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SuperLife is a provider of Superannuation and KiwiSaver that NZX acquired on 1 January 2015.

Total consideration for the acquisition was NZ$35M (NZ$20M initial payment + NZ$15M earn out).

In 2017, SuperLife generated NZ$7.8M of revenue, and with over 50,000 members, and ~NZ$2.0B external FUM.

On the surface, SuperLife has been growing at a sound pace... - However, we believe a significant part of the FUM growth in recent years has come from positive market movements (For example: from Sept 2014 to Sept 2017, S&P/NZX50 Index was up 50.6%**); - Market share data suggests that SuperLife has been unable to compete effectively to gain significant market share while under NZX’s ownership, especially in the fast growing KiwiSaver market; - It remains sub-scale in our opinion.

S

S

M

S

( )*

SU

S SU

100%

100%

90%

90%

80%

80%

70%

70%

Market Share (%)

Market Share (%)

SU

60% 50% 40% 30%

M

S

( )*

60% 50% 40% 30% 20%

20% 10%

U

1.4%

1.4%

1.6%

1.6%

Sep 14

Sep 15

Sep 16

Sep 17

10%

3.5%

3.7%

3.9%

4.5%

Sep 14

Sep 15

Sep 16

Sep 17

0%

0%

* Source: NZX 2017 Investor Day Presentation ** Source: Thomson Reuters Eikon

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NZX LIMITED (NZX:NZ)

BUSINESS SEGMENT #2 – FUNDS SERVICES – FUNDS MANAGEMENT – SUPERLIFE

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Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018