ASX : Letter to Shareholders - ASX Interim Dividend

25 March 2020
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

DIVIDEND LETTER

Attached is a letter to shareholders from the Chairman and the Managing Director and CEO regarding ASX's FY20 interim dividend and half-year financial results.

Release of market announcement authorised by:

ASX Continuous Disclosure Committee

Further enquiries:
Media	Analysts/Investor Relations
Matthew Gibbs	Josie Ashton
General Manager, Media and Communications	Head of Investor Relations
T	[phone]	T	[phone]
M	0411 121 219	M	0416 205 234
E	[e-mail]	E	[e-mail]

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

ASX Limited ABN 98 008 624 691

Letter to Shareholders

Half-Year 2020

25 March 2020

Dear ASX shareholder

On 13 February 2020, ASX announced a solid result for the first half of the 2020 financial year, as our diversified business continued to deliver reliable earnings while progressing our strategy and strengthening our foundations.

Operational earnings before interest and tax rose 6% to $315.1 million - a rise of $17.7 million - and statutory net profit after tax grew by 1.8% to $250.4 million - up $4.3 million - compared to the same period last year (pcp).

We are investing in the long-term sustainability of our business by strengthening our technology, risk and governance foundations, and upgrading our operating and service capabilities to support future growth.

Financial highlights

Variance

1H20(pcp)

Revenue increased by 7.1% to $454.9 million, reflecting growth	Operating	$454.9 million	↑$30.2m
revenue	↑7.1%
from strong market activity and our core businesses. This oper-
ational growth was offset by a decline in interest and dividend				Total expenses
income, due mainly to the lower interest rate environment and		↑$12.5m
(includes	$139.8 million
sale of our stake in IRESS, which enabled the payment of a special	↑9.8%
depreciation)
dividend in September 2019.
Overall, ASX delivered increased returns to shareholders, with	EBIT	$315.1 million	↑$17.7m
our interim dividend rising 1.7% to 116.4 cents per share - the	↑6.0%
seventh consecutive first half increase in dividends, which will
be paid today.			Interest and	$44.1 million	↓$10.8m
%	dividend income	↓19.7%

The key performance drivers of the results were:

•• 9% rise in the number of daily average futures contracts traded, particularly in 30-day futures

•• 8% increase in cash market trading, with daily average value across the period of $4.9 billion

•• Demand for more technical and information services within the expanding ecosystem of our Australian Liquidity Centre.

ASX's total expenses rose 9.8%, due mainly to the annualisation of employing more people last year, while guidance on capital expenditure is unchanged at approximately $75-$80 million for the full-year.

Net profit	$250.4 million	↑$4.3m
after tax	↑1.8%
Earnings per	129.3 cents	↑2.2 cents
share	↑1.7%
Interim dividend	116.4 cents	↑2.0 cents
per share	↑1.7%

ASX Limited ABN 98 008 624 691

Technology driven and customer focused

ASX has a long history of being at the forefront of the global exchange industry in the adoption of technology for the benefit of customers, investors and regulators. We added to that history during the first half of the financial year.

Our project to replace CHESS with a solution powered by distributed ledger technology is moving forward and our Sympli joint venture completed its first four-partye-settlement property transaction in December 2019. Just after results, ASX launched the S&P/ASX All Technology Index. The new index will enhance the profile and understanding of the tech sector in Australia, and increase opportunities for investors.

During the period we finalised a major package of refreshed listing rules and guidance, which help improve company disclosures to the market, make the rules easier to understand and comply with, and enable ASX to better monitor and enforce compliance. ASX is committed to market quality and to ensure the rules and processes keep evolving to serve the interests of issuers, investors and the Australian economy.

ASX is building an exchange for the future - an exchange that provides resilient and trusted market infrastructure and services, while also pursuing new opportunities that harness our experi- ence, expertise and technology. This will deliver opportunities for innovation and for cost and risk reduction for our customers and across the Australian economy.

•• Complete half-year 2020 results materials are available on the ASX shareholder page of the ASX website: www2.asx.com.au/about/asx-shareholders

•• Any questions you would like to ask ASX can be emailed to: [e-mail]

Thank you for your support.

Yours sincerely

"Our diversified business continued to deliver reliable earnings while progressing our strategy and strengthening our foundations."

Since the end of the half-year, ASX - like the rest of the world

• has been managing the impact of COVID-19 or coronavirus. For news and information on the action we've taken to protect the wellbeing of our people and maintain the orderliness of the markets we operate, please see the ASX website here: www2.asx.com.au/about/media-centre/asx-action-on-covid-19

Rick Holliday-Smith	Dominic Stevens
Chairman	Managing Director and
	Chief Executive Officer