Stockbrokers and Financial Advisers Conference 2019Delivering new customer opportunities with digital, data and DLT

Dominic Stevens, CEO

22 May 2019

Agenda

DLTCHESS replacement

DataASX DataSphere

Digitalasx.com.au

Open infrastructure solutions - Create new products and services- Improve operational efficiency- Reduce risks and costs

History of delivering industry efficiency and innovation

The evolution of equities clearing and settlement

Share certificates

T+10 T+5

Electronic messaging

T+3Expanded into new products

T+2DLT-based

CHESS

Co-location for low latency connections

The evolution of trading and data services

Data centre services

Cross-connections across industry

Global connectivity Electronic trading

Chalk boards

mFund

ETFs

ALC

Enhancing ASX’s core customer proposition through world-leading innovation

Updated clearing and settlement systemNew functions and optionality for the 2020s and beyond

CHESS replacement

Replace aged COBOL system

Open source software language

Global ISO standard

All existing functionality

Plus 35 new specifications –for the market by the market

Choice of connectivity

Access real-time, synchronised, source-of-truth data

Updated clearing and settlement systemNew functions and optionality for the 2020s and beyond

Customer Development Environment Now open

Design, build and test system changes

Assess new functionality

First of 7 software drops

New functionality every ~8 weeks

Compare access options

Full functionality and industry-wide testing mid-2020

CHESS replacement

Replace aged COBOL system

Open source software language

Global ISO standard

All existing functionality

Plus 35 new specifications –for the market by the market

Choice of connectivity

Access real-time, synchronised, source-of-truth data

Will offer message-based connections

Will replace current functionality and add more

Will not change rules to require new information

Will not increase cost of like-for-like services

Updated clearing and settlement systemNew functions and optionality for the 2020s and beyond

Customer Development Environment Now open

Design, build and test system changes

Assess new functionality

First of 7 software drops

New functionality every ~8 weeks

Compare access options

Full functionality and industry-wide testing mid-2020

CHESS replacement

Replace aged COBOL system

Open source software language

Global ISO standard

All existing functionality

Plus 35 new specifications –for the market by the market

Choice of connectivity

Access real-time, synchronised, source-of-truth data

CHESS replacement

Updated clearing and settlement systemNew functions and optionality for the 2020s and beyond

Customer Development Environment Now open

Option to access real-time, synchronised, permissioned, source-of-truth data

On track for DLT-based go-liveMarch-April 2021

CHESS replacement

Replace aged COBOL system

Open source software language

Global ISO standard

All existing functionality

Plus 35 new specifications –for the market by the market

Choice of connectivity

Access real-time, synchronised, source-of-truth data

Will offer message-based connections

Will replace current functionality and add more

Will not change rules to require new information

Will not increase cost of like-for-like services

CHESS replacement

Delivering contemporary, open infrastructureProvide more value-added products and services to customers

Contemporary technology

Stronger foundations

Improved infrastructure

AI efficiency

New opportunities

8 |

ALC Net upgrade

Secondary Data Centre

ASX DataSphere

Open infrastructure solutions to benefit customers

Industry connectivity

Data analytics

Post-trade infrastructure

Customer challenge ASX solution Customer benefits

Australian Liquidity CentreTier-3 data centreData centre investment

Data management & expense

Competitive services

Community connectivity

ASX DataSphereOpen ecosystem platform

Technology, governance, datasets and analytical tools

Curate and standardise

Big data science capability

Commercialise and distribute

Improved data generatingproduct development

Governed data platform without upfront investment costs

Product distribution

Cost and inefficiency

Multiple reconciliations

Data inaccuracies

Bespoke solutions

DLT Solutions Enterprise-grade technology

infrastructure

Smart contract software

Safe and secure delivery of real-time, synchronised

source-of-truth data

Productivity benefits

New revenue opportunities

Perfect information, and cost and time savings

Efficient workflows

New products and services

Opportunity to unlock value and reduce costsDLT solution

*Rainmaker Consulting May 2017 report for the 2016 year

Cost of ASX fees to settle ALL of the

equities traded in Australia

$22.4bnAustralia’s

superannuation industry fee

revenue*

?Value unlocked by

permissioned, synchronised, real-time, source-of-truth

information?

~$50m

Improving the digital experienceRedesigning and modernising the ASX website

More ways to connect

New data analytics and insights

New pricing and issuer pages

Quality products and trusted advice

New products and services to capture opportunity Meet increasing demand and changing investor appetites

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1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035

Compulsory

super

introduced

Currently around $2.7tr

growing to $9.4tr in 2035

Source: ABS, Deloitte Actuaries and Consultants

Diversification across asset classes, sectors and geographies

Capital growth and income

Liquidity and transparency

Partnering with local and global fund managers

$b

n

LICs and LITs

Strong growth in ASX investment productsmFund growth continues with 43% increase in FUM over past year

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Exchange traded products

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Fun

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$43bmarket cap (FUM)

113Funds

$48bmarket cap (FUM)

243Funds

$899mmarket cap (FUM)

222Funds

Source: ASX Investment Products Monthly Update – Apr 19

Choice through sectoral and geographic diversity ASX’s international listings strategy

56 46 20 17 113

Total Foreign Listings 280+

Source: ASX Data, May 2019

11

New Zealand United States SingaporeIsrael Canada IrelandMalaysia

Expanding and diversified listings franchiseTech listings have provided attractive returns to investors

$9.27bn

$3.93bn

$7.29bn

$4.22bn

$2.17bn

$2.28bn$2.54bn

$4.98bn

$1.97bn

$6.85bn

$2.68bn

$1.17bn

Source: Bloomberg, 17 May 2019. Indexed to 100 rebased from January 2009.

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S&P/ASX 200 vs S&P/ASX 300 Info Tech index

S&P/ASX 200 S&P/ASX 300 Information Technology Index

Quality is key for market integrityContinued evolution and strengthening of listings framework

2012 2014 2015 2016 20172013 2018 2019

Good fame and character requirements

Back door listings regulation

Mining, oil and gas code

Continuous disclosure improvements

10% minimum free float applied

More control over listings decisions

New (foreign exempt) category for NZ entities

3rd edition Corporate Governance Principles and Recommendation

Tighten acceptable structure, minimum free float, and minimum spread for emerging market issuers

New pre-vetting process for listings

20% minimum free float

New suspension policy for back doors introduced

Major strengthening of admission rules

Automatic removal of long-term suspended entities

Tightened rules on reverse takeovers

Tightened guidance on minimal working capital

Introduced ‘show cause’ process to terminate delinquent listed entities

Removed trading halts for block sales

Tightened guidance on good fame andcharacter requirements

4th edition Corporate Governance Principles and Recommendations

Consulting on simplifying,clarifying and enhancing listing rules

Thank you.