NZX Half Year 2020 Results & Interim Report Published

Half Year Results12 August 2020NZXFinancials

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Proven
Vital.
NZX INTERIM
REPORT 2020

Contents
OUR RESULT ...........................................................04
MANAGEMENT COMMENTARY ...................................13
FINANCIAL STATEMENTS ..........................................21
NOTES TO THE FINANCIAL STATEMENTS ....................27
INDEPENDENT REVIEW REPORT .................................36
CORPORATE DIRECTORY ...........................................38

NOT ONE OF US WAS PREPARED FOR COVID-19.
For the seriousness of the health risks or the scale
of the economic impacts at home and around the
globe. For how quickly we would need to adapt
and move.
This pandemic has asked new questions of us and
our listed businesses in New Zealand. Across the
breadth of different sectors, we responded with
remarkable resilience and urgency.
We have drawn on our individual strengths and
also worked collaboratively to support each other.
This has enabled Kiwi companies to continue
delivering essential services, innovate at the
frontline of medical treatment, care for the most
vulnerable, and reset for the new normal.

FINANCIAL HIGHLIGHTS
Our half-year
performance
3.0
cents per share
(fully imputed)
DIVIDEND (INTERIM)
$9.1
million
NET PROFIT AFTER TAX
40.9%
$17.6
million
OPERATING EARNINGS
21.5%
Operating earnings are before net fi nance expense, income tax, depreciation, amortisation
and gain and loss on disposal of business and property, plant and equipment. Operating
earnings is not a defi ned performance measure in NZ IFRS. The Group’s defi nition of
operating earnings may not be comparable with similarly titled performance measures
and disclosures by other entities.
NZX Interim Report 2020
4

$8.2
billion
CAPITAL RAISED (TOTAL NEW CAPITAL
AND SECONDARY CAPITAL RAISED)
6.5%
$7.0
million
DATA & INSIGHTS
REVENUE
10.8%
$27.9
billion
TOTAL VALUE
TRADED
52.3%
205,626
lots
DAIRY DERIVATIVES
TRADED
9.6%
$3.95
billion
FUNDS UNDER
MANAGEMENT
14.2%
$3.08
billion
FUNDS UNDER
ADMINISTRATION
46.1%
NZX Interim Report 2020
5

The threat to New Zealand businesses
from COVID-19 represents a signifi cant
challenge, and we have been true
to our purpose – stepping-up to
support companies and investors.
Thanks to the hard decisions New Zealand
took early, our country has to date been
insulated to some degree from the
health, human impacts and economic
damage unfolding in other parts of the
world. The fi nance sector, including
our capital markets, has been well-
served by fi nancial measures from our
Government and the Reserve Bank.
As an essential service, able to operate
throughout this period, the pandemic
has brought into sharp relief the vital
role of New Zealand’s Exchange,
and the value of being listed – ready
access to new equity capital.
Nearly $6 billion of fresh equity was raised
by a broad range of companies, big and
small. This fl owed through into a signifi cant
increase in secondary market trading for
the six months ended 30 June 2020, and
is refl ected in NZX’s fi nancial results.
112,110
New record in
daily trades
$5.9b
Capital raised on
secondary market
62.4%
Average on-market
trading
GROUP RESULTS AT A GLANCE
CHIEF EXECUTIVE’S UPDATE
Standing up in
tough times
NZX Interim Report 2020
6

The company’s operating earnings
1

rose 21.5% to $17.6 million, with the
operating margin improving from
44.0% to 45.7%. While we have
had to adjust to a very different
business and working environment
and reassess priorities as a result
of COVID-19, the focus has been
on meeting increased demand
through a time of need from our
customers, and this shows through
1 Operating earnings are before net fi nance expense, income tax, depreciation, amortisation and gain and loss on disposal of business and property,
plant and equipment. Operating earnings is not a defi ned performance measure in NZ IFRS. The Group’s defi nition of operating earnings may not be
comparable with similarly titled performance measures and disclosures by other entities.
in the lifts achieved in revenue
and operating performance.
Operating costs for the period
were up 13.3% to $20.9 million.
The increase was due to investment
in growth projects for our funds
management business and additional
headcount to support the growth of
NZX Wealth Technologies, and to
increase the capacity and resilience
of our core trading and clearing
systems. Employee-related expenses
also contributed to the higher costs,
refl ecting lower staff turnover and
lower leave taken during this period.
Our balance sheet remains
conservatively set through a
combination of cash on hand,
subordinated note funding, unutilised
bank facilities and the existence of
$3.7b
Assets under custody
in depository
5.4%
Net positive cash
fl ows for Smartshares
80%
Increase in NZ Milk Price
(MKP) lots traded
NEW RECORDS IN THE MONTHLY TRADING VALUE AND THE DAILY NUMBER OF TRADES
VAL
UE
TRAD
ED
DAILY TRADES
VALUE TRADED 2019VALUE TRADED 2020DAILY TRADES
0$0.0K
15,000$1.0b
30,000$2.0b
45,000$3.0b
60,000$4.0b
75,000$5.0b
90,000$6.0b
105,000$7.0b
120,000$8.0b
JanuaryFebruaryMarchAprilMayJune
NZX Interim Report 2020
7

the derivatives market mutualised
default fund. This profi le has
supported our corporate stability
during the COVID-19 market event.
Net profi t after tax for the period
(NPAT) was $9.1 million, up 40.9%
on HY2019. The Board has declared
an interim dividend of 3.0 cents per
share fully imputed, to be paid to
shareholders on 18 September 2020.
The Dividend Reinvestment Plan is
available at a discount rate of 1%.
Assisting companies in need
With the foundations set down
over the past three years, we were
able to respond effectively to the
challenges COVID-19 presented.
The required ‘lockdown’ in
New Zealand through March and
April resulted in a sudden and
dramatic reduction in the demand
for goods and services along with
global supply chain disruptions. This
severely restricted cash fl ows for many
listed companies. In particular, those
exposed to international tourism and
travel were impacted early, and –
along with the international education
sector and other industries that rely
on migrant labour – continue to face
the reality of ongoing restrictions.
With the New Zealand Government
successfully managing to contain
the outbreak of COVID-19, both
institutional and retail investors have
strongly backed Kiwi businesses.
As we signalled at our Annual
Shareholders’ Meeting in March,
NZX’s equity market was open and
ready to help companies raise capital.
The bulk of the $5.9 billion of capital
raised on the secondary market
occurred in the 90 days from early
April, mirroring the lockdown period
and urgency of listed companies
requiring access to new capital.
This action by companies has
undoubtedly helped save many
jobs in New Zealand and, to some
extent, softened the economic
shock for our country. Companies
have understood their options and
appreciated the additional fl exibility
in capital raising rules provided by
NZX, moving rapidly, with the scale
of capital raisings multiples larger
than the initial months following
the 2008 Global Financial Crisis.
NZX increased the limit that issuers
can raise capital through share
placements from 15% to 25% of
existing shares and the individual
application limit under Share
Purchase Plans from $15,000 to
$50,000, which acknowledged
the importance of protecting the
interests of retail shareholders.
These higher levels are temporary
measures that are scheduled to
fi nish at the end of October.
The half-year has seen a continuation
of capital raisings through placements,
share purchase plans and rights issues
– including under innovative structures
rarely seen in New Zealand, such as
the accelerated non-renounceable
On the frontline of tackling the health challenges of COVID-19, Fisher & Paykel Healthcare (“FPH”) is leading the way,
developing and delivering world-leading products and therapies used to treat millions of patients around the globe.
NZX Interim Report 2020
8

entitlement offers (ANREO), enabled
under the class relief provided by
NZX Regulation. This enabled issuers
to execute offers quickly during
a fast-changing environment.
Another important element of our
support for listed issuers through
COVID-19 has been the additional
fl exibility we have provided
for reporting time-frames.
Market resilience and vitality
The health of New Zealand’s capital
markets has been critical during the
COVID-19 outbreak. This has been
apparent through the exceptionally
high level of activity on our
sharemarket, along with continued
strong levels of international interest
in our market. The S&P/NZX 50 has
proved a relatively resilient index –
by June 30 it had recovered more
than 34% from the low-point of
March 2020 and outperformed other
major global indices year-to-date.
The level of investor interest was
refl ected in our operating data, with
daily trading volumes peaking at
112,110 trades – compared with an
all-time record of 37,483 in December
last year, representing almost six-
fold the 2019 daily average.
This marked acceleration in
the growth in trading activity
exposed some stresses within
specifi c elements of the market
infrastructure, particularly on
certain messaging components
of NZX’s clearing and settlement
system – largely due to historic
IT system architecture decisions.
We acknowledged at the time the
strain these technical issues during
March and April had placed on
the operations and technology
teams of NZX participants and
their customers. The level of co-
operation and understanding across
the capital markets ecosystem was
crucial to ensuring NZX successfully
risk-managed, margined, cleared
and settled the market every day.
Although this huge increase in market
activity is a good problem to have,
to refl ect the seriousness taken
with issues related to NZX’s market
systems, we have commissioned an
independent review of these technical
issues and the underlying causes.
This review has sought feedback
from market participants and we have
been grateful to receive extremely
strong engagement across all aspects
of the market. We look forward to
the report, which is imminent, and
engaging on the recommendations.
NZX has directed additional
resources and taken a number of
steps to increase the transaction
and messaging load capacity of
core systems and provide market
stability with continued high trading
activity levels. This work is ongoing.
The implementation of our trading
system upgrade has been delayed as
a result of COVID-19 and considering
the appropriate timing for all of our
market participants. This new system
– now planned to go live in the fi rst
half of 2021 – offers improvements in
trading functionality that should assist
in further promoting market liquidity.
Essential capital raising
Necessity has been the powerful
driver of issuance this year. The total
value of capital raised in the fi rst half
of 2020 was up 6.5% to $8.2 billion,
with new retail and wholesale debt
listings making up $2.3 billion and
the balance being $5.9 billion of
secondary equity capital – mostly to
address the impacts of COVID-19.
The pandemic has demonstrated
the importance of the listed market
for New Zealand – not only in
supporting Kiwi businesses but also
in providing investment opportunities
into New Zealand for all investors.
These two proven benefi ts have
reinforced the signifi cant opportunity
to develop our listed market to
support New Zealand’s longer-term
growth and success. This is where
we need to turn our attention,
to create further resilience and
sustainable value for our country.
Against this backdrop, we were
delighted to welcome our fi rst new
listing of 2020 with CSM Group
completing the acquisition of Me
Today, a New Zealand-founded health
and wellness brand that produces
premium quality products, linking
supplements and natural skincare.
This reverse listing of Me Today (NZX:
MEE) will provide the company a
great platform for building its profi le,
and expanding its operations both
in New Zealand and internationally.
The debt market started the
year well, with issues from BNZ,
Housing New Zealand (Kāinga
Ora – Homes and Communities)
and the Local Government Funding
Agency, prior to several months of
disruption from COVID-19. There
are more positive signs in this space
for the second half of 2020.
Record trading activity
The lift in on-market trades has
occurred in parallel with an increase
“The pandemic has demonstrated the importance of the listed
market for New Zealand – not only in supporting Kiwi businesses
but also in providing investment opportunities into New Zealand
for all investors.”
NZX Interim Report 2020
9

in retail investor participation. The
popularity of online retail trading
platforms is burgeoning and, over
the COVID-19 Alert Levels 3 and
Level 4 in New Zealand, helped spur
retail participation to levels never
seen before in our sharemarket.
NZX secondary market trading
by retail investors totalled around
$2.1 billion for March and April
2020, up 135% on the same period
in 2019. The number of trades
climbed 361% and is up 1,264%
over the past fi ve years, assisting
the growth of market liquidity.
A healthy secondary market is a key
goal for us. We want a dynamic,
liquid, competitive, and transparent
secondary market – and in recent
years NZX has made two fundamental
changes towards this outcome:
removing the fi xed fee component
on trades in favour of a value-based
fee structure, and a new rules
framework to support participants
and broaden investment in markets.
The upsurge in market activity saw
the daily number of trades average
48,000 across the fi rst six months
of 2020, and by early June we had
surpassed the total number of trades
for the full-year 2019. Value traded on
NZX’s markets also set new records
with the fi rst half jumping 52.3%
to nearly $28 billion, effectively
three months ahead of 2019.
On-market trading continues its
positive trend, averaging 62.4%
across the half-year. This compares
with 33% in 2015 and 54.3% in
2019. This multi-year improvement
represents a step-change resulting
from NZX’s focus on market liquidity
as a primary measure of market
integrity and price transparency
and actions the company has taken
to incentivise on-market activity.
Following the large boost last year
in the assets held in the depository,
NZX saw further growth in the fi rst
half, with total value closing at a
new high over $3.7 billion, refl ecting
increasing values from Sharesies
and BNP Paribas Securities.
Data & Insights achieved a strong
lift in revenue, up more than 10% to
$7.0 million, largely due to royalties
for retail data access, as virtual (non-
display) use increased 93% year-on-
year. Client licence arrangements have
improved and back-dated licencing
revenue signifi cantly higher due to
a greater number of audit closures.
Volatility from COVID-19 seen in
equity markets also fl owed into dairy
markets with the total volume of lots
traded up nearly 10% to 205,626.
The fi rst quarter of 2020 was the
largest trading quarter since we
launched the market, with a new
weekly high. Volumes of our NZ
Milk Price derivatives continued to
grow with lots traded up 80% on
the prior period, and the average
daily value of trades reached a
record $4 million in Q2 2020.
Strategic partnerships
Over these busy six months, we
have also been progressing several
strategically-important partnerships.
CMC Markets Stockbroking has
announced the launch of the
New Zealand market onto its online
trading platforms, providing clients
with increased international trading
options. This connection with CMC
Markets’ clients will further invigorate
retail participation in our market.
BNP Paribas Securities Services has
extended its commitment to the
development of New Zealand capital
markets in a new partnership with NZX
– jointly focused on growing offshore
capital fl ows into the New Zealand
market. The accreditation of BNP
Paribas Securities Services as a General
Clearing Participant is expected to be
completed within the fi rst half of 2021.
BNP Paribas has already brought
innovation to New Zealand’s capital
markets as the fi rst and only global
custodian to become as a Depository
Participant on the NZX Clearing
and Settlement System, the fi rst
custodian to go live with automated
announcements on NZX, and the
only bank clearer on the NZX Dairy/
NZX Equity derivatives markets.
NZX is also partnering with private
capital market specialist, Syndex,
an online investment platform that
provides infrastructure to support
and facilitate private market investing
Pushpay (“PPH”) technology is
growing deeper connections in
church communities and continuing
to transform the tradition of giving
in the US through this year’s
global pandemic – with virtual
congregations reaching record levels.
NZX Interim Report 2020
10

with an end-to-end investment
management system that connects
companies and investors. This
agreement will help Kiwi businesses
access capital throughout their
lifecycle – from the early stages of
private ownership, through to a public
listing as their needs and scale grows.
Milestones for growth
While market volatility over the six
months presented challenges for
our funds business, Smartshares, net
investor cash fl ows were positive
5.4% for the period. As anticipated,
there was an upswing in switching
activity between funds, however
withdrawals were relatively low.
Having peaked near $4.1 billion in
February, Funds Under Management
dropped in March and April to
$3.2 billion before recovering
much of the lost ground to fi nish
the half at $3.95 billion.
Smartshares’ Core Series range
of Exchange Traded Funds (ETFs)
launched in July provides investors
with an S&P/NZX 50 Gross Index
fund (in addition to the S&P/NZX
50 Portfolio Index). Other new
products include the S&P/ASX 200
ETF, S&P/NZX NZ Government
Bond ETF and the Smartshares
Total World NZD Hedged ETF.
NZX has simplifi ed the listing
rules for funds to encourage more
investible product onto the market,
with signifi cant potential for further
growth, including ETFs that offer
investors low-cost building blocks
and instant portfolio diversifi cation.
During the half Smartshares was
appointed investment manager for
a key institutional passive mandate
following a rigorous operational
review by a leading global investment
consultant. In addition, new corporate
superannuation plans were won
through competitive RFP processes.
Our NZX Wealth Technologies
business has maintained its growth
trajectory and focus on acquiring
and transitioning customers, with
Funds Under Administration growing
46.1% to $3.08 billion at half year.
A migration project for JBWere
was completed in June 2020 and
the onboarding of new customers,
Hobson Wealth Partners and
Saturn Advice, to NZXWT’s market-
leading platform is in progress.
The new normal
NZX is maintaining its FY2020
operating earnings guidance of $30.0
million to $33.5 million. NZX notes
that, based on the performance to
date, there is a greater expectation
for a full year outcome to be
towards the top end of the range
This guidance is subject to market
outcomes for the remainder of the
year, including total capital raised,
secondary market trading and clearing
values, derivatives volumes traded,
and funds under management and
administration growth. NZX notes the
global health and macroeconomic
environment remains unusually
volatile and guidance assumes
no material adverse events,
signifi cant one-off expenses, major
accounting adjustments or other
unforeseen circumstances.
As we refl ect on the fi rst half of
2020, we are acutely conscious
that we cannot yet see the full
consequences of COVID-19.
Signifi cant underlying challenges
remain for many companies locally,
from the ongoing global health threat
and related operational and fi nancial
impacts. This is a time of critical
need for our customers and country,
requiring further collective action,
adaptation and innovation at pace.
In reporting our Interim Results
for the six months ended 30
June 2020, we are tremendously
proud of how our team at NZX
has worked as an essential
service through what has been an
uncertain and unsettling period.
Our fi nancial results show
how our people have stood
up in these tough times.
Mark Peterson
Chief Executive
New regulatory model
A new regulatory model was announced in March to
structurally separate the Exchange’s commercial and
regulatory roles based on the model of the Singapore
Exchange. A wholly-owned operating subsidiary is being
established to perform all frontline regulatory functions
in support of NZX’s obligations as a market operator
and as operator of the designated settlement system.
The proposed entity – planned for implementation
during 2020 – will ensure NZX’s commercial and
operational activities are discrete from the regulatory
function. It will be governed by a separate board
with an independent Chair and the majority of
board members independent of the NZX Group.
The revised model came out of a full review of NZX’s
regulatory operating model completed in 2019, which was
prompted by the increasing complexity of governance
arrangements. The structural separation of the proposed
model also provides the NZX Board increased capacity
to focus on NZX’s commercial mandate and initiatives,
to deliver shareholder value, while enabling the NZX
Regulatory Board to maintain appropriate oversight
of NZX’s statutory market operator obligations.
NZX Interim Report 2020
11

NZX Interim Report 2020
12

Management
Commentary
NZX Interim Report 2020
13

NZX Interim Report 2020
12
Overview
A breakdown of NZX’s financial results by business unit is summarised in the following table:
Operating RevenueOperating ExpensesOperating Earnings
1
Operating
MarginFTEs
Six month ended
30 June
2020
30 June
2019
Change
30 June
2020
30 June
2019
Change
30 June
2020
30 June
2019
Change
30 June
2020
30 June
2019
30 June
2020
30 June
2019
$000$000%$000$000%$000$000%
Issuer
Relationships13,09112,1158.1%2,8282,667(6.0%)10,2639,4488.6%78.4%78.0%35.836.6
Secondary
Markets10,4487,07047.8%3,1803,156(0.8%)7,2683,91485.7%69.6%55.4%28.429.7
Data &
Insights
7,0346,34910.8%1,095927(18.1%)5,9395,4229.5%84.4%85.4%9.19.5
Funds
Management6,8076,3058.0%3,9373,120(26.2%)2,8703,185(9.9%)42.2%50.5%49.847.5
Wealth
Technologies8498381.3%1,3821,024(35.0%)(533)(186)(186.6%)(62.8%)(22.2%)50.336.0
Corporate
Services
2
1891861.6%8,4467,524(12.3%)(8,257)(7,338)(12.5%)N/AN/A66.060.3
Total38,41832,86316.9%20,86818,418(13.3%)17,55014,44521.5%45.7%44.0%239.4219.6
1 Operating earnings are before net finance expense, income tax, depreciation, amortisation and gain and loss on disposal of business and property, plant and equipment. 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.
2 Corporate Services provides accommodation, legal, accounting, IT, HR and communications and marketing support to the other business units. Related costs are currently not
recharged to these businesses.
Operating Earnings has increased 21.5% to $17.6 million, with:
• operating revenue increasing 16.9% to $38.4 million - the operating revenue has increased in all revenue
generating business units; and
• operating expenses increasing 13.3% to $20.9 million - we continue to invest for growth in the Funds
Management and Wealth Technologies business units, and in the Core business units we have
strengthened cyber security and enhanced the Securities IT team to deliver technology solutions to
increase trading and clearing system capacity and maintaining market stability.
The operating revenue and operating expenses are discussed in the following pages.
The Group notes the COVID-19 pandemic in the period but that it has had no material adverse impact on the
Group.
The Investor Presentation (refer https://www.nzx.com/about-nzx/investor-centre/reports-and-disclosure)
provides a detailed summary of the financial results by business unit.
NZX Interim Report 2020
14

NZX Interim Report 2020
13
Key Metrics
The key metrics for 2020 are summarised in the table below:
External dependencies
2020 full year
deliverables
1
2020 YTD actual
NZX GroupOperating earnings
2
$30 - $33.5 million$17.6 million (up 21.5%)
Core Markets
Issuer
Relationships
Capital raised (total primary and
secondary capital issued or raised
for Equity, Funds and Debt)
• Listing ecosystem
dependent on others
• No major market
correction
$9.5 billion (average of
2017/18)
$8.2 billion (up 6.5%)
Secondary
Markets
Total value traded
• Participant activity
levels drive value traded
• No major market
correction
$38.6 billion$27.9 billion (up 52.3%)
Dairy Derivatives lots traded
• Participant activity
levels drive lots traded
0.45 - 0.55 million lots205,626 lots (up 9.6%)
Data & Insights
Revenue growth (in
subscriptions, licenses and dairy
subscriptions changing revenue
mix)
• Dependent on core
markets growth
Average revenue
growth: 3.0%
$7.0 million (up 10.8%)
Funds
Management
Total Funds Under Management
• Investment market
returns impacts FUM (all
asset classes)
• No major market
correction
Continue 3-year rolling
average growth: 14%
$3.95 billion (up 14.2%
YoY, down 0.25% YTD)
Wealth
Technologies
Total Funds Under Administration
• Investment market
returns impacts FUA (all
asset classes)
• No major market
correction
Migrate new clients
onto the platform
$3.08 billion (up 46.1%)
One new customer
1 2020 full year deliverables targets were outlined in the Investor Presentation released on 14 February 2020.
2 Operating earnings are before net finance expense, income tax, depreciation, amortisation and gain and loss on disposal of business and property, plant and equipment. 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.
NZX Interim Report 2020
15

NZX Interim Report 2020
14
Operating Revenue
Issuer Relationships
Annual listing fees paid by NZX’s equity, debt and
fund issuers are driven by the number of listed issuers
and equity, debt and fund market capitalisations.
Annual listing fees have been positively impacted by
the growth in number and value of debt instruments,
and the growth in equity market capitalisation despite
delistings.
Primary listing fees are paid by all issuers at the time
of listing. The primary drivers of this revenue are the
number of new listings and the value of capital listed.
Primary listing fees in the period have been driven by
debt listings (retail and wholesale); with total new
capital listed of $2.3 billion down 43.2% on the
comparative period.
Secondary issuance fees are paid by existing issuers
when the company raises additional capital through
placements, rights issues, the exercise of options,
dividend reinvestment plans, or further debt issues.
The primary drivers for this revenue are the number
of secondary issuances and the value of secondary
capital raised. Secondary issuance fees in the period
have been driven by equity recapitalisations; with
total additional capital raised of $5.9 billion up 61.6%
on the comparative period.
Other issuer services revenue arises from time spent
by NZX Regulation reviewing listing and secondary
capital raising documents, requests for listing rule
waivers, and other significant issuer matters.
Contractual and consulting and development revenue
arises from the operation of New Zealand’s electricity
market (under a long term contract with the Electricity
Authority) and the Fonterra Shareholders' Market
(under a long term contract with Fonterra). Consulting
and development revenue is earned through systems
enhancements, including an electricity market real time
pricing project which is due for completion in 2022.
Secondary Markets
Participant services revenue is charged to market
participants (broking, clearing and advisory firms) that
are accredited for NZX’s equity, debt and derivatives
markets. The total number of market participants has
reduced, with BNP Paribas Securities Services
Australia becoming accredited for cash market
depository services, Sharesies being accredited as a
cash trading and clearing participant, offset by the
consolidation of markets (i.e. NZAX and NXT into the
Main Board) resulting in the removal of NZAX
Sponsors and NXT Advisors.
Securities trading revenue comes from the execution
of trades on NZX’s equity and debt markets. Securities
clearing revenue relates to clearing and settlement
activities, and related depository services undertaken
by NZX’s subsidiary New Zealand Clearing and
Depository Corporation Limited. The largest
component is clearing fees which are based on the
value of settled transactions.
Securities trading and clearing revenue increased as:
• the total value traded and cleared ($27.9 billion) is
52.3% higher than the comparative period; and
• the fee structure changes on 1 July 2019 (e.g.
trading fee cap has been raised and clearing tiers
reduced).
Dairy derivatives revenue relates to trading, clearing
and settlement fees for trading NZX dairy futures and
options. The fees are largely charged in USD
(reflecting the global nature of the market) per lot
traded. Dairy derivatives revenue increased in line
with the 9.6% growth in lots traded.
Data & Insights
Royalties from terminals relate to the provision of
capital markets data to global data resellers who
incorporate the data into their own subscription
products. The royalties from terminals increase of 5.8%
relates to growth in retail terminal numbers.
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15
Subscription and licences relate to the provision of
capital markets data to other participants in the
capital markets (e.g. non-display applications). The
subscriptions and licences revenue increase of 16.0%
relates to the growth in client's data usage, improved
license arrangements and increased licence numbers.
Dairy data subscriptions relate to the sale of dairy
data and analytical products. Dairy data subscription
revenue has decreased as a result of divestment of
NZX Agri business, resulting in churn of dairy
subscriptions arrangements.
Indices revenue relates to the revenue generated on
index licensing in partnership with S&P. Indices
revenue has been an area of focus to drive increasing
market liquidity.
Funds Management
Funds management revenue is generated from:
• Funds under management based revenue which
relates to variable funds under management (FUM)
fees which are received net of fund expenses. Fund
expenses include a combination of fixed costs
(principally outsourced fund accounting and
administration costs and registry fees), and variable
costs proportionate to FUM (principally custodian
fees, trustee fees, index fees, settlement costs and
third party manager fees);
• Member based revenue which includes fixed
membership administration fees and other
member services; and
• Other revenue, for example interest income,
insurance service fees and stock lending and
borrowing service fees.
FUM based revenue (net of fund expenses) has
increased 15.4% driven by:
• higher average FUM over the period, arising from
a combination of market returns and positive net
cash flows ($213 million year to date). FUM at 30 June
2020 has grown to $3.95 billion up 14.2% on the
comparative period; offset by
• fund expense associated with the new funds (e.g.
Blackrock iShares funds), and the segregation and
unitisation of SuperLife Invest providing access for
wholesale clients; partially reduced by efficiencies
from the changed operating model (including
changing custodian for some funds and internalising
management of the Cash Funds) and
improvements to supplier arrangements.
Member based revenue has decreased due to a
historical pricing provision which more than offset the
positive impact from the 7.8% growth in investor
numbers (ETFs and SuperLife).
Other revenue has been favourably impacted by the
commencement of stock lending services offset by the
impact from the decreased OCR rate.
Wealth Technologies
Wealth Technologies revenue is generated from
administration services provided on both the original
(OE) and new wealth management platforms, and
development fees received for specific client system
requirements. The administration service fees are
based on funds under administration (FUA) and have
been driven by:
• New platform – FUA continues to increase, with a
new customer transitioned in late June 2020 (the
related administration fees impact will occur in the
second half of 2020); and
• OE platform – the number of customers is
unchanged, with FUA remaining stable.
FUA at 30 June 2020 has grown to $3.08 billion up
46.1% on the comparative period.
Corporate Services
Corporate Services revenue relates to the short term
sub lease of part of the Wellington premises and
NZX.com advertising revenue.
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16
Operating Expenses
Personnel costs
Personnel costs are made up of:
• salary costs (including bonuses, commissions, ACC
levies and KiwiSaver contributions); plus
• contractor and other personnel costs (including
training, recruitment and staff benefits); less
• capitalised labour (where employees or contractors
are engaged on capital projects).
Personnel costs have increased due to a combination
of wage inflation, short term contractor resources (e.g.
assisting with the delivery of the electricity market real
time pricing project), impacts arising from the
COVID-19 lockdown and resultant lower levels of
annual leave and staff turnover (e.g. increased annual
leave and bonus accruals), and the movement in
average FTEs arising from:
• additional roles in the Securities IT team to deliver
technology solutions to increase trading and
clearing system capacity and maintaining market
stability;
• additional project management resources for
energy projects;
• Smartshares strengthening of the leadership team
(new COO and CIO) plus growing sales and
customer services resources to support growth in
line with the strategic focus;
• Wealth Technologies sales activity and additional
operational staff for new clients; and
• the vacancy numbers at each period end.
Capitalisation of internal development resources
(2020: $2.57 million; 2019: $2.07 million) primarily
relates to Wealth Technologies' core platform. NZX's
trading system upgrade has been deferred due to the
COVID-19 lockdown and the focus on increasing
trading and clearing system capacity and maintaining
market stability.
Information Technology
Information Technology costs were made up of
software licence fees, hardware support and
maintenance fees, telecommunications and data
network costs, and IT services provided by third parties.
Higher Information Technology costs in the current
period arise from:
• the network transformation project – which
stengthens cyber security; and
• additional licence costs to improve resilience of
NZX's clearing and settlement system (BaNCS).
Professional Fees
Professional fees, including legal expenses, audit and
assurance costs and advisory / consultancy fees,
include those relating to:
• NZX clearing and settlement system (BaNCS) –
independent external review of technical issues
arising from significantly increased trading
volumes, trade messaging, trade notifications and
shareholder balance enquiries;
• Smartshares investments for growth e.g. the initial
phase to implement a new front and middle office
operating system, several new ETF funds (launched
on 15 July 2020), setting up of stock lending and
borrowing services, the Asia Region Funds
Passport application, and the enhancement of
Smartshares digital tools;
• the assurance programme – internal audits, internal
control reports, energy audits and consulting
obligations under the Electricity Authority
contracts, annual conflicts review, funds conduct
risk assessment review; and
• terminal royalty audit fees which vary in proportion
to the related revenue; with costs and revenue
recognised on a gross basis.
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17
Marketing
Marketing costs relate primarily to Smartshares (aimed
at attracting new investors/members and increased
branding awareness), and NZX corporate services
(which supports the core exchange businesses and the
investor relations programme). Marketing had been
deferred during the COVID-19 lockdown and will
recommence through the remainder of 2020.
Other Expenses
Other expenses relate to premises costs, insurance,
directors fees, travel, external audit costs, outsourced
payroll system, corporate memberships, statutory/
compliance costs and non recoverable GST (on the
funds management and Wealth Technologies
businesses). Other expenses have decreased as a
result of there being no travel during the COVID-19
lockdown.
Capitalised overheads
The portion of all expense categories which relate to
capital activities (e.g. Wealth Technologies core
platform and NZX’s trading system upgrade) has
increased slightly.
Non-operating Income and Expenses
Net finance expense comprises interest income (on
cash balances, Clearing House risk capital and
regulatory working capital), interest expenses (on the
subordinated note and lease liabilities), unrealised
fair value gain on investment and foreign exchange
gains/(losses). Decreased net finance costs result from
the net gains on foreign exchange movements on USD
bank accounts.
Depreciation and amortisation expenses have
decreased due to the clearing system being fully
amortised in September 2019; offset by increases for
depreciation on:
• leased IT equipment; and
• amortisation costs capitalised in the current period
for Wealth Technologies core platform's refinement
and extension.
The effective tax rate is higher than the statutory rate
of 28% due to non-deductible items.
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20

Financials
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21

NZX Interim Report 2020
20The accompanying notes form an integral part of these financial statements
Income statement
For the six months ended 30 June 2020
Note
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Total operating revenue538,41832,86369,548
Total operating expenses6(20,868)(18,418)(38,184)
Earnings before net finance expense, income tax, depreciation,
amortisation and loss on disposal of businesses and property, plant
and equipment (EBITDA)
1
217,55014,44531,364
Net finance expense7(758)(984)(2,153)
Depreciation and amortisation expense(4,042)(4,281)(8,595)
Loss on disposal of businesses and property, plant and equipment8-(91)(83)
Profit before income tax12,7509,08920,533
Income tax expense(3,667)(2,641)(5,888)
Profit for the period9,0836,44814,645
Earnings per share
Basic (cents per share)3.32.45.3
Diluted (cents per share)3.32.35.3
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
Statement of comprehensive income
For the six months ended 30 June 2020
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Profit for the period9,0836,44814,645
Other comprehensive income recognised through equity
Foreign currency translation differences(1)(2)(1)
Total other comprehensive income(1)(2)(1)
Total comprehensive income for the period9,0826,44614,644
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22

NZX Interim Report 2020
The accompanying notes form an integral part of these financial statements21
Statement of changes in equity
For the six months ended 30 June 2020
Note
Share
Capital
$000
Retained
Earnings
$000
Translation
Reserve
$000
Total
Equity
$000
Audited balance at 1 January 2019 (Restated)51,06610,386(45)61,407
Profit for the period-6,448-6,448
Foreign currency translation differences--(2)(2)
Total comprehensive income for the period-6,448(2)6,446
Transactions with owners recorded directly in equity:
Dividends paid12-(8,424)-(8,424)
Issue of shares2,459--2,459
Share based payments274--274
Cancellation of non-vesting shares(72)72--
Total transactions with owners recorded directly in equity2,661(8,352)-(5,691)
Unaudited closing balance at 30 June 201953,7278,482(47)62,162
Profit for the period-8,197-8,197
Foreign currency translation differences--11
Total comprehensive income for the period-8,19718,198
Transactions with owners recorded directly in equity:
Dividends paid12-(8,238)-(8,238)
Issue of shares1,375--1,375
Share based payments421--421
Total transactions with owners recorded directly in equity1,796(8,238)-(6,442)
Audited closing balance at 31 December 201955,5238,441(46)63,918
Profit for the period-9,083-9,083
Foreign currency translation differences--(1)(1)
Total comprehensive income for the period-9,083(1)9,082
Transactions with owners recorded directly in equity:
Dividends paid12-(8,935)-(8,935)
Issue of shares1,195--1,195
Share based payments452--452
Share based payments for vested shares(129)--(129)
Total transactions with owners recorded directly in equity1,518(8,935)-(7,417)
Unaudited closing balance at 30 June 202057,0418,589(47)65,583
* Restated for the adoption of the new accounting standard NZ IFRS 16 Leases.
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23

NZX Interim Report 2020
22The accompanying notes form an integral part of these financial statemen
Statement of financial position
As at 30 June 2020
Note
Unaudited
30 June
2020
$000
Unaudited
30 June
2019
$000
Audited
31 Dec
2019
$000
Current assets
Cash and cash equivalents21,42015,78527,740
Cash and cash equivalents - restricted920,00020,00020,000
Funds held on behalf of third parties121,15971,30979,667
Current investment-83-
Receivables and prepayments20,79822,2589,006
Total current assets183,377129,435136,413
Non-current assets
Property, plant & equipment2,3862,8702,612
Right-of-use lease assets106,1996,4215,826
Goodwill330,22230,22230,222
Other intangible assets339,37636,71637,498
Total non-current assets78,18376,22976,158
Total assets261,560205,664212,571
Current liabilities
Funds held on behalf of third parties121,15971,30979,667
Trade payables5,2574,4893,782
Other liabilities - current16,10515,35512,276
Lease liabilities101,6571,3901,439
Current tax liability2,0778061,776
Total current liabilities146,25593,34998,940
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NZX Interim Report 2020
The accompanying notes form an integral part of these financial statements23
Statement of financial position (continued)
As at 30 June 2020
Note
Unaudited
30 June
2020
$000
Unaudited
30 June
2019
$000
Audited
31 Dec
2019
$000
Non-current liabilities
Non-current other liabilities403242323
Lease liabilities107,2677,8877,172
Interest bearing liabilities1138,87138,82438,852
Deferred tax liability3,1813,2003,366
Total non-current liabilities49,72250,15349,713
Total liabilities195,977143,502148,653
Net assets65,58362,16263,918
Equity
Share capital57,04153,72755,523
Retained earnings8,5898,4828,441
Translation reserve(47)(47)(46)
Total equity attributable to shareholders65,58362,16263,918
Net tangible assets per share (cents per share)(1.45)(1.75)(1.37)

Approved on behalf of the Board of Directors on 13 August 2020.

J B Miller
Chair of the Board
Lindsay Wright
Chair of the Audit and
Risk Committee
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25

NZX Interim Report 2020
24The accompanying notes form an integral part of these financial statements
Statement of cash flows
For the six months ended 30 June 2020
Note
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Cash flows from operating activities
Receipts from customers32,67624,69669,944
Net interest paid(933)(902)(2,091)
Payments to suppliers and employees(20,966)(18,720)(37,029)
Income tax paid(3,551)(3,923)(6,034)
Net cash provided by operating activities7,2261,15124,790
Cash flows from investing activities
Net cash paid on disposal of businesses--(4)
Cash received from short term investment--6
Payments for investment-(80)-
Payments for property, plant and equipment(256)(494)(708)
Payments for intangible assets(4,825)(3,585)(7,594)
Net cash used in investing activities(5,081)(4,159)(8,300)
Cash flows from financing activities
Payment of lease liabilities(672)(608)(1,288)
Purchase of subordinated notes(10)--
Dividends paid(7,783)(5,984)(12,847)
Net cash used in financing activities(8,465)(6,592)(14,135)
Net increase/(decrease) in cash and cash equivalents(6,320)(9,600)2,355
Cash and cash equivalents at the beginning of the period47,74045,38545,385
Cash and cash equivalents at the end of the period41,42035,78547,740
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25
Notes to the Financial Statements
For the six months ended 30 June 2020
1. Reporting entity and statutory base
RReeppoorrttiinngg eennttiittyy
The interim financial statements presented are for NZX Limited (the Company) and its subsidiaries (together
referred to as the Group) as at and for the six months ended 30 June 2020.
The Group operates New Zealand securities, derivatives and energy markets, including building and
maintaining the infrastructure on which they operate. It provides funds management services including
superannuation and exchange traded funds (ETFs), as well as building and operating wealth management
platforms for other providers. It also provides a range of information and data to support market growth and
development in the securities and dairy sectors.
The Company is a for-profit entity incorporated and domiciled in New Zealand, registered under the
Companies Act 1993 and is an FMC reporting entity under the Financial Markets Conduct Act 2013 (FMCA).
The Company is listed and its ordinary shares are quoted on the NZX Main Board. The Company also has
listed debt which is quoted on the NZX Debt Market.
B
Baassiiss ooff pprreeppaarraattiioonn
The interim financial statements have been prepared in accordance with New Zealand generally accepted
accounting practice (NZ GAAP), the requirements of the FMCA and the Main Board/Debt Market Listing Rules
of NZX Limited. The interim financial statements comply with New Zealand equivalent to International
Accounting Standards NZ IAS 34 and IAS 34 Interim Financial Reporting.
These interim financial statements do not disclose all the information required for annual financial statements
prepared in accordance with NZ IFRS. Consequently, the interim financial statements should be read in
conjunction with the financial statements and related notes included in the Annual Report for the year ended
31 December 2019.
The Group notes the COVID-19 pandemic in the period but that it has had no material adverse impact on the
Group.
A
Accccoouunnttiinngg ppoolliicciieess
These interim financial statements have consistently applied the accounting policies set out in the Group's
Annual Report for the year ended 31 December 2019.
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27

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26
AAccccoouunnttiinngg eessttiimmaatteess aanndd jjuuddggeemmeennttss
The key sources of estimation uncertainty have not changed from those used in preparing the annual financial
statements for the year ended 31 December 2019.
FFuunnccttiioonnaall aanndd pprreesseennttaattiioonn ccuurrrreennccyy
These interim financial statements are presented in New Zealand dollars ($), which is the Group's functional
currency, and are rounded to the nearest thousand dollars unless otherwise indicated..
PPrreesseennttaattiioonnaall cchhaannggeess
Certain amounts in the comparative information have been reclassified to ensure consistency with the current
period's presentation.
2. Non-GAAP measures
Reconciliation of adjusted EBITDA to profit for the period
Unaudited
6 months
ended
30 June
2020
$000
Unaudited
6 months
ended
30 June
2019
$000
Audited
12 months
ended
31 Dec
2019
$000
Profit for the period9,0836,44814,645
Income tax expense3,6672,6415,888
Profit before income tax12,7509,08920,533
Adjustments for:
- Net finance expense7589842,153
- Depreciation and amortisation expense4,0424,2818,595
- Loss on disposal of businesses and property, plant and equipment-9183
Adjusted EBITDA17,55014,44531,364
Management has presented the performance measure adjusted EBITDA because it monitors this performance
measure at a consolidated level and it believes that this measure is relevant to an understanding of the
Group’s financial performance. Adjusted EBITDA is calculated by adjusting profit from operations to exclude
the impact of taxation, net finance costs, depreciation, amortisation, and impairment losses/reversals related
to goodwill, intangible assets, property, plant and equipment.
Adjusted EBITDA is not a defined performance measure in NZ IFRS. The Group’s definition of adjusted EBITDA
may not be comparable with similarly titled performance measures and disclosures by other entities.
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27
3. Goodwill and other intangible assets
The Group performs full impairment assessment annually to determine whether there is an indicator of
impairment of its goodwill and other intangible assets. The last full impairment assessment was performed at
31 December 2019, and no impairment was required as a result.
The Group has reviewed the indicators of impairment for the six month period to 30 June 2020, and no
indicators of impairment were noted (none at 30 June 2019). Next full impairment assessment will be
performed and included in the Group's year end financial statements as at 31 December 2020.
4. Segment reporting
The Group has five revenue generating segments, as described below, which are the Group‘s strategic
business areas, and a corporate services segment which includes all costs that are shared across the
organisation. The reportable segments are:
• Issuer Relationships - provider of issuer services for current and prospective customers and market operator
for Fonterra Co-Operative Group and the Electricity Authority. For segmental reporting purposes
regulatory issuer compliance services are also included in this segment;
• Secondary Markets - provider of trading and post-trade services for securities and derivatives markets
operated by NZX, as well as the provider of a central securities depository. For segmental reporting
purposes regulatory participant compliance and surveillance services are also included in this segment;
• Data & Insights - provider of data services for securities and derivatives markets, and data and analysis for
New Zealand's dairy sector;
• Funds Management - provider of SuperLife superannuation and KiwiSaver funds, and Smartshares exchange
traded funds; and
• Wealth Technologies - funds administration provider.
The Group’s CEO (the chief operating decision maker) reviews internal management reports for each of these
strategic areas on a regular basis. The Group’s revenue is analysed into each of the reportable segments.
Expenses incurred are allocated to the segments only if they are direct and specific expenses to one of the
segments. The remaining expenses that relate to activities shared across the group are reported in the
Corporate segment.
The Group's assets and liabilities are analysed into each of the revenue generating segments, apart from
those assets and liabilities that are utilised on a shared basis, which are allocated to the Corporate segment.
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29

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28
The segment result is not a defined performance measure in NZ IFRS. Please refer to note 2 for more information.
Segmental information for the six months ended 30 June 2020
Unaudited
Issuer
Relationships
$000
Secondary
Markets
$000
Data &
Insights
$000
Funds
Management
$000
Wealth
Technologies
$000
Corporate
Services
$000
Total
$000
Operating revenue13,09110,4487,0346,80784918938,418
Operating expenses(2,828)(3,180)(1,095)(3,937)(1,382)(8,446)(20,868)
Total segment result10,2637,2685,9392,870(533)(8,257)17,550
Segment assets26,605152,5613,32140,16515,04623,862261,560
Segment liabilities(14,595)(121,903)(846)(5,151)62(53,544)(195,977)
Net assets12,01030,6582,47535,01415,108(29,682)65,583
Segmental information for the six months ended 30 June 2019
Unaudited
Issuer
Relationships
$000
Secondary
Markets
$000
Data &
Insights
$000
Funds
Management
$000
Wealth
Technologies
$000
Corporate
Services
$000
Total
$000
Operating revenue12,1157,0706,3496,30583818632,863
Operating expenses(2,667)(3,156)(927)(3,120)(1,024)(7,524)(18,418)
Total segment result9,4483,9145,4223,185(186)(7,338)14,445
Segment assets26,906100,3383,74941,44512,53820,688205,664
Segment liabilities(14,491)(70,218)(875)(5,847)(314)(51,757)(143,502)
Net assets12,41530,1202,87435,59812,224(31,069)62,162
Segmental information for the twelve months ended 31 December 2019
Audited
Issuer
Relationships
$000
Secondary
Markets
$000
Data &
Insights
$000
Funds
Management
$000
Wealth
Technologies
$000
Corporate
Services
$000
Total
$000
Operating revenue26,22115,44912,82912,8811,69347569,548
Operating expenses(5,107)(6,424)(1,816)(6,833)(2,573)(15,431)(38,184)
Total segment result21,1149,02511,0136,048(880)(14,956)31,364
Segment assets14,608110,1453,24240,82813,31930,429212,571
Segment liabilities(8,570)(79,756)(1,315)(5,656)(885)(52,471)(148,653)
Net assets6,03830,3891,92735,17212,434(22,042)63,918
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29
5. Operating revenue
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Listing fees7,8747,06615,942
Other issuer services351223500
Market operations4,8664,8269,779
Total Issuer Relationships revenue13,09112,11526,221
Participant services2,3071,8514,024
Securities trading2,8841,7633,850
Securities clearing4,4662,7136,045
Dairy derivatives7917431,530
Total Secondary Markets revenue10,4487,07015,449
Securities information6,7195,99812,102
Dairy data subscriptions315351727
Total Data & Insights revenue7,0346,34912,829
Funds Management revenue6,8076,30512,881
Wealth Technologies revenue8498381,693
Other Corporate revenue189186475
Total operating revenue38,41832,86369,548
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31

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30
6. Operating expenses
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Operating expenses
Gross personnel costs(16,620)(14,302)(28,927)
Less capitalised labour2,5732,0704,288
Net personnel costs(14,047)(12,232)(24,639)
Information technology(3,707)(3,456)(7,047)
Professional fees(1,658)(1,009)(2,180)
Marketing(422)(421)(1,308)
Other expenses(1,576)(1,714)(3,926)
Capitalised overheads542414916
Total operating expenses(20,868)(18,418)(38,184)
7. Net finance expense
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Interest income5345001,033
Interest on lease liabilities(215)(200)(414)
Other interest expense(1,181)(1,198)(2,572)
Amortised borrowing costs(37)(39)(77)
Gain on investment-36
Net gain/(loss) on foreign exchange141(50)(129)
Net finance expense(758)(984)(2,153)
8. Loss on disposal of business and property, plant and equipment
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Gain/(loss) on disposal of property, plant and equipment-(6)2
Loss on disposal of business - Fundssource-(85)(85)
-(91)(83)
The FundSource business was sold effective 21 June 2019.
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31
9. Cash and cash equivalents
The restricted cash and cash equivalents balance relates to Clearing House balances held for risk capital
purposes and are not available for general cash management use by the Group.
10. Leases
During the period, the Group entered into a new property lease agreement commencing 1 August 2021 as a
lessee, to replace an existing lease expiring on 31 August 2021.
11. Interest bearing liabilities
Unaudited
as at
30 June 2020
$000
Unaudited
as at
30 June 2019
$000
Audited
as at
31 Dec 2019
$000
Subordinated notes39,99040,00040,000
Capitalised borrowing costs(1,119)(1,176)(1,148)
Net interest bearing liabilities38,87138,82438,852
a.Subordinated notes
The subordinated notes are quoted on the NZX debt market. The terms of the subordinated notes are set out
in the Group's Annual Report for the year ended 31 December 2019 and include a financial covenant that has
been met throughout the period.
The subordinated notes are measured at amortised cost using the effective interest method, as required by NZ
IFRS 9.
b.Bank overdraft and revolving credit facilities
The Group has access to an overdraft facility with a limit of $3.0 million (30 June 2019: $5.0 million, 31 December
2019: $3.0 million). The effective interest rate of the facility at 30 June 2020 was 3.42% (30 June 2019: 4.14%,
31 December 2019: 4.28%).
The Group also has a revolving credit facility with a limit of $3.0 million (30 June 2019: $5.0 million, 31 December
2019: $3.0 million).
No amount was drawn down at 30 June 2020 (none at 30 June 2019 and 31 December 2019).
The terms of these facilities are set out in the Group's Annual Report for the year ended 31 December 2019.
Both facilities are unsecured and contain financial covenants which have been met throughout the period.
NZX Interim Report 2020
33

NZX Interim Report 2020
32
12. Dividends
Unaudited
6 months ended
30 June 2020
Unaudited
6 months ended
30 June 2019
Audited
12 months ended
31 Dec 2019
For year
ended
Cents per
share
Total
$000
Cents per
share
Total
$000
Cents per
share
Total
$000
Dividends declared and
paid
March 2019 - Final31 Dec 183.18,4243.18,424
September 2019 -Interim31 Dec 193.08,238
March 2020 - Final31 Dec 193.18,935
Total dividends paid
during the period3.18,9353.18,4246.116,662
Refer to note 16 for details of the 2020 interim dividend.
13. Share based payments
During the period, there were no changes in the CEO Long Term Incentive Plan.
Shares that were issued, transferred to NZX employees or redeemed under the NZX Limited employee share
plan - Team and Results, and rights that were issued or redeemed under the NZX Employee Long Term
Incentive Plan during the period were on terms consistent with the prior period.
During the period $1,000 worth of NZX ordinary shares (gross) were issued to new employees to encourage
staff engagement and shareholder alignment.
14. Related party transactions
a.Transactions with key management personnel
Key management personnel comprises the Group’s senior management team. Key management personnel
compensation comprised the following:
Unaudited
6 months
ended
30 June 2020
$000
Unaudited
6 months
ended
30 June 2019
$000
Audited
12 months
ended
31 Dec 2019
$000
Short-term employee benefits2,3902,3744,548
Long -term employee benefits8181161
Share-based payments239143416
2,7102,5985,125
b. Transactions with directors and other entities NZX directors are associated with
Directors fees for the six month period to 30 June 2020 were $225,000 (30 June 2019: $194,000, 31 December
2019: $418,000) and have been included in other expenses.
NZX Interim Report 2020
34

NZX Interim Report 2020
33
c.Transactions with managed funds
Management fees are received from the funds managed by wholly owned subsidiary Smartshares Limited and
are shown in the Income Statement as funds management revenue.
In the prior period the Group invested $80,000 as short term seed capital for the 8 new ETF's launched by
Smartshares in June 2019. The investment was subsequenty sold in October 2019 and $6,000 gain was realised.
15. Contingent liabilities
In New Zealand there has been increased regulatory focus on market participant compliance for entities such
as the Group. Accordingly, there has been an increase in the number of matters on which the Group engages
with its regulators including matters such as financial market conduct, reporting and disclosure obligations, tax
treatments, and product disclosure documentation. In the normal course of business the Group may be
subject to actual or possible claims. Where relevant, expert legal advice has been obtained and, in light of
such advice, provisions and/or disclosures as deemed appropriate are made.
There were no contingent liabilities as at 30 June 2019 and 31 December 2019.
16. Subsequent events
Dividend
Subsequent to balance date the Board declared an interim dividend of 3.0 cents per share (fully imputed), to
be paid on 18 September 2020 (with a record date of 4 September 2020).
NZX Interim Report 2020
35

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Review
Report
To the shareholders of NZX Limited
Report on the interi m consolidated financial statements
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the interim consolidated
financial statements on pages 22 to 35 do not:
i. present fairly in all material respects the
Group’s financial position as at 30 June 2020
and its financial performance and cash flows
for the 6 month period ended on that date;
and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— the consolidated statement of financial position as
at 30 June 2020;
— the income statement, statements of other
comprehensive income, changes in equity and cash
flows for the 6 month period then ended; and
— notes , including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial Statements
Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance engagement. The auditor
performs procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures.
As the auditor of NZX Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.
Our firm has also provided other services to the group in relation to regulatory assurance. Subject to certain restrictions,
partners and employees of our firm may also deal with the group on normal terms within the ordinary course of trading
activities of the business of the group. These matters have not impaired our independence as reviewer of the group. The
firm has no other relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might state to
the shareholders those matters we are required to state to them in the Independent Review Report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
shareholders as a body for our review wor k, this report, or any of the opinions we have formed.

© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Review
Report
To the shareholders of NZX Limited
Report on the interi m consolidated financial statements
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the interim consolidated
financial statements on pages 22 to 35 do not:
i. present fairly in all material respects the
Group’s financial position as at 30 June 2020
and its financial performance and cash flows
for the 6 month period ended on that date;
and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— the consolidated statement of financial position as
at 30 June 2020;
— the income statement, statements of other
comprehensive income, changes in equity and cash
flows for the 6 month period then ended; and
— notes , including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of interim consolidated financial statements in accordance with NZ SRE 2410 Review of Financial Statements
Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance engagement. The auditor
performs procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures.
As the auditor of NZX Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit of
the annual financial statements.
Our firm has also provided other services to the group in relation to regulatory assurance. Subject to certain restrictions,
partners and employees of our firm may also deal with the group on normal terms within the ordinary course of trading
activities of the business of the group. These matters have not impaired our independence as reviewer of the group. The
firm has no other relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might state to
the shareholders those matters we are required to state to them in the Independent Review Report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
shareholders as a body for our review wor k, this report, or any of the opinions we have formed.

Responsibilities of the Directors for the interim consolidated financial statements
The Directors, on behalf of the group, are responsible for:
— the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ IAS 34
Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of an interim consolidated financial statements
that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the interim consolidated financial
statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We conducted our
review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything has come to our attention
that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with
NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance
with International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on these interim
consolidated financial statements.
This description forms part of our Independent Review Report.

KPMG
Wellington
13 August 2020

NZX Interim Report 2020
36

CORPORATE DIRECTORY
Getting in touch
Board of Directors
James Miller (Chair)
Frank Aldridge
Nigel Babbage
Richard Bodman
Elaine Campbell
Jon Macdonald
John McMahon
Lindsay Wright
Chief Executive
Offi cer
Mark Peterson
Chief Financial
Offi cer
Graham Law
General Counsel and
Company Secretary
Hamish Macdonald
Registered Offi ce
NZX Limited
Level 1 / NZX Centre
11 Cable Street
PO Box 2959
Wellington
+64 4 472 7599
info@nzx.com
www.nzx.com
Auditors
KPMG
10 Customhouse Quay
Wellington
+64 4 816 4500
Share Register
Link Market Services Limited
PO Box 91976
Auckland 1142
+64 9 375 5998
enquiries@linkmarketservices.co.nz
www.linkmarketservices.co.nz
NZX Interim Report 2020
38

TE PAEHOKO O AOTEAROA

---

NZX INTERIM 2020 RESULTS
INVESTOR PRESENTATION
13 AUGUST 2020
Standing up in tough times

Today’s agenda
Highlights for
the Year
NZX HALF YEAR 2020 RESULTS
2
Important notice
This half year investor presentation should be read
in conjunction with the financial statements in the
2020 interim report, which provides additional
information on many areas covered in this
presentation.
This presentation contains forward looking information,
statements and targets. These reflect our current
assumptions, which are subject to market outcomes,
particularly with respect to market capitalisation, total
capital raised, secondary market value and derivatives
volumes traded, and funds under management and
administration growth.
Additionally they assume no material adverse events,
significant one-off expenses, major accounting
adjustments, other unforeseeable circumstances, or
future acquisitions or divestments.
Actual outcomes could be materially different. We give
no warranty or representation as to our future
performance (financial or otherwise) or any future
matter. Except as required by law or NZX listing rules,
we are not obliged to update this presentation after its
release.
Financial
performance
AppendicesQuestions

Half Year 2020 Highlights
NZX HALF YEAR 2020 RESULTS
3

Half Year 2020 results at a glance
NZX HALF YEAR 2020 RESULTS
4
* Operating earnings are before net finance expense, income tax, depreciation, amortisation and gain and loss on disposal of business and property, plant and equipment. 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.
The 2020 deliverable targets are detailed in the management commentary section of the 2020 Interim Report
Percentage changes represent the movement for the interim period June 2019 compared to June 2020, except Funds Under Management and Funds Under Administration which are the movement in balances as at 30 June 2019 to 30 June 2020
Operating Earnings*
$17.6
million
21.5%
Net Profit
After Tax
$9.1
million
40.9%
Interim
Dividend
(fully imputed)
3.0
cents per share
Capital raised
(total new capital and
secondary capital raised)
$8.2
billion
6.5%
Data & Insights Revenue
$7.0
million
10.8%
Total Value Traded
$27.9
billion
52.3%
Dairy Derivatives
Lots traded
205,626
9.6%
Funds Under Management
$3.95
billion
14.2%
Funds Under Administration
$3.08
billion
46.1%

Standing up in tough times
WITH THE FOUNDATIONS SET DOWN OVER THE PAST THREE YEARS, WE WERE ABLE TO RESPOND EFFECTIVELY TO THE
CHALLENGES COVID-19 PRESENTED. OUR MARKETS WERE OPEN AND READY TO HELP COMPANIES RAISE CAPITAL.
NZX HALF YEAR 2020 RESULTS
5
Issuer Relationships
Customer
engagement
•Started filming new "Issuer Spotlight" digital series
•Provided liquidity and trading updates during the COVID-19 lockdown
•Participated in the Electricity Authority’s COVID-19 Issues Working Group
Capital raised YTD $8.2
billion (FY 2020 target $9.5
billion)
Framework
•
NZX Regulation provided market support during COVID-19, including a number of
class relief packages targeted at issuers and participants
•Release of Consultation Document proposing that PFI be made voluntary for listing
profiles
•Launched NZX Partnership with Syndex (1 July 2020)
•Contributed to Government reform of the ETS policy settings
Product suite
•Total capital raised $8.2 billion YTD including secondary equity raisings, retail and
wholesale debt listings
•Changes to the listing rules have made it more efficient for companies to raise
capital ($5.37 billion) during the COVID-19 period (1 April 2020 - present)
Secondary Markets
Market
Engagement
•
BNP Paribas Securities Services Australia actively pursuing application for third
party/ General Clearing Participant status for cash markets.
•
NZX securities now available to Australian retail investors via CMC Stockbroking
•
Significant engagement with Participants and coordination of supporting market
infrastructures during COVID-19 lockdown to deliver ongoing market performance
•
Significant engagement with market stakeholders (Participants, Funds and Institutional
Investors) to drive support for launch of Mid-Point Order Book during 2021
Total value traded YTD $27.9
billion (FY 2020 target $38.6
billion)
Market
Liquidity
•
Record value traded YTD $27.9b; record on-market trading activity YTD 62.4%;
Record daily trades 112k and record average daily trade volume 48k, with
significant retail investor participation throughout
•
Price improved crossings generated over $153K gross benefit for investors
Market
Functionality
and
Operations
•
Proactive management of market operations to support volatile market conditions as
result of COVID-19 impact
•
Growing NZX Depository business – increased assets (+317.6%) and transactions
(+264.3%) as BNP clients increase in number and assets held within NZX CSD
•
Trading system upgrade project delayed as result of COVID-19 to Q1 2021
The five year aspirational target range (2023) as presented in the Investor Presentation (February 2019) and are not financial forecasts.
0
5
10
15
20
25
30
35
40
45
50
201220132014201520162017201820192020202120222023
Value Traded ($'b)
High Target
Low Target
Value Traded Full Year ($'billion)
Value Traded Half Year ($'billion)

Standing up in tough times
WITH THE FOUNDATIONS SET DOWN OVER THE PAST THREE YEARS, WE WERE ABLE TO RESPOND EFFECTIVELY TO THE
CHALLENGES COVID-19 PRESENTED. OUR MARKETS WERE OPEN AND READY TO HELP COMPANIES RAISE CAPITAL.
NZX HALF YEAR 2020 RESULTS
6
Data & Insights
Commercial
•
Recurring revenue increased 8.8%, audit and back dated licencing revenue
increased by 56.1%
•
Spike in trading activities due to market volatility has seen a corresponding
spike in royalty revenue from real time data provision
•
Growth in non-display application licencing revenues from becoming closer to
customer activities and increasing their awareness of licencing requirements
D&I average revenue growth
YTD 10.8% (FY 2020
average revenue growth
3%)
Insights
•
Significant spike in activity due to the increased market activity and requirement
to understand the market relative to previous periods and other markets
•
Webinar series for subscribers with over 2500 attendees across 10 webinars
delivering revenue opportunities to commercial team
Platform
•
Continued development of customer data management systems including
completion of phase 1 of Salesforce roll out
•
Business Intelligence capability being developed with data visualisation tool for
internal data requests being deployed and relevant data sets being centralised
Dairy Derivatives
Expand
global access
•
Exploration of Strategic Partnership opportunity to extend market distribution
underway
Lots traded YTD 205,626
growth 9.6% (FY 2020
target: 450,000 – 550,000
lots)
Boost sales
and
marketing
•
Transformed online offering – depth feed on website, animated online
educational hedging academy in final stages
•
International webinar series launched in place of physical roadshows due to
COVID-19 seeing over 1,600 international and local unique subscribers
•
Distribution list growth for data and daily market price updates +155%
•
Active end user growth + 48%
Extend
product set
•
Adjusted AMF Futures settlement to reduce basis with underlying physical market
•
Derivatives based Milk Price ETF product business casing began
The five year aspirational target range (2023) as presented in the Investor Presentation (February 2019) and are not financial forecasts.
-
250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
20102011201220132014201520162017201820192020202120222023
Dairy Derivative Lots (#)
High Target
Low Target
Lots Traded Full Year
Lots Traded Half year
4
6
8
10
12
14
2016 2017 2018 2019 2020 2021 2022 2023
Data & Insight Revenue ($'m)
Low Target
High Target
Data Revenue Full
Year
Data Revenue Half
year

Standing up in tough times
WITH THE FOUNDATIONS SET DOWN OVER THE PAST THREE YEARS, WE WERE ABLE TO RESPOND EFFECTIVELY TO THE
CHALLENGES COVID-19 PRESENTED. OUR MARKETS WERE OPEN AND READY TO HELP COMPANIES RAISE CAPITAL.
NZX HALF YEAR 2020 RESULTS
7
Smartshares
Lead in systematic
investment
management
•Launched four new core ETFs on 15 July 2020
•Launched Smartshares unlisted funds on major NZ wrap platforms
•Initial phases implementing Bloomberg AIM and BSKT (front office system)
•Smartshares ETFs now account for 4.6% of NZSX Main Board value
traded, up from 0.5% in 2018
FUM growth:
•YoY 14.2%
•YTD (0.25)%
(FY 2020 target 14%)
FUM YoY growth driven by:
•Net cash flows 14.9%
•Market Returns (1.2)%
FUM YTD growth driven by:
•Net cash flows 5.4%
•Market Returns (5.7)%
Expand offer for
institutional investors
•Awarded first passive NZ equity mandate for KiwiSaver and Corporate
Superannuation
•Launched a stock lending programme
Lead in financial
well-being solutions
•Investor seminars continued online during COVID-19 Lockdown
•New Client Director for Corporate segment recruited
Develop Corporate
Super Master Trust
•Three corporate superannuation scheme wins
•Increased level of net cash flows from investors
•Continued improvement service quality, automation and cost efficiency
Accelerate growth
•Continuing to explore inorganic opportunities to accelerate growth
Wealth Technologies
Grow customer
pipeline
•Onboarded new client’s PIP/PIE business in June 2020
•The onboarding of another two new clients reaching completion in H2-20
•Project commencing to decommission the old platform
•Continuing to develop the pipeline with projects lined up for 2021
Migrated 1 new customer (FY
2020 target: Migrate new
clients onto the platform)
Widen platform
offering
•Further functionality released into production and expanded resourcing to
support growth
Corporate
Governance and
efficiency
improvements
•
Adopting a new regulatory operating and governance model, with a
separate entity providing regulatory services with an independent board
•Continuing focus on fitness and automation, e.g. Network Transformation
project will deliver new network, VPN and firewall capabilities
Get Fit
The five year aspirational target range (2023) as presented in the Investor Presentation (February 2019) and are not financial forecasts.
0
1,000
2,000
3,000
4,000
5,000
6,000
Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Funds Under Management ($'m)
Low TargetHigh Target
-
10,000
20,000
30,000
40,000
50,000
Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
Funds Under Administration ($'m)
Low Target
High Target

Our people are critical to our delivery
Culture & Engagement
• Employee engagement continues to
strengthen, with 8th successive increase in
the May survey
• NZX now ranks at the 72nd percentile of all
New Zealand companies in Gallup’s survey
for employee engagement
• A Future of Flexible Work review is underway
to redefine our approach and leverage
benefits for employees, customers, and
company performance
Diversity & Inclusion
• Diversity & Inclusion objectives for 2020 will
measure diversity in recruitment, assess
gender pay, and support youth employment
• Latest monitoring shows inclusiveness within
our workplace is high and growing. NZX
continues to attract and retain a diverse
workforce through 2020
Resourcing
• A disciplined approach to recruitment, and
deferral outside of growth areas
• Additional capability has been added to
serve new customers in Wealth
Technologies, and in Market Technology to
support sustained increases in market
trading activity
• Retention is strong, with turnover easing to
5% year to date
Health & Safety
• Strong capability in business continuity
planning and crisis management ensured
NZX moved early to manage pandemic risks
and safeguard market operations throughout
the COVID-19 lockdown
• Careful management of health and safety
risks has ensured full resourcing and health
of our workforce during the pandemic to date
• Up to 97% of the workforce worked remotely
during Level 4, with a graduated return to
offices at lower alert levels
• Wellbeing and morale remained high; internal
communications were ramped up to keep our
workforce connected and focused
• Support for mental health was delivered
remotely during lockdown, including Building
Resilience workshops, in partnership with our
EAP provider
NZX HALF YEAR 2020 RESULTS
8
OUR CULTURE AND PERFORMANCE WAS TESTED BY THE UNPRECEDENTED HEALTH AND ECONOMIC EVENTS OF THIS
YEAR, AND HAS PROVEN THAT OUR PEOPLE ARE HIGHLY CAPABLE, FOCUSED AND RESILIENT

Financial performance
NZX HALF YEAR 2020 RESULTS
9

Income Statement
NZX HALF YEAR 2020 RESULTS
10
•
Operating earnings of $17.6 million (2019: $14.4 million) is 21.5%
higher; with the operating margin improving to 45.7% (2019: 44.0%).
•
Operating revenue, operating expenses and non-operating expenses
are discussed in detail on the following slides. The operating earnings
by division are discussed in detail in Appendix 1.
June 2020
$’000
June 2019
$’000
Change
Fav/(unfav)
Operating revenue38,418 32,863 16.9%
Operating expenses (20,868)(18,418)(13.3%)
Operating earnings *17,550 14,445 21.5%
Net finance expense(758)(984)23.0%
Loss on disposal of business and property, plant
and equipment-(91)N/A
Depreciation and amortisation expense(4,042)(4,281)5.6%
Income tax expense(3,667)(2,641)(38.8%)
Net Profit After Tax9,083 6,448 40.9%
Operating Margin45.7%44.0%3.9%
* Operating earning prior to 2017 includes the Agri businesses which were subsequently sold
* 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.

Operating earnings waterfall
NZX HALF YEAR 2020 RESULTS
11
A high level summary of operating earnings:
•
Revenue movements due to increases in listing fees, trading & clearing fees, data revenue and funds management fees; and
•
Expense movements due to increases personnel costs, IT costs and professional fees.
*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
.

Operating earnings
NZX HALF YEAR 2020 RESULTS
12
June 2020
$’000
June 2019
$’000
Change
Fav/(unfav)
Operating Revenue
Issuer Relationships13,091 12,115 8.1%
Secondary Markets10,448 7,070 47.8%
Data & Insights7,034 6,349 10.8%
Funds Management6,807 6,305 8.0%
Wealth Technologies849 838 1.3%
Corporate189 186 1.6%
Total operating revenue38,418 32,863 16.9%
Operating Expenses
Gross personnel costs(16,620)(14,302)(16.2%)
Less capitalised labour2,573 2,070 24.3%
Personnel costs(14,047)(12,232)(14.8%)
Information technology(3,707)(3,456)(7.3%)
Professional fees(1,658)(1,009)(64.3%)
Marketing(422)(421)(0.2%)
Other expenses(1,576)(1,714)8.1%
Capitalised overheads542 414 30.9%
Total operating expenses(20,868)(18,418)(13.3%)
Operating earnings*17,550 14,445 21.5%
•
The Operating Revenue and Operating Expenses are discussed in the
following slides.
•
The Operating Earnings by Business are also discussed in the following
slides, with further detail provided in Appendix 1.
* 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.

Operating earnings
Issuer Relationships:
• Annual listing fees (ALF) were positively impacted
by the growth in:
–number and value of debt instruments, and
–the growth in equity market capitalisation
despite delistings
• Primary listing fees driven by debt listings (retail
and wholesale). Secondary issuance fees driven
by a high level of equity recapitalisations
• Consulting and development revenue earned
through electricity system enhancements,
including an electricity market pricing project,
which is due for completion in 2022
Secondary Markets:
• Securities trading and clearing revenues increased
due to:
- the total value traded and cleared being 52.3%
higher; and
- the fee structure changes on 1 July 2019 (e.g.
trading fee cap has been raised and clearing
tiers reduced)
• Dairy derivatives revenue increased with growth in
lots traded of 9.6%
Data & Insights:
• Royalties from terminals revenue increase relates
to higher retail terminal numbers
• Subscriptions and licences revenue increase is
driven by:
–Growth in client data usage;
–improved client license arrangements post
audit; and
–increased license numbers
• Dairy subscription revenue decreased as a result
of divestment of NZX Agri business and its impact
on churn of dairy subscriptions
• Indices revenue has been an area of focus to drive
increasing market liquidity
• Audit and back dated licencing revenue was
significantly higher due to increased audit closures
Wealth Technologies:
• Administration (FUA based) fees driven by:
–New platform – FUA continues to increase,
with a new client migration in late June 2020
(the administration fees impact will occur in
H2-20)
–OE platform – number of customers is
unchanged, with FUA stable
Funds Management:
• FUM based revenue has increased 15.4% driven
by:
–H
igher average FUM over the period, which is
a combination of market returns and positive
net cash flows; offset by
–fund expense associated with the 8 new
Blackrock iShares funds, and the segregation
and unitisation of SuperLife Invest providing
access for wholesale clients; partially reduced
by efficiencies from the changed operating
model (including changing custodian for some
funds and internalising management of the
Cash Funds) and improvements to supplier
arrangements
• Member based revenue has decreased due to a
historical pricing provision which more than offset
the increase in investor numbers of 7.8% over the
period
• Other revenue has been impacted negatively by
the decrease in OCR and positively by the
commencement of stock lending services
Corporate Services:
• Other corporate revenue primarily relates to the
short term sub lease of part of the Wellington
premises and NZX.com advertising revenue.
NZX HALF YEAR 2020 RESULTS
13
OPERATING REVENUE
* 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.

NZX HALF YEAR 2020 RESULTS
14
Operating earnings
Personnel costs
• Personnel costs are driven by the average FTEs in
the period and the capitalisation of internal
development resources
• Personnel costs have increased due to a
combination of wage inflation, short term contractor
resources (e.g. assisting with the delivery of the
electricity market real time pricing project), impacts
arising from the COVID-19 lockdown and resultant
lower levels of annual leave and staff turnover (e.g.
increased annual leave and bonus accruals), and
the movement in average FTEs arising from:
–three additional roles in the Securities IT team to
deliver technology solutions to increase trading
and clearing system capacity and maintaining
market stability;
–additional project management resources for
energy projects;
–Smartshares strengthening of the leadership
team (new COO and CIO) plus growing sales
and customer services resources to support
growth in line with the strategic focus;
–Wealth Technologies sales activity and
additional operational staff for new clients; and
–movements in vacancy numbers at period ends.
• Capitalisation of internal development resources
(2020: $2.57 million; 2019: $2.07 million) primarily
relates to Wealth Technologies' core platform.
NZX’s trading system upgrade has been deferred
due to the COVID-19 lockdown and the focus on
increasing trading and clearing system capacity and
maintaining market stability.
Information Technology
• IT costs higher than the comparable period due to:
–Network Transformation project costs (which
strengthens NZX’s cyber security); and
–additional license costs to improve resilience of
NZX's clearing and settlement system (BaNCS).
Marketing
• Marketing had been deferred during the COVID-19
lockdown and will recommence in H2-20, including:
–the Investor relations programme;
–Marketing of the market; and
–Smartshares new ETF funds launch and
rebranding
Other Expenses
• Other expenses relate to premises related costs
(i.e. electricity, rates etc), insurance, directors fees,
travel, external audit costs, outsourced payroll
system, corporate memberships, statutory /
compliance costs and non recoverable GST (on the
Smartshares and Wealth Technologies businesses)
• The decrease in other expenses primarily relates to
there being no travel during the COVID-19
lockdown
Professional Fees
• Professional fees include those relating to:
–NZX clearing and settlement system (BaNCS)
independent external review of technical issues
arising from significantly increased trading
volumes, messaging, notifications and
shareholder balance enquiries;
–Smartshares investments for growth e.g. the
initial phase of a new front and middle office
operating system, four new ETF funds
(launched on 15 July 2020), set up of stock
lending and borrowing services, the Asia Region
Funds Passport application, and the
enhancement of Smartshares digital tools;
–the assurance programme – internal audits,
internal control reports, energy audits and
consulting obligations under the Electricity
Authority contracts, annual conflicts review,
funds conduct risk assessment review; and
–terminal royalty audit fees which vary in
proportion to audit revenue; with costs and
revenues recognised on a gross basis.
Capitalised overheads
• The portion of all expense categories which relate
to capital activities (e.g. Wealth Technologies core
platform and NZX’s trading system upgrade) has
increased (2020: $0.54 million; 2019: $0.41 million).
OPERATING EXPENSES
* 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.

Operating earnings by Business
NZX HALF YEAR 2020 RESULTS
15
June 2020
$’000
June 2019
$’000
Change
Fav/(unfav)
Issuer Relationships
Operating Revenue
13,091
12,115 8.1%
Operating Expenses
(2,828)
(2,667)(6.0%)
Operating Earnings
10,263
9,448 8.6%
Secondary Markets
Operating Revenue
10,448
7,070 47.8%
Operating Expenses
(3,180)
(3,156)(0.8%)
Operating Earnings7,268 3,914 85.7%
Data & Insights
Operating Revenue
7,034
6,349 10.8%
Operating Expenses
(1,095)
(927)(18.1%)
Operating Earnings
5,939
5,422 9.5%
Funds Management
Operating Revenue
6,807
6,305 8.0%
Operating Expenses
(3,937)
(3,120)(26.2%)
Operating Earnings
2,870
3,185 (9.9%)
Wealth Technologies
Operating Revenue
849
838 1.3%
Operating Expenses
(1,382)
(1,024)(35.0%)
Operating Earnings
(533)
(186)(186.6%)
Corporate Services
Operating Revenue
189
186 1.6%
Operating Expenses
(8,446)
(7,524)(12.3%)
Operating Earnings
(8,257)
(7,338)(12.5%)
Issuer Relationships
Revenue increases mainly due to higher ALF revenue (market capitalisation driven)
and secondary issuance fees (high level of equity recapitalisations in H1-20)
Expense increases are due to:
•
Personnel costs – the COVID-19 lockdown has resulted in less annual leave
being taken and an increase in accrual costs
•
Energy IT costs – increased levels of 3
rd
party specialist support
Secondary Markets
Revenue increases result from the fee structure changes on 1 July 2019 and the
increased total value traded and cleared
Expense movements are the net impact of:
–Employee costs are lower due to a lower average number of employees
–IT Costs have increased for additional licenses to improve resilience of NZX's
clearing and settlement system (BaNCS)
Data & Insights
Revenue increases due to higher retail terminal numbers, increased non-display
usage, a greater level of audit closures generating off back dated revenues and
renewed license arrangements
Expenses increases relate to personnel costs, which are higher due to the continued
use of an external contractor for insights and the COVID-19 lockdown impact.
Additionally capitalised labour is lower as projects are now complete.
* 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.

Operating earnings by Business
NZX HALF YEAR 2020 RESULTS
16
Wealth Technologies (continued)
Expense increases are due to:
–Net personnel costs have increased with the addition of operational staff for new
clients migrating in the current year, as well as senior staff undertaking sales
activity (rather than CAPEX activity).
–Professional fees have increased due to external legal fees associated with new
clients contracts and an internal control report for the new platform, which is off set
by increased capitalisation of overheads
Corporate Services
Revenue relates to the sublease of spare office space and NZX.com advertising
Expenses increases are relate to:
• Net personnel costs reflect a combination of higher average headcount from
three new roles in the Securities IT team (to deliver technology solutions to
increase trading and clearing system capacity and maintaining market stability),
additional project management resources for energy projects, and a minor
decrease in vacancies. Additionally there are the COVID-19 lockdown impacts
and lower capitalisation levels with the deferral of the trading system upgrade
• IT Costs – include project costs for the Network Transformation to strengthen
NZX’s cyber security
• Professional Fees – include the costs of the independent external review of
NZX’s clearing and settlement system (BaNCS) technical issues associated to
the significantly increased trading volumes, messaging, notifications and
shareholder balance enquiries
Note - Corporate Services provides accommodation, legal, accounting, IT, HR and
communications and marketing support to all divisions (including the Funds
Management and Wealth Technologies businesses). Related costs are currently not
recharged to these businesses.
Funds Management
FUM based revenue has increased 15.4% in line with higher average FUM +19.5%,
offset by fund expense increases associated with the 8 new Blackrock iShares funds
and the segregation and unitisation of SuperLife Invest providing access for
wholesale clients; partially reduced by efficiencies from the changed operating model
(including changing custodian for some funds and internalising management of the
Cash Funds)
Member based revenue has decreased due to a historical pricing provision which
more than offset the increase in investor numbers of 7.8% over the period
Expenses have increased as we continue to invest for growth:
–Personnel costs – we have strengthened the leadership team (new COO and CIO)
plus have grown sales and customer services resourcing to support growth in line
with the strategic focus. Additionally there are the COVID-19 lockdown impacts
and lower capitalisation levels
–Professional fees – include specific projects focused on growing revenues and
managing risks including:
• the initial phase of a new front and middle office operating system;
• four new ETF funds (which launched on 15 July 2020);
• set up of stock lending and borrowing services;
• the Asia Region Funds Passport application; and
• the enhancement of Smartshares digital tools
Wealth Technologies
Revenue – average FUA is consistent to the comparable period. The new client
migration in late June 2020 will increase revenue in H2-20.
* 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.

Non-operating income and expenses
• Net finance costs include:
–interest income on cash balances, Clearing House risk capital
and regulatory working capital; which have been impacted by
decreased interest rates; and
–interest expenses (including amortised borrowing costs) on the
subordinated notes and lease liabilities.
–Net gain / (loss) on foreign exchange
• Depreciation and Amortisation decreased due to:
–Clearing System (BaNCS) was fully amortised in September
2019; offset by increases for
–Wealth Technologies – the current period capitalised costs for
the core platform's refinement and extension; and
–new lease of IT equipment (from May 2019).
• Effective tax rate is higher than statutory rate of 28% due to non-
deductible items.
NZX HALF YEAR 2020 RESULTS
17
June 2020
$’000
June 2019
$’000
Change
Fav/(unfav)
Interest income534 500 6.8%
Interest on lease liabilities(215)(200)(7.5%)
Other interest expense(1,181)(1,198)1.4%
Amortised borrowing costs(37)(39)4.3%
Unrealised gain on investment-3 N/A
Net gain / (loss) on foreign exchange141 (50)382.0%
Net finance expense(758)(984)23.0%
Depreciation of PP&E(482)(379)(27.2%)
Amortisation of lease assets(613)(529)(15.9%)
Amortisation of intangibles(2,947)(3,373)12.6%
Total depreciation and amortisation(4,042)(4,281)5.6%
Loss on disposal of business and property, plant and
equipment-(91)N/A
Tax expense(3,667)(2,641)(38.8%)
Total net other expenses(8,467)(7,997)(5.9%)

Balance Sheet
• Cash and cash equivalents includes:
–Clearing House risk capital ($20 million) which is not available for
general use.
–Clearing House also complies with International Organisation of
Securities Commissions principles requiring retention of sufficient
working capital (including cash of approximately $2.3 million).
–Smartshares maintains sufficient net tangible assets in accordance with
its license requirements (including cash of approximately $1.6 million).
• Receivables balances are higher each half year due to the timing of annual
listing fee invoicing.
• Funds held on behalf of third parties (assets and liabilities) offset. These
relate to issuer bond deposits, participants’ collateral deposits and
deposited funds (including those held in the Mutualised Default Fund).
Amounts are repayable to issuers and participants and not available for
general use.
• Right-of-use lease assets and the lease liabilities relate to leased premises
and IT equipment.
• Other non-current assets consist of property, plant & equipment, intangible
assets and goodwill.
• Other current liabilities includes income in advance related to annual listing
and participant fees, and tax payables.
• Other non-current liabilities mainly relate to deferred tax.
NZX HALF YEAR 2020 RESULTS
18
June 2020
$’000
June 2019
$’000
Change
Fav/(unfav)
Current assets
Cash and cash equivalents41,420 35,785 15.7%
Receivables and prepayments20,798 22,258 (6.6%)
Current investment-83 (100.0%)
Funds held on behalf of third parties121,159 71,309 69.9%
Total current assets183,377 129,435 41.7%
Non-current assets
Right-of-use lease assets6,1996,421 (3.5%)
Other non-current assets71,984 69,808 3.1%
Total non-current assets78,183 76,229 2.6%
Current liabilities
Trade payables5,257 4,489 (17.1%)
Other current liabilities18,182 16,161 (12.5%)
Lease liabilities1,657 1,390 (19.2%)
Funds held on behalf of third parties121,159 71,309 (69.9%)
Total current liabilities146,255 93,349 (56.7%)
Non-current liabilities
Interest bearing liabilities38,871 38,824 (0.1%)
Lease liabilities7,267 7,887 7.9%
Other non-current liabilities3,584 3,442 (4.1%)
Total non-current liabilities49,722 50,153 0.9%
Net assets/equity 65,583 62,162 5.5%

Balance Sheet - CAPEX
Core Markets
• Capex driven by specific system life cycles which result in large multi-year
projects
• Trading system upgrade – total spend will be comparable to 2012, with
most incurred in 2019. The implementation has been delayed until in Q1
2021 as result of COVID-19 and the focus on increasing trading and
clearing system capacity and maintaining market stability.
• Network Transformation – which strengthens NZX’s cyber security
• Normal life cycle replacements for IT equipment and software
Growth Businesses
• Wealth Technologies CAPEX relates to:
–continues to release further functionality into production;
–successfully migrated a new client in late June 2020; and
–further migrations (Hobson and Saturn) are expected in H2-20, with
discovery underway for Craigs.
• Smartshares CAPEX relates to:
–front office operating system – the initial phase of implementing
Bloomberg AIM and BSKT, which will be completed in H2-20; and
–digital tools – the continued delivery of digital tools for improved client
servicing and efficiency
NZX HALF YEAR 2020 RESULTS
19

Cash Flows
Operating activities
• Cash flow from operating activities includes net interest and income tax
paid
• The increase reflects a higher Net Profit After Tax and working capital
movements (e.g. timing of receivables receipts and trade payables
payments)
Investing activities
• Investing activities relate to CAPEX, which is primarily:
–Wealth Technologies software development; and
–the Trading System upgrade
Financing activities
• Financing activities includes dividends which are net of participation in the
dividend reinvestment plan
NZX HALF YEAR 2020 RESULTS
20
June 2020
$000
June 2019
$000
Change
Fav/ (unfav)
Operating activities7,2261,151527.8%
Investing activities(5,081)(4,159)(22.2%)
Financing activities(8,465)(6,592)(28.4%)
Net increase in cash and cash equivalents(6,320)(9,600)34.2%

Interim Dividend2020 Earnings Guidance
NZX HALF YEAR 2020 RESULTS
21
Interim Dividend
• The Board has declared an interim dividend (fully imputed) of 3.0 cps
(June 2019: 3.0 cps)
• Dividend to be paid on 18 September 2020 to shareholders registered
as at 4 September 2020
Dividend Policy
• The policy is to pay between 80% to 110% of adjusted Net Profit After
Tax over time, subject to maintaining a prudent level of capital to meet
regulatory requirements
• Adjustments include reversing the impact of intangible asset
impairments
Dividend reinvestment plan
• Available for interim dividend
• Shares will be issued at 1.0% discount
2020 Earnings Guidance
NZX maintaining its FY2020 operating earnings guidance of $30.0 million
to $33.5 million. NZX notes that based on the performance to date there is
a greater expectation for a full year outcome to be towards the top end of
the range.
The guidance is subject to market outcomes over the remainder of the
year, particularly with respect to market capitalisation, total capital raised,
secondary market value and derivatives volumes traded, and funds under
management and administration growth.
Additionally this guidance assumes no material adverse events, significant
one-off expenses, major accounting adjustments, other unforeseeable
circumstances, or future acquisitions or divestments.

Questions?
22
NZX HALF YEAR 2020 RESULTS

Appendices
NZX HALF YEAR 2020 RESULTS
23

Appendix 1: Operating earnings by business
NZX HALF YEAR 2020 RESULTS
24
Notes:
1.Issuer Relationships includes the Issuer Relationship, Energy and Issuer Compliance teams (for the equity, energy and Fonterra shareholders’ markets).
2.Secondary Markets includes the Secondary Markets, Clearing House, Dairy Derivatives, Surveillance and Participant Compliance teams.
3.Corporate Services provides accommodation, legal, accounting, IT, HR and communications and marketing support to the other business units. Related costs are currently not recharged to these businesses.
4.NZX will reassess the reportable segments on adoption of the proposed new separate operating and governance model for the regulatory function.
5.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.
Six months ended 30 June 2020
$000
Issuer
Relationships
Secondary
Markets
Data &
Insights
Funds
Management
Wealth TechnologiesCorporate
Services
Total
Operating revenue
13,091 10,448 7,034 6,807849 189 38,418
Operating expenses
(2,828)(3,180)(1,095)(3,937)(1,382)(8,446)(20,868)
Operating earnings
10,263 7,268 5,939 2,870 (533)(8,257)17,550
FTEs
35.8 28.4 9.1 49.8 50.3 66.0 239.4
Operating margin
78.4%69.6%84.4%42.2%(62.8%)N/A45.7%
Six months ended 30 June 2019
$000
Issuer
Relationships
Secondary
Markets
Data &
Insights
Funds
Management
Wealth TechnologiesCorporate
Services
Total
Operating revenue
12,115 7,070 6,349 6,305 838 186 32,863
Operating expenses
(2,667)(3,156)(927)(3,120)(1,024)(7,524)(18,418)
Operating earnings
9,448 3,914 5,422 3,185 (186)(7,338)14,445
FTEs
36.6 29.7 9.5 47.5 36.0 60.3 219.6
Operating margin
78.0%55.4%85.4%50.5%(22.2%)N/A44.0%

Issuer Relationships
Highlights
• Total capital (primary and secondary) raised $8.2 billion;
• NZX Regulation provided market support during COVID-19, including a number of class relief
packages targeted at issuers and participants
• Release of consultation proposing that PFI be made voluntary for listing profiles
• Launched NZX Partnership with Syndex (1 July 2020)
• Capital Markets 2029 recommendations are being progressed
Operating revenue
• Annual listing fee year runs from 1 July to 30 June; hence the H1-20 fees are based on market
capitalisation at 31 May 2019
• Primary and secondary listing fees driven by debt listings and equity recapitalisations
respectively
• Other issuer services revenue relates to NZX Regulation issuer compliance function
• Consulting and development revenue is being earned through electricity system enhancements,
including an electricity market real time pricing project
• Contractual revenue in line with long term contracts with the Electricity Authority and Fonterra
Operating expenses
• Personnel costs are higher due to impacts arising from the COVID-19 lockdown and resultant
lower levels of annual leave and staff turnover (e.g. increased annual leave and bonus
accruals), and the use of contractors to assist with the delivery of the electricity market real time
pricing project. Note Issuer Relationships includes the energy and NZX Regulation issuer
compliance teams.
• Energy IT costs have slightly increase from using 3
rd
party specialist support
• Professional fees relate to energy audit and consulting obligations under Electricity Authority
contract, for example Energy Clearing Manager review in the current year
• Marketing and travel costs are lower as a result of the COVID-19 lockdown
NZX HALF YEAR 2020 RESULTS
25
TASKED WITH CREATING A COMPELLING AND ATTRACTIVE PROPOSITION FOR OUR CURRENT AND PROSPECTIVE EQUITY, FUND AND DEBT
CUSTOMERS AND DELIVERING ON OUR CONTRACTED SERVICE PROVIDER OFFERINGS
Operating Earnings
June 2020
$000
June 2019
$000
Change
Fav/(unfav)
Operating revenue
Annual listing fees
5,4715,1486.3%
Primary listing fees
208370(43.8%)
Secondary issuance fees
2,1951,54841.8%
Other issuer services
35122357.4%
Consulting and development revenue
339499(32.1%)
Contractual revenue
4,5274,3274.6%
Total operating revenue
13,09112,1158.1%
Total operating expenses
(2,828)
(2,667)(6.0%)
Operating earnings*
10,263
9,4488.6%
FTEs
35.8
36.62.2%
Strategic metrics
June 2020June 2019 Change
Fav/(unfav)
Equity market capitalisation
$158.5 billion$149.2 billion6.3%
Funds market capitalisation
$5.0 billion$4.3 billion16.8%
Debt market capitalisation
$36.7 billion$32.5 billion12.9%
Total Market Capitalisation
$200.2 billion$186.0 billion7.7%
Number of capital raising events - YTD
1,470
75794.2%
Value of primary capital listed – YTD
$2.3 billion$4.0 billion (43.2%)
Value of secondary capital raised – YTD
$5.9 billion$3.6 billion61.6%
Total capital raised - YTD
$8.2 billion$7.6 billion6.5%
* 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.

Secondary Markets
Highlights (continued)
• The total number of trading, clearing and depository participants has reduced with BNP
Paribas Securities Services Australia becoming accredited for cash market depository
services, Sharesies being accredited as a cash trading and clearing participant, offset by the
consolidation of markets (i.e. NZAX and NXT into the Main Board) resulting in the removal of
NZAX Sponsors and NXT Advisors.
• Significant engagement with market stakeholders (Participants, Funds and Institutional
Investors) to drive support for launch of Mid-Point Order Book; although trading system
upgrade project delayed as result of COVID-19
• NZX Clearing consultation on Recovery and Resolution planning continuing
• Growing NZX Depository business through increased assets (+317.6%) and transactions
(+264.3%) as BNP clients increase in number and assets held within NZX CSD
• Dairy derivative lot numbers increased 9.6%, impacted by changing levels of market volatility
Operating revenue
• Participant services revenue relates to increased fees from 1 July 2019, net of charges for
data networks reducing due to IT cost savings initiatives
• Securities trading and clearing revenues have been impacted by:
- the total value traded and cleared being 52.3% higher; and
- the fee structure changes on 1 July 2019 (e.g. trading fee cap has been raised and
clearing tiers reduced)
• Dairy derivatives revenue increase relates to growth in lots traded
Operating expenses
• Personnel costs are slightly lower due to reduced average staff numbers. Note Secondary
Markets includes NZX Regulation’s participant compliance and surveillance teams
• Information technology costs are higher due to movements in FX rates impacting trading and
clearing system costs
• Travel costs are lower as a result of the COVID-19 lockdown
NZX HALF YEAR 2020 RESULTS
26
TASKED WITH DRIVING SECONDARY MARKET DEVELOPMENT ACROSS ALL MARKETS AND MANAGING PARTICIPANT RELATIONSHIPS
Operating Earnings
June 2020
$000
June 2019
$000
Change
Fav/(unfav)
Operating revenue
Participant services revenue
2,3071,85124.6%
Securities trading revenue
2,8841,76363.6%
Securities clearing revenue
4,4662,71364.6%
Dairy derivatives revenue
7917436.5%
Total operating revenue
10,4487,07047.8%
Total operating expenses
3,1803,156(0.8%)
Operating earnings*
7,2683,91485.7%
FTEs
28.429.74.4%
Strategic metrics
June 2020June 2019 Change
Fav/(unfav)
Number of trades – YTD5.89 million1.9 million 215.8%
Total value traded – YTD$27.9 billion$18.4 billion
52.3%
Percentage of value on-market – YTD62.4%51.5%
21.1%
Depository assets under custody
$3,725 million$892 million 317.6%
Dairy derivatives lots traded – YTD
205,626187,6109.6%
Number of participants
34
36
(5.6%)
Highlights
• Significant engagement with Participants and coordination of supporting market
infrastructures during COVID-19 lockdown period to deliver ongoing market performance
• Record value traded YTD $27.9 billion with record on-market trading activity YTD 62.4%
• Record daily trades 112k and record average daily trade volume 48k, with significant
retail investor participation throughout
* 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.

Data & Insights
Highlights (continued)
–Indices business growth has been driven through an increase of passive assets under
management and additional index data clients
• Audit activity has been high in H1-20 with one off audit and back dated licencing revenue
increasing 56.1%
Operating revenue
• Royalties from terminals revenue increase relates to higher retail terminal numbers
• Subscriptions and licences revenue increase is driven by a) increased non-display usage,
and b) renewing client license arrangements post audit.
• Dairy subscription revenue decrease a result of divestment of NZX Agri business and its
impact on churn of dairy subscriptions
• Indices revenue has been an area of focus to drive increasing market liquidity
• Audit and back dated licencing revenue increased due to increased audit closures; which is
expected to tail off in H2-20
• Other revenue included Fundsource revenue which was sold on 21 June 2019
Operating expenses
• Personnel costs are higher due to the continued use of an external contractor for insights,
and impacts arising from the COVID-19 lockdown and resultant lower levels of annual
leave and staff turnover (e.g. increased annual leave and bonus accruals)
• Professional fees are higher due to increased royalty audit fees. Fees are charged as a
proportion of the royalty audit receipts. Royalty audit receipts and audit fees are recognised
on a gross basis
• Information technology costs relating primarily to software licenses associated with
the delivery of customer management data platforms are higher
• Travel costs are lower as a result of the COVID-19 lockdown
NZX HALF YEAR 2020 RESULTS
27
TASKED WITH GROWING EXISTING DATA REVENUES AND TURNING RAW DATA INTO INSIGHTS THAT SUPPORTS GROWTH IN ALL MARKETS
Operating Earnings
June 2020
$000
June 2019
$000
Change
Fav/(unfav)
Operating revenue
Royalties from terminals
3,3603,1755.8%
Subscriptions and licenses
2,0931,80516.0%
Dairy data subscriptions
315351 (10.3%)
Indices
49042216.1%
Audit and back-dated licenses
77649756.1%
Other
-99 (100.0%)
Total operating revenue
7,0346,34910.8%
Total operating expenses
1,095927 (18.1%)
Operating earnings*
5,9395,4229.5%
FTEs
9.19.54.2%
Strategic metrics
June 2020June 2019 Change
Fav/(unfav)
Terminal numbers
8,9097,629 16.8%
Licences
124 116 6.9%
Proprietary security products subscriptions
314 314 0.0%
Dairy data products subscriptions
467 525(11.0)%
Highlights
• Recurring revenue increased 8.8%:
–Royalty revenue growth of 5.8% is a mix of professional terminals (decreased 0.3%)
and retail terminals (increased 93.4%)
–Licencing growth of 16.0% driven by increase in non-display applications from
changing data usage and ability to capture revenue
* 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.

Funds Management
Highlights (continued)
• Net cash flows continue to be strong – YTD $213m
• Continued growth in member numbers / unitholders, positive cash flows and Funds Under
Management (FUM) produced increased operating revenue by 8.0%
Operating revenue
• FUM based revenue positively impacted by:
–Higher average FUM +19.5% (2020 YTD: $3.81b, 2019 YTD: $3.19b) over the period
which is a combination of market returns and positive net cash flows; offset by
–fund expense increases associated with the 8 new Blackrock iShares funds, and the
segregation and unitisation of SuperLife Invest providing access for wholesale clients;
partially reduced by efficiencies from the changed operating model (including
changing custodian for some funds and internalising management of the Cash Funds)
and improvements to supplier arrangements
• Member based revenue has decreased due to a historical pricing provision which more
than offset the increase in investor numbers of 7.8% over the period
• Other revenue has been impacted by the decrease in OCR and the commencement of
stock lending services
Operating expenses
• Personnel costs increases are due to the strengthening of the leadership team (new COO
and CIO) plus growing sales and customer services resourcing to support growth in line
with the strategic focus. Together with impacts arising from the COVID-19 lockdown and
resultant lower levels of annual leave and staff turnover (e.g. increased annual leave and
bonus accruals). There has also been a lower level of capitalised labour
• Professional fees include the costs of investing for growth projects noted in the highlights
section opposite
• Marketing spend has been deferred during the COVID-19 lockdown and recommenced
with the launch of the new ETF funds
NZX HALF YEAR 2020 RESULTS
28
THIS BUSINESS COMPRISES THE SUPERLIFE SUPERANNUATION AND KIWISAVER PRODUCTS AND SMARTSHARES EXCHANGE TRADED FUNDS
Operating Earnings
June 2020
$000
June 2019
$000
Change
Fav/(unfav)
Operating revenue
FUM based revenue (net of fund related expenses)
5,6544,90115.4%
Member based revenue
9151,125(18.7%)
Other revenue
238279(14.7%)
Total operating revenue
6,8076,3058.0%
Total operating expense
3,9373,120 (26.2%)
Operating earnings*
2,8703,185(9.9%)
FTEs
49.847.5(4.8%)
Strategic metrics
June 2020June 2019 Change
Fav/(unfav)
Investors numbers (ETFs and SuperLife)78,60772,9117.8%
Net cash flow – YTD$213 million $175 million21.7%
Fund Under Management (external FUM)$3.95 billion$3.46 billion14.2%
Highlights
• We continue to invest in the Smartshares business for growth and to manage risks
including:
–Initial phase to implement Bloomberg AIM and BSKT (front and middle office
operating system);
–Four new ETF funds – launched on 15 July 2020;
–Set up of stock lending and borrowing services;
–Asia Region Funds Passport application;
–Enhancement of Smartshares digital tools; and
–Brand refresh – is currently being finalised.
* 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.

Wealth Technologies
Highlights
• Successfully migrated a new client in late June 2020 increasing FUA to $3.1 billion
• Further migrations (Hobson and Saturn) are expected in H2-20, with discovery underway
for Craigs further migrations
• Further functionality released into production and expanded resourcing to support growth
Operating revenue
• Administration (FUA based) fees driven by:
–New platform – FUA continues to increase. FUA from a new client was migrated onto
the platform on 29 June 2020; and
–OE platform – FUA stable
• Development fees are specific to customer requirements and deferred income release
started when a customer transitioned
Operating expenses
• Headcount is dependent at any point in time on the levels of:
–platform investment (including migration activity) required for current and future clients;
and
–operational services provided to current clients
• Personnel costs (net of capitalisation) have increased reflecting sales activity, additional
operational staff for new clients and due to impacts arising from the COVID-19 lockdown
and resultant lower levels of annual leave and staff turnover (e.g. increased annual leave
and bonus accruals)
• Capitalised labour at $2.3m (2019: $1.6m) and capitalised overhead being $0.5m (2019:
$0.3m) reflects increased development and migration activity for new clients
• Professional fees include taxation advice (e.g. relating to the IRD’s new Investment Income
Information Reporting requirements that apply from 1 April 2020) and internal control
reviews (e.g. ISAE 3402 Control Readiness Assessment of the new platform)
NZX HALF YEAR 2020 RESULTS
29
THIS BUSINESS IS A PLATFORM THAT ENABLES ADVISERS AND BROKERS TO MANAGE CLIENT INVESTMENTS
Operating Earnings
June 2020
$000
June 2019
$000
Change
Fav/(unfav)
Operating revenue
Administration (FUA based) fees
7787612.2%
Development fees / deferred income release
7177(7.8%)
Total operating revenue
8498381.3%
Total operating expenses
1,3821,024 (35.0%)
Operating earnings*
(533)(186) (186.6)%
FTEs
50.336.0 (39.7%)
Strategic metrics
June 2020June 2019 Change
Fav/(unfav)
Funds Under Administration (FUA)
$3.08 billion $2.11 billion 46.1%
* 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.

Corporate Services
Operating revenue
• Revenue relates to the sublease of spare office space and NZX.com advertising revenue
Operating expenses
• Headcount has moved due to three additional roles in the Securities IT team to deliver
technology solutions to increase trading and clearing system capacity and maintaining
market stability. As well as additional project management resources for energy projects
and a minor decrease in vacancies.
• Personnel costs being higher due to the full year impact of the prior year’s new or
extended roles created to drive strategic execution in for example cyber security, and due
to impacts arising from the COVID-19 lockdown and resultant lower levels of annual leave
and staff turnover (e.g. increased annual leave and bonus accruals). Additionally, there
has been lower capitalisation levels with the deferral of the trading system upgrade due to
the COVID-19 and the focus on increasing trading and clearing system capacity and
maintaining market stability.
• Corporate IT costs include project costs for the Network Transformation to strengthen
NZX’s cyber security, and the efficiency impacts from prior year projects (e.g. through
modernised and rationalised networks and data centre hosting)
• Professional fees include internal audit fees, annual conflicts and board evaluation
reviews. Additional costs relate to the NZX clearing and settlement system (BaNCS)
independent external review of technical issues arising from significantly increased trading
volumes, trade messaging, trade notifications and shareholder balance enquiries
• Marketing activities (such as the investor relations programme and marketing the market)
have been deferred due to COVID-19 lockdown
• Other expenses include premises (other than rent), insurance, directors’ fees, travel,
external audit costs, outsourced payroll system, corporate memberships, and statutory
and compliance costs, net of capitalised overhead
NZX HALF YEAR 2020 RESULTS
30
THIS FUNCTION PROVIDES ACCOMMODATION, FINANCE, HR, LEGAL, IT AND COMMUNICATIONS AND MARKETING SUPPORT TO THE BUSINESS
•Corporate Services provides accommodation, legal, accounting, IT, HR and communications and marketing support to
all divisions (including the Funds Management and Wealth Technologies businesses). Related costs are currently not
recharged to these businesses.
Operating Earnings
June 2020
$000
June 2019
$000
Change
Fav/(unfav)
Operating revenue
Sublease revenue
135141(4.3%)
Other revenue
5445 20.0%
Total operating revenue
1891861.6%
Total operating expenses
8,4467,524 (12.3%)
Operating earnings*
(8,257)(7,338) (12.5%)
FTEs
66.060.3(9.5%)
Highlights
• Currently implementing the recommendations laid out by the Capital Markets 2029 report
that NZX has a role to play in
• Continued focus on fitness and automation, for example our Network Transformation
project will deliver new network, VPN and firewall capabilities
• Adopting a new regulatory operating and governance model, with a separate entity
providing regulatory services with an independent board
* 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.

Appendix 2: operating revenue definitions
NZX HALF YEAR 2020 RESULTS
31
Issuer Relationships
Annual listing fees paid by NZX’s equity, fund and debt issuers is
driven by the number of listed issuers, and equity, debt and fund
market capitalisations as at 31 May each year.
Primary listing fees are paid by all issuers at the time of listing.
The primary driver of this revenue is the number of new
listings and the value of capital listed.
Secondary issuance fees are paid by existing issuers when a
company raises additional capital through placements, rights
issues, the exercise of options, dividend reinvestment plans, or
subsequent debt issues. The primary driver for this revenue is
the number of secondary issuances and the value of secondary
capital raised.
Other issuer services revenue arises from time spent by NZX
Regulation reviewing listing and secondary capital raising
documents, requests for listing rule waivers, and other
significant issuer matters.
Contractual and development revenue arises from the
operation of New Zealand’s electricity market, under long-
term contract from the Electricity Authority, and the Fonterra
Shareholders’ Market, under a long term contract from
Fonterra. Consulting and development revenue arises
on a time and materials basis.
Secondary Markets
Participant services revenue is charged to market participants
(broking, clearing and advisory firms) that are accredited for
NZX’s equity, debt and derivatives market, and includes revenue
that arises from market surveillance recoveries and time spent by
NZX Regulation reviewing participant applications.
Securities trading revenue comes from the execution of trades
on the equity and debt markets operated by NZX. Trading fees
are a variable fee based on the value of the trade.
Securities clearing revenue relates to clearing and
settlement activities, and a range of securities related
services such as stock lending undertaken by NZX’s
subsidiary New Zealand Clearing and Depository
Corporation. The largest component is clearing fees, which
are based on the value of settled transactions.
Dairy derivatives revenue relates to trading, clearing and
settlement fees for trading NZX dairy futures and options. Fees
are largely charged in USD (reflecting the global nature of the
market) per lot traded.
Data & Insights
Royalties from terminals revenuerelate to the provision of
capital markets real time data for display on terminals (retail
and professional).
Subscription and licenses revenuerelate to the provision of
capital markets data to market participants and stakeholders.
Dairy data subscriptions revenuerelate to the sale of dairy
data and analytical products.
Indices revenue relates to the revenue generated on index
licensing in partnership with S&P
Funds Management
Funds under management based revenue relates to variable
Funds Under Management (FUM) fees, which are now received
net of fund expenses for all funds. Fund expenses include a
combination of fixed costs (principally outsourced fund
accounting and administration costs, registry fees and audit
fees), and variable costs proportionate to FUM (principally
custodian fees, trustee fees, index fees, settlement costs and
third party manager fees).
Member based revenue includes fixed membership
administration fees and other member services.
Wealth Technologies
Administration (funds under administration based) feesrelates
to administration fees for the wealth management platforms and
are proportionate to Funds Under Administration(FUA).
Development fees / deferred income release relates to
customisation of the wealth management platform specific
to client requirements.

Appendix 3: Contacts
Mark Peterson
Chief Executive Officer
mark.peterson@nzx.com
+64 21 390 636
Graham Law
Chief Financial Officer
graham.law@nzx.com
+64 29 494 2223
NZX HALF YEAR 2020 RESULTS
32

---

Lift in earnings reflects strong foundations, support for Kiwi companies
• Operating earnings up 21.5% to $17.6m
• Net profit after tax (NPAT) was $9.1m, up 40.9%
• Nearly $6b of capital raised by companies to address COVID-19
• FY2020 operating earnings guidance range maintained at $30.0m to $33.5m

13 August 2020 –
The 21.5% lift in operating earnings
1
to $17.6 million for the six months ended 30 June
2020 reflects the strategic foundations laid down by NZX, and a focus on meeting increased demand from
Kiwi companies needing capital to address the impacts of COVID-19.
Chief Executive, Mark Peterson, said NZX was able to operate throughout this period, as an essential
service, and “the pandemic brought into sharp relief the vital role of New Zealand’s Exchange, and the
value of being listed – ready access to new equity capital”.
Nearly $6 billion of equity was raised by a broad range of companies, from Auckland Airport’s $1.2 billion
and $207 million by Kathmandu to some of NZX’s smaller issuers also being able to effectively access
the market for further capital – with Enprise raising just over $1 million and Cannasouth raising
approximately $6 million.
Mr Peterson said this flowed through into a significant increase in secondary market trading for HY2020,
which is reflected in NZX’s financial results.
“While we have had to adjust to a very different business and working environment and reassess
priorities as a result of COVID-19, our focus has been on meeting increased demand through a time of
need from our customers, and this shows through in the lifts achieved in revenue and operating
performance.”
Net profit after tax for the period (NPAT) was $9.1 million, up 40.9% on HY2019. The Board has declared
an interim dividend of 3.0 cents per share fully imputed, to be paid to shareholders on 18 September
2020. The Dividend Reinvestment Plan is available at a discount rate of 1%.
In reporting NZX’s Interim Results, Mr Peterson said his team were “acutely conscious that we cannot yet
see the full consequences of COVID-19. Significant underlying challenges remain for many companies
locally, from the ongoing global health threat and related operational and financial impacts”.
“This is a time of critical need for our customers and country, requiring further collective action, adaptation
and innovation at pace.” He paid tribute to how the team at NZX has worked as an essential service
through what has been an uncertain and unsettling period.
NZX Chair, James Miller, said NZX’s balance sheet remains conservatively set, with a profile that has
supported corporate stability during the COVID-19 market event.
The foundations set down over the past three years, had also meant that NZX was able to respond
effectively to the challenges COVID-19 presented.
“With the New Zealand Government successfully managing to contain the outbreak of COVID-19, both
institutional and retail investors have strongly backed Kiwi businesses. As we signalled at our Annual
Shareholders’ Meeting in March, NZX’s equity market was open and ready to help companies raise
capital.”

1

Operating earnings are before net finance expense, income tax, depreciation, amortisation and gain and loss on disposal of business
and property, plant and equipment. 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
.

“Companies have understood their options and appreciated the additional flexibility in capital raising rules
provided by NZX, moving rapidly – with the scale of capital raisings multiples larger than the initial months
following the 2008 Global Financial Crisis.”
“This action by companies has undoubtedly helped save many jobs in New Zealand and, to some extent,
softened the economic shock for our country,” Mr Miller said.
ASSISTING COMPANIES IN NEED
The half-year saw a continuation of capital raisings through placements, share purchase plans and rights
issues – including under innovative structures rarely seen in New Zealand, such as the accelerated non-
renounceable entitlement offers (ANREO), enabled under the class relief provided by NZX Regulation.
“This enabled issuers to execute offers quickly during a fast-changing environment,” Mr Miller said.
“Another important element of support for our listed issuers through COVID-19 has been the additional
flexibility we have provided for reporting time-frames.”
The total value of capital raised in the first half of 2020 was up 6.5% to $8.2 billion, with new retail and
wholesale debt listings making up $2.3 billion and the balance being $5.9 billion of secondary equity
capital – mostly to address the impacts of COVID-19.
Against this backdrop, Mr Peterson said NZX was delighted to welcome its first new listing of 2020 with
CSM Group completing the acquisition of Me Today, a New Zealand-founded health and wellness brand
that produces premium quality products, linking supplements and natural skincare.
The debt market started the year well, with issues from BNZ, Housing New Zealand (Kāinga Ora –
Homes and Communities) and the Local Government Funding Agency, prior to several months of
disruption from COVID-19. NZX sees more positive signs in this space for the second half of 2020.
HEALTHY MARKET
Mr Peterson said the health of New Zealand’s capital markets has been critical during the COVID-19
outbreak.
“This has been apparent through the exceptionally high level of activity on our sharemarket, along with
continued strong levels of international interest in our market.” The S&P/NZX 50 has proved a relatively
resilient index – by June 30 it had recovered more than 34% from the low-point of March 2020 and
outperformed other major global indices year-to-date.
The upsurge in market activity saw the daily number of trades average 48,000 across the first six months
of 2020, and by early June the total number of trades had surpassed the full-year 2019. Value traded on
NZX’s markets also set new records with the first half jumping 52.3% to nearly $28 billion, effectively
three months ahead of 2019.
On-market trading continued its positive trend, averaging 62.4% across the half-year. This compares with
33% in 2015 and 54.3% in 2019. This multi-year improvement represents a step-change resulting from
NZX’s focus on market liquidity as a primary measure of market integrity and price transparency and
actions the company has taken to incentivise on-market activity.
RECORD TRADING ACTIVITY
The lift in on-market trades occurred in parallel with an increase in retail investor participation. Mr
Peterson said the popularity of online retail trading platforms is burgeoning and, over the COVID-19 Alert
Levels 3 and Level 4 in New Zealand, helped spur retail participation to levels never seen before in our
sharemarket.

NZX secondary market trading by retail investors totalled around $2.1 billion for March and April 2020, up
135% on the same period in 2019. The number of trades climbed 361% and is up 1,264% over the past
five years, assisting the growth of market liquidity.
Mr Miller said a healthy secondary market is a key goal for NZX.
“We want a dynamic, liquid, competitive, and transparent secondary market – and in recent years we
have made two fundamental changes towards this outcome: removing the fixed fee component on trades
in favour of a value-based fee structure, and introducing a new rules framework to support participants
and broaden investment in markets.”
However, Mr Miller said the marked acceleration in the growth in trading activity – with daily trading
volumes peaking at almost six-fold the 2019 daily average – exposed some stresses within specific
elements of the market infrastructure, particularly on certain messaging components of NZX’s clearing
and settlement system.
Although this huge increase in market activity is a good problem to have, to reflect the seriousness taken
with issues related to NZX’s market systems, Mr Miller said NZX had commissioned an independent
review of the technical issues and the underlying causes. This review has sought feedback from market
participants and has received extremely strong engagement across all aspects of the market. Mr Miller
thanked those who have contributed to the process.
“We look forward to the report, which is imminent, and engaging on the recommendations,” he said.
MILESTONES FOR GROWTH
Following the large boost last year in the assets held in the depository, NZX saw further growth in the first
half, with total value closing at a new high over $3.7 billion, reflecting increasing values from Sharesies
and BNP Paribas Securities.
Data & Insights achieved a strong lift in revenue, up more than 10% to $7.0 million, largely due to
royalties for retail data access, as virtual (non-display) use increased 93% year-on-year. Client licence
arrangements have improved and back-dated licencing revenue significantly higher due to a greater
number of audit closures.
Volatility from COVID-19 seen in equity markets also flowed into dairy markets with the total volume of
lots traded up nearly 10% to 205,626. The first quarter of 2020 was the largest trading quarter since the
market was launched. Volumes of NZ Milk Price derivatives continued to grow with lots traded up 80% on
the prior period, and the average daily value of trades reached a record $4 million in Q2 2020.
While market volatility presented challenges for NZX’s funds business, Smartshares, net investor cash
flows were positive 5.4% for the period. As anticipated, there was an upswing in switching activity
between funds, however withdrawals were relatively low. Having peaked near $4.1 billion in February,
Funds Under Management dropped in March and April to $3.2 billion before recovering much of the lost
ground to finish the half at $3.95 billion.
NZX Wealth Technologies has maintained its growth trajectory and focus on acquiring and transitioning
customers, with Funds Under Administration growing 46.1% to $3.08 billion at half year. A migration
project for JBWere was completed in June 2020 and the onboarding of new customers, Hobson Wealth
Partners and Saturn Advice, to NZXWT’s market-leading platform is in progress.
FY2020 EARNINGS GUIDANCE
NZX is maintaining its FY2020 operating earnings guidance of $30.0 million to $33.5 million. NZX notes
that, based on the performance to date, there is a greater expectation for a full year outcome to be
towards the top end of the range.

This guidance is subject to market outcomes for the remainder of the year, including total capital raised,
secondary market trading and clearing values, derivatives volumes traded, and funds under management
and administration growth. NZX notes the global health and macroeconomic environment remains
unusually volatile and guidance assumes no material adverse events, significant one-off expenses, major
accounting adjustments or other unforeseen circumstances.

ENDS.

For further information, please contact:
Media – David Glendining 027 301 9248
Investors – Graham Law 029 494 2223

About NZX
For more than 150 years we have been creating opportunities for Kiwis to grow their personal wealth and
helping businesses prosper. As New Zealand’s Exchange, we are proud of our record in supporting the
growth and global ambitions of local companies.
NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support the growth
of our markets, we provide trading, clearing, settlement, depository and data services for our customers.
We also own Smartshares, New Zealand's only issuer of listed Exchange Traded Funds (ETFs), and
KiwiSaver provider SuperLife. NZX Wealth Technologies is a 100%-owned subsidiary delivering rich
online platform functionality to enable New Zealand investment advisors and providers to efficiently
manage, trade and administer their client's assets. Learn more about us at: www.nzx.com

---

NZX Limited – 2020 Interim Report & Results
Dear Shareholder,
On behalf of the NZX Board, I am pleased to share with you our 2020 Interim Report and Financial Results for
the six months ended 30 June 2020, which were released today and are available to read online here.
Highlights of the half-year include:
• Operating earnings
1
up 21.5% to $17.6m
• Net profit after tax (NPAT) was $9.1m, up 40.9%
• FY2020 operating earnings guidance range maintained at $30.0m to $33.5m
As Chair of NZX, I am tremendously proud of the way our team worked as an essential service through this
uncertain and unsettling period dominated by COVID-19. This pandemic brought into sharp relief the vital role of
New Zealand’s Exchange, and the value of being listed.
We signalled at our Annual Shareholders’ Meeting in March that our equity market was open and ready to help
Kiwi companies raise capital. They have understood their options and appreciated the additional flexibility in
capital raising rules provided by NZX. This enabled issuers to execute offers quickly during a fast-changing
environment.
With the New Zealand Government successfully managing to contain the outbreak of COVID-19 to date, both
institutional and retail investors have strongly backed Kiwi businesses.
Nearly $6 billion of equity was raised by a broad range of companies – to address growth opportunities and repair
balance sheets, from Auckland Airport’s $1.2 billion and $207 million by Kathmandu to some of NZX’s smaller
issuers also being able to effectively access the market for further capital – with Enprise raising just over $1
million and Cannasouth raising approximately $6 million.
This has also flowed through into a significant increase in secondary market trading for HY2020 with new highs in
trading volumes, value and retail participation – reflected in NZX’s financial results.
Operating earnings for the six months were up 21.5% to $17.6 million. Net profit after tax for the period (NPAT)
was $9.1 million, up 40.9% on HY2019.
Your Board has declared an interim dividend of 3.0 cents per share fully imputed, to be paid to shareholders on
18 September 2020. Our Dividend Reinvestment Plan has proven popular with strong uptake by retail investors,
and we are continuing to offer this option – the plan document is available here.
Shares issued under the dividend reinvestment plan will be issued at a 1% discount.

1
Operating earnings are before net finance expense, income tax, depreciation, amortisation and gain and loss on disposal of
business and property, plant and equipment. 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.

FY2020 EARNINGS GUIDANCE
NZX is maintaining its FY2020 operating earnings guidance of $30.0 million to $33.5 million. Your Board notes
that, based on the performance to date, there is a greater expectation for a full-year outcome to be towards the
top end of the range.
2

Thank you again for your support as a shareholder of NZX.

James Miller
CHAIR

2
This guidance is subject to market outcomes for the remainder of the year, including total capital raised, secondary market
trading and clearing values, derivatives volumes traded, and funds under management and administration growth. NZX notes
the global health and macroeconomic environment remains unusually volatile and guidance assumes no material adverse
events, significant one-off expenses, major accounting adjustments or other unforeseen circumstances.

---

Results Announcement
13 August 2020

Results for announcement to the market
Name of issuer NZX Limited
Reporting Period 6 months to 30 June 2020
Previous Reporting Period 6 months to 30 June 2019
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$38,418 16.9%
Total Revenue $38,418 16.9%
Net profit/(loss) from
continuing operations
$9,083 40.9%
Total net profit/(loss) $9,083 40.9%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.03000000
Imputed amount per Quoted
Equity Security
$0.04166666
Record Date 4 September 2020
Dividend Payment Date 18 September 2020
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
($0.0145) ($0.0175)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results please refer to the market
release, Interim Report, and investor presentation attached.
Authority for this announcement
Name of person

authorised
to make this announcement
Graham Law
Contact person for this
announcement
Graham Law
Contact phone number +64 29 494 2223
Contact email address graham.law@nzx.com
Date of release through MAP

13 August 2020

Unaudited financial statements accompany this announcement.

---

Distribution Notice
13 August 2020

Section 1: Issuer information
Name of issuer NZX Limited
Financial product name/description Ordinary shares
NZX ticker code NZX
ISIN (If unknown, check on NZX
website)
NZNZXE0001S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date Close of trading on: 04/09/2020
Ex-Date (one business day before the
Record Date)
03/09/2020
Payment date (and allotment date for
DRP)
18/09/2020
Total monies associated with the
distribution
1

$8,321,247 (based on number of shares on issue at the
date of this form)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.04166666
Gross taxable amount
3
$0.04166666
Total cash distribution
4
$0.03000000
Excluded amount (applicable to listed
PIEs)
-
Supplementary distribution amount $0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed X
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208334
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
1.0%
Start date and end date for
determining market price for DRP
Close of trading on:
02/09/2020
Close of trading on:
9/09/2020
Date strike price to be announced (if
not available at this time)
Close of trading on: 10/09/2020
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
07/09/2020, 5pm (New Zealand time)
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
NZX Chief Financial Officer Graham Law
Contact person for this
announcement
NZX Chief Financial Officer Graham Law
Contact phone number 04 498 2271
Contact email address
graham.law@nzx.com
Date of release through MAP

13/08/2020

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

NZX fully operational – announcement re COVID-19 Connectivity Issue

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

Other issuers discussed similar conditions around this time

Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.

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