Singapore Exchange Limited

Very good evening to everyone joining us here today, both in person and via the webcast. I'm Liana from Investor Relations. Welcome to SGX Group's FY2026 Full Year Results Briefing. In a while, I will invite our CFO, Mr. Daniel Koh, to present the financial highlights, followed by our CEO, Mr. Lobun Chai, who will present the business updates. Following the presentation, we will have a Q&A session with SJX Senior Management. Please introduce yourself before you ask your questions. It's now my pleasure to invite Dan to present the financial results. Dan, please.

Good evening, everyone. Thank you for joining us here today. It is a real pleasure to share with you SGX Group's standout performance for financial year 2026. We achieved another milestone year, delivering our highest ever full-year revenue and earnings. Net revenue grew by 14% and adjusted earnings grew by 25%, continuing the strong momentum from a high base in FY25. Net revenue for our equities cash business or SCF stock exchange grew significantly by 28% as the securities daily average value rose 35% to its highest level in 18 years. This strong performance was built on structural market changes and focused execution. SGXFX delivered another record year with net revenue increasing 12% on average daily volume of US$190 billion, driven by client expansion and platform innovation. Currencies and commodities continue its strong growth trajectory, led by record volumes of several products including CNH and INR currency futures, iron ore, freight, petrochemicals and dairy contracts. Equity derivatives net revenue was comparable maintaining momentum from a record high base last year as our flagship China and India index franchises continued to capture risk management needs. Expenses increased by approximately 6% at the higher end of our guidance as we stepped up on investments. I will elaborate on the key cost drivers shortly. More importantly, we remain focused on operating leverage as the business scales. We are confident in delivering medium-term growth. We expect broad-based growth across all operating segments in FY27 as our diversified multi-asset strategy positions as well to deliver strong performance amid ongoing global uncertainties. We remain disciplined in capital management, balancing strategic investment and shareholder return. In FY27, we expect expenses to increase by 6-8% alongside CAPEX spend of approximately $100 million This is important to support our long-term growth and competitiveness. At the same time, I am pleased to announce that due to this year's capital recycling gains, the Board has proposed a one-off additional dividend of 12.5 cents per share. in addition to the previously guided fourth quarter dividend. This brings FY26's total dividends to $0.57 per share representing a 52% increase from the last financial year. Our strong balance sheet supports our plan to redeem our outstanding bonds in FY27 while positioning us well to pursue business opportunities. Now, let us walk through the headline financials. Group net revenue increased by 13.9%. Group expenses on an adjusted basis increased by 5.5%. Group impact on a reported basis increased by 7.8%, while on an adjusted basis it increased by 24.6%. Our margins continued to improve. Adjusted Operating Profit Margin and Adjusted NPAT Margin increased by 3.1% and 4.4% respectively. Let me now elaborate on the group's net revenue performance across our four operating segments. Our FICC revenue grew $55 million or 17% accounting for 25% of total revenue. I had touched on the record volumes of SGXFX, commodity and currency derivatives earlier. The breadth and depth of our multi-asset product suite and global client network positioned us well to capture increased risk management needs during heightened uncertainties. The equity's cash revenue grew by $100 million or 28% and contributed 34% to total revenue. The strong growth in SDAV reflected positive structural trends, including stronger fundraising activity and higher levels of participation across investor segments. Equity derivatives revenue was comparable year-on-year, maintaining last year's high base and accounted for 23% of total revenue. Equity derivatives volumes increased by 6%, driven by sustained demand in China A50, Gift Nifty and Taiwan contracts. The higher trading and clearing revenues were offset by lower treasury income. Platform and others revenue increased by 7% driven by higher data and co-location sales and higher fees since second half of FY 2025 This segment has grown at a steady average rate of 5% over the past three years Moving on to expenses Adjusted expenses increased by 5.5% as we increased resources to support growth initiatives Total staff cost increased by $27 million in both fixed and variable portions due to merit increments, higher headcount and higher profitability Technology expenses increased on various upgrades and system enhancements Adjusted expenses were $19 million lower than reported expenses because it excludes amortization of intangible assets, transformation-related costs, and other one-off items. The transformation is focused on enhancing our technology capabilities as part of our strategy for future growth. This will be an area of focus for the next two years as we continue to invest here. Adjusted earnings reflect our underlying core performance by excluding non-cash and other adjustments. Thus, we removed a non-cash net fair value gain of $10 million in line with our announcement in the first half of FY26 relating to the sale of trading technologies in July 25. Second, we added back Scientific Vita's FY26 impairment charge of $53 million given the divestment on 8 July 2026. This transaction underscored our disciplined approach to capital management as we sharpened our focus on growth priorities. Lastly, we added back $18 million, consistent with items elaborated in the previous slide on expenses. Turning to capital management, We remained disciplined and proactive in deploying capital to create long-term value. Our strong execution has delivered a consistent growth track record while we undertake strategic capital recycling initiatives. We maintained a balanced approach, continued investment in growth opportunities while delivering sustainable returns to shareholders. Turning to how we invest for growth organically, we will continue to deploy capital into opportunities that strengthen our competitive positioning. FY27 CAPEX will increase to around $100 million, reflecting targeted investments in product innovation, including the expansion of our SDX FX franchise and gold initiatives, platform modernization, and enhancing enterprise capabilities. In line with these, FY27 expenses are expected to increase by 6-8% as we continue to invest in technology and talent to drive growth. Now moving on to shareholder return. We remain fully committed to a sustainable and growing dividend and are confident to deliver the dividend growth trajectory of 0.25 cents increase every quarter to FY28 as previously guided. As highlighted earlier, the Board proposes a 12.5 cents one-off additional dividend from capital recycling gains this year, an amount higher than the fourth quarter planned dividend. This rewards our shareholders for your continued trust in SGX. FY26's total dividend will be $0.57 per share, a 52% increase from FY25. With that, let me now hand over to Gun Chai, our CEO, who will deliver the business updates. Thank you.

Good evening and thank you for joining us. As Daniel has shared, FY2026 was a strong year for SGX Group. Our performance demonstrates the strength of our multi-asset strategy that we have been executing over the past decade. We have deliberately built a broader, more resilient and more global business. As a result, we are able to capture new opportunities across changing market environments. As we look ahead, global capital markets are being shaped by major structural shifts. Geopolitical uncertainty remains elevated as capital allocation to Asia continues to grow. Global investors are seeking cross-asset solutions and more efficient ways to manage their risks. Concurrently, rapid innovation is reshaping market infrastructure and client expectations. These strengths underscore the relevance of SGX long-term strategy. were uniquely positioned to help clients navigate uncertainty across investment opportunities and connect capital across markets. To maintain this leadership and drive sustainable growth, we are investing with discipline across products, platforms, and enterprise capabilities. Our established derivatives franchise is where The benefits of our global multi-asset business are most evident today. In FY26, we delivered another milestone year as we broaden and deepen our market leadership. The deep and diverse liquidity across our franchise anchors global participants with activity increasingly extending beyond Asian trading hours. T plus 1 volumes have risen from 18% in FY23 to 22% today, reflecting broader international participation. In listed FX, we see robust momentum. Volumes in our listed FX franchise has grown at 38% CAGR over the past three years, as clients navigate heightened geopolitical and macroeconomic crosswinds. Our RMB and Rupee contracts are the 2nd and 8th most traded FX futures contracts in the world. Adding to these flagship products are our fast-growing Korean won futures with the latest daily average volume growing at a 3-year CAGR of 77%. In a world where Asia is Gradually shaping global capital flows and currency markets, SGX has become the exchange where global participants come to manage Asian FX risk. For commodities, geopolitical risks are redefining the role of this asset class in global portfolios, while seeing a critical inflection. Financial participants now represent over half of our trading volumes, with more than 70% of all futures volumes traded on-screen, enabling robust price discovery and furthering liquidity. Our commodity derivatives volumes have expanded at a 24% three-year CAGR, anchored by INR. In equity derivatives, our strength lies in the scale and liquidity we have built across key Asian equity benchmarks. Liquidity attracts liquidity, creating powerful network effects that are difficult to replicate. In Greater China, our China equity contract remains the most liquid international futures contract for Chinese equities. anchoring substantial pools of liquidity as DAB grew 9% year-on-year in FY26. Our Taiwan Futures Contract is the most widely traded international futures tracking one of the world's most important technology ecosystem with almost 90% market share by volume and open interest. This has allowed investors to express their market views on the global chip industry, AI and digitalization. We introduce micro-talent futures to provide more precise and cost-efficient access for a broader range of participants and have since applied this approach for our Japan and Singapore benchmarks. To maintain this growth, we are accelerating product innovation and deepening our partnerships with global index providers. This allows us to expand our product shell in areas where we're seeing evolving customer demand and long-term opportunities. In FY26, we further expanded our partnership with FTSE by launching Asian Government Bond Futures, tracking FTSE's Asia Pacific Liquid Government Bond Index Series extending our director's offering into fixed income and providing clients with another way to manage Asian market exposure. By the end of this calendar year, through an enhanced licensing agreement with MSCI, we will introduce new contracts that span a wide range of global markets, sectors and teams. Our long-standing relationship with S&P Global Platts has been instrumental in establishing global recognized benchmark contracts across iron ore, cooking coal, petrochemicals, and other energy products. Alongside these partnerships, we have leveraged capabilities within our own index business, iEdge, to launch crypto perpetual futures in FY26. Our crypto perpetual futures are an example of how we are extending our relevance into new structures and asset classes by building adjacent ecosystem around franchises where we already have strong market positions. Looking ahead into FY27, gold is another natural adjacency for our commodities franchise. were building a more comprehensive ecosystem with the industry and MAS to build the OTC gold market and a deliverable futures contract providing clients with more ways to access and manage gold exposure while developing Singapore as a leading gold hub. Impara was seeing opportunities to expand cross-asset participation Our multi-asset platform enables clients to manage their risk and investment needs more holistically. By leveraging our insights and connectivity across our platforms and markets, we can anticipate client needs and deliver more tailored solutions. As client engagement deepens, so too our relationships and ability to capture a greater wallet share. Let me now move on to SGX FX where our client-centric approach is delivering strong results. SGXFX was the fastest growing exchange backed OTC FX platform in FY26 with average daily volume at US $190 billion a 36% CAGR growth from FY23. What is notable is the quality of this growth. We saw strong broad-based expansion in both bank and non-bank segments, with EMEA and The America driving fastest revenue growth. Going forward, we will elevate our client proposition by strengthening our competitive modes. First, we are enhancing the synergies between our OTC and listed FX franchises. This includes making it easier for clients to move between bilateral OTC execution and listed FX futures through our exchange for related positions or known as EFRPs and enabling participants to transfer risks efficiently while reducing friction, lowering costs and improving capital efficiency. In addition, we will further expand our client coverage, building on the strong traction in newer markets we have entered such as the Middle East, Korea, and Brazil. Finally, we are enriching our offerings in emerging market currencies, options capability, data, and API-based services. Together, these initiatives position SGSFX for continued growth as we meet clients' needs for greater connectivity, integrated workflows, and deeper liquidity. While our drifters and FX businesses scale globally, we are equally focused on sustaining the momentum in our stock market. FY26 was an exceptional year for our stock market, marked by improving participation, liquidity and trading activity. Securities Daily Average Value or SDAB grew substantially across all investor and stock segments Retail participation reached a five-year high while institutional interest has broadened beyond the STI index constituents Small and mid-cap activity has strengthened with institutional inflows into this segment growing three times This reflects the combined impact of better research coverage, stronger issuer engagement and growing investor attention. On the issuer side, the IPO pipeline is strong. We welcome 21 new listings in FY26. In our pipeline, we see interest from diverse sectors including digital infrastructure, healthcare and consumer, Real Estate Services and REITs. What is encouraging is the stronger institutional participation in IPOs, including support from EQDP fund managers and long-only investors. Together, with our Value Unlocked movement and other initiatives to grow demand and supply, we continue to work with the ecosystem to drive sustainable liquidity, while also expanding the ways investors can access opportunities through SGX. Initiatives such as the Global Listing Board, cross-listing of ETS and SDR expansion to include US listed stocks further enhance SGX connectivity with global and regional markets. These efforts are mutually reinforcing. Greater participation improves liquidity, which attracts higher quality listings reinforces investors' confidence and in turn drives deeper market engagement and creates a virtuous cycle. We are committed to creating a more vibrant and connected stock market that reinforces Singapore's position as a leading capital markets hub. The progress in our stock market together with the momentum across derivatives, FX and commodities reflect the broader SGX story. We have significantly transformed the composition of our business. Our overall operating revenue base has nearly doubled, growing from just over $800 million in FY16 to more than $1.5 billion in FY26. Importantly, this growth is driven by multiple businesses across the group. Our strong performance provides a solid foundation to capture the next phase of growth. First, we will continue to innovate around franchises where we already have liquidity and leadership, creating new ways for clients to access markets, manage risk and deploy capital. The scale of our franchises give us a strategic view of how capital, risk and liquidity move across market. As clients increasingly invest across asset classes, we will harness the data we have to secure a larger share of our clients' trading portfolios. Alongside this, we will focus on executing the stock market initiatives that are underway. In close collaboration with market participants, we will work on translating the momentum in our stock market into enduring and sustainable liquidity. Finally, we will enhance our enterprise capabilities by investing in technology, data and automation, including AI. This will enable operational efficiency, strengthen decision-making and build a more agile, future-ready SGX. At the same time, we are also investing in product innovation and platform modernization as mentioned by Daniel earlier. FY2026 was another year of growth for SGX Group. Notwithstanding market conditions, we are confident that with focus and consistent execution, we will capture the opportunities ahead of us. Thank you for your attention and I invite my colleagues and I to take questions now. Next you can have the first question.