TEL AVIV STOCK EXCHANGE : TASE) Investors presentation Q1 2024

Tel-Aviv Stock Exchange (TASE)

Investors Presentation

Quarter ended March 31, 2024

1

IMPORTANT: You must read the following before continuing. The following applies to the presentation with respect to The Tel-Aviv Stock Exchange Limited and its subsidiaries and affiliates (collectively, "TASE"). In accessing the presentation, you agree to be bound by the following terms and conditions.

The presentation does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase the securities of TASE, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding the securities. Any investment decision in respect of the securities should be made solely on the basis of the information to be contained in the public reports of TASE.

The information in the presentation is basic and concise while the public reports of TASE contain more detailed information which may be different from, or additional to, the information contained in this presentation. In the event of any contradiction or discrepancy between the presentation and the public reports, the information in the public reports prevails. Thus, the presentation is not intended to serve as a substitute to reading TASE's public reports.

The Information contains statements and information that are forward-looking. Such forward-looking statements and information are only predictions and cannot assure TASE's future performance. Investors have been cautioned that any such forward-looking statements and information are subject to many risks and uncertainties relating to the operations and business of TASE. As a result of such risks and uncertainties, the actual results of TASE may be materially different from any future result expressed or implied in the forward-looking statement or information contained herein. Any opinions expressed in this presentation are subject to change without notice and TASE is not under obligation to update or keep current any of the forward-looking statement or information contained herein.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained therein. The information, including but not limited to forward-looking statements, applies only as of the date of this presentation and is not intended to give any assurances as to future results. TASE expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the information that may result from any change in TASE's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document

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TASE at a Glance / Q1'24 by the Numbers

Established in 1953, TASE is the only Securities Exchange in Israel and a cornerstone of its growing capital market

Average Daily Turnover

('000 Contracts)	(NIS Billions)	(NIS Billions)	(NIS Billions)	(NIS Billions)
150.5	1.9	3.4	1.2	2.1
Derivatives(3)	T-Bills	Government	Corporate	Shares (1)
		Bonds	Bonds(1)
8% Y-o-Y Reduction	40% Y-o-Y Growth	15% Y-o-Y Growth	6% Y-o-Y Growth	Unchanged Y-o-Y
	Market Capitalization
(NIS Billions)	(NIS Billions)	(NIS Billions)	(NIS Billions)	(NIS Billions)
357	256	632	487	1,155
Mutual	T-Bills	Government	Corporate	Shares (1)
Funds(6)		Bonds	Bonds(1)
29% Y-o-Y Growth	6% Y-o-Y Reduction	8% Y-o-Y Growth	11% Y-o-Y Growth	20% Y-o-Y Growth

Listings and Offerings

(NIS Billions)	(NIS Billions)	535
21.8	2.5
Corporate	Equity	Share and bond
Bonds	Raised	Companies(5)
Raised(2)
1% Y-o-Y Reduction	1% Y-o-Y Reduction	2% Y-o-Y Reduction
(NIS Billions)	(NIS Billions)	87
101.9	67.3
T-Bills Raised	Government	Bond
	Bonds	Companies(5)
	Raised(4)
21% Y-o-Y Reduction	309% Y-o-Y Growth	1% Y-o-Y Growth

(1)	Includes ETFs.	(4)	Includes government bonds via swap transactions.
(2)	Includes structured bonds.	(5)	Excludes TASE-UP	3
(3)	Includes options on individual equities	(6)	Value of the mutual funds' assets, as recorded in the in TASE Clearing House

TASE at a Glance / Q1'24 by the Numbers

Continued

Financial Metrics

(NIS Millions)	(NIS Millions)	44.8%	(NIS Millions)	25.7%	(NIS)
108.3	48.6	27.8	0.278
Revenue	Adj. EBITDA (1)	% Adj. EBITDA(1)	Adj. net profit (1)	% Adj. net profit (1)	Basic EPS
8% Y-o-Y Growth	12% Y-o-Y Growth		7% Y-o-Y Growth		9% Y-o-Y Growth

		Revenue (NIS Millions)				Adjusted EBITDA & Margin(1) (NIS Millions)	Adjusted Net Profit & Margin(1) (NIS Millions)				Basic EPS (NIS)
											40%	41%					23%	23%
					398.1					37%
			361.0	389.9	31%	32%		157.6	162.6													0.859	0.883
						13%	14%	14%	89.3	91.1
		323.7
	304.3								132.2
						95.1	103.0							51.4								0.500
																			0.449
															46.2				0.368
														38.2
	2020	2021	2022	2023	LTM	2020	2021	2022	2023	LTM	2019	2020	2021	2022	LTM	2020	2021	2022	2023	LTM

(1) Exclude expenses in respect to share-payments

4

Issuance Volume

Equity Market

Bond Market

(NIS in billions)

Number of Issuances(2)

Secondary offerings

IPO

29

		20
	16
8	1	2

Q1'22 Q1'23 Q1'24

Treasury Bills Issuances

129.7

101.9

40.9

Q1'24(1)

6%

Secondary Offerings

2.5 Private Placements

42% NIS in 52% IPOs

billions

Exercise of Warrants

Government Bond Issuances(3)

67.3

15.416.5

Capital Issuances(1) (NIS in billions)

IPO	Secondary offerings

7.5

2.62.5

1.4

0.1

0.1

Q1'22 Q1'23 Q1'24

Corporate Bond Issuances

25.6

21.921.8

5

Q1'22 Q1'23 Q1'24

Q1'22 Q1'23 Q1'24

Q1'22 Q1'23 Q1'24

(1) Includes TASE-UP

(2) Excludes Private Placements. Includes TASE-UP5

(3) Includes Issuance via swap transactions

The results for Q1'24

NIS, in thousands

		Quarter Ended
IFRS (GAAP)	March 31, 2024	March 31, 2023	Difference -%
Revenue from services	108,293	100,016	8%
Expenses	75,367	69,976	8%
Profit before financing income, net	32,926	30,040	10%
Financing income (expenses)	1,437	2,528	(43%)

Revenue

(NIS Millions)

8%

Y-o-Y Growth

108.3

100.0

Q1'23Q1'24

Taxes on income	8,653	7,087	22%
Profit for the quarter	25,710	25,481	1%
Basic EPS (in NIS)	0.278	0.254	9%
Non GAAP

Adjusted EBITDA(1)

(NIS Millions)

12%

Y-o-Y Growth

43.5

48.6

Adjusted EBITDA(1)	48,568	43,534	12%
% EBITDA Adjusted margin	44.8%	43.5%
Adjusted net profit(1)	27,823	26,092	7%
% Adjusted net profit margin	25.7%	26.1%

Adjusted net profit(1)

(NIS Millions)

7%

Y-o-Y Growth

Q1'23Q1'24

27.8

26.1

Q1'23Q1'24

(1) Adjusted EBITDA and Adjusted Net Profit exclude expenses in respect to share-payments.

6

Revenue Q1'24

NIS, in thousands

		Quarter Ended
		% of the		% of the
	March 31,	Company's	March 31,	Company's	Difference -
	2024	total	2023	total	%
		revenues		revenues
Trading and
clearing	42,954	40%	41,923	42%	2%
commissions
Listing fees and	21,603	20%	20,302	20%	6%
levies
Clearing House	19,980	18%	19,113	19%	5%
services
Data distribution
and Connectivity	22,601	21%	17,124	17%	32%
services
Other revenue	1,155	1%	1,554	2%	(26%)
Total revenue	108,293	100%	100,016	100%	8%

6% of the increase in revenue from trading and clearing commissions is due to an increase in the volume of creations/redemptions of mutual fund units and an increase in the trading volumes of T-bills. In opposition, a reduction in the number of trading days this quarter compared to the corresponding quarter last year, and a reduction in revenue as a result of changes of the effective commission rate, mainly in relation to T-bills, contributed 2% to the decrease in revenue, each.

4% of the increase in revenue from listing fees and levies stems from an increase in revenue from annual levies, both as a result of the increase in the number of companies and funds that pay an annual levy, and due to the linkage of the levy rates to the CPI. In addition, 2% of the increase is due to an increase in revenue from listing fees, mainly as a result of an increase in the volumes raised by companies and ETFs this quarter compared to the corresponding quarter last year.

4% of the increase in revenue from Clearing House services is due to an increase in revenue from custodian fees as a result of an increase in the value of the assets held in custodianship at TASE-CH, and 1% of the increase is due to an increase in Clearing House services to companies and members, mainly as a result of the expansion of the services in relation to information on OTC transactions and the linkage of the clearing fees to the CPI.

22% of the increase in revenue from data distribution and connectivity services is due to an increase in revenue from authorizations to use the TASE indices, mainly as a result of the updating of the index-usage authorization fees and the increased use of the TASE indices, 7% of the increase is due to an increase in revenue from data distribution to business and private customers, and 3% of the increase is due to an increase in revenue from connectivity services.

The reduction in revenue is due to one-time income received in the corresponding quarter last year - a refund of municipal taxes for prior years in an amount of NIS 0.6 million.

40% transactional

60% non-transactional

1%

21%

Q1'24	40%
Revenue
108.3
18% NIS Millions

20%

Trading and clearing commissions

Listing fees and levies

Clearing House services

Data distribution and connectivity services

Other revenue

7

Q1'24 Revenue Composition

40% transactional

60% non-transactional

Trading and Clearing Commissions

Clearing House Services

1%

21%

Q1'24

Revenue 40%

108.3

• Trade execution and clearing across asset classes and clearing for creation/redemption of mutual fund units.
• Volume-based,commission-per-trade revenues.

8%

			Shares
20%		35%	Corporate Bonds
	43.0	Government Bonds
	NIS Millions	Derivatives
13%			Mutual Funds
		12%	T-Bills and other
	12%

• Custodian services, clearing of corporate actions, and transfer activities
• Fees are charged for any service provided and custodian fees are charged monthly based on asset values

8%

Custodian fees

16%

20.0	42%	For members
NIS Millions		For companies &
	funds
		Other

34%

18% NIS Millions

Listing Fees and Levies

Data Distribution and Connectivity Services

20%

Trading and clearing commissions

	Listing and registration
	of securities
	One-time fees on
	issuances and
	examinations plus

9%

21.6 Annual Levies50%

	Real-time data
	offering to data
	distributors and
	financial institutions
	Monthly subscription

Business clients

16%	Private clients
22.6	34%
Derivative & non-
display data

annual levies charged 41%

NIS Millions

Listing Fees

fees on terminals,

NIS Millions	Data files and others

Listing fees and levies

Clearing House services

based on market cap

Examination fees

indices, data and

connectivity services.

28%
	Indices usage
6% 5%	11%
Connectivity services

Data distribution and connectivity services

Other revenue

Other

• Other revenue -NIS 1.1M

8

Adjusted Expenses(*) Q1'24

NIS, in thousands

			Quarter Ended
		% of the		% of the
	March 31, 2024	Company's	March 31, 2023	Company's	Difference -%
		total expenses		total expenses
Compensation	39,030	53%	38,171	55%	2%
Computer and Communications	10,837	15%	9,013	13%	20%
Property Taxes and Building	3,264	5%	3,227	5%	1%
Maintenance
Marketing	1,341	2%	863	1%	55%
Fee to the Israel Securities	2,092	3%	2,429	4%	(14%)
Authority
General and Administrative	2,485	3%	2,245	3%	11%
Other operating expenses	700	1%	534	1%	31%
Depreciation & amortization	13,496	18%	12,868	19%	5%
Other	9	0%	15	0%	(40%)
Total Expenses**	73,254	100%	69,365	100%	6%

1. The total expenses include expenses in respect to share-payments expenses for share-based payments amounted to NIS 75.4 millions in Q1'24 and to NIS 70.0 millions in Q1'23.

	0%
	18%
1%	Q1'24
3%	Adjusted
Expenses
5%
73.3
3%
2%		53%

NIS Millions

15%

Compensation

Computer and communication

Property taxes and building maintenance

Marketing

Fee to the Israeli Securities Authority

General and administrative

Other operating expenses

Depreciation and amortization Other

(*) Expenses exclude expenses in respect to share-payments.	9

Balance Sheet and Liquidity Position

as of March 31, 2024 | NIS Thousands

Assets:

Current assets

Cash and cash equivalents		392,955
Financial assets at fair value through profit or loss		90,059
Trade receivables		22,387
Other receivables		14,939
Total(1)		520,340
Assets derived from clearing operations in respect of open	1,752,755
derivative positions
Total current assets		2,273,095
	Non-current assets
Deferred tax assets		4,432
Property and equipment, net		313,466
Intangible assets, net		157,551
Other long-term receivables		8,766
Total non-current assets		484,215
Total assets		2,757,310

Liabilities and Equity:

Current liabilities

Current maturities of a loan from a bank	49,876
Current maturities of lease liabilities	8,183
Trade payables	10,286
Other payables	4,081
Income received in advance with respect to annual levies	31,472
Deferred income in respect of listing fees and levies	28,850
Current tax liabilities	7,561
Short-term liabilities for employee benefits	42,602
Total (1)	182,911
Liabilities derived from clearing operations in respect of	1,752,755
open derivative positions
Total current liabilities	1,935,666
Non-current liabilities:
Loan from a bank	87,486
Lease liabilities	15,782
Deferred income in respect of listing fees and levies	77,940
Non-current liabilities for employee benefits	41
Other liabilities	9,690
Total non-current liabilities	190,939
Total equity	630,705
Total liabilities and equity	2,757,310
Adjusted Equity Ratio	73%

Capital requirements in respect of the risk components:

Credit risk	9,982
Market risk	2,520
Legal and operational risk	55,030
Business continuity and reorganization	71,129
Contribution against default waterfall	29,120
Total capital requirements in respect of the risk	167,781
components
Capital base components:
Total equity	630,705
Adjustments:
Deferred income in respect of listing fees less deferred tax	82,306
Total qualifying capital base	713,011
Capital surplus (qualifying capital base, less requirements)	545,230
Liquidity requirements in respect to the risk components
Business continuity and reorganization	71,129
Projected cash flow, net	30,460
Contribution against default waterfall	29,120
Total requirements for liquid assets	130,709
Cash and cash equivalents	392,955
Securities portfolio at fair value	90,059
Less - amortization coefficients on the assets	(4,622)
Less- the balance earmarked for investment in TASE's	(230,038)
technological infrastructure
Less - current liabilities	(7,841)
Net liquid assets	240,513
Liquidity surplus (net liquid assets, less requirements)	109,804

545

NIS in Millions

(2)(Excess Capital(1

Growth compared to 31.12.23 71%

110

NIS in Millions

(3)(Excess Liquidity(1

Reduction compared to 31.12.23 25%

(1)	The Board of Directors also approved a safety cushion, which serves as an additional layer for handling stress scenarios and is at the discretion of the Board of Directors.
(2)	The capital includes consideration from the sale of the Arrangement shares	10
(3)	On 21.3.2024 the company paid a dividend of NIS 41.6 million.