TMX Group (X) TD Cowen’s 8th Annual Future of the Consumer Conference summary

Business overview and segment performance

• Diversified model with four main segments: Global Solutions, Insights and Analytics (44% of Q1 2024 revenue), derivatives trading and clearing (20%), listings (18%), and equities/fixed income trading and clearing (18%).

• Long-term targets include high single to double-digit growth for TSX Trust, derivatives, Trayport, and VettaFi businesses.

• Datalinx and listings are classified as strong growth businesses, with Datalinx achieving double-digit growth last year.

• Overall revenue growth target is 5%+; recent CAGR is about 7%.

• Double-digit adjusted EPS growth targeted.

Strategic objectives and recurring revenue

• Aims for recurring revenue to reach at least two-thirds of total revenue; currently at 55%, up from 50% in 2018.

• Global Solutions, Insights and Analytics segment targeted to exceed 50% of revenue; currently at 44%.

• Revenue outside Canada now at 50%, meeting a key transformational goal.

• Long-term horizon for these targets is 10+ years, with organic growth as the primary driver.

• M&A is used to accelerate strategy, not as a core strategy itself.

Growth drivers: VettaFi and Trayport

• VettaFi has averaged 16% annual growth pre-acquisition; Q1 pro forma growth was 17%.

• Cross-selling VettaFi to Canadian clients and leveraging Datalinx network seen as further growth opportunities.

• Trayport saw trader subscribers up 26% YoY in Q1; revenue growth supported by renewals and upselling.

• Trayport expected to maintain low-teens growth, consistent with its five-year average of 12%.

• Energy trading volume growth driven by volatility from geopolitical shifts and increased international participation.