Heart of the worlds financial markets Prepared for the Institute of Directors May 2012.

Heart of the world’s financial markets

Prepared for the Institute of Directors

May 2012

2

London is the premier listing choice

LIQUIDITY

INVESTORS

PROFILE

Global Financial Centres index

London’s ranking

1stEdition 4

Sept 2008

Global Financial Centres index

London’s ranking

1stEdition 5

March 2009

Global Financial Centres index

London’s ranking

1stEdition 6

Sept 2009

Global Financial Centres index

London’s ranking

1stEdition 7

March 2010

Global Financial Centres index

London’s ranking

1stEdition 8

Sept 2010

Global Financial Centres index

London’s ranking

1stEdition 9

March 2011

Global Financial Centres index

London’s ranking

1stEdition 10 Sept 2011

Through our group companies we endeavour to provide the best listing and trading environment

for our issuers

3

…sitting in a time zone which can trade with the world

London is a global hub for international investors

USD million

Assets managed in the UK and globally out of London – ten largest investment firms

Source: Investment Management Association: Asset Management in the UK

2009-2011.

All major global investors sit in London are able to access London Stock Exchange traded stocks

0 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11

London trading hours

4

London Stock Exchange offers a diverse range of markets

Main MarketEU Regulated markets

Exchange Regulated markets

AIM

Professional

Securities Market

Specialist Fund Market

Securities admitted to official list

(maintained by UKLA)

Securities not admitted to official

list(maintained by UKLA)

The choice of market will depend on a number of factors including:

• Stage in a company’s development

• Complexity of the offer and securities issued

• Target investors

• Company’s size • Company's strategy and objectives

From Small to Large:

AIM: The World’s Most Successful Growth Market

66

NB: Number of companies colour coded per grouping rather than country

60 +

40-59

20-39

0-19

Number of companies

Source: London Stock Exchange statistics – February 2012

AIM companies have operations across the globe from 95 countries

655042

59

40

24

3629

26

15

Other offshore: 10Isle of Man & Channel Islands: 18

23

9 111

UK: 685

77

AIM covers an unparalleled range of sectors

Source: London Stock Exchange trade statistics – February 2012

INDUSTRY REPRESENTATION BY NUMBER OF COMPANIES

Oil & Gas; 129Basic Materials; 170

Industrials; 212

Consumer Goods; 57

Health Care; 64

Consumer Services; 109

Telecoms; 13 Utilities; 11 Financials; 249

Technology; 108

88

AIM provides access to the world’s leading institutional investors

The investor base for AIM companies is institutional and retail.

Source: GCI Institutional Investors in AIM survey 2011

InvestorNumber of

investmentsValue of investments

(EUR million)

Blackrock 141 2,188Fidelity 86 1,025Invesco 55 863Lloyds Banking Group 56 800Prudential 43 774Henderson Global Investors 167 732Capital Group Companies 35 694Challice Limited 1 602Citvic Nominees 5 581JPMorgan Chase 64 523

99

0.10.8 0.7 0.6 0.9

3.1

1.1 1.02.1

4.7

8.9

15.7

16.2

4.35.5

6.8

4.3

19951996199719981999200020012002200320042005200620072008200920102011

Further money raised

New money raised

(in £ billions)

Source: London Stock Exchange statistics – February 2012

AIM enables companies to raise capital throughout their life on market

1010

AIM’s entry criteria are tailored for growing companies

• Nominated adviser (Nomad) required at all times

• No minimum size requirement

• No minimum financial history required

• No formal requirement for shares to be held in public hands

1111

Continuing eligibility requirements facilitate growth and investor confidence

• Must retain a Nomad at all times

• Must disclose all price sensitive information in a timely manner

• Half yearly and annual report and accounts required

• UK Corporate Governance standards adopted by companies as best practice

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Pre IPO Considerations

Timing: 6 – 12 months

Deal Team: External advisers and internal team

Tasks: Board structure & corporate governance

Financial due diligence

Legal due diligence

Produce Admission Document / Prospectus

Investor roadshow

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Post IPO Considerations

Investor Relations: Investors, analysts and media

Reporting: Company results

Price-sensitive information

Regulation: Company and Director obligations

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Further Information

Mark RussonBusiness Development ManagerUK Primary Markets

+44 (0)7766 421 679

[email protected]

www.londonstockexchange.com