EURONEXT GATEWAY TO THE €URO ZONE
France
Holland
Belgium
Portugal
November 2005
Euronext today Europe’s largest central order book securities market • € 6.5 billion average daily turnover • € 9.4 billion fresh capital raised in 2004 and €15.6 billion YTD • Over 25% of listed companies are international The world’s second largest derivatives market • Business worth €1,000 billion traded every day • Extensive range of financial and commodity derivatives products A leading supplier of exchange trading technology • Used worldwide by most leading cash & derivatives Exchanges The world’s first cross-border exchange • Operations in 5 European countries and the USA
Source: Euronext 2
Euronext’s competitive position in Europe CENTRAL ORDER BOOK
MARKET CAP.
Trading value
European cash equity market capitalisation
(in billion €)
OMX Milan 6% SWX 8%
EURONEXT 25%
9%
Spanish Exchanges 10% DB 12%
LSE 29%
• Largest equity market in continental Europe • Largest central order book in Europe Sources: FESE, Euronext, as of Dec 2004
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Euronext – International Listings
Breakdown of listed companies International Co’s 25%
Selected international companies: Arcelor, Daiwa, Daimler Chrysler, Deutsche Bank, Exxon Mobil, Fiat, Ford, General Motors, General Electric, Hitachi, Honda, HSBC, McDonalds, Maroc Telecom,
Domestic Co’s 75 %
Mitsubishi Electric, NEC, SES Global, Sharp
7 Israeli companies listed 25% of Euronext’s 1300 companies are international 4
More capital raised than any other European exchange (in 2004) Milestones: •
Selected Deals
Euronext helped businesses raise €9.4 billion fresh capital in 2004
•
52 new listings
•
Europe’s largest IPO: Belgacom
€ 3,600 mn € 1,300 mn
€ 1,200 mn •
Cross-border successes: € 1,200 mn
- SES Global (Luxembourg) - Maroc Telecom (Morocco)
€ 507 mn
- Cimex Pharma (Switzerland) - Sacyr Vallehermoso (Spain) - Hammerson (UK) 5
Capital Media Group
€ 217 mn
Continued strong performance in 2005 Milestones: •
€15.6 billion fresh capital raised in 2005 YTD
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Selected Deals (capital raised)
•
57 new listings
•
The world’s largest IPO 2005: EDF
•
An additional Mkt cap of € 99 bn
•
Large listings in various sectors: -
Utility: EDF (€ 58.6 bn)
-
Energy: GDF (€ 22.6 bn)
-
Investment funds: RHJ Int’l (€1.53 bn)
-
Hi-tech: Tom Tom (€ 1.86 bn)
EDF
€ 7,000 mn
GDF
€ 3,482 mn
Telenet
€ 1,060 mn
Sanef
€ 837 mn
RHJ International
€ 657 mn
Tom Tom
€ 467 mn
Unique access to European asset managers • Geographical split of investment fund assets typifies wider European investment profile • Huge pool of AUM - € 4.2 Trillion • Good growth rates >10 % annually • Euro zone countries dominate – 85% of total AUM Total Net Assets of UCITS
Others (outside Euro zone) 7.3%
(in EUR billions)
4 500
Euronext 24.5%
UK 9.1%
4 000 3 500
4,186
3 000
3,763 2 500
3,327
2 000 1 500
Euro zone
1 000 500
Breakdown per area
0 2002
2003
2004
Source: European Fund and Asset Management Association 7
(excl. euronext) 59.1%
Unique access to European asset managers • Fragmented market – cross-border access is key • Euronext – gives London access and broad Eurozone entry The European Investment Fund Market
25.0% France
Luxembourg
20.0% Germany 15.0% UK 10.0%
Italy Spain
5.0%
0.0%
Austria
Netherlands Portugal Belgium
Switzerland Ireland Sweden
Source: European Fund and Asset Management Association 8
Other
EURONEXT Listing requirements
Listing requirements – overview Market
Eurolist
Description
Regulated market for large, mid & small caps
Listings and on-going requirements * Minimum 25% shares distributed to the public * Three-year track record required * Recognised accounting standards or IFRS Ongoing obligations * Audited annual report and half-year report * Timely disclosure * Two-year track record * Recognised accounting standards
Alternext
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Exchange regulated market for mid & small companies
* On-going obligation less demanding
* Public offering or Private placement
Eurolist - the Main Board •
One single regulated market - one rule book
•
One single cross-border trading platform
•
Borderless: Companies are classified in alphabetical order and identified on the basis of capitalization rather than on geographic location Large caps (group A: > €1 billion) Mid caps (group B: between €150 million and €1 billion) Small caps (group C: less than €150 million)
•
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Equal opportunity for international companies to join key indices
Eurolist - Flexible services for int’l companies Language English – or local Euronext language, at issuer’s wish Listing instruments Shares Depositary Receipts (EDR, GDR, ADR) Corporate bonds Derivative instruments, including Convertibles, Options, Warrants and Futures Currency Euro - the world’s second most important currency Or any other major currency Accounting standards IFRS – or any standard accepted by the regulator Regulatory environment Sound regulatory framework – provides credibility
No Sarbanes Oxley regulation! 12
Tailor-made for cross-border business (European Prospectus Directive)
Alternext – the Junior Market • Euronext launched Alternext on 17 May 2005 • Alternext is an exchange-regulated market • Designed for small and mid-cap companies • Easy, cost-effective access to the capital markets • Compliance with investor disclosure rules • Open for companies from all sectors
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Alternext - addressing a clear need •
Small and mid caps play an active and important role in the euro-zone: • > 1 million small and mid-sized firms*….. • …..nearly 30% of which are located in the Euronext countries • 32 million employees - 38% of total value added Less than 1% of small and mid-sized companies are listed at present! •
A tougher European regulatory environment restricts access for small and mid-caps, but Alternext provides an effective alternative. (*) fewer than 250 employees and sales below €50 million
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Alternext to date • Current market cap:
€ 657m
• Mkt cap (at issue price): € 593m • Mkt perf. since launch:
+ 11%
• No. listed companies:
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• Average size: • Average deal size: 15
• No. Listing Sponsors:
€ 37 m € 7.2 m 28
Alternext: Easy access for listing applicants
•
The decision to go public must be made by the company's managing body
•
Listing requirements are simple Applicants need only: • appoint a listing sponsor • submit the last two years' financial statements (IFRS not mandatory…..but recognised accounting standards offer investor comfort)
•
Two procedures can be used: • listing with a public offer • direct listing without public offer
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The role of the Listing sponsors •
Mandatory assistance by a Euronext-recognised and approved intermediary
•
The listing sponsor plays two main roles as the company's longterm partner: • helps and advises the applicant to prepare for an Alternext listing including preparing the prospectus or information memorandum • supports and guides the issuer throughout its life as a listed company, reminding it of disclosure requirements (initially for at least a 2 year period)
•
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The listing sponsor makes a contractual commitment to Euronext to ensure that listed companies meet their disclosure requirements.
EURONEXT
Recent Announcements -
Recent Announcements •
Highlights - Revenue: £4.1m (2008: £4.3m)
• EBITDA loss: £0.3m (2008: EBITDA profit £0.5m) • Loss before tax: £1.0m (2008: profit £0.1m) • Seventeen license transactions including extension sales completed. A number of opportunities expected to close during the first half of the year were delayed but remain in active sales cycles. • Revenue visibility now stands at £7.0m for full-year 2009 performance, up from £6.2m reported in mid June at the AGM. The licensee base now stands at 163. • Gross cash at 30 June stood at £1.6m. We have renegotiated our debtor-based revolving credit facilities from $750,000 to $1,250,000, though only $700,000 was drawn at 30 June. 19
Contd..
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Stock overview
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EURONEXT Why chose Euronext
Why join the Euronext markets? Gateway to the €urozone • Publicity: 453 million consumers • Huge pool of assets under management • Euro – key currency
Leading European exchange with a pan-European reach • Top-ranked in raising fresh capital
Excellent market liquidity • Largest central order book trading in Europe
An exchange without borders • Truly cross-border • International companies can join local indices
A recognised marketplace • Sound regulatory framework • Enhancing company’s profile to international standards 23
www.euronext.com
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