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NZX LIMITED (NZX:NZ)

ELEVATION CAPITAL – CONCLUSION BECOME THE #1 REGIONAL EXCHANGE OPERATOR IN THE WORLD ■

NZX is in an enviable position with a core markets business that has three business reporting units all with operating margins of 70% and above. If Management focuses on its core markets business, and works to achieve the financial target/metrics that we have set out in this presentation, we believe NZX should be able to deliver consistent double digit returns for its shareholders (over the market cycle).

TSR 0%-1%

■■

DOUBLE DIGIT TOTAL SHAREHOLDER RETURN

ORGANIC EXPENSE GROWTH

1%-2% 50% EBITDA MARGIN (BY 2020) ■■

$0.4M REVENUE/EMPLOYEE (BY 2020) ■■

■■

E leverage

ORGANIC REVENUE GROWTH ■■

Focus on high quality revenue and earnings

Improve employee

Divest non-core businesses

BECOME A “BEST-IN-CLASS” CAPITAL ALLOCATOR ■

We also believe that NZX does not need to seek outsize growth to create value for its shareholders. NZX can be a great long-term investment for its shareholders if and only if Management/Board evolved and become great capital allocators. If the Management and the Board do not acknowledge this, we fear shareholders will face another five years of underperformance. 241

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018