NZX Limited · NZX:NZX
NZX — Shareholder Meeting (April 2022)
37 slides from NZX's shareholder meeting presentation, Apr 6, 2022
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting Auckland 6 April 2022
Slide 2: Today's meeting
Today’s meeting • Welcome and strategic overview – James Miller, Chair • Report on financial and business performance – Mark Peterson, CEO • Resolutions - Audit fees - Election of Peter Jessup - Re-election of James Miller - Re-election of Elaine Campbell - Director fees • Voting • Questions 2
Slide 3: Voting and asking questions
Voting and asking questions Voting Card Question box 3
Slide 4: Welcome and strategic overview
Welcome and strategic overview James Miller, Chair
Slide 5: New Auckland office and Board introduction
New Auckland office and Board introduction [Holding slide for Auckland office walk through] 5
Slide 6: NZX 2.0
NZX 2.0 Scale in capital flows drives complementary opportunities and growth Capital Flows Helping businesses get access to capital and providing investors opportunities to grow their investments via equity or debt vehicles Greater Product/Markets and Access: investor flows and More activity drives
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Slide 8: Celebrating the first auction of the NZ Emissions Trading Scheme
Celebrating the first auction - of the y NZ Emissions | Trading Scheme <7 \ 17 March 202.) p27
Slide 9: Technology focus
Technology focus • High priority placed on completing the Financial Markets Authority (FMA) action plan • Appointment of Robbie Douglas as Chief Information Officer in 2021 • Appointment of Peter Jessup to the Technology Committee in 2021 9
Slide 10: Director changes
Director changes • John McMahon retired from the NZX Board on 31 December 2021 • Peter Jessup appointed onto the NZX Board effective 1 January 2022 • Peter brings more than 35 years’ financial markets IT experience – including trading, surveillance, clearing, depository and settlement systems • He w
Slide 11: NZ RegCo
NZ RegCo • NZ RegCo is structurally separate from NZX’s commercial and operational activities • Governed by a separate board with: • An independent Chair - Trevor Janes; and • The majority of members independent of the NZX Group: - Elaine Campbell (NZX Director) - Annabel Cotton (Independent) - John
Slide 12: The future
The future • Mark Peterson’s employment term extended as Chief Executive to April 2024 • With a clear date now set of CEO succession, it is an ideal opportunity for the board to consider Chair succession. • The new Chair will lead the process to appoint the next NZX Chief Executive • NZX will contin
Slide 13: Directors fees
Directors fees • Fee pool of $435,000 was last independently benchmarked in 2003 and has remained static since • PWC engaged to carry out market benchmarking for non-executive director fees based on a group of 20 peer companies • The outcomes of this exercise are summarised in a report and can be fo
Slide 14: Outlook for 2022
Outlook for 2022 • NZX has today announced guidance* to be in the range of $33.5 million to $38.0 million • NZX Board notes the increased market volatility from the start of the year, and a general tightening in financial conditions *The guidance is subject to market outcomes, particularly with resp
Slide 15: Report on financial and business performance
Report on financial and business performance Mark Peterson, CEO
Slide 16: Delivering on a growth strategy
Delivering on a growth strategy • Capital listed and raised remains a high priority • Continuing to build liquidity through greater connection, participation, functionality and new products (NZX20 Futures) • Partnering to accelerate the growth and realise the potential in our Dairy market • Investin
Slide 17: Performance and results
Performance and results • 2021 successfully continued the step-change we saw in our markets in 2020 • Achieved higher levels of market activity particularly for capital listed and raised, and total value traded. • Smartshares and Wealth Technologies continued to gain scale providing greater earnings
Slide 18: Focus on our Capital Listed and Raised
Focus on our Capital Listed and Raised • Recognition of global volatility impacting market conditions • 2021 a solid year for new listings and capital raisings • Listed issuers making use of the ability to source equity and debt funding when needed • Continued focus on identifying new prospects 18
Slide 19: Focus on our Capital Listed and Raised
Focus on our Capital Listed and Raised • Recognition of global volatility impacting market conditions • 2021 a solid year for new listings and capital raisings • Listed issuers making use of the ability to source equity and debt funding when needed • Continued focus on identifying new prospects 19
Slide 20: Focus on our Capital Listed and Raised
Focus on our Capital Listed and Raised • Recognition of global volatility impacting market conditions • 2021 a solid year for new listings and capital raisings • Listed issuers making use of the ability to source equity and debt funding when needed • Continued focus on identifying new prospects 20
Slide 21: Focus on our Capital Listed and Raised
Focus on our Capital Listed and Raised • Recognition of global volatility impacting market conditions • 2021 a solid year for new listings and capital raisings • Listed issuers making use of the ability to source equity and debt funding when needed • Continued focus on identifying new prospects 21
Slide 22: Market development
Market development • High levels of engagement and interest in our markets – attracting both local and international attention • On-market liquidity levels averaged 62% in 2021. Our objective is to reach 70-80% over the next five years. • Positive trends showcase how a healthy listed market can deli
Slide 23: Smartshares
Smartshares • 119,869 members across KiwiSaver, investment superannuation, and insurance solutions • Attracted more than $1 billion in net investor cash flows • Acquisition of ASB Superannuation Master Trust management rights to add $1.8 billion in retirement saving • Additional $385 million of FUM
Slide 24: Wealth technologies
Wealth technologies • Client transitions have driven growth, and there is a positive outlook for this to continue • Eight clients on the new platform, three new onboarded in 2021 • 32,095 investor portfolios being managed through our wealth management platform • Increased level of demand for NZX Wea
Slide 25: A spotlight on Dairy Derivatives
A spotlight on Dairy Derivatives 25
Slide 26: Tech and Risk Management
Tech and Risk Management • Technology remains a key priority for NZX • Capacity added to the technology and securities IT team • Continued focus on quality, reliability and risk reduction • New trading system to assist NZX in meeting the anticipated needs of Participants in New Zealand’s capital mar
Slide 27: Commitment to sustainability
Commitment to sustainability • NZX has held five successful NZ ETS auctions with increased interest building • Rising New Zealand Unit (NZU) price and importance of NZ ETS seeing increased focus from Government and sector • Toitū Envirocare engaged to independently verify and report NZX emissions fr
Slide 28: Tribute to teamwork
Tribute to teamwork • NZX is bound by a team who brings our culture to life, while we work hard to build New Zealand’s tomorrow • The role of capital, and a trading platform like the exchange, is a central chapter in the story of New Zealand’s economic development • We have stood the test of time, w
Slide 29: Resolutions
> Resolutions
Slide 30: Resolution 1: Auditor
Resolution 1: Auditor That the Board be authorised to determine the auditor’s fees and expenses for the 2022 financial year. 30
Slide 31: Resolution 2: Election of Peter Jessup
Resolution 2: Election of Peter Jessup To elect Peter Jessup as a director of NZX Limited. Peter joined the NZX Board in January 2022, following his appointment to the Technology Sub-committee in April 2021. He brings more than 35 years’ financial markets IT experience – including trading, surveilla
Slide 32: Resolution 3: Re-election of James Miller
Resolution 3: Re-election of James Miller To re-elect James Miller as a director of NZX Limited. James was appointed as a director in August 2010 and has been NZX Chair since May 2015. He has deep experience in the share broking industry, with more than 14 years across Craigs Investment Partners, AB
Slide 33: Resolution 4: Re-election of Elaine Campbell
Resolution 4: Re-election of Elaine Campbell To re-elect Elaine Campbell as a director of NZX Limited. Elaine was appointed as a director in February 2019. She has more than 20 years’ legal experience, primarily focusing on financial and capital markets, IT and telecommunications law. Elaine is curr
Slide 34: Resolution 5: Director fees
Resolution 5: Director fees To increase the NZX director fee pool by $87,000 to $522,000. 34
Slide 35: Voting
Voting
Slide 36: Questions
> Questions
Slide 37: Thank you
Thank you The information provided is a guide only and intended for general information purposes. It does not constitute investment advice Any representation or statement expressed in this information is made in good faith on the basis that NZX Limited (NZX) of any of ts related companies is nol abl