2020 1H Results

Media Conference Call

19 Aug 2020

Charles Li Chief Executive, HKEX Group

Vanessa Lau Group Chief Financial Officer, HKEX Group

2

Disclaimer

The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation,

invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or

service of any kind. This document is solely intended for distribution to and use by professional investors. This document is not

directed at, and is not intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution or

use would be contrary to law or regulation or which would subject Hong Kong Exchanges and Clearing Limited (“HKEX”) to any

registration requirement within such jurisdiction or country.

This document contains forward-looking statements which are based on the current expectations, estimates, projections, beliefs and

assumptions of HKEX about the businesses and the markets in which it and its subsidiaries operate. These forward-looking statements

are not guarantees of future performance and are subject to market risk, uncertainties and factors beyond the control of HKEX.

Therefore, actual outcomes and returns may differ materially from the assumptions made and the statements contained in this

document.

Where this document refers to Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect (together, the “Stock

Connect” programs), please note that currently, access to northbound trading is only available to intermediaries licensed or regulated

in Hong Kong; southbound trading is only available to intermediaries licensed or regulated in Mainland China. Direct access to the

Stock Connect is not available outside Hong Kong and Mainland China.

Where this document refers to Bond Connect, please note that currently, access to northbound trading is only available to foreign

investors that are able to trade onshore bonds on the China Foreign Exchange Trade System & National Interbank Funding Centre.

Although the information contained in this document is obtained or compiled from sources believed to be reliable, HKEX does not

guarantee the accuracy, validity, timeliness or completeness of the information or data for any particular purpose, and shall not accept

any responsibility for, or be liable for, errors, omissions or other inaccuracies in the information or for the consequences thereof. The

information set out in this document is provided on an “as is” and “as available” basis and may be amended or changed. It is not a

substitute for professional advice which takes account of your specific circumstances and nothing in this document constitutes legal

advice. HKEX shall not be responsible or liable for any loss or damage, directly or indirectly, arising from the use of or reliance upon

any information provided in this document.

3

Agenda

02

01 1H 2020 Key Highlights

HKEX Group Financial Review

Business and Strategic Update03

Appendix04

4

1H 2020 Key Highlights

1 | Financial Performance

Record half-yearly revenue and profit despite challenging macroeconomic backdrop with

core business revenue up by 13%YoY; total revenue up by 2%YoY and PAT up by 1%YoY

Record half-yearly Stock Connect revenue of HK$743mn (+46%YoY)

Net investment income fell HK$681mn, primarily due to the fair value losses of collective

investment schemes previously announced at Q1

off in March 2020

2 | Business and Strategy

Strong IPO Market – #2 globally in number of new company listings (64) and #3 in IPO

funds raised (HK$92.8bn)

Strong performance in Connect Schemes – all achieved half-yearly record high ADT

Major licensing agreement for MSCI Asia & EM indexes to offer suite of 37 new contracts,

further expanding HKEX product ecosystem

Ongoing market microstructure enhancements and technology capabilities enhancement

3 | In focus - A new Era of Liquidity in Hong Kong

Premier, global fundraising venue for new economy and jumbo IPOs, contributing to

increasing trading activities

Holistic product ecosystem encompassing HK, international and onshore underlying

5

HKEX Group Financial Review

6

Key Financial Highlights

EBITDA PAT

Core business revenue Net investment income

(HK$)

+13%

$7.1bn

1H 2019

$7.9bn

1H 2020

-45%

$1.5bn

1H 2019

$0.8bn

1H 2020

+1%

$6.6bn

1H 2019

$6.7bn

1H 2020

+1%

$5.2bn

1H 2019

$5.2bn

1H 2020

$8.6bn

1H 2019

$8.8bn

1H 2020

+2%

Total revenue & other income

Margin

77% 76%

-0%

$4.16 $4.15

Basic earnings per share

1. % is computed based on amounts reported in financial statements.

2. The 2020 first interim dividend will be payable in cash, without a scrip alternative.

3. Does not add up due to roundings.

Record half-yearly revenue and profit

Strong core business performance; market conditions impacted investment income

-0%

$3.72

1H 2019

$3.71

1H 2020

Dividend per share2

7

income Basic earnings per shareOperating

expenses (1) EBITDAProfit attributable to HKEX

shareholders (2)

Staff costs from HC mainly

from BayConnect acquisition &

payroll adj

IT costs from new IT systems

and network upgrade

Professional fees from

strategic projects and business

initiatives

EBITDA margin 1% PAT % similar to EBITDA EPS due to shares issued for

scrip dividends

Revenue and

other income

Trading & clearing fees from

ADT and record Stock Connect

revenue

Listing fees from record newly

listed CBBCs

Net Investment income (NII)

due to HK$138mn losses from

external portfolio in 1H 2020 (vs

HK$535mn record gains in 1H

2019)

1H 2020: Record Half-Yearly Revenue and Profit

1. Excludes depreciation and amortisation, finance costs, and share of profits/(losses) of joint ventures

2. For the purpose of this presentation, tax impact of NII is not considered when calculating the PAT attributable to NII.

Core business7,059

Core business7,944

Core business5,106

Core business5,868

Core business3,686

Core business4,395 Core business

2.95

Core business3.49

NII 1,519 NII 838

NII 1,519 NII 838

NII 1,519 NII 838

NII 1.21NII 0.66

8,578 8,782

1,953 2,076

6,625 6,706

5,205 5,233

4.16 4.15

1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020

ADTMargin77% 76%

HK$97.9bn +20% HK$117.5bn

+ 6%Core business+NII

+ 1%

Core business

+ 19%

Core business

+ 15%

Core business+NII

+ 2%

Core business+NII

+ 1%

Core business

+ 13%

(HK$ mn)

Core business+NII

- 0%

Core business

+ 18%

(HK$)

8

Revenue and other income

NII due to rebound of external portfolio (Q2: HK$383mn gains; Q1: HK$521mn losses)

Depository, custody and nominee service fees due to seasonality

Partly offset by:Trading and clearing fees from ADT & ADV

Operating expenses (1) EBITDAProfit attributable to

HKEX shareholders (2)

Stable opex due to stringent cost control EBITDA margin 4% PAT % higher than EBITDA due to one-off deferred tax charge in Q1 2020

Q2 2020: Quarterly Record High Due to Rebound of External Portfolio and

Seasonality

1. Excludes depreciation and amortisation, finance costs, and share of profits/(losses) of joint ventures

2. The tax impact of NII is not considered when calculating the PAT attributable to NII.

Core business4,056

Core business3,888 Core business

3,031Core business

2,837 Core business2,309

Core business2,086

NII (47)

NII 885

NII (47)

NII 885

NII (47)

NII 885

4,009

4,773

1,025 1,051

2,984

3,722

2,262

2,971

Q1 2020 Q2 2020 Q1 2020 Q2 2020 Q1 2020 Q2 2020 Q1 2020 Q2 2020

HK$114.0bnHK$120.9bnMargin 78%74%

- 6%

ADT

+ 3% Core business+NII

+ 31%

Core business

- 10%

Core business

- 4%

Core business

- 6%

Core business+NII

+ 19%

Core business+NII

+ 25%

(HK$ mn)

9

1,575

2,5202,330

1,5311,432

1,553 1,543

1,241

1,716 1,777

2,0331,878

2,5622,479 2,443

1,828

2,608 2,597

2,207

1,979

2,262

2,971

2,796

4,057

3,747

2,775

2,751

2,879

2,848

2,638

3,048

3,155

3,4543,523

4,1504,044 4,102

3,571

4,288 4,290

3,9873,746

4,009

4,773

718862 881 829 854 834 834

933833 878 887

968 935 983 1,025 1,167970 983 949

1,146 1,025 1,051

2,078

3,195

2,866

1,946 1,8972,045 2,014

1,705

2,215

2,2772,567

2,555

3,2153,061 3,077

2,404

3,318 3,307

3,038

2,600

2,984

3,722

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Profit attributable to shareholders

Revenue and other income

Operating expenses

EBITDA

(1)

1H 2020 Performance above Historical Trendline

2015

Quarterly performance

(HK$ million)

1H 2020 performance reflects resiliency of core business

despite macroeconomic and COVID-19 induced uncertainty.

1. Excludes depreciation and amortisation, finance costs, share of profits/(losses) of joint ventures, and non-recurring costs arising from the proposed combination with London Stock Exchange Group (LSEG)

2. Dotted trend lines are illustrative and do not constitute a forward forecast.

2016 2017 2018 2019 2020

10

Trading fees & tariffs

from ADT of

equity products,

trading days, and

record Stock

Connect trading

revenue

Trading fees & tariffs

from DWs, CBBCs &

warrants from

ADT

Trading fees from

futures and options

from proportion

of higher fee

contracts traded

Listing fees due to

record half-yearly

newly listed CBBCs

Trading fees

from LME fee

increase

Clearing fees

from ADT & SI,

record Stock

Connect clearing

revenue and LME

Clear fee increase

Accommodation

income due to

JPY & EUR

collateral by CPs in

HK and USD

investment return of

LME Clear fell below

benchmark

Network fees

due to usage of

the Orion Central

Gateway and China

Connect Central

Gateway by EPs

Hosting services

fees due to

subscriptions

NII of Corporate

Funds from external

portfolio (HK$138mn

losses in 1H 2020 vs

HK$535mn record

gains in 1H 2019)

Segmental revenue

Higher Revenue across All Business Segments, Offsetting External Portfolio

Loss of HK$138mn (versus a Record Gain of HK$535mn in 1H 2019)

(HK$ mn)

1. Headline ADT up 20% (1H 2020: HK$117.5bn; 1H 2019: HK$97.9bn); ADT of cash equity up 33% (1H 2020: HK$100.0bn; 1H 2019: HK$75.1bn); ADT of DWs, CBBCs and warrants included under equity and

financial derivatives down 23% (1H 2020: HK$17.5bn; 1H 2019: HK$22.8bn)

Change year-on-year

%

(685)

390 7 55 367 708,578 8,782

YTD Q2 2019 Cash Equity Equity andFinancial

Derivatives

Commodities Post Trade Technology Corporate Items YTD Q2 20201H 2019 1H 2020

-91%+21% +0% +8% +11% +19% +2%

11

535

210

729

45

(138)

204

714

58

1H 2020: HK$838mn (1H 2019: HK$1,519mn)

Income from Internal Funds in line YoY despite increase in margin

rebates to participants

Average Margin Fund and Clearing House Fund sizes increased

due to heightened volatility in 1H 2020 (in particular March)

(HK$ mn)

Net investment income by category of investments

Debt

securities

Collective

investment

schemes

Cash &

bank

depositsFX

923

55

535

6

982

32

(138)(38)

Investment Income – External Portfolio Impacted by Broader Market; Income

from Internal Funds Held Up Well

Average fund size

12.2 16.3

130.1151.7

26.7

29.3 Corporate Funds

Margin Funds

Clearing HouseFunds

1H 2019 1H 2020

169.0

197.3

(HK$ bn)

Net investment income by funds

(HK$ mn)

Corporate Funds (External Portfolio)

Margin

Funds

Corporate Funds (Internal)

Clearing

House Funds

1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 20201H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 20201H 2019 1H 2020 1H 2019 1H 2020

12

Point of Injection / Redemption Cumulative gain since inception (HK$ mn)

External Portfolio – Annualised Return of 5.1% since Inception

As the market rebounded in Q2 2020, the external portfolio partially recovered from the Q1 2020 loss,

resulting in a cumulative gain of $1.2bn or an annualised return of 5.1% since inception.

1. HKEX added HK$2bn to the portfolio during the period from Q4 2018 to Q2 2019.

2. HK$3.3bn was redeemed in 1H 2020.

400

420

440

460

480

500

520

540

560

580

600

1000

1500

2000

2500

3000

MSCI World Index Bloomberg Barclays Global Agg Bond Index

2017:

+23.4%MSCI World

Return (Net):

2018:

-8.6%

1H 2020:

-6.3%2019:

+27.1%

HK$6bn

injection

HK$2bn

injection(1)

HK$3.3bn

redemption(2)

638

1,321

1,183

0

200

400

600

800

1,000

1,200

1,400

2017

532

800

2016 1H

2020

2018 2019

13

Trading fees & tariffs from

ADT of equity products,

trading days, and record

Stock Connect trading

revenue

Opex due to lower

allocated costs of Listing

division due to proportion

of listing fees from equities

Trading fees & tariffs from DWs,

CBBCs & warrants from

ADT

Trading fees from futures and

options from

proportion of higher fee

contracts traded

Listing fees due to record half-

yearly newly listed CBBCs

Opex due to higher allocated

costs of Listing division due to

listing fees from DWs and

CBBCs

Trading fees from LME

fee increase

Opex due to IT

maintenance expenses,

partly offset by marketing

expenses

Clearing fees from ADT

& SI, record Stock Connect

clearing revenue and LME

Clear fee increase

Other revenue from

accommodation income

Opex due to staff costsfrom payroll adjustment

Overall EBITDA margin

1% due to fair value losses

on external portfolio of

HK$138mn (vs record gains

of HK$535mn in 1H 2019)

Network fees due to

usage of the Orion Central

Gateway and China Connect

Central Gateway by EPs

Hosting services fees due

to subscriptions

Opex due to inclusion of

BayConnect opex (1)

1. The acquisition of BayConnect was completed in June 2019 and its opex is included under Technology segment.

Resiliency and Performance reflected in EBITDA

Cash EquityEquity & Financial

DerivativesCommodities Post Trade Technology

Group Total

(incl. Corp. Items)

(HK$ mn)

+ 26% - 1% +14% + 12% + 12% + 1%

Share of Group EBITDA (before Corporate Items)%

EBITDA Margin%

1,5611,340

370

2,842

271

6,625

1,968

1,331420

3,197

304

6,706

24% 27% 21% 19% 6% 6% 45% 44% 4% 4%

1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020

100% 100%

84% 87% 82% 81% 53% 56% 87% 88% 73% 69%

77% 76%

14

Staff costs due to

annual payroll

adjustments and

headcount arising

from acquisition of

BayConnect in June

2019

Operating Expenses and Depreciation – Investment in Talent, Infrastructure

and Strategic Initiatives

Staff costs and

related expenses

due to maintenance

expenses for new IT

systems and network

upgrades, and costs

from BayConnect

No significant change Professional fees

incurred for strategic

initiatives and consulting

fee for HKATS review

due to new and

renewed office leases,

and roll-out of new IT

systems

IT & computer

maintenance exp

Premises

expenses

Professional

fees

Other operating

expenses (1) Total opex

No significant change

(HK$ mn)

1. Includes product marketing and promotion expenses

+ 78%+ 5% + 13% - 8% - 3% + 10%

1,328 1,398

278 315

64 59 37 66

246 238

1,9532,076

495 545

1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020

Depreciation and

amortisation

1H 2019 1H 2020

+ 6%

Total opex due to

staff costs, IT costs and

professional fees

15

Business and Strategic Update

16

1 | Strong Market Performance

Good Core Business Performance, against Challenging Macro Backdrop

Strong performance in Cash Market and solid performance in derivatives and FICC

Cash Market ADT +20%YoY at HK$117.5bn

Futures & Options ADV -0%YoY

LME chargeable ADV +1%YoY

IPO Market, Strong Performance

#2 globally in number of new company listings (64), including 15 New Economy and Biotech

companies

#3 in IPO funds raised (HK$92.8bn), 29%YoY growth and 18% contributed by Biotech and

Healthcare Sector

Continued innovation and commitment to listed issuers, e.g. launched 20 new virtual listing

ceremonies and first animated virtual listing in Asia with JD.com

Strong Performance of Connect Schemes

Stock Connect: Record half-yearly revenue of HK$743mn (+46%YoY); Record volumes with

Northbound ADT of RMB74.3bn (+69%YoY) and Southbound ADT of HK$20.7bn (+86%YoY)

Bond Connect: Record ADT of RMB19.9bn (+202%YoY)

16

17

2 | Strategic Plan on Track – 1H 2020 Highlights

17

Market Enhancement Programme Continues

Northbound Master SPSA and Southbound Trading Investor Identification Regime launched

Consultation conclusions published on Uncertificated Securities Market (USM); market

consultation launched on Corporate WVR Beneficiaries

Waiver on stamp duty for ETP market makers when creating and redeeming ETP units and

new spread table since June for ETPs

Shortened the listing cycle of structured products

LME launched new rules to optimise warehousing network

New Products Launches

Major agreement signed to licence a suite of MSCI indexes in Asia and Emerging Markets for

the introduction of 37 futures and options contracts (33 already launched)

USD and CNH Silver Futures; first Iron Ore Futures ETF; first active equity ETF; first

commodity based L&I Product and 7 new stock option classes

Technology Evolution

Continue to leverage new technology (e.g. AI, blockchain, data) for modernisation and growth

HKEX acquired a minority stake in Huakong TsingJiao Information Science (Beijing) Limited

(TsingJiao)

18

3 | In Focus: New Era of Liquidity in Hong Kong

PRODUCTS

Holistic product ecosystem encompassing HK, international and onshore underlying

LISTINGS

Premier, global fundraising venue for new economy and jumbo IPOs

CLIENTS

Convergence of established international and Mainland market players

19

No. of IPO

– Total

– New Economy1

– Biotech2

IPO Funds Raised by Segments

Source: Dealogic, as of July 2020.

1. Include Non-18A Biotech companies

2. Only include Chapter 18A Biotech companies

IPO Funds Raised

(HK$bn)

2020 Jan - July Fundraising Summary

174 218 183

14 27 38

0 5 9

World’s second-largest fund raising hub for

biotech companies

Dialogue with the Biotech Community 2020

webinar series with PhiRDA - attracted 292,000+

views

HKEX Biotech Week 2019 – attended by 1,000+

scientists, biotech entrepreneurs, investors,

technology experts and policymakers

Ongoing listing reforms

Shortening of IPO settlement cycle

Enhancing listing regime for overseas issuers

Enhancing the bookbuilding and price discovery

aspects of IPOs (cornerstone investors, pricing

flexibility, clawback mechanism)

IPO Funds Raised

(#3 globally)22 New Economy

& Biotech Companies Listed…

…raising

HK$94.8bn

+56%YoY +212%YoY

HK$132.1bn

0

100

200

300

2017 2018 2019 2020 YTD

Others Biotech New Economy

128.5

288.0314.2

88

16

6

132.1

3 | In Focus: Strongly Performing IPO Market boosted by New Economy Issuers

and Secondary Listings

20

Source: Dealogic, HKEX, Bloomberg, Refinitiv, and World Exchange Federation from 30 Apr 2018 to 31 Jul 2020.

1. A-share include main board of SSE and SZSE, as well as STAR Market and ChiNext. Also includes non-biotech stocks

Sector classification is based on GICS (Global Industry Classification Standard)

Hong Kong healthcare and biotech sector grew faster than both the US and the Mainland,

and has huge potential to become even more sizable in coming years

297 9531,899

Market Cap as of 30 Jun 2020 (in US$bn)

3 | In Focus: HK - Asia’s Largest and World’s 2nd Largest Biotech Fundraising Hub

25,775

2,966

461

9,417

1,4462,033

3,063 3,019

Biotech /

Pharmaceutical

Medical

Instruments

Healthcare

Services

Hong KongNASDAQ A-share

14.8%

28.0%

2.2%

A-shareHong KongNASDAQ

IPO Funds Raised (US$ mn)

From 30 Apr 2018 to 31 Jul 2020

2017-2019 Market Cap CAGR (%) in

Healthcare Sector

21

14 Jumbo IPOs > US$1bn (HK$7.8bn) since Jan 2018

Rank Company name IPO dateIPO size

(HK$bn)

1 Alibaba Group - SW 26/11/2019 101.20

2 China Tower - H 08/08/2018 58.80

3 Budweiser Brewing APAC 30/09/2019 45.08

4 Xiaomi Corporation - W 09/07/2018 42.61

5 Meituan Dianping - W 20/09/2018 33.14

6 JD.COM - SW 18/06/2020 34.56

7 Netease - S 11/06/2020 24.26

8 ESR Cayman Ltd. 01/11/2019 14.06

9 Shenwan Hongyuan - H 26/04/2019 9.09

10 Hansoh Pharmaceutical Group 14/06/2019 9.04

11Topsports International

Holdings10/10/2019 9.01

12Ping An Healthcare and

Technology04/05/2018 8.77

13 Jiangxi Bank - H 26/06/2018 8.60

14 WuXi AppTec - H 13/12/2018 8.28

3.3

9.2

20.1

20192018 2020 YTD

Cash Market ADT (HK$bn) contributed

by the Jumbo IPOs and related Structured Products ADT

Rising contribution to volumes from Jumbo IPOs

% of respective ADT

Source: HKEX, as of Jul 2020.

Ranked by IPO size.

In 2020, 16% of cash ADT and 13% of stock option ADV is contributed by the top 14 IPOs over the last 2.5 years

% of single stock option ADV

3.0%

10.5%

16.1%

1.3%

7.3%

13.3%

3 | In Focus: Jumbo IPOs Contributing to Increased Trading Activity

22

The launch of A-share1, Asia and EM derivatives will further integrate

our ecosystem of HK, international and onshore underlying

BETTER PRICE DISCOVERY

RISK MANAGEMENT / HEDGING

ARBITRAGE OPPORTUNITIES

CAPITAL EFFICIENCY

1. HKEX signed a licence agreement with MSCI to introduce futures contracts on the MSCI China A Index, subject to regulatory approval and market conditions.

2. HKEX signed a licence agreement with MSCI to introduce 37 futures and options contracts in Hong Kong based on a suite of indexes in Asia and Emerging Markets, subject to regulatory approval and

market conditions.

Short

Selling

Stock

Options Stock

Futures

DWs

CBBCs

Index

Futures

OTC

ETPs Currency

Futures

Stock

Connect

Bond

Connect

A-share

Derivatives1

Stocks

Asia & EM

Index Derivatives2

3 | In Focus: Holistic Product Ecosystem

23

1. YTD Data from 1 Jan 2020 to 30 Jun 2020

ACTIVE ETFS

Our aspiration is to become Asia’s ETP Marketplace

MARKET MAKER BUY-IN

EXEMPTION

INTRODUCE ICSD SETTLEMENT

MODEL

-2X INVERSE PRODUCTS

DESIGNATED SPECIALISTS

CONTINUOUS QUOTING AND

NEW SPREAD TABLE (JUN)

$4.5B

$5.0B

$7.1B

2018

2019

2020

ADT

ADT

ADT 1

LOWER

TRADING COSTS

IMPROVED

MARKET QUALITY

DEEPENED

LIQUIDITY POOL

GREATER

PRODUCT DIVERSITY

OFC

STRUCTURE

3 | In Focus: The ETP Growth Story

A-SHARE L&I PRODUCTS (JULY)

MARKET MAKER

STAMP DUTY EXEMPTION (AUG)

24

Stocks

Bonds

Commodities

FX

BROADER LIQUIDITY POOL

DIVERSE SKILLSET

ABILITY TO BRIDGE DIFFERENCES

IN MARKET STRUCTURES

Brokerage

Firms

Asset

Managers Insurance

Companies

Quant / Prop

Traders

Banks

Structured

Products

Issuers

Investment

Banks

Clearing

Firms

Market

Makers

ETF Issuers

Custodians

Futures

Firms

Diverse mix of clients and market players have continued to establish their presence in Hong Kong

3 | In Focus: Convergence of Established International and Mainland

Market Players

25

Looking Ahead

Macro geopolitical and economic outlook remains uncertain: resiliency,

adaptability and sustainability will continue to be key

A prolonged COVID-19 outbreak, escalating China-US tensions, and the

imminent US election will be drivers of sentiment and shape headlines

We expect Hong Kong to continue to play a significant role as an IFC

We anticipate economic fragility and a low interest rate environment to persist,

which may impact HKEX investment income

HKEX core businesses, across markets and asset class, remain well-placed

and robust

Recent ‘Jumbo’ listings; confirmation of a strong IPO pipeline; range of new

product launches; market structure enhancements; and the recently announced

MSCI/HKEX futures contracts deal have all helped boost liquidity and market

sentiment

Continuing to build our markets’ diversity and attractiveness, strong cost

discipline, active risk management and further executing against our Strategic

Plan will be cornerstones of the second half of 2020

26

Q & A

1H 2020 Financial Performance (vs. 1H 2019)

Record half-yearly Revenue and PAT

Core Business Revenue up 13%; Total Revenue and other income up 2% to HK$8.8bn

Record half-yearly Revenue for Connect Schemes; HKEX #2 for number of IPOs

EBITDA up 1% to HK$6.7bn

PAT up 1% to HK$5.2bn

… Welcome questions

Q&A Session begins now

27

Appendix

28

Financial Highlights – Income Statement

(HK$ mn, unless stated otherwise) 1H 2020% of Revenue &

Other Income1H 2019

% of Revenue &

Other IncomeYoY Change

Results

Revenue and other income 8,782 100% 8,578 100% 2%

Operating expenses (2,076) (24%) (1,953) (23%) 6%

EBITDA 6,706 76% 6,625 77% 1%

Depreciation and amortisation (545) (6%) (495) (6%) 10%

Operating profit 6,161 70% 6,130 71% 1%

Finance costs and share of profits less losses of

joint ventures(57) (1%) (80) (1%) (29%)

Profit before taxation 6,104 70% 6,050 71% 1%

Taxation (870) (10%) (847) (10%) 3%

(Profit)/loss attributable to non-controlling interests (1) (0%) 2 0% N/A

Profit attributable to HKEX shareholders 5,233 60% 5,205 61% 1%

Capex 519 368 41%

Basic earnings per share HK$4.15 HK$4.16 (0%)

Headline ADT on the Stock Exchange HK$117.5 bn HK$97.9 bn 20%

1. % does not add up due to roundings.

29

Performance by Operating Segment

HK$ mnCash

Equity

Equity &

Financial

Derivatives

CommoditiesPost

TradeTechnology

Corporate

Items

Group

1H 2020

Group

1H 2019

Revenue and other income 2,253 1,638 749 3,629 443 70 8,782 8,578

% of Group Total 26% 19% 8% 41% 5% 1% 100% 100%

Operating expenses (285) (307) (329) (432) (139) (584) (2,076) (1,953)

EBITDA 1,968 1,331 420 3,197 304 (514) 6,706 6,625

% of Group Total (1) 29% 20% 6% 48% 5% (8%) 100% 100%

EBITDA margin 87% 81% 56% 88% 69% N/A 76% 77%

Depreciation and amortisation (60) (51) (169) (106) (22) (137) (545) (495)

Finance costs (7) (6) (4) (46) (1) (32) (96) (86)

Share of profits less losses of

joint ventures 39- - - - -

39 6

Profit before taxation 1,940 1,274 247 3,045 281 (683) 6,104 6,050

1. % Share of Group EBITDA (including Corporate Items).

30

6.5 11.8 7.9 5.1 4.0 3.1 3.6 4.2 4.2 5.7 6.2 9.8 13.8 13.8 12.4 15.3 24.6 30.3

21.4 21.6 31.3

40.3 39.8 30.2 29.8 34.9

--

- - - - - 1.7 2.2 4.0 4.8 7.7

10.1 11.0 9.7 10.8

21.1

26.6

21.4 23.9

37.0

53.9 52.9

40.9 42.2

51.3

1.4 7.4

2.8 1.9 2.4 2.9 5.0 4.5 6.0

6.7 7.9 9.1

13.2 8.0 6.2

5.3

7.5

6.8

6.3 6.9

9.6

12.3 15.6

10.1 11.2

10.5

0.5 1.1

1.5 2.6

4.0

6.5 5.0

3.7 3.0

4.3

3.8

3.6 4.3

6.8

8.3 10.2

8.0 8.6

9.7

7.9

19.2

10.7 6.9 6.4 6.0 8.6 10.9 13.5

17.9 21.6

30.6

43.6 37.8

32.0 34.4

57.4

67.5

52.8 56.8

84.7

114.8 118.6

89.2 91.9

106.3

0.8%

2.2%

1.4% 1.3%1.7%

2.3%

3.7% 3.9%

4.8%5.3%

5.7%6.1%

6.8%

6.1%5.4% 4.8%

5.8%5.6%

6.4%

7.3%7.9%

9.0%9.1%

9.0%

8.7% 8.0%

-5.00%

-3.00%

-1.00%

1.00%

3.00%

5.00%

7.00%

9.00%

0

20

40

60

80

100

120

140

1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20

NB record of

RMB191.2bn on

7 Jul 2020

SB record

of HK$60.2bn

on 6 Jul 2020

Stock Connect Northbound and Southbound Trading ADT reached RMB74.3bn and HK$20.7bn in 1H 2020

Stock Connect Average Daily Trading Volume (HK$ bn)

Stock Connect revenue continued to set record highs, reaching 8 per cent

of the Group’s total revenue and other income in 1H 2020 (1H 2019: 6 per cent)

Shenzhen Southbound

Shanghai Northbound (1)

Shenzhen Northbound (1)

Shanghai Southbound

Stock Connect generated record revenue of HK$743mn in 1H 2020, 46% higher than 1H 2019 (Full Year 2019: HK$1,009mn)

Total average daily trading volume

Percentage of Southbound turnover of Hong Kong Market

Stock Connect – Trading Trends

Source: HKEX, SSE and SZSE as of Jul 2020

1. Northbound (NB) trading is conducted in RMB; The NB figures in the chart are converted to HKD based on the month-end exchange rate.

2. Does not add up due to roundings

31

Thank you.For further information on HKEX, please go to

hkexgroup.com and hkexnews.hk