2020 ASX Limited Annual General Meeting 30 September 2020 ASX - - PowerPoint PPT Presentation

2020 ASX Limited Annual General Meeting

30 September 2020

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ASX Limited Board

Rick Holliday-Smith

Independent, Non-Executive Chairman BA (Hons), FAICD

Dominic Stevens

Managing Director and CEO, Executive Director BCom (Hons)

Damian Roche

Independent, Non-Executive Director BCom

Rob Woods

Independent, Non-Executive Director BCom

Yasmin Allen

Independent, Non-Executive Director BCom, FAICD

Melinda Conrad

Independent, Non-Executive Director MBA, FAICD

Dr Ken Henry AC

Independent, Non-Executive Director BCom (Hons), PhD, DB h.c, FASSA

Peter Marriott

Independent, Non-Executive Director BEc (Hons), FCA, MAICD

Peter Nash

Independent, Non-Executive Director BCom, FCA, F Fin

Heather Ridout AO

Independent, Non-Executive Director BEc (Hons)

Peter Warne

Independent, Non-Executive Director BA, FAICD

Procedural Matters Rick Holliday-Smith Chairman

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HELP NUMBER

1800 990 363

Chairman's Address Rick Holliday-Smith

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FY20 financial highlights

Strong business performance

Ope perati ting revenue

$9 $938. 8.4m +8. +8.6%

Earni ning ngs before in interest and nd t tax

$652 52.2 .2m +8. +8.5%

Sta tatuto tutory net pr t profit t afte ter ta tax

$4 $498. 8.6m +1. 1.4%

Und nderlyi ying ng net pr t profit t afte ter ta tax

$5 $513.8m 8m +4. 4.4% 4%

Und nderlyi ying ng earni ning ngs per s r share re

265.4 5.4c +4. 4.4% 4%

Dividen dends ds per s r share re

238.9 .9c +4.5% .5%

Variance relative to the prior comparative period (FY19 pcp) expressed favourable/(unfavourable)

Chairman's Address Rick Holliday-Smith

CEO’s Address Dominic Stevens

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Historic initial impact of COVID-19 on financial markets

Unprecedented volumes and volatility

7m trades

registered in CHESS

+122% vs previous pre COVID-19 daily record set 6 August 2019

24.5m futures

contracts traded

+11% vs previous monthly record set in March 2019

100 200 300 400 500 600 700 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Tech bubble bursts Sept 11 terror attack GFC linked events EU sovereign debt crisis China devalues yuan Greek default UK votes for Brexit US/China trade war CO COVID-19 19

2%

Trump wins election

S&P/ASX 200 intraday moves – 2000 to 2020

14% 4% 6% 8% 12% 10% Absolute percentage move

8/10

largest intra-day trading ranges

in history of S&P/ASX 200

$31bn

secondary capital raised during June ’20 quarter

second largest quarter in history after December quarter ‘09

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Our COVID-19 response was swift and continues

Protecting our people as we continue to operate for our customers and Australia’s economy Trusted actions Resilient operations

Safet ety a and nd w wel ellbei eing ng

• f our pe

peopl ple

Efficient markets

Proactively a addr ddresse ssed COVID i impli mplications Acces ess t to func nctioni ning ng infrastruct ructur ure and nd ser ervices es

100%

uptime of ASX’s markets

95% of employees

moved to working from home (WFH)

• ver a weekend

Doubled

monthly website visitor numbers

asx.com.au

$12.8bn

secondary capital raisings facilitated by ASX relief Increased

communication

with regulators Enhanced

wellbeing

focus and investment

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Delivered a robust FY20 financial performance

Solid revenue growth from all four business units

Revenue and expenses as per the Group segment reporting. Variance relative to the prior comparative period (FY19 pcp) expressed favourable/(unfavourable).

• 7.3% revenue growth driven by

‒ Strong secondary capital raisings ‒ Increase in shareholder activity

Deriv ivativ ives a and OTC Markets Lis istin ings and Issuer Servic ices

• 4.5% revenue growth driven by

‒ Austraclear balances and transactions growth ‒ Futures volumes steady

• 17.0% revenue growth driven by

strong equity volumes

Tradin ing Servic ices Equi quity ty P Post-Trade S Servic ices

• 11.5% revenue growth driven by

‒ Historic equity trading volumes ‒ Increased demand for data products and connectivity services

FY2 Y20 R REV EVEN ENUE E BY Y BUSIN INES ESS U UNIT ITS

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Techno chnology-driv iven

Pursuing adjacent growth opportunities Contemporary, flexible and resilient ASX operating platform Expanded, enhanced core customer value proposition

Building an exchange for the future

Progressing our customer-focused, technology-driven strategy

Cus usto tomer-fo focused

Expertise and capacity New IT infrastructure Confidence in the reliability and integrity of transacting via ASX Product enhancements,

• perational efficiencies, and

easier ways to do business New opportunities to create products and services, and reduce risks and costs Upgraded applications, programs and IT system functionality

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Market t trends accelerated by C COVID-19 19

Pursuing adjacent growth opportunities Contemporary, flexible and resilient ASX operating platform Expanded, enhanced core customer value proposition

COVID-19 has accelerated the trend towards digitisation

Challenges of remote working highlight the need for digital solutions

AS ASX strategy e even m more relevant

Multi-party collaboration technology Mobility and communication tools System resilience and security Seamless WFH for ASX staff Improved capacity, speed, backup systems and cyber security Corporate actions STP New DLT-enabled CHESS system DLT infrastructure – workflow collaboration DataSphere – data collaboration Sympli – workflow collaboration Straight-through-processing (STP) Rich and standardised datasets

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Investing in our operating platform

CHESS replacement finalises full contemporisation of equities technology stack

 DataSphere  Enterprise visual analytics

• Enterprise-wide data warehouse

 www.asx.com.au and investor portal

• Corporate actions STP
• Issuer portal

 Market oversight and surveillance systems

• ASX Trade refresh
• CHESS replacement

 ALC and new secondary data centre  ASX Net upgrade  Continued investment in cyber security

TR TRAD ADING NG MAR ARKET O T OVERSIGH GHT T CLEAR ARING an NG and SET ETTLEM EMEN ENT CU CUSTOME MER R EX EXPER ERIEN IENCE DATA ATA an and ANAL ANALYTI TICS DATA C ATA CENTR NTRES, COMMUNI NICATI ATION N NE NETW TWORKS

Complete

October Under consultation consult

Complete Complete

Ongoing

Complete e Complete COMPLET ETED o ED or COMPLE LETI TING B BY END ND F FY21 1

FY22 Integ tegrated ted dat ata a mana nage gement nt Modern rn, scala lable ble infrastruc uctur ture Co Contem temporary ap applic icat atio ions Dig igit ital al in interac actio ions October FY21 FY21

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CHESS replacement post COVID-19 consultation

We are in the process of incorporating industry feedback into the post COVID replan

COVID-19 adjusted draft plan considerations

• WFH, travel and collaboration challenges
• More time for users and ASX to complete build
• Functionality changes resulting from user working groups

CHESS user consultation feedback

• Increased Day 1 scope to enable digitisation and STP
• Increased Day 1 ‘bursting’ capacity reflecting March volumes
• Increased industry testing to de-risk cutover
• Consideration of some key users preferring more time
• Consideration of other industry infrastructure upgrades eg. SWIFT

Updated plan

• Incorporating consultation feedback
• Increased scope, capacity and testing will extend the project
• Announcement of updated plan late October 2020

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New 5-year bond futures contract

Expanding our customer value proposition through new products

Developing products that create opportunities for customers

S&P/ASX All Technology Index (XTX)

• /n

1 2 3 4 5 6 7 8 9 10 15 20 25 30

Years ASX 90-day interbank cash futures ASX 30-day interbank cash rate futures ASX 3-year bond futures ASX 10-year bond futures ASX 20-year bond futures

ASX SX 5-year ar bo bond d futur utures

Health Care Technology Internet and Direct Marketing Consumer Electronics Interactive Media and Services Information Technology SEC ECTORS R REP EPRES ESEN ENTED ED

$140 40b+

28 28

Listed tech ‘unicorns’* Market capitalisation*

*As at 3 September 2020, S&P quarterly rebalance date

Over- night

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ASX’s technology infrastructure enables innovation

Leveraging the power of collaborative technology

ENC NCOURAGING ING INNO INNOVATIO ION STA TATUS

DataSphere

Making ASX and third party financial data easier for customers to analyse and monetise

• Workspaces and datasets available via web portal
• Prototypes in development with customers
• Progressing third party data partnerships

Sympli

Offering more intuitive, efficient and cost-competitive solution Providing industry resilience and choice

• Expect to be connected to four major banks by end of FY21
• Interoperability to be in place by the end of 2021

DLT Solutions

Enabling development of digitised multi- party workflow solutions through the distribution of source-of-truth data

• Third parties building applications to run on ASX’s

distributed ledger infrastructure

• Launching sandbox environment for third parties to

develop, test and demonstrate DAML applications

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Outlook remains uncertain

Diversified business navigating mixed short-term environment

Trading conditions continue to reflect a range of factors

• Cash equities continue to experience elevated volumes and volatility
• Derivatives ‒ 30-day interbank, 90-day bank bills and 3-year bond futures volumes impacted by RBA

yield curve control; commodities, equity futures and longer dated bond futures volumes unaffected

• Austraclear holdings and transactions benefiting from Australian Government issuance
• Low interest rate environment will reduce net interest income
• IPOs impacted by ongoing market volatility, while secondary capital raisings expected to remain buoyant

CEO’s Address Dominic Stevens

Formal Business

Agenda Item 1 ASX Financial Report

Agenda Item 2 Securities Exchanges Guarantee Corporation Financial Report

Agenda Item 3 Election of Directors

Agenda Item 3(a) Re-election of Damian Roche

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Agenda Item 3(a)

Re-election of Damian Roche – Proxy and Direct Votes (combined)

Fo For Op Open Again inst st 118,833,712 1,384,886 72,894 98.79% 1.15% 0.06%

Agenda Item 3(b) Election of Rob Woods

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Agenda Item 3(b)

Election of Rob Woods – Proxy and Direct Votes (combined)

Fo For Op Open Again inst st 118,827,082 1,225,582 236,592 98.78% 1.02% 0.20%

Agenda Item 4 Remuneration Report

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Agenda Item 4

Remuneration Report – Proxy and Direct Votes Combined

Fo For Op Open Again inst st 114,988,164 1,294,113 3,646,183 95.88% 1.08% 3.04%

Agenda Item 5 Grant of performance rights to the Managing Director and CEO

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Agenda Item 5

Grant of performance rights to CEO – Proxy and Direct Votes (combined)

Fo For Op Open Again inst st 117,616,997 1,372,381 1,252,296 97.82% 1.14% 1.04%

Other Business

AGM closed. Thank you

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