Transcript Access Document - Welcome to Paris EUROPLACE

NYSE Euronext
France-India Conference
Mumbai - May 2007
NYSE Euronext – Global Exchange Leadership
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Global Exchange
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1st Transatlantic Marketplace
Largest exchange by market capitalization of listed companies: $28.5 trillion
79 of the 100 largest companies globally
The world’s largest liquidity pool
Listing venue of choice: 3,656 listings from 55 countries
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Global Source of Capital Raising
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Premier Brand
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Diversified Product Offering
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Financial Strength
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A listed company: $27bn market capitalization
AA rated
High Investor Confidence - Sound Governance and Regulatory
Frameworks
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Value Proposition For Issuers
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Listing Venue Choice
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Multiple entry points for issuers of any size and geography
Listing options complement issuer’s strategy over time
Enhanced Liquidity
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Access to $ and € – the world’s two leading currencies
Extended trading day
Product development (ETFs, Indices, Options, Futures…)
NYSE Euronext working towards fungible trading between US and Europe
Broad Investor Pool
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Global and local investor access
Wide range of products (Equities, Bonds, ETFs, Derivatives…)
Investor outreach programs
Unique Global Visibility
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Superior service offering
Unparalleled Brand Association
Superior peer alignment
Advocacy on Behalf of Issuers
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Access to the World’s Largest Sources of Capital
US and Europe: key regions for raising capital and home to the largest pools of
financial assets
Total Financial Assets ($ tr)
Total Equity Capital Raised 2006
Number of IPOs
180
900
160
800
140
700
120
600
100
500
80
400
60
300
40
200
20
100
50
$47.6
Capital raised $ billion
40
30
$26.6
$17.3
20
$9.6
10
$3.6
0
0
0
Europe
United
States
$6.7
United
United
States
States
Greater
China
Source: WFE, PwC
Euro Zone
Euro
Zone
Source: McKinsey
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Japan
Japan
Other
Other
Western
Kingdom Western
Europe
Emerging
Emerging United
United
Asia
Kingdom
Asia
Europe
NYSE Euronext: The Center for Global IPOs
Total Capital Raised through IPOs 2005-2007
 NYSE Euronext: 228 IPOs in 2006
69
68
70
 Largest median IPO size 2006, but
wide range ($ 4 mln to $ 5.6 bln)
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Median IPO size
140
120
50
45
100
40
30
28
26
20
25
14
28
80
60
40
18
17
12 11
20
23
10
0
$ million
IPO $ Raised ($ billion)
60
0
NYSE
Euronext
2
1T 2007
Euronext
2006
NYSE
London
2005
Hong Kong
Nasdaq
London
Stock
Exchange
Source: Dealogic
* Hong Kong 2006 figures boosted by IPOs of China’s two largest banks;
ICBC and Bank of China (raised combined total of $27.2 billion).
Source: Dealogic; figures include closed-end funds
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NASDAQ
Hong Kong
Choice of Listing Standards Tailored to Issuer Requirements
US market for large, mid &
small caps
US SEC registration
* Minimum requirements for positive cash-flow, earnings or market cap
* Three-year track record required
* US-GAAP accounts or reconciliation on annual basis
* Independent audit committee requirement
NYSE
Arca
US market for small caps
US SEC registration
* Minimum requirements for market cap ($150m), assets ($75m) , sales ($50m), equity
($50 m) and profitability (positive pre-tax earnings)
* US-GAAP accounts or reconciliation on annual basis
* Independent audit committee requirement
Eurolist
Main
Board
EU regulated market for
large, mid & small caps
* Minimum 25% shares distributed to the public
* Three-year track record required (exemption for funds)
* IFRS, US GAAP or recognized accounting standards
Exchange-regulated
market for mid & small cap
companies
* Minimum free float of €2.5m (€5.0m for private placements)
* Two-year track record (exemption for funds)
* IFRS, US GAAP or local GAAP with reconciliation table
NYSE
Alternext
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Superior Service Offering for Issuers
Comprehensive issuer support pre and post listing
Visibility
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Advertising
Retail and institutional investor targeting programs
Inclusion in market indices
Event support: full access to NYSE Euronext facilities
for investor, board meetings and product launches
Education
 CEO Leadership forum
 IR, CEO, Governance forums
 Investor education via NYSE
Euronext websites
Media support & Press Release Service
NYSE Euronext dedicated website for issuers
Quarterly web-casting
Magazine coverage
Dedicated Customer
Service
 Liquidity provision
Information Tools
 Issuer publications/newsletters
 Client service manager
 Web-based market data
resource
 Governance specialist
 eGovDirect
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Euronext: The European
Platform
Euronext’s competitive position in Europe
MARKET CAPITALISATION
TRADING VOLUMES
European cash equity market capitalisation
(full year 2006)
(year end 2006)
2,500
120
Euronext
27%
SWX
9%
Spanish
Exchanges
10%
80
1,500
60
1,000
40
500
20
0
0
Euronext
Deutsche Börse
12%
London Stock
Exchange
London Stock
Exchange
27%
Deutsche
Börse
Spanish
Exchanges
Turnover
• Equal largest equity market in Europe
• Largest trading platform in Europe
Source: Federation of European Securities Exchanges (FESE)
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Borsa Italiana
Trades
OMX
SWX Group
Million trades
100
2,000
Value traded € billion
OMX
8%
Borsa Italiana
7%
Sector comparison Euronext vs LSE
 Euronext – largest in Technology, Consumer Goods, Utilities, Industrials
 LSE – largest in Financials, Basic Materials, Oil & Gas
Euronext
Utilities
10%
Technology
4%
6%
London Stock Exchange
Consumer Goods
13%
4%
5%
1%
Basic Materials
Consumer Goods
Consumer Services
4%
Basic Materials
8%
10%
Oil & Gas
14%
Financials
9%
13%
Health Care
12%
Industrials
8%
Oil & Gas
Technology
Telecommunications
Industrials
11%
7%
Utilities
4%
26%
Financials
31%
Total market cap = €3,045 billion
Total market cap = €3,029 billion
Source: Euronext & LSE data as at end 2006. ICB classification, domestic & primary
listings, includes main market, junior market, equity investment instruments.
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Euronext – key features
 One single cross-border trading platform
 Integrated across four countries (France, Netherlands, Belgium, Portugal)
 Language
 English – fully accepted for entire listing process and documentation, including
prospectus
 Listed instruments
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Shares
Depositary Receipts (EDR, GDR, ADR)
Corporate bonds
Derivative instruments, including Convertibles, Options, Warrants and Futures
 Currency of listing
 Euro - the world’s second most important currency
 Or any other major currency
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Eurolist – the main board
 One cross-border regulated market - one rule book
 Choice of regulatory entry point to cross-border 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)
• Equal opportunity for international companies to join key indices
• 25% of Euronext companies are international
• Sound regulatory framework (but no Sarbanes Oxley!)
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Alternext
the junior market
Alternext – the junior market
 Why Alternext?
 More than 1m €uro-zone SMEs eligible…
…but substantially fewer than 1% listed!
 Alternext is an exchange-regulated market;
 Designed for small and mid sized companies
 Simplified listing rules and ongoing obligations
 Open for companies from all sectors and countries
 Launched mid-2005
 Broad €uro-zone access
 Same 4-country trading platform for Eurolist and Alternext
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Alternext – key listing requirements
 2 year company track record (exempt for funds)
 IFRS or US GAAP
 Audited FY accounts, un-audited 6 months report
 Choice of market access:
Public offering
Private placement
Access to retail and/or qualified investors
Access to qualified investors only
Minimum free float: € 2.5m
Prospectus cleared by regulator
Minimum placing: € 5m
Offering circular
EU Prospectus Directive
Not cleared by regulator; disclosures under
responsibility of the Listing Sponsor & Issuer
 Fast track dual listing through recognised market status
 Access via offering circular for companies listed on another market
 Use of Listing Sponsor mandatory
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Alternext – sector breakdown*
Alternext has achieved its target as a broad marketplace for SMEs
Oil & Gas
Basic Materials
Construction
Electronics
Business Services
Other Industrials
Consumer Goods
Health
Consumer Services
Telecommunications
Utilities
Financials
Technology
0.0%
2.0%
4.0%
6.0%
8.0%
10.0% 12.0% 14.0% 16.0% 18.0% 20.0%
* Market capitalisation, January 2007 - ICB (Industry Classification Benchmark)
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Alternext – size profile
Distribution of companies by market capitalisation
Alternext
Alternext’s target
company size of
€20m - €250m
achieved.
35%
30%
25%
20%
15%
10%
5%
0%
0-2
2-5
5 - 10
10 - 25
25 - 50
50 - 100 100 - 250 250 - 500
500+
€m
No micro-caps…
…better liquidity
Distribution of companies by market capitalisation
AIM
35%
30%
25%
20%
15%
10%
5%
0%
0-2
2-5
5 - 10
10 - 25
25 - 50
50 - 100 100 - 250 250 - 500
€m
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500+
Alternext – market structure and liquidity
Alternext today
Number listed companies
Total market capitalisation
Average deal size
Deal size range
Sector breakdown
92
€ 4.8 billion
€ 8.9m
€ 2.7m to € 25.8m
All ICB* sectors represented
Alternext vs AIM
Alternext
Trading model
All-share performance 2006
AIM
Hybrid: option of orderbook or Mainly market maker dependent
market maker
28%
- 0.2%
Average market cap (mean)
€ 46m
€ 80m
Median market cap
€ 34m
€ 30m
687
168
72%
35%
66%
28%
Liquidity**
Average monthly number of
transactions per stock
Overall velocity
Percentage of stocks with
greater than 50% velocity
Source: Euronext & LSE. * Industry Classification Benchmark **Q4 2006
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Alternext: IPOs and investor base
Origin of institutions
(as of September 2006)
U.K.
16%
Switzerland
2%
Sweden
2%
Spain
3%
Luxembourg
5%
Italy
1%
Germany
11%
Austria
1%
IPOs:
 80% institutional investor
participation, underpinning
valuations
U.S.
3%
Euronext zone
55%
Investors:
 Institutions from 14 countries
 Broad continental European
institutional take-up
 Strong US-UK acceptance
Australia
1%
Alternext: truly pan-European
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Alternext Listing Sponsors
Aélios Finance
EFI
Allegra Finance
Euroland Finance
KPMG Corporate Finance
Leleux Associated Brokers
Amsterdams Effectenkantoor
Exco
L'Lione & Associés
Arkéon Finance
Fideuram Wargny
Natexis Bleichroeder
Atout Capital
First Dutch Capital
Nexfinance
Aurel Leven Securities
Fortis
Nextcap
Avenir Finance Corporate
Global Equities
NIBC
Banque Degroof
Grant Thornton
Oddo Corporate Finance
Banque Palatine
H & Associés
OTC Securities
Banque Privée Fideuram Wargny
IBI
Petercam
Bryan, Garnier & Co
ING Bank NV
Portzamparc Société de Bourse
Cassagne Goirand et associés
ING Belgium
Rabobank
CFD Corporate Finance
Intuitu Capital
Résalliance & Associés
CIC Banque CIO
Invest Securities
SNS Securities
Clipperton Finance
IXIS Midcaps
Société Générale
Close Brothers
KBC Securities
Sodica
CM-CIC Securities
Kempen & co
Teather & Greenwood
Crédit du nord
Kepler Equities
Vizille Capital Finance
Contact details: www.alternext.com
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Case Studies
Eurolist case study: TomTom NV (1/2)
Activity:
TomTom is a leading provider of personal navigation products and services to the
consumer mass market.
TomTom products include integrated devices, which enables navigation right out of the
box (eg screen in car) and non-integrated solutions for navigation on third-party
devices like PDAs and smartphones.
Deal size (June 05):
Key figures (2004):
Valuation: € 1,857m
Revenues: € 192.4m
PE ratio: x67
Net profit: € 27.7m
Price/Sales: x9.2
Goldman Sachs International and
Lehman Brothers acted as joint leads.
Funds raised: € 467m (of which
capital increase of € 124m)
10x oversubscribed
Free float: 29%
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Eurolist case study: TomTom NV (2/2)
Share allocation by geography
Germany Switz.
7%
8%
Sweden
3%
UK
35%
France
7%
Italy
8%
USA
20%
O ther
6%
Holland
6%
 Share price +80% in first year, outperforming index
 Trading activity (daily average): € 19 million / Velocity: 200%
 Index inclusion: AEX, Next150
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Alternext case study: Assima plc (1/2)
 UK-based Assima was founded in 2002 and publishes software for training and learning.
 In 2005, Assima was the fastest growing company in the UK*.
 Geographically, net sales breakdown as follows: United Kingdom (52.1%), Europe
(29.2%) and other (18.7%).
Deal size – 17 October 2006:
Key figures (2005):
Valuation: € 37.5m
Revenues: € 12.6m
Funds raised: € 5.5m
Net profit: € 291,000
PE ratio: x130
Listing Sponsor: Avenir
Finance Corporate
Price/Sales: x3
Good take-up for the private placement
among French institutional investors
*Source: Daily Telegraph/Library House
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Why the NYSE Euronext
European platform?
Why the NYSE Euronext European platform?
 Gateway to the €uro-zone + Global Visibility
• Publicity: cross-border access to investors, customers & business partners
• Acquisition currency: €uro – a key currency
• Huge pool of assets under management
• Single entry point gives broad European access for listing and trading
 Leading cross-border exchange with a pan-European reach
• Top-ranked globally for capital raising
• Largest central orderbook trading volumes in Europe
• International companies can join local indices
• Broad service offering for early stage and mature companies
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International Listings department:
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Martine Charbonnier
Executive Director – Listing & Issuer Relations
Phone: +33 14927 1608
Email: [email protected]
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Erik Wenngren
Director – International Listings
Phone: +44 20 7379 2087
Email: [email protected]
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Nathanael Mauclair
Deputy Director – International Listings
Phone: +33 14927 5372
Email: [email protected]
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Kang Pan (Mr)
Deputy Director – International Listings
Head of China Business Development
Phone: +44 20 7379 2085
Email: [email protected]
Aaron Goldstein
Deputy Director – International Listings
Head of Russia Business Development
Phone: +44 20 7379 2907
Email: [email protected]
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Duco Wildeboer
Manager – Listings, Amsterdam
Phone: +31 20550 4173
Email: [email protected]
James Posnett
Manager – International Listings
Phone: +44 20 7379 2577
Email: [email protected]
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Yin Yee Chan (Ms)
Analyst – International Listings
Phone: +44 20 7379 2746
Email: [email protected]
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www.euronext.com/listing
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