NZX H1 2023 Results & Interim Report Published

NZX Interim Report
2023

Half-year review 4
Financial statements 20
Notes to the financial statements 25
Independent review report 40
Getting in touch 42
The report outlines the work the NZX Group has
done in the first half of 2023 to deliver sustainable
wealth, value and opportunities for all.
As New Zealand’s Exchange, we are proud of
our record in supporting the growth and global
ambitions of local companies.
Our corporate governance policies are available
online at: 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.
About this reportContents

HOW WE PERFORMED — NZX GROUP’S KEY
PERFORMANCE MEASURES
NZX’s growth strategy is to expand our product range in
Capital Markets and drive scale and operating leverage
across our businesses. While the first half of 2023 has seen
headwinds due to the market cycle, we continue to make
progress towards these objectives.
As the NZX Group key performance results indicate, the
macroeconomic environment continues to challenge
equity capital raising and trading activity. However, at a
time in the economic cycle where interest rates continue to
rise, this has created a tailwind for debt market activity.
NZX is confident that as inflation starts to return to the
Reserve Bank of New Zealand’s target range, equity market
activity levels will increase.
Beyond equity market activity, the remaining parts of our
business have continued to perform strongly. This has
been particularly notable in:
—The dairy market partnership with Singapore Exchange
(SGX Group);
—our Information Services (data) business;
—Smartshares, which continues to go from strength to
strength; and
—Wealth Technologies, which has won five clients during
the period that will be transitioned onto the platform
over the remainder of 2023 and 2024.
Our operating platform and corporate functions have
continued to advance their capability, capacity and
resilience. It was pleasing to note that NZX met all its market
obligations in 2022 in the Financial Markets Authority’s
annual market obligations review published in June.
Half-year
Review 2023
DEMONSTRATING PROGRESS & RESILIENCE
IN CHALLENGING TIMES
NZX Limited (“NZX” or “the Company”) has produced
a strong half-year financial result, despite the ongoing
challenging environment for global markets. We have
maintained the positive momentum of the last year in
delivering on our growth strategy.
In H1 2023, the Company lifted operating earnings
despite continuing market softness and tight financial
conditions. This demonstrates the resilience and diversity of
the NZX Group business and earnings base, and the
breadth of offerings available for companies to access
capital. This is reflected in our results. 
RESULT OVERVIEW & KEY HIGHLIGHTS
The Company generated H1 2023 operating earnings
(EBITDA
1
) of $20.0 million (H1 2022 $17.4 million), an
improvement of 15.0%. Operating earnings (EBITDA)
excluding one-off acquisition, integration and restructure
costs increased 16.8% to $20.6 million (H1 2022 $17.6
million), with:
—operating revenue increasing 16.9% to $54.0 million; and
—operating expenses, excluding acquisition and
integration costs, increasing 16.9% to $33.4 million.
NZX produced an unaudited net profit after tax (NPAT)
of $7.0 million for the 2023 half year (H1 2022 $7.4 million),
a year-on-year decrease of 5.6%, with the decline largely
resulting from additional amortisation (relating to NZX
Wealth Technologies’ migrations and Smartshares’
acquisitions) along with higher funding costs on the
Company’s increased debt level.
The Directors have declared a fully-imputed interim
dividend of 3.0 cents per share (H1 2022 3.0 cents) to be
paid on 5 October 2023 to shareholders registered as at
the record date of 21 September 2023.
NZX Interim Report 2023
01
How we performed - NZX Group's key performance measures
NZX’s growth strategy is to expand our product range in Capital Markets and drive scale and operating
leverage across our businesses. While the first half of 2023 has seen headwinds due to the market cycle, we
continue to make progress towards these objectives.
As the NZX Group key performance results indicate, the macroeconomic environment continues to challenge
equity capital raising and trading activity. However, at a time in the economic cycle where interest rates
continue to rise, this has created a tailwind for debt market activity. NZX is confident that as inflation starts to
return to the Reserve Bank of New Zealand’s target range, equity market activity levels will increase.
Performance indicatorsFY23 TargetH1-23H1-22% Change
Operating earnings (EBITDA) pre acquisition, integration &
restructure costs ($ million)
1
36.0 - 40.520.617.616.8%
Capital listed & raised ($ billion)16.07.29.4(23.7%)
Total value traded ($ billion)40.018.020.8(13.4%)
Information Services (previously Data & Insights) revenue
($ million)
2
Grow 6.9%10.49.015.4%
Funds under management ($ billion)Grow 14%
3
10.77.641.3%
Funds under administration ($ billion)10.89.99.1%
Dairy derivatives lots traded (k)550 - 650260.1198.930.7%
1 Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share of profit of
associate. Operating earnings is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be comparable with similarly titled
performance measures and disclosures by other entities.
2 Information Services Revenue strategic target excludes connectivity revenue. Information Services revenue excluding connectivity revenue has increased 16.1% (H1-23: $9.0 million,
H1-22: $7.7 million)
3 The closing FUM growth excluding ASB Superannuation Master Trust and QuayStreet Asset Management FUM increased 24.5% from 30 June 2022 to 30 June 2023.
Beyond equity market activity, the remaining parts of our business have continued to perform strongly. This
has been particularly notable in:
• Dairy Market partnership with SGX Group;
• our Information Services (data) business;
• Smartshares, which continues to go from strength to strength; and
• Wealth Technologies, which has won five clients during the period that will be transitioned onto the
platform over the remainder of 2023 and 2024.
1 Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share
of profit of associate. Operating earnings is not a defined performance measure in NZ IFRS. The Group’s definition of operating earnings may not be comparable with
similarly titled performance measures and disclosures by other entities. Operating earnings includes one-off acquisition, integration and restructure costs of $0.6m
(H1-22: ($0.2)m). Operating earnings excluding one-off acquisition, integration and restructure costs increased 16.8% to $20.6m
2 Information Services Revenue strategic target excludes connectivity revenue. Information Services revenue excluding connectivity revenue has increased 16.1%
(H1-23: $9.0 million, H1-22: $7.7 million)
3 The closing FUM growth excluding ASB Superannuation Master Trust and QuayStreet Asset Management FUM increased 24.5% from 30 June 2022 to 30 June 2023.
Operating Earnings
1
$20.0m
15.0%
Net Profit After Tax
$7. 0 m
(5.6%)
Mark Peterson
NZX Chief Executive
John McMahon
NZX Board Chair
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45

As previously noted, Group operating earnings (EBITDA)
for H1 2023 were $20.0 million – up 15.0% on the same
period as last year. Excluding acquisition, integration and
restructure costs, Group operating earnings (EBITDA) for
the same period were $20.6 million – up 16.8%.
At a Group level, operating revenue increased by 16.9%
to $54.0 million. This was driven primarily by continued
growth in revenue from our data and dairy market
businesses and increased revenue from Smartshares –
the Group’s funds management business – (including
from the acquisition of QuayStreet Asset Management in
February 2023).
In the same period there was a reduction in trading and
clearing revenue reflecting the drop in value traded over
the period as a result of the economic environment.
Group operating expenses, excluding acquisition,
integration and restructure costs, for H1 2023 were
$33.4 million – up 16.9% on the same period last year.
Cost management and the extraction of efficiencies
have been a big focus over the period. A number of
these benefits will come through in H2 2023. Increased
overheads were driven by personnel costs – largely
in the funds management business as Smartshares
scaled up from the integration of QuayStreet and ASB
Superannuation Master Trust – and wage inflation driven by
a highly competitive and tight labour market.
Information technology cost increases were driven
by additional licences required for the operation of the
QuayStreet business and inflationary pressure. Other cost
increases are attributable to increased travel, premises
costs (with new office space added in Auckland’s Capital
Market Centre), and statutory and compliance costs.
Acquisition, integration and restructure costs primarily
relate to the integration of the ASB Superannuation Master
Trust and QuayStreet.
Depreciation and amortisation increases are due
to amortisation of QuayStreet management rights,
amortisation of additional development of Wealth
Technologies’ core platform, client migration costs
completed over 2022 and H1 2023, and additional
depreciation on the fit out and use of additional space in
the Auckland Capital Markets Centre.
The net finance expenses increase relates to the
funding of the QuayStreet acquisition and the progressive
unwinding of the present value discount on the QuayStreet
earnouts through to November 2025, as well as increased
interest on leased assets, offset by higher interest income
from increasing interest rates.
NZX Interim Report 2023
03
Our operating platform and corporate functions have continued to advance their capability, capacity and
resilience. It was pleasing to note that NZX met all its market obligations in 2022 in the Financial Markets
Authority’s annual market obligations review published in June.
Financial Performance
Summary Financial Performance ($ million)H1-23H1-22% Change
Markets31.130.03.6%
Funds Management18.011.556.9%
Wealth Technologies3.02.96.2%
Corporate Services0.1-n/a
Regulation1.81.8(1.5%)
Total operating revenue54.046.216.9%
Personnel costs(21.6)(18.7)(16.0%)
Information technology costs(6.9)(6.4)(7.9%)
Other costs(4.9)(3.5)(37.9%)
Total operating expenses(33.4)(28.6)(16.9%)
Operating earnings (EBITDA)
1
pre acquisition, integration & restructure costs
1
20.617.616.8%
EBITDA Margin (%)38.1%38.1%0.0%
Acquisition, integration & restructure costs(0.6)(0.2)(184.8%)
Operating earnings (EBITDA)
1
20.017.415.0%
Depreciation & amortisation(8.3)(6.8)(23.4%)
Investment in associate and other gains0.5-n/a
EBIT12.210.613.6%
Net finance expenses(1.9)(1.0)(79.4%)
Net profit before tax10.39.66.4%
Tax expense(3.3)(2.2)(45.8%)
Net profit after tax7.07.4(5.6%)
1 Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share of profit of
associate. Operating earnings is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be comparable with similarly titled
performance measures and disclosures by other entities.
As previously noted, Group operating earnings (EBITDA) for H1 2023 were $20.0 million – up 15.0% on the
same period as last year. Excluding acquisition, integration and restructure costs, Group operating earnings
(EBITDA) for the same period were $20.6 million – up 16.8%.
At a Group level, operating revenue increased by 16.9% to $54.0 million. This was driven primarily by
continued growth in revenue from our data and dairy market businesses and increased revenue from
Group Operating Revenue
$54.0m
16.9 %
1 Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share
of profit of associate. Operating earnings is not a defined performance measure in NZ IFRS. The Group’s definition of operating earnings may not be comparable with
similarly titled performance measures and disclosures by other entities.
Financial Performance
At a Group level, operating revenue increased
by 16.9% to $54.0 million. This was driven
primarily by continued growth in revenue
from our data and dairy market businesses
and increased revenue from Smartshares
– the Group’s funds management business –
(including from the acquisition of QuayStreet
Asset Management in February 2023).
Customer focus – NZX Senior Relationship
Manager James Sharp visited Christchurch to catch
up with WasteCo and see their team in action
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DAIRY DERIVATIVES GROWTH & SCALE
^ Dairy exports include WMP, SMP, BTR and AMF
** Percentage of exports calculated by converting both Dairy Exports and Derivatives volumes into kg of milk solids
* 2023 H1 comparison against exports in 2023 H1
Source: GTT, NZX, Fonterra Milk Price Statement 2022
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2023* H12022202120202019201820172016201520142013201220112010
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Dairy Derivatives Lots Traded
Lots Traded
% of Exports
Dairy Derivatives as a %
**
of underlying Dairy Exports
^
- RHS
CAPITAL MARKETS
H1 2023 highlighted the diversity of our markets business,
despite the ongoing macroeconomic impact on
equity markets.
Capital Markets Origination
Total capital listed and raised totalled $7.2bn for the
period. This was down 23.7% on the prior period, largely
due to the challenging market conditions. Secondary
listing fees were driven by Ryman Healthcare and Infratil
raising more than $1.8 billion of equity capital in the
secondary market, proving that capital is available for both
growth opportunities and refinancing.
As previously mentioned, the environment favoured new
debt listing activity and this totalled $3.6bn, an increase of
7.1% over the same period last year. The move by
corporates to issue green and sustainable financing
products continues to accelerate, with $2.2 billion listed
and raised (66% of all debt issued) by Mercury, Genesis,
Contact, Kiwi Property Group, Meridian and LGFA over the
period. The percentage of green bonds listed on the NZDX
has increased to 30.1% of all outstanding debt issued.
Annual listing fees have been positively impacted by
both price increases (which largely applied to annual listing
fees for the period beginning 1 July 2022) and the growth
in market value of debt instruments, partially offset by the
slight contraction in equity market capitalisation.
Secondary Markets — cash market
Participant services revenue is derived from 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 27
(December 2022: 29), with the resignation of two NZX
sponsors in the period.
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 Over The Counter
(OTC) settlement and registry messaging services
provided to Market Participants. The largest component
is clearing fees which are based on the value of
settled transactions.
Securities trading and clearing revenue decreased
reflecting:
—lower market activity levels - the total value traded and
cleared ($18.0 billion) was 13.4% lower than last year;
—uncharged value traded impacting securities trading
revenue (mainly caused by large index rebalance
trading days where fees on value traded exceeds the
fee cap), which increased to 7.7% (H1 2022: 6.5%); and
—lower levels of clearing margin, depository registry
transfer fees and clearing penalties.
Secondary Markets — Dairy derivatives and GDT
Dairy is an exciting area of growth and remains well
positioned across both the physical and futures markets.
With NZX holding a 33.3% stake in GlobalDairyTrade (GDT)
alongside Fonterra and the European Energy Exchange,
and the suite of global dairy derivatives listings on the
SGX, it demonstrates the value of NZX’s strategy of driving
growth from strategic international partnerships.
The expected significant growth from the SGX strategic
partnership is being achieved.
Highlights include:
—H1 2023 Dairy Derivatives volumes up 31% compared to
H1 2022, and in March 2023 a record monthly volume of
66,840 lots was achieved;
—working with SGX’s network of global sales offices and
resources in the dominant region for dairy imports
(Asia). Hosted a number of events including in Shanghai
and Beijing; and
—GDT added three new global suppliers to the market
from EU and US market. Platform developments to
assist liquidity in the associated derivatives markets
are underway.
Information Services
Royalties from terminals’ revenue relates to the provision of
markets data to data resellers who distribute data to their
customers. The royalty revenue from terminals increased by
5.1% driven by the average number of professional terminals
increasing 1.6% plus price increases (effective January 2023).
Subscriptions and licences revenues relate to the
provision of markets data to other participants in the capital
markets. The subscriptions and licences revenue increase
of 7.4% reflects the continued growth in data usage as well
as the ability to capture licence revenue streams post audit,
resulting in increased total license numbers (7.2%), partially
offset by reduced subscriptions (1.0%). There has also
been a positive impact from price increases (effective from
January 2023).
Increases in audit and back dated licensing revenue
(up 216.3% from H1 2022 to $0.75 million) are attributable
to continued high levels of audit activity over the period.
Minimal audit revenue is expected over the remainder
of 2023.
Dairy data subscriptions relate to the sale of dairy
data and insight products. Dairy data subscription
revenue declined against last year, reflecting reduced
product subscriptions.
NZX Interim Report 2023
05
Capital Markets
H1 2023 highlighted the diversity of our markets business, despite the ongoing macroeconomic impact on
equity markets.
Markets performance ($ million)H1-23H1-22% Change
Capital Markets Origination8.28.01.2%
Secondary Markets12.513.0(3.1%)
Information Services10.49.015.4%
Markets revenue31.130.03.6%
Markets EBITDA excl. restructure costs20.920.42.5%
EBITDA Margin excl. restructure costs67.2%67.9%(1.1%)
Key Operating Metrics
Equity Market capitalisation (ending, $ billion)159.8161.1(0.8%)
Equity listed & raised ($ billion)2.02.2(9.1%)
Debt listed & raised ($ billion)4.26.3(33.3%)
Funds listed & raised ($ billion)1.00.911.1%
Total value traded ($ billion)18.020.8(13.4%)
Dairy lots traded (k)260.1198.930.7%
Capital Markets Origination
Total capital listed and raised totalled $7.2bn for the
period. This was down 23.7% on the prior period,
largely due to the challenging market conditions.
Secondary listing fees were driven by Ryman
Healthcare and Infratil raising more than $1.8 billion
of equity capital in the secondary market, proving that
capital is available for both growth opportunities and
refinancing. As previously mentioned, the
environment favoured new debt listing activity and
this totalled $3.6bn, an increase of 7.1% over the same
period last year. The move by corporates to issue
green and sustainable financing products continues
to accelerate, with $2.2 billion listed and raised (66%
of all debt issued) by Mercury, Genesis, Contact, Kiwi
Property Group, Meridian and LGFA over the period.
The percentage of green bonds listed on the NZDX
has increased to 30.1% of all outstanding debt issued.
Annual listing fees have been positively impacted by
both price increases (which largely applied for annual
listing fees for the period beginning 1 July 2022) and
the growth in market value of debt instruments,
partially offset by the slight contraction in equity
market capitalisation.
Secondary Markets - cash market
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 27 (December 2022: 29), with the
resignation of two NZX sponsors in the period.
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 Over The
Counter (OTC) settlement and registry messaging
services provided to Market Participants. The largest
component is clearing fees which are based on the
value of settled transactions.
Enabling sustainability – Contact Energy issued a $300 million green
bond in April 2023, one of 14 new debt issues in the first half of the year.
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Indices revenue relates to the revenue generated on index
licensing in partnership with S&P. The indices business has
grown over the last few years, driven through growth in
funds using the indices as benchmarks across the funds
management market and additional index data clients.
Connectivity revenue relates to the provision of
connectivity and access to NZX systems for participants
and data vendors. Connectivity revenue has increased in
line with increased connectivity requirements from both
participants and data vendors.
Operating expenses
Personnel costs (net of capitalisation) have increased,
driven by:
—a higher average number of FTEs compared to H1 2022,
with lower levels of vacancies during the period; and
—wage inflation which is being driven by a highly
competitive and tight labour market, which is now
showing some signs of easing.
IT costs relate to licensing and hardware-software
maintenance costs for the trading and clearing systems,
energy electricity market, energy carbon market, SGX
Group-NZX dairy derivatives market and strategic
partnership, and data platforms feeds. IT costs have been
impacted by movements in FX rates and inflation.
Professional fees relate to the annual assurance
programme (including audit fees, tax advice, and energy
audit obligations under Electricity Authority contract),
terminal royalty audit fees, and royalty fees relating to both
the energy carbon market and SGX Group-NZX dairy
derivatives market. Professional fees have increased mainly
for terminal royalty audit fees which vary in proportion to
audit revenue (with revenues recognised on a gross basis)
and consultancy costs.
Other costs include marketing costs (for example,
Capital Markets Origination team’s memberships of various
industry groups to identify listing pipeline opportunities),
travel and statutory compliance costs.
SMARTSHARES — ON A STRONG PATHWAY
TO ACHIEVING SCALE
Smartshares continued its strong growth trajectory in H1
2023. As a wholly owned NZX subsidiary, Smartshares is
New Zealand’s leading passive funds management
business comprising the SuperLife superannuation and
KiwiSaver products, exchange traded funds (ETFs), ASB
Superannuation Master Trust (acquired February 2022) and
QuayStreet Asset Management (acquired February 2023).
The recent acquisitions move Smartshares towards
NZX’s strategy of achieving scale and operating leverage
which are important elements for a funds management
business. Our market analysis indicates $15-$20 billion of
Funds Under Management (FUM) is the point when cost
bases are at their most efficient for New Zealand fund
managers. Smartshares is on a strong pathway to $20 billion
of FUM by 2028, with $10.67 billion FUM at the end of the
period, and remains focused on offering funds to investors
that track the performance of an index or use a systematic
approach to investing with an ESG tilt.
NZX Interim Report 2023
09
Funds performance ($ million)H1-23H1-22% Change
Fund based fees15.910.158.0%
Member based fees1.51.131.6%
Other0.60.3113.6%
Funds revenue18.011.556.9%
Funds EBITDA excl. acquisition & integration costs10.36.071.9%
EBITDA Margin excl. acquisition & integration costs57.1%52.2%9.6%
Funds EBITDA9.85.869.6%
Key Operating Metrics
Opening FUM ($ billion)8.36.526.4%
FUM effect from market movement ($ billion)0.7(0.9)177.8%
FUM effect from net cash flows ($ billion)0.10.2(50.0%)
FUM effect from acquisition ($ billion)1.61.8(11.1%)
Closing FUM ($ billion)10.77.641.3%
Number of NZX listed Smartshares funds403514.3%
Funds management revenue is generated from:
• Funds under management-based revenue which
relates to variable 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);
• Member based revenue which includes fixed
membership administration fees and other member
services; and
• Other revenue, for example interest income,
insurance service fees and stock lending and
borrowing service fees.
FUM-based revenue (net of fund expenses) has
increased 58.0%, which reflects FUM at 30 June 2023
of $10.67 billion, up 41.3% on last year. The FUM
movement year to date is a combination of the
QuayStreet acquired FUM ($1.6 billion; acquired
23 February 2023), positive market returns and
positive net cash flows.
Member based revenue has increased, reflecting an
increase in investor numbers from the ASB
Superannuation Master Trust and QuayStreet
acquisitions.
Other revenue has increased due to higher levels of
stock lending and interest income.
During the prior financial year management identified
additional FUM based and member-based fees
relating to prior Fund financial years that had not been
recognised. No revenue was recognised in the prior
financial year as it was not virtually certain that these
fees were recoverable. As recoverability has now been
confirmed, revenue of $1.4 million has been
recognised in the current period.
Personnel costs (net of capitalisation) have increased
driven by higher average FTEs and wage inflation.
Average FTEs increased through the acquisition of
QuayStreet’s investment management and client
The acquisition of QuayStreet, and its $1.6 billion in FUM
from Craigs Investment Partners was completed in
February 2023. Some support services continue to be
provided by Craigs Investment Partners and we expect
these to be transitioned by mid-2024.
The full transition of QuayStreet into the Smartshares
operating model is expected to be completed by mid-2024.
The QuayStreet funds are being offered as a premium
product set to the market. In time, Smartshares, with
input from Craigs and its clients, will work to align and
refine the products to ensure the funds continue to meet
customer needs.
QuayStreet contributed revenue of $2.6 million,
operating earnings of $1.7 million and profit of $0.6 million
to the Group’s results for the period from acquisition to 30
June 2023.
The transition of ASB Superannuation Master Trust
investment administration, investment management and
registry services are on track to be completed in the third
quarter of 2023. Expected synergies, including those
arising from in-house management of some asset classes,
will be realised when the transition is complete.
In June 2023, Smartshares launched five new ETFs
giving investors more options. These were the first new
Smartshares products since our Core Series launch back
in July 2020.
The new ETFs not only extend the range of
our offering, but they also represent the growth in
partnerships Smartshares continues to build with global
fund managers and index providers. Smartshares worked
with S&P to develop a new index covering an Australian
Equities ESG ETF. The new US 500 (NZD Hedged) ETF
developed through growing our relationship with Craigs
Investment Partners and welcoming QuayStreet to the
Smartshares team.
Funds management revenue is generated from:
—Funds under management-based revenue which
relates to variable 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);
Giving investors options – In June 2023 Smartshares launched five new exchange traded funds
demonstrating the strength of its partnerships with global fund managers and index providers.
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—Member based revenue which includes fixed
membership administration fees and other member
services; and
—Other revenue, for example interest income, insurance
service fees and stock lending and borrowing
service fees.
FUM-based revenue (net of fund expenses) has increased
58.0%, which reflects FUM at 30 June 2023 of $10.67 billion,
up 41.3% on last year. The FUM movement year to date is a
combination of the QuayStreet acquired FUM ($1.6 billion;
acquired 23 February 2023), positive market returns and
positive net cash flows.
Member based revenue has increased, reflecting an
increase in investor numbers from the ASB Superannuation
Master Trust and QuayStreet acquisitions.
Other revenue has increased due to higher levels of
stock lending and interest income.
During the prior financial year, management identified
additional FUM based and member-based fees relating to
prior Fund financial years that had not been recognised. No
revenue was recognised in the prior financial year as it was
not virtually certain that these fees were recoverable. As
recoverability has now been confirmed, revenue of $1.4
million has been recognised in the current period.
Personnel costs (net of capitalisation) have increased
driven by higher average FTEs and wage inflation. Average
FTEs increased through the acquisition of QuayStreet’s
investment management and client relationships teams as
well as resource to support the ASB SMT integration (a
non-recurring cost) and transitioned services (an ongoing
recurring operational cost).
IT costs include software licence fees for the Bloomberg
front and middle office operating systems, which have
increased with the acquisition of QuayStreet.
The net result for Smartshares is a significant increase in
operating earnings and EBITDA margin, driven by the
operating leverage achieved through the increased scale
from both acquisitions and organic growth.
NZX WEALTH TECHNOLOGIES — GOING FROM
STRENGTH TO STRENGTH
NZX Wealth Technologies develops, administers and
operates a custodial investment management platform that
enables both large-scale and small-scale financial advisor
groups to manage their clients’ investments.
The business has had an exciting six months. Good
progress has been made transitioning additional funds
from existing customers onto the platform. Five new
customers of various portfolio sizes, including the Cook
Islands Superannuation Fund, have been won and their
business will be transitioned over the remainder of the year.
The scale of the secured new business is circa $550 million
in funds under administration (FUA). Wealth Technologies is
in the advanced stages of several significant new business
opportunities, that would help achieve the targets we have
set by the end of 2024. Our platform, reputation and
experience is being well received by the market.
NZX Interim Report 2023
11
Wealth Technologies performance ($ million)H1-23H1-22% Change
Wealth Technologies revenue3.02.96.2%
Wealth Technologies EBITDA excl. restructure costs0.10.5(79.5%)
EBITDA Margin excl. restructure costs3.1%16.3%(80.7%)
Key Operating Metrics
Opening FUA ($ billion)10.011.0(9.7%)
FUA effect from market movement ($ billion)0.8(1.3)(161.5%)
FUA effect from net cash flows ($ billion)0.10.2(50.0%)
Closing FUA ($ billion)10.89.99.1%
Capitalised costs for client onboarding3.64.2(13.9%)
Wealth Technologies revenue is generated from
administration services provided on its management
platform and development fees received from the
customisation of the platform or data migration effort
specific to client requirements.
Administration fees are based on funds under
administration (FUA) and have been positively
impacted by positive cashflows and market returns
over the period. FUA at 30 June 2023 was
$10.82 billion, up 9.1% on June 2022.
Personnel costs (net of capitalisation) have increased,
driven by:
• wage inflation; and
• lower levels of capitalisation compared to H1 2022,
reflecting the non-capitalisable effort required to
migrate clients between the legacy and new
platform. This migration is now complete, and the
legacy system has been decommissioned;
• but were offset by lower average FTEs with lower
levels of vacancies during the period. Headcount
is dependent at any point in time on the levels of
platform investment (including migration activity)
required for current and future clients, and the
operational services provided to current clients.
Capitalised labour and overhead remains at high
levels, predominantly reflecting new client migration
activity, plus continued product development. The
levels of capitalisation are expected to continue as
clients migrate additional FUA and new clients are
onboarded.
IT costs have decreased due to the decommissioning
of the legacy system and a rationalisation of data
hosting and data feed spend over the period.
Operating earnings and EBITDA margin have been
adversely impacted by the migration of clients
between the legacy and new platform which was
completed in the period.
NZX Wealth Technologies
is in the advanced stages
of several significant new
business opportunities, that
would help achieve the targets
we have set by the end of
2024. Our platform, reputation
and experience is being well
received by the market.
Wealth Technologies now has contracted FUA growth to
more than double FUA (in the medium term). We remain
confident the growth from the new business transition
activity and the prospect pipeline will ensure Wealth
Technologies meets its objective of being cashflow
breakeven by the end of 2024 and to deliver on its target of
FUA between $35 and $50 billion. In late 2022 NZX did
consider whether there was a strategic partner that could
enhance the business. However, with Wealth Technologies’
long-term growth prospects continuing to strengthen,
this is no longer a priority and discussions with a limited
number of parties have concluded.
Wealth Technologies’ revenue is generated from
administration services provided on its management
platform and development fees received from the
customisation of the platform or data migration effort
specific to client requirements.
Administration fees are based on funds under
administration (FUA) and have been positively impacted by
positive cashflows and market returns over the period. FUA
at 30 June 2023 was $10.82 billion, up 9.1% on June 2022.
Personnel costs (net of capitalisation) have increased,
driven by:
—wage inflation; and
—lower levels of capitalisation compared to H1 2022,
reflecting the non-capitalisable effort required to
migrate clients between the legacy and new platform.
This migration is now complete, and the legacy system
has been decommissioned; but
—were offset by lower average FTEs with lower levels of
vacancies during the period. Headcount is dependent
at any point in time on the levels of platform investment
(including migration activity) required for current and
future clients, and the operational services provided to
current clients.
Capitalised labour and overhead remains at high levels,
predominantly reflecting new client migration activity, plus
continued product development. The levels of
capitalisation are expected to continue as clients migrate
additional FUA and new clients are onboarded.
IT costs have decreased due to the decommissioning
of the legacy system and a rationalisation of data hosting
and data feed spend over the period.
Operating earnings and EBITDA margin have been
adversely impacted by the migration of clients between
the legacy and new platform which was completed in
the period.
NZX Interim Report 2023NZX Interim Report 2023
1213

NZX closed the half year with net debt of $48.7 million
(excluding Clearing House risk capital which is not
available for general use) including:
—subordinated notes ($38.7 million) – the first election
date for NZX’s subordinated bonds was 20 June 2023,
when the notes were rolled over with all redemption
requests being resold to new investors. The interest rate
was reset at 6.8% which will apply until the next election
date on 20 June 2028;
—term loan ($22.5 million; expiry date 28 February 2025),
used to fund the QuayStreet acquisition in February 2023;
and
—Cash and cash equivalents of $12.5 million which includes:
—cash of up to $2.3 million held in Clearing House to
meet International Organisation of Securities
Commissions’ expectations for the retention of
working capital; and
—cash of up to $1.6 million held in Smartshares to
maintain sufficient net tangible assets in accordance
with its license requirements.
The acquisition of QuayStreet in February 2023 has
resulted in increases in net debt, goodwill, other intangible
assets and net other liabilities. The effect of the QuayStreet
acquisition is explained fully in note 8 to NZX’s interim
financial statements.
Operating activity cashflow represents the profit for the
period (adjusted for non-cash items - for example,
depreciation and amortisation, share of profit of associates,
share-based payments). NZX’s cashflows from operations
mainly occur in the second half of the year when annual
listing and participant fees are collected. We are conscious
of Wealth Technologies’ cash burn and are targeting that
business to be cashflow positive by late 2024 based on the
current migration pipeline.
Investment activities include:
—the acquisitions of QuayStreet Asset Management in
February 2023, ASB Superannuation Master Trust in
February 2022 and an interest in GlobalDairyTrade in
June 2022; and
—capital expenditure relating to Wealth Technologies’
software development, Auckland office fit outs and other
technology upgrades and enhancements, including
system enhancements required for the integration of the
ASB Superannuation Master Trust.
Financing activities reflect the equity raised and new
term loans to fund the acquisitions, and the payment of
dividends (net of participation in the dividend
reinvestment plan).
NZX’S GROWTH STRATEGY — GROWING,
CONNECTING, CREATING VALUE
Since 2017 NZX has been growing a more integrated
financial markets infrastructure and services business.
We have been building on NZX’s core market strengths
and implementing growth opportunities across our Group
businesses to create further value to our shareholders
over time.
Our strategy to 2027 is to:
—expand our product offering in Capital Markets (equity
derivatives, carbon markets);
—enhance our global connections and market reach; and
—drive scale, efficiencies and operating leverage across
the businesses – including Smartshares and NZX
Wealth Technologies.
To deliver to the strategy, the Company has a range of
growth options. In the core markets, work is progressing
well on NZX Dark (an exchange delivered anonymous
mid-point orderbook, on target for launch in H1 2024)
and we intend to relaunch the S&P/NZX20 Index Futures
later in 2024.
The partnership with the SGX Group in dairy
derivatives is making excellent progress generating new
players into the market and has the potential to now attract
traders, which will further grow liquidity.
Smartshares has strong growth options due to
positive cashflows, market returns, KiwiSaver and the
ongoing benefits of integrating the ASB Superannuation
Master Trust and QuayStreet acquisitions. There are
sizeable efficiencies to be made in the business in coming
years by streamlining, aligning and automating systems
and processes.
Wealth Technologies is on target to be cashflow
positive by the end of 2024 with a strong pipeline of
activity planned onboarding existing and new clients’ FUA.
Discovery work is also underway with a large custodial
prospect, and we are in advanced discussions with a
further $2.3 billion of full custodial clients.
Increased compliance obligations are forcing large
advisor firms to upgrade their platforms or move to
a SaaS offering, such as Wealth Technologies. On top of
this, the increasing cost to service clients impacts medium-
sized adviser firms, making the Wealth Technologies
platform a cost-efficient option.
NZX Interim Report 2023
12
Balance Sheet, Liquidity and Debt
Balance Sheet and Cashflow Figures ($ million)H1-23H1-22% Change
Net debt (excludes restricted cash)(48.7)(22.5)(116.7%)
Restricted cash20.020.0-
Goodwill50.930.268.5%
Other intangible assets99.368.744.6%
Other non-current assets45.535.926.6%
Net other liabilities(48.3)(20.2)138.4%
Net assets / equity118.7112.15.9%
Operating activities cashflow16.114.312.6%
Working capital movements(9.1)(13.1)30.5%
Cash inflow from operations7.01.2485.3%
Payments for acquisitions(22.4)(41.0)45.4%
Payments for PPE & other intangible assets(5.3)(6.0)11.7%
Cash outflow from investment(27.7)(47.0)40.9%
Proceeds from equity raise/term loans22.542.6(47.2%)
Dividends and other(9.8)(9.4)(4.3%)
Cash inflow from financing12.733.2(61.8%)
Net decrease in cash and cash equivalents(8.1)(12.5)35.4%
NZX closed the half year with net debt of $48.7 million
(excluding Clearing House risk capital which is not
available for general use) including:
• subordinated notes ($38.7 million) – the first
election date for NZX’s subordinated bonds was
20 June 2023, when the notes were rolled over with
all redemption requests being resold to new
investors. The interest rate was reset at 6.8% which
will apply until the next election date on 20 June 2028;
• term loan ($22.5 million; expiry date 28 February
2025), used to fund the QuayStreet acquisition in
February 2023; and
• Cash and cash equivalents of $12.5 million which
includes:
• cash of up to $2.3 million held in Clearing House
to meet International Organisation of Securities
Commissions principals requiring retention of
working capital; and
• cash of up to $1.6 million held in Smartshares to
maintain sufficient net tangible assets in
accordance with its license requirements.
The acquisition of QuayStreet in February 2023 has
resulted in increases in net debt, goodwill, other
intangible assets and net other liabilities. The effect
of the QuayStreet acquisition is explained fully in note
8 to NZX’s interim financial statements.
Operating activity cashflow represents the profit for
the period (adjusted for non-cash items - for example,
Balance sheet, Liquidity & debt
Ringing in the day – Booster Innovation Fund joined NZX to open trading on 12 July 2023.
NZX Interim Report 2023NZX Interim Report 2023
1415

John McMahon
BOARD CHAIR
FY 2023 GUIDANCE OUTLOOK
NZX’s full year 2023 Operating Earnings (EBITDA),
excluding acquisition, integration and restructure costs,
are expected to be in the range of $36.0 million to $40.5
million. The half-year financial result indicates NZX is
tracking towards the upper end of the 2023 full-year
guidance range.
The guidance is subject to market outcomes,
particularly with respect to market capitalisation, total
capital listed and raised, secondary market value and
derivatives volumes traded, funds under management and
administration growth, acquisition related integration
costs and technology costs.
Additionally, this guidance assumes there is no further
material decline in the macro-economic environment
and market conditions, and there are no significant
one-off expenses, major accounting adjustments, other
unforeseeable circumstances, or future acquisitions
or divestments.
The Earnings Guidance excludes the expected impact
of the GDT investment as this is recognised as “share of
profit of associate” (after Operating Earnings).
BOARD & MANAGEMENT CHANGES
In May 2023 experienced markets’ practitioner and former
NZX director John McMahon was re-appointed as an
independent NZX Board director and then Chair, replacing
James Miller.
James served nearly 13 years as an NZX director and
Chair through a time of significant change and
development for the Company and exchange. He oversaw
the stabilisation and modernisation of the NZX Group
business, development of a long-term strategic growth
plan and the development of strategic partnerships with
Nasdaq, SGX, Fonterra and EEX.
James was the driving force behind governance
improvements such as the structural separation of NZX’s
regulatory arm into NZ RegCo, and the development of the
Corporate Governance Institute, along with opening of
New Zealand’s Capital Markets Centre in Auckland. He
personally championed the Capital Markets 2029 vision
and recognised the need for an ‘NZ Inc approach’ to New
Zealand’s economic wellbeing.
The NZX Board and management thank James for his
significant contribution to the Company and New Zealand’s
capital markets and wish him all the best for the future.
Other Board changes in H1 2023 included:
—Appointment of Dame Paula Rebstock as an
independent director in February 2023; and
—Resignation of Rob Hamilton as an independent director
in March 2023.
In January Smartshares Chief Executive Hugh Stevens
resigned after five years in the role. NZX Chief Financial &
Corporate Officer Graham Law has acted in the role from
1 April. Experienced financial services executive Anna
Scott was appointed as the new Chief Executive in June
and begins in early September.
Finally in August 2023, the Board extended
Mark Peterson’s employment term as NZX Chief Executive
beyond April 2024. The new employment agreement
ensures stability of leadership and maintains momentum
across the NZX Group. The Group has a clear work
programme in front of it that requires focused and proven
leadership. This includes successful delivery of initiatives
and products under NZX’s growth strategy – NZX 20
Futures and NZX Dark – and more size, scale and
efficiencies in capital market operations, Smartshares
and NZX Wealth Technologies.
TECHNOLOGY — ONGOING FOCUS ON
RESILIENCE
NZX continues to invest in information technology to
maintain the stability of the last 18 months. This includes
aligning capability, capacity and security. The continual
uplift and investment in technology systems and resources
was noted by the FMA in its annual obligations review.
OPERATING RESPONSIBLY
NZX’s focus is to create value while delivering a positive
impact on society and the environment.
As a business, NZX is committed to taking action on
climate change. In 2021 and 2022 NZX achieved net
carbon zero certification from Toitū Envirocare. Sustainable
economic growth is a priority for NZX. Public markets will
continue to play an important role in facilitating the flow of
capital towards decarbonising the New Zealand economy.
In 2024 under the mandatory climate-related
disclosures framework (Aotearoa New Zealand Climate
Standards, ANZCS), NZX will be reporting in accordance
with our climate change obligations regarding governance,
strategy, risk management, and metrics and targets.
NZX is undertaking a materiality assessment to grow
and deepen NZX’s stakeholder understanding and
relationships, support and further inform NZX strategy
execution, and guide future Environmental, Social and
Governance (ESG) prioritisation, targets, and reporting.
ACKNOWLEDGEMENTS
It is important to acknowledge the positive contribution
our team at NZX makes every day connecting people,
businesses and capital for economic prosperity. They are
passionate and dedicated about working with customers
and providing them with high-quality support, services
and infrastructure that allows New Zealand companies,
investors and savers to get ahead. As we have done for
157 years, at NZX we want to grow our business and the
businesses and individuals we serve in a way that is
sustainable and profitable.
Mark Peterson
CHIEF EXECUTIVE
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1617

NZX Interim Report 2023NZX Interim Report 2023
1819
Financial
statements

NZX Interim Report 2023
02The accompanying notes form an integral part of these financial statements
Group Income Statement
For the six months ended 30 June 2023
Note
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Total operating revenue553,95946,17595,726
Total operating expenses6(33,918)(28,755)(60,661)
Earnings before net finance expenses, income tax, depreciation,
amortisation, gain on lease modification, gain on disposal of assets and
share of profit of associate (EBITDA)
1
220,04117,42035,065
Net finance expenses7(1,873)(1,044)(1,838)
Depreciation and amortisation expense(8,335)(6,756)(13,860)
Gain on disposal of assets-33
Gain on lease modification15--
Share of profit of associate392-146
Profit before income tax10,2409,62319,516
Income tax expense(3,267)(2,240)(5,357)
Profit for the period6,9737,38314,159
Earnings per share
Basic (cents per share)2.22.54.6
Diluted (cents per share)2.12.44.5
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
Group Statement of Other Comprehensive Income
For the six months ended 30 June 2023
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Profit for the period6,9737,38314,159
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 other comprehensive income for the period6,9737,38214,159
NZX Interim Report 2023
The accompanying notes form an integral part of these financial statements03
Group Statement of Changes in Equity
For the six months ended 30 June 2023
Note
Share
Capital
$000
Retained
Earnings
$000
Translation
Reserve
$000
Total
Equity
$000
Audited balance at 1 January 202263,4727,180(46)70,606
Profit for the period-7,383-7,383
Foreign currency translation differences--(1)(1)
Total comprehensive income for the period-7,383(1)7,382
Transactions with owners recorded directly in equity:
Dividends paid12-(8,701)-(8,701)
Issue of shares42,687--42,687
Share based payments115--115
Cancellation of non-vesting shares(19)19--
Total transactions with owners recorded directly in equity42,783(8,682)-34,101
Unaudited closing balance at 30 June 2022106,2555,881(47)112,089
Profit for the period-6,776-6,776
Foreign currency translation differences--11
Total comprehensive income for the period-6,77616,777
Transactions with owners recorded directly in equity:
Dividends paid12-(9,394)-(9,394)
Issue of shares1,939--1,939
Share based payments297--297
Cancellation of non-vesting shares(21)21--
Total transactions with owners recorded directly in equity2,215(9,373)-(7,158)
Audited closing balance at 31 December 2022108,4703,284(46)111,708
Profit for the period-6,973-6,973
Foreign currency translation differences----
Total comprehensive income for the period-6,973-6,973
Transactions with owners recorded directly in equity:
Dividends paid12-(9,756)-(9,756)
Issue of shares119,159--9,159
Share based payments611--611
Cancellation of non-vesting shares(50)50--
Total transactions with owners recorded directly in equity9,720(9,706)-14
Unaudited closing balance at 30 June 2023118,190551(46)118,695
NZX Interim Report 2023
02The accompanying notes form an integral part of these financial statements
Group Income Statement
For the six months ended 30 June 2023
Note
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Total operating revenue553,95946,17595,726
Total operating expenses6(33,918)(28,755)(60,661)
Earnings before net finance expenses, income tax, depreciation,
amortisation, gain on lease modification, gain on disposal of assets and
share of profit of associate (EBITDA)
1
220,04117,42035,065
Net finance expenses7(1,873)(1,044)(1,838)
Depreciation and amortisation expense(8,335)(6,756)(13,860)
Gain on disposal of assets-33
Gain on lease modification15--
Share of profit of associate392-146
Profit before income tax10,2409,62319,516
Income tax expense(3,267)(2,240)(5,357)
Profit for the period6,9737,38314,159
Earnings per share
Basic (cents per share)2.22.54.6
Diluted (cents per share)2.12.44.5
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
Group Statement of Other Comprehensive Income
For the six months ended 30 June 2023
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Profit for the period6,9737,38314,159
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 other comprehensive income for the period6,9737,38214,159
2021
NZX Interim Report 2023NZX Interim Report 2023

NZX Interim Report 2023
The accompanying notes form an integral part of these financial statements05
Group Statement of Financial Position (continued)
As at 30 June 2023
Note
Unaudited
30 June 2023
$000
Unaudited
30 June 2022
$000
Audited
31 Dec 2022
$000
Non-current liabilities
Non-current other liabilities87,930--
Lease liabilities20,34512,28020,679
Interest bearing liabilities1061,164--
Deferred tax liability11,6582,9732,984
Total non-current liabilities101,09715,25323,663
Total liabilities168,527114,051121,491
Net assets118,695112,089111,708
Equity
Share capital11118,190106,255108,470
Retained earnings5515,8813,284
Translation reserve(46)(47)(46)
Total equity attributable to shareholders118,695112,089111,708
Net tangible assets per share (cents per share)(16.24)(1.15)(1.27)

Approved on behalf of the Board of Directors for issue on 24 August 2023.

John McMahon
Chair of the Board
Lindsay Wright
Chair of the Audit and
Risk Committee
NZX Interim Report 2023
04The accompanying notes form an integral part of these financial statements
Group Statement of Financial Position
As at 30 June 2023
Note
Unaudited
30 June 2023
$000
Unaudited
30 June 2022
$000
Audited
31 Dec 2022
$000
Current assets
Cash and cash equivalents12,50816,52720,611
Cash and cash equivalents - restricted920,00020,00020,000
Funds held on behalf of third parties26,28127,22130,282
Receivables and prepayments32,69127,55317,132
Total current assets91,48091,30188,025
Non-current assets
Property, plant & equipment10,0277,92610,372
Right-of-use lease assets18,26611,35719,204
Goodwill350,92730,22230,222
Other intangible assets99,34868,69668,593
Investment in associate17,17416,63816,783
Total non-current assets195,742134,839145,174
Total assets287,222226,140233,199
Current liabilities
Funds held on behalf of third parties26,28127,22130,282
Trade payables9,5209,3797,434
Other liabilities - current30,47822,83219,413
Lease liabilities6661,319997
Current tax liability/(asset)485(936)665
Interest bearing liabilities - current10-38,98339,037
Total current liabilities67,43098,79897,828
2223
NZX Interim Report 2023NZX Interim Report 2023

NZX Interim Report 2023
06The accompanying notes form an integral part of these financial statements
Group Statement of Cash Flows
For the six months ended 30 June 2023
Note
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Cash flows from operating activities
Receipts from customers47,02037,63592,068
Net interest paid(1,278)(1,114)(1,967)
Payments to suppliers and employees(35,038)(30,153)(59,976)
Income tax paid(3,774)(5,184)(6,689)
Net cash provided by operating activities6,9301,18423,436
Cash flows from investing activities
Payments for property, plant and equipment(439)(1,105)(5,096)
Payments for intangible assets(27,294)(29,841)(35,400)
Payments for investment in associate-(16,004)(16,637)
Net cash used in investing activities(27,733)(46,950)(57,133)
Cash flows from financing activities
Proceeds from term loans1022,500--
Net receipts from equity raising-42,63842,669
Payments of lease liabilities(608)(686)(1,236)
Transaction costs relating to renewal of subordinated notes10(648)--
Purchase of subordinated notes-(20)-
Dividends paid(8,544)(8,701)(16,187)
Net cash provided by financing activities12,70033,23125,246
Net decrease in cash and cash equivalents(8,103)(12,535)(8,451)
Cash and cash equivalents at the beginning of the period40,61149,06249,062
Cash and cash equivalents at the end of the period32,50836,52740,611
NZX Interim Report 2023
07
Notes to the Financial Statements
For the six months ended 30 June 2023
1. Reporting entity and statutory base
Reporting entity
These interim financial statements presented are for NZX Limited (the Company) and its subsidiaries (together
referred to as the Group) as at and for the six months ended 30 June 2023.
The Group operates New Zealand securities, derivatives and energy markets, including building and
maintaining the infrastructure on which they operate. It provides funds management services including
superannuation and Exchange Traded Funds (ETFs), as well as 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). 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
These interim financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP), the requirements of the FMCA and the Main Board/debt market Listing Rules
of NZX Limited. The interim financial statements comply with the New Zealand equivalents to International
Accounting Standards NZ IAS 34 and IAS 34 Interim Financial Reporting.
These interim financial statements do not disclose all the information required for annual financial statements
prepared in accordance with NZ IFRS. Consequently, the interim financial statements should be read in
conjunction with the financial statements and related notes included in the Annual Report for the year ended
31 December 2022.
Accounting policies
These interim financial statements have consistently applied the accounting policies set out in the Group's
Annual Report for the year ended 31 December 2022.
2425
NZX Interim Report 2023NZX Interim Report 2023

NZX Interim Report 2023
08
Accounting estimates and judgements
The principal areas of judgement for the Group, in preparing these financial statements, including information
about assumptions and estimated uncertainties that have a significant risk of resulting a material adjustment
within the next financial year, have not changed from those used in preparing the annual financial statements
for the year ended 31 December 2022 with the following addition:
• note 8 - acquisition of management rights: fair value of the consideration transferred (including contingent
consideration) and fair value of the assets acquired and liabilities assumed, measured on a provisional basis.
Functional and presentation currency
These interim financial statements are presented in New Zealand dollars ($), which is the Group's functional
currency, and are rounded to the nearest thousand dollars unless otherwise indicated..
Presentational changes
Certain amounts in the comparative information have been reclassified to ensure consistency with the current
period's presentation.
2. Non-GAAP measures
EBITDA is a non-GAAP performance measure and differs from the NZ IFRS profit for the period. The Group's
definition of EBITDA may not be comparable with similarly titled performance measures and disclosures by
other entities.
Reconciliation of EBITDA to NZ IFRS profit for the period:
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Profit for the period6,9737,38314,159
Income tax expense3,2672,2405,357
Profit before income tax10,2409,62319,516
Adjustments for:
- Net finance expenses1,8731,0441,838
- Gain on lease modification(15)--
- Depreciation and amortisation expense8,3356,75613,860
- Gain on disposal of assets-(3)(3)
- Share of profit of associate(392)-(146)
EBITDA20,04117,42035,065
The Group has presented the EBITDA performance measure in addition to NZ IFRS profit for the period as
this performance measure is used internally, in conjunction with other measures, to monitor performance and
make investment decisions. EBITDA is calculated by adjusting profit from operations to exclude the impact
NZX Interim Report 2023
09
of taxation, net finance expense, depreciation, amortisation, gain on lease modification, gain on disposal of
assets, and share of profit of associate.
3. Goodwill and other intangible assets
Note
Unaudited
30 June 2023
$000
Unaudited
30 June 2022
$000
Audited
31 Dec 2022
$000
Carrying amount
Balance at beginning of the period30,22230,22230,222
Acquired on acquisition of QuayStreet Asset Management820,705--
Balance at end of the period50,92730,22230,222
The Group performs a full impairment assessment of its goodwill and indefinite life intangible assets annually.
The last full impairment assessment was performed at 31 December 2022, and no impairment was required as
a result.
The Group has reviewed the indicators of impairment for the six month period to 30 June 2023, and no
indicators of impairment were noted (none at 30 June 2022). The next full impairment assessment will be
performed and included in the Group's year end financial statements as at 31 December 2023.
4. Segment reporting
The Group has five revenue generating segments, as described below, which are the Group‘s strategic
business areas, and a corporate services segment which has limited revenue but includes all costs that are
shared across the organisation.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM). The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Group CEO. The CODM assesses
performance of the combined Markets business (i.e. the Capital Markets Origination, Secondary Markets and
Information Services revenue generating segments) as a single segment, being an integrated business that
supports the growth of New Zealand capital markets. The performance of the Funds Management, Wealth
Technologies and Corporate businesses are assessed separately.
Additionally, NZX Regulation Limited (NZ RegCo) is a stand-alone, independently-governed agency which
performs all of NZX's front line regulatory functions. NZ RegCo is structurally separate from the Group's
commercial operations and consequently the CODM for the Regulation business is the NZ RegCo CEO.
The reportable commercial operations segments are:
• Markets
• Capital Market Origination - provider of issuer services for current and prospective customers;
• Secondary Markets - provider of trading and post-trade services for securities and derivatives markets
operated by NZX, provider of a central securities depository and market operator for Fonterra Co-
Operative Group, the Electricity Authority and the Ministry for the Environment;
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10
• Information Services (previously Data & Insights) - provider of information services for the securities and
derivatives markets, and analytics for the dairy sector;
• Funds Management - manager of superannuation funds, KiwiSaver funds and exchange traded funds; and
• Wealth Technologies - funds administration provider and custodian.
The Group’s revenue is allocated into each of the reportable segments (including an internal allocation of
annual listing fees and annual participant fees to NZ RegCo). Expenses incurred are allocated to the
segments only if they are direct and specific expenses to one of the segments. The remaining expenses that
relate to activities shared across the group are reported in the Corporate segment.
The Group's assets and liabilities are allocated into each of the revenue generating segments, apart from
those assets and liabilities that are utilised on a shared basis, which are allocated to the Corporate segment.
Segmental information for the six months ended 30 June 2023
Unaudited
Capital
Markets
Origination
$000
Secondary
Markets
$000
Information
Services
$000
Markets
sub-total
$000
Funds
$000
Wealth
Tech.
$000
Corporate
$000
NZX
Commercial
Operations
sub-total
$000
Regulation
$000
NZX
Group
Total
$000
Operating
revenue8,19112,56910,37331,13317,9773,0265152,1871,77253,959
Operating
expenses
(10,267)(8,156)(2,963)(10,521)(31,907)(2,011)(33,918)
Operating
earnings
(EBITDA)
1
20,8669,82163(10,470)20,280(239)20,041
Segment
assets
104,633122,92025,01734,384286,954268287,222
Segment
liabilities(46,020)(56,607)(2,170)(64,173)(168,970)443(168,527)
Net
assets58,61366,31322,847(29,789)117,984711118,695
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
NZX Interim Report 2023
11
Segmental information for the six months ended 30 June 2022
Unaudited
Capital
Markets
Origination
$000
Secondary
Markets
$000
Information
Services
$000
Markets
sub-total
$000
Funds
$000
Wealth
Tech.
$000
Corporate
$000
NZX
Commercial
Operations
sub-total
$000
Regulation
$000
NZX
Group
Total
$000
Operating
revenue
8,09212,9688,99230,05211,4592,8501644,3771,79846,175
Operating
expenses
(9,646)(5,667)(2,386)(9,081)(26,780)(1,975)(28,755)
Operating
earnings
(EBITDA)
1
20,4065,792464(9,065)17,597(177)17,420
Segment
assets104,05169,33422,71129,867225,963177226,140
Segment
liabilities
(45,248)(7,161)(2,138)(59,562)(114,109)58(114,051)
Net
assets58,80362,17320,573(29,695)111,854235112,089
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
Segmental information for the twelve months ended 31 December 2022
Audited
Capital
Markets
Origination
$000
Secondary
Markets
$000
Information
Services
$000
Markets
sub-total
$000
Funds
$000
Wealth
Tech.
$000
Corporate
$000
NZX
Commercial
Operations
sub-total
$000
Regulation
$000
NZX
Group
Total
$000
Operating
revenue16,96525,34619,35461,66524,4865,9915692,1983,52895,726
Operating
expenses(19,078)(13,297)(4,662)(19,698)(56,735)(3,926)(60,661)
Operating
earnings
(EBITDA)
1
42,58711,1891,329(19,642)35,463(398)35,065
Segment
assets
94,30472,43324,30142,039233,077122233,199
Segment
liabilities
(43,279)(10,552)(2,024)(65,830)(121,685)194(121,491)
Net
assets51,02561,88122,277(23,791)111,392316111,708
1 EBITDA is not a defined performance measure in NZ IFRS. Please refer to Note 2 for more information.
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12
5. Operating revenue
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Listing and issuance fees8,1918,09216,965
Total Capital Markets Origination revenue8,1918,09216,965
Participant services281439870
Securities trading2,0062,2994,171
Securities clearing3,2373,8427,158
Dairy derivatives1,5698361,887
Market operations5,4765,55211,260
Total Secondary Markets revenue12,56912,96825,346
Securities information8,6527,38016,001
Dairy data subscriptions281315610
Connectivity revenue1,4401,2972,743
Total Information Services revenue10,3738,99219,354
Funds Management revenue17,97711,45924,486
Wealth Technologies revenue3,0262,8505,991
Regulation revenue1,7721,7983,528
Other Corporate revenue511656
Total operating revenue53,95946,17595,726
NZX Interim Report 2023
13
6. Operating expenses
Note
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Gross personnel costs(24,528)(21,780)(44,060)
Less capitalised labour2,8913,1276,742
Net personnel costs(21,637)(18,653)(37,318)
Information technology(6,909)(6,402)(13,071)
Professional fees(1,721)(1,479)(3,517)
Marketing(387)(598)(1,419)
Other operating expenses(3,462)(2,164)(5,392)
Capitalised overheads7227251,596
Acquisition, integration and restructure costs8(524)(184)(1,540)
Total operating expenses(33,918)(28,755)(60,661)
7. Net finance expenses
Note
Unaudited
6 months
ended
30 June
2023
$000
Unaudited
6 months
ended
30 June
2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Interest income8874241,204
Interest on lease liabilities(482)(231)(641)
Unwind of discount on earnout8(225)--
Other interest expense(1,797)(1,255)(2,466)
Amortised borrowing costs(286)(43)(87)
Net gain on foreign exchange3061152
Net finance expense(1,873)(1,044)(1,838)
8. Acquisition of management rights
On 23 February 2023 Smartshares Limited acquired the management rights and associated assets of
QuayStreet Asset Management (QuayStreet). This acquisition:
• drives further scale in Smartshares, with funds under management (FUM) increasing $1.582 billion at acquisition;
• provides Smartshares, in time, with an enhanced passive product offering; and
• is aligned with the Group strategy to capture complementary opportunities that the greater scale in the
Smartshares business provides to both the NZ Capital Markets and NZX's market business.
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14
For the period from acquisition to 30 June 2023, QuayStreet contributed revenue of $2.594 million and profit
of $0.631 million (excluding one-off integration costs) to the Group's results. If the acquisition had occurred
on 1 January 2023, management estimates that consolidated Group revenue would have been $1.074 million
higher at $55.033 million and consolidated Group profit would have been $0.261 million higher at
$7.234 million for the 6 month period to 30 June 2023. In determining these amounts management has
assumed that the fair value adjustments that arose on the date of acquisition would have been the same if the
acquisition had occurred on 1 January 2023.
aa.. CCoonnssiiddeerraattiioonn ttrraannssffeerrrreedd
The following table summarises the fair value of each major class of consideration transferred at acquisition date:
Note$000
Cash22,500
Equity instruments (6,569,069 ordinary shares)8(i)7,883
Present value of contingent cash consideration8(ii)13,874
Assumed liabilities (employee provisions)(62)
Total consideration44,195
i. Equity instruments transferred
The fair value of the ordinary shares issued is based on the acquisition date (23 February 2023) share price of
$1.20. The consideration shares were in satisfaction of $8.75m of the QuayStreet purchase price.
ii. Contingent cash consideration
Potential earnout consideration of up to $18.75 million is payable based on net FUM inflows from the Craigs
Investment Partners Group (CIP Group) into Smartshare's products over a three-year period.
The terms of the earnout payment are as follows:
Maximum
earnout
$000
Provisional
fair value of
earnout
recognised at
acquisition
$000
Earnout 1 - payable, prorata, on cumulative net FUM inflows from the CIP Group from 24 November
2022 - 23 November 2023, with the maximum amount payable where cumulative net FUM inflows over
that period are $250m.$6,2506,098
Earnout 2 - payable, prorata, on cumulative net FUM inflows from the CIP Group from 24 November
2022 - 23 November 2024, with the maximum amount payable where cumulative net FUM inflows over
that period are $525m.
$11,250 less
any amount
paid under
earnout 14,568
Earnout 3 -
- first component - payable only where cumulative net FUM inflows from the CIP Group from
24 November 2022 - 23 November 2025 exceed $800m.
- second component - payable, prorata on cumulative net FUM inflows from CIP Group from
24 November 2022 - 23 November 2025 in excess of $800m, with the maximum amount payable where
cumulative net FUM inflows over that period are $1.2 billion.
First
component:
$3,750
Second
component:
$3,750
3,208
Total provisional fair value of earnout recognised at acquisition13,874
NZX Interim Report 2023
15
The fair value provisionally recognised at acquisition takes into account management's expectation of the
probability of achieving the earnout targets and is discounted to present value.
At 30 June 2023, the contingent consideration is $14.099 million (current: $6.169 million, non-current:
$7.930 million), with the movement representing an unwind of the discount to the present value.
bb.. AAccqquuiissiittiioonn rreellaatteedd ccoossttss
NZX incurred acquisition-related costs of $1.227 million related to consultancy, legal fees and due diligence
costs. These acquisition-related costs were included in the 2022 Income Statement within acquisition/
integration costs.
cc.. IIddeennttiiffiiaabbllee aasssseettss aaccqquuiirreedd aanndd lliiaabbiilliittiieess aassssuummeedd
The following table summarises the provisionally recognised amounts of assets acquired and liabilities
assumed at the date of acquisition:
$000
Funds management rights32,201
Trade names and trademarks229
Software123
Deferred tax liability(9,001)
Employee provisions(62)
Total identifiable net assets acquired23,490
Less total consideration paid/payable(44,195)
Goodwill20,705
The goodwill is attributable primarily to the synergies expected to be achieved from integrating QuayStreet
into the Group's existing Funds Management business (Smartshares) and future growth potential of
QuayStreet direct investment. Goodwill also includes the operational know-how and value of the transferring
workforce. None of the goodwill recognised is expected to be deductible for tax purposes.
The above amounts have been measured on a provisional basis, pending completion of an independent valuation.
If new information obtained within one year of the date of acquisition about facts and circumstances that
existed at the date of acquisition identifies adjustments to the above amounts or any additional provision that
existed at the date of acquisition, the accounting for the acquisition will be revised.
9. Cash and cash equivalents
Restricted cash and cash equivalents relates to balances held for risk capital requirements by the Clearing
House and is not available for general cash management use by the Group. In addition, cash and cash
equivalents includes amounts of up to $3.9 million at 30 June 2023 (30 June 2022: up to $5.4 million;
31 December 2022: up to $9.3 million) that are held by subsidiaries to comply with regulatory requirements
and are not available for general use by other entities within the Group.
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16
10. Interest bearing liabilities
Unaudited
30 June 2023
$000
Unaudited
30 June 2022
$000
Audited
31 Dec 2022
$000
Term loans22,500--
Subordinated notes40,00039,98040,000
Total drawn debt62,50039,98040,000
Capitalised borrowing costs (net of amortisation)(1,336)(997)(963)
Net interest bearing liabilities61,16438,98339,037
a.Subordinated notes
The subordinated notes are quoted on the NZX debt market.
The subordinated notes first election date occurred on 20 June 2023. On the election date investors choose
whether to retain their subordinated notes (at the reset interest rate noted below) or elect to redeem their
subordinated notes. Redeemed subordinated notes were repurchased by NZX and subsequently resold.
The interest rate was reset to 6.80% effective 20 June 2023 and is fixed until the second election date (20 June
2028), at which point NZX may reset the interest rate.
Otherwise the terms of the subordinated notes are unchanged and are set out in the Group's Annual Report
for the year ended 31 December 2022 and include a financial covenant that has been met throughout the period.
The subordinated notes are measured at amortised cost using the effective interest method, as required by NZ
IFRS 9.
In June 2022 NZX acquired 20,000 of its own subordinated notes under the provisions of the Retail Liquidity
Support Facility.
b.Bank overdraft, revolving credit and term loan facilities
The Group has access to an overdraft facility with a limit of $3.0 million as at 30 June 2023 (30 June 2022:
$3.0 million, 31 December 2022: $3.0 million). The effective interest rate of the facility at 30 June 2023 was
7.77% (30 June 2022: 3.81%, 31 December 2022: 4.80%).
The Group also has a revolving credit facility with a limit of $7.0 million as at 30 June 2023 (30 June 2022:
$7.0 million, 31 December 2022: $7.0 million). No amount was drawn down under either of these facilities at
30 June 2023 (none at 30 June 2022 and 31 December 2022).
The Group term loan facility was utilised to fund the acquisition of the management rights and associated
assets of QuayStreet Asset Management (note 8). The facility limit is $27.5 million (30 June 2022: nil; 31 December
2022: $27.5 million), with $22.5 million drawn down at 30 June 2023 (30 June 2022: nil; 31 December 2022:
nil). The effective interest rate of the facility at 30 June 2023 was 7.58% (30 June 2022: n/a, 31 December 2022:
n/a).
NZX Interim Report 2023
17
The facilities expiry date has been extended to 28 February 2025. Otherwise the terms of these facilities are
set out in the Group's Annual Report for the year ended 31 December 2022. The facilities are unsecured and
contain financial covenants which have been met throughout the period.
11. Shares on issue
The Company had 322,849,628 fully paid ordinary shares as at 30 June 2023 (30 June 2022: 313,136,860,
31 December 2022: 314,709,360). The holders of ordinary shares are entitled to receive dividends as declared
and are entitled to one vote per share at meetings.
Ordinary shares (6,569,069) were issued during the period in partial satisfaction of the purchase price for the
management rights and associated assets of QuayStreet Asset Management (note 8).
The Dividend Reinvestment Plan applied to dividends during the period (2022: suspended for dividends paid
in March 2022 and applied to dividends paid in September 2022) resulting in the issue of 1,009,127 shares
(30 June 2022: no shares; 31 December 2022: 1,572,500).
Additionally 562,072 shares (30 June 2022: 1,261,025; 31 December 2022: 1,261,025) were issued as share
based payments (note 13).
12. Dividends
Unaudited
6 months ended
30 June 2023
Unaudited
6 months ended
30 June 2022
Audited
12 months ended
31 Dec 2022
For year
ended
Cents per
share
Total
$000
Cents per
share
Total
$000
Cents per
share
Total
$000
Dividends declared and
paid
March 2022 - Final31 Dec 213.18,7013.18,701
September 2022 - Interim31 Dec 223.09,394
March 2023 - Final31 Dec 223.19,756
Total dividends paid
during the period
3.19,7563.18,7016.118,095
Refer to note 17 for details of the 2023 interim dividend.
13. Share based payments
Rights that were issued or redeemed under the NZX Employee Long Term Incentive Plan during the period
were on terms consistent with the prior period and as set out in the Group's Annual Report for the year ended
31 December 2022.
During the period $1,000 worth of NZX ordinary shares (gross) were issued to new employees to encourage
staff engagement and shareholder alignment.
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18
14. Related party transactions
a.Transactions with key management personnel
Key management personnel comprises the Group’s senior management team. Key management personnel
compensation comprised the following:
Unaudited
6 months
ended
30 June 2023
$000
Unaudited
6 months
ended
30 June 2022
$000
Audited
12 months
ended
31 Dec 2022
$000
Short-term employee benefits2,9622,7585,625
Long-term employee benefits-81(626)
Share-based payments282133316
Resignation benefits--414
3,2442,9725,729
b.Transactions with directors and other entities NZX directors are associated with
The Company regularly enters into transactions under normal commercial terms and conditions with other
entities that some of the directors may sit on the board of, or are employed by.
Directors fees for the six month period to 30 June 2023 were $249,516 (30 June 2022: $200,000, 31 December
2022: $460,000). Subject to legal or other specific requirements, a portion of NZX directors fees are required
to be applied to the acquisition (on market) of NZX ordinary shares (30 June 2023: $15,873, 30 June 2022:
nil, 31 December 2022: $16,100). Directors fees have been included in other expenses.
c.Transactions with managed funds
Management fees are received from the funds managed by wholly owned subsidiary Smartshares Limited and
are shown in the Income Statement as funds management revenue (refer to note 5).
d.Transactions with associate
The Group holds a 33.33% stake in GlobalDairyTrade Holding Limited (GDT). Transactions entered into with
GDT are under normal commercial terms and conditions.
15. Contingent assets
During the 2022 financial year management identified fees relating to prior Fund financial years that had not
been recognised. No revenue was recognised in the 2022 financial year as it was not virtually certain as to the
recoverability of the additional management fees.
During the period to 30 June 2023 the recoverability of the additional management fees was confirmed and
revenue of $1.4 million relating to prior Fund financial years has been recognised.
NZX Interim Report 2023
19
16. Contingent liabilities
In New Zealand there has been increased regulatory focus on market participant compliance for entities such
as the Group. Accordingly, there has been an increase in the number of matters on which the Group engages
with its regulators including matters such as financial market conduct, reporting and disclosure obligations, tax
treatments, and product disclosure documentation. In the normal course of business the Group may be
subject to actual or possible claims and court proceedings. Where relevant, expert legal advice has been
obtained and, in light of such advice, provisions and/or disclosures as deemed appropriate are made.
There were no contingent liabilities as at 30 June 2023 (30 June 2022: none; 31 December 2022: none).
17. Subsequent events
Dividend
Subsequent to balance date the Board declared an interim dividend of 3.0 cents per share (fully imputed), to
be paid on 5 October 2023 (with a record date of 21 September 2023).
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3839
Independent
review repor t

2
Responsibilities of the Directors for the interim
consolidated financial statements
The Directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the Group interim financial statements in accordance with NZ IAS 34
Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of Group interim financial statements that
are free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the
interim consolidated financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We
conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all
material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly, we do not express an audit
opinion on these interim consolidated financial statements.
This description forms part of our Independent Review Report.
KPMG
Wellington
24 August 2023
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited
by guarantee. All rights reserved.
Independent Review Report
To the shareholders of NZX Limited
Report on the Group interim financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements of NZX Limited
and its subsidiaries (“the Group”) on pages 20 to
37 do not:
i.present fairly, in all material respects the
Group’s financial position as at 30 June
2023 and its financial performance and
cash flows for the 6 month period ended
on that date in compliance with NZ IAS 34
Interim Financial Reporting.
We have completed a review of the accompanying
Group interim financial statements which comprise:
— the Group statement of financial position as at
30 June 2023;
— the Group income statement, statements of
other comprehensive income, changes in equity
and cash flows for the 6-month period then
ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of the Group interim financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of NZX Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
Other than in our capacity as auditor we have no relationship with, or interest in, the Group. Subject to certain
restrictions, partners and employees of our firm may also deal with the Group on normal terms within the ordinary
course of trading activities of the business of the Group. These matters have not impaired our independence as
reviewer of the Group. The firm has no other relationship with, or interest in, the Group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might
state to the shareholders those matters we are required to state to them in the Independent Review Report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the shareholders as a body for our review work, this report, or any of the opinions we have formed.
NZX Interim Report 2023
41

Corporate directory
Getting in touch
Board of Directors
John McMahon (Chair)
Frank Aldridge
Elaine Campbell
Peter Jessup
Dame Paula Rebstock
Rachel Walsh
Lindsay Wright
Chief Executive Officer
Mark Peterson
Chief Corporate and
Financial Officer
Graham Law
General Counsel and
Company Secretary
Sara Wheeler
Registered Office
NZX Limited
Level 1 / NZX Centre
11 Cable Street
PO Box 2959
Wellington
+64 4 472 7599
info@nzx.com
nzx.com
Auditors
KPMG
10 Customhouse Quay
Wellington
+64 4 816 4500
Share Register
Link Market Services Limited
PO Box 91976
Auckland 1142
+64 9 375 5998
enquiries@linkmarketservices.co.nz
linkmarketservices.co.nz
43
NZX Interim Report 2023
42

---

Results announcement
25 August 2023




Results for announcement to the market
Name of issuer NZX Limited
Reporting Period 6 months to 30 June 2023
Previous Reporting Period 6 months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$53,959 16.9%
Total Revenue $53,959 16.9%
Net profit/(loss) from
continuing operations
$6,973 (5.6%)
Total net profit/(loss) $6,973 (5.6%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.03000000
Imputed amount per Quoted
Equity Security
$0.01166667
Record Date 21 September 2023
Dividend Payment Date 5 October 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
($0.1624) ($0.0115)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results please refer to the market
release, Interim report and investor presentation attached.
Authority for this announcement
Name of person

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

25 August 2023

Unaudited financial statements accompany this announcement.

---

Distribution Notice






Section 1: Issuer information
Name of issuer NZX Limited
Financial product name/description Ordinary shares
NZX ticker code NZX
ISIN (If unknown, check on NZX
website)
NZNZXE0001S7
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date Close of trading on: 21/09/2023
Ex-Date (one business day before the
Record Date)
20/09/2023
Payment date 05/10/2023
Total monies associated with the
distribution
1

$9,685,489 (based on number of shares on issue at the
date of this form)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.04166667
Gross taxable amount
3
$0.04166667
Total cash distribution
4
$0.03000000
Excluded amount (applicable to listed
PIEs)
-
Supplementary distribution amount $0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01166667

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
1%
Start date and end date for
determining market price for DRP
Close of trading on:
19/09/23
Close of trading on:
26/09/23
Date strike price to be announced (if
not available at this time)
28/09/23
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New issue
DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
22/09/2023, 5pm (New Zealand time)
Section 5: Authority for this announcement
Name of person

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

25/08/2023

---

1
25 August 2023
NZX INTERIM 2023 RESULTS
INVESTOR PRESENTATION

2
Executive Summary3
Business Unit Highlights7
Acquisitions Update16
Financial Performance18
Financial Position & Cash Flows21
Final Dividends & 2023 Earnings Guidance25
Appendices
1Segmental Analysis29
2Operating Revenue Definitions35
Today’s Agenda
NZX Half Year 2023 Results
Importantnotice
This investor presentation should be read in conjunction with NZX's other periodic
and continuous disclosure announcements, and the financial statements in the
2023 Interim Report, which provides additional information on many areas
covered in this presentation. These are available at nzx.com.
This presentation contains certain 'forward-looking statements' such as indications of,
and guidance on, future earnings and financial position and performance.
This includes statements regarding NZX's current assumptions, which are subject to
market outcomes, particularly with respect to market capitalisation, total capital listed
and raised, secondary market value and derivatives volumes traded, funds under
management and administration growth, acquisition integration costs and technology
costs.
Additionally they assume no material adverse events, significant one-off expenses,
major accounting adjustments, other unforeseeable circumstances, or future
acquisitions or divestments.
Any indications of, or guidance or outlook on, future earnings or financial position or
performance and future distributions are also forward-looking statements.
Forward-looking statements are not guarantees or predictions of future performance
and involve known and unknown risks and uncertainties and other factors, many of
which are beyond the control of NZX, and may involve significant elements of
subjective judgement and assumptions as to future events which may or may not be
correct. There can be no assurance that actual outcomes will not materially differ
from these forward-looking statements.
A number of important factors could cause actual results or performance to differ
materially from the forward-looking statements. The forward-looking statements are
based on information available to NZX as at the date of this presentation.
Except as required by law or regulation (including the Listing Rules), NZX undertakes
no obligation to provide any additional or updated information whether as a result of
new information, future events or results or otherwise.

3
Executive Summary

4
FY23 Targets
H1-23 Progress YTD5 YrTargets Progress
4
Operating
earnings
2
$36.0m-$40.5m
$20.6m
(excluding acquisition,
integration & restructure costs)
Capital listed and
raised
$16.0bn$7.2bn$18.7bn average p.a.
Total value traded$40.0bn$18.0bn $44.3bn average p.a.
Information services
revenue
6.9% avg. growth
16.1% growth
(excl. connectivity)
8.4% CAGR growth
(excl. connectivity)
Funds under Mgmt.
14% avg. growth
(excl. acquired
FUM)
10.0% growth
(excl. acquired FUM)
(net cash flows +2.7%
and market return 7.3%)
22.8% CAGR growth
[excl. acquired FUM]
Funds under Admin.
Migrate new clients
and OE clients onto
the platform
8.7% growth
(net cash flows +0.9%
and market return 7.8%)
45.7% CAGR growth
Dairy derivatives
lots traded
0.55m –0.65m lots0.26m lots traded8.5% CAGR growth
HY23 results highlights
Demonstrating progress and resilience –NZX has maintained the positive momentum in delivering to our growth strategy, and the
operating earnings demonstrate the resilience of NZX’s earnings base
NZX Half Year 2023 Results
Notes:
1Data is for the 6 month period ended 30 June 2023. Percentage changes represent the movement for the interim period June 2022 to June 2023.
2Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share of profit of associate. Operating earnings is not a defined performance measure in NZ IFRS.The Group's definition of
operating earnings may not be comparable with similarly titled performance measures and disclosures by other entities. Refer to financial statements note 2 for a reconciliation of EBITDA to NZ IFRS profit for the period.
3The 2023 Targets are detailed in the Investor Presentation in February 2023. Data is “for the year ended 31 December 2023,” or “as at 31 December 2023” (as applicable). H1-23 Progress YTD represents the value for the 6 months ended 30 June 2023, except for Funds Under Management
and Funds Under Administration which are the movement in balances as at 31 December 2022 to 30 June 2023.
4Progress towards 5-year targets is discussed further in the Business Unit Highlights section.
✓
Highlights
1
Performance relative to 2023 Targets
3
Revenue
$54.0 million
16.9% increase
Operating Earnings
2
excl. acquisition, integration
& restructure costs
$20.6 million
16.8% increase
Expenses
excl. acquisition, integration
& restructure costs
$33.4 million
16.9% increase
✓
✓
✓
✓
✓
Net Profit After
Tax
$7.0 million
5.6% decrease
Operating Earnings
2
incl. acquisition, integration &
restructure costs
$20.0 million
15.0% increase
Interim Dividend
(fully imputed)
3.0 cps
✓

5
NZX Full Year 2023 Results
NZX Group overview
A diverse and connected capital markets focused business
NZX Group
Corporate, Legal, Policy, Technology
Capital Markets
[Cash (Shares), Derivatives, Energy,
Environmental, Fonterra Markets]
Information
Services
Market data,
Indices,
Connectivity
Funds Management
(Smartshares,
SuperLife)
A leading investment fund
manager in New Zealand,
serving more than 177,000
investors*and more than
$10.7 billion Funds under
Management*
Secondary markets
NZX Wealth
Technologies
A market leading, tailored
custodial investment
management platform with
more than $10.8 billion in
Funds Under
Administration*
Capital Markets
Origination
Existing and new
issuance
Markets
Development
Market
Participants
Market
Operations
Clearing House &
Operations
Strategic Delivery
Derivatives
(including dairy
with SGX),
Electricity and
Carbon Markets
NZ RegCo
(Issuer and
Participant
Compliance,
Surveillance)
An independently
governed agency
which performs all
frontline regulatory
functions in support
of NZX’s statutory
obligations as a
licensed market
operator
* As at 30 June 2023

6
NZX Half Year 2023 Results
Developing our strategy to 2028
Our strategy to 2028 is simple –round out ourproduct offering in Capital Markets and drive scale and operating leverage acrossthe
businesses
The Capital Markets market cycles: Market cycles are inevitable, we have the building
blocks for further opportunities and growth and as markets recover, we expect to see
capital markets activity levels accelerate and asset prices rise
Maturing our Market: We know our product offering could be expanded (equity derivatives,
carbon markets) which is key to driving further growth in capital markets activity and greater
global connections–rounding out our product offering will broaden our earnings base and
add scale to our settlement and clearing activities
Continued secular growth: there are long-term structural market tail winds that support
growth in the managed funds and platform businesses
Continued M&A activity: We will continue to exploreM&A activity to help drive and
accelerate growthwhere appropriate
Operating Leverage: Still investing for growth but also focusing on efficiencies and driving
operating leverage

7
Business Unit Highlights

8
Capital Markets Origination –Capital Listed and Raised
NZX Half Year 2023 Results
Solidperformanceforthehalfyear,withthecapitallistedbeingdrivenbyretail/sustainabledebt
Capital Listed / Raised (new and secondary capital raisings)$7.2 billion
•Relative to H1 5 year rolling average (10.0)%
•Movement from H1-22(23.7)%
Macro Drivers
•Primarylistingfeesdrivenbyretaildebtlistingsduetorisingratesleadingtohighercoupons
•HybridcapitalraiseshavebeenstrongwithissuancefromKiwibank,BNZandWestpac
•SecondaryissuancefeeshavebeenrelativelygoodwithlargecapitalraisesfromRymanandInfratil
Origination and activity
Theteamof7FTEsisoperatingatrueoriginationmodel–withactivepipelinedevelopmentand
conversion
A number of “Listing your company” and “Raising capital in New Zealand” events have been held in
2023, with partners including, Minter Ellison, Cameron Partners, Elevation Capital, Duncan Cotterill,
Northington Partners and Excellent
Show casing current listed clients through various different mediums including podcasts, videos, social
media, retail investor briefings
NZX has unveiled a new high-tech electronic ticker on the New Zealand Capital Markets Centre
building, with the ability to display real-time market information, higher quality graphics and
animations to increase NZX’s commercial presence
Listings –5 new Smartsharesfunds listed:
•Global Government Bonds Fund
•US 500 Hedged Fund
•Global Property Fund
•Global Infrastructure Fund
•Australian Equities ESG Fund
Existing issuers -14 new debt issues in H1 2023:
Green Bonds issued include:
•Meridian issued $200m
•Kiwi Property issued $125m
•Contact Energy issued $300m
•Mercury issued $150m
The percentage of green bonds listed on the NZDX has increased to 30.14% of all outstanding debt
issuance

9
Secondary Markets –Value Traded / Cleared
Value traded levels comparable to H2 2022, reflecting thechallenging macroeconomic environment
NZX Half Year 2023 Results
Macro Drivers
Valuetraded/cleared
Lowerlevelsoftotalvaluetradedreflectsthecurrentlevelsofmarketuncertaintyandachallenging
macroeconomicenvironmentofhighinflationandinterestraterises.
Despitethisthereweresomepositives:
•debttradingvaluesincreased26.3%to$1.16billion;reflectingrenewedinterestinthisproductsetdriven
bymacro-economicconditionsshiftingacrosstheyear
•levelsofretailandETFtradingremainsconsistentdespiteachallengingenvironment
NZXDepository
DepositoryOTCtransactionshavebothreducedduetosoftertrading,however,valueofassetsundercustody
haveincreasedinlinewithmarketvalue
ActiveengagementofcustodianstojoinNZX’sdepositorybusinesswiththelongtermaimofdrivingdown
costsofposttradeintheNewZealandcapitalmarkets
MarketDevelopment
T.E.ACustodiansLimitedaccreditedasadepositoryparticipantallowingthemaccesstotheNZXDepository
servicesandfunctionalitytosupporttheircustomerbase.
NZXDARKProject(tocreateamidpointorderbook)continueswithtechnicaldevelopment,testingand
regulatoryengagementtooccuracross2023andaproductlaunchin2024.
WorktorelaunchS&P/NZX20IndexFuturecontinueswithanumberofworkstreamsprogressingincluding
SelfMatchPreventionenhancements,clearinghouse(recoverytools)andparticipantengagement.
BNPParibascontinuestobehighlyengagedonbecomingaGeneralClearingParticipant-thishasthe
potentialtoconnectmoreglobaltradingfirmstotheNZX.
Workbegunonstageoneofimprovementofdepositorysystems,focussedoncashmanagementand
payments,tosupportposttradeinNewZealand.
WorkunderwaytotransitiontoFinancialMarketInfrastructuresActin2024,whichwillbringthelegislation
regulatingNZXClearingintolinewithinternationalexpectations
Trading / Clearing
•Traded Value $18.0 billion
•Movement from H1-22: (13.4)%
•Relative to H1 5 year rolling average: (19.7)%
•Average annual value traded (2019-2023): $44.3 bn
•Traded Volume 4.92 million down (30.5)% on H1-22
•% of value on-market 62.5% down 5.1%
Depository
•Assets under custody up 17.6% to $6.71 billion
•Depository OTC trades down (0.9)% to 39,922

10
Information Services (Data & Insights) revenue
Growth continues through H1 2023, with continued interest in NZX market shown by terminal numbers being maintained at
2022 levels.
NZX Half Year 2023 Results
Note: Information Services Revenue in graph excludes connectivity revenue to ensure comparability with 2018 strategic targets
Information Services revenue
InformationServicesrevenueincreasedto$10.4millionup15.4%(excludingconnectivityrevenuethe
increaseis16.1%)
•Royaltyrevenue–grewby5.1%duetotheaveragenumbersofprofessionalterminalsincreasing
1.6%plusfeeadjustments
•Subscriptionsandlicencerevenue–grewby7.4%reflectingthecontinuedgrowthinclient'sdata
usageandabilitytocapturelicencerevenuestreamspostaudit,resultinginincreasedlicence
numbers(7.2%),partiallyoffsetbyreducedsubscriptions(1.0%),andfeeadjustments
•Dairysubscriptionrevenuereducedslightlyduetolowerproductsubscriptions(1.6)%
•Indicesrevenue–grewby71.2%withcontinuedgrowthinuseofindicesbythemarket.
•Connectivityrevenue–increased11.0%whichcontinuestoreflectchangesinclientconnectivity
requirementsandproductoffering(i.e.standardsofperformanceandincreasedresilienceacross
themarket)
•Auditsandbackdatedlicencerevenue–increasedby216.3%withasignificantnumberofaudits
completedin1H2023.Minimalauditrevenueisexpectedovertherestof2023.
InformationServicesrevenueCAGRsince2018is8.4%
Future revenue growth driven by:
Enhanced product development capability and continued focus on client interactions and global best
practice
Trans-Tasman connectivity upgrade to increase resilience and simplify connecting global clients to NZX
trading and clearing systems
Dedicated sales team focused on customer satisfaction and driving a sales pipeline that is aligned with
prioritised customer segments
Information Services Revenue$10.4 million
Movement from H1-22:
•total revenue+ 15.4%
•excluding audit and back dated licenses+9.9%
Split by revenue type:
Royalties, subscriptions, licenses and indices+ 9.7%
Audits and back dated licenses+ 216.3%
Connectivity+ 11.0%

11
Dairy Derivatives and GlobalDairyTrade
The expected significant growth from the Singapore Exchange strategic partnership is being achieved
NZX Half Year 2023 Results
Strategic Partnerships
Dairy Derivatives -Singapore Exchange (SGX) strategic partnership now 1.5 years since go-live in
November 2021
Partnership has extended market distribution and expanded global access:
•Trebled the number of active trading and clearing members utilising the contracts with potential for
further expansion (i.e. >70 connected with SGX)
•Working with SGX’s network of global sales offices and resources)in the dominant region for dairy
imports (Asia)-hosted Mandarin speaking events in Shanghai and Beijing plus other SEA locations
•partnership is a revenue share agreement -NZX retains a base level of revenue
GlobalDairyTradeHoldings Limited (GDT) -Added three new global suppliers to market from EU and
US market. Platform developments to assist liquidity in the associated derivatives markets underway
Dairy Data & Insights -Strategy refresh refocussed on building derivatives market participation and
generating additional value-added data points
Platform and Operations
•Dairy Derivatives -commenced a Market Maker and New Trader incentive scheme on SGX which
has reduced on screen spreads and encouraged new proprietary and financial firms to connect
•GDT -‘GDT Pulse’ trial extended for a further 12 months based on good adoption by the market,
providing a view of weekly spot prices for WMP to increase physical market information to the
derivatives market
Dairy Derivatives Lots traded 260k
•Relative to H1 5 year rolling average +31.1%
•Movement from H1-22+30.7%
•On screen liquidity averaged 64% since the moveto SGX
•Monthly volume record achieved in March at 66,840 lots

12
Smartshares –Funds Under Management (FUM)
Continues to drive growth, has positive net cash flows. We remain positive about Smartshares’ future growth opportunities,
and we look to further scale this business through both organic growth and improved operating leverage
NZX Half Year 2023 Results
Macro Drivers
NZ ETF penetration rate remains low compared to US/Europe
KiwiSaver future growth profile is expected to significantly increase total market FUM
Growth in non-KiwiSaver investments and self-directed investing platforms
FUM growth target 14% p.a.
Funds Under Management at $10.67 billion, up 29.1% from 31 December 2022 due to combination of
positive cashflows, positive market return and QuayStreetAsset Management acquired FUM
Smartshares ETF tradingaccounted for 6.1% of NZX traded value in H1-23 (FY-22: 5.7%)
Strategic step change through scale
ASB SMT acquisition:
•the transition of investment administration, investment management and registry services is on track to
be completed in the third quarter of 2023
•expected synergies/efficiencies, including those arising from in-house management of some asset
classes, will be realised when the transition is complete
QuayStreetAsset Management acquisition –the acquisition of the management rights and related assets
completed in February 2023. The acquisition provides Smartshares with:
•an enhanced passive product offering;
•the opportunity to manage additional asset classes in-house;
•a Product Support and Distribution Agreement with Craigs Investment Partners; and
•if earn out cash flow targets are achieved there would be significantly increased operating earnings
In H1-23 we have launched 5 new ETFs –Smartshares US500 (NZD Hedged) ETF, Smartshares Global
Government Bonds ETF, Smartshares Global Infrastructure ESG ETF, Smartshares Global Property ESG ETF,
and Smartshares Australian Equities ESG ETF

13
Wealth Technologies –Funds Under Admin (FUA)
Client transitions continue, with successful pipeline conversions and the positive outlook continues
NZX Half Year 2023 Results
Macro Drivers
Increased compliance obligations are forcing large advisor firms to upgrade their internal platforms or move to
a SaaS offering
Increasing cost to service clients impacts medium adviser firms, making the Wealth Technologies operations
option cost efficient
Platform and Operations
NZX Wealth Technologies continues to be operating earnings positive
Now have a scalable platform with a highly skilled operational team
CAPEX activity reflects new client migrations and preparation for future FUA transitions
Clients
Funds Under Administration at $10.82 billion, up 8.7% from 31 December 2022 due to combination of positive
cashflows (+0.9% of opening FUA) and market returns (+7.8%)
16 clients on the new platform, with all clients now migrated from the legacy platform which is now
decommissioned
Successfully onboarded in H1-23 initial tranche of FUA for a significant Software as a Service (SaaS) only client,
and project continuing for phased transition (through 2023 and 2024) for remaining substantial FUA
Five advisors won over H1-23, onboarding underway with expected completion in H2-23 with FUA circa $550m
In final negotiations with a couple of full custodial clients. Additionally, advanced stage RFI discussions are
ongoing with a significant full custodial client
Overall the pipeline remains strong for H2-23 and 2024 with contracted FUA growth to more than double FUA
in the medium term
We remain confident the growth from the new business transition activity and the prospect pipeline will ensure
Wealth Technologies meets its objective of being i) cashflow breakeven by the end of 2024,and ii) to deliver on
our target of FUA between $35 and $50 billion.
In late 2022 NZX did consider whether there was a strategic partner that could enhance the business. However,
with Wealth Technologies long-term growth prospects continuing to strengthen, this is no longer a priority and
discussions with a limited number of parties have concluded.

14
People
NZX has strong engagement, a diverse workforce and a healthy culture across the organisation. Work is required to promote
and recruit more women into leadership positions.
NZX Half Year 2023 Results
Culture and Engagement
•NZX users the Gallup survey to measure staff engagement
twice per year
•Employee engagement lifted in 2023 by 0.02 to 4.27 and
has trended positively since COVID
•NZX ranks close to the top third of global companies that
utilise the Gallop survey
Health, Safety & Wellbeing
•NZX has an excellent safety record, with Total Recordable
Injury Rate (TRIR) of 0.73 incidents per 200,000 hours
worked.
•NZX absence rate remains stable at 1.7%.
•NZX supports flexible working options for our staff, with the
majority of our people now coming into the office either on a
regular or fulltime basis.
Diverse Workforce and Gender Pay Gap (cont)
•NZX has 30% of its workforce that have greater than 5 years
experience within the organisation, and 50% with greater than
2 years
•NZX employees a wide spread of age bands
•NZX has a gender balanced Board and workforce.
Diverse Workforce and Gender Pay Gap (GPG)
•Women and men are paid the same for the work that they
perform
•However, NZX has an opportunity to promote and recruit
more women into leadership roles

15
ESG
NZX’s focus is to create value while delivering a positive impact on society and the environment
NZX Half Year 2023 Results
Strategy
•Our ESG Strategy runs through the heart of our business –as the operator of New Zealand’s
stock exchange and markets, as a financial services and technology business, and as a regulator.
In particular, robust governance (such as the Corporate Governance Code), is paramount to the
role that NZX plays in New Zealand
•NZX is undertaking a materiality assessmentto grow and deepen NZX stakeholder
understanding and relationships, support and further inform NZX strategy execution, and guide
future ESG prioritisation, targets, and reporting
Core Pillars of NZX’s approach
•The four “Ps” –Planet, People, Prosperity and Principles of governance –are the core pillars of
NZX’s ESG approach. We ensure it aligns with our organisational purpose, vision and strategy,
and with New Zealand’s long-term sustainability goals and international commitments
(including the Paris Agreement)
NZX is net carbon zero certified
•As a business, NZX is committed to taking action on climate change. In 2021 and 2022 NZX
achieved net carbon zero certification from Toitū Envirocare. Sustainable economic growth is a
priority for NZX. Public markets will continue to play an important role in facilitating the flow of
capital towards decarbonising the New Zealand economy
Meeting legislative & TCFD requirements
•In 2023 under the mandatory climate-related disclosures framework (Aotearoa New Zealand
Climate Standards, ANZCS), NZX will be reporting our climate change obligations regarding
governance, strategy, risk management, and metrics and targets.

16
Acquisition Update

17
Acquisition Update
NZX Half Year 2023 Results
Acquisition -QuayStreetAsset Management (QS)
Investment Summary
Acquisition of the management rights and related assets of QS completed on 23 February 2023, with the transaction rationale being:
•Drives scale in Smartshares, the passive funds management business. For example, the enlarged investment management team enables synergies (relating to in-house management of some asset classes) to
be obtained from the ASB SMT integration;
•provide Smartshares with an enhanced passive product offering;
•Includes a Product Support and Distribution Agreement with Craigs Investment Partners to develop new products; and
•Is aligned with NZX Group strategy to capture complementary opportunities that greater scale in the Smartsharesand Wealth Technologies businesses provides to both NZ Capital Markets and our Markets
business
Transition / migration –planning is progressing well
•From 23 February 2023 Smartshares is responsible for all QS products, with the investment management and client relationshipsteams transferring to Smartshares. Craigs Investment Partners (and
outsource providers) will continue to provide certain back-office services for a period
•Transition planning to migrate back-office functions is underway; with transition expected to be completed by mid-2024
Financial Impact in 2023 –is in line with expectations
Income Statement*:
•Operating Earnings $1.696m
•Non operating expenses, including:
•amortisationof management rights & software($0.557)m
•interest expenses ($0.225)m
•tax expense ($0.282)m
•Net Profit After Tax $0.632m
Balance sheet –the acquired assets and liabilities have been provisionally recognisedbased on their fair values at acquisition:
•Management rights$32.201m
•Other assets (software and trademarks)$0.352m
•Goodwill$20.705m
•Deferred tax liability($9.001)m
•Employee provisions($0.062)m
The management rights assets are accounted for as definite life assets and amortised on a straight-line basis over 16 –24 yearsfor accounting purposes; with the management rights assets net of amortisation
being $31.723m at 30 June 2023
* Additionally, there are acquisition and integration costs ($0.2m)

18
Financial Performance

19
Income Statement
NZX Half Year 2023 Results
Notes:
1Operating earnings (EBITDA) is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be
comparable with similarly titled performance measures and disclosures by other entities. Refer to financial statements note 2for a
reconciliation of EBITDA to NZ IFRS profit for the period.
2Finance Technology Partners (June 2023) EBITDA Margins (median) information for Regional/Country Based Exchanges is estimatedat
2023: 40%.
H1-2022
$000
H2-2022
$000
H1-2023
$000
Change vs
H1-22
Fav/(adv)
Change vs
H2-22
Fav/(adv)
Operating Revenue46,175 49,551 53,959 16.9%8.9%
Operating Expenses (excl. acq/int/restructure
costs)
(28,571)(30,550)(33,394)(16.9%)(9.3%)
Operating earnings
1
(excl.
acq/int/restructure
17,604 19,001 20,565 16.8%8.2%
Acquisition, integration & restructure costs(184)(1,356)(524)(184.8%)61.4%
Operating earnings
1
17,420 17,645 20,041 15.0%13.6%
Net finance expenses(1,044)(794)(1,873)(79.4%)(135.9%)
Gain on disposal of assets3 --100.0%-
Gain on lease modification--15 n/an/a
Depreciation and amortisation expenses(6,756)(7,104)(8,335)(23.4%)(17.3%)
Share of profit of associate-146 392 n/a168.5%
Income tax expense(2,240)(3,117)(3,267)(45.8%)(4.8%)
Profit for the period7,383 6,776 6,973 (5.6%)2.9%
Operating Margin
(excl. acq/int/restructure )
38.1%38.3%38.1%(0.0%)(0.6%)
FTEs292.0319.1331.913.7%4.0%
Operating Earnings
Operating earnings of $20.6 million, excluding one-off acquisition, integration & restructure
costs, was 16.8% higher than H1-22 and 8.2% higher than H2-22.
The operating margin at 38.1%, excluding acquisition, integration & restructure costs (H1-22:
38.1%, H2-22: 38.3%), is lower than our peers
2
due to the diverse nature of NZX (i.e. energy
markets, non-markets businesses and NZ RegCo) relative to peers.
Operating earnings by business unit are discussed appendix 1.

20
Income Statement
NZX Half Year 2023 Results
Non Operating Expenses
Net finance costs include:
•interest income on operational cash balances, Clearing House risk capital and regulatory working
capital, which have been positively impacted by increasing interest rates
•interest expenses (including amortised borrowing costs) on the subordinated notes, lease
liabilities and term loan (to fund the QuayStreetacquisition in February 2023), as well as the
unwind of the present value discount on the QuayStreetearnout
•net gain / (loss) on foreign exchange
Depreciation and amortisation increased due to the full period impact of:
•Wealth Technologies –increased amortisation of the core platform and new client migrations
completed in late 2022 and H1-23
•Smartsharesamortisation commenced (from 23 February 2023) on the acquired QuayStreet
Asset Management managementrights (increased amortisation is approx. $0.6m)
•Auckland office –depreciation on the fit out of additional space in the new Auckland office
(commenced in December 2022)and associated right of use assets
Share of profit of associate relates to our investment in GlobalDairyTrade(GDT). GDT’s expansionary
strategic plan over the next 3-year is expected to result in NZX’s share of profit of associate to be low
until GDT’s strategic initiatives successfully mature
Effective tax rate is higher than statutory rate of 28% due to non deductible items, partially offset by
differences in valuation (accounting v taxation) on vesting of long term incentive schemes
Operating Revenue and Expenses
Operating revenue increased to $54.0 million (+16.9% on H1-22 and +8.9% on H2-22) with:
•growth in Annual Listing Fees, Dairy Derivatives, Information Services, Funds Management
(including from the acquisition of QuayStreetAsset Management in February 2023) and Wealth
Technologies business units’; partially offset by
•reduced levels of securities trading and securities clearing revenues
Operating expenses, excluding acquisition, integration & restructure costs,increased to $33.4
million (+16.9% on H1-22 and 9.3% on H2-22) driven by growth in:
•Personnel costs –largely in the funds management business as Smartshares scales up for the
operations of the QuayStreetAsset Management and ASB Superannuation Master Trust, as well
as wage inflation driven by a highly competitive and tight labour market;
•Information technology –additional licencesrequired for the operation to the QuayStreet
business and inflationary pressure;
•Increased travel, premises (with new office space added in Auckland’s Capital Market Centre) and
statutory and compliance costs
Investments for growth have been the acquisition of the QuayStreetAsset Management
managementrights and related assets, as well as progressing on the relaunch of S&P/NZX20 Index
Futures and launch of NZX Dark (the mid point order book).
Acquisition, integration & restructure costs largely relate to the integration of the ASB
Superannuation Master Trust

21
Financial Position and
Cash Flows

22
Balance Sheet as at 30 June 2023
Cash and cash
equivalents
•Clearing House risk capital ($20 million) which is not available for general use;
•Clearing House complies with International Organisation of Securities Commission’s
principles expectations for the retention of sufficient working capital (including cash of
approximately $2.3 million); and
•Smartshares maintains sufficient net tangible assets in accordance with its license
requirements (including cash of approximately $1.6 million)
Funds held on behalf of
third parties (assets and
liabilities) offset
•Relates to issuer bond deposits, participants’ collateral deposits and deposited funds
(including any held in the Mutualised Default Fund)
•Amounts are repayable to issuers and participants and not available for general use
Investment in Associate•Investment in GlobalDairyTradeLimited (GDT)
Right-of-use lease assets
and lease liabilities
•Relates to leased premises and IT equipment
Other non-current assets•Consists of property, plant & equipment, intangible assets and goodwill
•Increased due to the acquisition of QuayStreetAsset Management
Interest bearing
liabilities
•Relate to:
•Subordinated notes ($38.7m) -the notes first election date was 20 June 2023
where the subordinated notes rolled over with redemption requests resold.
The interest rate was reset to 6.8%; and
•Term loan ($22.5m) –drawn down to fund the QuayStreetacquisition
Other current liabilities •Includes income in advance largely related to annual listing (billed on 30 June each
year) and data subscriptions, employee benefits payable, tax payables and the current
portion of the earnout provision relating to the acquisition of QuayStreet
Other non-current
liabilities
•Includes:
•the non-current portion of the earnout provision relating to the acquisition of
QuayStreet;
•Deferred tax liabilities, including those recognisedon acquisition of QuayStreet
June 2022
$000
December 2022
$000
June 2023
$000
Current assets
Cash and cash equivalents36,52740,611 32,508
Receivables and prepayments27,55317,132 32,691
Funds held on behalf of third parties27,22130,28226,281
Total current assets
91,30188,025 91,480
Non-current assets
Right-of-use lease assets11,35719,204 18,266
Investment in associate16,63816,78317,174
Other non-current assets106,844109,187 160,302
Total non-current assets
134,839145,174 195,742
Current liabilities
Trade payables9,379 7,4349,520
Other current liabilities21,896 20,078 30,963
Lease liabilities1,319 997 666
Funds held on behalf of third parties27,221 30,28226,281
Interest bearing liabilities38,98339,037 -
Total current liabilities
98,798 97,828 67,430
Non-current liabilities
Interest bearing liabilities--61,164
Lease liabilities12,280 20,679 20,345
Other non-current liabilities2,973 2,984 19,588
Total non-current liabilities
15,25323,663 101,097
Net assets
112,089 111,708118,695
NZX Half Year 2023 Results

23
CAPEX
Trading, Clearing and Energy Systems CAPEX
•Trading, clearing and energy systems CAPEXdriven by specific system life cycles which
historically have resulted in large multi-year projects
•In H2-23 we expect to do further trading system enhancements for NZX Dark (the mid point
order book) and NZX20 Index Futures
PP&E and Other Software CAPEX
•PP&E CAPEX relates to the normal life cycle replacements for IT equipment and software, as
well as completing the implementation of a strategic storage solution.
•In 2021 we established the Capital Markets Centre in Auckland, in 2022 we completed some
of the level 15 IT fit out, completed the level 14 construction, and commenced the
replacement of the old Auckland ticker, which we completed in 2023.
•Other software CAPEX relates to technology upgrades and enhancements of the NZX
technology architecture which strengthens NZX’s cyber security
Financial Services Growth Businesses CAPEX
•Wealth Technologies CAPEX in the current period relates to continued product development
and new client migration activity
•We expect capitalisationlevels to remain high whilst there is new client migration activity
•Smartshares CAPEX relates to system enhancements required for the integration of the ASB
Superannuation Master Trust
•Over the remainder of 2023 and into 2024 we expect further system enhancements and
additional digital tools as the acquisitions are integrated into the Smartshares business
NZX Half Year 2023 Results

24
Cash Flows
Operating Activities
•Operating activities cashflow represents net profit after tax less non-cash items (e.g. depreciation and
amortisation, share of profit of associates, share based payments)
•The increase on H1-22 reflects a combination of higher operating activities cashflow and working
capital movements (e.g. timing of receivables receipts and trade payables and tax payments)
•NZX’s cashflows from operations mainly occur in the second half of the year when annual listing and
participant fees are collected
•We are conscious of Wealth Technologies’ cash burn and are targeting to be cashflow positive by late
2024 based on current migration pipeline
Investing Activities
Investing activities relate to:
•Payments for PPE & other intangible assets, including:
•Wealth Technologies software development;
•Technology upgrades and enhancements, including to the NZX technology architecture, and
system enhancements required for the integration of the ASB Superannuation Master Trust;
and
•Completion of the new Auckland office Level 14 fit out and new Auckland ticker
•Payments for acquisitions –relates to the acquisitions of QuayStreetAsset Management in H1-23 and
the ASB Superannuation Master Trust management rights and GlobalDairyTradeHoldings Limited in
H1-22
Financing Activities
Financing activities includes:
•Net receipts from equity raisings in H1-22 to fund the acquisitions of the ASB Superannuation Master
Trust management rights and GlobalDairyTradeHoldings Limited;
•Term loan to fund the acquisition of QuayStreetAsset Management;
•Payments of lease liabilities;
•Transaction costs relating to the renewal of NZX’s subordinated notes; and
•Dividends which are net of participation in the dividend reinvestment plan (which was suspended for
the March 2022 dividend due to the equity raising occurring at that time)
H1-2022
$000
H2-2022
$000
H1-2023
$000
Operating activities
-Operating activities cashflow14,33414,07016,076
-Working capital movements(13,150)8,182(9,146)
Investing activities
-Payments for PPE & other intangible assets(5,946)(9,550)(5,295)
-Payments for acquisitions(41,004)(633)(22,438)
Financing activities
-Net receipts from equity raising42,63831-
-Net receipts from term loan--22,500
-Dividends paid(8,701)(7,486)(8,544)
-Other financing activities(706)(530)(1,256)
Net decrease in cash and cash equivalents(12,535)4,084(8,103)
NZX Half Year 2023 Results

25
Interim Dividend and
2023 Earnings Guidance

26
Interim Dividend2023 Earnings Guidance
Interim Dividend
•The Board has declared a fully imputed dividend of 3.0 cents per share
•Dividend to be paid on 5 October 2023 to shareholders registered as at the record
date of 21 September 2023
Dividend Policy
•The policy is to pay between 80% to 110% of adjusted Net Profit After Tax over time,
subject to maintaining a prudent level of capital to meet regulatory requirements
•Adjustments include reversing the impact of intangible asset impairments (if any)
•NZX is focused on future earnings to support dividends
Dividend reinvestment plan
•Available for the interim dividend
•Shares will be issued at 1.0% discount
2023 Earnings Guidance
NZX’s full year 2023 Operating Earnings (EBITDA)
1
, excluding acquisition, integration and
restructure costs, are expected to be in the range of $36.0 million to $40.5 million. The
half-year financial result indicates NZX is tracking towards the upper end of the 2023 full
year guidance range.
The guidance is subject to market outcomes, particularly with respect to market
capitalisation, total capital listed and raised, secondary market value and derivatives
volumes traded, funds under management and administration growth, acquisition
related integration costs and technology costs
Additionally, this guidance assumes there is no further material decline in the macro-
economic environment and market conditions, and there are no significant one-off
expenses, major accounting adjustments, other unforeseeable circumstances, or future
acquisitions or divestments
The Earnings Guidance excludes the expected impact of the GDT investment as this is
recognised as “share of profit of associate” (i.e. after Operating Earnings)
Notes:
1Operating earnings (EBITDA) is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be comparable with similarly titled performance measures and disclosures by other entities.
NZX Half Year 2023 Results

27
Questions?

28
Appendices

29
Appendix 1: Segmental Analysis -Income Statement by Business Unit
Notes:
1
Markets is the integrated business that supports the growth of NZ capital markets with the revenue generating BUs being:
•Capital Markets Origination –provider of issuer services for current and prospective customers;
•Secondary Markets –provider of trading and post-trade services for securities and derivatives markets operated by NZX, as well as the provider
of a central securities depository and Market operator for Fonterra Co-Operative Group, the Electricity Authority and the Ministry for the
Environment; and
•Information Services (previously Data & Insights) –provider of data services for the securities and derivatives markets, and analytics for the
dairy sector.
Additionally, the Markets business cost base includes the IT costs specific to providing NZ capital markets services.
2
Funds Management (Smartshares Limited) –comprises the SuperLifesuperannuation and KiwiSaverproducts, SmartsharesExchange Traded Funds,
ASB Superannuation Master Trust and QuayStreetAsset Management.
3
Wealth Technologies (NZX Wealth Technologies Limited) –provides a platform that enables advisers and brokers to manage client investments
4
Corporate Services provides accommodation, legal, accounting, IT, HR, communications and project management support to the otherbusiness
units and subsidiaries. Related costs are currently not recharged to the commercial business units and subsidiaries (other than NZ RegCo)
5
Regulation (NZX Regulation Limited) –is the independently-governed agency which performs all of NZX’s frontline regulatory functions, this ensures
structural separation of the Group's commercial and regulatory roles.
6
Operating earnings (EBITDA) is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be comparable
with similarly titled performance measures and disclosures by other entities. Refer to financial statements note 2 for a reconciliation of EBITDA to NZ
IFRS profit for the period.
6 months ended June 2023 (H1-23)
$000
Capital Markets
Origination
Secondary
Markets
Information
services
Markets
1
Sub-total
Funds
Management
2
Wealth
Technologies
3
Corporate
Services
4
NZX Commercial
Operations
Sub-total
Regulation
(NZ RegCo)
5
NZX Group
Total
Operating revenue
8,191 12,569 10,373 31,133 17,977 3,026 51 52,187 1,772
53,959
Operating expenses (excl acq/integration/restructure costs)
(10,226)(7,705)(2,931)(10,521)(31,383)(2,011)
(33,394)
Operating earnings (exclacq/integration/restructure costs)
6
20,907 10,272 95 (10,470)20,804 (239)
20,565
Acq/integration/restructure costs
(41)(451)(32)-(524)-
(524)
Operating earnings
6
20,866 9,821 63 (10,470)20,280 (239)
20,041
Depreciation, amortisation & gain / loss on disposal
(1,358)(1,952)(3,213)(1,812)(8,335)-
(8,335)
Earnings before Interest, tax and share of profit of associate
19,5087,869(3,150)(12,282)11,945 (239)
11,706
6 months ended December 2022 (H2-22)
$000
Capital Markets
Origination
Secondary
Markets
Information
services
Markets
1
Sub-total
Funds
Management
2
Wealth
Technologies
3
Corporate
Services
4
NZX Commercial
Operations
Sub-total
Regulation
(NZ RegCo)
5
NZX Group
Total
Operating revenue
8,873 12,378 10,362 31,613 13,027 3,141 40 47,821 1,730
49,551
Operating expenses (excl acq/integration/restructure costs)
(9,432)(6,274)(2,276)(10,617)(28,599)(1,951)
(30,550)
Operating earnings (exclacq/integration/restructure costs)
6
22,181 6,753 865 (10,577)19,222 (221)
19,001
Acq/integration/restructure costs
-(1,356)--(1,356)-
(1,356)
Operating earnings
6
22,181 5,397 865 (10,577)17,866 (221)
17,645
Depreciation, amortisation & gain / loss on disposal
(1,329)(1,236)(2,871)(1,668)(7,104)-
(7,104)
Earnings before Interest, tax and share of profit of associate
20,8524,161(2,006)(12,245)10,762 (221)
10,541
6 months ended June 2022 (H1-22)
$000
Capital Markets
Origination
Secondary
Markets
Information
services
Markets
1
Sub-total
Funds
Management
2
Wealth
Technologies
3
Corporate
Services
4
NZX Commercial
Operations
Sub-total
Regulation
(NZ RegCo)
5
NZX Group
Total
Operating revenue
8,092 12,968 8,992 30,052 11,459 2,850 16 44,377 1,798
46,175
Operating expenses (excl acq/integration/restructure costs)
(9,646)(5,483)(2,386)(9,081)(26,596)(1,975)
(28,571)
Operating earnings (exclacq/integration/restructure costs)
6
20,406 5,976 464 (9,065)17,781 (177)
17,604
Acq/integration/restructure costs
-(184)--(184)-
(184)
Operating earnings
6
20,406 5,792 464 (9,065)17,597 (177)
17,420
Depreciation, amortisation & gain / loss on disposal
(1,420)(1,235)(2,588)(1,510)(6,753)-
(6,753)
Earnings before Interest, tax and share of profit of associate
18,9864,557(2,124)(10,575)10,844 (177)
10,667
NZX Half Year 2023 Results

30
Appendix 1: Segment –Markets
Markets is the integrated business that supports the growth of NZ capital markets
H1-2022
$000
H2-2022
$000
H1-2023
$000
Change vs
H1-22
Fav/(adv)
Change vs
H2-22
Fav/(adv)
Capital Markets Origination
Annual Listing Fee (net)5,3515,5785,6094.8%0.6%
Primary listing fees9701,009876(9.7%)(13.2%)
Secondary issuance fees1,7712,2861,706(3.7%)(25.4%)
Secondary Markets
Participant services revenue (net)439431281(36.0%)(34.8%)
Securities trading revenue2,2991,8722,006(12.7%)7.2%
Securities clearing revenue3,8423,3163,237(15.7%)(2.4%)
Dairy derivatives revenue8361,0511,56987.7%49.3%
Contractual revenue 730720637(12.7%)(11.5%)
Consulting and development revenue4,8224,9884,8390.4%(3.0%)
Information Services
Royalties from terminals4,1164,1654,3265.1%3.9%
Subscriptions and licences2,5152,5732,7007.4%4.9%
Dairy data subscriptions315295281(10.8%)(4.7%)
Indices51364687871.2%35.9%
Audit and back dated licences2361,237748216.3%(39.5%)
Connectivity1,2971,4461,44011.0%(0.4%)
Total operating revenue30,05231,61331,1333.6%(1.5%)
Total operating expense excl. restructure costs9,6469,43210,226(6.0%)(8.4%)
Operating earnings excl. restructure costs20,40622,18120,9072.5%(5.7%)
Depreciation & amortisation1,4201,3291,3584.4%(2.2%)
Earnings Before Interest and Tax excl. rest. costs18,98620,85219,5493.0%(6.2%)
Operating margin excl. restructure costs67.9%70.2%67.2%(1.1%)(4.3%)
FTEs at period end78.382.484.68.0%2.7%
Markets Operating revenue was $31.1 million (+3.6% on H1-22 and (1.5%) on H2-22) reflecting:
Capital Markets Origination revenue –increased +1.2% on H1-22 and decreased (7.7)% on H2-22,
reflecting higher annual listing fees and the differing levels of primary listings and secondary issuances;
Secondary Markets revenue –decreased (3.1)% on H1-22 and increased 1.5% on H2-22, impacted by
•differing levels of trading / clearing value;
•lower levels of OTC settlement, clearing margin, depository registry transfer fees and clearing
penalties,
•lower consulting and development activity. Offset by:
•increased dairy derivatives revenue due to increases in lots traded, higher margin fees and favourable
USD exchange rates; and
Information Services revenue –increased +15.4% on H1-22 and +0.1% on H2-22, driven by audit and back
dated licencingrevenue, higher levels of average terminal numbers, increased licenses numbers, and
higher indices revenue (which included $125k of revenue from backbilling).
Markets Operating expenses (excl restructure costs) were $10.2 million for H1-23 (6.0% up on H1-22 and
8.4% up on H2-22) mainly reflecting: :
Personnel costs –increased 6.4% on H1-22 and 16.9% on H2-22, driven by higher average number of FTEs
with lower vacancies during the period, wage inflation and lower levels of capitalised labour compared to
H2-22;
Information Technology costs –increased on both H1-22 (3.2%) and H2-22 (2.4%) largely reflecting
inflationary increases and movement in FX rates; and
Professional Fees –increased on both H1-22 (19.2%) and H2-22 (22.1%) driven by terminal royalty audit
fees which vary in proportion to audit revenue (with revenues recognisedon a gross basis) and consultant
costs.
Notes:
•Markets is the integrated business that supports the growth of NZ capital markets with the revenue generating BUs being:
–Capital Markets Origination –provider of issuer services for current and prospective customers;
–Secondary Markets –provider of trading and post-trade services for securities and derivatives markets operated by NZX, providerof a
central securities depository and Market operator for Fonterra Co-Operative Group, the Electricity Authority and the Ministry for the
Environment; and
–Information Services (previously Data & Insights) –provider of information services for the securities and derivatives markets,and
analytics for the dairy sector.
Additionally, the Markets business cost base includes the IT costs specific to providing NZ capital markets services.
•Corporate Services provides accommodation, legal, finance, IT, HR, communication and project management support to Markets. Therelated
costs are currently not recharged to Markets and consequently not included in the above segmental analysis.
•Operating earnings (EBITDA) is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be
comparable with similarly titled performance measures and disclosures by other entities
NZX Half Year 2023 Results

31
Appendix 1: Segment –Smartshares
This business is a funds management business which comprises the SuperLifesuperannuation and KiwiSaverproducts and Smartshares Exchange Traded Funds
Operating revenue
FUM-based revenue –average FUM has increased (H1-23: $9.88b, H2-22: $8.03b, H1-22: $7.53b)
which is a combination of the ASB SMT and QuayStreetAsset Management acquired FUM, market
returns and net cash flows.
Member-based revenue has increased, reflecting a mix of increased investor numbers (from the ASB
SMT and QuayStreetAsset Management acquisitions)
Other revenue has increased reflecting higher levels of stock lending and interest income
During the period the recoverability of additional management fees relating to prior Fund financial
years was confirmed and revenue of $1.4 million has been recognised in H1-23.
Operating expenses
Personnel costs are driven by higher average number of FTEs, wage inflation and the capitalisation of
internal development resources:
•headcount (with a high level of vacancies in both years) has increased to resource the initial
operations (BAU recurring) and integration projects (non-recurring) for the ASB SMT and
QuayStreettransition; resourcing is expected to increase further in 2023/2024 as services
transition; and
•capitalised labour and overhead which reflects capitalisable activity on internal systems, was
higher reflecting ASB SMT integration with internal systems
Information Technology costs include software license fees for the Bloomberg front and middle office
operating system (impacted by the USD exchange rate) which has increased with the acquisition of
QuayStreet
Professional fees includes increased internal audit fees, offset by reduced legal, consultant and tax
advice costs. H2-22 included one off costs associated with investigating acquisition opportunities
Marketing spend relates to advertising, printing and distribution costs (which have reduced over the
period due to ESG initiatives i.e. black and white printing)
Other expenses include non-recoverable GST (which increases as the business grows), external auditor
fees, travel costs (which have increased post COVID) and statutory and compliance costs (relating to
increased FMA levies as FUM levels increase)
Acquisition and integration costs –relate to the acquisition and integration planning of the
management rights for ASB Superannuation Master Trust (acquired February 2022) and QuayStreet
Asset Management (acquired February 2023)
Depreciation & amortisation –increases relate to amortisation of the QuayStreetAsset Management
managementrights ($0.6m)
Corporate Services provides accommodation, legal, finance, IT, HR, communication and project management support to Smartshares.The related costs are
currently not recharged to Smartshares and consequently not included in the above segmental analysis.
Operating earnings (EBITDA) 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.
QuayStreetAsset Management(QuayStreet) Acquisition Impact
The acquisition of QuayStreetAsset Management (QS) completed on 23 February 2023. QS’s
investment management and client relationships teams transferred to Smartshares, with Craigs
Investment Partners (and outsource providers) continuing to provide certain back-office
services. We expect to transition those services into Smartshares mid 2024.
For the period from acquisition to 30 June 2023 QS contributed operating earnings of $1.7m
excluding acquisition and integration costs ($1.5m including acquisition / integration costs) and
earnings before interest and tax of $1.1m ($0.9m including acquisition / integration costs)
H1-2022
$000
H2-2022
$000
H1-2023
$000
Change vs
H1-22
Fav/(adv)
Change vs
H2-22
Fav/(adv)
FUM-based revenue
10,04711,47915,87858.0%38.3%
Member-based revenue
1,1181,1931,47131.6%23.3%
Other revenue
294355628113.6%76.9%
Total operating revenue
11,45913,02717,97756.9%38.0%
Total operating expense (excl. acq/int costs)
5,4836,2747,705(40.5%)(22.8%)
Operating earnings (excl. acq/int costs)
5,9766,75310,27271.9%52.1%
Acquisition costs
124 1,224 -100.0%100.0%
Integration costs
60 132 451(651.7%)(241.7%)
Operating earnings
5,7925,3979,82169.6%82.0%
Depreciation & amortisation
1,2351,2361,952(58.1%)(57.9%)
Earnings Before Interest and Tax
4,5574,1617,86972.7%89.1%
Operating margin excl. acq/integration costs
52.2%51.8%57.1%9.6%10.2%
FTEs at period end
61.777.197.257.5%26.1%
NZX Half Year 2023 Results

32
Appendix 1: Segment –Wealth Technologies
This business administers and manages a platform that enables advisers and brokers to manage client investments
Operating revenue
Administration (FUA based) fees –average FUA has increased (H1-23: $10.44b, H2-22: $10.08b H1-22:
$10.44b) positively impacted by both market returns and positive net cash flows.
Development fees/deferred income release relates to customisation of the wealth management platform or
data migration effort specific to client requirements
Operating expenses growth is attributable to:
•Increases in personnel costs (net of capitalisation), driven by:
•wage inflation;
•lower levels of capitalisation(which reflect continued product development and client migration
activity), reflecting the non-capitalisableeffort required to migrate clients between the legacy
and new platform; and offset by
•Lower average FTE’s driven by increased vacancies at 30 June 23 and internal reorganisationof
roles to best support the requirements of new clients who have been or are in the process of
being migrated to the platform. Headcount is dependent at any point in time on a) the levels of
platform investment (including migration activity) required for current and future clients, and b)
the operational services provided to current clients
•Increases in other expenses which include office costs (e.g. electricity, rates, stationery etc), travel,
compliance costs and non recoverable GST (which increases as the business grows). These costs have
increased over the period as staff have returned to the office and travel has increased;
•Offset by decreases in information technology cost due to the rationalisationof data hosting and data
feeds spend, as well as a small reduction driven by the decommissioning of the legacy platform
Depreciation & amortisation –relate to:
•intangible assets (relating to platform development and client migration activity) which are amortised
over 5-years commencing from the migration completed date (which is aligned to administration fee
revenue commencing). Intangible asset amortisation will continue to increase with the continued product
development and client migration activity; and
•right of use assets (i.e. mainly property leases) which are depreciated over the period of the lease
Corporate Services provides legal, finance, IT, HR, communication and project management support to Wealth Technologies. Therelated
costs are currently not recharged to Wealth Technologies and consequently not included in the above segmental analysis.
Operating earnings (EBITDA) is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be
comparable with similarly titled performance measures and disclosures by other entities.
Operating Earnings and margin
Operating earnings andEBITDA margin have been adversely impacted by lower levels of
capitalisation –reflecting the non-capitalisable effort required to migrate clients between the
legacy and new platform. This migration is now complete, and the legacy system has been
decommissioned
H1-2022
$000
H2-2022
$000
H1-2023
$000
Change vs
H1-22
Fav/(adv)
Change vs
H2-22
Fav/(adv)
Administration (FUA based) fees
2,6852,736 2,8225.1%3.1%
Development fees / deferred income release
165405 20423.6%(49.6%)
Total operating revenue
2,8503,1413,0266.2%(3.7%)
Total operating expenses
2,3862,2762,931(22.8%)(28.8%)
Operating earnings excl. restructure costs
46486595(79.5%)(89.0%)
Depreciation & amortisation
2,5882,871 3,213(24.1%)(11.9%)
Earnings before Interest and Tax excl.
restructure costs
(2,124)(2,006)(3,118)(46.8%)(55.4%)
Operating margin excl restructure costs
16.3%27.5%3.2%(80.5%)(88.5%)
FTEs at period end
69.875.265.8(5.7%)(12.5%)
NZX Half Year 2023 Results

33
Appendix 1: Segment –Corporate Services
This function provides accommodation, legal, finance, IT, HR, communications and project management support to the business
Operating revenue
Revenue relates to commission fees on NZX related accredited courses and sublease of partial space in
Auckland office
Operating expenses growth is attributable to:
•Increases in personnel costs (net of capitalisation), driven by:
•wage inflation;
•Increased headcount (with vacancies high over all periods) adding additional roles to support the
growth across the business and current levels of project activity e.g. finance resource, policy
resource and IT Solution Architect; and offset by
•Slightly higher levels of capitalisationand overhead which reflects the project management
team’s activity on capitalisableprojects across NZX
•Increases in other expenses which includes premises OPEX costs (increased with additional level of space
leased in theCapital Markets Centre in Auckland and staff returning to the office), insurance premiums
(which continues to significantly increase), directors’ fees (increased from 1 July 2022), travel (increased
post COVID), external audit costs, outsourced payroll system, carbon credits and statutory and
compliance costs;
•Increased professional fees which include internal audit fees, annual conflicts review, corporate
governance review, corporate legal and tax advice; and
•Increased information technology cost in line with inflation
Depreciation & amortisationincreases relate to additional depreciation on the fit out and associated right of
use asset of the additional space in the Auckland Capital Markets Centre.
Corporate Services provides accommodation, legal, finance, IT, HR, communication and project management support to all business
units and subsidiaries (including the Smartshares and Wealth Technologies businesses). Related costs are currently not rechargedto the
commercial business units and subsidiaries, with the exception of NZ RegCo
Operating earnings (EBITDA) 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.
H1-2022
$000
H2-2022
$000
H1-2023
$000
Change vs
H1-22
Fav/(adv)
Change vs
H2-22
Fav/(adv)
Sublease revenue
-21 35n/a 66.7%
Other revenue
16 19 16-(15.8%)
Total operating revenue
16 40 51218.8%27.5%
Total operating expense
9,08110,61710,521(15.9%)0.9%
Operating earnings
(9,065)(10,577)(10,470)(15.5%)1.0%
Depreciation & amortisation
1,5131,6681,812(19.8%)(8.6%)
Loss/(gain) on disposal of assets
(3)--100.0%n/a
Earnings Before Interest and Tax
(10,575)(12,245)(12,282)(16.2%)(0.3%)
FTEs at period end
63.967.168.26.7%1.6%
NZX Half Year 2023 Results

34
Appendix 1: Segment –Regulation (NZ RegCo)
Tasked with performing all of NZX’s frontline regulatory functions, resulting in the structural separation of the Group's commercial and regulatory roles
Regulation (NZ RegCo)
Regulation is structurally separate, in accordance with global best practice, from NZX's commercial and
operational activities. Governed by a separate board with an independent Chair and the majority of directors
are independent of the NZX Group
NZ RegCo is targeted to operate on a cost-neutral basis after internal allocations. The internal allocations are
set at the commencement of the year based on the services expected to be provided by/to NZ RegCo, andare
intended to subsidiseNZ RegCo to a achieve a break-even operating result over the medium term
Operating revenue
Regulatory fees relate to issuer regulation, market conduct, participant compliance and surveillance activities.
Fees related to defined services (based on a fee schedule) and revenue for costs awards recovered from
enforcement matters referred to the NZ Markets Disciplinary Tribunal
Additionally, there is an internal allocation of Annual Listing Fees, Annual Participants Feesand internal staff
fees
Regulatory fees generating activity levels have been lower than 2022 due to decreased market activity levels
Operating expenses
Personnel costs are driven by average number of FTEs and wage inflation:
•headcount –reflects a vacancy at period end; and
•wage inflation –for specialist qualified personnel is the main driver of increased personnel costs
Information technology costs include SMARTS surveillance software costs, which are impacted by the
movement in the AUD exchange rate
Professional fees primarily relate to NZ RegCo independent directors' fees, which increased from 1 April 2022
Other expenses relate to travel costs to perform regulatory services at issuers premises and a debtor write off
in 2022
Internal costs allocations relate to Corporate Services costs i.e. accommodation, legal, finance, IT, HR,
communications and project management support
Operating earnings (EBITDA) 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.
H1-2022
$000
H2-2022
$000
H1-2023
$000
Change vs
H1-22
Fav/(adv)
Change vs
H2-22
Fav/(adv)
Issuer compliance services
324 361 216(33.3%)(40.5%)
Participant compliance services
96 66 75(21.9%)13.6%
Market Conduct
31 4 (17)(154.8%)(525.0%)
Surveillance
400 351 359(10.3%)2.5%
Listing fees & participants services
947 948 1,13920.3%20.3%
Total operating revenue
1,798 1,730 1,772(1.5%)2.4%
Total operating expense
1,9751,9512,011(1.8%)(3.1%)
Operating earnings
(177)(221)(239)35.2%8.3%
Depreciation & amortisation
-----
Earnings Before Interest and Tax
(177)(221)(239)35.2%7.8%
Operating margin
(9.8%)(12.8%)(13.5%)(37.2%)(5.7%)
FTEs at period end
18.317.316.1(12.0%)(6.9%)
NZX Half Year 2023 Results

35
Appendix 2: Operating Revenue Definitions
Capital Markets Origination
Annual listing fees paid by NZX’s equity, fund and debt issuers is
driven by the number of listed issuers, and equity, debt and fund
market capitalisations as at 31 May eachyear.
Primary listing fees are paid by all issuers at the time of
listing. The primary driver of this revenue is the number of
new listings and the value of capitallisted.
Secondary issuance fees are paid by existing issuers when a
company raises additional capital through placements, rights
issues, the exercise of options, dividend reinvestment plans, or
subsequent debt issues. The primary driver for this revenue is
the number of secondary issuances and the value of secondary
capitalraised.
Data &Insights
Royalties from terminals revenue relate to the provision of
markets data for display on terminals (retail and professional).
Subscription and licences revenue relate to the provision of
markets data to market participants andstakeholders.
Dairy data subscriptions revenue relate to the sale of dairy
data and analyticalproducts.
Indices revenue relates to the revenue generated on index
licensing in partnership with S&P.
Connectivity revenue relates to the provision of connectivity
and access to the NZX operated markets for market
participants and data vendors, which is recognised over the
period the service is provided.
SecondaryMarkets
Participant services revenue is charged to market participants
(broking, clearing and advisory firms) that are accredited for NZX’s
equity, debt and derivatives market.
Securities trading revenue comes from the execution of trades on
the equity and debt markets operated by NZX. Trading fees are a
variable fee based on the value of the trade.
Securities clearing revenue relates to clearing and settlement
activities, and related depository services undertaken by
NZX’s subsidiary New Zealand Clearing and Depository
Corporation. The largest component is clearing fees, which
are based on the value of settledtransactions.
Dairy derivatives revenue relates to trading, clearing, settlement
and margin fees for trading NZX dairy futures and options via the
SGX-NZX Dairy partnership. Fees are charged in USD (reflecting the
global nature of the market) per lottraded.
Contractual revenue arises from the operation of:
•New Zealand’s electricity market, under long term contract
from the Electricity Authority;
•the Fonterra Shareholders’ Market, under a long term contract
from Fonterra; and
•New Zealand’s Emissions Trading Scheme managed auction
services, under a long term contract from the Ministry for the
Environment.
Consulting and Development revenuearises on a time and
materialsbasis for the electricity market and for the
implementation of New Zealand’s Emissions Trading Scheme
managed auction services.
FundsManagement(Smartshares)
Funds Under Management based revenue relates to variable Funds
Under Management (FUM) fees, which are received net of fund
expenses for all funds. Fund expenses include a combination of
fixed costs (principally outsourced fund accounting and
administration costs, registry fees and audit fees), and variable costs
proportionate to FUM (principally custodian fees, trustee fees,
index fees, settlement costs and third party managerfees).
Member based revenue includes fixed membership
administration fees and other memberservices.
Wealth Technologies
Administration (funds under administration based) fees relates
to administration fees for the wealth management platforms and
are proportionate to Funds Under Administration(FUA).
Development fees/deferred income release relates to
customisation of the wealth management platform or data
migration effort specific to client requirements.
Regulation (NZ RegCo)
Issuer Regulation services revenue arises from time spent by NZ
RegCo reviewing listing and secondary capital raising documents,
requests for listing rule waivers and rulings, and other activity
subject to per hour recoveries.
Participant Compliance services revenue arises fromtime spent by
NZ RegCo reviewingparticipant applications and oversight activity
subject to direct recoveries.
Market Conduct revenue arises from cost awards for enforcement
matters referred to the NZ Markets Disciplinary Tribunal.
Surveillance revenue arises frommarket surveillance activities that
are recoverable from market participants.
NZX Half Year 2023 Results

36
Contact
MarkPeterson
Chief Executive Officer
mark.peterson@nzx.com
+64 21 390636
GrahamLaw
Chief Financial Officer
graham.law@nzx.com
+64 29 4942223
NZX Half Year 2023 Results

37
Thank you

---

NZX delivering to its growth strategy in challenging times

•
Group operating earnings
1
of $20.0 million, up 15.0% year on year
•
Net profit after tax (NPAT) of $7.0 million, down 5.6%
•
Interim dividend of 3.0 cents per share, fully imputed
•
FY2023 operating earnings is tracking towards the upper end of the 2023 full-year guidance
range of $36.0 million to $40.5 million.

25 AUGUST 2023 – NZX Limited today announced operating earnings (EBITDA)

of $20.0 million for the
six months ended 30 June 2023, up 15.0% on H1 2022, demonstrating positive momentum in delivering
to its growth strategy. Excluding acquisition, integration and integration costs, Group operating earnings
(EBITDA) for the same period were $20.6 million – up 16.8%.

“The resilience and diversity of the NZX Group business and earnings base, and the breadth of offerings
available for companies to access capital, are behind our strong financial result in the first half of 2023.
This is despite the tight financial conditions and ongoing challenging environment for global markets,”
NZX Chief Executive Mark Peterson says.

Operating revenue increased 16.9% to $54.0 million and operating expenses, excluding acquisition and
integration costs, increased 16.9% to $33.4 million.

NZX produced an unaudited net profit after tax (NPAT) of $7.0 million for the 2023 half year (H1 2022
$7.4 million), a year-on-year decrease of 5.6%, with the decline largely resulting from additional
amortisation (including relating to NZX Wealth Technologies client migrations and Smartshares’
acquisitions) along with higher funding costs on the Company’s increased debt level.

NZX’s growth strategy is to expand its product range in capital markets and drive scale and operating
leverage across its Smartshares and NZX Wealth Technologies businesses. While the first half of 2023
has seen headwinds due to the market cycle, NZX continues to make steady progress towards these
objectives.

“As the NZX Group key performance results indicate, the macroeconomic environment continues to
challenge equity capital raising and trading activity. However, at a time in the economic cycle where
interest rates continue to rise, this has created a tailwind for debt market activity,” Mr Peterson says.
The move by corporates to issue green and sustainable financing products continues to accelerate, with
$2.2 billion listed and raised (66% of all debt issued) by Mercury, Genesis, Contact, Kiwi Property Group,
Meridian and LGFA in H1 2023. The percentage of green bonds listed on the NZDX has increased to
30.1% of all outstanding debt issued.
The remaining parts of our business continued to perform strongly. This was particularly notable in:
• Dairy derivatives partnership with SGX Group (lots traded up 30.7% compared to H1 2022);
• our Information Services (data) business (revenue of $10.4 million – up 15.4% compared to H1
2022);

1
Operating earnings (EBITDA) are before net finance expenses, income tax, depreciation, amortisation, gain on
lease modification, gain on disposal of assets and share of profit of associate. Operating earnings is not a defined
performance measure in NZ IFRS. NZX Group's definition of operating earnings may not be comparable with
similarly titled performance measures and disclosures by other entities. Refer to note 2 of NZX Group’s financial
statements for a reconciliation of EBITDA to NZ IFRS profit for the period.

• Smartshares, which continues to go from strength to strength (at 30 June 2023, funds under
management was $10.67 billion, up 29.1% from 31 December 2022 due to combination of
positive cashflows, positive market return and QuayStreet Asset Management acquired FUM). In
June 2023, Smartshares launched five new ETFs giving investors more options; and
• NZX Wealth Technologies, which has won five clients in H1 2023 that will be transitioned onto
the platform over the remainder of 2023 and 2024. The pipeline remains strong for H2 2023 and
2024 and we remain confident of being cashflow (and NPAT) positive by late 2024. In H2 2022
NZX did consider whether there was a strategic partner that could enhance the business. With
NZX Wealth Technologies’ long-term growth prospects continuing to strengthen, this is no longer
a priority and discussions with a limited number of parties have concluded.
“Our operating platform and corporate functions have continued to advance their capability, capacity and
resilience, while being conscious of costs. It was also pleasing to note that NZX met all its market
obligations in 2022 in the Financial Markets Authority’s annual market obligations review published in
June 2023,” Mr Peterson says.
In market development, work is progressing to deliver the midpoint orderbook (NZX Dark) for launch in
H1 2024, and we intend to relaunch the S&P/NZX20 Index Futures later in 2024.
The NZX Board has declared a fully imputed interim dividend of 3.0 cents per share (H1 2022 3.0 cents)
to be paid on 5 October 2023 to shareholders registered as at the record date of 21 September 2023.

NZX’s full-year 2023 operating earnings are expected to be towards the upper end of the $36.0 million to
$40.5 million guidance range. The guidance is subject to market risks and outcomes.

ENDS

For further information, please contact:

Media and Investors – Simon Beattie – 021 702 694


About NZX

For more than 150 years we have been committed to connecting people, businesses and capital. Our
vision is to be a trusted New Zealand business delivering sustainable wealth, value and opportunities for
all.
NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support the growth
of our markets, we provide trading, clearing, settlement, depository and data services for our customers.
We also own Smartshares, New Zealand's only issuer of listed Exchange Traded Funds (ETFs), and
KiwiSaver provider SuperLife. NZX Wealth Technologies is a 100%-owned subsidiary delivering rich
online platform functionality to enable New Zealand investment advisors and providers to efficiently
manage, trade and administer their client's assets. Learn more about us at: www.nzx.com

---

NZX Limited – H1 2023 Results & Interim Report
Dear Shareholder,
On behalf of the NZX Board, I am pleased to share with you our 2023 Interim Report and
Financial Results, which were released today and are available to read online here.
We have announced operating earnings (EBITDA) of $20.0 million for the six months ended 30
June 2023, up 15.0% on H1 2022, demonstrating positive momentum in delivering to its growth
strategy. Excluding acquisition, integration and integration costs, Group operating earnings
(EBITDA) were $20.6 million – up 16.8%.
The resilience and diversity of the NZX Group business and earnings base, and the breadth of
offerings available for companies to access capital, are behind our strong financial result in the
first half of 2023. This is despite the tight financial conditions and ongoing challenging
environment for global markets.
Operating revenue increased 16.9% to $54.0 million and operating expenses, excluding
acquisition and integration costs, increased 16.9% to $33.4 million.
NZX produced an unaudited net profit after tax (NPAT) of $7.0 million for the 2023 half year (H1
2022 $7.4 million), a year-on-year decrease of 5.6%, with the decline largely resulting from
additional amortisation (including relating to NZX Wealth Technologies client migrations and
Smartshares’ acquisitions) along with higher funding costs on the Company’s increased debt
level.
NZX’s growth strategy is to expand its product range in capital markets and drive scale and
operating leverage across its Smartshares and NZX Wealth Technologies businesses. While the
first half of 2023 has seen headwinds due to the market cycle, NZX continues to make steady
progress towards these objectives.
As the NZX Group key performance results indicate, the macroeconomic environment continues
to challenge equity capital raising and trading activity. However, at a time in the economic cycle
where interest rates continue to rise, this has created a tailwind for debt market activity.
The move by corporates to issue green and sustainable financing products continues to
accelerate, with $2.2 billion listed and raised (66% of all debt issued) by Mercury, Genesis,
Contact, Kiwi Property Group, Meridian and LGFA in H1 2023. The percentage of green bonds
listed on the NZDX has increased to 30.1% of all outstanding debt issued.
The remaining parts of our business continued to perform strongly. This was particularly notable
in:
• Dairy derivatives partnership with SGX Group (lots traded up 30.7% compared to H1
2022);

• our Information Services (data) business (revenue of $10.4 million – up 15.4% compared
to H1 2022);
• Smartshares, which continues to go from strength to strength (at 30 June 2023, funds
under management was $10.67 billion, up 29.1% from 31 December 2022 due to
combination of positive cashflows, positive market return and QuayStreet Asset
Management acquired FUM). In June 2023, Smartshares launched five new ETFs giving
investors more options; and
• NZX Wealth Technologies, which has won five clients in H1 2023 that will be transitioned
onto the platform over the remainder of 2023 and 2024. The pipeline remains strong for
H2 2023 and 2024 and we remain confident of being cashflow (and NPAT) positive by
late 2024. In H2 2022 NZX did consider whether there was a strategic partner that could
enhance the business. With NZX Wealth Technologies’ long-term growth prospects
continuing to strengthen, this is no longer a priority and discussions with a limited number
of parties have concluded.
Our operating platform and corporate functions have continued to advance their capability,
capacity and resilience, while being conscious of costs. It was also pleasing to note that NZX
met all its market obligations in 2022 in the Financial Markets Authority’s annual market
obligations review published in June 2023.
In market development, work is progressing to deliver the midpoint orderbook (NZX Dark) for
launch in H1 2024 and we intend to relaunch the S&P/NZX20 Index Futures later in 2024.
The NZX Board has declared a fully imputed interim dividend of 3.0 cents per share (H1 2022 3.0
cents) to be paid on 5 October 2023 to shareholders registered as at the record date of 21
September 2023.

The Dividend Reinvestment Plan is available and the document can be viewed here. Shares
issued under the dividend reinvestment plan will be issued at a 1% discount. As a current
Dividend Reinvestment Plan participant your dividend will be reinvested, whether partially or in
full, in accordance with your election.

NZX’s full-year 2023 operating earnings are expected to be towards the upper end of the $36.0
million to $40.5 million guidance range. The guidance is subject to market risks and outcomes.

John McMahon
CHAIR

---

Mark Peterson’s term as NZX CEO extended

25 August 2023 – The NZX Board has extended Mark Peterson’s employment term as NZX Chief
Executive beyond April 2024.

Mr Peterson was appointed NZX Chief Executive on 10 April 2017 with an initial employment term of five
years and an option to extend for a further two years. That option was exercised in December 2020
extending the employment term to April 2024. The NZX Board has now agreed to an open-term
agreement.

NZX Chair John McMahon says Mr Peterson’s new employment agreement was about ensuring stability
of leadership and maintaining momentum across the group.

“The NZX Group has a clear work programme in front of it that requires focused and proven leadership.
This includes successful delivery of initiatives and products under NZX’s growth strategy – NZX 20 and
NZX Dark – and more size, scale and efficiencies in capital market operations, and in the Smartshares
and NZX Wealth Technologies businesses.

“The NZX Board has full confidence in Mark’s ability to continue to strengthen the NZX Group business
and our market and operations infrastructure.”

In additional news, the NZX Board has appointed Dame Paula Rebstock as Deputy Chair. Mr McMahon
says the appointment recognises Dame Paula’s considerable governance experience and the key role
she is playing in helping to improve New Zealand’s economic productivity.

ENDS

For further information, please contact:

Media and Investors – Simon Beattie – 021 702 694


About NZX

For more than 150 years we have been committed to connecting people, businesses and capital. Our
vision is to be a trusted New Zealand business delivering sustainable wealth, value and opportunities for
all.
NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support the growth
of our markets, we provide trading, clearing, settlement, depository and data services for our customers.
We also own Smartshares, New Zealand's only issuer of listed Exchange Traded Funds (ETFs), and
KiwiSaver provider SuperLife. NZX Wealth Technologies is a 100%-owned subsidiary delivering rich
online platform functionality to enable New Zealand investment advisors and providers to efficiently
manage, trade and administer their client's assets. Learn more about us at: www.nzx.com