NZX Limited · NZX:NZX
NZX — Shareholder Meeting (April 2021)
43 slides from NZX's shareholder meeting presentation, Apr 8, 2021
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting Tauranga 8 April 2021
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 - Auditors - Re-election of Nigel Babbage - Re-election of Lindsay Wright • Voting • Questions
Slide 3: Welcome and strategic overview
Welcome and strategic overview James Miller, CHAIR
Slide 4: Emerging stronger
Emerging stronger • Difficult year for many sectors of the economy with COVID impacts • Opportunity for NZ capital markets to provide essential capital funding to businesses in need • Never before has the value of having access to capital been so evident • 2020 also saw the most significant re- enga
Slide 5: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 6: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 7: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 8: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 9: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 10: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 11: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 12: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 13: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 14: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 15: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 16: Vital role of NZ's capital markets
Vital role of NZ’s capital markets Placeholder – replace with NZ RegCo • Trading volumes and value reached new levels, record territory for S&P/NZX 50 • Tough and uncertain economic environment for many of our issuers • FY2020 showcased the vital role of capital markets to a well-functioning and res
Slide 17: 17
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Slide 18: Another year of financial delivery
Another year of financial delivery • Step-change in growth, further lift in earnings • The environment has supported the growth in NZX’s operating earnings – new high of $34.4 million • FY2020 dividend of 6.1 cents per share, fully imputed (paid on 26 March 2021). 18
Slide 19: NZ RegCo established
NZ RegCo established • Successful transition to new regulatory model for NZX’s listed markets • Complete structural separation of NZX’s commercial and regulatory roles • New regulatory operating and governance model enhances independence and is less complex • Aligned with global best practice • NZ R
Slide 20: Technology issues
Technology issues Placeholder – replace with NZ RegCo • Rapid escalation in trading activity during COVID-19 lockdown period, and Placeholder – to be replaced with serious cyber-attack in August 2020 cybercriminal pic • NZX acknowledged we did not meet our own high standards in certain areas of our
Slide 21: Further technology investment
Further technology investment Placeholder – replace with NZ RegCo • Acting on the recommendations of our Board commissioned external reviews from EY and InPhySec • Agreeing action plan with Financial Markets Authority (FMA) • Permanent establishment of Technology Sub-committee – appointment of globa
Slide 22: Shareholder returns
Shareholder returns • Repositioning of NZX and our strategic direction under Mark Peterson’s leadership • Recognised by the market, strong appreciation in NZX share price • Strategy is creating a platform for growth – for NZX and our markets • Capital Markets 2029 outlines common vision for capital
Slide 23: Outlook for 2021
Outlook for 2021 Placeholder – replace with NZ RegCo • NZX has today updated full year 2021 operating earnings to be in the range of $32.0 million to $35.5 million* • NZX Board has tightened the bottom of the range now that we have more certainty on incremental technology costs. * Guidance is subjec
Slide 24: Report on financial and business performance
Report on financial and business performance Mark Peterson, CEO
Slide 25: Fuelling our momentum
Fuelling our momentum • 2020 was an extraordinary year – not what we planned for • COVID-19 accelerated momentum • Performance reflects strength built through deliberate strategic change • Lessons from operational challenges – we are acting on them. 25
Slide 26: Robust growth across the business
Robust growth across the business
Slide 27: Market development
Market development • Global volatility, a low interest rate environment and greater post-COVID interest in investing • The health and vitality reflected in the 149% increase in the volume traded, 42% increase in the value traded • Foundations for progress laid in 2017 strategy to deliver improved li
Slide 28: Capital market partnerships
Capital market partnerships • Continued impetus on our global strategy to secure partnerships • Complementary capabilities and strength as we grow NZX’s business. • BNP Paribas expected to become a General Clearing Participant in 1H21 • Heads of Agreement with Singapore Exchange to grow NZX’s dairy
Slide 29: Section footer
Section footer 29
Slide 30: Focus on customers
Focus on customers • Ecosystem development a priority – dedicating more resources into deepening our pool of prospects • Unique opportunity in 2020 to demonstrate the value of having access to capital through the public markets • The current environment has emphasised the strong value of being liste
Slide 31: 31
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Slide 32: Funds Management
Funds Management • Smartshares Funds Under Management (FUM) increased 28% in FY2020 • $5 billion at year-end, exceeding 2023 goal in growth strategy • Attracted more than $800 million in net investor cash flows • Launch of the Smartshares Core Series ETFs and Select KiwiSaver, our first third-party
Slide 33: NZX Wealth Technologies
NZX Wealth Technologies • Growth of more than 210%, Funds Under Administration tops $7 billion • Significant milestone with successful onboarding of Hobson Wealth Partners added $3 billion • More than 28,000 portfolios being managed through our wealth management platform • Confidence in path for con
Slide 34: Strategy refresh
Strategy refresh • NZX has also been considering the next stage of its strategy • Explored the business models of other exchanges globally • Focus on continuing to build a more diversified exchange • NZX is building an integrated business to support the growth of NZ capital markets • Smartshares and
Slide 35: Planning for the 'new normal'
Planning for the ‘new normal’ • 2020 created significant opportunities and learnings for NZX – aligned with our purpose of “Helping build New Zealand’s tomorrow” • NZX has reset for the ‘new normal’ – refocused with both an operational excellence and growth mindset • Our team has been energised by t
Slide 36: Resolutions
> Resolutions
Slide 37: Resolution 1: Auditor
Resolution 1: Auditor That the Board be authorised to determine the auditor’s fees and expenses for the 2021 financial year. Resolutions 37
Slide 38: Resolution 2: Re-election of Nigel Babbage
Resolution 2: Re-election of Nigel Babbage Placeholder – to be replaced To re-elect Nigel Babbage as a director of NZX Limited. Nigel was appointed as a director in December 2017. Nigel has spent more than 35 years working in financial and capital markets locally and globally, and brings to NZX exte
Slide 39: Resolution 3: Re-election of Lindsay Wright
Resolution 3: Re-election of Lindsay Wright Placeholder – to be replaced Re-election of Lindsay Wright as a Director of NZX. Lindsay was appointed as a director in February 2018. She has more than 30 years’ financial services and funds management experience locally and globally and brings to NZX ext
Slide 40: Voting
Voting
Slide 41: Address by Jon Macdonald
> Address by Jon Macdonald
Slide 42: Questions
4 Questions
Slide 43: Thank you
Thank you The information provided is a guide only and intenced for genera information purposes. It does not constitute investment advice. Any representation or statement expressed in this information is made in good ‘aith on tre basis that NZX Limited (NZX) or any of its related compan es is not ab