Moscow Exchange MICEX RTS : 2Q 2023 Earnings presentation

2Q 2023 Earnings Presentation

23 August 2023

Delivery on strategic initiatives in 2Q 2023 and beyond

- New Products -

• CarMoney, a fintech microfinance company, had its IPO on MOEX and raised a total of RUB 600 mln.
• Two new futures contracts on commodities and four on Russian equities were introduced on the Derivatives Market.
• Cash-settledEuropean-type premium options on USD-RUB,EUR-RUB and CNY-RUB were launched on the Derivatives Market.
• FX interest rate swap contracts in CNY with maturities of up to five years are now available on MOEX, expanding hedging oppor tunities for clients.

- New services -

• MOEX presented Trade Radar - an information and trading terminal which allows to provide indicative prices and negotiate OTC transactions in secure chats.
• MOEX obtained two licences to do business with digital financial assets (DFAs): (1) exchange operator #1 in Russia, (2) information system operator.
• A discrete auction mechanism now applies to all equities and DRs traded on MOEX, allowing the smoothing of price fluctuations.
• Russia's first warehouse real estate index was introduced, enabling further development of derivatives and other associated i nstruments.
• Equities and Bond Markets are now operating in T+1 mode, in sync with other MOEX Markets in terms of settlement periods.

- New clients & partners -

• MOEX became a partner of the Zorko investment platform, which allows access to pre-IPO financing.
• The total number of retail clients registered on the Securities Market approached 26.4 mln 1. The number of registered IIAs amounted to 5.6 mln1.
• In 2Q 2023, 84 corporates - including 8 newcomers - placed 152 bond issues, raising a total of RUB 880 bln.

Source: Moscow Exchange.	2
1.	As of the end of July.

2Q 2023 summary of financials

Fee & commission income

RUB bln

			+48.1%			+19.8%
						11.9
		8.9	9.9	10.0
8.1
2Q 2022	3Q 2022	4Q 2022	1Q 2023	2Q 2023

EBITDA

RUB bln

+43.6%-14.3%

15.3	19.1	16.3

11.4 11.9

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

Reported EBITDA = PBT + D&A

Operating expenses (excluding other operating expenses)

RUB bln

										+1.7%									+8.9%
					6.0				5.9
	5.8	5.4	5.4
		1.4							1.4								1.4
		2.9		1.0	2.9		3.1	1.1			2.7	2.9
		1.6					1.5			1.5		1.6						1.6
		2Q 2022		3Q 2022		4Q 2022	1Q 2023		2Q 2023
								Remaining administrative expenses1						D&A and IT maintenance
	Net income			Personnel expenses
	RUB bln
										+46.2%									-15.5%
													14.3	12.1
										11.2

8.38.7

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

Reported net income

Source: Moscow Exchange.

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

3

Diversified fee and commission income

Fee & commission income performance		Fee & commission income breakdown
RUB bln		RUB bln

	2Q 2022	2Q 2023	Change	Change
	YoY, bln	YoY, %
Money Market	2.25	2.77	+0.52	+23.2%
Depository & Settlement	1.75	2.30	+0.55	+31.5%
FX Market	1.16	1.62	+0.46	+39.8%
Equities Market	0.47	1.62	+1.15	+246.6%
Derivatives Market	0.56	1.46	+0.91	+163.6%
ITSLOFI1	1.64	1.45	-0.18	-11.3%
Fixed Income Market	0.24	0.71	+0.47	+191.8%
Total F&C income	8.06	11.93	+3.88	+48.1%

+48.1%

8.06

3%

20%

7%

6%

14%

22%

28%

11.93

6%	Fixed Income Market
12%	ITSLOFI
12%	Derivatives Market
14%	Equities Market1
14%	FX Market
19%	Depository & Settlement
23%	Money Market

2Q 2022

2Q 2023

Source: Moscow Exchange.	4
1. ITSLOFI stands for IT Services, Listing and Other Fee Income. The line includes Information services, Sale of software and technical services, Listing and other service fees, Financial marketplace services and Other fee income.

Operating expenses in 2Q'23 (excluding provisions)

Major expense items

comments

RUB mln

		2Q 2022	2Q 2023	Change
		YoY
Personnel expenses	2,873.4	2,902.4	1.0%
D&A and IT maintenance	1,556.1	1,606.6	3.2%
Remaining administrative	1,375.5	1,397.5	1.6%
expenses,1 incl.:
•	Advertising and marketing costs	451.4	300.7	-33.4%
•	Market makers fees	71.3	173.6	143.5%
Total OPEX	5,805.0	5,906.5	1.7%

• OPEX for 2Q'23 increased by 1.7% YoY. 1H'23 OPEX was down 8.7% YoY.

• Personnel expenses were up 1.0% YoY and 7.0% QoQ. The latter is due to

the low base effect: 1Q'23 figure included some unwinding of extra bonus

provisions accumulated during FY 2022.

• The employee headcount was up 1.2% YoY.

• Advertising and marketing costs decreased 33.4% YoY but surged 2.4x

QoQ. The quarterly change is explained by Finuslugi-related spending.

• Market makers' fees expanded 2.4x YoY as trading activity recovered

across markets.

• Taxes other than income tax declined by 40.2% YoY following a reduction in

Headcount, number of employees EOP

	+1.2%	+1.1%
2,377	2,394	2,339	2,379	2,405

Operating expenses

RUB mln

+1.7%+8.9%

5,805	5,389	6,046	5,424	5,907
51%	46%	48%	50%	51%
49%	54%	52%	50%	49%

taxable (VAT) spend on marketing and IT maintenance.

• D&A and IT maintenance grew 3.2% YoY, and the D&A alone was up 14.2%

YoY on the back of higher CAPEX for 4Q'22. IT maintenance costs

decreased 21.3% YoY as foreign vendors discontinued their services. The

13.2% QoQ increase in IT maintenance costs is due to the gradual

implementation of the software & hardware renewal program.

• 2Q'23 CAPEX was RUB 0.92 bln. 1H'23 CAPEX amounted to RUB 1.49 bln

The FY'23 CAPEX guidance stays intact at RUB 4 - 6 bln. Actual spend will

depend on the implementation of the software & hardware renewal

program.

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

General and administrative expenses

Personnel expenses

• Updated FY'23 OPEX growth guidance is 6 - 10% YoY.

5

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