NZX Limited · NZX:NZX
NZX — Shareholder Meeting (April 2023)
33 slides from NZX's shareholder meeting presentation, Apr 19, 2023
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting Auckland 19 April 2023
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 Rachel Walsh - Election of Dame Paula Rebstock - Re-election of Frank Aldridge - Directors’ 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: Image from Annual Report
Image from Annual Report Section footer 6
Slide 7: Governance and regulation
Governance and regulation • Corporate Governance Institute (CGI) established in 2022 • Founded to ensure the NZX Main Board has settings in place to help improve performance and increase shareholder value, while lowering issuers’ cost of capital • Goal to be a market leader for corporate governance
Slide 8: Director changes
Director changes • On 12 October, the NZX Board announced the resignations of Nigel Babbage and Richard Bodman • Sadly, Nigel passed away on 20 November before completing his term • Rob Hamilton and Rachel Walsh were appointed onto the NZX Board effective 12 October 2022 • Dame Paula Rebstock was ap
Slide 9: Position of Chair
Position of Chair • On 20 March, the NZX Board announced it had withdrawn its endorsement of the incoming Chair Elect • James Miller will continue in the role as NZX Board Chair until a new Chair is appointed • Selection process is well advanced and making good progress • The new Chair will inherit
Slide 10: Leadership continuity
Leadership continuity • The NZX Board notes feedback regarding greater transparency of the Chief Executive’s remuneration • We are committed to addressing this in the 2023 Annual Report • The NZX Board will be guided by the Corporate Governance Institute and the New Zealand Shareholders Association
Slide 11: Directors' fees
Directors’ fees • Fee pool of $435,000 was last independently benchmarked in 2003 and remained static prior to 2022 • PWC engaged to carry out market benchmarking for non-executive director fees based on a group of 20 peer companies • Our Director fees were substantially behind market • Target overa
Slide 12: Outlook for 2023
Outlook for 2023 • NZX has today announced guidance* to be in the range of $36.0 million to $40.5 million for FY2023 • NZX is focused on rounding out our product offering in capital markets in line with other international exchanges • Driving scale and operating leverage across the broader business
Slide 13: Report on financial and business performance
Report on financial and business performance Mark Peterson, CEO
Slide 14: Performance and results
Performance and results • The diverse mix of the NZX Group business and the breadth of offerings available to access capital highlighted our resilience through market cycles • Group revenues were up 8.8% to $95.7 million for the full year • NZX’s overall revenue growth reflects the strength of our s
Slide 15: Capital markets activity remain strong
Capital markets activity remain strong • In 2022, $20.9 billion of capital was listed and raised on market – making it one of the strongest years • Pathways to listing worked well with seven new issuers joining the NZX Main Board • Shift from equity to debt a reflection of global market conditions •
Slide 16: Market development
Market development • In 2022 NZX maintained its on-market liquidity levels of 64% • Our objective is to reach 80% on-market liquidity in the next five years • Information Services Revenues continue to grow – up 10.9% to $19.4 million • Professional terminal numbers remain steady. Uplift in revenue d
Slide 17: Dairy – exciting area of growth
Dairy – exciting area of growth 17
Slide 18: Energy and carbon
Energy and carbon • Delivered the Real Time Pricing project on 1 November 2022 in partnership with Electricity Authority and Transpower • NZ ETS auctions has 102 fully registered participants, ranging across multiple sectors with New Zealand and abroad • The secondary carbon market provides opportun
Slide 19: Smartshares
Smartshares • Strong net cash inflows and the acquisition of the ASB Superannuation Master Trust lifted overall FUM to $8.26 billion as at 31 December 2022 • Operating earnings including acquisition and integration costs lifted 42.8% to $11.2 million • In November 2022, NZX purchased QuayStreet Asse
Slide 20: NZX Wealth Technologies
NZX Wealth Technologies • Funds Under Administration (FUA) was $9.96 billion as at 31 December 2022 • Revenue reached $5.99 million - up 36.3% from 2021 • NZX Wealth Technologies pipeline prospects remain strong • Large, contracted client is being onboarded in early May • Positive first quarter. FUA
Slide 21: Delivering on a growth strategy in trying times
Delivering on a growth strategy in trying times 21
Slide 22: Commitment to ESG
Commitment to ESG • Achieved net carbon zero certification for the 2021 and 2022 years from Toitū Envirocare • Continued focus on improving our transparency and communication on environmental and social aspects of ESG and delivering to legislative reporting requirements • Completed our review of the
Slide 23: Our people
Our people • ‘Committed’ and ‘customer focused’ are words that sum up the collective attitude of the NZX team last year • Special acknowledgment to NZ RegCo for continuing to grow from strength to strength • Thank you to shareholders for your continued support and confidence in NZX 23
Slide 24: Resolutions
> Resolutions
Slide 25: Shareholders voting online
Shareholders voting online • Shareholders will be able to cast your vote using the electronic voting card received when online registration is validated • To vote, you will need to click “Get Voting Card” within the meeting platform • You will be asked to enter your Shareholder or Proxy Voting card
Slide 26: Resolution 1: Auditor
Resolution 1: Auditor That the Board be authorised to determine the auditor’s fees and expenses for the 2023 financial year. 26
Slide 27: Resolution 2: Election of Rachel Walsh
Resolution 2: Election of Rachel Walsh To elect Rachel Walsh as a Director of NZX Limited. Rachel was appointed as a Director in October 2022. She is a senior financial executive and a qualified chartered accountant. She is the Chief Financial Officer of Datacom Group and a member of the External Re
Slide 28: Resolution 3: Election of Dame Paula Rebstock
Resolution 3: Election of Dame Paula Rebstock To elect Dame Paula Rebstock as a Director of NZX Limited. Dame Paula joined the NZX Board in February 2023. She is a leading Auckland-based economist and company director, who was made a Dame Companion of the New Zealand Order of Merit in 2015 for servi
Slide 29: Resolution 4: Re-election of Frank Aldridge
Resolution 4: Re-election of Frank Aldridge To re-elect Frank Aldridge as a Director of NZX Limited. Frank was appointed as a director in May 2017. Frank has an extensive understanding of New Zealand’s capital markets having spent more than two decades working for Craigs Investments Partners where h
Slide 30: Resolution 5: Directors' fees
Resolution 5: Directors’ fees To increase the NZX Director fee pool by $42,000 to $564,000 with effect from 1 July 2023 30
Slide 31: Voting
Voting
Slide 32: Questions
> Questions
Slide 33: 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