Full Year 2026 ASX Ltd Earnings Call

August 13, 2026

Speaker #1: Good morning, and welcome to ASX's Result Briefing for the financial year ending 30 June 2026. My name is Darren Yip, and I'm the interim CEO of ASX.

Speaker #1: I'm pleased to be presenting these results today, alongside CFO Andrew Tobin. Firstly, I'd like to acknowledge the Gadigal People of the Oura Nation, who are the traditional custodians of the country where I'm speaking today.

Speaker #1: We recognize their continuing connection to the land and waters and pay our respects to elders past and present. We extend that respect to any First Nations people joining us today.

Speaker #1: Today's presentation will cover 4 areas, and then Andrew and I will take your questions. I'll begin with the key highlights from our full-year performance before Andrew provides a detailed review of the financial and operating results.

Speaker #1: I'll then outline our FY27 priorities and conclude with our outlook and guidance. Let's begin with highlights from FY26. FY26 was a landmark year for ASX, with the conclusion of the ASIC inquiry.

Speaker #1: The settlement of ASIC's proceedings relating to the previous chess project and a CEO transition. There was also a year in which we demonstrated operational resilience, as we saw record volumes across several of our markets.

Speaker #1: This highlights the importance of the investments that we are making in technology and operational resilience. Both of which underpin the critical market infrastructure that we provide.

Speaker #1: On top of this, we delivered for our customers by expanding our product and service offering and continuing to advocate for vibrant public markets. I will talk about these elements in more detail during the presentation, starting with our FY26 financial highlights.

Speaker #1: We delivered a strong financial result, with operating revenue increasing 13.3% to 1.25 billion, compared to the prior corresponding period. Underlying net profit after tax grew 5.2% on PCP, impacted by a higher total expenses.

Speaker #1: Statute of profit decreased 3.5% on PCP, following the impact of significant items. The board has determined a fully franked final dividend of 104.7 cents per share, taking the total FY26 dividend to 206.5 cents per share.

Speaker #1: This represents a payout ratio of 75% of underlying NPAT. Compared to 85% in the prior corresponding period, which is consistent with our guidance that the FY26 payout ratio will be at the lower end of the target range.

Speaker #1: Underlying return on equity improved to 13.7%, up 10 basis points on the PCP. The EBITDA margin decreased 180 basis points to 61%, as expense growth exceeded revenue growth.

Speaker #1: This included the cost associated with our response to the ASIC inquiry. I'll now highlight the key milestones achieved in FY26 before providing an update on the accelerate program and our technology modernization agenda.

Speaker #1: The EBITDA margin decreased 180 basis points to 61%, as expense growth exceeded revenue growth. This included costs associated with our response to the ASIC inquiry.

Darren Yip: The EBITDA margin decreased 180 basis points to 61% as expense growth exceeded revenue growth. This included the costs associated with our response to the ASIC inquiry. I will now highlight the key milestones achieved in FY26 before providing an update on the Accelerate program and our technology modernization agenda. As I said earlier, FY26 was a significant year for ASX, and we made good progress in many areas. We delivered revenue growth across all four businesses, reflecting the benefits of our diversified model. Listings had its strongest year since FY22, with 100 new entities listed and more than AUD 32 billion in quoted market capitalization added to the ASX, representing growth of 86% year on year. This was achieved amid market volatility, which also supported activity and revenue growth across our businesses during FY26.

Speaker #1: As I said earlier, FY26 was a significant year for ASX, and we made good progress in many areas. We delivered revenue growth across all 4 businesses, reflecting the benefits of our diversified model.

Speaker #1: I'll now highlight the key milestones achieved in FY26 before providing an update on the Accelerate program and our technology modernization agenda. As I said earlier, FY26 was a significant year for ASX, and we made good progress in many areas.

Speaker #1: Listings had its strongest year since FY22, with 100 new entities listed and more than 32 billion in quoted market capitalization added to the ASX.

Speaker #1: Representing growth of 86% year on year. This was achieved amid market volatility which also supported activity and revenue growth across our businesses during FY26.

Speaker #1: We delivered revenue growth across all four businesses, reflecting the benefits of our diversified model. Listings had its strongest year since FY22, with 100 new entities listed and more than $32 billion in quoted market capitalization added to the ASX.

Darren Yip: Listings had its strongest year since FY 2022, with 100 new entities listed and more than AUD 32 billion in quoted market capitalization added to the ASX, representing growth of 86% year-on-year. This was achieved amid market volatility, which also supported activity and revenue growth across our businesses during FY26.

Speaker #1: We continued to make progress on our technology modernization program, with several projects delivered successfully during the year, including release one of the chess project.

Speaker #1: Representing growth of 86% year-on-year. This was achieved amid market volatility, which also supported activity and revenue growth across our businesses during FY26. We continued to make progress on our technology modernization program, with several projects delivered successfully during the year, including Release 1 of the CHESS project.

Speaker #1: These investments are enhancing operational resilience, improving customer experience, and supporting future volume growth. We continued to strengthen our customer proposition through targeted investments in products and services.

Darren Yip: We continued to make progress on our technology modernization program, with several projects delivered successfully during the year, including Release 1 of the CHESS project. These investments are enhancing operational resilience, improving customer experience, and supporting future volume growth. We continued to strengthen our customer proposition through targeted investments in products and services. During the year, our Markets business launched options on gold ETFs and new peak electricity derivative contracts, providing participants with more targeted tools to manage risk, hedge exposures, trade in response to evolving demand patterns driven by the energy transition. We also advanced the launch of SOFR-A, Australia's first secured overnight risk-free benchmark, supporting greater market resilience, transparency, and alignment with global benchmark reforms. In our Technology and Data business, we launched a new suite of debt market activity products, providing data on repo, bond, and money market activity settled through Austraclear.

Speaker #1: During the year, our markets business launched options on gold ETFs, and new peak electricity derivative contracts providing participants with more targeted tools to manage risk, hedge exposures, and trade in response to evolving demand patterns driven by the energy transition.

Speaker #1: We also advanced the launch of Sophia, Australia's first secured overnight risk-free benchmark, supporting greater market resilience, transparency, and alignment with global benchmark reforms. In our technology and data business, we launched a new suite of debt market activity products.

Speaker #1: During the year, our markets business launched options on gold ETFs and new peak electricity derivative contracts, providing participants with more targeted tools to manage risk, hedge exposures, and trade in response to evolving demand patterns driven by the energy transition.

Speaker #1: We also advanced the launch of Sophia, Australia’s first secured overnight risk-free benchmark, supporting greater market resilience, transparency, and alignment with global benchmark reforms. In our Technology and Data business, we launched a new suite of debt market activity products, providing data on repo, bond, and money market activity settled through Austraclear.

Speaker #1: Providing data on repo, bond, and money market activity settled through OSTRACLEAR. These products enhance market transparency and help investors and intermediaries identify trends and assess risk.

Speaker #1: We also supported several initiatives to strengthen the attractiveness and competitiveness of Australia's listed market. We published a consultation and proposed listing rule amendments that seek to enhance shareholder protection for dilutive acquisitions and changes in admission status by dual listed entities.

Speaker #1: These products enhance market transparency and help investors and intermediaries identify trends and assess risk. We also supported several initiatives to strengthen the attractiveness and competitiveness of Australia's listed market.

Darren Yip: These products enhance market transparency and help investors and intermediaries identify trends and assess risk. We also supported several initiatives to strengthen the attractiveness and competitiveness of Australia's listed market. We published a consultation on proposed listing rule amendments that seek to enhance shareholder protection for dilutive acquisitions and changes in admission status by dual-listed entities. We also established the Advisory Group on Corporate Governance, which recently published the draft fifth edition of the corporate governance principles and recommendations for public consultation. Together, these proposed reforms are designed to support stronger governance, investor confidence, and a vibrant listed market. As I mentioned earlier, there was also heightened regulatory engagement during the year, including the ASIC inquiry and the ASIC legal proceedings relating to the prior CHESS project, both of which have now concluded.

Speaker #1: We also established the advisory group on corporate governance. Which recently published the draft fifth edition of the Corporate Governance Principles and Recommendations for Public Consultation.

Speaker #1: We published a consultation and proposed listing rule amendments that seek to enhance shareholder protection for dilutive acquisitions and changes in admission status by dual-listed entities.

Speaker #1: Together, these proposed reforms are designed to support stronger governance, investor confidence, and a vibrant listed market. As I mentioned earlier, there was also heightened regulatory engagement during the year, including the ASIC inquiry, and the ASIC legal proceedings relating to the prior chess project.

Speaker #1: We also established the Advisory Group on Corporate Governance, which recently published the draft fifth edition of the Corporate Governance Principles and Recommendations for public consultation.

Speaker #1: Together, these proposed reforms are designed to support stronger governance, investor confidence, and a vibrant listed market. As I mentioned earlier, there was also heightened regulatory engagement during the year, including the ASIC inquiry and the ASIC legal proceedings relating to the prior CHESS project.

Speaker #1: Both of which have now concluded. The progress we delivered across a range of strategic initiatives in FY26 has created strong momentum heading into FY27.

Speaker #1: Last December, we committed to a strategic set of initiatives which included the need to reset the accelerate program by the end of June. In response to the publication of ASIC's interim inquiry report.

Speaker #1: Both of which have now concluded. The progress we delivered across a range of strategic initiatives in FY26 has created strong momentum heading into FY27.

Darren Yip: The progress we delivered across a range of strategic initiatives in FY26 has created strong momentum heading into FY27. Last December, we committed to a strategic set of initiatives, which included the need to reset the Accelerate program by the end of June, in response to the publication of ASIC's interim inquiry report. On 27 February 2026, we provided ASIC with our commitments plan, outlining how we would deliver on the commitments we made. Accelerate program aims to position ASX as a trusted steward of critical market infrastructure with risk management, resilience, and operational excellence embedded across the organization. This is being driven by a multi-year enterprise-wide transformation that is structured around five core workstreams, with target states now agreed with ASIC and the RBA. We have also established governance as a new workstream under the program, incorporating the governance enhancements from our commitments plan.

Speaker #1: On the 27th of February 2026, we provided ASIC with our commitments plan, outlining how we would deliver on the commitments we made. Accelerate program aims to position ASX as a trusted steward of critical market infrastructure, with risk management, resilience, and operational excellence embedded across the organization.

Speaker #1: Last December, we committed to a strategic set of initiatives, which included the need to reset the Accelerate program by the end of June, in response to the publication of ASIC's interim inquiry report.

Speaker #1: On the 27th of February 2026, we provided ASIC with our commitments plan, outlining how we would deliver on the commitments we made. The Accelerate program aims to position ASX as a trusted steward of critical market infrastructure, with risk management, resilience, and operational excellence embedded across the organization.

Speaker #1: This has been driven by a multi-year enterprise-wide and transformation that is structured around 5 core workstreams with target states now agreed with ASIC and the RBA.

Speaker #1: We've also established governance as a new workstream under the program, incorporating the governance enhancements from our commitments plan. It also includes additional initiatives to deliver strong and effective governance arrangements that balance the interests of all stakeholders.

Speaker #1: This has been driven by a multi-year, enterprise-wide transformation that is structured around five core workstreams, with target states now agreed with ASIC and the RBA.

Speaker #1: The accelerate program is supported by adjacent initiatives including data management, technology resilience, and stakeholder engagement, which are the key enablers of our broader transformation agenda.

Darren Yip: It also includes additional initiatives to deliver strong and effective governance arrangements that balance the interests of all stakeholders. The Accelerate program is supported by adjacent initiatives including data management, technology resilience, and stakeholder engagement, which are the key enablers of our broader transformation agenda. We are establishing the necessary frameworks, systems, and processes across the organization and then embedding them to ensure they are effective, sustainable, and integrated into day-to-day operations. As the reset of Accelerate was only recently agreed with our regulators, we are predominantly in the design phase, although we expect to transition into implementation as the program continues. In fact, we have already made progress in several workstreams. Under the governance workstream, we have transitioned to fully independent CS Boards comprised solely of non-ASX directors, further strengthening the operational independence and governance of our clearing and settlement business.

Speaker #1: We are establishing the necessary frameworks, systems, and processes across the organization and then embedding them to ensure they are effective, sustainable, and integrated into day-to-day operations.

Speaker #1: The Accelerate program is supported by adjacent initiatives, including data management, technology resilience, and stakeholder engagement, which are the key enablers of our broader transformation agenda.

Speaker #1: As the reset of accelerate was only recently agreed with our regulators, we are predominantly in the design phase, although we expect to transition into implementation as the program continues.

Speaker #1: We are establishing the necessary frameworks, systems, and processes across the organization, and then embedding them to ensure they are effective, sustainable, and integrated into day-to-day operations.

Speaker #1: In fact, we have already made progress in several workstreams. Under the governance workstream, we have transitioned to fully independent CS boards comprised solely of non-ASX directors, further strengthening the operational independence and governance of our clearing and settlement business.

Speaker #1: As the reset of Accelerate was only recently agreed with our regulators, we are predominantly in the design phase, although we expect to transition into implementation as the program continues.

Speaker #1: We have established dedicated audit and supervision committees and risk committees of the clearing and settlement boards, and enhanced our group support agreement. The clearing and settlement board has recently appointed Lisa Wade as an independent director, further strengthening governance and supporting our regulatory commitments.

Speaker #1: We have established dedicated audit and supervision committees, as well as risk committees, of the clearing and settlement boards and enhanced our group support agreement. The clearing and settlement board has recently appointed Lisa Wade as an independent director, further strengthening governance and supporting our regulatory commitments.

Darren Yip: We have established dedicated audit and supervision committees and risk committees of the clearing and settlement boards and enhanced our group support agreement. The clearing and settlement board has recently appointed Lisa Wade as an independent director, further strengthening governance and supporting our regulatory commitments. Under the risk transformation workstream, we have revised our enterprise risk management framework and risk appetite statement, which is currently being implemented across the organization. For culture and leadership, we have introduced a comprehensive leadership program for all people leaders strengthening leadership capability and supporting the delivery of our strategic objectives. Successful delivery and embedment of Accelerate and the adjacent initiatives in the organization will position ASX to seek the release or reduction of the AUD 150 million capital charge agreed under our commitments plan with ASIC, which is subject to their assessment and approval. Our progress against the Accelerate program will be independently assured by Promontory Financial Group.

Speaker #1: Under the risk transformation workstream, we have revised our enterprise risk management framework and risk appetite statement, which is currently being implemented across the organization.

Speaker #1: For culture and leadership, we have introduced a comprehensive leadership program for all people leaders. Strengthening leadership capability and supporting the delivery of our strategic objectives.

Speaker #1: Under the risk transformation workstream, we have revised our enterprise risk management framework and risk appetite statement, which are currently being implemented across the organization.

Speaker #1: Successful delivery and embedment of accelerate and the adjacent initiatives in the organization will position ASX to seek the release or reduction of the $150 million capital charge agreed under our commitments plan with ASIC, which is subject to their assessment and approval.

Speaker #1: For culture and leadership, we have introduced a comprehensive leadership program for all people leaders, strengthening leadership capability and supporting the delivery of our strategic objectives.

Speaker #1: Successful delivery and embedment of Accelerate and the adjacent initiatives in the organization will position ASX to seek the release or reduction of the $150 million capital charge agreed under our commitments plan with ASIC, which is subject to their assessment and approval.

Speaker #1: Our progress against the accelerate program will be independently assured by promontory. With the accelerate program reset now agreed, our focus is firmly on execution delivering the agreed outcomes and embedding sustainable change across the enterprise in an enduring and efficient manner.

Speaker #1: Our progress against the Accelerate program will be independently assured by Promontory. With the Accelerate program reset now agreed, the focus is firmly on execution—delivering the agreed outcomes and embedding sustainable change across the enterprise in an enduring and efficient manner.

Speaker #1: We continue to execute on our technology modernization roadmap, with several key projects delivered over the past 6 months. In June, our trade accept system went live, which supports the capture of off-market trades cleared through our derivatives clearinghouse.

Darren Yip: With Accelerate program reset now agreed, our focus is firmly on execution, delivering the agreed outcomes, and embedding sustainable change across the enterprise in an enduring and efficient manner. We continued to execute on our technology modernization roadmap with several key projects delivered over the past six months. In June, our TradeAccept system went live, which supports the capture of off-market trades cleared through our derivatives clearinghouse. We also continued the rollout of upgraded network infrastructure to customer sites. This investment will deliver a more resilient and modern network foundation for our trading platforms, supporting future enhancements to the cash market trading platform and the replacement of our derivatives trading system. The replacement of our futures clearing system, a key component of our derivatives clearing project, has entered the testing phase following the launch of the industry test environment last month.

Speaker #1: We continue to execute on our technology modernization roadmap, with several key projects delivered over the past six months. In June, our Trade Accept system went live, which supports the capture of off-market trades cleared through our derivatives clearinghouse.

Speaker #1: We also continued the rollout of upgraded network infrastructure to customer sites. This investment will deliver a more resilient and modern network foundation for our trading platforms.

Speaker #1: Supporting future enhancements to the cash market trading platform and the replacement of our derivatives trading system. The replacement of our futures clearing system a key component of our derivatives clearing project has entered the testing phase following the launch of the industry test environment last month.

Speaker #1: Supporting future enhancements to the cash market trading platform and the replacement of our derivatives trading system. The replacement of our futures clearing system, a key component of our derivatives clearing project, has entered the testing phase following the launch of the industry test environment last month.

Speaker #1: A major milestone during the year was the successful delivery of chess release one in April on time and within guidance. The platform provides a more resilient, secure, and scalable foundation for cash market clearing.

Speaker #1: Underpinned by modern cloud and data capabilities. It established enterprise technology foundations including cloud-based hosting, data integration, and observability capabilities. We continue to progress chess release two with the second of five code drops deployed to the industry test environment last month.

Speaker #1: A major milestone during the year was the successful delivery of CHESS Release One in April, on time and within guidance. The platform provides a more resilient, secure, and scalable foundation for cash market clearing.

Darren Yip: A major milestone during the year was the successful delivery of CHESS Release 1 in April on time and within guidance. The platform provides a more resilient, secure, and scalable foundation for cash market clearing, underpinned by modern cloud and data capabilities. It established enterprise technology foundations, including cloud-based hosting, data integration, and observability capabilities. We continue to progress CHESS Release 2 with the second of five code drops deployed to the industry test environment last month. The program is targeting completion of the primary build by the end of the 2027 calendar year, providing sufficient time for industry testing and operational readiness ahead of the targeted 2029 go live. I will now hand over to Andrew to provide a detailed overview of our financial results.

Speaker #1: Underpinned by modern cloud and data capabilities, it established enterprise technology foundations, including cloud-based hosting, data integration, and observability capabilities. We can progress CHESS Release Two with the second of five code drops deployed to the industry test environment last month.

Speaker #1: The program is targeting completion of the primary build by the end of the 2027 calendar year, providing sufficient time for industry testing and operational readiness ahead of the targeted 2029 go-live.

Speaker #1: I will now hand over to Andrew to provide a detailed overview of our financial results.

Speaker #2: Thanks Darren and good morning everyone. As Darren said, we delivered strong operating revenue in FY26, demonstrating the quality of our portfolio of businesses. Operating revenue excuse me was 1.25 billion dollars, which was an increase of 13.3% compared to FY25.

Speaker #1: I will now hand over to Andrew to provide a detailed overview of our financial results.

Speaker #2: Thanks, Darren, and good morning, everyone. As Darren said, we delivered strong operating revenue in FY26, demonstrating the quality of our portfolio of businesses. Operating revenue, excuse me, was $1.25 billion, which was an increase of 13.3% compared to FY25.

Andrew Tobin: Thanks, Darren, and good morning, everyone. As Darren said, we delivered strong operating revenue in FY26, demonstrating the quality of our portfolio of businesses. Operating revenue was AUD 1.25 billion, which was an increase of 13.3% compared to FY25. Total expenses for the year was AUD 557.4 million, growth of 21.1% on the PCP. Excluding the additional expenses relating to the ASIC inquiry, total expenses growth was 14.4% on the PCP. Underlying net profit after tax was up 5.2% as the strong revenue growth was partially offset by higher total expenses and lower net interest income. ASX's statutory net profit after tax was down by 3.5%, following the impact of significant items, which includes the settlement of the ASIC legal proceedings for CHESS Replacement Partnership Program milestone expense, and the loss on the sale of our shareholding in Sympli. Our EBITDA margin was 61%, down 180 basis points for the year.

Speaker #2: Total expenses for the year was 557.4 million dollars, growth of 21.1% on the PCP. Excluding the additional expenses relating to the ASIC inquiry, total expenses growth was 14.4% on the PCP.

Speaker #2: Total expenses for the year were $557.4 million, a growth of 21.1% on the PCP. Excluding the additional expenses relating to the ASIC inquiry, total expenses growth was 14.4% on the PCP.

Speaker #2: Underlying net profit after tax was up 5.2% as the strong revenue growth was partially offset by higher total expenses and lower net interest income.

Speaker #2: ASX is statutory net profit after tax was down by 3.5% following the impact of significant items, which includes the settlement of the ASIC legal proceedings for chess replacement partnership program milestone expense and the loss on the sale of our shareholding in Simply.

Speaker #2: Underlying net profit after tax was up 5.2%, as strong revenue growth was partially offset by higher total expenses and lower net interest income.

Speaker #2: ASX's statutory net profit after tax was down by 3.5%, following the impact of significant items, which include the settlement of the ASIC legal proceedings, the CHESS replacement partnership program milestone expense, and the loss on the sale of our shareholding in Simply.

Speaker #2: Our EBITDA margin was 61% down 180 basis points for the year, and excluding the expenses relating to the ASIC inquiry, our EBITDA margin was 63.4% up by 60 basis points.

Speaker #2: Growth in underlying earnings per share to 275.8 cents is broadly consistent with the trend in underlying net profit after tax. Underlying ROE generated in the year was 13.7% up 10 basis points on the PCP.

Speaker #2: Our EBITDA margin was 61%, down 180 basis points for the year, and excluding the expenses relating to the ASIC inquiry, our EBITDA margin was 63.4%, up by 60 basis points.

Andrew Tobin: Excluding the expenses relating to the ASIC inquiry, our EBITDA margin was 63.4%, up by 60 basis points. Growth in underlying earnings per share to 275.8 cents is broadly consistent with the trend in underlying net profit after tax. Underlying ROE generated in the year was 13.7%, up 10 basis points on the PCP. Now turning to the business unit revenue outcomes, starting with listings. We recognize the revenue derived from initial listings and secondary raisings over 5 years and 3 years respectively, and so the revenue outcomes reported mainly reflect prior period activity. This is shown in the bar charts on the slide. Revenue of AUD 215.2 million, representing growth of 3.5%, was primarily driven by annual listing fees and secondary raisings.

Speaker #2: Now turning to the business unit revenue outcomes starting with listings. We recognize the revenue derived from initial listings and secondary raisings over five years and three years respectively and so the revenue outcomes reported mainly reflect prior period activity.

Speaker #2: This is shown in the bar charts on the slide. Revenue of 215.2 million dollars representing growth of 3.5% was primarily driven by annual listing fees and secondary raisings.

Speaker #2: Now turning to the business unit revenue outcomes, starting with Listings. We recognize the revenue derived from initial listings and secondary raisings over five years and three years, respectively, and so the revenue outcomes reported mainly reflect prior period activity.

Speaker #2: Quoted market capitalization of initial listings was 32.6 billion dollars up 85.5% compared to FY25 with total net new capital quoted for the year of 37.1 billion dollars up 4.5% compared to the PCP reflecting stronger listings activity.

Speaker #2: This is shown in the bar charts on the slide. Revenue of $215.2 million, representing growth of 3.5%, was primarily driven by annual listing fees and secondary raisings.

Speaker #2: Quoted market capitalization of initial listings was $32.6 billion, up 85.5% compared to FY25, with total net new capital quoted for the year of $37.1 billion, up 4.5% compared to the PCP, reflecting stronger listings activity.

Andrew Tobin: Quoted market capitalization of initial listings was AUD 32.6 billion, up 85.5% compared to FY25, with total net new capital quoted for the year of AUD 37.1 billion, up 4.5% compared to the PCP, reflecting stronger listings activity. Moving now to the Markets business. Revenue of AUD 414.1 million, representing growth of 18.6%, was driven by strong activity across our markets. Futures and OTC revenue growth of 18.4% was driven by record volumes in interest rate futures and higher volumes in our commodities futures business. Lower average rebates per contract and stronger electricity futures volumes were the key drivers of a 5 cent increase in the average price per contract in the year. Cash market trading revenue growth of 24.2% was driven by a 22.5% increase in total ASX on-market value traded, primarily due to ongoing global market volatility.

Speaker #2: Moving now to the markets business. Revenue of 414.1 million dollars representing growth of 18.6% was driven by strong activity across our markets. Futures and OTC revenue growth of 18.4% was driven by record volumes in interest rate futures and higher volumes in our commodities futures business.

Speaker #2: Moving now to the Markets business. Revenue of $414.1 million, representing growth of 18.6%, was driven by strong activity across our markets. Futures and OTC revenue growth of 18.4% was driven by record volumes in interest rate futures and higher volumes in our commodities futures business.

Speaker #2: Lower average rebates per contract and stronger electricity futures volumes were the key drivers of a 5 cent increase in the average price per contract in the year.

Speaker #2: Cash market trading revenue growth of 24.2% was driven by a 22.5% increase in total ASX on market value traded primarily due to ongoing global market volatility.

Speaker #2: Lower average rebates per contract and stronger electricity futures volumes were the key drivers of a $0.05 increase in the average price per contract in the year.

Speaker #2: ASX's share of on market cash market trading averaged 88% for the period which was consistent with the PCP. Equity options revenue was down 1.2% reflecting lower trading activity in single stock options.

Speaker #2: Cash market trading revenue growth of 24.2% was driven by a 22.5% increase in total ASX on-market value traded, primarily due to ongoing global market volatility.

Speaker #2: Now looking at the technology and data business. Technology and data had another strong period with total revenue of 297.6 million dollars up 8% compared to PCP.

Speaker #2: ASX's share of on-market cash market trading averaged 88% for the period, which was consistent with the PCP. Equity options revenue was down 1.2%, reflecting lower trading activity in single stock options.

Andrew Tobin: ASX's share of on-market cash market trading averaged 88% for the period, which was consistent with the PCP. Equity options revenue was down 1.2%, reflecting lower trading activity in single stock options. Now looking at the Technology and Data business. Technology and Data had another strong period with total revenue of AUD 297.6 million, up 8% compared to PCP. Information services revenue growth of 9% was primarily driven by strong demand for data across equities and derivatives markets. Technical services revenue was up 6.3%, primarily driven by high demand for infrastructure in our Australian Liquidity Centre and connectivity services. Finally, moving on to our fourth business segment, Securities and Payments. We saw revenue growth of 19.4% to AUD 327.7 million in FY26, with strong performance from all parts of this business.

Speaker #2: Information services revenue growth of 9% was primarily driven by strong demand for data across equities and derivatives markets. Technical services revenue was up 6.3% primarily driven by high demand for infrastructure in our Australian liquidity data center and connectivity services.

Speaker #2: Now, looking at the Technology and Data business: Technology and Data had another strong period, with total revenue of $297.6 million, up 8% compared to the PCP.

Speaker #2: Information services revenue growth of 9% was primarily driven by strong demand for data across equities and derivatives markets. Technical services revenue was up 6.3%, primarily driven by high demand for infrastructure in our Australian Liquidity Data Centre and connectivity services.

Speaker #2: And finally moving on to our fourth business segment, securities and payments. We saw revenue growth of 19.4% to 327.7 million dollars in FY26 with strong performance from all parts of this business.

Speaker #2: Issuer services revenue grew by 13% driven by primary market facilitation fees and a high number of chess paper statements issued reflecting higher activity in cash markets.

Speaker #2: And finally, moving on to our fourth business segment, Securities and Payments. We saw revenue growth of 19.4%, to $327.7 million in FY26, with strong performance from all parts of this business.

Speaker #2: Equity post-trade services revenue also benefited from higher activity in cash markets increasing by 24.3%. This is the first financial year that issuer services and equity post-trade services are subject to the new building block pricing model under this model ASX's revenue requirement is derived by applying a regulated return to the efficient cost of providing these services.

Speaker #2: Issuer services revenue grew by 13%, driven by primary market facilitation fees and a high number of CHESS paper statements issued, reflecting higher activity in cash markets.

Andrew Tobin: Issuer services revenue grew by 13%, driven by primary market facilitation fees and a higher number of CHESS paper statements issued, reflecting higher activity in cash markets. Equity post-trade services revenue also benefited from higher activity in cash markets, increasing by 24.3%. This is the first financial year that issuer services and equity post-trade services are subject to the new building block pricing model. Under this model, ASX's revenue requirement is derived by applying a regulated return to the efficient cost of providing these services. The revenue figures announced today are net of any over or under return experienced in the period, and we have accrued an over recovery amount of AUD 13 million in FY26, which will be rebated to our customers. We provide a more detailed breakdown of this revenue calculation in the appendix of the investor presentation. Austraclear revenue grew by 15.8% compared to last year.

Speaker #2: Equity post-trade services revenue also benefited from higher activity in cash markets, increasing by 24.3%. This is the first financial year that issuer services and equity post-trade services are subject to the new building block pricing model. Under this model, ASX's revenue requirement is derived by applying a regulated return to the efficient cost of providing these services.

Speaker #2: The revenue figures announced today are net of any over or under return experienced in the period. And we have accrued an over recovery amount of 13 million dollars in FY26 which will be rebated to our customers.

Speaker #2: We provide a more detailed breakdown of this revenue calculation in the appendix of the investor presentation. Ostra Clear revenue grew by 15.8% compared to last year it benefited from strong debt market activity during the period with spot issuance growing 10.5% to 3.3 trillion dollars.

Speaker #2: The revenue figures announced today are net of any over- or under-return experience in the period. We have accrued an over-recovery amount of $13 million in FY26, which will be rebated to our customers.

Speaker #2: We provide a more detailed breakdown of this revenue calculation in the appendix of the investor presentation. AUSTRACLEA revenue grew by 15.8% compared to last year. It benefited from strong debt market activity during the period, with spot issuance growing 10.5% to $3.3 trillion.

Speaker #2: Ostra Clear revenue also includes the net operating loss of from Simply of 8.3 million dollars. As previously announced ASX disposed of its interest in Simply late in FY26 for a nominal amount and so we will no longer recognize our share of its operating losses in future periods.

Andrew Tobin: It benefited from strong debt market activity during the period, with spot issuance growing 10.5% to AUD 3.3 trillion. Austraclear revenue also includes the net operating loss from Sympli of AUD 8.3 million. As previously announced, ASX disposed of its interest in Sympli late in FY26 for a nominal amount, and so we will no longer recognize our share of its operating losses in future periods. Turning now to expenses. Total expenses for the year were AUD 557.4 million, up 21.1% on the PCP. Operating expenses relating to our response to the Australian Securities and Investments Commission inquiry were AUD 30.8 million in the year and within our guidance range. Setting aside these additional costs, total expense growth was 14.4% or 11.4%, excluding depreciation and amortization. Employee expenses were up by 11.1%, primarily due to growth in average permanent and contractor headcounts from 1,312 in FY25 to 1,393 in FY26.

Speaker #2: AUStraclea revenue also includes the net operating loss from Simply of $8.3 million. As previously announced, ASX disposed of its interest in Simply late in FY26 for a nominal amount, and so we will no longer recognize our share of its operating losses in future periods.

Speaker #2: Turning now to expenses. Total expenses for the year were 557.4 million dollars up 21.1% on the PCP. Operating expenses relating to our response to the ASIC inquiry were 30.8 million dollars in the year and within our guidance range.

Speaker #2: Turning now to expenses. Total expenses for the year were $557.4 million, up 21.1% on the PCP. Operating expenses relating to our response to the ASIC inquiry were $30.8 million in the year and within our guidance range.

Speaker #2: Setting aside these additional costs total expense growth was 14.4% or 11.4% excluding depreciation and amortization. Employee expenses were up by 11.1% primarily due to growth in average permanent and contractor headcount from 1312 in FY25 to 1393 in FY26.

Speaker #2: Setting aside these additional costs, total expense growth was 14.4%, or 11.4% excluding depreciation and amortization. Employee expenses were up by 11.1%, primarily due to growth in average permanent and contractor headcount from 1,312 in FY25 to 1,393 in FY26.

Speaker #2: The headcount increase is primarily driven by our investment in the accelerate program and support and maintenance of upgraded technology platforms post-delivery. Technology expenses were higher primarily due to higher licensing fees and cost related to the technology modernization program with more projects going live in the year.

Speaker #2: The headcount increase is primarily driven by our investment in the Accelerate program, and by the support and maintenance of upgraded technology platforms post-delivery. Technology expenses were higher, primarily due to higher licensing fees and costs related to the technology modernization program, with more projects going live in the year.

Andrew Tobin: The headcount increase is primarily driven by our investment in the Accelerate Program and support and maintenance of upgraded technology platforms post-delivery. Technology expenses were higher, primarily due to higher licensing fees and costs related to the technology modernization program, with more projects going live in the year. Growth in administration expenses was driven by higher consultancy spend as part of the Accelerate Program, and we reported depreciation and amortization of AUD 67.8 million, up 40.1%, as more elements of our new technology systems went live. Turning now to total expenses growth. In May, we provided FY27 total expenses growth guidance of between 18% and 21% compared to FY26, which we reconfirm today. This includes a circa 5% contribution from depreciation and amortization. There are three key drivers of this growth range.

Speaker #2: Growth in administration expenses was driven by higher consultancy spend as part of the accelerate program and we reported depreciation and amortization of 67.8 million dollars up 40.1% as more elements of our new technology systems went live.

Speaker #2: Growth in administration expenses was driven by higher consultancy spend as part of the Accelerate Program, and we reported depreciation and amortization of $67.8 million, up 40.1%, as more elements of our new technology systems went live.

Speaker #2: Turning now to total expenses growth. In May we provided FY27. Growth guidance of between 18 and 21% compared to FY26 which we reconfirmed today.

Speaker #2: This includes a circa 5% contribution from depreciation and amortization. There are three key drivers of this growth range. The most significant factor is technology modernization which is impacted by license fees, support and maintenance costs and technology cost inflation as more of our technology platforms go live and move into the cloud.

Speaker #2: Turning now to total expenses growth. In May, we provided FY27 total expenses growth guidance of between 18% and 21% compared to FY26, which we reconfirmed today.

Speaker #2: This includes an approximately 5% contribution from depreciation and amortization. There are three key drivers of this growth range. The most significant factor is technology modernization, which is impacted by license fees, support and maintenance costs, and technology cost inflation, as more of our technology platforms go live and move into the cloud.

Speaker #2: Chess release one including our enterprise data and integration platforms are recent examples of this. The technology cost inflation that we are experiencing reflects industry trends and is expected to persist beyond FY27.

Andrew Tobin: The most significant factor is technology modernization, which is impacted by license fees, support and maintenance costs, and technology cost inflation as more of our technology platforms go live and move into the cloud. CHESS Release 1, including our enterprise data and integration platforms, are recent examples of this. The technology cost inflation that we are experiencing reflects industry trends and is expected to persist beyond FY27. The second factor is elevated investment in remediation and organizational transformation, which includes the Accelerate Program. As Darren mentioned earlier, this is a multi-year program with associated costs expected to continue beyond FY27. Finally, we are making targeted investments in customer-driven growth opportunities and organizational efficiency initiatives, which Darren will talk about shortly.

Speaker #2: The second factor is elevated investment in remediation and organizational transformation which includes the accelerate program. As Darren mentioned earlier this is a multi-year program with associated costs expected to continue beyond FY27.

Speaker #2: CHESS Release 1, including our enterprise data and integration platforms, are recent examples of this. The technology cost inflation that we are experiencing reflects industry trends and is expected to persist beyond FY27.

Speaker #2: Finally we are making targeted investments in customer-driven growth opportunities and organizational efficiency initiatives which Darren will talk about shortly. The increase in DNA in FY27 is driven by the go-live of our technology platforms including the full-year impact of chess release one and moving our Sydney headquarters to a new building.

Speaker #2: The second factor is elevated investment in remediation and organizational transformation, which includes the Accelerate program. As Darren mentioned earlier, this is a multi-year program with associated costs expected to continue beyond FY27.

Speaker #2: Finally, we are making targeted investments in customer-driven growth opportunities and organizational efficiency initiatives, which Darren will talk about shortly. The increase in D&A in FY27 is driven by the go-live of our technology platforms, including the full-year impact of CHESS Release 1 and moving our Sydney headquarters to a new building.

Speaker #2: Now moving to capital expenditure. Capex for the year was 179.6 million dollars primarily driven by our technology modernization program with the chess project accounting for approximately half of this spend.

Andrew Tobin: The increase in D&A in FY27 is driven by the go-live of our technology platforms, including the full year impact of CHESS Release 1.0 and moving our Sydney headquarters to a new building. Moving to capital expenditure. CapEx for the year was AUD 179.6 million, primarily driven by our technology modernization program, with the CHESS project accounting for approximately half of this spend. As announced in May, we are guiding for FY27 CapEx to be between AUD 180 and AUD 200 million, which includes the impact of technology cost inflation and investments to expand our existing product and services offering in response to customer demand. A CapEx range of AUD 170 to AUD 190 million is forecast in FY28 as we continue to invest in our technology modernization program. This reflects the multi-year delivery profiles of our major projects, but noting the inherent delivery risks in the technology program may impact this guidance.

Speaker #2: As announced in May we are guiding for FY27 capex to be between 180 and 200 million dollars which includes the impact of technology cost inflation and investments to expand our existing product and services offering in response to customer demand.

Speaker #2: Now, moving to capital expenditure. Capex for the year was $179.6 million, primarily driven by our technology modernization program, with the CHESS project accounting for approximately half of this. Announced in May, we are guiding for FY27 capex to be between $180 and $200 million, which includes the impact of technology cost inflation and investments to expand our existing product and service offerings in response to customer demand.

Speaker #2: Our capex range of 170 to 190 million dollars is forecast in FY28 as we continue to invest in our technology modernization program. This reflects the multi-year delivery profiles of our major projects but noting the inherent delivery risks in the technology program may impact this guidance.

Speaker #2: Our capex range of $170 million to $190 million is forecast in FY28 as we continue to invest in our technology modernization program. This reflects the multi-year delivery profiles of our major projects, but noting the inherent delivery risks in the technology program may impact this guidance.

Speaker #2: We also expect an average depreciation and amortization schedule of 5 to 10 years for these major projects once they go live noting that the chess project is is expected to be amortized over 10 years.

Speaker #2: Moving now to net interest income. Total net interest income for the year saw a decline of 15.7% compared to the PCP primarily driven by higher interest expense on leases.

Speaker #2: We also expect an average depreciation and amortization schedule of 5 to 10 years for these major projects once they go live, noting that the CHESS project is expected to be amortized over 10 years.

Andrew Tobin: We also expect an average depreciation and amortization schedule of five to 10 years for these major projects once they go live, noting that the CHESS project is expected to be amortized over 10 years. Moving now to net interest income. Total net interest income for the year saw a decline of 15.7% compared to the PCP, primarily driven by higher interest expense on leases. Net interest income on ASX group cash was down by 9.7%, impacted by a lower RBA target cash rate in the period. Financing interest expense was 6.4% lower, largely driven by costs related to our corporate bond. Lease interest expense primarily relates to the lease of our new headquarters in Sydney, which commenced on 1 October last year, and also equipment leases. Net interest earned on the collateral balances was down 4.3% compared to the PCP.

Speaker #2: Net interest income on ASX group cash was down by 9.7% impacted by a lower RBA target cash rate in the period. Financing interest expense was 6.5 6.4% lower largely driven by costs related to our corporate bond.

Speaker #2: Moving now to net interest income. Total net interest income for the year saw a decline of 15.7% compared to the PCP, primarily driven by higher interest expense on leases.

Speaker #2: Lease interest expense primarily relates to the lease of our new headquarters in Sydney which commenced on 1 October last year and also equipment leases.

Speaker #2: Net interest income on ASX Group cash was down by 9.7%, impacted by a lower RBA target cash rate, and was 6.4% lower, largely driven by costs related to our corporate bond.

Speaker #2: Net interest earned on the collateral balances was down 4.3% compared to the PCP this reflects lower average collateral balances of 11.9 billion dollars in the year as we saw market volatility drive participant activity from directional to long and short which increased the netting of their exposure.

Speaker #2: Lease interest expense primarily relates to the lease of our new headquarters in Sydney, which commenced on 1 October last year, and also to equipment leases.

Speaker #2: Net interest earned on the collateral balances was down 4.3% compared to the PCP. This reflects lower average collateral balances of $11.9 billion in the year, as we saw market volatility drive participant activity from directional to long and short, which increased the netting of their exposure.

Speaker #2: The average investment spread on these balances was 16 basis points which was stable compared to last year and we expect this spread to stay around the current levels for the remainder of the first half of FY27.

Andrew Tobin: This reflects lower average collateral balances of AUD 11.9 billion in the year, as we saw market volatility drive participant activity from directional to long and short, which increased the netting of their exposure. The average investment spread on these balances was 16 basis points, which was stable compared to last year, and we expect this spread to stay around the current levels for the remainder of the H1 of FY27. We currently hold available cash and short-term investments of AUD 250 million above the financial resource requirements of our licensed entities. This includes default and non-default requirements to support our clearing and settlement licenses, as well as financial resources to support the group's five other licenses, including its two financial markets licenses. We increased our default fund contribution by AUD 50 million during the year to support the cash equities and exchange traded options clearing business.

Speaker #2: We currently hold available cash and short-term investments of 250 million dollars above the financial resource requirements of our licensed entities. This includes default and non-default requirements to support our clearing and settlement licenses as well as financial resources to support the group's five other licenses including its two financial markets licenses.

Speaker #2: The average investment spread on these balances was 16 basis points, which was stable compared to last year, and we expect this spread to stay around the current levels for the remainder of the first half of FY27.

Speaker #2: We currently hold available cash and short-term investments of $250 million above the financial resource requirements of our licensed entities. This includes default and non-default requirements to support our clearing and settlement licenses, as well as financial resources to support the group's five other licenses, including its two financial markets licenses.

Speaker #2: We increased our default fund contribution by 50 million dollars during the year to support the cash equities and exchange traded options clearing business. Other financial resource requirements which were which are calculated primarily based on revenue and expenses for the licensed entities also increased by a similar amount.

Speaker #2: We increased our default fund contribution by $50 million during the year to support the cash equities and exchange-traded options clearing business. Other financial resource requirements, which were calculated primarily based on revenue and expenses for the licensed entities, also increased by a similar amount.

Speaker #2: We are in the process of accumulating 150 million dollars above the 31 December 2025 net tangible asset value by 30 June 2027. As at the end of FY26 we have 132.9 million dollars of capital to be accumulated as the current period was impacted by the significant item loss of 51.5 million dollars.

Andrew Tobin: Other financial resource requirements, which are calculated primarily based on revenue and expenses for the licensed entities, also increased by a similar amount. We are in the process of accumulating AUD 150 million above the 31 December 2025 net tangible asset value by 30 June 2027. As at the end of FY26, we have AUD 132.9 million of capital to be accumulated as the current period was impacted by the significant item loss of AUD 51.5 million. We have the capital settings to meet this target through our dividend policy. The board has determined a final dividend of AUD 1.047 per share, which, as previously indicated, is at the bottom end of our dividend payout ratio range of between 75% and 85% of underlying NPAT. We are also applying a 2.5% discount to our existing dividend reinvestment plan.

Speaker #2: We are in the process of accumulating $150 million above the 31 December 2025 net tangible asset value by 30 June 2027. As at the end of FY26, we have $132.9 million of capital to be accumulated, as the current period was impacted by this significant item loss of $51.5 million.

Speaker #2: We have the capital settings to meet this target through our dividend policy. The board has determined a final dividend of 104.7 cents per share which has previously stated indicated is at the bottom end of our dividend payout ratio range of between 75 and 85 percent of underlying NPAT.

Speaker #2: We have the capital settings to meet this target through our dividend policy. The board has determined a final dividend of 104.7 cents per share, which, as previously stated, is at the bottom end of our dividend payout ratio range of between 75 and 85 percent of underlying NPAT.

Speaker #2: We are also applying a two and a half percent discount to our existing dividend reinvestment plan. Depending on the participation rates in the DRP we also have the flexibility to partially underwrite the DRP to achieve our capital targets.

Speaker #2: From 30 June 2029 ASX will also need to hold sufficient net tangible assets to meet the financial resource requirements for its two licensed financial markets unless otherwise agreed with ASIC.

Speaker #2: We are also applying a 2.5% discount to our existing Dividend Reinvestment Plan. Depending on the participation rates in the DRP, we also have the flexibility to partially underwrite the DRP to achieve our capital targets.

Andrew Tobin: Depending on the participation rates in the DRP, we also have the flexibility to partially underwrite the DRP to achieve our capital targets. From 30 June 2029, ASX will also need to hold sufficient tangible assets to meet the financial resource requirements for its two licensed financial markets, unless otherwise agreed with ASIC. These requirements may be informed by a planned upcoming review of ASX guidance for market licensees' financial resource requirements. ASX's balance sheet continues to be strong and positioned conservatively, noting that earlier this year, S&P Global Ratings downgraded its long-term issuer credit rating from double A minus to A plus, with a stable outlook. S&P Global Ratings noted that the findings released in the ASIC inquiry's final report relating to governance capability and risk management contributed to the downgrade of ASX's credit rating.

Speaker #2: These requirements may be informed by a planned upcoming review of ASIC's guidance for market licensees financial resource requirements. ASIC's balance sheet continues to be strong and positioned conservatively noting that earlier this year S&P downgraded its long-term issuer credit rating from AA minus to A plus with a stable outlook.

Speaker #2: From 30 June 2029, ASX will also need to hold sufficient net tangible assets to meet the financial resource requirements for its two licensed financial markets, unless otherwise agreed with ASIC.

Speaker #2: These requirements may be informed by a planned upcoming review of ASIC's guidance for market licensees' financial resource requirements. ASX's balance sheet continues to be strong and positioned conservatively, noting that earlier this year S&P downgraded its long-term issuer credit rating from AA- to A+ with a stable outlook.

Speaker #2: S&P noted that the findings released in the ASIC inquiry's final report relating to governance capability and risk management contributed to the downgrade of ASX's credit rating.

Speaker #2: We have significant financial flexibility including a 400 million dollar corporate debt facility which is currently undrawn and we are also planning to refinance our 275 million dollar corporate bond in the first half of FY27 subject to market conditions.

Speaker #2: S&P noted that the findings released in the ASIC inquiry’s final report relating to governance capability and risk management contributed to the downgrade of ASX’s credit rating.

Speaker #2: From a shareholder perspective increase of 10 basis points. The strong operating revenue we reported in the year in early FY27. With that I'll now hand back Darren thank you.

Speaker #2: We have significant financial flexibility, including a $400 million corporate debt facility, which is currently undrawn. We are also planning to refinance our $275 million corporate bond in the first half of FY27, subject to market conditions.

Andrew Tobin: We have significant financial flexibility, including a AUD 400 million corporate debt facility, which is currently undrawn, and we are also planning to refinance our AUD 275 million corporate bond in the H1 FY27, subject to market conditions. From a shareholder return perspective, underlying ROE for the year was 13.7%, an increase of 10 basis points. To summarize our results, the strong operating revenue we reported in the year reflects the strength of ASX's diversified business, and we are seeing positive momentum in early FY27. With that, I will now hand back to Darren. Thank you.

Speaker #2: From a shareholder return perspective, underlying ROE for the year was 13.7%, an increase of 10 basis points. So, to summarize our results: the strong operating revenue we reported in the year reflects the strength of ASX's diversified business, and we are seeing positive momentum in early FY27.

Speaker #1: Thanks Andrew. I'll now outline our FY27 priorities before concluding the outlook financial guidance. We have three priorities for FY27. Strengthening technology and operating resilience.

Speaker #2: With that, I will now hand back to Darren. Thank you.

Speaker #1: Thanks, Andrew. I'll now outline our FY27 priorities before concluding with our outlook and financial guidance. We have three key priorities for FY27. First, powering markets you can trust every day is focused on strengthening technology and operational resilience.

Speaker #1: Technology modernization and critical achieving this objective. We are also creating investment in AI to create value for our customers and move organizational efficiency and we've been encouraging adoption by investing in training and capability.

Darren Yip: Thanks, Andrew. I will now outline our FY27 priorities before concluding with our outlook and financial guidance. We have three key priorities for FY27. First, powering markets you can trust every day is focused on strengthening technology and operational resilience. In FY27, we remain focused on delivering our technology modernization and Accelerate Program, which are critical to achieving this objective. We are also increasing our investment in AI to create value for our customers and to improve organizational efficiency, and we have been encouraging adoption by investing in training and capability. During FY27, we will explore a range of AI use cases to enhance processes, strengthen controls, and lift productivity. We also plan to leverage AI to improve technology delivery and support operational resilience. Our second objective is customer-driven growth. This objective focuses on targeted growth and efficiency opportunities while enhancing our product and service offering.

Speaker #1: In FY27, we remain focused on delivering our technology modernization and Accelerate programs, which are critical to achieving this objective. We are also increasing our investment in AI to create value for our customers and to improve organizational efficiency, and we've been encouraging adoption by investing in training and capability.

Speaker #1: Use cases to enhance processes strengthen control lift productivity. We also plan to leverage AI to improve technology delivery and support operational resilience. Our second objective is customer driven growth.

Speaker #1: This objective focuses on targeted growth and efficiency opportunities while enhancing our product and service offering. A key FY27 initiative is the development of a new digital issuer platform which aims to improve customer experience evolve with market needs and reduce operational risk through better data capture and straight through processing.

Speaker #1: During FY27, we will explore a range of AI use cases to enhance processes, strengthen controls, and lift productivity. We also plan to leverage AI to improve technology delivery and support operational resilience.

Speaker #1: Our second objective is customer-driven growth. This objective focuses on targeted growth and efficiency opportunities while enhancing our product and service offering. A key FY27 initiative is the development of a new digital issuer platform, which aims to improve customer experience, evolve with market needs, and reduce operational risk through better data capture and straight-through processing.

Speaker #1: OstraClear currently supports more than three trillion in securities and processes over three million transactions annually. To meet growing customer demand we have expanded OstraClear's multi-currency capabilities and recently secured regulatory approval to support US dollar denominated securities with launch planned for FY27.

Darren Yip: A key FY27 initiative is the development of a new digital issuer platform, which aims to improve customer experience, evolve with market needs, and reduce operational risk through better data capture and straight-through processing. Austraclear currently supports more than AUD 3 trillion in securities and processes over 3 million transactions annually. To meet growing customer demand, we have expanded Austraclear's multi-currency capabilities and recently secured regulatory approval to support US dollar-denominated securities, with launch planned for FY27. This enhancement will simplify US dollar issuance for Australian borrowers and strengthen Austraclear's value proposition and create new opportunities for growth. Our third objective, Shaping Tomorrow, is centered on partnering with our stakeholders to drive market innovation and help shape the future of Australia's financial markets. In FY27, we will continue exploring tokenization opportunities, including initial investments to tokenize Austraclear bonds, which would enable near real-time, 24/7 collateral movements.

Speaker #1: This enhancement will simplify US dollar issuance for Australian borrowers and strengthen OstraClear's value proposition and create new opportunities for growth. Our third objective shaping tomorrow is centered on partnering with our stakeholders to drive market innovation and help shape the future of Australia's financial markets.

Speaker #1: OstraClear currently supports more than $3 trillion in securities and processes over three million transactions annually. To meet growing customer demand, we have expanded OstraClear's multi-currency capabilities and recently secured regulatory approval to support US dollar-denominated securities, with launch planned for FY27.

Speaker #1: In FY27 we will continue exploring tokenization opportunities including initial investments to tokenize OstraClear bonds which would enable near real-time 24/7 collateral movements. The benefits for customers include improving access to collateral reducing settlement fails and facilitating the use of Australian securities across time zones.

Speaker #1: This enhancement will simplify US dollar issuance for Australian borrowers, strengthen OstraClear's value proposition, and create new opportunities for growth. Our third objective, shaping tomorrow, is centered on partnering with our stakeholders to drive market innovation and help shape the future of Australia's financial markets.

Speaker #1: We also plan to publish a discussion paper to engage the market on innovation opportunities and inform the future evolution of Australia's financial market infrastructure.

Speaker #1: In FY27, we will continue exploring tokenization opportunities, including initial investments to tokenize OstraClear bonds, which would enable near real-time, 24/7 collateral movements. The benefits for customers include improving access to collateral, reducing settlement fails, and facilitating the use of Australian securities across time zones.

Speaker #1: Turning now to outlook. Although market volumes are difficult to predict momentum has continued into July with strong growth across our cash and futures markets.

Darren Yip: The benefits for customers include improving access to collateral, reducing settlement fails, and facilitating the use of Australian securities across time zones. We also plan to publish a discussion paper to engage the market on innovation opportunities and inform the future evolution of Australia's financial market infrastructure. Turning now to outlook. Although market volumes are difficult to predict, momentum has continued into July with strong growth across our cash and futures markets. As I said earlier, FY26 was our strongest year for listings activity since FY22, despite the uncertain environment. This includes 23 international listings compared with the five-year average of 13, demonstrating the competitiveness and international relevance of our listed market. Glencore's recent announcement that it intends to list on ASX later this year is a good example of this.

Speaker #1: As I said earlier FY26 was our strongest year for listings activity since FY22 despite the uncertain environment. This includes 23 international listings compared with the five-year average of 13.

Speaker #1: We also plan to publish a discussion paper to engage the market on innovation opportunities and inform the future evolution of Australia's financial market infrastructure.

Speaker #1: Turning now to outlook. Although market volumes are difficult to predict, momentum has continued into July, with strong growth across our cash and futures markets.

Speaker #1: Demonstrating the competitiveness and international relevance of our listed market. Glencore's recent announcement that it intends to list on ASX later this year is a good example of this.

Speaker #1: As I said earlier, FY26 was our strongest year for listings activity since FY22, despite the uncertain environment. This includes 23 international listings, compared with the five-year average of 13.

Speaker #1: This momentum has continued into the new financial year with 8.4 billion of net new capital added to our market in July. This included the successful listing of FDC consolidated holdings.

Speaker #1: Demonstrating the competitiveness and international relevance of our listed market, Glencore's recent announcement that it intends to list on the ASX later this year is a good example of this.

Speaker #1: A building and construction company that raised more than 400 million in the largest IPO completed in calendar year 2026. Our listings pipeline for FY27 is the strongest it has been in several years and is increasingly weighted towards larger and more diverse transactions.

Speaker #1: This momentum has continued into the new financial year, with $8.4 billion of net new capital added to our market in July. This included the successful listing of FDC Consolidated Holdings.

Darren Yip: This momentum has continued into the new financial year, with AUD 8.4 billion of net new capital added to our market in July. This included the successful listing of FDC Consolidated Holdings, a building and construction company that raised more than AUD 400 million in the largest IPO completed in calendar year 2026. Our listings pipeline for FY27 is the strongest it has been in several years and is increasingly weighted towards larger and more diverse transactions. Momentum in our cash market has also remained strong, with total on-market value traded in July increasing 12% compared to PCP. Market volatility continues to support trading activity and is driven by geopolitical events and shifts in central bank policy expectations, both domestically and globally. We continue to see growth in auction activity, particularly during index rebalancing events, which reflects strong flows from passive investment managers.

Speaker #1: Momentum in our cash market has also remained strong with total on market value traded in July increasing 12 percent compared to PCP. Market volatility continues continues to support trading activity and is driven by geopolitical events and shifts in central bank policy expectations both domestically and globally.

Speaker #1: A building and construction company that raised more than $400 million in the largest IPO completed in calendar year 2026. Our listings pipeline for FY27 is the strongest it has been in several years, and is increasingly weighted towards larger and more diverse transactions.

Speaker #1: We continue to see growth in auction activity particularly during index rebalancing events which reflects strong flows from passive investment managers. We also continue to see strong growth in derivatives activity with futures and options on futures volumes in July up 20 percent on PCP.

Speaker #1: Momentum in our cash market has also remained strong, with total on-market value traded in July increasing 12% compared to PCP. Market volatility continues to support trading activity and is driven by geopolitical events and shifts in central bank policy expectations, both domestically and globally.

Speaker #1: Market conditions remain supportive with activity across the rates complex driven by central bank policy ongoing debt issuance and macroeconomic uncertainty. Moving to guidance. Today we reconfirmed the FY27 expense guidance provided in May which reflects ongoing investment in the organization driven by our strategic priorities.

Speaker #1: We continue to see growth in auction activity, particularly during index rebalancing events, which reflects strong flows from passive investment managers. We also continue to see strong growth in derivatives activity, with futures and options on futures volumes in July up 20% on PCP.

Darren Yip: We also continue to see strong growth in derivatives activity, with futures and options on futures volumes in July up 20% on PCP. Market conditions remain supportive with activity across the rates complex driven by central bank policy, ongoing debt issuance, and macroeconomic uncertainty. Moving to guidance. Today, we reconfirm the FY27 expense guidance provided in May, which reflects ongoing investment in the organization driven by our strategic priorities. Total expense growth is expected to be between 18% and 21%, while operating expense growth, excluding depreciation and amortization, is expected to be between 13% and 16%. We continue to expect FY27 capital expenditure to be in the range of AUD 180 to AUD 200 million, with FY28 expected to be in the range of AUD 170 to AUD 190 million. As previously outlined, the majority of this investment is directed towards our technology programs and our broader modernization agenda.

Speaker #1: Market conditions are supportive, with activity across the rates complex driven by central bank policy, ongoing debt issuance, and macroeconomic uncertainty. Moving to guidance, today we reconfirmed the FY27 expense guidance provided in May, which reflects ongoing investment in the organization driven by our strategic priorities.

Speaker #1: Total expense growth is expected to be between 18 and 21 percent while operating expense growth excluding depreciation and amortization is expected to be between 13 and 16 percent.

Speaker #1: We continue to expect FY27 capital expenditure to be in the range of 180 to 200 million with FY28 expected to be in the range of 170 to 190 million.

Speaker #1: Total expense growth is expected to be between 18% and 21%, while operating expense growth excluding depreciation and amortization is expected to be between 13% and 16%.

Speaker #1: As previously outlined the majority of this investment is directed towards our technology programs and our broader modernization agenda. The dividend payout ratio has been set at the lower end of our target range for the final FY26 dividend with a discounted DRP operating.

Speaker #1: We continue to expect FY27 capital expenditure to be in the range of $180 million to $200 million, with FY28 expected to be in the range of $170 million to $190 million.

Speaker #1: We expect this to continue for at least the next dividend in the first half of FY27. Finally underlying ROE remains a key measure of performance as we balance investment in our strategic initiatives with the delivery of sustainable growth.

Speaker #1: As previously outlined, the majority of this investment is directed towards our technology programs and our broader modernization agenda. The dividend payout ratio has been set at the lower end of our target range for the final FY26 dividend, with a discounted DRP operating.

Darren Yip: The dividend payout ratio has been set at the lower end of our target range for the final FY26 dividend with a discounted DRP operating. We expect this to continue for at least the next dividend in the H1 of FY27. Finally, underlying ROE remains a key measure of performance as we balance investment in our strategic initiatives with the delivery of sustainable growth. We continue to target an underlying ROE of between 12% and 14% over the medium term. Last year was an important year for ASX, and we enter FY27 with strong momentum as we continue our transformation and pursue new opportunities. Looking ahead, Anthony Attia will commence as managing director and CEO at the beginning of next month.

Speaker #1: We continue to target an underlying ROE of between 12 and 14 percent over the medium term. Last year was an important year for ASX and we enter FY27 with strong momentum.

Speaker #1: We expect this to continue for at least the next dividend in the first half of FY27. Finally, underlying ROE remains a key measure of performance as we balance investment in our strategic initiatives with the delivery of sustainable growth.

Speaker #1: As we continue our transformation and pursue new opportunities. Looking ahead Anthony Anthony Attia will commence as managing director and CEO at the beginning of next month.

Speaker #1: We continue to target an underlying ROE of between 12% and 14% over the medium term. Last year was an important year for ASX, and we enter FY27 with strong momentum.

Speaker #1: Anthony brings decades of experience across global exchange markets in Europe and the United States. Spanning the full value chain of exchange operations and we are pleased to welcome him to ASX.

Speaker #1: Thank you and I'll now invite questions.

Speaker #1: As we continue our transformation and pursue new opportunities, looking ahead, Anthony Attia will commence as Managing Director and CEO at the beginning of next month.

Speaker #2: Thank you. If you would like to ask a question please press style one on your telephone and wait for the name to be announced.

Speaker #2: If you would like to cancel your request please press style two. If you are on a speakerphone please check out the handset to ask your question.

Speaker #1: Anthony brings decades of experience across global exchange markets in Europe and the United States, spanning the full value chain of exchange operations, and we are pleased to welcome him to ASX.

Darren Yip: Anthony brings decades of experience across global exchange markets in Europe and the United States, spanning the full value chain of exchange operations, and we are pleased to welcome him to ASX. Thank you, and I will now invite questions.

Speaker #2: Your first question today comes from Ed Henning from CLSA. Please go ahead.

Speaker #3: Hi thanks for taking my questions I had two firstly could you just help us with some of the the building block model and some of the imports you know for example should we think the the opex will be in line with the the group opex as one and any other help you can give us there as a first question question.

Speaker #1: Thank you, and I'll now invite questions.

Speaker #2: Thank you. If you would like to ask a question, please press star one on your telephone to be announced. If you would like to cancel your request, please press star two.

Operator: Thank you. If you would like to ask a question, please press star one on your telephone. Your name will be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Ed Henning from CLSA. Please go ahead.

Speaker #2: If you are on speakerphone, please pick up the handset to ask your question. Your first question today comes from Ed Henning from CLSA.

Speaker #1: Yeah thanks Ed I'm going to grab that question. So you may have seen in the in the appendix to the pack today I think it's slide 42 where we've got the sort of the component parts of the BBM model and we'll sort of publish those those inputs on a six monthly basis.

Speaker #2: Please go ahead.

Speaker #3: Hi thanks for taking my question. I have two. Firstly could you just help us with some of the the building block model and some of the imports you know for example should we think the the opex will be in line with the the group opex as one and any other help you can give us there is the first question please.

Ed Henning: Hi. Thanks for taking my questions. I have two. Firstly, could you just help us with some of the building block model and some of the inputs? For example, should we think the OpEx will be in line with the group OpEx as one and any other help you can give us there as the first question, please?

Speaker #1: In terms of the go forward assumptions one assumption is around the capex that's spending that we're spending and sort of the the spend on chess will continue to go into the sort of the regulators sort of capital base but also the expenses as well and we'll publish the expenses going forward as well for the for the full year from a budget perspective to let you sort of follow along in terms of the BBM model.

Speaker #1: Yeah thanks Ed. I might grab that question. So you may have seen in the in the appendix to the pack today I think it's slide 42 where we've got the sort of the component parts of the BBM model and we'll sort of publish those those inputs on a six monthly basis.

Darren Yip: Yeah, thanks, Ed. I am going to grab that question. So you may have seen in the appendix to the pack today, I think it is slide 42, where we have got the component parts of the BBM model. We will publish those inputs on a six-monthly basis. In terms of the go-forward assumptions, one assumption is around the CapEx that we are spending, and the spend on CHESS will continue to go into the regulated capital base, but also the expenses as well. We will publish the expenses going forward as well for the full year from a budget perspective to let you follow along in terms of the BBM model.

Andrew Tobin: Yeah, thanks, Ed. I am going to grab that question. So you may have seen in the appendix to the pack today, I think it is slide 42, where we have got the component parts of the BBM model. We will publish those inputs on a six-monthly basis. In terms of the go-forward assumptions, one assumption is around the CapEx that we are spending, and the spend on CHESS will continue to go into the regulated capital base, but also the expenses as well. We will publish the expenses going forward as well for the full year from a budget perspective to let you follow along in terms of the BBM model.

Speaker #3: Can you give us any help now like for example do you operating expenditure or should we think of roughly in line with the group expenditure?

Speaker #1: I think that's a good guide Ed at this at this point in time but as I mentioned we'll provide sort of further data points along the way as well.

Speaker #3: Okay no that's good. And then just a second question you obviously went through you know the the cost growth and and the and the three buckets that it's in for for net for next year.

Speaker #3: Can you give us any help now, like, for example, your operating expenditure, or should we think of it as roughly in line with the group expenditure?

Speaker #3: One thing you didn't touch on though was growth initiatives. You know how much of that cost is focused on growth initiatives you know beyond the tech modernization and and you know the the efficiency matters.

Ed Henning: Can you give us any help now? For example, view of operating expenditure or should we think it roughly in line with the group expenditure?

Speaker #1: I think that's a good guide, Ed, at this point in time, but as I mentioned, we'll provide further data points along the way as well.

Andrew Tobin: I think that is a good guide, Ed, at this point in time. As I mentioned, we will provide further data points along the way as well.

Speaker #1: Yeah that there isn't excuse me there is an allocation towards growth initiatives but but it's not the the lion's share of the sort of the growth in the expense space.

Speaker #3: Okay. No that's good.

Speaker #1: Yeah.

Speaker #3: And then just a second question. You obviously went through you know the the cost growth and and the and the three buckets. That it's in for for net for next year.

Ed Henning: Okay. No, that is good. Then, just a second question. You obviously went through the cost growth and the three buckets that it is in for next year. One thing you did not touch on, though, was growth initiatives. How much of that cost is focused on growth initiatives beyond the tech modernization and the efficiency matters?

Speaker #1: It's really the tech modernization the continuation of that and also the accelerate program is is the primary drivers of the growth. But but we are focused on on sort of you know opportunities to sort of you know customer driven growth opportunities also.

Speaker #3: One thing you didn't touch on, though, was growth initiatives. You know, how much of that cost is focused on growth initiatives, you know, beyond the tech modernization and, you know, the efficiency matters.

Speaker #1: But it's not a large part of the makeup of that expense growth.

Speaker #1: Yeah that there isn't excuse me there is an allocation towards growth initiatives but but it's not the the lion's share of the sort of the growth in the expense base it's really the tech modernization the continuation of that and also the accelerate program is is the primary drivers of the growth.

Speaker #3: Perfect. Thank you for your time.

Andrew Tobin: Yeah. There is an allocation towards growth initiatives, but it is not the lion's share of the growth in the expense base. It is really the tech modernization, the continuation of that, and also the Accelerate Program is the primary drivers of the growth. We are focused on customer-driven growth opportunities also, but it is not a large part of the makeup of that expense growth.

Speaker #1: Thanks Ed.

Speaker #2: Thank you. Your next question comes from Kieran Gigi from UBS. Please go ahead.

Speaker #1: But but we are focused on on sort of you know opportunities to sort of you know customer driven growth opportunities also but it's not a large part of the makeup of that expense growth.

Speaker #4: Morning guys. Andrew can I just so circle back to Ed's question on the clearing settlement issue of services BBM model.

Speaker #3: Perfect. Thank you for your time.

Speaker #1: Yeah.

Speaker #4: You know 13 mil of rebates this year. Can you actually I can't find anywhere what the sort of total revenue sitting under that model was for 26A.

Speaker #1: Thanks Ed.

Ed Henning: Perfect. Thank you for your time.

Darren Yip: Thanks, Ed.

Speaker #2: Thank you. Your next question comes from Kieran Chiji from UBS. Please go ahead.

Operator: Thank you. Your next question comes from Kieran Gigi from UBS. Please go ahead.

Speaker #4: Morning, guys. Andrew, can I just sort of circle back to Ed's question on the clearing and settlement issue services BBM model? You know, $13 million of rebates this year.

Speaker #4: Can you give us that number? And then B in a scenario where equity market turnover is flat next year would would it just be sort of whatever that number is plus the 13 mil you you would earn.

Kieran Gigi: Morning, guys. Andrew, can I just circle back to Ed's question on the clearing and settlement issuer services building block pricing model.

Kieren Chidgey: Morning, guys. Andrew, can I just circle back to Ed's question on the clearing and settlement issuer services building block pricing model.

Andrew Tobin: Yeah.

Kieran Gigi: 13 mil of rebates this year. I cannot find anywhere what the total revenue sitting under that model was for 2026. A, can you give us that number? B, in a scenario where equity market turnover is flat next year, would it just be whatever that number is plus the AUD 13 mil you would earn?

Kieren Chidgey: 13 mil of rebates this year. I cannot find anywhere what the total revenue sitting under that model was for 2026. A, can you give us that number? B, in a scenario where equity market turnover is flat next year, would it just be whatever that number is plus the AUD 13 mil you would earn?

Speaker #4: Actually, I can't find anywhere what the sort of total revenue sitting under that model was for 26A. Can you give us that number?

Speaker #1: Yeah so Kieran so excuse me in in the in the slide we do give you sort of the the inputs. It doesn't have the revenue number per se but you can back solve into that revenue number to determine that 30 million dollar rebate amount.

Speaker #4: And then B, in a scenario where equity market turnover is flat next year, would it just be sort of whatever that number is plus the $13 million you would earn?

Speaker #1: In terms of the go forward position it really depends on volumes and so it's a bit theoretical to sort of speculate around where where that lands going forward.

Speaker #1: You know we've seen a strong month of July so we're off to a good start but we don't know where that's going to land for the full year.

Andrew Tobin: Yeah. Sure, Kieran. In the slide, we do give you the inputs. It does not have the revenue number per se, but you can back solve into that revenue number to determine that AUD 30 million rebate amount. In terms of the go-forward position, it really depends on volumes. It is a bit theoretical to speculate around where that lands going forward. We have seen a strong month of July, so we are off to a good start, but we do not know where that is going to land for the full year. We need to see that play out, before we get to a position of determining whether there is an over or under recovery in the year ahead.

Speaker #1: And so we need to sort of see that play out before we get to a position of determining whether it's there's an over or under recovery in the year ahead.

Speaker #1: In terms of the go forward position, it really depends on volumes, and so it's a bit theoretical to sort of speculate around where that lands going forward.

Speaker #4: Yeah appreciate sort of the uncertainty on trading but if if turnover were flat year on year I guess the question really goes back to the the growth in this revenue allowance.

Speaker #1: You know, we've seen a strong month of July, so we're off to a good start, but we don't know where that's going to land for the full year.

Speaker #1: Yeah.

Speaker #4: In 27. Based on sort of your projected opex budget the asset base all that stuff. Would that entitle you under a flat turnover scenario to retain that full 13 mil rebate in the year ahead?

Speaker #1: And so we need to sort of see that play out before we get to a position of determining whether there’s an over- or under-recovery in the year ahead.

Speaker #4: Yeah, I appreciate sort of the uncertainty on trading, but if turnover were flat year on year, I guess the question really goes back to the growth in this revenue allowance.

Kieran Gigi: Yeah. Appreciate the uncertainty on trading. If turnover were flat year-on-year, I guess the question really goes back to the growth in this revenue allowance.

Kieren Chidgey: Yeah. Appreciate the uncertainty on trading. If turnover were flat year-on-year, I guess the question really goes back to the growth in this revenue allowance.

Speaker #1: Potentially because the things that are going to increase the the cost base things like additional capex spend will increase the revenue requirement and so that that that may be the outcome Kieran.

Speaker #4: In 27. Based on sort of your projected opex budget, the asset base, all that stuff—would that entitle you, under a flat turnover scenario, to retain that full $13 million rebate in the year ahead?

Andrew Tobin: Yep

Kieran Gigi: In 2027, based on your projected OpEx budget, the asset base, all that stuff. Would that entitle you under a flat turnover scenario to retain that full AUD 13 mil rebate in the year ahead?

Kieren Chidgey: In 2027, based on your projected OpEx budget, the asset base, all that stuff. Would that entitle you under a flat turnover scenario to retain that full AUD 13 mil rebate in the year ahead?

Speaker #1: Does that make sense. To answer your question. So expenses are going up in the FY27 period. The capex that we're spending is going up.

Speaker #1: So both of those factors will determine a higher revenue requirement under the BBM model. And so if if we hold it held it flat it just depends on you know what what is the impact over the full year whether that would absorb the full 13 million dollar rebate or or would it push it into into some other outcome.

Speaker #1: Potentially because the things that are going to increase the the cost base things like additional capex spend will increase the revenue requirement and and so that that that may be the outcome Kieran.

Andrew Tobin: Potentially, because the things that are going to increase the cost base, things like additional CapEx spend, will increase the revenue requirement. That may be the outcome, Kieran. Does that make sense?

Speaker #1: Does that make sense or answer your question? So, expenses are going up in the FY27 period. The capex that we're spending is going up.

Kieran Gigi: All right.

Kieren Chidgey: All right.

Andrew Tobin: To answer your question, expenses are going up in the FY27 period. The CapEx that we are spending is going up. Both of those factors would determine a higher revenue requirement under the BBM model. If we held

Speaker #4: Okay and I mean you said you will be publishing sort of the more wholesome drivers including the cost budget around that. When will that be released and sort of where?

Kieran Gigi: Yeah

Kieren Chidgey: Yeah

Andrew Tobin: it flat, it just depends on what is the impact over the full year, whether that would absorb the full AUD 13 million rebate or would it push it into some other outcome.

Speaker #1: Yeah so the the cost budget will come out sort of in about October. It needs to go through the through the various approval processes and that that will be made public.

Speaker #1: And then every six months we'll give you an update around sort of the capex components and the regulatory sort of asset base of the BBM model.

Speaker #4: Okay. And, I mean, you said you will be publishing sort of the more wholesome drivers, including the cost budget around that. When will that be released, and sort of where?

Kieran Gigi: Okay. You said you will be publishing the more wholesome drivers, including the cost budget around that. When will that be released, and where?

Kieren Chidgey: Okay. You said you will be publishing the more wholesome drivers, including the cost budget around that. When will that be released, and where?

Speaker #4: All right. Secondly can I just ask on sort of Ostra Clear I guess the the drivers in some of the growth there that that have been quite strong in the period and I think there was sort of a comment flagging some additional product opportunity there.

Speaker #1: Yeah, so the cost budget will come out sort of in about October. It needs to go through the various approval processes, and that will be made public.

Andrew Tobin: Yeah. The cost budget will come out in about October. It needs to go through the various approval processes, and that will be made public. Then every 6 months, we will give you an update around the CapEx components and the regulatory asset base of the BBM model.

Speaker #1: And then every six months, we'll give you an update around the capex components and the regulatory asset base of the BBM model.

Speaker #4: Can you just unpack sort of what's been happening there and also how you're thinking about Ostra Clear from a systems point of view just given I understand the technology there is is getting fairly old as well.

Speaker #4: All right. Okay. Secondly, can I just ask on sort of AustraClear, I guess the drivers in some of the growth there that have been quite strong in the period? And I think there was sort of a comment flagging some additional product opportunity there.

Kieran Gigi: All right. Okay. Secondly, can I just ask on Austraclear, I guess the drivers in some of the growth there that have been quite strong in the period, and I think there was a comment flagging some additional product opportunity there. Can you just unpack what has been happening there, and also how you are thinking about Austraclear from a systems point of view, just given I understand the technology there is getting fairly old as well.

Kieren Chidgey: All right. Okay. Secondly, can I just ask on Austraclear, I guess the drivers in some of the growth there that have been quite strong in the period, and I think there was a comment flagging some additional product opportunity there. Can you just unpack what has been happening there, and also how you are thinking about Austraclear from a systems point of view, just given I understand the technology there is getting fairly old as well.

Speaker #3: Yeah I might just start off and hand to Andrew if there's any other things to add there. I think your question was regarding some of the developments we've done there.

Speaker #3: So the introduction of US dollar issuance obviously adds more collateral flexibility for our participants. But the other thing we are thinking about there is around tokenization of bonds and extending the hours of that service overnight.

Speaker #4: Can you just unpack sort of what's been happening there, and also how you're thinking about AustraClear from a systems point of view, just given, I understand, the technology there is getting fairly old as well.

Speaker #3: So that'll give us some entryway to sort of foundational capabilities in this space. In terms of sort of I think your question around the system look it is absolutely a focus of ours in terms of the resilience that you're right.

Speaker #3: Yeah, I might just start off and hand to Andrew if there's anything else to add there. I think your question was regarding some of the developments we've done there.

Darren Yip: Yeah. I might just start off and hand to Andrew if there is any other things to add there. I think your question was regarding some of the developments we have done there. So the introduction of US dollar issuance obviously adds more collateral flexibility for our participants. The other thing we are thinking about there is around tokenization of bonds and extending the hours of that service overnight. So that will give us some entryway to foundational capabilities in this space. In terms of, I think your question around the system, look, it is absolutely a focus of ours in terms of the resilience that you are right. That is a system that we are obviously doing a lot of constant service releases at the moment, and we continue to invest in that from an operational resilience perspective.

Speaker #3: So, the introduction of US dollar issuance obviously adds more collateral flexibility for our participants. But the other thing we are thinking about there is around tokenization of bonds, and extending the hours of that service overnight.

Speaker #3: That is a system that we are obviously doing a lot of constant service releases at the moment and we continue to invest in that from an operational resilience perspective.

Speaker #3: So that'll give us some entryway to sort of foundational capabilities in this space. In terms of, I think your question around the system—look, it is absolutely a focus of ours in terms of the resilience there, you're right.

Speaker #4: Okay and is that sort of part of the plan sort of capex profile that the group has outlined out to 28 at this stage?

Speaker #3: Yes it is.

Speaker #1: Yeah that's correct Kieran.

Speaker #3: That is a system that we are obviously doing a lot of constant service releases on at the moment, and we continue to invest in that from an operational resilience perspective.

Speaker #4: All right. Okay. Thank you.

Speaker #2: Thank you. Your next question comes from Sadaf Parameswaran from JP Morgan. Please go ahead.

Speaker #4: Okay. And is that part of the planned capex profile that the group has outlined out to '28 at this stage?

Kieran Gigi: Okay. Is that part of the plan CapEx profile that the group has outlined out to 2028 at this stage?

Kieren Chidgey: Okay. Is that part of the plan CapEx profile that the group has outlined out to 2028 at this stage?

Speaker #5: Good morning. A few questions if I can. So I I just want to get some some guidance on or maybe maybe just an understanding of the acceleration in expenses that's coming through in 27.

Speaker #3: Yes it is.

Speaker #1: Yeah that's correct Kieran.

Darren Yip: Yes, it is.

Andrew Tobin: Yep. That's correct, Kieran.

Speaker #4: All right. Okay. Thank you.

Kieran Gigi: All right. Okay. Thank you.

Kieren Chidgey: All right. Okay. Thank you.

Speaker #5: How much of it flows through to FY28? I mean it's you know there's obviously a run rate impact. I'm just keen to I mean it's hard to ramp up the expenses that much very quickly into into 27.

Speaker #2: Thank you. Your next question comes from Sadaf Parameswaran from JP Morgan. Please go ahead.

Operator: Thank you. Your next question comes from Siddharth Parameswaran from JP Morgan. Please go ahead.

Speaker #5: Good morning. A few questions, if I can. So I just want to get some guidance on, or maybe just an understanding of, the acceleration in expenses that's coming through in '27.

Siddharth Parameswaran: Good morning. A few questions if I can. I just want to get some guidance on or maybe just an understanding of the acceleration in expenses that is coming through in 2027. How much of it flows through to FY28? There is obviously a run rate impact. It is hard to ramp up the expenses that much very quickly into 2027. I just want to understand how should we assume the run rate impact of the increase in expenses that you are guiding in 2027? Actually, how quickly do you hit the full run rate, in terms of the impacts that could have on 2028?

Speaker #5: So I just want to understand how should we assume the run rate impact of the increase in expenses that you're that you're guiding in 27 actually.

Speaker #5: How quickly do you hit the full run rate you know in terms of you know the impacts that could happen in 28?

Speaker #1: Into 28 soon. So we've given guidance for FY27 and talked about sort of the building blocks of that of that expense being you know technology modernization accelerate etc.

Speaker #5: So I just want to understand, how should we assume the run-rate impact of the increase in expenses that you're guiding for in '27, actually?

Speaker #1: And we've also sort of highlighted that part of the thinking around technology cost is in is an ongoing sort of I suppose you know technology cost inflation factor going forward.

Speaker #5: How quickly do you hit the full run-rate, you know, in terms of the impacts that could happen in '28?

Speaker #1: We think that will persist into 2028. And the accelerate program is of course a multi-year program and so those costs will continue to FY28 as well and beyond.

Speaker #1: Into FY28 soon. So we've given guidance for FY27 and talked about some of the building blocks of that expense—being, you know, technology, modernization, accelerate, etc.

Andrew Tobin: Into 2028, Sid. We have given guidance for FY27 and talked about some of the building blocks of that expense being technology modernization, Accelerate, et cetera. We have also highlighted that part of the thinking around technology cost is an ongoing, I suppose, technology cost inflation factor going forward. We think that will persist into 2028. The Accelerate Program is, of course, a multi-year program, and so those costs will continue to FY28 as well and beyond. But in terms of the ramp-up in FY27, I think even if you look at the FY26 H1 versus H2, you can see that we have stepped up the expense base in that H2 of 2026. That gives you an indication, perhaps, of the trajectory of expenses as we go into FY27.

Speaker #1: But in terms of the ramp up in FY27 I I think even if you look at the FY26 first half versus second half you can see that we have stepped up the expense base in that second half of 26.

Speaker #1: And we've also sort of highlighted that part of the thinking around technology cost is, it is an ongoing, sort of, I suppose, you know, technology cost inflation factor going forward.

Speaker #1: And so that gives you an indication perhaps of sort of the the trajectory of expenses as we go into FY27.

Speaker #1: We think that will persist into 2028. And the Accelerate program is, of course, a multi-year program, so those costs will continue to FY28 as well and beyond.

Speaker #5: Okay. Okay. Okay. Yeah okay. Can I just ask is there anything going the other way? I think you talked about some doubling up in systems you know eventually they'll I think the existing chest will be shut down.

Speaker #1: But in terms of the ramp-up in FY27, I think even if you look at the FY26 first half versus second half, you can see that we have stepped up the expense base in that second half of '26.

Speaker #5: Maybe if you just give us some idea of how much of the current expense base will eventually disappear and at what point that will that that will occur.

Speaker #1: And so, that gives you an indication, perhaps, of the trajectory of expenses as we go into FY27.

Speaker #5: And also if there's any efficiencies you can get particularly on project accelerate you know when you're trying to set up something there's usually a lot of a lot of upfront costs.

Speaker #5: Okay, okay, okay. Yeah, okay. Can I just ask, is there anything going the other way? I think you talked about some doubling up in systems, you know, eventually they'll—I think the existing chest will be shut down.

Siddharth Parameswaran: Well, can I just ask, is there anything going the other way? I think you talked about some doubling up in systems. Eventually, I think the existing CHESS will be shut down. Maybe if you just give us some idea of how much of the current expense base will eventually disappear and at what point that will occur. Also, if there is any efficiencies you can get, particularly on Project Accelerate. When you are trying to set up something, there is usually a lot of upfront costs. Maybe if you just flag if there is anything that goes the other way.

Speaker #5: Maybe if you could just flag you know if there's anything that goes the other way.

Speaker #1: Yeah I think Sid one thing I do think about is effectively sort of the doubling up of of different technology platforms and systems. We've we've talked about that in the past and and chest is a good example where we're sort of running two systems.

Speaker #5: Maybe if you could just give us some idea of how much of the current expense base will eventually disappear, and at what point that will occur.

Speaker #5: And also, if there are any efficiencies you can get, particularly on Project Accelerate—you know, when you're trying to set up something, there's usually a lot of upfront costs.

Speaker #1: It's a it's a number of years away though before we'd actually be able to decommission the current chest system. We need to wait through through the chest release too to be fully implemented before we can do that.

Speaker #5: Maybe if you could just flag, you know, if there's anything that goes the other way.

Speaker #1: So so there's not a lot to highlight specifically at this point in time. Of course as as we're continuing to sort of spend and optimize across the organization we are looking for efficiency opportunities.

Speaker #1: Yeah, I think, Sid, one thing I do think about is effectively sort of the doubling up of different technology platforms and systems. We've talked about that in the past, and CHESS is a good example, where we're sort of running two systems.

Andrew Tobin: Yeah. Sid, one thing I do think about is effectively the doubling up of different technology platforms and systems. We have talked about that in the past, and CHESS is a good example, where we are sort of running two systems. It is a number of years away, though, before we would actually be able to decommission the current CHESS system. We need to wait through the CHESS Release 2 to be fully implemented before we can do that. So there is not a lot to highlight specifically at this point in time. Of course, as we are continuing to spend and optimize across the organization, we are looking for efficiency opportunities. Darren mentioned the use of AI, for example. So that is one particular focus area for the organization.

Speaker #1: Darren mentioned the use of AI for example so that is one particular focus area for the organization. We also look at sort of you know the license requirements from a technology perspective of the organization to see whether we can rationalize license licenses where we can also as we as we sort of progress.

Speaker #1: It's a number of years away, though, before we'd actually be able to decommission the current CHESS system. We need to wait for the CHESS Release 2 to be fully implemented before we can do that.

Speaker #1: So, there's not a lot to highlight specifically at this point in time. Of course, as we're continuing to spend and optimize across the organization, we are looking for efficiency opportunities.

Speaker #5: Okay. If I can just ask one last question just the the building blocks model you've I mean you've got an independent board of for the just just just in terms of running the that that experience function.

Speaker #1: Darren mentioned the use of AI, for example, so that is one particular focus area for the organization. We also look at, sort of, you know, the license requirements from a technology perspective of the organization to see whether we can rationalize licenses where we can, also, as we sort of progress.

Andrew Tobin: We also look at the license requirements from a technology perspective of the organization to see whether we can rationalize licenses where we can also, as we progress.

Speaker #5: I was just keen to understand whether there's any push from the target ROE either from clients or from members of the board the 12%.

Speaker #5: Okay. If I can just ask one last question just the the building blocks model you've I mean you've got an independent board for the just just just in terms of running the that that period settlement function.

Speaker #1: I'm sorry Sid I just I just missed that that question towards the end.

Siddharth Parameswaran: Okay. If I can just ask one last question, just the building block pricing model. You have got an independent board just in terms of running that clearing and settlement function. I just think I understand there is any push for the target ROE, either from clients or from members of the board, the 12%.

Speaker #5: Oh. Sorry. Just the 12% target. The 12% ROE target on on the on the for the for the building blocks method. Just whether there's any push back on that at all.

Speaker #1: No. No. That that is part of the pricing policy that was released. You know it it's subject and it's based on as you know sort of a CAPM type model.

Speaker #5: I was just keen to understand whether there's any push on the target ROE, either from clients or from members of the board—the 12%.

Speaker #1: It's subject to changes. So the movement over the last six months has been sort of the risk-free rate the cash rate sort of moving around the 10-year bond rate.

Speaker #1: I'm sorry, Sid. I just missed that question towards the end.

Andrew Tobin: Sorry, Sid, I just missed that question towards the end there.

Speaker #5: Oh, sorry, just the 12% target. The 12% ROE target on the, on the, for the, for the building blocks method. Just whether there's any pushback on that at all.

Speaker #1: I mean moving around. And so it it's it's a sort of a robust model that will be applied and that's accepted through that pricing policy.

Siddharth Parameswaran: Oh, sorry, just the 12% target, the 12% ROE target for the building block pricing model. Just whether there is any pushback on that at all.

Speaker #1: And has sort of been well flagged to sort of participants as well.

Speaker #1: No, that is part of the pricing policy that was released. You know, it's subject and it's based on, as you know, sort of a CAPM-type model.

Andrew Tobin: No, that is part of the pricing policy that was released. And it is based on, as you know, a CAPM type model. It is subject to changes. So the movement over the last six months has been the risk-free rate, the cash rate moving around, the 10-year bond rate, I mean, moving around. And so it is a robust model that will be applied, and that is accepted through that pricing policy, and has been well flagged to participants as well.

Speaker #5: Okay. Thank you.

Speaker #1: Thanks Sid.

Speaker #1: It's subject to changes. So, the movement over the last six months has been sort of the risk-free rate, the cash rate, sort of moving around the 10-year bond rate.

Speaker #2: Thank you. Once again if you would like to ask a question please press star one on your telephone and wave your name to be announced.

Speaker #2: Your next question comes from Blake Dowcett from Jardin Group. Please go ahead.

Speaker #1: I mean, moving around. And so, it's a sort of robust model that will be applied, and that's accepted through that pricing policy.

Speaker #4: Hi guys. Great result. Just one for me must have been asked and answered but just looking at the 150 million capital impost that you have to accrue by FY27 can you talk to your confidence in being able to accrue that with your current NTAT expectations and the RP settings?

Speaker #1: And has sort of been well flagged to participants as well.

Speaker #5: Okay. Thank you.

Speaker #1: Thanks Sid.

Siddharth Parameswaran: Okay. Thank you.

Andrew Tobin: Thanks, Sid.

Speaker #2: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Blake Dowsett from Jarden Group. Please go ahead.

Speaker #2: Your next question comes from Blake Dowcett from Jarden Group. Please go ahead.

Speaker #1: You know thanks Blake. I'll I'll grab that as well. So with with our current dividend settings we've got a high degree of confidence of achieving that target.

Speaker #6: Hi guys. Great result. Just one from me—it must have been asked and answered, but just looking at the $150 million capital impost that you have to accrue by FY27, can you talk to your confidence in being able to accrue that with your current NTAT expectations and DLP settings?

Blake Dowsett: Hi, guys. Great result. Just one for me, must have been asked and answered, but just looking at the AUD 150 million capital impost, the accrue by FY27. Can you talk to your confidence in being able to accrue that with your current NPAT expectations and DRP settings?

Speaker #1: So we've reduced our payout ratio to 75% and we intend to operate the DRP for the next two dividends including the final dividend that we've announced today.

Speaker #1: And through that that that ratio and also the operation of the DRP we've we've got confidence of achieving that target.

Speaker #1: Yeah, thanks, Blake. I'll grab that as well. So, with our current dividend settings, we've got a high degree of confidence in achieving that target.

Andrew Tobin: Yeah. Thanks, Blake. I'll grab that as well. With our current dividend settings, we've got a high degree of confidence of achieving that target. We've reduced our payout ratio to 75%, and we intend to operate the DRP for the next two dividends, including the final dividend that we've announced today. And through that mechanism, the lower dividend payout ratio and also the operation of the DRP, we've got confidence of achieving that target.

Speaker #4: Great. Maybe just one more quickly. I'll put you on the line as well. Just in terms of when you reset your cost guidance back in I think it was the end of May just relative to what came through with accelerate at the end of June just maybe can you talk through how you're thinking evolved in terms of where you originally set that budget and what kind of came through for accelerate whether there was any meaningful changes in terms of how those buckets play out?

Speaker #1: So, we've reduced our payout ratio to 75%, and we intend to operate the DLP for the next two dividends, including the final dividend that we've announced today.

Speaker #1: And through that that that mechanism the lower dividend payout ratio and also the operation of the DLP we've we've got confidence of achieving that target.

Speaker #6: Great. Maybe just one more quickly while I've got you on the line as well. Just in terms of when you reset your cost guidance back in, I think it was the end of May, just relative to what came through with Accelerate at the end of June.

Blake Dowsett: Great. Maybe just one more quickly while I've got you on the line as well. Just in terms of when you reset your cost guidance back in, I think it was the end of May, just relative to what came through with Accelerate at the end of June. Just maybe can you talk through how your thinking evolved in terms of where you originally set that budget and what came through for Accelerate? Whether there was any meaningful changes in terms of how those buckets play out.

Speaker #1: Yeah. So Blake no no meaningful changes. You know if I think about where we've land for FY26 in terms of the total expenses pretty much in line with guidance that we've set out before and and therefore there's there's been no change to our thinking as we as we sort of progress into FY27.

Speaker #6: Just maybe, can you talk through how your thinking evolved in terms of where you originally set that budget and what kind of came through for Accelerate?

Speaker #4: Great. I appreciate your time. Thanks very much.

Speaker #1: Thank you.

Speaker #6: Were there any meaningful changes in terms of how those buckets play out?

Speaker #2: Thank you. Your next question comes from Andrew Buncombe from Macquarie. Please go ahead.

Speaker #1: Yeah, so Blake, no meaningful changes. You know, if I think about where we've landed for FY26 in terms of the total expenses, it's pretty much in line with the guidance that we've set out before.

Andrew Tobin: Yeah. Blake, no meaningful changes. If I think about where we've land for FY26 in terms of the total expenses, pretty much in line with guidance that we've set out before. Therefore, there's been no change to our thinking as we progress into FY27.

Speaker #4: Hi guys. Thanks for taking my question. Just one from me. I can't seem to see any of the commentary around medium-term margin guidance or cost to income ratios.

Speaker #1: And and therefore there's there's been no change to our thinking as we as we sort of progress into FY27.

Speaker #4: But you've flagged that over the last year or so. Just checking whether that was an oversight or or you've walked away from that. Thanks.

Speaker #6: Great, I appreciate your time. Thanks very much.

Speaker #1: Thank you.

Blake Dowsett: Great. No, I appreciate your time. Thanks very much.

Andrew Tobin: Thank you.

Speaker #2: Thank you. Your next question comes from Andrew Buncombe from Macquarie. Please go ahead.

Speaker #1: Yeah. Thanks thanks Andrew. We have de-emphasized that that metric as a performance metric and that really reflects the investment profile that we've got in the organization in terms of the elevated expense base that we announced in May.

Operator: Thank you. Your next question comes from Andrew Buncombe from Macquarie. Please go ahead.

Speaker #6: Hi guys, thanks for taking my question. Just one from me—I can't seem to see any of the commentary around medium-term margin guidance or cost-to-income ratios.

Andrew Buncombe: Hi, guys. Thanks for taking my question. Just one from me. I cannot seem to see any of the commentary around medium-term margin guidance or cost to income ratios, but you have flagged that over the last year or so. Just checking whether that was an oversight or you have walked away from that. Thanks.

Speaker #1: And so really our primary performance metric is the ROE target that we've announced. And that that's where we've currently focused Andrew.

Speaker #6: But you have flagged that over the last year or so. Just checking whether that was an oversight, or if you've walked away from that. Thanks.

Speaker #4: That's it from me. Thank you.

Speaker #1: Thank you.

Speaker #1: Yeah, thanks, thanks Andrew. We have de-emphasized that metric as a performance metric, and that really reflects the investment profile that we've got in the organization in terms of the elevated expense base that we announced in May.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Darren Yip for any closing remarks.

Andrew Tobin: Yeah, thanks, Andrew. We have de-emphasized that metric as a performance metric, and that really reflects the investment profile that we have got in the organization in terms of the elevated expense base that we announced in May. Our primary performance metric is the ROE target that we have announced. That is where we have currently focused, Andrew. That is it from me. Thank you.

Speaker #3: Okay. Thank you for your questions. This concludes today's presentation. Thank you for joining us today.

Speaker #1: And so really our primary performance metric is the ROE target that we've announced, and that's where we've currently focused, Andrew.

Speaker #6: That's it from me. Thank you.

Speaker #1: Thank you.

Operator: Thank you. There are no further questions at this time. I will now hand back to Darren Yip for any closing remarks.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Darren Yip for any closing remarks.

Speaker #5: Okay. Thank you for your questions. This concludes today's presentation. Thank you for joining us today.

Darren Yip: Okay. Thank you for your questions. This concludes today's presentation. Thank you for joining us today.

Andrew Tobin: Thanks very much.

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