ASX Conference Summary Company Overview - **Company**: ASX (ASXF.Y) - **Event**: ASX CEO Connect Conference - **Date**: September 01, 2025 Key Points Business Segments - ASX operates four main business lines: listings and cash equities, derivatives, technology and data services, and post-trade services [1][2] - The diversification across these segments has contributed to resilient financial performance through various market cycles [1] Financial Performance - For FY2025, ASX reported operating revenue of **$1.11 billion**, a **7% increase** from the previous year [2] - Underlying net profit after tax rose by **7.5%**, benefiting from growth in net interest income [2] - A fully franked final dividend of **$112.01 per share** was declared, reflecting an **85% payout ratio** of underlying NPAT, totaling **$223.03 per share**, up **7.4%** [3] - EBITDA margin increased by **70 basis points** to **62.8%** [3] - Underlying return on equity improved by **60 basis points** to **13.6%** [3] Strategic Initiatives - ASX is undergoing a transformation journey with a five-year strategy aimed at modernizing technology and enhancing operational risk management [3][4] - The **ACCELERATE program** is a key initiative focused on operational risk management and resilience, emphasizing capability and culture improvements [4][5] - Investment in technology modernization is a priority, with ongoing progress on the **CHESS replacement project** [6][7] Regulatory Compliance - The Australian Securities and Investments Commission (ASIC) has initiated a compliance assessment of ASX, with an expert panel reviewing governance and risk management practices [7][8] - ASX is cooperating fully with the inquiry, which is expected to conclude by March 2026 [8] Market Position and Competition - ASX is experiencing a recovery in its listings business, with a good pipeline of companies interested in listing [12][13] - The competitive landscape includes local competitors like Cboe Australia, which has been active in cash equities and ETF listings for over a decade [16][17] - ASX maintains a strong value proposition and continues to evolve to meet competitive challenges [16][17] Data and AI Integration - Demand for ASX data has increased significantly, driven by market participants utilizing AI for trading strategies [19] - ASX is exploring the use of AI tools internally to enhance data utilization [20] - The company has launched new debt market activity products, providing previously unavailable data on fixed income instruments [21][22] Branding and Communication - ASX has been undergoing a rebranding process to improve digital communication effectiveness, including a new logo and color scheme [23][24] Long-term Outlook - ASX is well-positioned to benefit from structural tailwinds and macro factors that support long-term growth [10] - The company aims to drive long-term shareholder value through ongoing investments and strategic initiatives [6][10] Additional Insights - ASX acknowledges the importance of trust and confidence in its operations, especially following recent incidents that highlighted operational challenges [9][10] - The company is committed to sustainability and supporting the energy transition as part of its role in financial markets [10]