NZX : Half Year 2023 - Investor Presentation

NZX INTERIM 2023 RESULTS INVESTOR PRESENTATION

25 August 2023

Today's Agenda

	Executive Summary	3
	Business Unit Highlights	7
	Acquisitions Update	16
	Financial Performance	18
	Financial Position & Cash Flows	21
	Final Dividends & 2023 Earnings Guidance	25
Appendices
1	Segmental Analysis	29
2	Operating Revenue Definitions	35

Important notice

This investor presentation should be read in conjunction with NZX's other periodic and continuous disclosure announcements, and the financial statements in the 2023 Interim Report, which provides additional information on many areas covered in this presentation. These are available at nzx.com.

This presentation contains certain 'forward-looking statements' such as indications of, and guidance on, future earnings and financial position and performance.

This includes statements regarding NZX's current assumptions, which are subject to market outcomes, particularly with respect to market capitalisation, total capital listed and raised, secondary market value and derivatives volumes traded, funds under management and administration growth, acquisition integration costs and technology costs.

Additionally they assume no material adverse events, significant one-off expenses, major accounting adjustments, other unforeseeable circumstances, or future acquisitions or divestments.

Any indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions are also forward-looking statements.

Forward-looking statements are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of NZX, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There can be no assurance that actual outcomes will not materially differ from these forward-looking statements.

A number of important factors could cause actual results or performance to differ materially from the forward-looking statements. The forward-looking statements are based on information available to NZX as at the date of this presentation.

Except as required by law or regulation (including the Listing Rules), NZX undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

NZX Half Year 2023 Results

2

Executive Summary

HY23 results highlights

Demonstrating progress and resilience - NZX has maintained the positive momentum in delivering to our growth strategy, and the

operating earnings demonstrate the resilience of NZX's earnings base

Highlights1

Operating Earnings2

excl. acquisition, integration

& restructure costs

$20.6 million

16.8% increase

Operating Earnings2

incl. acquisition, integration &

restructure costs

$20.0 million

15.0% increase

Revenue

$54.0 million

16.9% increase

Net Profit After

Tax

$7.0 million

5.6% decrease

Expenses

excl. acquisition, integration

& restructure costs

$33.4 million

16.9% increase

Interim Dividend

(fully imputed)

3.0 cps

Performance relative to 2023 Targets3

	FY23 Targets	H1-23 Progress YTD		5 Yr Targets Progress4
Operating	$36.0m-$40.5m	$20.6m	✓
earnings2	(excluding acquisition,
		integration & restructure costs)
Capital listed and	$16.0bn	$7.2bn		$18.7bn average p.a.	✓
raised
Total value traded	$40.0bn	$18.0bn		$44.3bn average p.a.	✓
Information services	6.9% avg. growth	16.1% growth	✓	8.4% CAGR growth	✓
revenue	(excl. connectivity)	(excl. connectivity)
	14% avg. growth	10.0% growth			✓
	(excl. acquired FUM)	✓	22.8% CAGR growth
Funds under Mgmt.	(excl. acquired
(net cash flows +2.7%	[excl. acquired FUM]
	FUM)
	and market return 7.3%)
	Migrate new clients	8.7% growth
Funds under Admin.	and OE clients onto	(net cash flows +0.9%		45.7% CAGR growth
	the platform	and market return 7.8%)
Dairy derivatives	0.55m - 0.65m lots	0.26m lots traded		8.5% CAGR growth
lots traded

NZX Half Year 2023 Results

Notes:

1. Data is for the 6 month period ended 30 June 2023. Percentage changes represent the movement for the interim period June 2022 to June 2023.
2. Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share of profit of associate. Operating earnings is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be comparable with similarly titled performance measures and disclosures by other entities. Refer to financial statements note 2 for a reconciliation of EBITDA to NZ IFRS profit for the period.
3. The 2023 Targets are detailed in the Investor Presentation in February 2023. Data is "for the year ended 31 December 2023," or "as at 31 December 2023" (as applicable). H1-23 Progress YTD represents the value for the 6 months ended 30 June 2023, except for Funds Under Management and Funds Under Administration which are the movement in balances as at 31 December 2022 to 30 June 2023.
4. Progress towards 5-year targets is discussed further in the Business Unit Highlights section.

4

NZX Group overview

A diverse and connected capital markets focused business

				NZX Group
			Corporate, Legal, Policy, Technology
		Capital Markets
	[Cash (Shares), Derivatives, Energy,			Funds Management
	Environmental, Fonterra Markets]			(Smartshares,
		Secondary markets			SuperLife)
			Strategic Delivery		A leading investment fund
Capital Markets	Markets		Information	manager in New Zealand,
Market	Derivatives
	Services	serving more than 177,000
Origination	Development	Operations
(including dairy
Existing and new	Market			Market data,	investors* and more than
Clearing House &	with SGX),
	Indices,	$10.7 billion Funds under
issuance	Participants	Operations	Electricity and
			Carbon Markets		Connectivity	Management*

* As at 30 June 2023

NZX Wealth

Technologies

A market leading, tailored

custodial investment

management platform with more than $10.8 billion in Funds Under Administration*

NZ RegCo

(Issuer and Participant Compliance, Surveillance)

An independently governed agency which performs all frontline regulatory functions in support of NZX's statutory

obligations as a licensed market operator

NZX Full Year 2023 Results

5