Slide 1

Slide 2

XBRL: Project First Step

11 May 2004

Slide 3

Today’s presentation

• Project introduction

• NZX motivation

• Next steps

• Q/A

Slide 4

NZSE: June 2002

• Mutual• Low Cost Operator

with narrow focus • Aging infrastructure

– Technology– Non technology

•Clear mandate for change

•New leadership•Corporate roadmap

But…

Slide 5

Starting point for NZX

Project First Step

• MAP (Market Announcement Platform)

• Limited resource

• New mandate

Slide 6

Participants in Project First Step

Appendix One

ICANZ(XBRL NZ)

Listed Issuers

Accounting Firms

NZX

Slide 7

Improving Appendix One

• Listing rules

• “Unlinked” terminology

• Word/Excel submissions

•Improve data collection

•Standardize terminology (i.e., NZ GAAP, IFRS)

•Separate data from format application

The goal:

Slide 8

Existing Appendix One process

NZX acceptance and distribution

Real time broadcast of formatted text

Issuer preparation

Email/Fax of original document

Market consumption

Re-key information for distribution

Pass through

Advisor Issuer

Slide 9

Project First Step working model

NZX

ICANZ

Distribution to the market

IssuersAccounting Firms

Cooperation in defining improved Appendix One

Slide 10

2. NZX MOTIVATION

1. Data product revenue

2. Attracting issuers

3. Fulfillment of regulator role

4. Internal efficiencies (i.e., cost)

Competitive Exchange Environment

Exchange business drivers

Slide 11

NZX has two primary motivations

Shareholder value

NZ capital markets

Slide 12

1. Data Revenue

• New product– Real time access – Accurate database of

historical financial data

• Target group– Existing subscribers– Analysts– Professional traders

Liquidity impact

Slide 13

2. Attracting Issuers

• Increased competition– Retain NZ listings– Attract dual listings

• Contain compliance costs

• Minimize “Big Stage” pressure

Slide 14

3. Fulfillment of Regulator Role

• Continuous disclosure

• Error reduction and validation

• Improved service

Slide 15

4. Internal Efficiency

• Error reduction

• Reduction of staff

• Application across NZX business

Slide 16

3. NEXT STEPS

Two workstreams

Appendix One Implementation

Identify new opportunities

Project First Step

Slide 17

Appendix One implementation

• Pull, not push

• Gradual issuer adaptation

• Back entry of data

100% issuer participation

Slide 18

Identifying new opportunities

Issuers

• External reporting • Internal reporting• Performance reporting

• Issuer announcements• Participant declarations• Market information

NZX

Slide 19

Identifying new opportunities

Issuers NZX

Appendix One

information

Slide 20

Identifying new opportunities

Issuers NZX

Statistics NZ

Slide 21

Identifying new opportunities

Issuers NZX

Statistics NZ

What other opportunities exist?

Slide 22

Key success factors

• Intelligent cooperation

• Well defined incentives

• Clear goals

Slide 23