NZX Full Year 2020 Results & Annual Report Published

Powered Up
NZX Annual Report
2020

About this report
For more than 150 years we have been enabling Kiwi
success – creating opportunities for New Zealanders 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.
Our 2020 Annual Report “Powered Up” recognises
the importance of aligning the way we do business with
the expectations of our key stakeholders to create
sustainable value – for our shareholders, across the
capital markets ecosystem, for our customers and
New Zealand. This report includes our full Financial
Statements (and Notes to the Financial Statements) for
the year ended 31 December 2020, along with
commentary on the company’s financial results and
operational performance.
The business overview (Who we are) and our
business model (How we create value) provide
information about NZX, our strategic goals and the
pillars that are fundamental to sustaining and growing
value into the future. The Corporate Governance
section of this report describes how we set the
objectives and direction for the business, and the
framework for identifying and managing risks is
outlined in the Risk Report. Our corporate governance
policies are available online at: https://www.nzx.com/
about-nzx/investor-centre/governance/policies. NZX
Limited is registered with the New Zealand Companies
Office and our New Zealand Business Number (NZBN)
is 9429036186358.
This report is dated 17 February 2021 and is signed
on behalf of the Board of NZX Limited by Chair, James
Miller, and Chair of the Audit and Risk Committee,
Lindsay Wright.

Contents
Our performance this year 8
Who we are 10
Letter from the Chair 12
Chief Executive’s update 16
Our Board 20
Our Leadership Team 22
How we create value 26
– Our Customers 28
– Strategic Partnerships 30
– People & Capability 32
– Sustainable Environment 34
– Market Performance 36
Corporate Governance 41
Risk Reporting 51
Management Commentary 54
Directors’ Responsibility Statement 60
Financial Statements 61
Independent Auditor’s Report 100
Statutory Information 105
Getting in touch 112
NZX Annual Report 2020
1

Supporting
NZX Annual Report 2020
2

As New Zealand’s Exchange,
we are driven by a big ambition
for our country. We take pride
in helping to support and drive
a healthy economy, thriving
businesses and helping Kiwis
succeed. Every day our people
and passion are focused on
our role delivering information,
insights and the tools needed to
connect investors with the right
investment opportunities.
NZX Annual Report 2020
3

Ambition
We enable investors at home
and around the world to
grow and protect their wealth
by accessing investment
opportunities in the companies
and industries that power our
economy and compete on
the world stage. We operate
markets that enable businesses
to access the capital they need
to keep growing, creating new
jobs and solutions that are
shaping the future.
NZX Annual Report 2020
4

Ambition
NZX Annual Report 2020
5

Resilience
We’re a Kiwi company working
hard to grow New Zealand’s
economy, supporting the
resilience and long-term success
of our customers as a strength
for our country.
NZX Annual Report 2020
6

Our thanks to Auckland International Airport (NZX: AIA) for the use
of this photograph. The New Zealand travel and tourism sector faced
some significant challenges in 2020 and we were pleased to be able to
support the need for equity capital, which has never been more acute.
NZX Annual Report 2020
7

Our performance this year
Data highlighted on pages 8 to 11 is “for the financial year ended 31 December
2020”, or “as at 31 December 2020” (as applicable). Percentage changes
represent the movement from 2019 to 2020.
* Operating earnings are before net finance expense, income tax,
depreciation, amortisation, loss on disposal of business and property,
plant and equipment, and gain on lease modification. 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 on page 55 of this Report.
DAIRY DERIVATIVES LOTS TRADED
360,887
0.5
%
TOTAL CAPITAL RAISED (new + secondary)
5.5
%
17. 6 b
DATA & INSIGHTS REVENUE
8.1
%
16 .1m
7.19 b
FUNDS UNDER ADMINISTRATION
213.4
%
TOTAL VALUE TRADED
41.8
%
53.7b
FUNDS UNDER MANAGEMENT
28.0
%
5.08b
DIVIDEND (FULLY IMPUTED)
6 .1
cents per share
NZX Annual Report 2020
8

TRADED VALUE
0
1
2
3
4
5
6
7
8
DecNovOctSeptAugJulJunMayAprMarFebJan
0
15,000
30,000
45,000
60,000
75,000
90,000
105,000
120,000
0
15,000
30,000
45,000
60,000
75,000
90,000
105,000
120,000
Value Traded
Daily Trades
2019 Value Traded2020 Value TradedDaily Trades
NET PROFIT AFTER TAX
2 0 .1
%
17.6m
34.4m
OPERATING EARNINGS
*
9.7
%
NZX Annual Report 2020
9

Who we are
MEASURABLE PROGRESS ON DIVERSITY
AND INCLUSION
Our commitment to building a diverse workforce and an
inclusive workplace gained new ground in 2020. This is
reflected in our Chief Executive’s participation in
Champions for Change, the revised Diversity & Inclusion
Policy, and enhanced transparency of our performance in
this area. NZX also announced a commitment to NZ
Living Wage for all employees.
NZX leaders took a focused look at gender pay
equality in 2020 and through the annual remuneration
review process made changes required to achieve pay
equality – eliminating pay gaps in like-for-like roles across
our entire organisation. This is a significant step toward
equitable opportunities for our workforce and
sustainably resourcing our business.
Our attention now turns to the structural elements that
drive the remaining gender pay gap, which we will
improve with continued efforts to increase the number
of women in senior roles.
Other Diversity & Inclusion objectives for 2020
included a commitment to youth employment – we
recognise the responsibility we have to help build the
financial services workforce of tomorrow. This objective
was met through recruitment activity including the
Graduate Programme where our 2020 intake is making
a great contribution already. We have a diverse and
talented group of graduates in the February 2021 intake
for this three-year programme. Progress toward
broadening diversity measures, and strengthening how
we measure our recruitment pipeline, is ongoing and will
be continued in 2021.
SMARTSHARES
79, 871
Investors in Smartshares products
(directly and indirectly), with total
Funds Under Management of $5.08b
NZX WEALTH TECHNOLOGIES
28 ,18 5
Investor portfolios, with total
Funds Under Administration of $7.19b
DATA & INSIGHTS
8,720
Data terminals
SECONDARY MARKETS
1 2 . 1 m
Trades in 2020, with a total value of $53.7b
Listed equity, debt and funds
232b
TOTAL MARKET CAPITALISATION
ISSUER RELATIONSHIPS
334
Total listed equity, debt, funds & other securities
10
NZX Annual Report 2020

Full-time equivalent employees
(excluding contractors & consultants)
257
New Zealand
NZX Offices
Head Offices of
NZX-listed Companies
Global affiliations
ASX – Sydney
HKEX – Hong Kong
LSE – London
NASDAQ – New York
SGX – Singapore
TMX – Toronto
SPSE – Suva
SSE – Shanghai
WFE – World Federation
of Exchanges
SSE – Sustainable Stock
Exchanges Initiative
EEX – European Energy Exchange
Gender Diversity All Employees
44%39%
61%
56%
Female employees
Male employees
Female managers
Male managers
Gender Diversity Officers & Board
3
2
6
8
Female officers (2019: 3)
Male officers (2019: 8)
Female directors (2019: 2)
Male directors (2019: 6)
Employees by Business Unit
131.3
17.5
55.7
52.8
NZX Markets
NZ RegCo
NZXWT
Smartshares
New Zealand presence connecting a world
of investments to NZ businesses
Employee headcount (permanent and fixed term,
excludes parental leave)
55
3 1
78
72
51
20-29 years
30-39 years
40-49 years
50-59 years
60-69 years
70-79 years
Investor portfolios, with total
Funds Under Administration of $7.19b
11
NZX Annual Report 2020

James Miller
NZX Chair
NZX Annual Report 2020
12

Letter from the Chair
2020 was a difficult year for many sectors of
the economy, but the challenges presented
by COVID provided the opportunity for
New Zealand’s capital markets to provide
essential capital funding to businesses in need.
Never before has the value of having access to capital
been so evident for New Zealand businesses. We have also
seen the most significant re-engagement with equities as
an investment class in the past 30 years.
With a record level of activity in the market and a
healthy number of new listings, FY2020 showcased the vital
role of capital markets to a well-functioning and resilient
economy. Our financial results reflect these factors.
The S&P/NZX 50 (Gross) finished 2020 at 13,092 – up a
further 14% on the substantial lift we saw the previous year.
What has been most pleasing is the repositioning of
NZX and our strategic direction under Mark Peterson’s
leadership. This has been recognised by the market with
strong appreciation in the NZX share price, and a total
shareholder return (TSR) of 50.3% for the year ended
31 December 2020.
I want to thank our shareholders for their patience
and support during the early stages of repositioning
the company.
This has been another year of financial delivery, and the
environment has supported the growth in NZX’s operating
earnings to a new high of $34.4 million, slightly above our
guidance range.
Your Board has declared a final dividend of 3.1 cents
per share to be paid on 26 March 2021, contributing to a
FY2020 dividend of 6.1 cents per share, fully imputed.
I especially want to acknowledge the effort and
flexibility from our people. The year has been incredibly
challenging and the outcomes for our customers and
ourselves have come from teamwork and collaboration
across the entire capital markets ecosystem.
It is important to note that 2020 also provided NZX with
some challenges which has given us pause for thought in
how we can improve the way we manage risk and embed
the learnings we gained for the future.
Emerging stronger
NZX Annual Report 2020
13

levels, and the benchmark S&P/NZX 50 ended 2020 in
record territory – delivering once again another strong
result particularly relative to other global markets.
I am also pleased to report that we have been busy
ringing the listing bell this year to welcome a new cohort of
companies to New Zealand’s Exchange.
The support and innovation across the capital markets
ecosystem from lead managers, banks and advisers
behind new listings and secondary issuance has been
especially encouraging.
As part of our refreshed strategy, we have made
ecosystem development a priority through our Head of
Issuer Relationships, Sarah Minhinnick. This includes
dedicating more resources into deepening our pool of
prospects – along with widening and lifting the promotion
and awareness of the pathways for companies to list.
During the year, we saw the first listings under the new
direct and foreign exempt rules. We expect direct listings
to now be a popular pathway for accessing the benefits of
the listed market, with evidence in the very recent listing of
Third Age Health.
At a time when we are investing for growth, it is
extremely satisfying to see our Smartshares and Wealth
Technologies businesses tracking ahead of our
expectations, topping $5 billion FUM (Funds Under
Management) and $7 billion FUA (Funds Under
Administration) respectively. This gives us real confidence
not only in these businesses delivering value for NZX
shareholders but also – as we focus on broader market
development initiatives, including those identified in the
Capital Markets 2029 report – in the role they can play in
further developing our capital markets.
The partnership we are exploring with SGX, with regard
to our dairy derivatives suite, is also a tangible example of
the potential to commercialise NZX’s international alliance
strategy to propel future growth.
Operational challenges
NZX did not expect the scale of escalation in trading
activity during the COVID-19 March/April lockdown period
that peaked at six times prior year average daily volumes.
We have publicly acknowledged that we did not meet
our own high standards in certain areas of our technology
systems, and also with regard to the unrelated cyber-
attacks in August that fundamentally changed expectations
about this sort of risk for the industry and for New Zealand.
We know the integrity and performance of our
Information Technology (IT) systems is vital to all market
Participants along with the ongoing need to plan for rising
demands and risks.
The NZX Board acted decisively post these events. We
commissioned two separate external reviews, from EY and
InPhySec, and are taking forward and will act on their
recommendations to ensure our IT and cybersecurity
processes are stable and secure. We shared our external
reports with the FMA.
Auckland Real Estate (NZX: AKL) welcomed to our Exchange under the
new foreign exempt listing rules.
“The NZX has enabled Kiwi companies to
access billions of dollars of much-needed
equity and debt capital, giving them
strength in a very tough and uncertain
economic environment.”
Separate regulatory model
Given the significance of the establishment of NZ RegCo,
I wanted to begin by acknowledging this successful
transition to a new regulatory model for NZX’s listed
markets. NZ RegCo was launched in early December,
completing the structural separation of the Exchange’s
commercial and regulatory roles.
Along with the outstanding support from the team, I
am also grateful to Elaine Campbell for the expertise she
applied to breathing life into NZ RegCo – a ground-
breaking development in the 150-year history of
New Zealand’s capital markets – in terms of the structure,
governance and the operating model. We also had
positive engagement from the Financial Markets Authority
(FMA) and the Reserve Bank.
Headed by Chief Executive, Joost van Amelsfort,
the new regulatory operating and governance model
enhances independence of this function, is less complex
and aligns with global best practice. NZ RegCo is
governed by an independent establishment board chaired
by Trevor Janes, with board members Elaine Campbell,
Mike Heron QC, John Hawkins and Annabel Cotton.
Enabling strength and success
The NZX has enabled Kiwi companies to access billions of
dollars of much-needed equity and debt capital, giving
them strength in a very tough and uncertain economic
environment. Trading volumes and value reached new
NZX Annual Report 2020
14

In November last year we also announced the
permanent establishment of a Technology Committee to
provide specialist governance oversight of the role and use
of technology in executing NZX’s strategy. I would
particularly like to thank the members of this specialist
subcommittee of the Board, for their attention to what has
been a considerable workload since the committee was
established as an immediate measure in April 2020.
We have also confirmed commitment to create an
industry-wide IT working group to improve engagement
and communication with the wider market ecosystem on
technology matters.
NZX has recognised the need for further technology
investment above our current programme of work to
enhance stability and resilience and deliver other
improvements, confirming additional spend on people
and systems in 2021.
NZX has closely reviewed the findings of the Market
Operator Obligations Targeted Review undertaken by FMA.
NZX accepts that we did not meet the high standards we set
for ourselves in key areas of technology resources. We also
agree that improvements are required and we are
committed to delivering these improvements via an action
plan that will be agreed with the FMA.
Our relationship with the regulator is important to us,
and we will be working constructively with the FMA through
this important process.
Outlook for 2021
NZX expects full year 2021 operating earnings to be in the
range of $31.5 million to $35.5 million, with guidance
subject to market outcomes, particularly with respect to
market capitalisation, total capital raised, secondary
market value and derivatives volumes traded, funds under
management and administration growth and
technology costs.
Additionally, this guidance assumes no material
adverse events, significant one-off expenses, major
accounting adjustments, other unforeseeable
circumstances, or future acquisitions or divestments.
NZX’s FY2021 guidance incorporates the expected
incremental technology costs in addition to changes to
NZX’s ongoing structural technology costs that have
already been implemented.
Leadership continuity
In December we announced that the NZX Board had
exercised the option to extend Mark Peterson’s
employment term as Chief Executive to April 2024. The
NZX Board’s decision to exercise this option early reflects
the desire for stability in executive leadership. At a time
when we are looking at the further evolution of our
governance to align with NZX’s strategy, and also Board
succession, having this continuity of leadership will be vital
to maintaining strong momentum in the business.
Our company has made significant progress over the
first three years of Mark’s tenure – particularly in cultivating
a culture to support strategic delivery, along with strong
financial performance (with a TSR of 22% per annum).
Today we have a more robust NZX that has real impetus
and is creating sustainable value for our shareholders.
We have also taken some very important steps towards
our long-term goal of becoming a more vibrant and diverse
participant in New Zealand’s capital markets ecosystem.
I want to also pay tribute to Mark’s leadership in
genuinely caring for our people through these challenging
and uncertain times, while keeping an unwavering focus on
the needs of our customers.
A special thanks also to my Board, who have shouldered
an immense workload through the year – in very trying
circumstances where governance has been to the fore.
There have been some important learnings in 2020 but,
as Chair, I could not be more proud of what our team at
NZX has delivered for our shareholders, our customers and
our country.
James Miller
NZX Chair
“Today we have a more robust NZX that has
real impetus and is creating sustainable value
for our shareholders. We have also taken
some very important steps towards our long-
term goal of becoming a more vibrant and
diverse participant in New Zealand’s capital
markets ecosystem.”
NZX Annual Report 2020
15

Fuelling
our momentum
Chief Executive’s update
2020 was an extraordinary year for NZX.
It was not the year we planned for, but our
performance reflects the strength we have
built in our business through deliberate
strategic change.
The momentum that has been building over the last
three years was accelerated by the impact of COVID-19.
This helped produce a step change in growth for NZX,
albeit the rapid expansion of trading volumes caused
challenges to parts of our technology infrastructure.
This growth is reflected in our operating results and
financial performance for FY2020 – and we have taken the
lessons from the operational challenges, acting on them
to improve.
Operating earnings (EBITDA) of $34.4 million was up
almost 10% on the growth we achieved in FY2019, with
the operating margin at 43.9%.
Revenue growth came from across our three main
business areas – Capital Markets, Smartshares and NZX
Wealth Technologies. Securities trading and clearing
revenues were up strongly, with listing and data revenues
also showing good growth. Higher costs in 2020 were
driven by increased spend in technology, alongside
investing in our people to support the growth and sales
opportunities that are being created.
Net profit after tax for the year (NPAT) was
$17.6 million. Capital expenditure continues to be
focused on NZX Wealth Technologies’ core platform
and NZX’s trading system upgrade, together with
strengthening our cybersecurity protection.
We have detailed our financial results in the
Management Commentary (on page 54).
A year of records
Global volatility, a low interest rate environment and
greater post-COVID interest in investing helped push
trading volumes to record levels.
By June 2020 NZX’s secondary markets had eclipsed
the total number of trades executed for the full year 2019
and by early September the total value traded had also
surpassed 2019.
The health and vitality of our markets in 2020 is
reflected in the 149% increase in the volume traded,
and 42% increase in the value traded for the full year
to $53.7 billion compared with $37.8 billion the
previous year. This increased activity did pose some
challenges for NZX.
We laid the foundations for this progress in our 2017
strategy to deliver improved liquidity to the market –
removing the fixed-fee elements of trade fees, improving
rules to support price transparency and attracting new
Participants and investors to the NZX.
This has opened up access to a broader range of
investors, lifted on-market activity and delivered improved
liquidity to our Exchange.
Alongside the increase in value traded across the NZX,
we continue to observe growth in on-market liquidity
levels which have now normalised above 60%.
While the value of retail trading increased from
$4.1 billion to $9.7 billion, the overall share of trading by
investor type during this period remained reasonably
consistent with historical averages.
The value of traded liquidity originating from retail,
institutional and proprietary sources accounted for
approximately 18%, 70% and 12% respectively. This is
encouraging as it indicates that growth in the market was
across all investor segments.
Together with the growth in market liquidity we have
also seen a significant expansion of our Depository
business, with assets under custody up 38% for the year to
$4.8 billion. This has been an important strategic focus and
the continued growth has increased efficiencies for the
New Zealand market and enabled NZX to participate in the
final stage of the securities settlement value chain.
NZX Annual Report 2020
16

Mark Peterson
NZX Chief Executive
NZX Annual Report 2020
17

travel restrictions created an immediate need for
businesses to either strengthen their balance sheets or to
raise capital to take advantage of the opportunities that
were presenting themselves.
In our 2020 Interim Results we reported a total of more
than $5 billion of capital raised on the secondary market in
the 90 days from the beginning of April – dwarfing capital
raisings in the early months following the 2008 Global
Financial Crisis.
This need, and the greater attractiveness of equity
funding, has seen the value of capital raised for the year
total $17.6 billion – more than 50% above our expectations
for 2020.
The price volatility created by COVID-19 did impact
new debt market issuance materially from March through
to July. However, the market came back strongly from
August through to December with 12 new securities
issued, $2.7 billion of debt issuance raised, and
$825 million of this was in green bonds issued by Mercury,
Argosy and Auckland Council. We also welcomed three
new debt issuers to the market being Kiwibank, Ryman
Healthcare and Oceania Healthcare.
The current environment has emphasised the strong
value of an NZX listing and the ready access to equity or
debt capital that listing provides. Our sales and marketing
focus has been on promoting the market to companies
who may benefit from having access to capital or to owners
who may want to release capital for other purposes. We
now have a strong pipeline of potential listings across
equity, debt and funds.
Since the release of our first-half results in August when
we reported on the reverse listing of Me Today, we have had
the opportunity to welcome five new companies to the NZX.
The spectrum of these mirrors the pathways we have
been opening up for issuers – from the Rua Bioscience IPO
(RUA), to Radius Healthcare (RAD) as the first under new
direct listing rules, along with the ASX-listed Auckland Real
Estate (AKL) under our new foreign exempt provisions and
Harmoney (HMY) a new dual listed IPO. The final listing for
2020, New Zealand Rural Land Co (NZL) was another NZX
Following a COVID-related delay to the Trading System
Upgrade and the recent decision to undertake additional
market-wide testing, the project is now scheduled to go
live later in the first half of 2021. This will enable market
functionality in line with other international markets, and
will support the subsequent launch of our exchange-based
mid-point pricing trading venue, which should further lift
on-market traded liquidity.
Further technology investment
As reported in our Interim Results and referenced by the
Chair, the Board-commissioned reports from EY and
InPhySec identified the need for further technology
investment in 2021 to enhance the stability, resilience and
capacity within aspects of our technology framework.
This will further build on the $12 million technology
infrastructure modernisation programme underway since
2017, which has focused on clearing, network infrastructure
and the trading system along with capacity improvements.
This additional capital investment programme will be
led by our incoming Chief Information Officer, Robert
Douglas, who will also be spearheading NZX’s
engagement with market Participants and the market
ecosystem to deliver a technology roadmap for the
capital markets.
Since the technology disruptions in March and April,
NZX has made changes to increase the resilience and
stability of its systems. We have also strengthened our
Distributed Denial of Service (DDoS) defences following
the cyber-attacks.
As noted by the Chair, the NZX Board considers the
investment required to deliver on the recommendations of
the reports from external reviewers will have an ongoing
impact on technology costs.
Focus on customers
While we had a strong tail-wind during the year, NZX’s
results in 2020 have come from the strategic platform we
now have in place.
Throughout this extraordinary year, we have had a
unique opportunity to demonstrate to other businesses
the value of having access to capital through the
public markets.
The environment in the wake of the COVID-19
lockdown in New Zealand alongside the international
The current environment has emphasised the strong value of an NZX
listing and the ready access to capital that listing provides.
“We laid the foundations for this success
in our 2017 strategy to deliver improved
liquidity to the market – removing the fixed-
fee elements of trade fees, improving rules
to support price transparency and attracting
new Participants and investors to the NZX.”
NZX Annual Report 2020
18

IPO providing exposure to the rural sector for investors to
be able to invest in the land that underpins this country’s
strength and expertise in farming and food production.
All of this activity has highlighted that the listed market
can deliver reliable, liquid, and open access to investment
in New Zealand for all investors, so everyone can support
and benefit from the success of Kiwi companies.
NZX has also been considering the next stage of its
strategy. As part of this, we have explored the business
models of other exchanges globally and how those might
apply here in New Zealand. We will continue to build a
more diversified exchange.
The power of partnership
Beyond our operational focus in New Zealand, we
maintained impetus in 2020 on our global strategy to
secure partnerships that offer complementary capabilities
and strength as we grow NZX’s business.
As reported at the half year, BNP Paribas is expected to
become a General Clearing Participant during the first half
of 2021. This is a positive signal about the potential in our
markets, to have another high-quality global bank, with
a strong regional clearing footprint, strengthening
its commitment to assist in growing New Zealand’s
capital markets.
NZX has also signed a Heads of Agreement with the
Singapore Exchange in relation to a global partnership to
grow NZX’s dairy derivatives market together.
We are also continuing to work in partnership with the
European Energy Exchange to develop the managed
auction service for the New Zealand Emissions Trading
Scheme (NZ ETS) – one of the Government’s main tools for
meeting domestic and international climate policy targets.
Following the successful bid to the Ministry for the
Environment, we have been engaging Participants in the
next steps of progress with the managed auction platform,
which will be completed for the first scheduled NZ ETS
auction on 17 March 2021.
As we continue to focus on products that deliver clear
value for prioritised customer segments, our Data &
Insights business had another year of strong growth with
revenue up 8%, coming from both retail and professional
terminal users. Subscription and licence revenue also grew
from increased client data usage. We are also pleased to
report an excellent response to the research solution we
have implemented, supplied by Smartkarma specifically to
support coverage of small cap stocks.
Smartshares continues to grow. Funds Under
Management increased to more than $5 billion at year-end,
up 28% and exceeding the 2023 goal we set under our
growth strategy.
During the year, we attracted more than $800 million in
net investor cash flows. Key initiatives included the launch
of the Smartshares Core Series, with New Zealand’s lowest
cost fund tracking the S&P/NZX 50, and Select KiwiSaver
our first third-party hosted scheme.
As the market leader in Exchange Traded Funds (ETF),
it has been encouraging to see some institutional investors
starting to move into passive investment products through
the Smartshares ETFs and its unlisted passive products –
mirroring global trends.
A range of leading NZ wholesale and advisor platforms
now utilise Smartshares, enabling financial advisors to
access our unlisted passive funds for the first time.
Our NZX Wealth Technologies (NZXWT) business
recorded growth of more than 210% this year with Funds
Under Administration reaching more than $7 billion. The
successful onboarding of Hobson Wealth Partners,
completed in November, added $3 billion. We now have
more than 28,000 portfolios being managed through our
wealth management platform.
The addition of Hobson Wealth is a significant
milestone and reflects confidence that we have a path for
continued long-term growth – following JBWere and
Saturn Advice joining Craigs Investment Partners on
NZXWT’s new platform this year. Late in the year, NZX
Wealth Technologies was also proud to announce that it
retained the Public Trust business after participating in a
competitive process.
NZXWT is currently engaged with a number of new
prospects for project activity, and expects to see
continued growth again in 2021.
Planning for the new normal
2020 created significant opportunities and learnings for
NZX, closely aligned with our purpose of “Helping build
New Zealand’s tomorrow”. We have been able to reset our
business for the ‘new normal’ and, with this performance,
refocus our business with both an operational excellence
and a growth mindset.
Our team has been energised by the vital role we have
been able to play in supporting others and ensuring the
Exchange and our country can successfully adapt and
move forward.
In the year ahead, we will be building on the lessons
from an extraordinary 2020 to further strengthen our
infrastructure and drive growth and health in our markets.
We are also aiming to leverage our funds management and
wealth technology businesses, which we see as core to
market development and future revenue generation.
Thank you again to our customers for your support, our
business partners for working shoulder-to-shoulder with
us, and particularly to our team at NZX.
We have all been put to an enormous test this year and
have shown that we are absolutely up to the challenge.
Mark Peterson
NZX Chief Executive
NZX Annual Report 2020
19

Our Board
James Miller
Chair
James was appointed as a
director in August 2010,
and NZX Chair in May 2015.
He has spent 14 years
working in the share-
broking industry, with
Craigs Investment Partners,
ABN AMRO, Barclays de
Zoete Wedd and
ANZ Securities.
He is a qualified
chartered accountant and
is a Fellow of the New
Zealand Institute of
Chartered Accountants, a
Certified Securities Analyst
Professional, and a member
of the Institute of Directors
in New Zealand.
James is deputy chair
of the Accident
Compensation
Corporation, a director of
Mercury NZ, New Zealand
Refining Company and
Vista Group, and a former
director of Auckland
International Airport. He
was an inaugural director
of the Financial Markets
Authority, and previously a
member of the ABN AMRO
Securities, INFINZ and
Financial Reporting
Standards Boards.
Frank Aldridge
Director
Frank was appointed as a
director in May 2017.
Frank has an extensive
understanding of New
Zealand’s capital markets
having spent more than
20 years working for
Craigs Investments
Partners where he is now
Managing Director.
He is currently Chair of
Australian-based Wilsons
Advisory and Stockbroking,
former member and Chair
of New Zealand Securities
Association, and sits on
several of Craigs
Investment Partners’
subsidiary Boards.
Frank is an accredited
NZX Adviser, Authorised
Financial Adviser (AFA),
and a Chartered Member
of the Institute of Directors.
Nigel Babbage
Director
Nigel was appointed as a
director in December 2017.
Nigel has spent more than
35 years working in
financial and capital
markets locally and
globally, and brings to NZX
extensive clearing and
derivatives experience.
Nigel previously held
executive roles with British
Petroleum (now BP) and
Citibank, managing the
New York currency
derivatives desk, and
worked for BNP Paribas,
where he took on the joint
role of Global Head of
Currency Derivatives
Trading and Head of North
American Foreign
Exchange. He served on
the Foreign Exchange
Committee of the Federal
Reserve Bank of New York
for three years.
Nigel is currently CEO
of Christchurch-based
investment company
Mohua Investments
Limited.
Richard Bodman
Director
Richard was appointed as a
director in April 2017.
Richard has spent more
than 25 years working in
the financial services
sector, including 17 years at
Jarden (previously First NZ
Capital) where he held
several executive roles,
such as Managing Director
and Head of Compliance.
Prior to this Richard spent
seven years as an inspector
for the Securities & Futures
Authority in London.
Richard is an
independent director of
Forsyth Barr Custodians
Limited, Forsyth Barr
Cash Management
Nominees Limited and
Te Ahumairangi Investment
Management Limited, and
a member of the Institute
of Directors.
Richard has been a
director of First NZ Capital
and a NZX registered
Compliance Manager.
NZX Annual Report 2020
20

Lindsay Wright
Lead Independent Director
Lindsay was appointed as a
director in February 2018.
She has more than 30 years’
financial services and funds
management experience
locally and globally.
Lindsay is CEO of Funds
Management at Sun Hung
Kai & Co. She has held a
range of senior roles in the
funds management sector
both globally and regionally
(APAC) for Matthews Asia,
BNY Mellon Investment
Management, Invesco Hong
Kong, Harvest Funds and
Deutsche Asset
Management. Lindsay
started her career with
Bankers Trust, becoming
CFO/COO before moving to
Deutsche Asset
Management.
From a governance
perspective she has served
as Deputy Chair of the Board
and Chair of the Audit and
Risk Committee of the
Guardians of the NZ Super
Fund, and as a director of
Kiwibank. Lindsay has a
Bachelor of Commerce from
the University of Auckland
and is a Fellow of the Hong
Kong Institute of Directors.
Elaine Campbell
Director
Elaine was appointed as a
director in February 2019.
She has more than 20 years’
legal experience, primarily
focusing on financial and
capital markets, IT and
telecommunications law.
Elaine is currently Chief
Corporate Officer &
General Counsel of
NZX-listed Chorus. During
her time on the executive
team at NZX from 2002 to
2008, Elaine led the legal
workstream for the
demutualisation and listing
of NZX and was responsible
for the insourcing of
regulatory functions, along
with chairing Smartshares.
Elaine spent five years
at the Financial Markets
Authority as Director of
Compliance before joining
AMP as an executive
director and General
Counsel. She has
previously worked in
the UK and USA for
multinational Sun
Microsystems.
Jon Macdonald
Director
Jon was appointed as a
director in May 2013. He
has a strong background in
technology, and between
2008 and 2019 was CEO of
Trade Me – recognised as
one of New Zealand’s
best-loved brands. Over
that time, Trade Me’s
revenue trebled to
$250 million, with a
market capitalisation of
$2.5 billion.
In addition to NZX, Jon
is on the boards of Contact
Energy, Mitre 10, Sharesies,
Trade Me (through its
parent company) and My
Food Bag. Earlier in his
career, Jon worked in
London for HSBC
Investment Bank, and
for Deloitte Consulting
with a focus on
telecommunications and
financial services. He has a
Bachelor of Engineering
(Hons) from the University
of Canterbury, and is a
Chartered Member of the
NZ Institute of Directors.
John McMahon
Director
John was appointed
a director in June 2019.
He has spent more than
20 years in the Australasian
equity markets,
predominantly as an equity
analyst covering a range of
industries including
telecommunications,
media, gaming, transport,
industrials. He had held a
wide range of roles in the
financial sector including
Head of the Equities at ABN
AMRO and Managing
Director of ASB Securities.
John has also worked for
CS First Boston (now
Jarden), BZW and
Morgan Stanley.
Today John manages
his own investment
portfolio, is Chair of NZX
listed Solution Dynamics
and a director of Wellington
Drive Technologies.
John has a Bachelor of
Commerce (Honours), an
MBA and is a CFA
(Chartered Financial
Analyst) charterholder.
NZX Annual Report 2020
21

Our Leadership Team
Mark Peterson
Chief Executive
Mark joined NZX in May
2015 and became Chief
Executive in April 2017. He
has 30 years’ experience in
financial services covering
the capital markets, private
wealth, institutional and
retail banking, and
insurance. Mark previously
worked as the Managing
Principal of ANZ Securities,
and before that held senior
management roles with
First NZ Capital, ANZ and
The National Bank of NZ.
Graham Law
Chief Financial Officer
Graham joined NZX in
November 2017. He has
considerable experience
working across the financial
and professional service
sectors in New Zealand and
the United Kingdom.
Graham previously worked
as Head of Finance at ACC,
and prior to this was
Managing Director and
Chief Financial Officer at
AMP Capital Limited.
Graham brings expertise
in strategic leadership,
corporate governance,
and risk and financial
management.
Jeremy Anderson
Executive Director,
Data & Insights
Jeremy joined NZX in
March 2017. He has
significant experience
working in the
agribusiness, technology
and financial service
sectors across Australia
and New Zealand. Prior to
joining NZX, Jeremy led
and executed Vodafone
New Zealand’s agribusiness
strategy. His areas of
expertise include market
data, strategy
development, sales
management and
innovation.
Robert Douglas
Chief Information Officer
Robert joined NZX as the
Chief Information Officer in
February 2021. He has over
27 years’ experience in
financial services. Prior to
joining NZX, Robert was
the Chief Operating Officer
at Verifone NZ and has held
previous roles as Head of
ANZ Bank Institutional,
Corporate and Commercial
Operations, the Head of
Technology at First NZ
Capital and the Chief
Information Officer of
Markets Business
Technology for ANZ Bank
based in Australia.
Throughout his career he
has also managed several
large change programs.
Robert has expertise in
leading large teams in
real-time technology
environments and is
passionate about quality
and delivery.
NZX Annual Report 2020
22

Hamish MacDonald
Head of External Relations
& General Counsel
Hamish joined NZX in July
2013 and leads the legal,
policy, government
relations, communications
and marketing functions at
NZX. Before joining NZX,
Hamish held legal roles in
New Zealand, Australia
and the United Kingdom,
most recently with a
superannuation fund in
Melbourne. Hamish holds
an LLB and BCA
(accounting major)
from Victoria University
of Wellington.
Benjamin Phillips
Executive Director,
Secondary Markets
& Clearing
Benjamin Phillips is NZX’s
Executive Director for
Markets Development and
Clearing, a position he has
held since 2017. He leads
NZX’s secondary markets
(cash and derivatives) and
Energy businesses. Within
the secondary markets
responsibilities, Benjamin is
mandated to lead the
Exchange’s commercial,
operational and
development agenda
across the trade and
post-trade functions.
Benjamin joined NZX in
September 2014 as Head
of its clearing house,
New Zealand Clearing
and Depository
Corporation Limited.
Lara Robertson
Head of Human Resources
Lara joined NZX in April
2019. She brings extensive
experience in strategic and
operational human
resources management
across a wide range of
industries. Before joining
NZX, Lara held HR roles in
Contact Energy and
Creative New Zealand. For
ten years prior, she advised
NZ companies in executive
search and leadership
development with Korn/
Ferry International. Lara
holds a Master of
Commerce (Dist) and a
Bachelor of Commerce
(Hons) from the University
of Otago.
Sarah Minhinnick
Head of Issuer
Relationships
Sarah joined NZX in
February 2020. She has
deep experience in capital
markets – most recently as
a Director of Capital
Markets at Bank of New
Zealand, and began her
career as a lawyer with
Freshfields Bruckhaus
Deringer LLP New York and
Russell McVeagh. She has a
Bachelor of Commerce
(majoring in Economics),
and a Bachelor of Laws with
Honours, both from the
University of Auckland.
Sarah also holds a Master
of Laws (in Corporate Law
and Finance) from
New York University.
NZX Annual Report 2020
23

Our Leadership Team (cont.)
Lisa Turnbull
CEO – Wealth Technologies
Lisa joined NZX in
November 2016. She has
more than 25 years’
experience in financial
services covering
investments, insurance and
banking. Lisa previously
worked for the ASB Bank
and Sovereign Insurance
holding leadership roles
across finance,
investments, distribution
and operations. Lisa is a
Chartered Accountant.
Joost van Amelsfort
CEO – NZ RegCo
With the establishment and
structural separation of
NZX’s new regulatory
agency NZ RegCo on
10 December 2020, Joost,
formally Head of Market
Supervision became Chief
Executive of NZ RegCo.
Joost has 20 years’ legal
experience advising capital
markets Participants,
including roles with
Simpson Grierson and
Linklaters LLP, London and
Dubai. Joost’s particular
areas of expertise include
corporate governance,
equity and debt capital
markets, and mergers
and acquisitions.
Hugh Stevens
CEO – Smartshares
Hugh joined NZX in
February 2018 with
extensive fund
management industry
experience gained in New
Zealand and abroad. Hugh
is the former Head of
Private Equity and Real
Estate Fund Services for
BNP Paribas based in Paris,
France, and prior to that
was Head of BNP Paribas
Securities Services
New Zealand. Before BNP
Paribas, Hugh worked for
JP Morgan in London
where he held several
executive roles including
Vice President,
Applications Development
Director and Vice
President, Head of
Analytics. Hugh holds an
MBA from London Business
School, a Bachelor of
Engineering (Hons) from
the University of
Canterbury, and a Bachelor
of Science from Victoria
University of Wellington.
NZX Annual Report 2020
24

NZX Annual Report 2020
25

How we create value
BUSINESS ACTIVITIES
Financial markets
Infrastructure
Capital
Flow
Helping build
New Zealand’s
tomorrow
As New Zealand’s Exchange, we are proud of our record in
supporting the growth and global ambitions of local
companies for more than 150 years. We recognise that our
future success, and delivering on our strategic goals,
requires integrated thinking within our business and
alignment with the expectations of our key stakeholders.
Consistent with the guiding principles of Integrated
Reporting we have highlighted five pillars (Our Customers,
Strategic Partnerships, Sustainable Environment, People &
Capability, and Market Performance), which are of primary
importance to creating sustainable value for our
shareholders, across the capital markets ecosystem,
for Kiwis and New Zealand as a whole.
WHAT MATTERS MOST
Our Customers
Strategic partnerships
People & capability
Sustainable environment
Market performance
NZX Annual Report 2020
26

OUR PURPOSE By combining the needs
of our customers, with innovation and modern
technology we build enduring markets to deliver
capital pathways, investment opportunities and
economic success for New Zealand.
Product
Liquidity
Data &
Insights
THE VALUE WE CREATE
Capital to fuel growth
Resilient, vibrant markets
Empowered performance
Healthy planet
Economic prosperity
NZX Annual Report 2020
27

Our Customers
We supply a wide range of quality financial
services to our customers in New Zealand and
around the world – from operating capital
markets infrastructure to managing investors’
assets, and providing unique insights.
Capital raising
The events of 2020 reinforced the value of being listed on
New Zealand’s Exchange – enabling ready access to equity
capital to help companies weather the impacts of
COVID-19. To assist, NZX also moved swiftly, introducing
a lift in capital raising capacity under share purchase plans,
which supported retail participation in these offers,
along with measures to allow greater flexibility in the
types of offer structures and in the timeframes for
financial reporting.
This year there were also some clear learnings in how
we can ensure the highest possible level of reliability of our
services to customers, and investors in our markets.
Service commitment
The integrity and performance of our IT systems is vital to
all market Participants, and there is an ongoing need to
continually respond to rising demands and risks. The Risk
Report (on page 52) identifies the critical role of
information technology for NZX. This relates to the
interdependence on other Participants in the capital
markets ecosystem, and vulnerabilities that were
highlighted by the clearing and settlement incidents.
These occurred at the height of the market volatility,
created by the COVID global pandemic over March/April
2020, and the Distributed Denial of Service (DDoS)
cyberattacks that began in August 2020.
One of the fundamentals of the service commitment to
our Participants and their investing customers, is getting
the basics right – ensuring that our markets are open and
fully functioning during normal trading hours. As
referenced in the Chair’s report, it was disappointing that
in 2020 we did not live up to our expectations. While
unrelated, there have been learnings for NZX from both of
these issues and we have committed to delivering
improvements via an action plan to be agreed with the
FMA. We also see collaboration and planning across the
financial ecosystem as a crucial step in strengthening
NZX’s, and the market’s, ability to meet future threats.
Staying connected
In responding to the COVID-19 restrictions, which limited
direct customer contact for significant periods, we have
kept a clear focus on connecting with our customers –
particularly through our Issuer Relationships team. We
immediately recognised the opportunity to use video-
conferencing and webinars, which has proved extremely
successful for hosting retail investor events – where we
have increased reach and with a broader audience. This
TOTAL LISTED EQUITY, DEBT
& FUND SECURITIES
TOTAL VALUE TRADED
NZXWT INVESTOR PORTFOLIOS
INVESTORS IN SMARTSHARES
334
53.7b
28,185
79, 871
2019: 323
2019: $37.8b
2019: 24,937
Through Funds Under Administration
2019: 75,377
Direct and indirect investment in products
NZX Annual Report 2020
28

CASE STUDY
Supporting success
There is nothing we like more at NZX than supporting
and celebrating the success of Kiwi businesses – and
particularly when it is a company with truly inspiring
foundations, reflected in their ethos of providing a true
Kiwi touch to aged care.
Radius Care (NZX: RAD) has grown through the vision
of Chairman, Brien Cree, and his personal experience
caring for his mother – shaping a business that, in his own
words, aims to always “put residents and families first”,
delivering services to Kiwis in rest homes, through to
specialised dementia, respite and palliative care.
Driven by the needs of New Zealand’s aging
population and a focus on ‘Caring is our Calling’, Radius
Care’s decision to list on the NZX – under the new simpler
direct listing process – will allow the company access to
capital for growth.
Described as a “truly exciting and proud day for
Radius Care”, the listing celebration with NZX was a
opportunity to reflect on the company’s achievements
to date, and the promise for the future as Brien and
his team are able to extend their special touch to make
a difference working with more families and their
loved ones.
has also been case with our digital newsletters to issuers,
prospective customers and retail investors all enjoying
strong engagement. Along with the support for current
listed companies, we achieved strong momentum in the
second half of the year with five new companies joining
the NZX and other listings taking the total of listed
securities to 334, up 3.4% in 2020.
NZX Wealth Technologies continued to win new
customers, growing Funds Under Administration to
$7.19 billion at year-end. Smartshares also recorded
further strong gains in Funds under Management and
has also made progress on key strategic milestones. This
includes launching institutional investment management
including an S&P/NZX50 segregated mandate.
Institutional investors are starting to move into passive
through Smartshares ETFs and unlisted investment
products – mirroring a global trend. Smartshares has also
opened accounts for leading NZ wholesale and advisor
platforms – giving financial advisors access to
Smartshares unlisted passive funds for the first time. We
were also the first in Asia-Pacific to launch the Bloomberg
BSKT basket creation and redemption functionality,
which automates the interaction between brokers,
Smartshares and custodian for creating and redeeming
ETF units. The uncertainty around the pandemic, and
market volatility, was reflected in a SuperLife key
customer satisfaction measure, with Net Promoter Score
falling from +34 in 2019 to +19. Customer insights are
driving plans to expand the offering of ethical funds,
together with enhancement to financial advice and
digital tools.
NZX Annual Report 2020
29

Strategic
Partnerships
NZX actively focuses on building strategic
partnerships and affiliations in New Zealand
and around the world to drive our own business
growth and support key global initiatives,
recognising the value of what can be achieved
by working together.
Boosting capital flows
We are continuing to work with BNP Paribas Securities
Services (BNP Paribas) on a new initiative focused on
boosting offshore capital flows into NZX to further develop
the New Zealand capital market. BNP Paribas has been
working towards becoming a General Clearing Participant
– expected to be completed within the first half of 2021,
fulfilling one of the Exchange’s key strategic goals of
ensuring the long-term health of New Zealand’s capital
markets. We see this as a hugely positive signal about the
untapped potential in our markets, with a high-quality
clearer and custodian, with an unparalleled regional clearing
footprint and global credentials, committing its innovation
and expertise to New Zealand.
Stronger together
NZX has announced the formation of a potential global
partnership with Singapore Exchange (SGX) to grow NZX’s
dairy derivatives market together. Under the current
non-binding agreement signed between both exchanges
we are exploring the listing of NZX’s suite of dairy
derivatives contracts on SGX’s trading and clearing
platforms. This would see NZX bring our dairy product
development expertise and client relationships, while
leveraging SGX’s global market connectivity, strong Asian
presence and international distribution, to scale growth and
liquidity in the trading of dairy derivatives. The partnership
builds on the Memorandum of Understanding signed
between the two exchanges in 2018, to expand co-
operation in the Asia-Pacific region and promote market
development initiatives across multiple product sectors.
Our joint bid with the European Energy Exchange (EEX)
was selected in October 2020 to develop and operate the
managed auction service for the New Zealand Emissions
Trading Scheme (NZ ETS) – one of the Government’s main
tools for meeting domestic and international climate policy
targets. This success showcases the value of bringing
together the deep experience and capabilities of NZX and
EEX to implement and operate a solution tailored to meet the
needs of New Zealand and NZ ETS Participants – and aligned
with the design of other emissions markets globally. NZX and
EEX announced our Co-operation Agreement in December
2019, and we see new opportunities opening up as the
New Zealand market matures.
Market development
Our partnership with Syndex will support long-term success
of local companies, providing joint education to help
NZX Annual Report 2020
30

Nurturing Kiwi companies
companies develop shareholder management and
reporting practices, mature governance – and establish
appropriate organisational structures – while providing
access to capital. This will help to grow a pipeline of
companies with the confidence and readiness to
springboard into public markets over time. The listing of
New Zealand Rural Land Company (NZX: NZL) shows this
partnership in action, enabling the company to raise
initial capital via wholesale investors in private markets
before moving to NZX.
We have also recently contracted independent
investment research network, SmartKarma, to offer
coverage to companies as they list and strengthened our
relationship with CMC Markets, providing more trading
opportunities and liquidity for our listed companies.
NZX has a range of other global affiliations, including
with the World Federation of Exchanges, and we were
proud to be the first Stock Exchange in the world to ring
the bell for Financial Literacy in 2020.
Supplier relationships critical
A well-functioning market cannot operate without the
contribution of a range of service providers to NZX.
We see these relationships as important strategic
partnerships and invest time and resources to ensure
these operate effectively. Key supplier relationships for
NZX which contribute to the operation of NZX’s market
infrastructure include Nasdaq, Tata Consultancy
Services, Spark, RedShield, Akamai, Datacom and
Eagle Technologies.

CASE STUDY
NZX Annual Report 2020
31
In July 2020 we announced our partnership with private
capital market specialists, Syndex to support the growth
and long-term success of New Zealand companies –
enabling access to capital throughout their business
life cycles.
Founded by Mike Jenkins and Ross Verry, Syndex is
focused on solving the issues that limit the private market
from its true potential, eliminating the challenges and
risks that private investors face.
Working together, we see the opportunity to do more
to power-up the New Zealand economy by building-out
the pool of mid-stage companies – connecting them with
the financial backing they need, as well as the tools to
provide efficiencies and management of shareholders.
The Syndex and NZX partnership will also provide a
springboard into the public markets, with planned
services including a registry that will enable businesses
to list directly on the NZX without changing out service
partners. Quantitative frameworks and insights will allow
investors to understand the track record of these private
companies – from their first private capital raise, through
to public listing when the time is right.

People & Capability
NZX has built a positive and dynamic culture,
where our people have clear direction and
purpose, open communication and diverse
opinions are encouraged, and delivering
for customers is celebrated. Our culture is
instrumental in driving performance and
delivery of our strategic goals.
In 2020 our people showed enormous
commitment, resilience and flexibility to deliver
against strategic priorities and find new ways
to support customers and investors through
the COVID-19 pandemic, extraordinary trading
volumes and severe, persistent cyber-attacks.
Transforming our culture
The fantastic commitment displayed by our workforce
during 2020 is a testament to the highly engaged workforce
and positive culture NZX has built in recent years. For the
eighth successive survey since 2016, employee engagement
increased, and the company’s goal of 4.25 was met in May
and again in October. This was an essential ingredient in
maintaining high productivity throughout the year. Retaining
highly-skilled people has been a focus of management
attention and the positive impact of this effort was realised in
2020. Employee turnover dropped significantly, to 9.35% for
2020 (compared with 24.70% in 2019).
Customer focus
Enhancing our sales capability is a key ingredient for
sustained growth. As we continue to grow a truly
customer-oriented culture, we are delivering a two-year
programme to embed consistent, repeatable sales
processes across NZX. Customer focus is also reflected
in recruitment where we are building capability in key
operational areas, while also streamlining operational
processes. New roles were added in Market Technology
and Energy IT to enhance capacity, along with nine new
roles in NZX Wealth Technologies to support growth.
Compelling employee experience
The success of our efforts to provide a compelling
employee experience is seen in both engagement and
retention this year. NZX provides a comprehensive suite
of employee benefits to support wellbeing, flexibility,
professional growth, and financial wellbeing. Ongoing
professional development ensures we keep evolving
capability to meet changing business requirements and
employees’ career aspirations. During 2020 we supported
employees to complete external qualifications in financial
analysis (CFA) and financial services (NZCFS), as well as
professional credentials in accountancy and law. We
deliver an ongoing programme of learning to build
employees’ knowledge of our business and our industry.
SKILLS FOR THE FUTURE
1, 255
HEALTH & SAFETY (TRIR)
0.89
EMPLOYEE ENGAGEMENT (GALLUP SCORE)
2 019: 4 .15
2019: 1.54 TRIR
2019: $991
4.28
NZX Annual Report 2020
32

CASE STUDY
Growing on the job
At NZX we’re always looking for opportunities to nurture
talent, ignite the passion of our people and help build
the capability we need for the future.
There’s no better example than our 2020 Supreme
Chair Award winner, Emma Dent, who not only took out
the year’s top honour but has continued to grow her
career with a recent promotion to the role of Associate
Operations Manager in our Markets Development and
Clearing team.
Joining NZX in 2015 with a Masters in Ecology and
Biodiversity, the prospect of joining NZX’s Graduate
Programme with no previous financial markets
experience was, as Emma describes: “one of my biggest
life decisions at the time – and the best thing to happen
in my career”.
For someone who thrives on professional challenges,
Emma knew she needed to find a path that suited her
naturally energetic outlook.
From the first week with NZX as a Forestry Analyst
she was involved in “work that matters”. Six years later,
still constantly learning, Emma applies her skills at the
heart of New Zealand’s capital markets, and loves
nothing more than solving problems for our customers.
An award is just the icing on the cake!
Flexible working
Our workforce quickly switched to operate remotely
when New Zealand went into lockdown in March 2020,
armed with the right technology and tools. Business
continuity plans were current and well-rehearsed.
Flexible working was already a common business
practice, with 74% of our people accessing flexibility
in some way before the March lockdown, and this
seamlessly increased to 97% of our workforce working
remotely while providing essential services for
New Zealand.
Pandemic protocols
Actively managing the pandemic risks took centre stage
for health and safety in 2020. Clear health and safety
protocols and enhanced communications enabled us to
continue operating safely throughout each alert level.
This is reflected in NZX’s Total Recordable Injury Rate
(TRIR) of 0.89 for 2020 (number of recordable incidents
per 200,000 hours worked), and low absence for illness.
The strength of our health and safety management was
also reflected in employees’ feedback that NZX cares
about them, and provided clear and frequent guidance
about how to keep operating safely.
Supporting mental health of our employees was
more relevant than ever through the uncertainty of the
pandemic. We offered workshops for employees and
their families on building resilience in uncertain times,
and other mental health topics. Morale-boosting
initiatives helped our teams stay connected with each
other through the lockdowns. EAP Services were
available to all employees and their families to
access confidential advice and support for work or
personal issues.
NZX Annual Report 2020
33

The nature of NZX’s business means our use
of resources and emissions is relatively small,
however we have a key role in supporting the
growth of sustainable finance that is necessary
to address climate change and deliver a
step-change in environmental outcomes for
New Zealand.
Sustainable finance growth
NZX has continue to support the work undertaken by the
Aotearoa Circle’s Sustainable Finance Forum, along with
promoting the further development of the issuance of
green and sustainability-related securities.
With an increasing domestic policy agenda, and action
internationally on climate change, it has been encouraging
to see a further increase in the issuance of sustainability-
related financial products, such as wellbeing bonds, green
Exchange Traded Funds (ETFs) and green bonds –
responding to the growing global trend towards
sustainable investment and demand from investors who
are more conscious of where they put their money.
NZX has recorded strong growth in issuance over the
past five years – with nearly $1 billion of green bonds listed
in 2020 by issuers such as Mercury NZ supporting
New Zealand’s transition to a low emissions future,
Auckland Council’s Green Bonds driving the electrification
of transport and cycleway projects, and Argosy whose
environmental strategy reflects an ambition to create
vibrant sustainable workplaces for their tenants. Precinct
Property is another example of a listed company taking an
innovative approach to its commitment, by transferring
existing retail bonds through the company’s Sustainable
Debt Programme. This issuance will increasingly be
complemented by other sustainable and ethical
investment opportunities, such as the $500 million from
Housing New Zealand (Kāinga Ora) supporting the
development of sustainable, inclusive and thriving
communities that provide people with good quality,
affordable housing choices that meet diverse needs.
This is reflected in the 2020 Environmental, Social and
Governance report produced by our Data & Insights team,
which showed an increasing proportion of New Zealand
companies are moving to disclose and discuss their
approach to sustainability and consistently report on how
they are addressing ESG risks and opportunities.
Greenhouse Gas (GHG) emissions
With the COVID-19 restrictions, particularly on
international travel, NZX recorded a 64% drop in our
Greenhouse Gas emissions (C0
2
-e calculated using
Ministry for the Environment 2020 Emissions Factors).
Emissions related to long-haul flights dropped from more
than 207 tonnes in 2019 to 32 tonnes in 2020, along with
substantial reductions in short-haul international and
domestic travel. As we consider our approach to the
Sustainable Environment
SUSTAINABILITY ISSUANCE
2019: $1.56b
2.40b
NZX EMISSIONS
2019: 481.6 Tonnes CO
2
-e
171. 6
Tonnes
CO
2
-e
NZX Annual Report 2020
34

Mercury NZ (NZX: MCY) is helping build a brighter future
with the vision of ‘Energy Freedom’, and we welcomed
the listing of the company’s first Green Bond in 2020.
With a clear focus on investment in renewable
electricity and supporting New Zealand’s transition to a
low emissions future, it’s fantastic to see Mercury join a
growing community of Issuers offering sustainable and
ethical investment opportunities to Kiwis. The launch of
Mercury’s first Green Bond is another significant
milestone for the company, which operates 100%
renewable electricity hydro, geothermal and now wind
generation – with some of the proceeds earmarked for
the construction of the Turitea wind farm near
Palmerston North.
Listed in 2013, Mercury has been a leading voice in
the electrification of transport – promoting the
compelling opportunity in New Zealand’s renewable
electricity to decarbonise the domestic economy and
address climate change. This green bond, to refinance
existing debt and to fund future renewables projects,
reflects a core focus on kaitiakitanga, and the
guardianship of natural resources.

CASE STUDY
Powering renewable energy
pending Taskforce on Climate-related Financial
Disclosures (TCFD) framework and carry out a full
assessment of climate-related risks and opportunities,
2020 has demonstrated the potential to reduce our
environmental impact and deliver complementary
benefits. Our Board who are located across three
countries hosted a virtual Annual Meeting for the first
time last year, as well as holding our annual Global Dairy
Seminar online – an event traditionally located in
Singapore. In both cases this allowed for greater
participation without the requirement for travel for
presenters or attendees, and with our Dairy Seminar
there was a three-fold increase in attendance.
Wellbeing and sustainability benefits
We have also successfully embedded flexible working
arrangements across the business, with nearly all of our
employees now having accessed this opportunity to
date. From the enforced lock-down requirement due to
COVID-19, we are now seeing not only the well-being
benefits for our team but also productivity gains in
some areas, along with the sustainability benefits from
reduced personal commuting – and feedback that this is
attractive as part of our employee value proposition
and could translate into greater diversity in our
workforce over time. This has also helped with
designing our new Auckland office building in the
second half of 2021, which will offer a more modern and
purpose-built workspace with sustainability elements
including an additional end-of-trip facility to encourage
and support cycling and e-mobility.
NZX 2020 Greenhouse Gas inventory
ScopeEmissions sources
CO
2
-e
2020
Tonnes
2019
Tonnes
Scope 1Rental Cars 1.2 3.6
Scope 2Electricity purchased47.5 48.0
Scope 3Air Travel
—Domestic75.6167.5
—Short haul
international
4.8 35.3
—Long haul
international
31.8206.5
Accommodation 5.4 15.3
Transmission and
distribution losses
for purchased
electricity
4.0 4 .1
Paper disposal 1.3 1.3
Tot al171. 6481.6
CO
2
-equivalent emissions calculated using Ministry for the Environment 2020
Emissions Factors. Air travel emissions are calculated with radiative forcing.
NZX Annual Report 2020
35

Market Performance
At the core of the capital markets ecosystem,
we offer businesses access to capital in order
to prosper and future-proof the country’s
economy. That creates jobs and opportunities,
alongside facilitating growth in personal wealth
through investment and savings.
The past year, and the impacts of the COVID-19
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 benefits have reinforced the
significant 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.
Market development
In terms of broader market development initiatives, we
are focused on progressing the recommendations of the
Capital Markets 2029 report (see page 39). Given the value
of listing which has been highlighted in the current
environment, our focus is on promoting the market to other
companies who may need to access capital or to owners
who may want to release capital for other purposes.
A strong pipeline of potential listings is building across
equity, debt and funds as companies recognise the
benefits of having access to capital and look to attract the
large pool of investible cash that is available. We expect
direct listings – where companies seek a listing without
raising capital immediately – to be a pathway of choice for
accessing the listed market.
A direct listing allows a company to access a liquid
secondary market immediately to trade its shares, and
allows access to capital after an initial stand-down period.
NZX has been consulting on potential changes which
would clarify the regulatory treatment of these listings to
support this pathway to market – recognising the different
risk profile from an IPO (Initial Public Offering). We are
encouraged by the opportunity to promote this pathway to
market because it allows a broader range of entities to
promote a company for listing. The absence of an initial
capital raising also reduces the costs of a direct listing.
Non-Government funding
The listed market also offers an avenue to support the
New Zealand Government’s balance sheet, to take the
strain off taxpayers by directing available pools of non-
Government funding to areas that need additional capital.
The Napier Port listing last year is an excellent blueprint for
what is possible in this space – with a local New Zealand
listing allowing the company to raise $234 million of equity
capital, which is assisting the funding of a new wharf
development that will flow through to the regional
COMMUNITY INVESTMENT
2019: $434,000
226,000
NET ECONOMIC CONTRIBUTION
2019: $141m
159 m
TOTAL MARKET CAPITALISATION
2019: 67%
77%
of
GDP
NZX Annual Report 2020
36

CASE STUDY
Building our community
At the heart of a healthy financial market is capable,
confident and well-informed investors – and a growing
opportunity for NZX to engage with and strengthen
our community.
Alongside our focus on connecting retail investors
with listed issuers – helping grow awareness and
understanding of our listed companies – one of our key
areas of focus is education through our support of share
clubs, such as at Otago University and the AUT with NZX
virtual trading competitions.
The AUT Investor Club competition has been
extremely popular – allowing students to learn DIY
investing in a real-world trading environment, with the
financial risk taken out. This year’s winner, business
student Brent Gentil, achieved a healthy 36% return,
and more importantly, gained exposure to share
investing while also confirming his plans to pursue a
career in finance.
With record numbers of retail investors Participating
in our capital markets in 2020, we’re pleased to be able
to support and complement a range of initiatives,
alongside Government agencies, market participants,
and community organisations, to lift investor knowledge
and equip Kiwis to make informed investment decisions.
economy. This was achieved while allowing its owner
Hawkes Bay Regional Council to retain a 55% majority
interest in the company, while prioritising the interests of
local iwi, ratepayers and Port staff by inclusion in a
priority offer.
COVID-19 has both tested our listed market and
revealed the compelling value that can be delivered when
we connect our businesses in need with private sector
capital, and open up new investment opportunities for all
Kiwis into New Zealand.
Separate regulatory model (NZ RegCo)
A new regulatory model for NZX’s listed markets (NZ
RegCo) was established in December, completing the
structural separation of the Exchange’s commercial and
regulatory roles. This now stand-alone, independently-
governed agency is performing all of NZX’s frontline
regulatory functions, with the NZ RegCo Board providing
enhanced strategic and real-time support. The
independent Board also acts as a point of escalation for
key “bright line” regulatory decisions. The NZ RegCo
model, shaped from a full review of NZX’s regulatory
operating model completed in 2019, was prompted by
the increasing complexity of governance arrangements.
NZ RegCo represents an important milestone in the
continuing evolution of New Zealand’s capital markets
and is aligned with global best practice – in terms of the
structure, governance and the operating model.
NZX Annual Report 2020
37

Capital Markets 2029
A vision & growth agenda to grow
New Zealand’s capital markets
N
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X
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Impact
Owner Recommendation
Raise awareness
of benefits
and reasons to
list including
promotion of
success and growth
stories
Update NZX
website to provide
better user
experiences for
issuer and market
participants
Continue to
encourage and
support innovation
in public capital
markets
Encourage formal
debrief between
key stakeholders
following any
significant listing/
raising
Promote fund
platform for more
listed products
Use broker
syndicates and
public pools
H
i
g
h
e
r
N
Z
X
Greater
promotion and
education of
the alternative
pathways to the
listed market
The Growing New Zealand’s Capital Markets 2029 report
was released in September 2019. The report identified
areas for all stakeholders to address to grow the capital
markets to support New Zealand, reflecting the views of
market experts and industry leaders.
The focus for NZX is to progress the recommendations
for which NZX has exclusive responsibility, in particular the
promotion and education of the alternative pathways to
access the listed market. NZX is also committed to
engaging on public policy initiatives and acting
alongside other stakeholders in relation to the other
recommendations in the report that relate to the broader
settings for New Zealand’s capital markets.
The report highlights a significant opportunity for NZX to
develop the listed market in New Zealand by targeting the
estimated 1,200 private companies with annual revenues
greater than $30 million, to highlight the options and
benefits of listing.
COVID-19 has reinforced the value of the listed market
which has enabled efficient access to capital and strong
secondary market liquidity for investors. This has provided
a strong platform from which to promote the listed market
as a support mechanism for New Zealand companies.
NZX Annual Report 2020
38

NZX’s progress so far against
recommendations within the report
GREATER PROMOTION AND EDUCATION
OF THE ALTERNATIVE PATHWAYS TO THE
LISTED MARKET
—Amendment to the Listing Rules to
enable prospective financial
information for Direct Listings to be
included on a voluntary basis –
making it significantly cheaper and
simpler to list via this pathway while
ensuring an appropriate level of
disclosure is provided to investors
—Running targeted educational
campaigns to promote updated
Direct Listing regime
—Introduced a framework that allows
NZX to prescribe disclosure
document templates for Foreign
Exempt listings
—Showcasing Foreign Exempt and
Direct Listings via social media and
other forums – for example, Radius
and Auckland Real Estate
RAISE AWARENESS OF BENEFITS AND
REASONS TO LIST INCLUDING PROMOTION
OF SUCCESS AND GROWTH STORIES
—Updated pitch pack introduced
highlighting the benefits, reasons and
options for listing
—Increased activity via sponsorships and
industry events
—Introduced a marketing package for all
new listings
—Stronger social media presence
—Retail Investor Forums to connect issuers
with investors
ENCOURAGE FORMAL DEBRIEF FOLLOWING
ANY SIGNIFICANT LISTING OR RAISING
—Intend to coordinate with market
participants to arrange on upcoming
significant listings
PROMOTE FUND PLATFORM FOR MORE
LISTED PRODUCTS
—Fund pitch pack under development
—Webinars to educate and support
existing and prospect fund issuers
—Increased promotion of recent fund
listings including Smartshares
and Booster
UPDATE NZX WEBSITE TO PROVIDE
BETTER USER EXPERIENCES FOR ISSUER
AND MARKET PARTICIPANTS
—NZX weekly diary now available in a
video format
—Project is underway to update nzx.com
NZX Annual Report 2020
39

40
NZX Annual Report 2020

Corporate
Governance
NZX Annual Report 2020
41

Corporate governance
NZX’s shares are quoted on the NZX Main Board. NZX also
has a subordinated note quoted on the NZX Debt Market.
In this part of the annual report, we disclose the extent to
which we have followed the recommendations set out in
the NZX Corporate Governance Code 2020 (NZX Code).
The information in this section is current as at
31 December 2020 and has been approved by the
board of directors of NZX.
NZX’s board is committed to maintaining the highest
standards of governance by implementing a framework of
structures, practices and processes that it considers reflect
best practice. NZX’s corporate governance policies and
procedures, and its board and committee charters,
document the framework and have been approved by
the board.
The framework has been guided by the
recommendations set out in the NZX Code and the
requirements set out in the listing rules. The board’s view is
that NZX’s corporate governance framework has followed
these recommendations and requirements in the year to
31 December 2020 (reporting period), except for
recommendation 8.5 of the NZX Code as explained below.
The corporate governance framework is regularly
reviewed by the board against the corporate governance
standards set by NZX, any regulatory changes, and
developments in corporate governance practices.
The key corporate governance documents referred to
in this section are available from NZX’s investor centre.
NZX introduced a significant change to its governance
framework during the reporting period with the
restructure of NZX’s regulation function. Following a
transition period, NZ RegCo was formally established on
10 December 2020 as an independently-governed agency
to perform all of NZX’s frontline regulatory functions.
NZ RegCo is governed by an independent establishment
board chaired by Trevor Janes, with board members Elaine
Campbell, Mike Heron QC, John Hawkins and Annabel
Cotton. Further information on NZ RegCo and its activities
can be found here: https://www.nzx.com/regulation/
nzregco/about-nzregco.
NZX Code
Principle 1 – code of ethical behaviour
Directors should set high standards of
ethical behaviour, model this behaviour
and hold management accountable
for these standards being followed
throughout the organisation.
Code of Conduct
NZX’s Code of Conduct sets out the standards of conduct
expected of directors (including members of committees)
and employees (including secondees, contractors and
consultants). The purpose of the code is to underpin and
support the values that govern our individual and
collective behaviour.
Training on the code is included as part of the
induction process for new directors and employees.
The code requires directors and employees to
promptly report material breaches of the code and sets
out the procedure for doing so.
The code is reviewed at least every two years and was
last reviewed in November 2019.
Financial Products Trading Policy
NZX’s Financial Products Trading Policy sets out NZX’s
restrictions on its directors and employees buying or
selling financial products. In particular:
—directors and employees may not buy or sell NZX’s
shares in the “blackout” periods set out in the policy
(these periods occur prior to the release of NZX’s
financial results to the market); and
—outside of a blackout period, directors and employees
must obtain consent to buy or sell NZX’s shares.
Because NZX is a licensed market operator, NZX’s senior
managers and employees with access to market sensitive
information must obtain consent to buy or sell financial
products quoted on a market operated by NZX.
Training on the policy is included as part of the
induction process for new directors and employees.
The policy is reviewed at least annually and was last
reviewed in December 2020.
NZX Annual Report 2020
42

Board Composition
Board StructureNumber of
Directors
Gender
Diversity
Average Director
Tenure
Average Director
Age
Diversity Characteristics
Single tier86 men,
2 women
3 years, 9 months5 4 .1Education qualifications,
professional experience, personal
achievements, geography,
gender, age
Principle 2 – board composition and
performance
To ensure an effective board, there should
be a balance of independence, skills,
knowledge, experience and perspectives.
Board charter
NZX’s board operates under a written charter, which sets
out the responsibilities and framework for the operation of
the board.
The charter is reviewed at least every two years and
was last reviewed in December 2020.
Management of NZX on a day-to-day basis is
undertaken by the Chief Executive Officer and senior
managers through a set of delegated authorities that
clearly define the Chief Executive Officer’s and senior
managers’ responsibilities and those retained by the
board. The delegated authorities are set out in NZX’s
Delegated Authority Policy. The policy is reviewed at
least annually and was last reviewed in December 2020.
The board meets its responsibilities by receiving
reports and plans from management and through its
annual work programme. The board uses committees to
address issues that require detailed consideration.
Committee-work is undertaken by directors. However, the
board retains ultimate responsibility for the functions of its
committees and determines their responsibilities.
Nomination and appointment of directors
NZX has a Nomination Committee, which is responsible for
reviewing candidates for appointment and re-election to
the board and committees, and making recommendations
to the board. An independent recruitment consultant may
provide assistance in preparing a list of candidates for the
committee’s consideration. The committee meets with
preferred candidates before making a recommendation to
the board. Checks are done on candidates in accordance
with NZX’s Fit and Proper Policy. Key information about
candidates is provided to shareholders in the notice of
annual meeting.
At each annual meeting, current directors retire by
rotation at least every three years as required by the NZX
Listing Rules and are eligible for re-election. Any directors
appointed since the previous annual meeting must also
retire and are eligible for re-election.
NZX uses a skills matrix when selecting candidates for
appointment and re-election to the board. The skills matrix
outlines the ideal mix of skills, experience and diversity
needed to ensure the board is equipped to provide the
high standard of corporate governance required to lead
NZX. If the board determines that new or additional skills
are required, training is completed or a formal recruitment
process is undertaken.
The matrix assesses directors against the
following criteria:
—strategy and performance – expertise in respect of
stock exchanges, data information, media, technology
and business operations;
—quality committee leadership – skills to serve on NZX’s
committees; and
—connectivity to stakeholder groups – connectivity to
stakeholder groups such as regulators or government,
the Electricity Authority, listed issuers, brokers or
institutional and retail investors.
Based on these criteria, the board considers that its
members currently have the balance of independence,
skills, knowledge, experience and perspectives necessary
to lead NZX.
Written agreement
NZX provides a letter of appointment to each newly
appointed director setting out the terms of their
appointment. The letter includes information regarding
expected time commitments, the board’s responsibilities,
remuneration, independence requirements, disclosure
requirements, confidentiality obligations, indemnity and
insurance provisions, intellectual property rights and
cessation of appointment.
Director information
The board currently comprises eight directors with
diverse backgrounds, skills, knowledge, experience
and perspectives. All directors are non-executive
and independent.
Information in respect of directors’ ownership interests
is available on page 106. NZX’s directors are not formally
required to own NZX shares, but are encouraged to do so.
NZX Annual Report 2020
43

Lead independent director
Lindsay Wright is NZX’s lead independent director in
the event that James Miller is conflicted on any matters
that arise.
Further information about NZX’s directors is available
on pages 20 and 21.
Diversity
NZX’s Diversity and Inclusion Policy sets out how NZX
will set measurable objectives for achieving diversity and
inclusion, and how it will assess its progress towards
achieving these objectives.
The policy is reviewed at least annually and was last
reviewed in December 2020. Further details on NZX’s
diversity and inclusion are outlined on pages 10 and 11.
DIRECTOR TRAINING
Directors are expected to understand NZX’s operations
and undertake training and education to enable them to
effectively perform their duties. This can include:
—attending management presentations in respect of
NZX’s operations;
—attending presentations on changes in governance,
legal and regulatory frameworks;
—attending technical and professional development
courses;
—attending presentations from industry experts and key
advisers;
—attending the World Federation of Exchanges (WFE)
conferences of which NZX is a member; and
—receiving regular educational materials.
NZX continues to support the Institute of Directors’ Future
Director Programme, with Hayley Buckley appointed as
NZX’s Future Director for 2020 until 30 June 2021.
ASSESSMENT OF BOARD PERFORMANCE
A detailed board evaluation was conducted in 2020 to
review the performance of the board and committees
across key areas, including strategy, risk management,
board processes and monitoring organisational
performance. This process was run by external and
independent governance experts. The key findings of the
process, including questionnaire responses, were
reviewed by the board.
The review found that NZX’s board and management
are aligned strategically, including with respect to growth
businesses. The review also found that progress had been
made since the 2018 review in a number of governance
areas including board committees, stakeholder
engagement and risk management. In addition, a number
of opportunities were also identified for the board to
continue to develop and enhance performance.
SEPARATION OF THE CHAIRPERSON AND
CHIEF EXECUTIVE OFFICER
NZX’s board chair is a different person to NZX’s Chief
Executive Officer.
Principle 3 – committees
The board should use committees
where this will enhance its effectiveness
in key areas, while still retaining board
responsibility.
COMMITTEES AND MEMBERS
The board uses committees where specialist skills and
experience are required. As at 31 December 2020, five
standing committees have been established to assist the
board on matters falling within their areas of responsibility.
Each committee has authority to undertake any activity set
out in its charter or as authorised by a separate resolution
of the board. During the reporting period two committees
(the Regulatory Governance Committee and Conflicts
Committee) were disestablished as part of the restructure
of NZX’s regulation function.
The board and five committees and the members of
each as at 31 December 2020 are set below.
Board and committees (as at 31 December 2020)
Board of Directors
—James Miller (Chair)
—Frank Aldridge
—Nigel Babbage
—Richard Bodman
—Elaine Campbell
—Jonathan Macdonald
—John McMahon
—Lindsay Wright
NZX Annual Report 2020
44

Committees
Core Committees
Audit and Risk
Committee
Human Resources and
Remuneration
Committee
Nomination CommitteeClearing CommitteeTechnology Committee
Lindsay Wright (Chair)
Richard Bodman
Jon Macdonald
John McMahon
Frank Aldridge (Chair)
Jon Macdonald
James Miller
Elaine Campbell
James Miller (Chair)
Frank Aldridge
Lindsay Wright
Nigel Babbage (Chair)
Richard Bodman
Elaine Campbell
John McMahon
John McMahon (Chair)
Richard Bodman
Jon Macdonald
Director meeting attendance
Core CommitteesRegulatory Committees
Director Board
Audit
and Risk
Committee
Human
Resources and
Remuneration
Committee
Nomination
Committee
Technology
Committee
Clearing
Committee
Regulatory
Governance
Committee
Conflicts
Committee
Frank Aldridge7/8–4/41/1––––
Nigel Babbage8/8––––4/43/33/3
Richard Bodman8/87/7––17/194/4–2/2
Elaine Campbell8/8–1/1––4/43/33/3
Jon Macdonald8/87/74/4–18/19–––
John McMahon8/87/72/2–19/194/4––
James Miller8/87/74/41/1––––
Lindsay Wright8/87/7–1/1––––
1. The Technology Committee was established on 21 April 2020. In addition to the separate committee meetings, the members also attended a number of additional
Joint Steering Committees (JSC) with management. There were 41 JSC meetings during the period – John McMahon attended 39, Richard Bodman 34 and Jon
Macdonald 32.
2. As part of the restructure of NZX’s regulatory function, the NZ RegCo establishment board (Trevor Janes (Chair), Elaine Campbell, Mike Heron QC, John Hawkins
and Annabel Cotton) was formed on 10 December 2020 and replaced the Regulatory Governance Committee and Conflicts Committee. David Flacks, Nigel
Babbage and Elaine Campbell were previously members of the Regulatory Governance Committee. Jayshree Das, Nigel Babbage, Elaine Campbell and Richard
Bodman were previously members of the Conflicts Committee. As part of transition arrangements, members of the NZ RegCo Establishment Board were appointed
to the Regulatory Governance Committee and Conflicts Committee for the period August 2020 – 10 December 2020. Elaine Campbell also attended 3/3 NZ RegCo
board meetings.
3. Elaine Campbell joined the Human Resources and Remuneration Committee on 17 September 2020. John McMahon retired from the Human Resources and
Remuneration Committee on 17 September 2020.
4. In addition to the scheduled full day board meetings, the board held 10 additional meetings via VC during the year in response to COVID-19, technology issues and
consideration of strategic initiatives.
5. The Clearing Committee held weekly meetings during March and April 2020 to monitor the impact of market volatility arising from COVID-19.
6. In addition to committee attendance, NZX directors may also sit on subsidiary boards. Lindsay Wright is director and chair of Smartshares Limited and attended
12/12 board meetings. John McMahon and Richard Bodman are directors of NZX Wealth Technologies Limited (Mr Bodman as chair) and attended 12/12
board meetings.
External committee member meeting attendance
Committee
memberBoard
Audit and Risk
Committee
Human
Resources and
Remuneration
Committee
Nomination
Committee
Clearing
Committee
Regulatory
Governance
Committee
Conflicts
Committee
Jayshree Das––––––2/2
David Flacks–––––2/2–
NZX Annual Report 2020
45

Audit and Risk Committee
NZX’s Audit and Risk Committee assists the board to fulfil
its responsibilities in relation to the NZX Group’s financial
practices and reporting, internal control environment,
internal audit, external audit and risk management. The
committee operates under a written charter, which sets out
the responsibilities and framework for the operation of the
committee. The charter is reviewed at least every two years
and was last reviewed in December 2020.
The committee must be comprised solely of NZX
directors, have a minimum of three members, have a
majority of members that are independent directors and
have at least one director with an accounting or financial
background. The makeup of the current members of this
committee complies with these requirements.
The committee’s chair, Lindsay Wright, holds a
bachelor of commerce degree from the University of
Auckland majoring in finance and accounting, and has
previously held the role of CFO of Deutsche New Zealand
(previously Bankers Trust) and was also formerly Chair of
the Audit Committee for the New Zealand Superannuation
Fund. Lindsay’s full biography is on page 21.
The committee chair and the board chair are
different people.
Management may only attend meetings at the
invitation of the committee and the committee routinely
has committee-only time and time with the external and
internal auditors without management present.
Human Resources and Remuneration Committee
NZX’s Human Resources and Remuneration Committee
assists the board in overseeing the management of the
human resources activities of NZX, including the
remuneration of employees. The committee operates
under a written charter, which sets out the responsibilities
and framework for the operation of the committee. The
charter is reviewed at least every two years and was last
reviewed in December 2020.
The committee must have a majority of members
that are independent directors. The makeup of the
current members of this committee complies with this
requirement.
Management may only attend meetings at the
invitation of the committee.
Nomination Committee
NZX’s Nomination Committee assists the board in
identifying and recommending to the board individuals for
nomination as directors and members of committees. The
committee operates under a written charter, which sets out
the responsibilities and framework for the operation of the
committee. The charter is reviewed at least every two years
and was last reviewed in December 2020.
The committee must have a majority of members that
are independent directors. The makeup of the current
members of this committee complies with this requirement.
Management may only attend meetings at the
invitation of the committee.
Technology Committee
NZX’s Technology Committee was formed in 2020 and
assists the board in oversight of the role and use of
technology in executing NZX’s strategy (including ICT
recommendations from Capital Markets 2029), meeting
regulatory requirements and standards and in supporting
the function of the markets operated and cleared by NZX
Clearing. The committee operates under a written charter,
which sets out the responsibilities and framework for the
operation of the committee. The charter was approved in
November 2020.
The committee must have a minimum of three
members. The committee may have a non-director as a
member (who must have skills and experience relevant to
the operation of the Committee). The makeup of the
current members of the committee complies with
these requirements.
Clearing Committee
The Clearing Committee assists the board in ensuring that
New Zealand Clearing Limited has adequate risk capital to
meet its obligations as the central counterparty clearing
house for NZX Clearing. The committee operates under a
written charter, which sets out the responsibilities and
framework for the operation of the committee. The charter
is reviewed at least every two years and was last reviewed
in December 2020.
The committee must have a minimum of three
members. The committee may have a non-director as a
member (who must have skills and experience relevant to
the operation of the committee). The makeup of the
current members of this committee complies with
these requirements.
TAKEOVER PROTOCOL
NZX’s Takeover Protocol sets out the procedure to be
followed if there is a takeover offer for NZX.
The protocol is reviewed at least every two years and
was last reviewed in August 2020.
Principle 4 – reporting and disclosure
The board should demand integrity in
financial and non-financial reporting,
and in the timeliness and balance of
corporate disclosures.
NZX Annual Report 2020
46

CONTINUOUS DISCLOSURE
NZX’s Continuous Disclosure Policy sets out NZX’s
arrangements to ensure material information is identified,
reported, assessed and, where required, disclosed to the
market in a timely manner.
NZX is committed to ensuring the timely disclosure of
material information about the NZX Group and to ensuring
that NZX complies with the NZX Listing Rules.
It is the responsibility of the board to monitor
compliance with the Continuous Disclosure Policy. The
board considers at each board meeting whether any
information discussed at the meeting requires disclosure.
The policy is reviewed at least annually and was last
reviewed and updated in November 2020.
CHARTERS AND POLICIES
The key corporate governance documents referred to in
this section, including policies and charters, are available
from NZX’s investor centre.
FINANCIAL REPORTING
NZX is committed to ensuring integrity and timeliness in
its financial reporting and in providing information to the
market and shareholders which reflects a considered view
on its present and future prospects.
The Audit and Risk Committee oversees the quality and
integrity of external financial reporting, including the
accuracy, completeness, balance and timeliness of
financial statements. It reviews NZX’s full and half-year
financial statements and makes recommendations to the
board concerning accounting policies, areas of judgement,
compliance with accounting standards, stock exchange
and legal requirements, and the results of the external
audit. All matters required to be addressed and for which
the committee has responsibility were addressed during
the reporting period.
NZX has published its full and half-year financial
statements that were prepared in accordance with relevant
financial standards. The full year financial statements are
set out on pages 62 to 99.
The Chief Executive and Chief Financial Officer have
confirmed in writing to the board that NZX’s external
financial reports present a true and fair view in all
material aspects.
NON-FINANCIAL REPORTING
NZX releases data on its non-financial performance
metrics each month through its monthly shareholder
metrics publications. It also releases quarterly revenue
and shareholder metrics, and regulation metrics
representing the key features of NZX’s activities in
regulating its markets.
This year NZX has continued to integrate its non-
financial reporting and disclosures to align with its financial
performance and strategy.
To support this, and provide increased clarity for
shareholders and the market on our financial performance
and execution of strategy, a series of five year financial and
non- financial targets are now being reported.
Further information is available from the NZX
investor centre.
Principle 5 – remuneration
The remuneration of directors and
executives should be transparent, fair
and reasonable.
DIRECTORS’ REMUNERATION
Shareholders fix the total remuneration available for
directors. The annual fee pool limit is $435,000 and was
approved by shareholders at the annual meeting in
April 2012.
The current fees paid to NZX’s directors are $50,000
per annum for directors and $100,000 for the chair.
Directors are not paid additional fees for being members
of committees or directors of subsidiaries. The number of
NZX directors has increased to 8 since the fee pool was
initially set.
Jayshree Das and David Flacks, being non-director
members of committees, were paid $465 per hour for work
on committee business as external members of the
Conflicts Committee and Regulatory Governance
Committee. These two committees have now been
disestablished as part of the restructure of NZX’s
regulation function.
Total remuneration received by each director in 2020 is
set out in Note 5 of the Statutory Information section on
page 107.
External committee member remuneration is
set out below.
External committee member remuneration
Committee memberCommittee member fees
Jayshree Das$6,409
David Flacks$11,393
Directors do not receive any performance or equity based
remuneration, or superannuation or retirement benefits.
This reflects the difference in the role of the directors,
which is to provide oversight and guide strategy, and the
role of management which is to operate the business and
execute NZX’s strategy.
REMUNERATION POLICY
NZX’s Remuneration Policy sets out the principles which
apply to the remuneration of NZX’s directors and
employees. In particular, director remuneration is paid in
NZX Annual Report 2020
47

the form of director fees, while employee remuneration will
include a mix of the following components:
—fixed remuneration (which includes base salary and
employer KiwiSaver contributions);
—short-term incentive plan (which is available to senior
employees);
—long-term incentive plan (which is available to members
of NZX’s executive team and senior management); and
—a one-off grant of $1,000 of NZX shares when an
employee starts at NZX to ensure that all employees
are shareholders.
The policy is reviewed at least annually and was last
reviewed in December 2020.
NZX’s short-term incentive plan is performance based,
with any short-term incentive plan payment being
conditional on (1) NZX’s financial performance and the
employee’s business unit’s performance; and (2) the
employee’s individual performance.
Potential short-term incentive plan payments are
generally between 15% and 25% of base salary, depending
upon the employee’s seniority and role.
Under NZX’s long-term incentive plan, executive team
members and senior managers may be awarded NZX
shares based on NZX’s long-term (generally three year)
performance. The plan is designed to:
—align managers’ rewards with improvement in
shareholder value;
—achieve business plans and corporate strategies;
—reward performance improvement; and
—retain key skills and competencies.
Chief Executive Officer remuneration
Mark Peterson commenced his role as NZX’s Chief
Executive Officer on 10 April 2017. In December 2020, the
board exercised its option to extend the initial 5 year term
by 2 years through to April 2024.
Mark Peterson’s remuneration is a mix of base salary
and short term and long-term incentive plan components.
Mark Peterson’s base salary for 2020 was $500,000.
Mark Peterson’s potential short-term incentive plan
payment for 2020 was $500,000 ($250,000 for on-target
performance). Mark Peterson’s actual short-term incentive
plan payment for 2020 was $360,000, this will be paid in
February 2021. Mark Peterson’s 2020 STI comprised two
components. The first component was based on NZX’s
financial performance against target. The second
component was based on delivery against the key
elements of the five year strategic plan which included
refocusing the business back on the core markets
business, building on the growth opportunities, leading
the business effectively and further developing our
market engagement.
Mark Peterson is currently allocated a long-term
incentive performance share rights plan to the value of
$250,000 each year. Vesting is dependent on NZX meeting
performance hurdles in respect of NZX’s total return to
shareholders and its earnings per share for the prior five
year period, and on Mark Peterson remaining an employee
at the applicable vesting date.
Principle 6 – risk management
Directors should have a sound
understanding of the material risks faced
by the issuer and how to manage them.
The board should regularly verify that
the issuer has appropriate processes
that identify and manage potential and
material risks.
RISK MANAGEMENT FRAMEWORK
The board is responsible for the establishment and
oversight of NZX’s risk management framework, together
with setting NZX’s overall risk tolerance.
Significant risks are discussed at each board meeting,
or as required.
The board has established an Audit and Risk
Committee with responsibility to:
—review and provide feedback in respect of the principal
risks set out in NZX’s risk register;
—ensure that management has established a risk
management framework which includes policies and
procedures to effectively identify, manage and monitor
NZX’s principal risks; and
—monitor compliance with, and assess the effectiveness
of, the risk management framework.
The committee reviews the risk register every quarter. The
committee also reviews the risk management framework
annually. The committee receives reports on the operation
of risk management policies and procedures.
The executive team and senior management are
required to regularly identify the major risks affecting the
business, record them in the risk register and develop
structures, practices and processes to manage and
monitor these risks.
NZX maintains insurance policies that it considers
adequate to meet its insurable risks.
The board is satisfied that NZX has in place a risk
management framework to effectively identify, manage
and monitor NZX’s principal risks, including a Risk Appetite
Statement, Conflict Management Policy, Continuous
Disclosure Policy, Delegated Authority Policy, Financial
Products Trading Policy, Fit and Proper Policy, IT
Acceptable Use Policy and Protected Disclosures Policy.
NZX engages EY to carry out internal audit functions on
various parts of its operations, including assessing the
effectiveness of NZX’s risk management policies and
procedures. Additionally, independent assurance is
NZX Annual Report 2020
48

provided and reviews are undertaken on matters such as
risk capital, operational controls, IT/software security and
anti-money laundering procedures.
KEY RISKS
NZX’s material risks for 2020 and how these are being
managed are outlined and discussed on pages 52 to 53.
CHIEF EXECUTIVE OFFICER AND CHIEF
FINANCIAL OFFICER ASSURANCE
The Chief Executive Officer and Chief Financial Officer
have provided the board with written confirmation that
NZX’s 2020 financial statements are founded on a sound
system of risk management and internal compliance and
control; and that all such systems are operating efficiently
and effectively in all material respects.
Principle 7 – auditors
The board should ensure the quality
and independence of the external
audit process.
NZX’s Audit and Risk Committee makes recommendations
to the board on the appointment and removal of the
external auditor. The committee also monitors the
independence and effectiveness of the external auditor,
and reviews and approves any non-audit services
performed by the external auditor. An External Auditor
Independence Policy sets out the services that may or may
not be performed by the external auditor. This policy was
last reviewed in June 2020.
The committee regularly meets with the external
auditor to approve their terms of engagement, audit
partner rotation (at least every five years) and audit fee,
and to review and provide feedback in respect of the
annual audit plan. A comprehensive review and formal
assessment of the independence and effectiveness of the
external auditor is undertaken periodically. The committee
routinely has time with NZX’s external auditor, KPMG,
without management present.
KPMG attends the annual meeting, and the lead
audit partner is available to answer questions from
shareholders at that meeting. KPMG attended the 2019
virtual annual meeting.
KPMG has provided the Audit and Risk Committee with
written confirmation that, in their view, they were able to
operate independently during the year.
NZX has appointed EY to perform a number of internal
audit functions. The Audit and Risk Committee is
responsible for overseeing the independence and
objectivity of the internal audit function and for reviewing
and monitoring the internal audit work plan, reports from
internal audit and management responses. The committee
routinely has time with EY without management present.
Principle 8 – shareholder rights
and relations
The board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.
INFORMATION FOR SHAREHOLDERS
NZX seeks to ensure that investors understand its activities
by communicating effectively with them and giving them
access to clear and balanced information.
The key information channels are NZX’s website,
announcements and media releases, social media
channels, the annual and interim report, investor days and
the annual meeting.
NZX’s investor centre contains annual and interim
reports, investor presentations, dividend information and
other information relating to NZX (including key corporate
governance documents).
COMMUNICATING WITH SHAREHOLDERS
NZX’s investor centre sets out NZX’s Chief Financial
Officer’s and Company Secretary’s contact details
for communications from shareholders. NZX responds
to all shareholder communications within a
reasonable timeframe.
NZX provides options for shareholders to receive and
send communications electronically, to and from both NZX
and its share registrar.
SHAREHOLDER VOTING RIGHTS
In accordance with the Companies Act 1993, NZX’s
Constitution and the NZX Listing Rules, NZX refers major
decisions which may change the nature of NZX to
shareholders for approval.
NZX conducts voting at its shareholder meetings by
way of a poll and on the basis of one share, one vote.
Further information on shareholder voting rights is set out
in NZX’s Constitution.
NOTICE OF ANNUAL MEETING
NZX’s annual meeting was held on 31 March 2020. The
notice of the meeting was released to the market on
9 March 2020 and was posted on NZX’s investor centre
i.e. 16 working days’ notice. This did not meet
recommendation 8.5 of the NZX Code to provide at least
20 working days’ notice of the meeting. NZX’s planning for
its 2020 annual meeting was impacted by COVID-19. NZX
expects to provide at least 20 working days notice for its
2021 annual meeting. The 2021 meeting will be held on
8 April 2021 in Tauranga. A webcast of the meeting will be
made available to shareholders.
NZX Annual Report 2020
49

NZX Annual Report 2020
50

Risk
Reporting
NZX Annual Report 2020
51

NZX Annual Report 2020
52
RiskThe risk and its impactHow we are responding
StrategicStrategic risks that NZX faces
include the composition of our
business and the strategic
direction we choose to take,
changes in financial markets
and the business environment
to adapt our strategy and,
where appropriate, react

—We set a five-year strategy in 2017 which established our strategic direction
through 2022. We regularly revisit this strategy, most recently in 2020 and we
report progress annually
—Our strategy includes diversifying operating earnings and building resilience
into our business model
—We engage with a broad range of stakeholders and monitor changes in the
business environment to adapt our strategy and react as a ‘fast follower’
as needed
—We monitor business unit performance to identify issues and opportunities
early and address any people and resourcing risks
—We publish monthly operating metrics and quarterly revenue and operating
metrics to enhance monitoring of performance
FinancialFinancial risks arise through
various sources including:
adverse strategic decisions
(including inappropriate
resource allocation); general
market risk – including lower
numbers of listed issuers, less
listing and capital raisings,
lower levels of trading activity,
market capitalisation declines;
counterparty credit risk in
operating the clearing house;
and operational errors,
undetected fraud or poor
execution of projects that are
designed to deliver the
strategy
—We assess our financial risks from both a strategic and operational
perspective
—We manage balance sheet and counterparty risks to an acceptable level
through a framework of policies and financial controls
—We regularly monitor an extensive range of financial metrics and risks across
our businesses
—The counterparty credit risk associated with NZX’s clearing function is
managed by the clearing house’s risk management framework, which is
aligned to international practice. This model ensures that the clearing house
holds sufficient prefunded capital to manage the default of the largest
Participant in extreme but plausible conditions.
—We have a governance framework including a delegated authority policy
which sets limits and outlines authority for committing NZX to expenditure
—We have people, policies, processes, systems, controls and procedures in
place designed to meet our operational expectations and benchmarks, and
ensure project delivery effectiveness
Information
Technology /
Cybersecurity
Risk
Information technology plays a
critical role for our business.
We recognise we are an
important component to the
New Zealand Capital Markets.
IT risk arises when the
technology is not reliable or
available and/or does not
operate accurately. The
technology environment must
also be secure and resilient to
external cyber threats which
are evolving at an ever-
increasing pace. The
technology environment is also
dependent on other
Participants in the capital
markets ecosystem
—We seek to have appropriate processes, procedures and resources in place to
manage IT/cybersecurity risks. We acknowledge the impact of technology
related issues experienced in 2020 and this remains an area of critical focus
and ongoing investment.
—We will continue to manage against cyber risks; acknowledging that
cybersecurity activities and mitigation activities need to continually evolve in
a constantly changing environment. We provide staff with cybersecurity
training at regular intervals throughout the year
—Within the context of a need for continuous improvement, we now actively
monitor our key systems with regular reviews of availability against service
levels (where applicable) and targets. Regular testing is performed on key
systems / services to determine throughput and capacity and we aim to
enhance our systems in a timely manner
—We seek to have contingency plans in place for disruptions or a loss of service
to Tier 1 technology systems. As part of our enhancement plans, we intend to
hold crisis planning across the capital markets ecosystem and improve our
crisis incident management and communications with the market and other
stakeholders
—We replace ageing technology as part of lifecycle management; this is
undertaken in a planned / phased approach to system architecture with
security, future capacity, growth and supportability driving key design
decisions
—We seek to maintain active engagement with our vendor partners who
provide critical systems and applications, with a key focus on ensuring
partners and suppliers understand our business, objectives and criticality of
all market operations
—We have a disaster recovery testing program in place, including at least
annually for financial markets systems / operations
—We have a board Technology Committee, Cybersecurity Management
Committee and a cybersecurity strategy and response plans
—We have measures in place to identify and protect against data security
threats
—We are progressing engagement with the capital markets ecosystem to
develop an IT roadmap for the future and to improve our engagement with the
market on technology issues
—We train our staff and seek to have suitably qualified and experienced
information technology staff
Risk Reporting

NZX Annual Report 2020
53
RiskThe risk and its impactHow we are responding
Compliance,
Legal &
Regulatory
Risk that NZX breaches its
compliance, legal and ethical
conduct obligations (including
for example NZX’s licensed
market operator license, MIS
license, supervisor, regulatory
and customer commitments)
leading to reputational
damage, adverse regulatory
outcomes, fines or breach of
contract
—We seek to mitigate compliance, legal and regulatory risks through adherence
to internal policies and procedures as well as good corporate governance
—We train and educate our operational staff so they understand the obligations
applicable to their role, and the related requirements, policies and procedures
—We have regular independent audits and periodic reviews of our adherence to
compliance, legal and regulatory obligations
—We aim to engage with government, regulators and industry Participants, at
management, CEO and Board level, on market structure issues to promote the
best industry-wide efficiency outcomes
—Where appropriate, we address regulatory concerns by developing and
implementing action plans with the regulators
—We implemented a new regulatory model in 2020 for the structural separation
of NZX’s commercial and regulatory roles. The regulation function is now
carried out by an independently-governed agency and enhances existing
conflicts management arrangements in this area
Customer &
Stakeholder
Risk that NZX does not focus on
customers to ensure
appropriate customer
outcomes
—We acknowledge the importance of customers within our strategy. The group
is structured around key customer segments
—We aim to consider the impact of NZX-driven changes on our customers
—We aim to have regular and open engagement with customers and wider
stakeholders to seek feedback on our performance
—We recognise the balance that is required between the requirements of the
market and the cost to our customers
Operational /
Business
Continuity
The risk of unexpected failure
in the day-to-day operations
caused by technical failure or
people or processes
—We routinely review and refine our operational procedures and controls
—We routinely assess how we can make improvements to the resilience and
reliability of our operations, with an ongoing focus on automation
—We have regular training and suitably qualified and experienced
operational staff
—We have regular independent audits and periodic reviews of our operational
processes and activities
—We have business continuity plans that are tested at regular intervals and have
in place remote working procedures
—We have an incident management framework requiring that timely attention
be paid to rectifying incidents as they occur. Post incident review ensures
learnings from incidents are implemented
ReputationalConfidence in the market is
critical, hence the risk arising
from negative perception on
the part of both existing and
prospective customers,
employees, counterparties,
regulators or other
stakeholders can adversely
affect NZX’s ability to maintain
existing, or establish new,
customer relationships
—We recognise NZX has a leadership role to perform across the capital markets
ecosystem
—Understanding the importance of our reputation and protecting it is a core
component of our decision making and actions
—We aim to have regular and open engagement with customers and wider
stakeholders to seek feedback on our performance
—Where appropriate, we interact with our regulators and government at
management, CEO and Board level to facilitate thorough coverage of issues
—We sponsored Capital Markets 2029 which was an industry-led initiative to
identify opportunities to grow New Zealand’s capital markets. This included
receiving feedback from market Participants on the perception of NZX and its
role as market operator
Human
Resources
(including
Culture,
Conduct and
Health & Safety)
Culture influences how
management and staff behave
on a daily basis, and enables
NZX to deliver on strategy. An
effective culture within NZX
includes consistently putting
customers at the centre of
decision-making, product
design, sales and advice
processes, and all day-to-day
activities
—We seek to operate a healthy, open, respectful culture. One where teamwork,
diverse thought, challenge and clarity of decisions are all embraced
—Our company values are based on Integrity, Resilient, Open, Creative and
Deliver behaviours.
—We seek to operate to best practice HR standards (including health & safety)
—We are committed to continually evolving and promoting an effective risk
management culture and one that creates an environment of risk awareness
and responsiveness
—Our expectations are that our people will uphold a high standard of
professionalism and integrity. Employees must adhere to a Code of Conduct
setting out our company values, legal obligations and policies
—We regularly measure and monitor staff engagement via staff engagement
surveys which have measured a consistent increase in engagement in
recent years

NZX Annual Report 2020
54
Management Commentary
Overview
A breakdown of NZX’s financial results by business unit is summarised in the following table:
Operating RevenueOperating Expenses
Operating Earnings
(EBITDA)
1
Operating
MarginFTEs
20202019Change20202019Change20202019Change2020201920202019
$000$000%$000$000%$000$000%
Issuer
Relationships
15,19214,8872.0%
Secondary
Markets
27,34321,87025.0%
Data &
Insights
16,14614,9348.1%
Markets
Sub-total
58,68151,69113.5%15,25312,890(18.3%)43,42838,80111.9%74.0%75.1%74.764.5
Funds
Management
13,66912,8816.1%8,0716,833(18.1%)5,5986,048(7.4%)41.0%47.0%52.845.2
Wealth
Technologies
2,4251,69343.2%2,6892,573(4.5%)(264)(880)70.0%(10.9%)(52.0%)55.745.1
Corporate
Services
2
205475N/A15,07213,010(15.8%)(14,867)(12,535)(18.6%)N/AN/A56.650.9
NZX Commercial
Operations Sub-
total74,98066,74012.3%41,08535,306(16.4%)33,89531,4347.8%45.2%47.1%239.8205.7
Regulation3,4462,80822.7%2,9452,878(2.3%)501(70)(815.7%)N/AN/A17.520.5
NZX Group
Total78,42669,54812.8%44,03038,184(15.3%)34,39631,3649.7%43.9%45.1%257.3226.2
1 Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, loss on disposal of business and property, plant and equipment and gain on
lease modification. 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 commercial business units and subsidiaries.
Operating Earnings (EBITDA) has increased 9.7% to $34.396 million, with:
• operating revenue increasing 12.8% to $78.426 million; and

NZX Annual Report 2020
55
• operating expenses increasing 15.3% to $44.030 million.
The operating revenue and operating expenses are discussed in the following pages.
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.
Key Metrics
The key metrics for 2020 as outlined in the Investor Presentation in February 2020 are summarised in the table
below:
External dependencies
2020 full year
deliverables2020 full year actual
NZX GroupOperating earnings (EBITDA)
1
$30 - $33.5 million$34.4 million (up 9.7%)
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)
$17.6 billion (down 5.5%)
Secondary
Markets
Total value traded
• Participant activity
levels drive value traded
• No major market
correction
$38.6 billion$53.7 billion (up 41.8%)
Dairy Derivatives lots traded
• Participant activity
levels drive lots traded
0.45 - 0.55 million lots360,887 lots (up 0.5%)
Data & Insights
Revenue growth (in
subscriptions, licenses and dairy
subscriptions changing revenue
mix)
• Dependent on core
markets growth
Average revenue
growth: 3.0%
$16.1 million (up 8.1%)
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%
$5.08 billion (up 28.0%.
Average FUM for year up
20.4%)
Wealth
Technologies
Total Funds Under Administration
• Investment market
returns impacts FUA (all
asset classes)
• No major market
correction
Migrate new clients
onto the platform
$7.19 billion (up 213.4%)
three new customers
1 Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, loss on disposal of business and property, plant and equipment and gain on
lease modification. 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 Annual Report 2020
56
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.
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 year have been driven by
strong debt listings (retail and wholesale); with total
new capital listed of $5.98 billion down 16.4% on last
year.
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 $11.65 billion up 1.2%
on last year.
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
decreased to 34 (2019: 35), with the resignation of
Deutsche Securities Australia, in line with its global
withdrawal from its equities businesses, the resignation
of Straits Financial from the Derivatives market, and
the accreditation of Snowball Effect as a Sponsor
Participant.
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 services such as stock lending
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 has been
positively impacted by the fee changes effective 1 July
2019, when the trading fee cap level was raised and
the clearing fees tiers reduced. Additionally the total
value traded and cleared ($53.7 billion) is 41.8%
higher than last year.
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 decreased, whilst the
number of lots traded grew 0.5% the revenue was
adversely impacted by lower margin fees due to the
reduced OCR rate.
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 includes enhancements to
the electricity market systems, including the market
real time pricing project, which is due for completion
in 2022. Additionally we are developing the carbon
managed auction service for the Ministry for the
Environment, the operation of which will commence
in 2021.
Data & Insights
Royalties from terminals relate to the provision of
capital markets real time data for display on terminals
(retail and professional). Royalties from terminals
increased revenue relates to higher retail terminal
numbers and increased pricing of professional terminals.
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 21.9%
is driven by increased non-display usage. Audit and
back dated licencing revenue remained high at
$1.07 million (2019: $1.29 million).

NZX Annual Report 2020
57
Dairy data subscriptions relate to the sale of dairy
data and analytical products. Dairy data subscription
revenue has decreased 16.5% impacted by churn of
dairy subscriptions and the deferral of the 2020 dairy
conference.
Connectivity revenue relates to the provision of
connectivity and access to the NZX operated markets
for market participants and data vendors.
Connectivity revenue has increased in line with
increased connectivity requirements from both market
participants and data vendors.
Funds Management
Funds management revenue is generated from:
• Funds under management based revenue which
relates to variable funds under management (FUM)
fees net of fund expenses. 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); and
• Member based revenue which includes fixed
membership administration fees and other
member services.
The FUM based revenue has increased 19.1% driven
by:
• higher average FUM over the period (up 20.4%),
arising from a combination of market returns and
positive net cash flows ($803 million), including from
the first institutional investor into a separately
managed protfolio. FUM at 31 December 2020 has
grown to $5.08 billion up 28.0% on last year; offset
by
• fund expense increases associated with new ETFs,
and the segregation and unitisation of SuperLife
Invest in 2019 (which provided access for wholesale
clients); partially reduced by efficiencies from the
changed operating model in late 2019 (including
changing custodian for some funds and internalising
management of the Cash Funds) and
improvements to supplier arrangements.
Investor numbers (ETFs and SuperLife) have increased
6.0%, however member based revenue has been
adversely impacted by a historical pricing adjustment.
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 part of the new
platform that is in production. The administration
service fees are based on funds under administration
(FUA) and have been driven by:
• New platform – FUA continues to increase, with
three new clients migrated onto the platform
through 2020; and
• OE (legacy) platform – the number of customers is
unchanged, with 23% growth in FUA.
FUA at 31 December 2020 has grown to $7.19 billion
up 213.4% on last year.
Corporate
Other corporate revenue primarily relates to the short
term sub lease of part of the Wellington premises
which ceased in June 2020 and nzx.com advertising
revenue which ceased in May 2020.
Regulation (NZ RegCo)
Regulatory fees relate to issuer compliance,
participant compliance and market surveillance
activities. Issuer compliance services comprise time
spent by NZ RegCo reviewing listing and secondary
capital raising documents, requests for listing rule
waivers, and other significant issuer matters.
Participant compliance services comprise time spent
by NZ RegCo reviewing participant applications.
Market surveillance activities are recoverable from
market participants. In 2020 NZ RegCo undertook a
higher level of recoverable fee based work than in the
previous year.

NZX Annual Report 2020
58
Additionally NZ RegCo receives an internal allocation
of annual listing fees and annual participants fees,
which is set in advance based on the services expected
to be provided by NZ RegCo.
Operating Expenses
The Markets businesses have invested to deliver
technology solutions to both increase trading and
clearing system capacity and to maintain market
stability. We continue to invest for customer growth
in the Funds Management and Wealth Technologies
businesses.
Personnel costs
Personnel costs are made up of:
• Salary costs (including bonuses, 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, lower levels of annual leave taken
(a COVID-19 lockdown impact) and the movement in
average FTEs arising from:
• Securities IT team additional resources to deliver
technology solutions to increase trading and
clearing system capacity and maintaining market
stability;
• Issuer Relationships additional sales roles focused
on origination, with active pipeline development
and conversion;
• Energy contractors to assist with delivering
consulting and development revenue including the
electricity market real time pricing project and the
carbon managed auction service;
• Smartshares additional sales and operational
resources to support the client and FUM growth in
2020, plus the full year cost impact from the
strengthening of the leadership team in 2019 (COO
and CIO).
• Wealth Technologies additional sales and
operational resources to support the new clients
migrated onto the platform in 2020;
• Corporate Services additional legal, HR and
communications resources to support the
Smartshares and Wealth Technologies businesses.
As well as additional project management
resources for energy’s increased development
revenue generating projects; and
• the number of vacancies throughout the year.
Capitalisation of internal development resources
(2020: $5.93 million; 2019: $4.29 million) primarily
relates to Wealth Technologies' core platform, NZX's
trading system upgrade and the Network
Transformation project.
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.
The current year focus has been on increasing trading
and clearing system capacity and maintaining market
stability, consequently IT costs are higher than last
year due to:
• Network Transformation project costs (which
strengthened NZX’s cyber security);
• additional license costs to improve resilience of
NZX's clearing and settlement system (BaNCS); and
• the modification of existing security services plus
the implementation of additional Denial of Service
(DDoS) security services.
Additionally the Smartshares business has
implemented the Bloomberg AIM and BSKT (front and
middle office) operating system during the year.

NZX Annual Report 2020
59
Professional Fees
Professional fees, including legal expenses, assurance
costs and advisory / consultancy fees, include those
relating to:
• Independent / external reviews of:
• NZX clearing and settlement system (BaNCS)
technical issues arising from significantly
increased trading volumes, messaging,
notifications and shareholder balance enquiries;
and
• DDoS attacks on the nzx.com website.
• Smartshares investments for growth e.g. four new
ETF funds (launched July 2020), set up of stock
lending and borrowing services, the Asia Region
Funds Passport application, and the enhancement
of Smartshares digital tools. Plus costs
associated with the historical pricing matters;
• the assurance programme – internal audits, energy
audits and consulting obligations under the
Electricity Authority contracts, annual conflicts
review, funds conduct risk assessment review; and
• stock lending and borrowing (SLB) costs and
terminal royalty audit fees; both vary in proportion
to their related revenues, with costs and revenues
recognised on a gross basis.
Marketing
Marketing costs relate primarily to Smartshares,
marketing the core exchange businesses and the
investor relations programme. Marketing spend during
2020 was lower due to the impact of the COVID-19
lockdown.
Other Expenses
Other expenses relate to premises related costs,
insurance, directors fees, travel, external audit costs,
outsourced payroll system, corporate memberships,
statutory/compliance costs and non recoverable GST
(on the Clearing House, Funds Management and
Wealth Technologies businesses). Other expenses
were lower due to reduced travel during the
COVID-19 lockdown, offset by higher insurance and
compliance costs.
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
decreased slightly.
Non-operating Income and Expenses
Net finance expense comprises interest income (on
operational cash balances, Clearing House risk capital
and regulatory working capital), interest expenses (on
the subordinated note, loans, overdrafts facility and
lease liabilities), unrealised fair value gain on
investment and foreign exchange gains/(losses).
Increased net finance costs result from the reduced
interest income due to the lower OCR interest rate.
Depreciation and amortisation expenses have
decreased due to:
• the clearing system (BaNCS) being fully amortised
in September 2019; offset by
• additional Wealth Technologies amortisation of the
core platform and on migrations of new clients
during the year; and
• new lease of IT equipment from May 2019.
The effective tax rate is higher than the statutory rate
of 28% due to non-deductible items.

NZX Annual Report 2020
60
Directors' Responsibility Statement
The directors are responsible for the preparation, in
accordance with New Zealand law and generally
accepted accounting practice, of financial statements
which give a true and fair view of the financial position
of NZX Limited and its subsidiaries (the NZX Group)
as at 31 December 2020 and the results of their
operations and cash flows for the year ended
31 December 2020.
The directors consider that the financial statements
of the NZX Group have been prepared using
accounting policies appropriate to the NZX Group’s
circumstances, consistently applied and supported
by reasonable and prudent judgments and estimates,
and that all applicable New Zealand Equivalents to
International Financial Reporting Standards have been
followed.
The directors are pleased to present the financial
statements of the NZX Group for the year ended
31 December 2020.
The financial statements were authorised for issue for
and on behalf of the directors on 15 February 2021.
James Miller
Chair of the Board
Lindsay Wright
Chair of the Audit and
Risk Committee

61
Financial
Statements
NZX Annual Report 2020
61

NZX Annual Report 2020
62The accompanying notes form an integral part of these financial statements
Group Income Statement
For the year ended 31 December 2020
Note
2020
$000
2019
$000
Operating revenue878,42669,548
Operating expenses9(44,030)(38,184)
Earnings before net finance expense, income tax, depreciation, amortisation, loss
on disposal of businesses and property, plant and equipment, and gain on lease
modification (EBITDA)
1
34,39631,364
Net finance expense10(2,037)(2,153)
Loss on disposal of businesses and property, plant and equipment-(83)
Depreciation and amortisation expense(8,293)(8,595)
Gain on lease modification6558-
Profit before income tax24,62420,533
Income tax expense12(7,038)(5,888)
Profit for the year17,58614,645
Earnings per share
Basic (cents per share)136.35.3
Diluted (cents per share)136.35.3
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
Group Statement of Comprehensive Income
For the year ended 31 December 2020
2020
$000
2019
$000
Profit for the year17,58614,645
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Foreign currency translation differences-(1)
Total other comprehensive income-(1)
Total comprehensive income for the year17,58614,644

NZX Annual Report 2020
The accompanying notes form an integral part of these financial statements63
Group Statement of Changes in Equity
For the year ended 31 December 2020
Note
Share
Capital
$000
Retained
Earnings
$000
Translation
Reserve
$000
Total Equity
$000
Balance at 1 January 201951,06610,386(45)61,407
Profit for the year-14,645-14,645
Foreign currency translation differences--(1)(1)
Total comprehensive income for the year-14,645(1)14,644
Transactions with owners recorded directly in
equity:
Dividends paid21-(16,662)-(16,662)
Issue of shares203,834--3,834
Share based payments20695--695
Cancellation of non-vesting shares20(72)72--
Total transactions with owners recorded directly in
equity
4,457(16,590)-(12,133)
Balance at 31 December 201955,5238,441(46)63,918
Profit for the year-17,586-17,586
Foreign currency translation differences----
Total comprehensive income for the year-17,586-17,586
Transactions with owners recorded directly in
equity:
Dividends paid21-(16,867)-(16,867)
Issue of shares202,148--2,148
Share based payments20976--976
Cancellation of non-vesting shares20(130)--(130)
Total transactions with owners recorded directly in
equity
2,994(16,867)-(13,873)
Balance at 31 December 202058,5179,160(46)67,631

NZX Annual Report 2020
64The accompanying notes form an integral part of these financial statements
Group Statement of Financial Position
As at 31 December 2020
Note
31 December
2020
$000
31 December
2019
$000
Current assets
Cash and cash equivalents1432,77527,740
Cash and cash equivalents - restricted1420,00020,000
Funds held on behalf of third parties11104,68479,667
Receivables and prepayments1510,8409,006
Total current assets168,299136,413
Non-current assets
Property, plant & equipment162,1462,612
Right-of-use lease assets65,1085,826
Goodwill430,22230,222
Other intangible assets340,87937,498
Total non-current assets78,35576,158
Total assets246,654212,571
Current liabilities
Funds held on behalf of third parties11104,68479,667
Trade payables177,6843,782
Other liabilities - current1814,17612,276
Lease liabilities61,3881,439
Current tax liability122,2741,776
Total current liabilities130,20698,940
Non-current liabilities
Non-current other liabilities18484323
Lease liabilities65,7167,172
Interest bearing liabilities1938,91138,852
Deferred tax liability123,7063,366
Total non-current liabilities48,81749,713
Total liabilities179,023148,653
Net assets67,63163,918
Equity
Share capital2058,51755,523
Retained earnings9,1608,441
Translation reserve(46)(46)
Total equity attributable to shareholders67,63163,918

NZX Annual Report 2020
The accompanying notes form an integral part of these financial statements65
Group Statement of Cash Flows
For the year ended 31 December 2020
Note
2020
$000
2019
$000
Cash flows from operating activities
Receipts from customers78,10469,944
Net interest paid(1,823)(2,091)
Payments to suppliers and employees(38,847)(37,029)
Income tax paid12(6,200)(6,034)
Net cash provided by operating activities1431,23424,790
Cash flows from investing activities
Net cash paid on disposal of businesses and acquisition-(4)
Cash received from short term investment26
Payments for property, plant and equipment16(483)(708)
Payments for intangible assets3(9,489)(7,594)
Net cash used in investing activities(9,970)(8,300)
Cash flows from financing activities
Payment of lease liabilities(1,467)(1,288)
Dividends paid(14,762)(12,847)
Net cash (used in)/provided by financing activities(16,229)(14,135)
Net increase in cash and cash equivalents5,0352,355
Cash and cash equivalents at the beginning of the year47,74045,385
Cash and cash equivalents at the end of the year1452,77547,740

NZX Annual Report 2020
66
Notes to the Group Financial
Statements
For the year ended 31 December 2020
1. Reporting entity and statutory base
Reporting entity
These consolidated financial statements are for NZX Limited (the Company) and its subsidiaries (together
referred to as the Group) as at and for the year ended 31 December 2020.
The Group operates New Zealand securities, derivatives and energy markets, including maintaining the
infrastructure on which they operate. It provides funds management services including superannuation and
Exchange Traded Funds (ETFs), as well as developing 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 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). These financial statements
have been prepared in accordance with the Companies Act 1993 and the Financial Reporting Act 2013. 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.
Basis of preparation
The Group financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). They comply with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for profit
oriented entities. The financial statements also comply with International Financial Reporting Standards (IFRS).
The measurement basis adopted in the preparation of these financial statements is historical cost, modified
by the revaluation of certain financial instruments as identified in the accompanying notes. These financial
statements are presented in New Zealand Dollars ($), which is the Company’s functional currency. All financial
information presented in New Zealand dollars has been rounded to the nearest thousand, except when
otherwise indicated.
The Group notes that the COVID-19 pandemic in the year had no material adverse impact on the Group.

NZX Annual Report 2020
67
Basis of consolidation
The Group financial statements are prepared by consolidating the financial statements of all the entities that
comprise the Group, being the Company and its subsidiaries. Consistent accounting policies across the
parent and all subsidiaries are employed in the preparation and presentation of the Group financial statements.
i.Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the
date on which control is transferred to the Group. On acquisition, the assets, liabilities and contingent
liabilities of a subsidiary are measured at their fair values at the date of acquisition. In determining the fair
value of assets acquired, the Group assesses identifiable intangible assets including brands, intellectual
property, software, management rights and any other identifiable intangible assets using recognised valuation
methodologies and with reference to suitably qualified experts. Any excess of the cost of acquisition over the
fair values of the identifiable net assets acquired is recognised as goodwill.
ii.Investments in subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
In preparing the Group financial statements all intercompany balances and transactions, and unrealised
profits arising within the Group are eliminated in full.
Accounting policies
Accounting policies that summarise the measurement basis used and are relevant to the understanding of the
financial statements are provided throughout the accompanying notes.
The accounting policies adopted have been applied consistently throughout the periods presented in these
financial statements.
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2021, and have not been applied in preparing these financial statements. The
Group does not plan to adopt these standards early. None of these standards are expected to have a
significant effect on the financial statements of the Group.
Presentational changes
Certain amounts in the comparative information have been reclassified to ensure consistency with the current
period's presentation.
Accounting estimates and judgements
The preparation of the financial statements in conformity with NZ IFRS requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
The principal areas of judgement for the Group in preparing these financial statements that have a significant
risk of resulting in a material adjustment within the next financial year, including information about
assumptions and estimation uncertainties, are set out in: