continued data centre sales growth

Highlights Information Services $30.6 million, down 11.7%

• Retail and professional data usage declined

Technical Services $24.6 million, up 8.8%

• Growth in liquidity access, community and connectivity, and hosting; 111 cabinets in ALC

• Reduction in application services revenue with fewer workstations and Fidessa revenue share

Revenue Mix Technical Services

Derivatives and OTC Markets

12

Areas of Focus

Product Development

• VIX and sectoral futures

• Equity option market enhancements

Risk Management

• CME SPAN margining for futures

OTC Markets

• OTC Interest Rate Swaps Derivatives clearing

Customer Alignment • Revenue sharing, including OTC clearing

Highlights Revenue $94.4 million, down 2.3%

• ASX 24 Derivatives $79.9 million, down 2.3%

• ASX Derivatives $14.5 million, down 2.5%

• Revenue performance by quarter

‒ 1Q13 revenue down 9.4% vs strong pcp

‒ 2Q13 revenue up 6.4%

ASX 24 Derivatives Volumes

0

10

20

30

40

50

60

1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13

Cont

ract

s M

illio

n

Austraclear Services

13

Areas of Focus

Collateral management service

• 2013 focus on Austraclear

• Later phases include CHESS collateral and connection to global collateral pools

• ASX joined international Liquidity Alliance to explore how collateral services could be linked cross-border

Highlights Revenue $19.1 million, up 7.5%

• Transaction revenue $7.9 million, flat

• Holdings revenue $3.2 million, up 18.5%

‒ Average balances up 6.8%

• Registry revenue $8.0 million, up 12.7%

• Fee review

Transactions and Holdings Balances

Interest and Dividend Income

Highlights

Total net interest income flat

ASX Group interest income down 35.6% due to lower interest rates

Net interest earned on collateral balances up 40.2% due to higher balances and earning rates

‒ Average cash collateral balances $3.3 billion, up 18.9%

‒ Average investment spread earned 46 bps over the official cash rate (33 bps pcp)

IRESS dividend unchanged

1H13 $ Million

1H12 $ Million

% Variance

ASX Group Interest Income 7.5 11.6 (35.6%)

Net Interest Earned on Collateral Balances

14.4 10.3 40.2%

Total Net Interest Income 21.9 21.9 -

Dividend Income 3.3 3.3 -

Interest and Dividend Income 25.2 25.2 -

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Expenses

Highlights

Total expenses up 1.3%

‒ Staff: fixed remuneration and deferred incentives

Staff numbers up 3.8%. 518 FTEs at 31/12/12, up from 505 FTEs at 30/6/12

‒ Occupancy: consolidation of office space following data centre migration

‒ ASIC supervision levy: credit received related to 1H12

Guidance FY13 expenses: up to 3.5% increase

1H13 $ Million

1H12 $ Million

% Variance

Staff 43.2 41.7 (3.6%)

Occupancy 6.6 7.8 15.3%

Equipment 10.5 10.2 (2.8%)

Administration 7.4 6.4 (14.8%)

Variable 2.0 2.1 4.3%

ASIC Supervision Levy 1.6 2.2 24.6%

Total Cash Operating Expenses 71.3 70.4 (1.3%)

Depreciation and Amortisation 15.4 12.9 (19.5%)

15 Variances expressed favourable/(unfavourable)

Capital Expenditure ($M)

Highlights

Capital expenditure in 1H13 of $15.4 million

Guidance FY13: up to $40 million. Uplift from initiative development

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12.7 13.0

8.6

18.9 15.5

34.8

20.5 18.5 15.4

1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13

Normal Capex Data Centre

Capital and Liquidity Position

Non-attributed capital of $407.2 million at 31 December 2012 (pre-dividend) Free cash surplus of $239.4 million at 31 December 2012 (pre-dividend)

ASX Group Equity Net Tangible Equity versus

Risk-Based Capital Attribution

ASX Group Cash ASX Group Cash versus

Cash-Backed Requirements

17

0

100

200

300

400

500

600

700

800

$ M

illio

n

Other Risk-Based Capital Allocations (inc Dividend)Equity and Sub-Debt provided to CCPsNet Tangible Equity (NTE)

31 Dec 2011 31 Dec 2012 0

100

200

300

400

500

600

700

800

900

$ M

illio

n Cash-Backed Capital provided to AustraclearEquity and Sub-Debt provided to CCPsExternal Borrowing provided to CCPsASX Group Cash Reserves

31 Dec 2011 31 Dec 2012

Post Balance Date Activity (to 15 Feb)

Some stabilisation of the global economic environment

US economy showing tentative signs of improvement

Europe less volatile in recent months – but serious structural issues remain

Asia showing relative strength

Equity market activity is yet to respond to improving conditions

Equities indices up in most markets. All Ordinaries up 22% since July 2012

Equities trading activity stabilised in recent weeks

Derivative volumes holding up well with ASX 24 volumes at pre-GFC levels

ASX trading for 7 weeks to 15 February reflects market conditions

Cash market average value traded per day $3.8 billion, 4.2% below pcp

ASX 24 derivatives daily average volume 358,000 contracts, 16.8% above pcp

Total capital raised $2 billion, up 49.3%

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Current Market Environment

1 Total market including on-market (ASX and CHI-X) and off-market

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Daily Average Value Traded $bn1 and All Ordinaries Index

Daily Average Value Traded $bn (LHS) All Ordinaries Average (RHS)

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S&P/ASX 200 VIX vs CBOE S&P 500 VIX

AUS VIX US VIX

• Underlying net profit $171.1m, down 5.3%

‒ Dividend 87.9 cents per share; 90% payout ratio

• Revenue performance

‒ Equity market activity falling to cyclical low

‒ First quarter down 8.8% compared to strong quarter pcp

‒ Second quarter up 2.8% driven by Listing, Derivatives, Technical Services

• Expenses well controlled

• Regulatory environment in cash equities business stabilising

• Investment in post-trade services

1H13 Highlights

All comparisons are to prior comparative period (pcp) 20

Revenue $304.8m (3.3%)

Expenses $71.3m (1.3%)

Underlying Net Profit $171.1m (5.3%)

Statutory Net Profit $171.1m (2.5%)

Dividend 87.9c (5.3%)

Statutory EPS 97.7c (2.5%)

ASX Limited – Half-Year 2013 Results Presentation

21 February 2013