4Q and fy 2022

Earnings Presentation

10 March 2023

Delivery on strategic initiatives in 4Q 2022 and beyond

- New Products -.

  • Whoosh, an electric scooter rental service, completed its IPO on MOEX, raising a total of RUB 2.1 bln.
  • The Finuslugi platform welcomed a third issue of bonds placed by Kaliningrad Region.
  • The inaugural CNY-denominatedRussian-law ETF that invests in Money Market instruments and corporate bonds of Russian companies was launched.
  • Cash-settledEuropean options on 26 most liquid equities were introduced on the Derivatives Market.
  • Cash-settledfutures and futures-style options on the USD/CNY FX pair and two foreign ETFs tracking global indices are now available for trading.

- New services -

  • MOEX presented updated versions of ESG Best Practices Guide and the Bond Issuers' Guide.
  • On the Money Market, clients can now do repo, deposit and credit transactions with a floating interest rate.
  • MOEX introduced 7 new indices, including the Refined Gold Index, one ESG equity index as well as several new corporate bond indices.

- New clients & partners -

  • The total number of retail clients registered on the Securities Market approached 24.0 mln1. The number of registered IIAs amounted to 5.2 mln1.
  • The Primary Bond Market started to recover. In 4Q 2022, 91 corporates - including 16 newcomers - placed 164 bond issues, raising a total of RUB 1.4 trn.
  • MOEX signed an agreement on cooperation for the development of carbon units' trading system.
  • The NSD filed an appeal to the EU Council as part of the legal procedure for appealing against the decision to include NSD in the EU sanctions lists.

Source: Moscow Exchange.

2

1.

As of the end of February

4Q 2022 summary of financials

Fee & commission income

RUB bln

-17.6%

+10.4%

12.0

10.6

9.9

8.1

8.9

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

EBITDA

RUB bln

+49.1%

+28.8%

15.3

10.3

11.1

11.4

11.9

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

Reported EBITDA = PBT + D&A

Operating expenses (excluding other operating expenses)

RUB bln

6.6

-0.8%

+12.2%

6.1

5.8

5.4

6.0

1.9

1.4

1.9

1.4

1.0

2.7

3.1

2.9

2.9

3.1

1.5

1.6

1.6

1.5

1.5

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

Remaining administrative expenses1

D&A and IT maintenance

Net income

Personnel expenses

RUB bln

+48.1%

+28.4%

11.2

8.1

8.3

8.7

7.6

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

Reported net income

Source: Moscow Exchange.

1. Includes remaining administrative expenses, calculated as general and administrative expenses less D&A and maintenance of equipment and intangible assets.

3

Diversified fee and commission income

Fee & commission income performance

Fee & commission income breakdown

RUB bln

RUB bln

4Q 2021

4Q 2022

Change

Change

5Y CAGR

YoY, bln

YoY, %

2017-22

Money Market

3.37

2.42

-0.96

-28.4%

+10.9%

FX Market

1.15

1.51

+0.35

+30.7%

+8.1%

ITSLM1

1.03

1.04

+0.01

+1.0%

+15.4%

Fixed Income Market

0.60

0.98

+0.38

+63.3%

+0.2%

Derivatives Market

1.64

0.92

-0.71

-43.6%

+13.2%

Equities Market

1.56

0.70

-0.86

-55.0%

+15.2%

Other business lines

2.61

2.29

-0.33

-12.5%

+17.4%

Total F&C income

11.96

9.86

-2.11

-17.6%

+12.1%

-17.6%

11.96

22%

13%

14%

5%

9%

10%

28%

9.86

23%

Other business lines

7%

Equities Market

9%

Derivatives Market

10%

Fixed Income Market

11%

ITSLM1

15%

FX Market

25%

Money Market

4Q 2021

4Q 2022

Source: Moscow Exchange.

4

1. ITSLM stands for IT Services, Listing and Marketplace Fee Income. The line includes information services, sale of software and technical services, listing and other service fees and financial marketplace services.

Operating expenses in 4Q'22 (excluding provisions)

Major expense items

comments

RUB mln

4Q 2021

4Q 2022

Change

YoY

Personnel expenses

2 707.4

3 147.1

+16.2%

D&A and IT maintenance

1 525.4

1 482.4

-2.8%

Remaining administrative

1 862.7

1 416.6

-24.0%

expenses,1 incl.:

•

Advertising and marketing costs

570.9

153.0

-73.2%

•

Loss on disposal of property, equipment and

12.9

109.3

+747.3%

intangible assets

Total OPEX

6 095.5

6 046.1

-0.8%

• OPEX for 4Q'22 came virtually unchanged, decreasing by 0.8% YoY, as

dynamics of personnel and G&A expenses offset each other.

• FY'22 OPEX increased by 16.2%, comfortably fitting the previously

announced guidance of below 20%.

• The 16.2% YoY rise in personnel expenses decomposes into: [1] 17.0 p.p.

net effect of additional bonus provisions, [2] -0.8 p.p. other factors.

• Headcount measured by the number of employees was up 2.6% YoY.

• Advertising and marketing costs decreased 73.2% YoY as the Finuslugi

promo campaign came to a conclusion.

• Loss on disposal of property, equipment and intangible assets line surged

Headcount, number of employees EOP

+2.6%

-2.3%

2,279

2,381

2,377

2,394

2,339

Operating expenses

RUB mln

-0.8%+12.2%

6,096

6,603

5,805

5,389

6,046

56%

54%

51%

46%

48%

44%

46%

49%

54%

52%

8x as obsolete software was written off.

• D&A and IT maintenance declined by 2.8% YoY, while D&A was up 17.4%.

The latter is explained by the higher CAPEX of 4Q'21. IT maintenance costs

decreased 37.8% YoY as foreign vendors discontinued their service.

• 4Q'22 CAPEX was RUB 1.17 bln. FY'22 CAPEX amounted to RUB 4.18 bln,

which is in-line with the FY22 guidance of RUB 3.8-4.3bln. The top 5

projects account for 38% of CAPEX.

• The FY'23 OPEX growth guidance is 12-16% YoY.

• FY'23 CAPEX guidance range is RUB 4-7 bln. Actual spend will depend on

the implementation of software & hardware renewal program.

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

General and administrative expenses

Personnel expenses

5

1. Remaining administrative expenses are calculated as general and administrative expenses less depreciation of property and equipment, amortization of intangible assets, maintenance of equipment and intangible assets.

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OJSC Moscow Exchange MICEX-RTS published this content on 10 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2023 11:34:17 UTC.