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    /download/materials/Goldstein.ppt /download/materials/Goldstein.ppt Presentation Transcript

    • Aaron Goldstein Head of Russia and CIS Business Development April 2008 Benefits of Listing on NYSE Euronext
    • Global Choice of Listing Venues & Products
      • 5% equity stake
      Flexible Listing Venues Complement Capital Market Objectives
      • 5% equity stake
      Asia
      • NYSE
      • Cash Equities
      • Fixed Income
      • ETFs
      • DRs
      • NYSE Arca
      • Cash Equities
      • Equity Options
      • ETFs
      • DRs
      • Euronext
      • Cash Equities
      • Bonds
      • ETFs
      • Certificates
      • Warrants
      • DRs
      • Alternext
      • Cash Equities
      • DRs
      • Liffe
      • Derivatives
      Gateway to the Euro-zone Americas Europe Strategic Relationships NYSE Euronext The world’s largest equity market
    • NYSE Euronext – Global Exchange Leadership
      • Global Exchange
      • 1 st Transatlantic Marketplace
      • Largest exchange by market capitalization of listed companies: $30 trillion
      • 80 of the 100 largest companies globally
      • The world’s largest liquidity pool
      • Daily trade in equity $142 billion(1/3 of the world’s trade)/Daily Derivative LIFFE Euro 1.8 trillion
      • Listing venue of choice: over 4,000 listings from 55 countries
      • Global Source of Capital Raising
      • Premier Brand
      • Diversified Product Offering
      • Financial Strength
      • A listed company: $20bn market capitalization
      • AA rated
      • Investor Confidence - Sound Governance and Regulatory Framework
    • Value Proposition For Issuers
      • Listing Venue Choice
      • Multiple entry points for issuers of any size and geography
      • Listing options complement issuer’s strategy over time
      • Enhanced Liquidity
      • Access to $ and € – the world’s two leading currencies
      • Extended trading day
      • Product extensions (ETFs, Indices, Options, Futures…)
      • NYSE Euronext working towards fungible trading between US and Europe
      • Broad Investor Pool
      • Global and local investor access
      • Wide range of products (Equities, Bonds, ETFs, Derivatives…)
      • Investor outreach programs
      • Unique Global Visibility
      • Unparalleled Brand Association
      • Superior service offering
      • Superior peer alignment
      • Advocacy on Behalf of Issuers
    • Source: Dealogic, figures include closed-end funds US and Europe: key regions for raising capital and home to the largest pools of financial assets Source: McKinsey, January 2008 Total Financial Assets ($ tr) Euro Zone United Kingdom Japan Emerging Asia Other Western Europe United States Access to the World’s Largest Sources of Capital Total Equity Capital Raised 2007
    • Total Capital Raised through IPOs 2005-2007 * Hong Kong 2006 figures boosted by IPOs of China’s two largest banks; ICBC and Bank of China (raised combined total of $27.2 billion). Source: Dealogic, exchanges; figures include closed-end funds (exclude ETFs) NYSE Euronext: The Center for Global IPOs Source: Dealogic NYSE Euronext: 307 New Listings in 2007 Large median IPO size in 2007, but wide range ($ 6.4 mln to $ 6 bln ) 28 23 14 Euronext
    • NYSE Euronext: The Center for Secondary Offerings
      • NYSE Euronext is the dominant stock exchange for follow-on financing
      • Euronext has raised more capital through secondary offerings than London SE, Deutsche Boerse and Nasdaq over the past 3 years
      Source: Dealogic * single counted
    • NYSE Euronext: Largest BRIC+K (Kazakhstan) Footprint NYSE Euronext has attracted more international listings from emerging economies than any other stock exchange Source: Bloomberg, NYSE Euronext
    • Superior Service Offering for Issuers Comprehensive Issuer Support Pre and Post Listing Media support & Press Release Service NYSE Euronext dedicated website for issuers Quarterly web-casting Magazine coverage 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 Visibility Education CEO Leadership forum IR, CEO, Governance forums Investor education via NYSE Euronext websites Information Tools Issuer publications/newsletters Web-based market data resource eGovDirect Dedicated Customer Service Liquidity provision Client service manager Governance specialist
    • NYSE Euronext European Platform
    • Euronext – key features
      • One single cross-border trading platform
      • Integrated across four countries
      • Former stock exchanges of Paris, Amsterdam, Brussels and Lisbon
      • Global footprint
      • NYSE Euronext is the world’s first truly global marketplace
      • Listed instruments
      • Shares
      • Corporate bonds
      • Depositary Receipts (GDR, ADR, EDR)
      • Derivative instruments, including Convertibles, Options, Warrants and Futures
      • Currency of listing
      • Euro - the world’s second most important currency
      • Or any other major currency
      • Indices
      • CAC 40, AEX 25, Euronext 100, FTSEurofirst…
    • Euronext’s Competitive Position in Europe MARKET CAPITALISATION European cash equity market capitalisation (end 2007) TRADING VOLUMES (2007) Source: Federation of European Securities Exchanges (FESE) Figures include domestic & primary international listings
      • Largest equity market in Europe
      • Largest trading platform in Europe
    • Sector Comparison Euronext vs LSE
      • Euronext sector profile very similar to London Stock Exchange
      • Euronext – larger in Technology, Consumer Goods, Utilities, Industrials
      Total market cap = €2,982 billion Total market cap = €2,769 billion Source: Bloomberg, Euronext & LSE data as December 2007. ICB classification, domestic & primary listings, includes main market, SME market, equity investment instruments.
    • Unique access to European asset managers
      • Euro-zone countries dominate investment fund industry in Europe - 82% of total
      • Assets under management increased 9% in H1 2007 taking total to € 6.4 trillion (UCITS)
      • NYSE Euronext’s European platform facilitates cross-border access
      Source: European Fund & Asset Management Association (EFAMA) end H1 2007 Assets Under Management UCITS – Undertakings for the Collective Investment of Transferable Securities EUR billion
    • Euronext is dominated by high quality broker-dealers & listing agents
      • Bulge bracket and pan-European banks dominate the marketplace
      • Euronext gives access to the Euro-zone…as well as US & UK based investors: all major London based investment banks are active members
      • Over 50% of trading by London based broker-dealers
      Top 25 broker-dealers and listing agents
    • Euronext IPOs have consistently outperformed other European exchanges over the past 3 years Source: Dealogic December 2007 Figures include main markets and SME markets m
    • Listing Requirements – Overview
    • Listing requirements comparison: Euronext vs London SE * Euronext Amsterdam entry point 10% maximum in other listed entities (unless listed entity has 15% investment concentration limit) None Investment restrictions Yes No Feeder funds required to control master fund investment policy Yes – UK Combined Code Not mandatory Corporate governance – majority of board required to be independent Primary listing requirements for investment companies/funds No Yes Non-voting shares permitted Secondary listing on IOB Excluded from main indices Primary listing on main market orderbook Eligible for inclusion in main indices GDR listings Primary listing requirements Yes Yes No No
      • Shareholder approval required for:
      • Substantial transactions
      • Related party transactions
      London – Main Market Euronext*
    • Listing requirements comparison: Euronext vs London SE * Euronext Amsterdam entry point Yes No Requirement for spread of investment risk Yes No Quarterly portfolio reports No – physical delivery Yes Electronic flagging of restricted securities in settlement system Primary listing requirements for investment companies/funds (continued) Yes, limited to 14.99% No (though market abuse directive applies) Restrictions on share buybacks Yes No Future issues of shares only above NAV Yes No Annual explanation on benefit of continued appointment of manager Yes No Requirement for investment manager track record London – Main Market Euronext*
    • Euronext – The Main Board
    • Euronext – The Main Board
      • One cross-border EU regulated market – one rule book
      • Choice of regulatory entry point to cross-border platform
      • Borderless
      • Companies are classified according to sector and market capitalization rather than geographical location
      • Equal opportunity for international companies to join key indices
      • Companies from over 30 countries listed
      • Sound regulatory framework (but no Sarbanes Oxley!)
    • Top 10 Euronext IPOs 2007 1,656 225 Reinsurance CHF Paris Re 261 261 Equity Investment Instruments CYM Leo Capital Growth SPC 320 302 Medical Supplies NLD/BEL Arseus 643 314 Non ferrous Metals NLD AMG Advanced Metallurgical Group 1,469 324 Electricity PRT REN 363 363 Equity Investment Instruments GGY Lehman Brothers Private Equity 4,224 1,056 Industrial Suppliers FRA Rexel 4,378 1,078 Business Support Services FRA Bureau Veritas 1,314 1,314 Equity Investment Instruments GGY Conversus Capital 2,000 2,000 Non ferrous Metals BEL/AUS Nyrstar Market cap (EUR) Capital raised (EUR) Sector Nationality Company
    • Legal Marketing Due diligence Required financial statements Positioning Valuation Deal structure Prepare prospectus Apply for listing & regulatory approval (through listing agent) Analyst meeting Presentation material and Q & A practice Pre-marketing to institutions Euronext Listing admission Regulator Prospectus Book building Road show and marketing to investors Appoint listing agent / Lead manager Price fixing Allocation Trading T– 30 to 90 days T– 14 days T– 3 to 6 months Euronext Listing and IPO process Euronext involvement List on Euronext Start trading
    • NYSE Alternext: the SME Market
    • Alternext – The SME 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 Euronext and Alternext
    • Alternext – Key Listing Requirements
      • 2 year company track record (exemption for funds)
      • IFRS or US GAAP
      • Audited FY accounts, un-audited 6 months report
      • Choice of Market Access:
      • Fast track dual listing through recognised market status
      • Access via offering circular for companies listed on another market
      • Use of Listing Sponsor mandatory
      Offering circular Not cleared by regulator; disclosures under responsibility of the Listing Sponsor & Issuer Prospectus cleared by regulator EU Prospectus Directive Minimum placing: € 5m Minimum free float: € 2.5m Private placement Access to qualified investors only Public offering Access to retail and/or qualified investors
    • Alternext – sector breakdown* Alternext has achieved its target as a broad marketplace for SMEs * Market capitalisation, December 2007 - ICB (Industry Classification Benchmark)
    • Alternext – size profile
      • Alternext’s target company size of €20m - €250m achieved.
      • No micro-caps… …better liquidity
      Source: Euronext, LSE, December 2007
    • Alternext – key indicators Source: Euronext, LSE & Bloomberg * end January 2008 ** ICB - Industry Classification Benchmark Alternext today* Alternext vs. AIM Spread ratio = bid–ask spread / last price £= € 1.34 Volatility = annualized standard deviation of the relative price change for the 360 most recent trading days closing price € 2.6m to € 34m Deal size range All sectors represented Sector breakdown** € 9.4m Average deal size 120 Number listed companies € 5 billion Total market capitalisation 50% 42.5% Volatility – 360 day (mean) 42% 48% Stocks with Analyst recommendations 7% 3% Bid-ask spread ratio (median) 12.8 18.2 P/E ratio (median) € 26m € 32m Median market cap Key indicators (Feb 2008) Mainly market maker dependent Hybrid: option of orderbook or market maker Trading model € 72m € 42m Average market cap AIM Alternext
    • Alternext: IPOs and Investor Base
      • IPOs:
      • 80% institutional investor participation, underpinning valuations
      • Investors:
      • Institutions from 14 countries
      • Broad continental European institutional take-up
      • Strong US-UK acceptance
      Alternext: Truly Pan-European Source: Lionshares
    • Alternext - Listing Sponsors
      • Use of a Listing Sponsor is mandatory
      • Two main roles as the listed company's long-term partner :
        • Support the company in preparing for listing
        • Ensures company fulfils ongoing obligations
      • No fees to be Listing Sponsor
      • Requirements to become a Listing Sponsor :
        • 2 years relevant experience
        • Liability insurance
        • Fill in application form
      • Over 60 Listing Sponsors registered…and counting
    • Alternext Listing Sponsors Crédit du nord CM-CIC Securities Close Brothers Clipperton Finance CIC Banque CIO CFD Corporate Finance Cassagne Goirand et associés Bryan, Garnier & Co Banque Privée Fideuram Wargny Banque Palatine Banque Degroof Avenir Finance Corporate Aurel Leven Securities Atout Capital Arkéon Finance Amsterdams Effectenkantoor Allegra Finance Aélios Finance Kepler Equities Kempen & co KBC Securities IXIS Midcaps Invest Securities Intuitu Capital ING Belgium ING Bank NV IBI H & Associés Grant Thornton Global Equities Fortis First Dutch Capital Fideuram Wargny Exco Euroland Finance EFI Vizille Capital Finance Teather & Greenwood Sodica Société Générale SNS Securities Résalliance & Associés Rabobank Portzamparc Société de Bourse Petercam OTC Securities Oddo Corporate Finance NIBC Nextcap Nexfinance Natexis Bleichroeder L'Lione & Associés KPMG Corporate Finance Leleux Associated Brokers Contact details: www.alternext.com PricewaterhouseCoopers Atlantic Law Llp
    • Features: KKR Private Equity Investors is a Guernsey limited partnership investment vehicle created by KKR (Kohlberg Kravis Roberts), the US private equity firm . - Listed closed-end fund - 75% assets invested in KKR funds / 25% in opportunistic investments - KKR has a 30 year track record of superior investment returns IPO date – 3 rd May 2006: Funds raised: $5 billion Raised over 3 times original target Offer price: $25.00 (approx. NAV) Joint global coordinators and bookrunners: Morgan Stanley, Citigroup, Goldman Sachs (1/2)
      • Reasons KKR selected Euronext as its listing venue:
      • “ Euronext gives global investment focus and global investor base”
      • No restrictions on investment in a single project
      • Limited partnerships can list on Euronext Amsterdam
      • Flexible corporate governance code
      Broad take-up by style and geography: (2/2)
    • Activity: Prologis European Properties (PEP) is an externally managed real estate investment fund. Portfolio consists of 281 high quality distribution facilities comprising 5.4 million sq metres of leasable space in 11 countries, valued at € 4.2 billion as of June 2006. Deal size (22 Sept 06): Valuation: € 2.7 bn Offer price: € 14.35 (12% premium to 30-Jun-06 NAV) Funds raised: € 715m (incl. € 65m greenshoe) Free float: 29.5% Deutsche Bank and Morgan Stanley – joint global co-ordinators and bookrunners. Largest European real estate IPO 2006 & 2 nd largest European real estate IPO ever. (1/2)
      • Index inclusion: AEX Real Estate, AEX Financials
      Broad take-up by geography: “ The deal attracted long-only specialist real estate investors from all around the world…” IFR, 23 September 2006
      • Reasons for choosing Euronext:
      • Assets & continuing growth in the Euro-zone
      • Only major exchange to accept ‘Fonds Commun de Placement’ (FCP) structure
      (2/2)
    • 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
          • L argest central orderbook trading volumes in Europe
          • Largest exchange in Europe by market capitalisation
          • Broad service offering for early stage and mature companies