WELCOME Second Quarter Financial Year 2011

18 January 2011

Analyst and Media Briefing

Magnus Böcker CEO Böcker, Seck Wai Kwong, CFO

Highlights Financial Performance Business Update Questions & Answers 3 .Agenda 1. 2. 3. 4.

(c) ASX-SGX transaction related costs $7. Bond listings New Securities & Derivatives members Clearing: OTC Financial Derivatives Securities: GlobalQuote & Chi East Chi-East Derivatives: Euro STOXX50.3M in 4Q FY2010. Nikkei options 2Q 3Q FY 2010 4Q 1Q FY 2011 2Q (Note: The above exclude (a) CEO transition costs $6. FTSE Xinhua China A50.Second Quarter Highlights Stronger quarter in securities & derivatives markets Proposed ASX-SGX Combination creating the premier Asia Pacific exchange Expanded reach p ▫ ▫ ▫ ▫ ▫ Issuer Services: Larger IPOs.5M in 2Q FY2011 4 4 . (b) Impairment adjustments $2.3M in 2Q FY2010.

Financial Performance Seck Wai Kwong 5 5 .

3% 6 [Excludes (a) CEO transition costs $6. Some numbers may be subject to rounding] 6 .1% (8.7%) ( ) $110M $101M 7.Financial Performance Net Profit $82M ($77M) Solid quarter: Revenue up across all businesses Net Profit up 6%.5M in 2Q FY2011.2 cents (7. (b) ASX-SGX transaction related costs $7. EBITDA up 15%.0 cents) 11.7 cents 11.3M in 2Q FY2010. and Operating Profit up 12% (1Q FY11 comparatives) EBITDA Operating profit Earnings per share q y Return on equity $95M ($100M) $90M ($91M) 7.

8B from $1. 46% from 37% Securities 2Q FY10 Derivatives Market Data Member Services & Connectivity Depository Services Issuer Services 2Q FY11 (% Revenue) ($M) (47%) 81 71 67 (20%) 34 34 31 (5%) 8 8 8 (5%) 10 9 8 (14%) 24 21 20 (9%) 16 16 16 (100%) 172 159 151 7 2Q FY11 1Q FY11 2Q FY10 [Note: Some numbers may be subject to rounding] 7 .Financial Performance Revenues: $172M ($151M) Increased securities & derivatives trading volumes Increased institutional volume +14 SDAV $1.4B +3 F&O DAV 248k from 222k USD depreciation by 6% +2 +4 Increased institutional trades Increased connectivity New Members 172 151 Capped trades.

5M in 2Q) Q) +6 +1 +3 Salary adjustments Increased Technology activities investments 61 Job Credit Scheme 2Q FY10 Staff Technology Processing & Royalties Premises Professional fees Others 72 2Q FY11 (% Expenses) ($M) 2Q FY11 1Q FY11 2Q FY10 (39%) 28 28 25 (36%) 26 24 19 (9%) 7 6 6 (7%) 5 5 5 (3%) 2 2 3 (6%) 4 3 3 (100%) 72 68 61 8 [Excludes (a) CEO transition costs $6.3M in 2Q FY2010. Some numbers may be subject to rounding] 8 . the Reach initiative Maintain capex guidance $60-65M Expect ASX-SGX transaction related costs in FY2011: $20M ($ p $ ($7. OTC Clearing. (b) ASX-SGX transaction related costs $7.5M in 2Q FY2011.Financial Performance Expenses: $72M ($61M) Technology investments: SGXClear.

75 1. (b) Impairment adjustments $2.75 1. (c) ASX-SGX transaction related costs $7.071 9.0 4.0 1.5 15.5 6.8 3.0 4.75 1.2 7.070 Note 1: Except for “Earnings Per Share” data.3M for 2Q FY11 and 5.2 7.3M in 2Q FY10.3 7.071 9.5M in 2Q FY11 Note 2: Return on Equity is on 12-month rolling basis Note 3: The above number of shares issued includes treasury shares of 4.0 1.0 3.071 8. of shares issued (M) 7. the above excludes (a) CEO transition costs $6.2M for other quarters Note 4: Some numbers may be subject to rounding 9 9 .070 8.3M in 4Q FY10.7 7.Financial Indicators (Adjusted) 2Q FY11 110 101 82 721 44 1Q FY11 100 91 74 854 36 4Q FY10 100 91 77 816 41 3Q FY10 97 90 75 731 48 2Q FY10 95 90 77 693 47 EBITDA ($M) Operating Profit ($M) Net Profit ($M) Total E it T t l Equity ($M) Return on Equity (%) Per Share (cents) Operating Cash Flow Earnings Dividend No.

Business Update p Magnus Böcker 10 10 .

Securities: Trading and Clearing Revenue: $81M.77 1 77 45 2 46 54 1Q FY11 365 64 60 48 89 115 1.51 1 51 14 2 37 63 2Q FY10 349 64 59 52 62 132 1.5M Securities Revenue ($M) 67 70 72 71 81 11 (Source: WFE. 2Q = Oct to Dec 10) [Note: Some numbers may be subject to rounding] 11 .61 1.48 1. 47% ($67M. of Trading Days Equity Turnover Velocity (%) Singapore issuers Overseas issuers. 1Q FY11 = Jul to Sep 10.66 1. 45%) Metrics Key drivers Market Structure ▫ ▫ ▫ Continuous all day trading Remote trading membership Turnover velocity 2Q FY11 377 64 63 48 95 118 1.60 1. excluding Chinese issuers Chinese issuers Daily Average Trading Volume (billion shares) Products & Services ▫ ▫ GlobalQuote Chi-East Daily Average Trading Value ($ billion) ETFs/ETNs ($ million) Company warrants Contracts value More than $1.56 1 56 25 2 42 58 4Q FY10 337 63 63 54 70 148 1.5M Less than $1.53 1 53 30 2 39 61 3Q FY10 342 61 64 52 86 139 1.43 1.36 1 36 20 1 37 63 MSCI Singapore Index No.

574 26 27 9 26 1.610 9. 20% ($31M.448 6. Nikkei Dividend futures ▫ Pipeline – Nift options & metal contracts Nifty ti t l t t Derivatives Revenue ($M) 31 32 34 34 34 28 24 14 29 27 24 13 30 27 22 12 25 882 5.705 25 2Q FY10 222 108 (61) 61 (66) 34 (60) 14 (64) 0 (60) 516 (61) 3 66.920 7.468 trading volume.431 4.938 48.175 27. 21%) Market Structure ▫ Open connectivity for registration of off market large trades off-market Key drivers Daily Average Volume (‘000 contracts) Nikkei 225 futures (days) MSCI Taiwan futures (days) Nifty futures (days) MSCI SG futures (days) FTSE Xinhua A50.547 27 Product Development ▫ OTC financial derivatives ▫ FTSE Xinhua China A50.935 2. Nikkei options. in contracts (days) Nikkei options.530 24 35.158 24 31.222 22 3Q FY10 234 106 (60) 70 (56) 39 (59) 15 (61) 0 (58) 916 (60) 3 80.953 24 1Q FY11 242 122 (63) 60 (65) 39 (65) 15 (64) 841 (63) 1. contracts) 898 827 1.009 8.561 [Note: Some numbers may be subject to rounding] 12 12 .Derivatives: Trading & Clearing Revenue: $34M.729 26 25 11 26 1. in contracts (days) Interest rate futures Extended settlement (shares) Structured St t d warrants t ($M) Market Share (%) Nikkei 225 futures MSCI Taiwan futures Nifty futures HFT (%) Commodities (Daily average Rubber futures Gold futures Fuel Oil futures AsiaClear® Volume (lots) cleared FFAs Energy swaps Iron Ore swaps 2Q FY11 249 111 (61) 56 (66) 48 (63) 14 (64) 7.615 7.259 11.004 11.851 (61) 7.106 NA 24 37.318 (61) 3 122.347 26.420 10.288 7.764 13.676 7.782 20.590 37 30 40.000 19 Metrics 4Q FY 10 257 131 (61) 64 (63) 42 (63) 15 (63) 0 (60) 598 (61) 3 47.873 21.155 (63) 3 41.

of terminals (Average) Products and Services ▫ Derivatives pricefeed – Low latency feed (Nov 10) – DerivativesQuote Level 1 fee revision (Apr 11) Derivatives Data No.168 57 24.842 55 25. of terminals (Average) 62 23.703 122 40.614 58 23.158 ▫ Pipeline – Non-price market data – Commodities quote 13 . 5% ($8M.607 121 36.810 57 24. 5%) Market Structure Key drivers Metrics 2Q FY11 1Q FY11 4Q FY10 3Q FY10 2Q FY10 ▫ Evolving trading strategies: g g g demand for low latency offering Securities Data No.032 122 37.Market Data: Information sales & distribution Revenue: $8M. of vendors No.816 122 38.717 No. of vendors 126 40.

) Independent software vendor (no.) Independent software vendor (no. 5% ($8M.) Order Management System (no.) Order Management System (no.) Derivatives Market Connectivity (no. of counterparties Connectivity Securities Market Connectivity (no.Member Services and Connectivity Revenue: $10M. 5%) Membership ▫ ▫ New securities members New derivatives clearing members Key drivers 2Q FY11 1Q FY11 Membership Securities members Trading Representatives Trading Members Clearing Members Derivatives members Trading Member (Individual) Trading Member (Proprietary) T di M b (P i t ) Trading Members Clearing Members 216 246 30 34 72 21 234 248 30 26 71 21 228 242 30 26 67 20 214 240 30 25 66 20 201 235 30 25 64 18 4243 30 29 4147 27 27 4095 26 26 4008 26 26 3908 24 25 Metrics 4Q FY10 3Q FY10 2Q FY10 Reach Initiative ▫ ▫ Co-location: On track for 4Q launch SGX Reach: FY 2012 SICOM members Trade / Associate Members Clearing / Non-Clearing Members: Brokers / Dealers AsiaClear® No.) (no ) Proximity Hosting 604 60 12 18 579 57 11 17 578 55 11 17 559 53 11 17 530 46 9 15 89 32 10 92 32 11 88 28 11 74 28 11 78 26 9 617 561 512 467 412 Member Services and Connectivity Revenue ($M) 8 8 8 9 10 14 [Note: Some numbers may be subject to rounding] .

032 1.848 2.124 1.53M 1.47M 2.966 3. 14% ($20M. of settlement instructions (‘000) Contracts processing Contracts processed (‘000) Depository management Depository accounts 1.365 1.991 2.169 1.Depository Services: Settlement & Depository Revenue: $23M.50M 1.49M 1. 13%) Market Structure Key drivers Metrics 2Q FY11 1Q FY11 4Q FY10 3Q FY10 2Q FY10 ▫ Settlement of institutional trades Securities settlement No.48M 1.049 1.048 Services & Asset Classes ▫ Growing securities borrowing and lending ▫ Expanding asset classes and services Depository Services Revenue ($M) 20 19 21 23 21 [Note: Some numbers may be subject to rounding] 15 15 .050 3.

791) 0 () (-) 8. of listed issues Equity securities Debt securities ETFs/ETNs Company warrants Structured warrants No.937 2.004 5. $M) Secondary listings ( p .386 553 783 1.313 75 74 312 9 902 (782) 474 (461) 372 (165) 55 (156) 12 12 (15.467 82 1. Chinese issuers Chinese issuers New equity listings Primary listings: IPOs & RTOs (Market capitalisation.132 844 288 689 782 1.647) 1.718) 0 () (-) 7.229 73 80 233 11 781 (783) 428 (460) 316 (169) 36 (154) 12 11 (3.198 58 82 301 6 758 (782) 435 (461) 285 (166) 37 (155) 7 6 (1. of Delistings: Equity securities Equity Market Capitalisation.054 522 532 414 781 1. 1Q FY11 = Jul to Sep 10.258 75 82 234 10 856 (779) 461 (457) 353 (167) 41 (155) 8 8 (670) 0 () (-) 1.Issuer Services: Listing and related services Revenue: $16M.758) 1 ( . $M) (Market capitalisation. 11%) Capital Raising ▫ Equity: New Listings Key drivers Listings No. of issuers) Singapore issuers 2Q FY11 1Q FY11 Metrics 4Q FY10 3Q FY10 2Q FY10 782 1. 9% ($16M. of transactions Issuer-related services Issuer Services Revenue ($M) 16 15 17 16 16 (Source: WFE.238) 1. $B (No.258 4.321 479 779 1. $ ) Total Equity Funds Raised ($M) Primary funds raised Secondary funds raised Corporate actions No.075 3. 2Q = Oct to Dec 10) 16 16 . ) (27.616) 1 ( .071 442 ▫ Fi d i Fixed income: B d /N t Bonds/Notes Overseas issuers excluding issuers.164 44 74 315 7 745 (781) 429 (459) 277 (166) 39 (156) 12 12 (8. ) (1.

In summary … Proposed ASX-SGX combination creating the premier Asia Pacific exchange g Market structure ▫ Continuous all day trading ▫ Remote trading members for securities market ▫ SICOM contracts on SGX platform Products & Services ▫ ▫ ▫ ▫ OTC financial derivatives GlobalQuote Nifty options Metal contracts in collaboration with London Metal Exchange Technology ▫ C l Co-location services & SGX R ti i Reach h 17 17 .

with ACCC confirmation obtained in December 2010 18 18 .Creating the Premier Asia Pacific Exchange Landmark combination at heart of global growth □ International exchange group with improved strategic positioning to capitalise on Asia Pacific growth □ Greater global relevance with enhanced growth opportunities □ Highly cash generative business model with increased resources to deliver new product & services Compelling transaction creating more value for shareholders □ EPS accretion delivering more value for shareholders □ Projected increase in absolute DPS in medium term with minimum 70% payout of NPAT □ Potential re-rating on improved growth prospects from complementary & diversified revenue re rating streams Proactive engagement with all key stakeholders □ S t Systematic engagement to identify and address l iti t concerns ti t t id tif d dd legitimate □ Constructive discussions ongoing with regulators and other key constituents □ Regulatory due process proceeding as planned.

QUESTIONS & ANSWERS .

THANK YOU .

Appendices .

73 1.62 1.91 1.28 2.93 0.Securities Trading Value vs MSCI Singapore Index 0.03 0.27 1.76 1.90 1.56 1.51 1.59 2.77 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 (Source: Bloomberg) 22 22 .37 1.19 1.36 1.97 2.21 0.68 1.27 1.53 1.91 1.

Futures & Options Volume vs Volatility Futures & Options: DAV vs Volatility 300 250 F&O DAV ('000 contracts) V 200 150 60 100 50 0 FY2006 F&O DAV ('000 contracts) 103 125 155 156 140 136 168 165 198 189 251 231 273 246 204 227 214 222 235 257 242 248 140 120 100 80 10D Volatility (%) D 40 20 0 FY2007 FY2008 FY2009 TWSE Index Nifty Index FY2010 FY2011 MSCI SG Index Nikkei225 Index (Source: Bloomberg) 23 23 .

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