New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>NZX will report its FY25 result on Thursday 26 February.</li><li>We expect a result in the upper half of its guidance range (NZ$49m—NZ$54m), slightly ahead of NZX’s expectations from its 1H25 result (midpoint of its range), due to strong market returns in Funds Management.</li><li>Our key focus areas at the result will be: (1) Funds Management cost growth; we expect solid margin improvement in FY25 but expect cost growth to have increased through the year; (2) Markets EBITDA; we expect it down -8% year-on-year in 2H25, versus down -5% in 1H25; (3) any additional Wealth Tech client wins beyond its already announced Craigs deal; and (4) FY26 guidance; we estimate operating EBITDA of NZ$57.5m, broadly in-line with consensus, and dividend growth for the first time since FY17.</li></ul>

NZX will report its FY25 result on Thursday 26 February.We expect a result in the upper half of its guidance range (NZ$49m—NZ$54m), slightly ahead of NZX’s expectations from its 1H25 result (midpoint of its range), due to strong market returns in Funds Management.Our key focus areas at the result will be: (1) Funds Management cost growth; we expect solid margin improvement in FY25 but expect cost growth to have increased through the year; (2) Markets EBITDA; we expect it down -8% year-on-year in 2H25, versus down -5% in 1H25; (3) any additional Wealth Tech client wins beyond its already announced Craigs deal; and (4) FY26 guidance; we estimate operating EBITDA of NZ$57.5m, broadly in-line with consensus, and dividend growth for the first time since FY17.

NZX

NZX FY25 Preview—FUM Up, Volumes Down