NZX Limited · NZX:NZX

NZX — Shareholder Meeting (May 2015)

26 slides from NZX's shareholder meeting presentation, May 21, 2015

  1. Slide 1: NZX Annual Meeting 2015

    INZX > NZX Annual Meeting 2015

  2. Slide 2: Inform. Exchange. Grow

    Inform. Exchange. Grow Presentation to Annual Shareholders Meeting 21 May 2015

  3. Slide 3: Agenda

    Agenda • Overview of the business • Our markets • Growth opportunities • Progress to date • Priorities going forward 3 © Copyright NZX Ltd. 2015

  4. Slide 4: Business Overview - Performance 2014

    Business Overview - Performance 2014 2014 2013 Change 2010-2014 % of 2014 Business ($M) ($M) (%) CAGR (%) Revenues Capital • Capital raising • Trading and 14.4 14.7 (3.6%) 15.8% 21.9% markets clearing • Listing fees • Participant services 22.8 20.2 12.6% 4.6% 35.0% • Securities data Soft • Dairy fut

  5. Slide 5: Our Markets Overview

    Our Markets Overview 5 © Copyright NZX Ltd. 2015

  6. Slide 6: We are a markets business

    We are a markets business • At our core, NZX is a markets business. We build and operate markets that are a critical part of the economies in which we operate • Markets are more than exchanges – they are networks that include the underlying infrastructure, the products that trade, the intermediaries

  7. Slide 7: Our markets are different, we must be different

    Our markets are different We must be different • Our chosen markets are different - They all have high growth potential - They are and will remain relatively small by global standards - They are underdeveloped • We have tremendous opportunities to grow the business but … - We need to do things diffe

  8. Slide 8: Growth Opportunities

    Growth Opportunities 8 © Copyright NZX Ltd. 2015

  9. Slide 9: Capital Markets: The Twenty Year Journey

    Capital Markets The Twenty Year Journey 18% 8% 17% -2% Market Cap Index CAGR 1,200 1,100 1,000 900 800 700 600 500 400 300 Au Super Assets 200 Au Market Capitalisation NZ KiwiSaver & Super Assets 100 NZ Market Capitalisation 0 0 2 4 6 8 10 12 14 16 18 20 Years Source: NZX Data, WFE, AVA, RBA 9 © Cop

  10. Slide 10: Capital markets: The beginning of a different market environment

    Capital markets The beginning of a different market environment New Capital Listed Secondary Capital Raised $8.0B $30.0B Equity Equity $7.0B Debt $25.0B Debt $6.0B $20.0B $5.0B $4.0B $15.0B $3.0B $10.0B $2.0B $5.0B $1.0B $0.0B $0.0B 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2003 20

  11. Slide 11: Capitalisation drives trading and clearing revenues

    Capital Markets Capitalisation drives trading and clearing revenues YoY Growth 13 % 21 % 9 2010-14 % CAGR 50% 40% 30% 20% 10% 0% -10% -20% 11 12 13 14 Q1'15 -30% Market Cap Nbr of Trades Trade Value Source: NZX Data 11 © Copyright NZX Ltd. 2015

  12. Slide 12: Capital markets: Capturing the opportunities

    Capturing the opportunities Capital markets • IPO pipeline • Futures, options • ETFs Products • NXT • Funds infrastructure • KiwiSaver registry Infrastructure • NZClear • NZX.com Retail • Advice • Relationships • Regulation Franchise • Advocacy 12 © Copyright NZX Ltd. 2015

  13. Slide 13: Funds management: SuperLife acquisition

    Funds management SuperLife acquisition • The SuperLife acquisition provides the platform to accelerate the growth of Smartshares ETFs in the rapidly growing NZ funds management sector • Globally, exchange traded funds (and passive managed funds more generally) have grown faster than other segments o

  14. Slide 14: Funds Management: ASX ETF Growth

    Funds Management ASX ETF Growth FuM ASX Listed ETF’s (Index) (#) 35 % 1,800 120 FuM (Au Sources) 1,600 ETF Market Capitalisation 100 1,400 # ETF's 1,200 80 ETF FuM 7 % 1,000 60 800 600 40 All FuM 400 20 200 0 0 CAGR Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 2010-14 Source: ASX,

  15. Slide 15: Net Funds Flow Relative to Funds Under Management

    Funds Management Net Funds Flow Relative to Funds Under Management 140% SLSS SLKS Net Funds Flow / Total Funds Under 120% 17 % Kiwisaver TOTAL 100% SLKS Management 80% 60% 3 % 40% SLSS 20% 0% % Growth YE Mar 09 YE Mar 10 YE Mar 11 YE Mar 12 YE Mar 13 YE Mar 14 2014 Note: Total FuM each year calculat

  16. Slide 16: Funds Management: Capturing the opportunities

    Funds Management Capturing the opportunities • 10 Funds ETFs • Target 20+ • Low-cost • Merge • 30+ investment options KiwiSaver • Reinvigorate • $856m current FuM Group • Two schemes • 140+ employers Superannuation won YTD 16 © Copyright NZX Ltd. 2015

  17. Slide 17: Agricultural production growth

    Agricultural informational and commodities Agricultural production growth NZ Dairy and Au Wheat Production Index 6 % 300 Dairy (NZ) KgMS Wheat (Au)1,000 MT 250 200 Dairy 150 100 2 % Grain 50 0 CAGR 1992/93 1997/98 2002/03 2007/08 2012/13 2010-14 Source: NZX Data 17 © Copyright NZX Ltd. 2015

  18. Slide 18: Price volatility

    Agricultural informational and commodities Price volatility NZ Dairy and CBOT Wheat Price Volatility (% monthly change) 50% 40% Dairy Price Index CBOT Spot Wheat Last 5 Years 30% Range 20% Dairy 10% (21)% – 27% 0% -10% Wheat -20% (23)% – 20% -30% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Source:

  19. Slide 19: Comparison of ASX Wheat and NZX Dairy contracts

    Agricultural informational and commodities Comparison of ASX Wheat and NZX Dairy contracts Trade Volume Futures / Physical (Index) (%) 1400 14% 1200 12% 1000 10% 800 8% 600 6% 400 4% 200 2% 0 0% 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Years since launch Years since launch ASX NSW Wheat ASX WA Whea

  20. Slide 20: Clear trade volumes

    Agricultural informational and commodities Clear trade volumes Volume by Harvest 1,000 Thousands 800 600 400 200 - Weeks 40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Source: NZX Data 20 © Copyright NZX Ltd. 2015

  21. Slide 21: Agricultural informational and commodities: Content

    Agricultural informational and commodities Content Subs (#) (#) 18,000 $1,000 600 16,000 $900 500 14,000 $800 $700 12,000 400 $600 10,000 $500 300 8,000 $400 6,000 200 $300 4,000 $200 100 2,000 $100 0 $0 0 Mar-11 Aug-11 Jan-12 Jun-12 Nov-12 Apr-13 Sep-13 Feb-14 Jul-14 Dec-14 Mar-11 Jul-11 Nov-11 Mar

  22. Slide 22: Agricultural: Capturing the opportunities

    Agricultural informational and commodities Capturing the opportunities • CFTC • Milk exposure • Butter contract Dairy • Clearers • Entry in WA, SA • Forwards Grain • Operating model • Dairy tools • iFarm Data • Shift to corporate • Academy • Print to online • AgriHQ Busienss Information • Monetisati

  23. Slide 23: Investment made

    Investment made People Infrastructure • Highly capable and stable • Systems (trading and senior management team clearing) • Reduced attrition, market • Presence: Auckland competitive compensation office • Growth in numbers in • Compliance Markets, Market Supervision and Surveillance 23 © Copyright N

  24. Slide 24: Focus areas for 2015

    Focus areas for 2015 Business Market • Agri data and Clear • Advisor regulation • Electricity Authority tender • Industry economics • NZClear • Competitive landscape Portfolio 24 © Copyright NZX Ltd. 2015

  25. Slide 25: Inform. Exchange. Grow

    Inform. Exchange.Grow “NZX builds and operates capital, risk and commodity markets and the infrastructure required to support them. We provide high quality information, data and tools to support business decision making. We aim to make a meaningful difference to wealth creation for our shareholders

  26. Slide 26: NZX Annual Meeting 2015

    INZX > NZX Annual Meeting 2015

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