The Tel-Aviv Stock Exchange Ltd.

As a reminder, this conference is being recorded May 13, 2025. The recording will be publicly available on TAZER's website. With us today on the line are Mr. Itay Ben-Zaev, CEO, and Mr. Yudha Ben-Ezra, CFO. Before I turn the call over to Mr. Itay Ben-Zaev, I would like to remind everyone that this conference is not a substitute for reviewing the company's annual financial statements, quarterly financial statements, and interim reports, to the first quarter of 2025, in which full and precise information is presented and may contain inter alia forward-looking statements, in accordance to Section 32A to Securities Law 1968. In addition to IFRS reporting, we might mention certain financial measures that do not conform to generally accepted accounting principles. Such non-GAAP measures are not intended in any manner to serve as substitute for a financial result. However, we believe that they provide additional insight for better understanding of our business performance. The conciliations between these non-GAAP measures and the most comparable related GAAP measures are included in tables that can be found in our earnings press release and in the slide presentation accompanying this call. Both can be accessed on the English Maya site and the investor relations portion of our website at ir.pays.co.il. Mr. Benzaev, would you like to begin?

Good evening, Israel Time, everyone, and thank you for joining us today. I'm happy to host you in our earnings call. The report for Q1 2025 shows that the quarter ended with record results in all PACE business lines and core activities. I'm pleased to share with you that during the quarter, our revenues increased 21% from the same quarter last year. Our adjusted EBITDA increased 27%, bringing our adjusted EBITDA margin to a record of 47.2%, and our net income increased 32% compared to the same quarter last year. The results reflect the continued implementation of FACE strategic plan and the growth potential of the Israeli capital market. Yuda Ben-Evra, our CFO, will discuss the financial statements in detail later in this call. For the whole of the first quarter, the TA35 and TA125 indices recorded a positive return of 1% and 0.8%, respectively, compared to a decline of 0.9% and 4.3% in the Dow Jones and S&P 500 indices, respectively. At the end of Q1 2025, TACE's equity market cap reached 1.4 trillion shekels, the same as at QN 2024. Equity average daily trading volumes hit an all-time high with a 35% jump and totaled 2.9 billion shekels in Q1 2025 compared to 2.1 billion shekels in the same quarter last year. A 10 billion shekels net inflow of funds invested by foreign and local investors in local indices was one of the factors responsible for this surge in trading volumes. In addition, we have also seen significant growth in Q1 2025 in purchases of ETFs on local equity and bond indices of 2.2 billion shekels and 1.3 billion shekels, respectively, while sales of 2.2 billion shekels were recorded in ETFs on international equity indices. Moreover, purchases of mutual funds that invest in equities in Israel amounted to 2.2 billion shekels, while sales of 0.4 billion shekels were recorded in mutual funds that invest in foreign equities. Furthermore, the value of the public holdings in foreign funds traded on TAFE reached a total of 15.2 billion shekels 1.1 billion shekels higher than the value at the end of 2024. Five new companies completed an IPO in Q1 2025 alone, the same number of IPOs that took place during the whole of 2024. A total of 3 billion shekels was raised on the equity market compared to 2.5 billion shekels in the same quarter last year, and a jump of 50% on the amount raised in Q4 2024. The Ministry of Finance raised 49 billion shekels on TAFE in Q1 2025, compared with 52 billion shekels in the previous quarter. During February 2025, the Ministry of Finance also managed to raise $5 billion on international markets from a public issuance of bonds, which constitutes a further vote of confidence in the Israeli economy, even during a period of global and local challenges. In the corporate bond market, the business sector raised 44.3 billion shekels, which is 103% more than in the same quarter last year, and 23% more than in Q4 2024. As part of our continued plan to enhance liquidity in our market, I am pleased to inform you that, on May 4th, the new market-making program was launched. with an investment of several million shekels over two years. The key improvements in the program include an increase in the number of market makers, with some of these acting as market makers in equity for the first time. There will also be two market makers per share, which will open the door to more competition and provide a greater depth of trading. In relation to the TA90 index, market makers will operate in all the shelves included in the index with the obligation to quote being significantly improved and margins being considerably reduced. To date, 265 companies have signed on the market making program and we believe that we will see additional companies joining it at a later stage. In addition, in late April, we published for the first time a tailor-made market-making program for public companies, within the framework of which we will offer companies a unique market-making program tailored to the needs of each company that chooses to join the program. I'm pleased to update that Bank of Berlin was the first to take part in the TaylorMade program and we have already published an RFI to local and foreign market makers for the bank's dedicated program. We attach great importance to increasing liquidity and improving the marketability of the companies in accordance with our strategic plan and especially in creating essential tools that will help companies realize their potential with foreign and local investors. In addition, within the context of making trading more sophisticated and increasing the range of services and trading orders, we intend to launch TAL Trading at Last at the beginning of July this year, in which all trades are executed at the closing price of the closing auction. This will be a new trading phase using a premium order, which will command a higher commission than the commission on standard transactions. In the data distribution field, we have witnessed an increase in retail data consumption. which stems from the fact that one of the big banks has chosen to purchase real-time data distribution for all its customers. We are confident that we will see other PACE members following the same path in light of the constant growth pressure from the retail side to operate in the capital market. In conclusion, The Q1 2025 financial statements show that even in this challenging period, we are still witnessing the stability and resilience of states, which rests on the strong foundation of the Israeli economy. We are continuing to invest in developing and enhancing the local capital market, and we will continue to work toward achieving the goals we have set for ourselves in accordance with our strategic plan. And now, I'd like to hand over to Mr. Yuda Veneza, who will continue with the review of the first quarter results.

Thank you, Itai. Tested once again post-exform financial results for the first quarter. These record results in all our business lines and core activities. These results underscored the whole foundation of the Israeli economy, and reflect the continuous confidence of both local and global investors in Israel's economy and capital market. Some of the main financial metrics are shown in slide number 4. Our revenues display substantial growth of 21% for the quarter and hit a new record totaling 131 million shekels. Our adjusted EBITDA, ETS, 61.8 million shekels, also set a new record. While our adjusted EBITDA margin hit a record 47.2%. Our net profit increased to a new record of 35.8 million shekels. I will continue with slide number 6 to show some of the key highlights from our results for the first quarter. Revenues. totaled 131 million shekels, compared to 108.3 million shekels in the same quarter last year, an increase of 21%, which was evident across all activities. Our revenues from non-productional services increased to 62% of total revenues and an increase of 2%. Expenses totaled 84.8 million shekels, compared to 75.3 million shekels in the same quarter last year, an increase of 14%. The increase in expenses is due mainly to, including benefit expenses and computer and communication expenses. Adjusted EBITDA totals 61.8 million shekels, compared to 48.6 million shekels in the same quarter last year, an increase of 27%. The increase is due mainly to the higher revenues, Adjusted net profit amounted to 36.9 million shekels compared to 27.8 million shekels in the same quarter last year, an increase of 32%. The increase is due mainly to an increase in revenue from services, as of the increase in cost and tax expenses. Our basic EPS reached a new high of 0.39 shekels, increasing by a record 40% compared to the same quarter last year. Last year. Let's now go to slide 7, where we can take a deeper look into other revenues in Q1 2025. Revenues from trading and selling commissions increased by 15%, compared to the same quarter last year, and totaled 49.5 million shekels. The increases mainly due to higher trading volumes, many inequities, and mutual fund units. This increase was partially offset by a reduction in the effective commission rate. Revenue from missing fees in annual levies increased by 12%, compared to the same quarter last year, and totaled 24.3 million shekels. The increase is mainly due to higher revenues from annual levies, mainly as a result of re-operation and the value of the listed securities. Revenues from missing fees were also higher, and it is being made as a result of more companies applying for listings and offerings. Revenue from clearing out services increased by 60%, compressed to the same quarter last year, and totaled 31.9 million shekels. The increase is made to higher revenues from clearing out services to members, especially following the completion of regulation measures in relation to the OTC transactions. Other factors resulting in the increase were the higher custodian fees as a result of increasing the value of the assets that are held in the custodian ship and objecting the custodian fees price list. Revenue from distribution and connectivity services increased by 8% compared to the same quarter last year and totaled 24.5 billion shekels. The increase is mainly due to higher data distribution revenues from business and private customers in Israel. I will continue with slide 10, which shows our Q1 2025 expenses. Employee benefit expenses increased by 14% compared to the same quarter last year, totaling 46 million shekels. The increase is mainly due to higher salaries, increased variable compensation, driven by higher profitability and lower usage of vacation days. The available compensation has reached the maximum level set in the collective agreement. Computer and communication expenses increased by 16%, and total raised 0.6 million shekels. The increase results mainly from an increase in the maintenance costs to computer systems and licenses, and from an increase in manpower and projects. Marketing expenses increased by 32%, compared to the same quarter last year, a total of 1.8 million shekels. Most of the increases are attributed to the timing of campaigns. Depreciation and amortization expenses increased by 8% compared to the same quarter last year, a total of 14.6 million shekels. The increase is due mainly to new projects and to an increase in software and license. Health financing income totaled 0.9 million shekels. compared to financing income of 1.4 million shekels in the same quarter last year. The decrease is due mainly to a decrease in the balance of deposits, to a reduction in gains from up-to-date securities. I would like now to review our financial position highlights, at the end of Q1 2025, as shown in slide 11. Our equity total is 505 million shekels. Our adjusted equity includes deferred income from listing fees and accounts, for 71% of the adjusted balance sheet, excluding other derivatives, positional balances. We held 337 million shekels in cash in investment in financial assets. In January 2025, despite having sufficient liquidity, we signed a two-year, 130 million shekels loan with the approved terms, which was used to repay the 100 million shekel bank loan that existed at the end of 2024, the 30 million shekel differences between the two loans increases test liquidity funds. The agreement also includes the one year 120 million shekel credit line. The balance of the new bank loan totaled 123 million shekels. The surplus equity, also regulatory requirement, totaled 409 million shekels. compared to 627 million shekels at the end of 2024. The surplus liquidity of regulatory requirements totaled 111 million shekels, compared to 172 million shekels at the end of 2024. Dedication of surplus equity and liquidity is mainly due to the 202.4 million shekels used for the buyback of the company's shares in the first quarter. Let's now go to slide 12, where we can review our cash flow highlights in Q1. Cash flows from investing activities resulted in negative cash flow of 20 million shekels, compared to negative cash flow of 12.5 million shekels in the same quarter last year. The increase is due mainly to an increase in investment in corporate and equipment. Cash flow from financing activities resulted in negative cash flow of 232.7 million shekels. compared to a negative cash flow of 45.1 million shekels in the same quarter last year. The change is due mainly to the buyback of the company's shares in an amount of 202.4 million shekels and the dividend payment in an amount of 50.7 million shekels. Tax-free cash flows increased by 9 million shekels compared to the same quarter last year, a total of 35.6 million shekels. The increase was mainly due to the increase in the EBITDA. And with that, I will turn this call to our moderator to conduct the Q&A.