NZX INTERIM 2023 RESULTS INVESTOR PRESENTATION
25 August 2023
Today's Agenda
Executive Summary | 3 | |
Business Unit Highlights | 7 | |
Acquisitions Update | 16 | |
Financial Performance | 18 | |
Financial Position & Cash Flows | 21 | |
Final Dividends & 2023 Earnings Guidance | 25 | |
Appendices | ||
1 | Segmental Analysis | 29 |
2 | Operating Revenue Definitions | 35 |
Important notice
This investor presentation should be read in conjunction with NZX's other periodic and continuous disclosure announcements, and the financial statements in the 2023 Interim Report, which provides additional information on many areas covered in this presentation. These are available at nzx.com.
This presentation contains certain 'forward-looking statements' such as indications of, and guidance on, future earnings and financial position and performance.
This includes statements regarding NZX's current assumptions, which are subject to market outcomes, particularly with respect to market capitalisation, total capital listed and raised, secondary market value and derivatives volumes traded, funds under management and administration growth, acquisition integration costs and technology costs.
Additionally they assume no material adverse events, significant one-off expenses, major accounting adjustments, other unforeseeable circumstances, or future acquisitions or divestments.
Any indications of, or guidance or outlook on, future earnings or financial position or performance and future distributions are also forward-looking statements.
Forward-looking statements are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of NZX, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There can be no assurance that actual outcomes will not materially differ from these forward-looking statements.
A number of important factors could cause actual results or performance to differ materially from the forward-looking statements. The forward-looking statements are based on information available to NZX as at the date of this presentation.
Except as required by law or regulation (including the Listing Rules), NZX undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.
NZX Half Year 2023 Results
2
Executive Summary
HY23 results highlights
Demonstrating progress and resilience - NZX has maintained the positive momentum in delivering to our growth strategy, and the
operating earnings demonstrate the resilience of NZX's earnings base
Highlights1
Operating Earnings2
excl. acquisition, integration
& restructure costs
$20.6 million
16.8% increase
Operating Earnings2
incl. acquisition, integration &
restructure costs
$20.0 million
15.0% increase
Revenue
$54.0 million
16.9% increase
Net Profit After
Tax
$7.0 million
5.6% decrease
Expenses
excl. acquisition, integration
& restructure costs
$33.4 million
16.9% increase
Interim Dividend
(fully imputed)
3.0 cps
Performance relative to 2023 Targets3
FY23 Targets | H1-23 Progress YTD | 5 Yr Targets Progress4 | |||
Operating | $36.0m-$40.5m | $20.6m | ✓ | ||
earnings2 | (excluding acquisition, | ||||
integration & restructure costs) | |||||
Capital listed and | $16.0bn | $7.2bn | $18.7bn average p.a. | ✓ | |
raised | |||||
Total value traded | $40.0bn | $18.0bn | $44.3bn average p.a. | ✓ | |
Information services | 6.9% avg. growth | 16.1% growth | ✓ | 8.4% CAGR growth | ✓ |
revenue | (excl. connectivity) | (excl. connectivity) | |||
14% avg. growth | 10.0% growth | ✓ | |||
(excl. acquired FUM) | ✓ | 22.8% CAGR growth | |||
Funds under Mgmt. | (excl. acquired | ||||
(net cash flows +2.7% | [excl. acquired FUM] | ||||
FUM) | |||||
and market return 7.3%) | |||||
Migrate new clients | 8.7% growth | ||||
Funds under Admin. | and OE clients onto | (net cash flows +0.9% | 45.7% CAGR growth | ||
the platform | and market return 7.8%) | ||||
Dairy derivatives | 0.55m - 0.65m lots | 0.26m lots traded | 8.5% CAGR growth | ||
lots traded | |||||
NZX Half Year 2023 Results
Notes:
- Data is for the 6 month period ended 30 June 2023. Percentage changes represent the movement for the interim period June 2022 to June 2023.
- Operating earnings (EBITDA) are before net finance expense, income tax, depreciation, amortisation, gain on disposal of assets, gain on lease modification and share of profit of associate. Operating earnings is not a defined performance measure in NZ IFRS. The Group's definition of operating earnings may not be comparable with similarly titled performance measures and disclosures by other entities. Refer to financial statements note 2 for a reconciliation of EBITDA to NZ IFRS profit for the period.
- The 2023 Targets are detailed in the Investor Presentation in February 2023. Data is "for the year ended 31 December 2023," or "as at 31 December 2023" (as applicable). H1-23 Progress YTD represents the value for the 6 months ended 30 June 2023, except for Funds Under Management and Funds Under Administration which are the movement in balances as at 31 December 2022 to 30 June 2023.
- Progress towards 5-year targets is discussed further in the Business Unit Highlights section.
4
NZX Group overview
A diverse and connected capital markets focused business
NZX Group | ||||||
Corporate, Legal, Policy, Technology | ||||||
Capital Markets | ||||||
[Cash (Shares), Derivatives, Energy, | Funds Management | |||||
Environmental, Fonterra Markets] | (Smartshares, | |||||
Secondary markets | SuperLife) | |||||
Strategic Delivery | A leading investment fund | |||||
Capital Markets | Markets | Information | manager in New Zealand, | |||
Market | Derivatives | |||||
Services | serving more than 177,000 | |||||
Origination | Development | Operations | ||||
(including dairy | ||||||
Existing and new | Market | Market data, | investors* and more than | |||
Clearing House & | with SGX), | |||||
Indices, | $10.7 billion Funds under | |||||
issuance | Participants | Operations | Electricity and | |||
Carbon Markets | Connectivity | Management* |
* As at 30 June 2023
NZX Wealth
Technologies
A market leading, tailored
custodial investment
management platform with more than $10.8 billion in Funds Under Administration*
NZ RegCo
(Issuer and Participant Compliance, Surveillance)
An independently governed agency which performs all frontline regulatory functions in support of NZX's statutory
obligations as a licensed market operator
NZX Full Year 2023 Results
5
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NZX Limited published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 07:39:01 UTC.