NZX Q3 2017 Revenues & Shareholder Metrics

NZX Limited
Level 1, NZX Centre
11 Cable Street
PO Box 2959
Wellington 6140
New Zealand
Tel +64 4 472 7599

www.nzx.com

31 October 2017

NZX Q3 2017 Revenues & Shareholder Metrics

NZX today reported its third quarter revenue and operating metrics. Highlights included
continued strong growth in its SuperLife and Smartshares businesses, the ongoing positive
performance of its dairy derivatives business, and buoyant Farmers Weekly advertising
volumes. Total revenues for the quarter were down 4.4%, reflecting a quiet quarter for capital
raising activity relative to Q3 2016, which saw substantial new debt listed. A summary of
revenue by operating segment is provided below:

Markets

Total revenues in NZX’s Markets business were down 5.8% on Q3 2016. Factors driving our
result were:

 8.7% reduction in listing fees, reflecting lower initial listing fees, with no equity listings in
the quarter and $1.1 billion of new debt listed compared to $2.2 billion in the prior year;
 Issuer service fees were also down due to the lower capital raising activity in the quarter;
 Securities information revenue up 10.4%, on growth in professional terminal numbers
and high value subscription products;
 Significant growth continued to be realised in dairy derivatives with revenues up 38.4%
on higher volumes. This growth rate was lower than for the first half of 2017, as the
traditional seasonal peak in early spring was not evident this year due to low volatility in
underlying commodity prices this quarter. Year to date derivatives revenue is up 98.1%;
and
 Securities clearing revenue was up 4.2% on Q3 2016 as value traded grew 1.9%, and
depository and stock lending activity grew.

Funds Services

Revenue in NZX’s Funds Management business, which comprises the SuperLife
superannuation and KiwiSaver business and the Smartshares Exchange Traded Funds
business, was up 12.3% on Q3 2016. This result was underpinned by growth in:

 SuperLife’s KiwiSaver Funds Under Management (FUM), up 18.7% year on year, while
total SuperLife FUM increased 16.8%; and
 28.8% growth in external Smartshares FUM.

NZX Wealth Technologies revenues were up 4.4% on Q3 2016, as a result of services provided
to a new client.

Agri

Total NZX Agri revenues down 17.3% on Q3 2016 as a result of the sale of the Clear Grain
Exchange and the magazine publications in Q4 2016. On a like-for-like basis revenues were up
9.8% as advertising page equivalents for the Farmers Weekly were up 14.9% on increasingly

buoyant advertising sales and NZ agri data subscriptions grew as a result of multi user sales to
corporate customers.

Expenses

Total expenses were down 10.5% on Q3 2016 due to continued disciplined cost control across
the Group, and the absence of one-off costs associated with 2016.

Policy & Regulation commentary

During the third quarter of 2017 NZX released a discussion document and survey outlining the
proposed scope and areas of focus for its Main Board/Debt Market Listing Rules review. It is
now seeking feedback from interested parties. NZX seeks to implement amended rules by the
end of 2018, subject to a transition period. NZX is conducting the review in two consultation
stages, to participant in the review please see the link below:

https://m.nzx.com/regulation/nzx-rules-guidance/consultation/nzx-listing-rules-review

NZX Regulation published its inaugural Thematic Review, which reports on continuous
disclosure practices and conduct. Publication of the Thematic Review was one of the key
deliverables highlighted in the 2017 Regulatory Agenda and reflects the continued focus on
disclosure by NZX Regulation, and providing best practice support. To read the full review
please see the link below:

https://www.nzx.com/regulation/publications

For further information please contact:
Hannah Lynch
Head of Communications
T: 09 308 3710
M: 021 252 8990
E: hannah.lynch@nzx.com

About NZX Limited
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 and
the individuals, businesses and economies in the countries in which we operate. To learn more
about NZX please visit: www.nzxgroup.com

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Q3 OPERATING REVENUE
Q3 2017
NZ $000
Q3 2016
NZ $000
Change YoY
Markets
Securities Information 2,5962,35110.4%
Listings 3,5663,906-8.7%
Other Issuer Services143355-59.7%
Securities Trading 1,4601,4520.6%
Participant Services927939-1.3%
Securities Clearing1,5311,4694.2%
Dairy Derivatives28820838.5%
Market Operations 2,2872,912-21.5%
Total Markets12,79813,592-5.8%
Agri
Commodities Trading - 155-100.0%
Agri Information 2,0452,319-11.8%
Total Agri 2,0452,474-17.3%
Funds Services
Wealth Platform Fees3333194.4%
Funds Management3,3212,95812.3%
Total Fund Services3,6543,27711.5%
TOTAL REVENUE18,49719,343-4.4%
YTD OPERATING REVENUE
YTD OPERATING REVENUE
YTD 2017YTD 2016
Change YOY
Markets
Securities Information 7,7797,4144.9%
Listings 10,11510,575-4.3%
Other Issuer Services436834-47.7%
Securities Trading 4,1884,423-5.3%
Participant Services2,8132,7014.1%
Securities Clearing4,2824,2980.0%
Dairy Derivatives
850429
98.1%
Market Operations
74468214
-9.3%
Total Markets37,90938,888-2.5%
Total Markets
Agri
Commodities Trading -924-100.0%
Agri Information 6,1857,640-19.1%
Total Agri 6,1858,564-27.8%
Funds Services
Wealth Platform Fees1,0541,0391.4%
Funds Management9,9118,77812.9%
Total Fund Services10,9659,81711.7%
TOTAL REVENUE55,05957,269-3.9%
NZX LIMITED - QUARTERLY OPERATING REVENUE
Q3 2017

Markets
NZX Listed Issuers30.09.17Change YoY Cash Market TradingQ3 2017Change YoY
Total Equity Securities 163-4.1%Total Trades521,63222.5%
Total Listed Debt Securities1169.4%Daily Average Trades8,02524.3%
Total Other Securities260.0%Total Trades < $50k494,04824.9%
Total Listed Securities3051.0%Total Value Traded$11.5 b1.9%
Daily Average Value Traded$176 m3.4%
Total NZX Main Board Issuers161-3.6%
Total NZAX Issuers17-5.6%Total Equity Transactions
Total NXT Issuers40.0%Total Trades511,76823.0%
Total NZDX Issuers442.3%Value Traded $10.9 b1.4%
Capital RaisingQ3 2017Change YoY Total Debt Transactions
New Capital ListedTotal Trades9,864-1.1%
IPOs and compliance listings$0.00 b-100.0%Value Traded$537 m12.9%
New debt issues$1.13 b-47.6%
Clearing House / DepositoryQ3 2017Change YoY
Secondary Capital RaisingsGross Value of Cleared Trades over period$11.5 b2.1%
Total Capital Raised By All Issuers$705 m-43.9%Collateral Held at period end$57.5 m35.1%
Depository transactions over period7,4900.8%
Total Equity Raised - Primary Issuers$401 m-0.8%Assets under custody in depository at period end$427 m13.1%
Total Equity Raised - Dual & Secondary Issuers$40 m-93.6%Value of stock lent over period$1,532 m60.9%
Total Debt Raised$264 m18.1%
Wholesale Data30.09.17Change YoY
Number of Capital Raising Events51-16.4%Terminal Numbers - Professional*6,1521.9%
Capital Raised < $0.5m7-58.8%Terminal Numbers - Retail*1,278-7.3%
Capital Raised > $0.5m < $10m26-10.3%Licences - Value > $20k pa3417.2%
Capital Raised > $10m < $100m1850.0%Licences - Value < $20k pa61-1.6%
Capital Raised > $100m0-100.0%
* 3 month average
Market Capitalisation30.09.17Change YoY % of GDPDirect Data Products30.09.17Change YoY
All Equity$127.5 b4.3%47.6%Proprietary Security Subscription Products3992.6%
All Debt$28.2 b13.3%10.5%- Products >= $3,000 p.a.16011.9%
- Products < $3,000 p.a.239-2.8%
NZX Indices Performance30.09.17Change YoY Energy Contracts30.09.17
S&P/NZX 50 Index7,9307.7%Operating / Technology Contracts17
S&P/NZX 50 Portfolio Index4,9349.6%- Contracts < $500k p.a.13
S&P/NZX A-Grade Bond Index5,0842.5%- Contracts > = $500k p.a.4
S&P/NZX All Swap Index2000.6%
NZX LIMITED - QUARTERLY SHAREHOLDER METRICS
Q3 2017
These Shareholder Metrics represent the key features of NZX's operations in each of its core businesses. The Metrics focus on what drives the revenue
performance of NZX, so as to give a consistent and transparent comparison across time periods.

DerivativesQ3 2017Change YoY Derivatives Total Lots Traded 2015 / 2016 / 2017
Futures - Total Lots Traded66,8459.4%
Options - Total Lots Traded11,120275.7%
Open Interest as at 30.09.1752,5248.3%
Funds Services
SuperLife30.09.17Change YoY
Funds Under Management - KiwiSaver$697 m18.7%
Funds Under Management - Other$1,180 m15.7%
Total$1,877 m16.8%
Smartshares30.09.17Change YoY
Funds Under Management - External$625 m28.8%
Funds Under Management - SuperLife funds$1,365 m15.3%
Total$1,990 m19.2%
Units on Issue853 m14.6%
NZX Wealth Technologies30.09.17Change YoY
Funds Under Administration$1,192 m-8.4%
Agri
Direct Data Products30.09.17Change YoY
Subscriptions - NZ Agri Data Products
2,99726.8%
Subscriptions - Australian Agri Data Products
1,503-4.9%
Total Paid Advertising Page Equivalents Q3 17*
25514.9%
Notes
Renamed from Apteryx
* Total paid advertising page equivalents relates to Farmers Weekly only.
1. All operational statistics are measured at the end of the last trading day of the month. Change refers to the change since the same period last year unless otherwise stated
i.e. Change YoY is change versus the same period last year.
2. All Equity Market Capitalisation includes all securities quoted on the NZX Main Board, NZX Alternative Market, and NXT Market.
3. Market Capitalisation for the NZX Debt market is the total nominal (face) value of all quoted securities excluding New Zealand Government Stock.
4. NZX Limited wishes to remind readers that the above operational statistics and operating revenues are based on the Group's internal records, which are unaudited.
Differences may arise between this data and that disclosed in subsequent audited financial statements.
To enquire about NZX products or services, please contact: NZX Data on +64-4-471 4390
or email: data@nzx.com
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NZX Limited – Quarterly Regulation Metrics
Q3 2017
These Regulation Metrics represent the key features of NZX’s activities in regulating its Markets. The metrics focus
on key activities so as to provide transparency and a means of comparison across periods.

ISSUERS – KEY METRICS


Q3 2016 Q3 2017
Total announcements released 4911 4468
Trading halts at request of Issuer or NZXR¹ 8 13
Documents approved and waivers² granted to Issuers 94 50
Complaints received concerning Issuers 5 4
Price enquiries concerning Issuers 3 1
Investigations³ begun in relation to Issuers 21 26
Investigations ongoing at the end of the quarter/period in relation to Issuers 2 11

PARTICIPANTS – KEY METRICS

Waivers², Exemptions and Rulings granted to Participants 6 2
Inspections commenced
6 8
Complaints received concerning Participants 0 0
Investigations³ begun in relation to Participants 15 17
Investigations ongoing at the end of the quarter/period in relation to Participants 7 6

NZX RULES AND POLICY

Information on consultations carried out by NZX during the period can be found here and here. Approval of
amendments to the Participant Rules, the Participant Procedures and the Derivatives Market Rules was received
on 28 August 2017 from the Financial Markers Authority (FMA). In addition, amendments to the Clearing and
Settlement Rules have been approved by the FMA and Reserve Bank of New Zealand (the Joint Regulators) to
reflect changes made to the capital adequacy sections of the Participant Rules and the Derivatives Market Rules.
The amended rules will come into effect on 1 December 2017, subject to Participant Rule 10.7.2 which will come
into effect in 2018 (date to be confirmed). The FMA also approved minor amendments to NZ Markets Disciplinary
Tribunal Rules in relation to the definition of ‘Legal Appointee’ (and other minor amendments). These changes
came into force on 11 September 2017.

NOTES
The metrics are derived from NZX’s internal records.
1. Trading halts imposed routinely, for example on release of price-sensitive information or in the context of
corporate actions are excluded.
2. Details of waivers granted by NZX are released to the Market, and available on https://nzx.com/ and through i-
Search except where the decisions are confidential.
3. NZX will commence an investigation when it identifies a possible breach of rules.
To enquire about any information on this sheet, please email regulation@nzx.com