Tel Aviv Stock Exchange : Investors presentation Q4 and 2023

Tel-Aviv Stock Exchange (TASE)

Investors Presentation

Year 2023

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 / 2023 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

Listings and Offerings

('000 Contracts)	(NIS Billions)	(NIS Billions)	(NIS Billions)	(NIS Billions)
144.6	1.4	2.9	1.0	2.0
Derivatives(3)	T-Bills	Government	Corporate	Shares (1)
7% Y-o-Y Reduction		Bonds	Bonds(1)	13% Y-o-Y
78% Y-o-Y Growth	20% Y-o-Y Growth	3% Y-o-Y Reduction
		Reduction

Market Capitalization

(NIS Billions)	(NIS Billions)	(NIS Billions)	(NIS Billions)	(NIS Billions)
330	305	612	476	1,055
Mutual	T-Bills	Government	Corporate	Shares (1)
Funds(6)		Bonds	Bonds(1)
21% Y-o-Y Growth	46% Y-o-Y Growth	4% Y-o-Y Growth	9% Y-o-Y Growth	4% Y-o-Y Growth

(NIS Billions)

100

Corporate

Bonds

Raised(2)

9% Y-o-Y Growth

(NIS Billions)

403.5

T-Bills Raised

21% Y-o-Y Growth

(NIS Billions)	537
8.5
Equity	Share and bond
Raised	Companies(5)
61% Y-o-Y	2% Y-o-Y Reduction
Reduction

(NIS Billions)

116.3 86

Government Bond

Bonds Companies(5)

Raised (4)

180% Y-o-Y Growth 2% Y-o-Y Growth

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

TASE at a Glance / 2023 by the Numbers

Continued

Financial Metrics

(NIS Millions)	(NIS Millions)	(NIS Millions)	)NIS(	(NIS Millions)	(NIS Millions)
389.9	157.6	89.3	0.859	155.3	272.7
Revenue	Adj. EBITDA)1(	Adj. net profit )1(	Basic EPS	Acquisition of	Dividend(2)
				Treasury shares
8% Y-o-Y Growth	17% Y-o-Y Growth	74% Y-o-Y Growth	72% Y-o-Y Growth	396% Y-o-Y Growth

		Revenue (NIS Millions)				Adjusted EBITDA & Margin(1) (NIS Millions)		Adjusted Net Profit & Margin(1) (NIS Millions)				Basic EPS (NIS)
												40%						23%
		CAGR 11%
									37%
				361.0	389.9				31%	32%		157.6				14%	14%									0.859
													89.3
			323.7			24%						13%
		304.3						132.2
260.0									103.0			8%
									95.1															0.500
																51.4							0.449
																46.2						0.368
							62.9							38.2
													21.4						0.176
2019	2020	2021	2022	2023		2019	2020	2021	2022	2023	2019	2020	2021	2022	2023		2019	2020	2021	2022	2023

(1)	Exclude expenses in respect to share-payments	4
(2)	Includes one time dividend paid in an amount of NIS 231.1 million

Issuance Volume

Equity Market

Bond Market

(NIS in billions)

Number of Issuances(2)

Secondary offerings IPO

195

170	164

94

13

1

2021 2022 2023

Treasury Bills Issuances

403.5

231.2

130.9

2021

2022

2023

2023(1)

3%

2%

				Secondary Offerings
	8.5	39%		Private Placements
	NIS in
			IPOs
56%	billions
			Exercise of Warrants

Government Bond Issuances(3)

158.0

116.3

41.5

2021

2022

2023

Capital Issuances(1) (NIS in billions)

			IPO				Secondary offerings
26.4
				21.7
								8.5
10.5								0.1
								2.3
2021	2022	2023

Corporate Bond Issuances

95.1	92.1	100.0

5

2021

2022

2023

(1) Includes TASE-UP

(2) Excludes Private Placements. Includes TASE-UP5

(3) Includes Issuance via swap transactions

The results for 2023

NIS, in thousands

		Year Ended
IFRS (GAAP)	December 31,	December 31,		Difference -%
2023	2022
Revenue from services	389,855	361,011		8%
Expenses	291,516	277,813		5%
Profit before financing income, net	98,339	83,198		18%

Revenue

(NIS Millions)

8%

Y-o-Y Growth

361.0

389.9

Financing income (expenses)	11,307	)13,225(	-
Taxes on income	26,440	19,137	38%
Profit for the quarter	83,206	50,836	64%
Basic EPS (in NIS)	0.859	0.500	72%
Diluted EPS (in NIS)	0.840	0.492	71%
Non GAAP
Adjusted EBITDA(1)	157,582	135,195	17%
% EBITDA Adjusted margin	40.4%	37.4%
Adjusted net profit(1)	89,346	51,366	74%
% Adjusted net profit margin	22.9%	14.2%

Adjusted EBITDA(1)

(NIS Millions)

17%

Y-o-Y Growth

Adjusted net profit(1)

(NIS Millions)

74%

Y-o-Y Growth

20222023

157.6

135.2

20222023

89.3

51.4

20222023

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

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Revenue 2023

NIS, in thousands

	Year Ended
% of the	% of the
December Company's	December Company's Difference -

40% transactional

60% non-transactional

	31, 2023	total	31, 2022	total	%
		revenues		revenues
Trading and
clearing	155,589	40%	142,490	40%	9%
commissions
Listing fees and	81,120	21%	84,489	23%	)4%(
levies
Clearing House	78,208	20%	70,908	20%	10%
services
Data distribution
and Connectivity	71,176	18%	58,060	16%	23%
services
Other revenue	3,762	1%	5,064	1%	)26%(
Total revenue	389,855	100%	361,011	100%	8%

9% of the increase in revenue from trading and clearing commissions results from the increase in revenue from T-bills, government bonds and mutual funds, primarily due to the higher trading volumes and the increase in the volumes of creations and redemptions of mutual fund units. At the same time, the reduced share trading volumes deducted 2% of the aforesaid increase. In addition, 2% of the increase in revenue from trading and clearing commissions is due to the increase in the number of trading days.

5% of the decrease in revenue from listing fees and levies is due to a one-time income of NIS 4.3 million recorded in the first quarter last year as a result of the update to the period of revenue recognition from listing fees on shares and ETFs pursuant to International Financial Reporting Standard, "Revenue from Contracts with Customers" (IFRS 15). 1% of the decrease is due to the reduction in revenue from the examination of prospectuses. In opposition, an increase in revenue from annual fees, mainly due to the linkage of the fee rates to the CPI, deducted 2% of the aforesaid decrease..

5% of the increase in revenue from Clearing House services is due to an increase in revenue from Clearing House services to companies, half of which is due to the linkage of the clearing rates to the CPI and to the updating of corporate actions' clearing rates during the year. An additional 5% increase is due to an increase in revenue from Clearing House services to members, primarily as a result of the expansion of the services in relation to information on OTC transactions and the linkage of the clearing rates to the CPI.

12% of the increase in revenue from data distribution and connectivity services is due to revenues from index use authorizations, primarily as a result of the updating of rates, and 8% of the increase is due to revenue from data distribution to business and private customers, of which 5% relates to data distribution to business customers overseas. Another 2% increase is due to revenue from connectivity services.

The decrease in revenue is due mainly to the reduction in revenue from the sale of technological consulting services provided in the corresponding period last year in an amount of NIS 1.3 million.

1%

18%

2023

Revenue 40%

389.9

20%

NIS Millions

21%

Trading and clearing commissions

Listing fees and levies

Clearing House services

Data distribution and connectivity services

Other revenue

7

2023 Revenue Composition

40% transactional

60% non-transactional

Trading and Clearing Commissions

Clearing House Services

1%

18%

2023 40% Revenue

389.9

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

9%

			Shares
19%		36%	Corporate Bonds
155.6
	Government Bonds
	NIS Millions	Derivatives
14%			Mutual Funds
		T-Bills and other
		11%
	11%

• 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

7%

		Custodian fees
19%	41%
78.2	For members
NIS Millions		For companies &
	funds
		Other

33%

20%

NIS Millions

21%

Listing Fees and Levies			Data Distribution and Connectivity Services
▪ Listing and registration	9%	▪	Real-time data		Business clients
of securities			offering to data	18%
			Private clients
				distributors and
▪ One-time fees on
			financial institutions

Trading and clearing commissions

Listing fees and levies

Clearing House services

Data distribution and connectivity services

Other revenue

issuances and	81.1 49%	Annual Levies			71.2	42%	Derivative & non-
examinations plus	Listing Fees	▪ Monthly subscription	14%		display data
	Data files and others
annual levies charged 42%	NIS Millions	fees on terminals,	NIS Millions
Examination fees
based on market cap		indices, data and
		7%				Indices usage
			connectivity services.
				7%
					12%		Connectivity services

Other

• Other revenue -NIS 3.8M

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Adjusted Expenses(*)	2023
NIS, in thousands
				Year Ended
	December 31,	% of the	December 31,	% of the
	Company's	Company's	Difference -%
	2023	2022
	total expenses	total expenses
Compensation	153,643		54%	147,905	53%	3%
Computer and Communications	38,559		14%	29,953	11%	29%
Property Taxes and Building	13,732		5%	13,798	5%	-
Maintenance
Marketing	5,693		2%	13,171	5%	)57%(
Fee to the Israel Securities	8,098		3%	9,341	4%	)13%(
Authority
General and Administrative	9,389		3%	9,100	3%	3%
Other operating expenses	2,470		1%	2,548	1%	)3%(
Depreciation & amortization	52,412		18%	51,335	19%	2%
Other	1,380		0%	132	0%	945%
Total Expenses**	285,376		100%	277,283	100%	3%

1. The total expenses include expenses in respect to share-payments expenses for share-based payments amounted to NIS 291.5 millions in 2023 and to NIS 277.8 millions in 2022.

	0%
	18%
1%	2023
3%	Adjusted
Expenses
3%
285.4
5%
2%		54%

NIS Millions

14%

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

The results for Q4'23

NIS, in thousands

		Quarter Ended
IFRS (GAAP)	December 31,	December 31,		Difference -%
2023	2022
Revenue from services	101,448	86,325		18%
Expenses	76,886	67,468		14%
Profit before financing income, net	24,562	18,857		30%
Financing income (expenses)	3,175	)474(		-
Taxes on income	7,014	5,178		35%
Profit for the quarter	20,723	13,205		57%
Basic EPS (in NIS)	0.224	0.131		71%
Diluted EPS (in NIS)	0.219	0.129		70%
Non GAAP
Adjusted EBITDA(1)	40,061	32,076		25%
% EBITDA Adjusted margin	39.5%	37.2%
Adjusted net profit(1)	22,724	13,339		70%
% Adjusted net profit margin	22.4%	15.5%

Revenue

(NIS Millions)

18%

Y-o-Y Growth

Adjusted EBITDA(1)

(NIS Millions)

25%

Y-o-Y Growth

Adjusted net profit(1)

(NIS Millions)

70%

Y-o-Y Growth

101.4

86.3

Q4'22Q4'23

40.1

32.1

Q4'22Q4'23

22.7

13.3

Q4'22Q4'23

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

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