NZX Limited · NZX:NZX
NZX — Shareholder Meeting (April 2018)
24 slides from NZX's shareholder meeting presentation, Apr 13, 2018
Slide 1: Welcome to NZX's Annual Meeting
Welcome to NZX’s Annual Meeting 13 April 2018
Slide 2: Address from Chairman James Miller
Address from Chairman James Miller 13 April 2018 2
Slide 3: Operating Earnings of $29 million in 2017
Operating Earnings of $29 million in 2017 $30,000,000 Highlights include: $25,000,000 $20,000,000 • Performance of our funds $15,000,000 management business and dairy derivatives market $10,000,000 • Underpinned by disciplined cost $5,000,000 control and efficiency improvements $0 1998 1999 2000 200
Slide 4: Areas of focus for the board
Areas of focus for the board • Maximising shareholder returns • Divest non-core businesses • Reset capital structure • Achieve scale by progressing alliances with global exchanges • Deliver on strategy: • Customer engagement • Increase on market liquidity • Expand dairy derivatives global access • M
Slide 5: Improving the quality of our business
Improving the quality of our business NZX EBITDA margin and peer comparison 65% 60% 55% 50% 45% 40% NZX NZX EBITDA EBITDAMargin margin 35% NZX EBITDAAverage NZX EBITDA average (2006-2013) (2006-2013) Large globalExchanges Large Global exchanges (Mean) (Mean) 30% Regional basedExchanges Regional Base
Slide 6: Accessing scale and scope with alliances
Accessing scale and scope with alliances …in comparison with mergers • One merger = final solution Scale and scope with alliances… • Closes off all paths • Options/paths • Uncertain sovereignty • Dual listings • Stock connects • Broader trade 6
Slide 7: We have many options
We have many options • Co-marketing • Mutual regulatory recognition • We have many options. Up to us how quickly we progress • Automatic dual listing capability • Processes set up to discover • Technology sharing opportunities to ‘fail fast’ vs • Standardised operating practices ‘progress to next ga
Slide 8: Alliances are efficient and effective
Alliances are efficient and effective Stock connect Dual listings Efficient for exchanges: NZ to overseas • MOUs light on resource • Fail fast, or go deeper Regulatory Debt, Dairy, pre-clearance Environmental, ETFs Overseas into NZ Effective for investors and participants: • comply once; access mult
Slide 9: Your Board
James Dr Patrick Jon Lindsay Miller Strange Macdonald Wright Your Board Richard Frank Nigel Anna Molloy Bodman Aldridge Babbage (Future Director) 9
Slide 10: Address from CEO Mark Peterson
Address from CEO Mark Peterson 13 April 2018 10
Slide 11: Our refreshed strategy
Our refreshed strategy New Zealand’s Exchange Refocus Core Growth Opportunities Maximise Options Get Fit ü Issuer Relationships ü Dairy Derivatives ü SuperLife ü Cost Management ü Secondary Markets ü Debt ü Smartshares ü CAPEX ü Data & Insights ü Environmental & Energy ü Wealth Technologies ü Divide
Slide 12: Meet the team
Meet the team Leadership team (from left to right): Joost van Amelsfort, Hamish Macdonald, Katherine Birch, Lisa Brock, Mark Peterson, Graham Law, Jeremy Anderson, Joanna Lawn, Benjamin Phillips, David Godfrey, Hugh Stevens 12
Slide 13: Issuer engagement
Issuer engagement Dedicated team improving relationships with our listed customers Our listed customers 4 1 16 Main Board • 198 listed customers (other than NZX Group listed entities) Debt Market 45 • Issuer Relationship team Alternative Market contacted all in Q1 2018 156 NXT Market Fonterra Shareh
Slide 14: Already making progress to improve liquidity
Already making progress to improve liquidity Total cash market trading 37% 42% 51% 23% On-market Off-market 77% 63% 58% 49% 2008 2016 2017 2018 year to date 14 Source: NZX Data
Slide 15: Maximising the value
Maximising the value Smartshares ETFs attracting new unit holders to the market Growth in Smartshares ETFs unit holders 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 15
Slide 16: Spotlight on dairy derivatives
Spotlight on dairy derivatives NZX dairy derivatives yearly volumes traded 350,000 311,675 300,000 250,000 213,627 198,303 Volume (lots) 200,000 150,000 101,237 100,000 50,000 31,330 24,183 11,139 210 - 2010 2011 2012 2013 2014 2015 2016 2017 16
Slide 17: Advancing the New Zealand market
Advancing the New Zealand market Proposed updated market structure NZX Main NZAX Board NZX NXT Debt Market Main Board Debt Market Equity Funds Debt 17
Slide 18: Ordinary Business
NZX 7 NEW ZEALAND’S EXCHANGE Ordinary Business
Slide 19: Ordinary Resolution 1
Ordinary Resolution 1 That the board be authorised to determine the auditor’s fees and expenses for the 2018 financial year 19
Slide 20: Ordinary Resolution 2
Ordinary Resolution 2 To elect Nigel Babbage as a director of NZX 20
Slide 21: Ordinary Resolution 3
Ordinary Resolution 3 To elect Lindsay Wright as a director of NZX 21
Slide 22: Ordinary Resolution 4
Ordinary Resolution 4 To re-elect Jon Macdonald as a director of NZX 22
Slide 23: General Business
NZX 7 NEW ZEALAND’S EXCHANGE General Business
Slide 24: Thank you
Thank you Please join our team for refreshments 24