2Q 2022 Earnings Presentation

19 August 2022

Delivery on strategic initiatives in 2Q 2022 and beyond

- New Products -

  • RUSAL pioneered issuing CNY-denominated bonds on MOEX and met clients' demand to diversify FX exposure.
  • MOEX introduced new cash-settled futures and options on soft commodities.
  • Armenian dram as well as South African rand FX pairs are now available on the FX Market.
  • CNY-RUBoptions as well as futures-style options in the Moscow Real Estate DomClick Index were introduced on the Derivatives Market.
  • Perpetual futures on several base currencies were launched on the Derivatives Market.

- New services -

  • Non-residentsfrom 'friendly'1 jurisdictions are now able to trade on MOEX's Fixed Income and Derivatives Markets.
  • MOEX published its 2021 Sustainability Report, which complies with GRI and SASB, as confirmed by an independent assurance pro vider.
  • MOEX resumed evening trading session on the Derivatives Market.
  • Market participants now have simultaneous access to both repo and deposit markets. This broadens the range of available liqui dity management solutions.
  • New asymmetric tariff structure that favors liquidity makers was implemented on the FX and Derivatives Markets.

- New clients & partners -

  • The total number of retail clients registered on the Securities Market exceeded 20.8 mln 2. The number of registered IIAs reached 5.6 mln2.
  • The Primary Bond Market started to recover. In 2Q 2022, 31 corporates - including 4 newcomers - placed 44 bond issues, raising a total of RUB 172 bln.
  • MOEX Treasury, a one-stop access platform for corporate clients, saw its 1H22 serviced volumes double YoY. 85 corporates are now connected to MOEX Treasury.
  • MOEX created the Investors' Protection Club together with market participants, aiming to protect investors' rights under chan ging circumstances.
  • MOEX acquired a minority stake in the crowdfunding investment platform Potok, expanding financing opportunities for SMEs.

Source: Moscow Exchange.

2

1.

Defined as other than 'unfriendly' jurisdictions under Government Directive No. 430-r of 5 March 2022

2. As of the end of July

2Q 2022 summary of financials

Fee & commission income

Operating expenses (excl. other operating expenses)

RUB bln

RUB bln

-18.8%

-24.3%

9.9

10.4

12.0

10.6

8.1

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

EBITDA

RUB bln

+17.7%

+3.0%

9.7

9.3

10.3

11.1

11.4

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

Reported EBITDA = PBT + D&A

+17.4%

-12.1%

6.1

6.6

5.8

4.9

5.0

1.9

1.9

1.4

1.1

1.2

2.4

2.4

2.7

3.1

2.9

1.4

1.4

1.5

1.6

1.6

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

Remaining administrative expenses1

D&A and IT maintenance

Net income

Personnel expenses

RUB bln

+19.0%

+2.3%

8.3

7.6

8.1

7.0

6.7

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

Reported net income

Source: Moscow Exchange.

1. Includes remaining administrative expenses, calculated as general and administrative expenses less D&A and equipment and intangible assets maintenance.

3

Diversified fee and commission income

Fee & commission income performance

Fee & commission income breakdown

RUB bln

RUB bln

2Q 2021

2Q 2022

Change

Change

YoY, bln

YoY, %

Money Market

2.89

2.25

-0.65

-22.4%

FX Market

1.02

1.16

+0.14

+13.6%

ITSLM 1

0.88

0.83

-0.05

-5.8%

Derivatives Market

1.09

0.56

-0.54

-49.1%

Equities Market

1.20

0.47

-0.73

-61.1%

Fixed Income Market

0.66

0.24

-0.42

-63.2%

Other business lines

2.18

2.56

+0.38

+17.3%

Total F&C income

9.93

8.06

-1.87

-18.8%

-18.8%

9.93

22%

7%

12%

11%

9%

10%

29%

8.06

32%

Other business lines

Fixed Income Market

3%

6%

Equities Market

7%

Derivatives Market1

10%

ITSLM

14%

FX Market

28%

Money Market

2Q 2021

2Q 2022

Source: Moscow Exchange.

4

1. ITSLM stands for IT Services, Listing and Marketplace Fee Income. The line includes information services, sale of software and technical services, listing and other service fees and financial marketplace services.

Operating expenses in 2Q'22 (excl. provisions)

Major expense items

comments

RUB mln

2Q 2021

2Q 2022

Change

YoY

Personnel expenses

2,421.7

2,873.4

18.7%

D&A and IT maintenance

1,378.0

1,556.1

12.9%

Remaining administrative

1,144.1

1,375.5

20.2%

expenses,1 incl.:

•

Advertising and marketing costs

139.8

451.4

222.9%

•

Market makers' fees

193.0

71.3

-63.1%

Total OPEX

4,943.8

5,805.0

17.4%

Headcount, number of employees EOP

Operating expenses

RUB mln

  • OPEX for 2Q'22 added 17.4% YoY. The non-organic contribution from Inguru
    (consolidated in May'21) & NTPro (consolidated in Oct'21) was 2.5 p.p. The total contribution from the Marketplace incl. Inguru was 10.3 p.p. Therefore, core business OPEX increased by 7.1% YoY.
  • MOEX was winding down marketing spend QoQ as the Finuslugi promo campaign approached completion. Net of marketing expenses, the largest expense growth factor, OPEX added 11.4% YoY - below the CPI.
  • A rise in personnel expenses of 18.7% YoY was largely driven by a 16.2% increase in headcount.
  • Headcount growth of 16.2% YoY breaks down into: [1] 3.0 p.p. NTPro acquisition, [2] 1.5 p.p. outsourced IT personnel brought in-house, [3] 1.2 p.p. Inguru acquisition, [4] 10.5 p.p. other hires, mainly for Finuslugi.

+16.2%

-0.2%

+17.4%

-12.1%

2,146

2,279

2,381

2,377

6,096

6,603

5,805

2,045

4,944

4,951

54%

56%

51%

51%

52%

  • Market makers' fees contracted on the back of a decline in trading volumes.
  • D&A and IT maintenance added 12.9% YoY on the back of 18.0% growth in
    D&A. The latter is explained by higher CAPEX of 4Q'21.

49%

48%

44%

46%

49%

•

2Q'22 CAPEX was RUB 0.88 bln. 1H'22 CAPEX amounted to RUB 1.98 bln.

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

•

FY'22 OPEX growth expectation is at or below 20% YoY.

General and administrative expenses

•

FY'22 CAPEX guidance: RUB 4.0-5.0 bln.

Personnel expenses

5

1. Remaining administrative expenses are calculated as general and administrative expenses less depreciation of property and equipment, amortization of intangible assets, equipment and intangible assets maintenance.

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OJSC Moscow Exchange MICEX-RTS published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 12:53:04 UTC.