Singapore Exchange : First Half FY2025 Results SGX Group Financial Results

Financial Results

For the Half Year Ended

31 December 2024

Singapore Exchange Limited

Incorporated in the Republic of Singapore

Company Registration Number: 199904940D

SINGAPORE EXCHANGE LIMITED

Financial Results for the Half Year Ended 31 December 2024

Section	Content	Page
1.	Performance Summary	2
2.	Income Statement - Group	8
3.	Statement of Comprehensive Income - Group	9
4.	Detailed Notes on Revenue - Group	10
5.	Detailed Notes on Expenses - Group	11
6.	Earnings Per Share - Group	11
7.	Adjusted Financial Measures - Group	12
8.	Statement of Financial Position - Group	13
9.	Net Asset Value - Group	14
10.	Borrowings and Debt Securities - Group	14
11.	Statement of Cash Flows - Group	15
12.	Statement of Changes in Equity - Group	16
13.	Segment Information - Group	17
14.	Statement of Financial Position - Company	18
15.	Net Asset Value - Company	18
16.	Statement of Changes in Equity - Company	19
17.	Bank Facilities, Contingent Liabilities and Commitments - Group	20
18.	Dividend - Company	20
19.	Share Capital - Company	20
20.	Accounting Policies - Group	21
21.	Other Listing Manual Requirements	24

The financial results set out in Sections 2 to 6, 8, 10 to 14, 16, 18 to 20 of this announcement have been extracted from the interim financial statements that have been prepared in accordance with Singapore Financial Reporting Standard (International) 1-34 Interim Financial Reporting. The interim financial statements and independent auditors' review report on the interim financial statements of the Company and its subsidiaries for the half year ended 31 December 2024 are attached to this announcement.

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1. Performance Summary

Financial Overview

	1H FY2025	1H FY2025 Adjusted*
Operating revenue less transaction-based	$646.4 million, up 15.6%
expenses (net revenue)
EBITDA	$425.3 million, up 23.4%	$426.9 million, up 23.9%
Net profit attributable to equity holders of the	$340.0 million, up 20.7%	$320.1 million, up 27.3%
company (NPAT)
Earnings per share (EPS)	31.8 cents	29.9 cents
Interim quarterly dividend per share	9.0 cents, up 0.5 cents

*Adjusted EBITDA, NPAT and EPS exclude certain non-cash and non-recurring items that have less bearing on SGX's operating performance. Hence, they better reflect the group's underlying performance. Adjusted figures are non-SFRS(I) measures. Please refer to Section 7 of our financial results for reconciliations between the adjusted and their equivalent measures.

All figures are for 1H FY2025 except for figures in brackets, which are for 1H FY2024 unless otherwise stated. Figures may be subject to rounding.

SGX recorded EBITDA of $425.3 million ($334.6 million) and net profit attributable to SGX of $340.0 million ($281.6 million) in 1H FY2025. Earnings per share was 31.8 cents (26.3 cents). Adjusted EBITDA was $426.9 million ($344.6 million) and adjusted profit after tax was $320.1 million ($251.4 million). Adjusted earnings per share was 29.9 cents (23.5 cents).

The Board of Directors has declared an interim quarterly dividend of 9.0 cents (8.5 cents) per share, payable on 21 February 2025. This brings total dividends in 1H FY2025 to 18.0 cents (17.0 cents) per share.

Business and Expenses Overview

The presentation of revenue and expenses has been revised in FY2025 such that transaction-based expenses1 are netted- off against operating revenue to show net revenue. 1H FY2024 financials have been revised for a like-for-like comparison2.

Operating revenue increased $90.0 million or 15.2% to $682.2 million ($592.2 million). After netting-off transaction-based expenses, net revenue3 increased $87.4 million or 15.6% to $646.4 million ($558.9 million), with growth in all business segments.

Excluding treasury income, net revenue increased 17.5% to $578.0 million ($492.0 million).

Fixed Income, Currencies and Commodities (FICC)

FICC net revenue increased $18.8 million or 13.4% to $159.1 million ($140.3 million) and accounted for 24.6% (25.1%) of total net revenue.

• Transaction-basedexpenses primarily include processing and royalties.

• Please refer to Section 20(b) of our financial results for further disclosure on the revision of comparative information in the income

statement and segment information.

• Includes associated treasury income. Treasury income increased $1.4 million.

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FICC - Fixed Income

Fixed Income net revenue4 increased $0.9 million or 22.8% to $4.8 million ($3.9 million).

• Listing revenue: $3.2 million, up 24.6% from $2.5 million
• Corporate actions and other revenue: $1.6 million, up 17.7% from $1.4 million

There were 395 bond listings raising $145.6 billion, compared to 489 bond listings raising $131.7 billion a year earlier.

FICC - Currencies and Commodities

Currencies and Commodities net revenue increased $17.9 million or 13.1% to $154.3 million ($136.4 million).

• Trading and clearing revenue: $136.7 million, up 22.9% from $111.3 million
• Treasury and other revenue: $31.4 million, down 14.4% from $36.7 million
• Transaction-basedexpenses: $13.8 million, up 19.4% from $11.6 million

The increase in trading and clearing revenue was mainly from higher volumes in OTC FX, currency derivatives, and commodity derivatives.

OTC FX net revenue increased 35.7% to $55.0 million ($40.5 million). OTC FX headline average daily volume (ADV) increased 35.4% to US$136 billion (US$100 billion).

Currency derivatives volumes increased 43.2% to 33.0 million contracts (23.0 million contracts), mainly due to higher volumes in INR/USD and USD/CNH FX futures contracts.

Commodity derivatives volumes increased 14.5% to 32.9 million contracts (28.7 million contracts), mainly due to higher volumes in iron ore derivatives.

The increase in volumes drove the increase in transaction-based expenses.

Table 1: Exchange-traded Currencies and Commodities Volumes ('000)

	1H FY2025	1H FY2024	Change
Currency derivatives	32,974	23,026	43.2%
Iron ore derivatives	29,127	25,390	14.7%
Rubber derivatives	2,091	1,517	37.8%
Freight derivatives	1,066	1,286	-17.1%
Others	1,066	808	31.9%
Total	66,324	52,028	27.5%

Equities - Cash

Equities - Cash net revenue increased $35.1 million or 22.3% to $192.6 million ($157.5 million) and accounted for 29.8% (28.2%) of total net revenue.

• Listing revenue: $12.7 million, down 12.6% from $14.6 million
• Trading and clearing revenue: $107.6 million, up 39.4% from $77.2 million
• Securities settlement, depository management, corporate actions and other revenue: $74.2 million, up 9.4% from $67.9 million
• Transaction-basedexpenses: $1.9 million, down 9.0% from $2.1 million

We recorded 5 (4) new equity listings which raised $19.7 million ($19.0 million). Secondary equity funds raised were $3.1 billion ($0.6 billion).

• Operating and net revenue for Fixed Income were comparable as transaction-based expenses were immaterial.

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Securities daily average traded value (SDAV) increased 31.2% to $1.3 billion ($1.0 billion) and total securities traded value increased 34.4% to $162.8 billion ($121.2 billion). This was made up of Cash Equities5, where traded value increased by 35.3% to $156.9 billion ($116.0 billion), and Other Products6, where traded value increased 12.8% to $5.9 billion ($5.2 billion). There were 129 (126) trading days in the first half of FY2025.

Overall average net clearing fees7 increased 5.0% to 2.57 basis points (bps) (2.45 bps). Turnover velocity (primary-listed) was 40% (34%).

The higher volumes in settlement instructions drove the increase in securities settlement, depository management, corporate actions and other revenue.

The decrease in transaction-based expenses was mainly due to lower incentives.

Table 2: Key Metrics for Cash Equities Market

		1H FY2025	1H FY2024	Change
Total traded value ($ billion)	162.8	121.2	34.4%
Period-end total market capitalization ($ billion)	866	802	7.9%
ƒ	Primary-listed	709	634	11.9%
ƒ	Secondary-listed	157	169	-7.0%
Turnover velocity (primary-listed)	40%	34%	18.8%
Total traded volume (in billion)	155.1	158.1	-1.9%

Equities - Derivatives

Equities - Derivatives net revenue increased by $31.5 million or 21.6% to $177.4 million ($145.9 million) and accounted for 27.4% (26.1%) of total net revenue.

• Trading and clearing revenue: $146.3 million, up 18.8% from $123.2 million
• Treasury and other revenue: $46.2 million, up 23.1% from $37.5 million
• Transaction-basedexpenses: $15.1 million, up 2.2% from $14.8 million

The increase in trading and clearing revenue was mainly driven by a 17.4% increase in total equity derivatives volumes. Higher volumes of FTSE China A50, GIFT Nifty 50, MSCI Singapore and FTSE Taiwan index futures contracts were partially offset by lower volumes of Nikkei 225 index futures contracts.

The increase in volumes drove the increase in transaction-based expenses.

Table 3: Equity Derivatives Volumes ('000)
	1H FY2025	1H FY2024	Change
FTSE China A50 index futures	57,580	44,444	29.6%
GIFT Nifty 50 index futures and options	10,348	8,814	17.4%
FTSE Taiwan index futures	8,757	8,658	1.1%
MSCI Singapore index futures	7,141	6,878	3.8%
Japan Nikkei 225 index futures and options	5,440	6,780	-19.8%
Single Stock futures	1,120	1,211	-7.5%
FTSE China H50 index futures	482	267	80.2%
FTSE Net Total Return index futures	39	322	-87.8%
Others8	307	333	-7.7%
Total	91,214	77,707	17.4%

• Cash Equities include ordinary shares, real-estate investment trusts and business trusts.

• Other Products include structured warrants, exchange-traded funds, daily leverage certificates, debt securities and American

depository receipts.

• Computed based on net revenue.

• Others comprise mainly FTSE Indonesia and FTSE Vietnam 30 index futures contracts.

Page 4 of 24

Average Net Fees9

Average net fee per contract for Equity, Currency and Commodity derivatives was comparable at $1.30 ($1.31).

Platform and Others

Platform and Others net revenue increased $2.0 million or 1.7% to $117.3 million ($115.3 million) and accounted for 18.1% (20.6%) of total net revenue.

• Market data revenue: $25.1 million, up 3.8% from $24.2 million
• Connectivity revenue: $41.8 million, up 8.7% from $38.5 million
• Indices and other revenue: $55.3 million, down 3.7% from $57.4 million
• Transaction-basedexpenses: $5.0 million, up 4.3% from $4.8 million

The increase in connectivity revenue was mainly due to higher co-location sales and repricing.

The decrease in indices and other revenue was mainly due to lower revenue contribution from Scientific Beta.

Expenses Overview 10

Total expenses comparable at $263.1 million ($262.8 million). Higher variable staff costs were mainly offset by lower depreciation and amortisation and fixed staff costs.

• Variable staff costs increased $12.0 million or 27.7% to $55.1 million ($43.2 million) mainly due to higher bonus provision, in line with higher profits.
• Depreciation and amortisation decreased $6.4 million or 13.3% to $42.0 million ($48.5 million) mainly due to lower amortisation of purchased intangible assets of Scientific Beta, and lower depreciation of technology assets following the cessation of SGX-BT operations.
• Fixed staff costs decreased $3.2 million or 3.3% to $93.8 million ($97.0 million). Average headcount for first half was 1,140 (1,175).
• Technology expenses comparable at $44.4 million ($44.2 million).
• Other expenses11 decreased $2.3 million or 7.7% to $27.7 million ($30.0 million) mainly due to lower impairment of trade receivables and lower marketing and travelling expenses.

Adjusted total expenses are comparable at $257.3 million ($256.4 million), excluding amortisation of purchased intangible assets and other one-off adjustments.

Non-operating items

Non-operating gains were lower at $36.3 million ($48.3 million) from decrease in Other income (net) and net interest income, partially offset by lower impairment losses and net foreign exchange gains.

Other income (net) was lower at $27.3 million ($40.6 million) mainly driven by lower fair value gain recognised on our investment in 7RIDGE fund12, partially offset by gain on disposal of our investment in Philippines Dealing System Holdings Corp and gain on changes in interests in MarketNode.

Interest income was higher at $19.6 million ($18.6 million) mainly due to higher-yielding treasury investments, partially offset by lower interest rates.

Finance charges were higher at $8.8 million ($3.5 million) as we refinanced EUR 240M Zero Coupon Guaranteed Convertible Bonds due 2024 mainly with the issuance of SGD 300M 3.45% Notes due 2027.

• Computed based on net revenue.

1. Total expenses exclude transaction-based expenses.
2. Other expenses include professional fees and premises expenses.
3. Closed-endfund managed by 7RIDGE, that acquired global trading software provider Trading Technologies.

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Total impairment losses were $2.1 million ($5.7 million) mainly due to the underperformance of an associated company.

Our share of losses of associated companies and joint ventures was lower at $5.0 million ($7.3 million) mainly due to lower losses from CIX and MarketNode.

Tax expense for the first half of FY2025 was $74.4 million ($55.7 million), in line with higher profitability.

Total capital expenditure was $22.1 million ($18.5 million). These investments include the modernisation of our technology infrastructure.

Impact of Constant Currency

On a constant currency basis**, operating profit would have been up 31.5% instead of 29.4%.

Table 4: Impact of Constant Currency ($'million)

				Constant
	Reported	Reported	Reported	Currency
	1H FY2025	1H FY2024	% Change	% Change
Operating revenue less transaction-based expenses	646.4	558.9	15.6%	16.9%
(net revenue)
Total expenses	263.1	262.8	0.1%	0.4%
Operating profit	383.2	296.1	29.4%	31.5%

• Constant currency is calculated by translating the 1H FY2025 operating results using 1H FY2024 exchange rates. Hedging gains and losses are excluded in both periods. Constant currency figures are non-SFRS(I) measures.

Regulatory Overview

In 1H FY2025, Singapore Exchange Regulation (SGX RegCo) continued to carry out its regulatory responsibilities to maintain a fair, orderly and transparent market.

During this period, SGX RegCo continued to communicate its expectations and provide guidance to the market on various topics. SGX RegCo published a Regulator's Column offering guidance on the requirements for voluntary delisting of an issuer, particularly in scenarios where a General Offer leads to the loss of public float. SGX RegCo also published a commentary in Business Times Singapore, offering guidance to REIT managers on the recent trend where the traditional external management model for Singapore-listed REITs (S-REITs) has faced growing calls for internalisation.

SGX RegCo also enhanced its sustainability reporting regime and started to incorporate standards issued by the International Sustainability Standards Board into our climate reporting rules, following the conclusion of a public consultation. All issuers must report Scope 1 and Scope 2 greenhouse gas emissions from their financial years commencing on or after 1 January 2025. Their climate-related disclosures must also start incorporating the climate- related requirements in the IFRS Sustainability Disclosure Standards.

In the area of market misconduct, SGX RegCo issued one Trade with Caution alert, directed one listed issuer to delist, and issued public reprimands to one listed issuer and their directors and executive management, for breaches of the listing rules. SGX RegCo also issued public reprimands to two Sponsors of listed issuers and their registered professionals for failing to carry out their obligations in accordance with the listing rules.

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Commitment to Clearing Funds

SGX's commitment to the CDP and SGX-DC clearing funds was $40 million and $144 million respectively. The total CDP clearing fund was $80 million and the total SGX-DC clearing fund was $557 million as of 31 December 2024. From 15 January 2025, the total SGX-DC clearing fund was reduced by $50 million to $507 million. Accordingly, SGX's commitment to the SGX-DC clearing fund has reduced from $144 million to $132 million.

Outlook

We achieved a strong set of results in 1H FY2025, with the highest half year revenue and NPAT since our listing.

Our performance was broad-based, cutting across all operating segments. This was led by Cash Equities, Equity Derivatives followed by our Currencies and Commodities business, with notable growth in our OTC FX business. OTC FX contributed 5% of the Group's EBITDA, up from 3% a year ago.

Looking ahead for the near term, we expect some of the 1H FY2025 macro tailwinds to potentially moderate, as the impact from the US elections and China stimulus measure announcements taper off. Nevertheless, we remain optimistic for the medium-term given our efforts to continue strengthening the Group's multi-asset strategy in driving growth and enhancing our market offering:

• We are working on expanding our product suite, including new depository receipts, exchange traded funds and daily leverage certificates. Additionally, we observe improvement in our IPO pipeline.
• We will advance our derivatives franchise by broadening our global network and deepening client relationship for cross-asset opportunities. In OTC FX, we will focus on targeted client acquisition and further enhancing our platform with cutting edge functionalities.
• We will also use our leadership in bulk commodities and position as the world's largest dry forward freight agreement venue to enhance our integrated solution for clients to manage bulk cargo and freight risks.

We expect our expenses and capital expenditure to be at the lower end of our FY2025 guidance, previously guided at a 2-4% increase and between $70 million to $75 million respectively.

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2. Income Statement - Group

		1H
	FY2025	FY2024	Change
	S$'000	S$'000	%
Operating revenue
Fixed Income, Currencies and Commodities	172,909	151,880	13.8
Equities - Cash	194,548	159,591	21.9
Equities - Derivatives	192,521	160,687	19.8
Platform and Others	122,249	120,089	1.8
Operating revenue	682,227	592,247	15.2
Less: Transaction-based expenses	(35,868)	(33,297)	7.7
Operating revenue less transaction-based expenses (net revenue)	646,359	558,950	15.6
Operating expenses
Staff	148,949	140,140	6.3
Technology	44,420	44,202	0.5
Premises	4,964	5,384	(7.8)
Professional fees	7,318	5,627	30.1
Others	15,419	18,989	(18.8)
Operating expenses	221,070		3.1
214,342
Earnings before interest, tax, depreciation and amortisation	425,289	344,608	23.4
Depreciation and amortisation	42,042	48,464	(13.3)
Operating profit	383,247	296,144	29.4
Non-operating items			(32.7)
- Other income (net)	27,322	40,626
- Interest income	19,598	18,555	5.6
- Finance charges	(8,755)	(3,457)	NM
- Net foreign exchange gains/(losses)	220	(1,795)	NM
- Impairment losses	(2,098)	(5,671)	(63.0)
Non-operating gains	36,287	48,258	(24.8)
Profit before tax and share of results of associated companies	419,534	344,402	21.8
and joint ventures
Share of results of associated companies and joint ventures, net of tax	(4,986)	(7,349)	(32.2)
Profit before tax	414,548	337,053	23.0
Tax	(74,425)	(55,695)	33.6
Net profit after tax	340,123	281,358	20.9
Attributable to:			20.7
Equity holders of the Company	339,997	281,596
Non-controlling interests	126	(238)	NM

Page 8 of 24

3. Statement of Comprehensive Income - Group

		1H
	FY2025	FY2024	Change
	S$'000	S$'000	%
Net profit after tax	340,123	281,358	20.9
Other comprehensive income:
a) Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation			(57.4)
- Exchange differences arising during the period	(6,359)	(14,927)
- Transferred to profit or loss	2,668	-	NM
Cash flow hedges			NM
- Fair value (losses)/gains arising during the period	(1,405)	1,739
- Transferred to profit or loss	(1,173)	351	NM
Financial assets, at FVOCI
- Fair value gains arising during the period	2,220	970	NM
- Transferred to profit or loss	(897)	-	NM
b) Items that will not be reclassified subsequently to profit or loss:
Foreign exchange translation			(60.9)
- Exchange differences arising during the period	(115)	(294)
Financial assets, at FVOCI			NM
- Fair value gains/(losses) arising during the period	20,239	(3,658)
Other comprehensive income for the financial period, net of tax	15,178	(15,819)	NM
Total comprehensive income for the financial period	355,301	265,539	33.8
Total comprehensive income attributable to:
Equity holders of the Company	355,290	266,071	33.5
Non-controlling interests	11	(532)	NM
NM: Not meaningful

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