Transcript 2005 Q1 results presentation

8th Annual Capital Link Forum
Invest in Greece
Spyros Capralos
Athens Exchange
Chairman & CEO
November 17th 2006
The Greek Economy
Greece
Reduction of corporate taxes
2004: 35% 2006: 29%, 2007: 25%
Reduction of the stock sales tax from 30 b.p. to 15 b.p.
Gov’t might reduce further to 10-12 b.p.
Privatizations
2006: IPO of the Greek Postal Savings Bank
2006: Full privatization of the Commercial Bank of Greece
Buyer: Crédit Agricole
2006: €3 bn capital increase by NBG
Proved that large amounts of capital can be raised in ATHEX
2007: €1.7 bn privatization revenues for the gov’t (included in the budget)
2
Greek Business
Greece
Merger activity is picking up
Vivartia (Delta + Goody’s + General Foods + Chipita)
Marfin, Egnatia & Laiki Bank merger
Private Equity Fund is trying to take Hyatt private
Increased M&A activity in the health sector
Increase in private placements
 increase in free float of the market
3
HELEX Restructuring
Unified Group organizational structure
HELEX Group
Corporate
Operations
Financial Markets
Clearing, Settlement &
Registry
Merger of subsidiaries  Simplified Group structure
2002: ASE + ADEX = ATHEX
2005: HELEX + ASYK = HELEX
2006: HELEX + CSD + ADECH = HELEX
(to be completed by the end of 11.2006)
4
ATHEX Rulebook
Elimination of odd lots; lot size = 1
Payment of dividends by the Central Securities Depository
directly to the investors’ trading accounts
Calculation of the closing prices using the call auction method
Resolution of listed company shareholder registry issues
Removing the barriers to the entry of remote members
ATHEX now has 9 remote members, all from Cyprus
Extended trading hours
Relaxation of listing requirements for shipping companies
5
International Investors in ATHEX
Figures refer to percentage of the Market Capitalization. 2001-2005 Data refer to December 31st of each year.
International vs. Retail Investor Participation in A THEX
45%
40%
35%
30%
25%
44,6%
40,3%
International Investors
36,5%
Local Retail
Investors
32,1%
28,7%
31,3%
29,7%
30,6%
26,9%
24,5%
23,9%
23,0%
20%
2001
2002
2003
2004
2005
2006 Oct
Participation of international investors in the
FTSE/ATHEX 20 & FTSE/ATHEX 40
55%
50,7%
37,0%
40%
39,4%
42,2%
41,3%
45%
44,5%
31,1%
30%
27,8%
25%
18,4%
20,0%
2002
2003
21,8%
15%
2001
2002
2003
2004
2005
2006
Oct
Market is becoming more “Institutional” and more “International”.
6
2004
2005
2006
Oct
Capital Inflows in ATHEX
Net Capital Inflow in ATHEX
from Ιnternational Investors (€ mln)
5.200
5.000
3.700
4.000
3.000
2.000
1.000
0
2005
2006 (10 months)
7
Challenges
Consolidation of Exchanges
+
-
tie-up
merger?
+
merger
Trading Platform creation by 7 major banks (2008)
8
Challenges
Transparency – Cost of Trading
Fee Structure Changes
Need for
competitiveness
MiFID +
Code of
Conduct
Reduction
of Market
Risk for the
Group
Need for
Turnover
Velocity
9
Transparency
ATHEX-CSE Common Platform
Common Trading & Clearing Platform (live since October 30th, 2006)
Remote Membership
Single entry point for Investors
Shares in both markets traded in Euros
Common trading hours for both markets
Harmonization of the regulatory framework
Paves the way for similar agreements in the region
10
New Developments
ETFs
Liberalization of Short Selling & Stock Lending
Changes in Derivatives’ Market
Creation of new Semi-regulated market
Change of Corporate Law Legislation (already drafted)
Record Date - Proxy Voting for Shareholders’ Participation
11
Market Statistics
ATHEX Average Daily Value of
Trading
(€ ml.)
350
275
200
340
ATHEX
General
Index
210
141
125
5.000
50
2004
2005
+17%
2006 Nov
+32%
4.000
+23%
3.000
1
/1
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1
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0
/0
4
1
/1
/0
5
1
/4
/0
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1
/7
/0
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1
/1
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/0
5
1
/1
/0
6
1
/4
/0
6
1
/7
/0
6
1
/1
0
/0
6
2.000
12
8th Annual Capital Link Forum
Thank you!
Invest in Greece
Spyros Capralos
Chairman – Athens Exchange
CEO – Hellenic Exchanges
November 17th 2006