For personal use only Australian Securities and Investments - PDF document

22 May 2019 For personal use only Australian Securities and Investments Commission ASX Market Announcements Office Mr Nathan Bourne ASX Limited Senior Executive Leader, Market Infrastructure 20 Bridge Street Level 5, 100 Market Street SYDNEY NSW 2000 SYDNEY NSW 2000 2019 STOCKBROKERS AND FINANCIAL ADVISERS CONFERENCE PRESENTATION Attached is the presentation that ASX Managing Director and CEO Dominic Stevens will deliver today at the Stockbrokers and Financial Advisers Conference in Sydney. Daniel Csillag Company Secretary Further enquiries: Media Analysts/Investor Relations Matthew Gibbs Josie Ashton General Manager, Media and Communications Head of Investor Relations T +61 2 9227 0218 T +61 2 9227 0646 M 0411 121 219 M 0416 205 234 matthew.gibbs@asx.com.au E E josie.ashton@asx.com.au 20 Bridge Street Sydney NSW 2000 PO Box H224 Customer service 13 12 79 ASX Limited ABN 98 008 624 691 Australia Square NSW 1215 asx.com.au

For personal use only Stockbrokers and Financial Advisers Conference 2019 Delivering new customer opportunities with digital, data and DLT Dominic Stevens, CEO 22 May 2019

Agenda For personal use only DLT Data Digital CHESS replacement ASX DataSphere asx.com.au Open infrastructure solutions - Create new products and services - Improve operational efficiency - Reduce risks and costs

History of delivering industry efficiency and innovation Enhancing ASX’s core customer proposition through world-leading innovation For personal use only The evolution of trading and data services ALC Chalk Electronic Co-location for low Data centre Cross-connections Global connectivity boards trading latency connections services across industry The evolution of equities clearing and settlement ETFs mFund T+10  Share Electronic Expanded into DLT-based T+3 T+2 certificates T+5 messaging new products CHESS

Updated clearing and settlement system New functions and optionality for the 2020s and beyond For personal use only CHESS replacement Replace aged COBOL system Open source software language Global ISO standard All existing functionality Plus 35 new specifications – for the market by the market Choice of connectivity Access real-time, synchronised, source-of-truth data

Updated clearing and settlement system New functions and optionality for the 2020s and beyond For personal use only Customer CHESS Development Environment replacement Now open Design, build and test Replace aged COBOL system system changes Open source software language Assess new functionality First of 7 software drops Global ISO standard New functionality All existing functionality every ~8 weeks Plus 35 new specifications – Compare access options for the market by the market Full functionality and Choice of connectivity industry-wide testing mid-2020 Access real-time, synchronised, source-of-truth data

Updated clearing and settlement system New functions and optionality for the 2020s and beyond For personal use only Customer CHESS CHESS Development Environment replacement replacement Now open  Will offer message-based Design, build and test Replace aged COBOL system connections system changes  Open source software language Will replace current Assess new functionality functionality and add more First of 7 software drops Global ISO standard  Will not change rules to New functionality All existing functionality every ~8 weeks require new information  Plus 35 new specifications – Compare access options Will not increase cost of for the market by the market like-for-like services Full functionality and Choice of connectivity industry-wide testing mid-2020 Access real-time, synchronised, source-of-truth data

Updated clearing and settlement system New functions and optionality for the 2020s and beyond For personal use only Customer CHESS CHESS Development Environment replacement replacement Now open  Will offer message-based Replace aged COBOL system connections  Open source software language Will replace current functionality and add more Global ISO standard  Will not change rules to All existing functionality require new information  Plus 35 new specifications – Will not increase cost of for the market by the market like-for-like services Choice of connectivity On track for DLT-based  Access real-time, synchronised, Option to access real-time, go-live source-of-truth data synchronised, permissioned, March-April 2021 source-of-truth data

Delivering contemporary, open infrastructure Provide more value-added products and services to customers For personal use only Contemporary technology Stronger foundations ALC Net Secondary ASX upgrade Data Centre DataSphere Improved infrastructure AI efficiency New opportunities 8 |

Open infrastructure solutions to benefit customers For personal use only Customer challenge Customer benefits ASX solution Australian Liquidity Centre Industry Data centre investment Competitive services Tier-3 data centre connectivity Data management & expense Community connectivity ASX DataSphere Curate and standardise Open ecosystem platform Improved data generating product development Big data science capability Technology, governance, Data analytics datasets and analytical tools Governed data platform without Commercialise and distribute upfront investment costs Product distribution DLT Solutions Cost and inefficiency Enterprise-grade technology Productivity benefits Post-trade infrastructure Multiple reconciliations New revenue opportunities Smart contract software infrastructure Data inaccuracies Perfect information, and cost Safe and secure delivery of and time savings Bespoke solutions real-time, synchronised Efficient workflows source-of-truth data New products and services

Opportunity to unlock value and reduce costs DLT solution For personal use only ~$50m Cost of ASX fees to settle ALL of the equities traded in Australia $22.4bn Australia’s superannuation industry fee revenue* ? Value unlocked by permissioned, synchronised, real-time, source-of-truth information? *Rainmaker Consulting May 2017 report for the 2016 year

Improving the digital experience Redesigning and modernising the ASX website For personal use only More ways to connect New data analytics and insights New pricing and issuer pages

New products and services to capture opportunity Meet increasing demand and changing investor appetites For personal use only 10,000 Partnering with local and 9,000 Currently around $2.7tr global fund managers growing to $9.4tr in 2035 8,000 Quality products and trusted 7,000 advice 6,000 Diversification across asset classes, sectors and $bn 5,000 geographies 4,000 Liquidity and transparency 3,000 Compulsory Capital growth and income super 2,000 introduced 1,000 0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 Source: ABS, Deloitte Actuaries and Consultants

Strong growth in ASX investment products mFund growth continues with 43% increase in FUM over past year For personal use only LICs and LITs Exchange traded products mFund $43 b market cap (FUM) 113 market cap (FUM) 243 $48 b $899 m market cap (FUM) 222 Funds Funds Funds 120 50 50 900 240 220 45 45 110 800 200 Market capitalisation, billions Market capitalisation, billions Market capitalisation, millions 40 40 700 100 180 Number LICs/LITs Number ETPs Number mFunds 190 35 35 600 160 90 30 30 500 140 80 25 25 140 400 120 20 20 70 300 100 15 15 60 90 200 80 10 10 50 60 100 5 5 40 0 40 0 40 0 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Source: ASX Investment Products Monthly Update – Apr 19

Choice through sectoral and geographic diversity ASX’s international listings strategy For personal use only 3 56 46 20 17 11 11 New Zealand United States Israel Singapore Malaysia Canada Ireland Total Foreign Listings 280+ Source: ASX Data, May 2019

Expanding and diversified listings franchise Tech listings have provided attractive returns to investors For personal use only S&P/ASX 200 vs S&P/ASX 300 Info Tech index 300 $9.27bn $7.29bn $6.85bn 250 200 150 $4.98bn $4.22bn $3.93bn 100 50 0 $2.68bn $2.54bn $2.28bn S&P/ASX 200 S&P/ASX 300 Information Technology Index $2.17bn $1.97bn $1.17bn Source: Bloomberg, 17 May 2019. Indexed to 100 rebased from January 2009.