XBRL: Project First Step 11 May 2004

Today’s presentation Project introduction NZX motivation Next steps Q/A These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

NZSE: June 2002 Mutual Low Cost Operator with narrow focus Aging infrastructure Technology Non technology But… Clear mandate for change New leadership Corporate roadmap These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

Starting point for NZX MAP (Market Announcement Platform) Limited resource New mandate Project First Step These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

Participants in Project First Step ICANZ (XBRL NZ) Listed Issuers Appendix One Accounting Firms NZX

Improving Appendix One The goal: Listing rules “Unlinked” terminology Word/Excel submissions Improve data collection Standardize terminology (i.e., NZ GAAP, IFRS) Separate data from format application These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

Existing Appendix One process Issuer preparation NZX acceptance and distribution Market consumption Real time broadcast of formatted text Re-key information for distribution Advisor Issuer Pass through Email/Fax of original document

Project First Step working model Accounting Firms Issuers Cooperation in defining improved Appendix One ICANZ Distribution to the market NZX

Exchange business drivers 2. NZX MOTIVATION Exchange business drivers Data product revenue Attracting issuers Fulfillment of regulator role Internal efficiencies (i.e., cost) Competitive Exchange Environment These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

NZX has two primary motivations Shareholder value NZ capital markets

1. Data Revenue New product Real time access Accurate database of historical financial data Target group Existing subscribers Analysts Professional traders Liquidity impact

2. Attracting Issuers Increased competition Retain NZ listings Attract dual listings Contain compliance costs Minimize “Big Stage” pressure

3. Fulfillment of Regulator Role Continuous disclosure Error reduction and validation Improved service

4. Internal Efficiency Error reduction Reduction of staff Application across NZX business

Appendix One Implementation Identify new opportunities 3. NEXT STEPS Two workstreams Project First Step Appendix One Implementation Identify new opportunities These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

Appendix One implementation Pull, not push Gradual issuer adaptation Back entry of data 100% issuer participation

Identifying new opportunities Issuers NZX External reporting Internal reporting Performance reporting Issuer announcements Participant declarations Market information These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

Appendix One information Identifying new opportunities Issuers NZX Appendix One information These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.

Identifying new opportunities Issuers NZX These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience. Statistics NZ

Identifying new opportunities Issuers NZX What other opportunities exist? These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience. Statistics NZ

Key success factors Intelligent cooperation Well defined incentives Clear goals These opportunities did not exist 18 months ago. NZX was a mutal, owned and controlled by brokers. On a personal level, my understanding of AU and NZ was very limited. Having moved from a job in NYC, I arrived for work in NZ never having visited NZ our AU. In fact, when considering a move to Wellington, my best source of information on NZ was a friend from Sydney living in NY. Within my first five days in Wellington I found myself struggling to understand the implications of a rolled last bowl in a one day cricket match. None of this made much sense to me. AU clearly has a large impact on the NZ psyche. We have learned a lot from AU in the last 18 months, certainly we have been the beneficiary of the AU experience.