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EURONEXT
GATEWAY TO THE URO ZONE
HollandFrance
Portugal
Belgium
November 2005
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Euronext todayEuronext today
Europes 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 worlds 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 worlds first cross-border exchange
Operations in 5 European countries and the USA
Source: Euronext
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Euronexts competitive position in EuropeEuronexts competitive position in Europe
MARKET CAP.
European cash equity market capitalisation
CENTRAL ORDER BOOK
Trading value
(in billion )
Sources: FESE, Euronext, as of Dec 2004
LSE
29%
OMX
6%Milan
8%
Spanish
Exchanges
10%
DB
12%
EURONEXT
25%SWX9%
Largest equity market in continental Europe
Largest central order book in Europe
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Euronext International ListingsEuronext International Listings
Breakdown of listed companies
Domestic Cos
75 %
International Cos
25%
25% of Euronexts 1300 companies are international
Selected international companies:
Arcelor, Daiwa, Daimler Chrysler, Deutsche
Bank, Exxon Mobil, Fiat, Ford, General
Motors, General Electric, Hitachi, Honda,
HSBC, McDonalds, Maroc Telecom,
Mitsubishi Electric, NEC, SES Global, Sharp
7 Israeli companies listed
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More capital raised than any other EuropeanMore capital raised than any other European
exchangeexchange (in 2004)(in 2004)
Capital Media GroupCapital Media Group
Euronext helped businesses raise
9.4 billion fresh capital in 2004
52 new listings
Europes largest IPO: Belgacom
Cross-border successes:
- SES Global (Luxembourg)
- Maroc Telecom (Morocco)
- Cimex Pharma (Switzerland)
- Sacyr Vallehermoso (Spain)
- Hammerson (UK)
3,600 mn
1,300 mn
1,200 mn
507 mn
1,200 mn
217 mn
Selected DealsMilestones:
http://www.ses-global.com/index.htmhttp://www.snecma.com/en/index.phphttp://www.pagesjaunes.fr/8/14/2019 euronefgdxt
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Continued strong performance in 2005Continued strong performance in 2005
15.6 billion fresh capital raised in2005 YTD
57 new listings
The worlds 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 Intl (1.53
bn)
- Hi-tech: Tom Tom ( 1.86 bn)
Selected Deals (capital raised)Milestones:
7,000 mn
1,060 mn
657 mn
EDF
GDF
Telenet
Sanef
RHJ International
Tom Tom
837 mn
467 mn
3,482 mn
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Unique access to European asset managersUnique access to European asset managers
Geographical split of investment fund assets typifies wider Europeaninvestment 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
(in EUR billions)
4,186
3,763
3,327
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
2002 20042003
Breakdown per area
UK
9.1%
Others(outside Euro zone)
7.3%
Euronext
24.5%
Euro zone
(excl. euronext)
59.1%
Source: European Fund and Asset Management Association
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Unique access to European asset managersUnique access to European asset managers
Source: European Fund and Asset Management Association
France
NetherlandsBelgium
Portugal
Luxembourg
Sweden
UK
Germany
Spain
Switzerland
Austria
Ireland
Italy
Other0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
The European Investment Fund Market
Fragmented market cross-border access is key
Euronext gives London access and broad Eurozone entry
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EURONEXT
- Listing requirements -
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Listing requirements overviewListing requirements overview
Market Description Listings and on-going requirements
EurolistRegulated market
for large, mid &
small caps
* 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
* On-going obligation less demanding
* Public offering or Private placement
Alternext
Exchange
regulated market
for mid & small
companies
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Eurolist - the Main BoardEurolist - 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 onthe 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
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Eurolist - Flexible services for intl companiesEurolist - Flexible services for intl companies Language
English or local Euronext language, at issuers wish
Listing instruments Shares Depositary Receipts (EDR, GDR, ADR) Corporate bonds Derivative instruments, including Convertibles, Options, Warrants and Futures
Currency
Euro - the worlds 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! Tailor-made for cross-border business (European Prospectus Directive)
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Alternext the Junior MarketAlternext 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 to dateAlternext to date
Current market cap: 657m
Mkt cap (at issue price): 593m
Mkt perf. since launch: + 11%
No. listed companies: 16
Average size: 37 m
Average deal size: 7.2 m
No. Listin S onsors: 28
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Alternext: Easy access for listing applicantsAlternext: Easy access for listing applicants
The decision to go public must be made by the company'smanaging 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 sponsorsThe role of the Listing sponsors
Mandatory assistance by a Euronext-recognised and approvedintermediary
The listing sponsor plays two main roles as the company's long-
term 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 atleast a 2 year period)
The listing sponsor makes a contractual commitment to Euronext
to ensure that listed companies meet their disclosure
requirements.
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EURONEXT
-RecentAnnouncements-
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Recent AnnouncementsRecent 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.
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Contd..
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Stock overview
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EURONEXT
- Why chose Euronext -
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Why join the Euronext markets?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 companys profile to international standards
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www.euronext.com