nyse euronext france-india conference mumbai - may 2007
TRANSCRIPT
NYSE Euronext
France-India Conference
Mumbai - May 2007
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NYSE Euronext – Global Exchange Leadership
Global Exchange 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
Global Source of Capital Raising
Premier Brand
Diversified Product Offering
Financial Strength A listed company: $27bn market capitalization AA rated
High Investor Confidence - Sound Governance and Regulatory Frameworks
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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 development (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 Superior service offering Unparalleled Brand Association Superior peer alignment
Advocacy on Behalf of Issuers
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Source: WFE, PwC
US and Europe: key regions for raising capital and home to the largest pools of financial assets
Source: McKinsey
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 2006
0
20
40
60
80
100
120
140
160
180
Europe UnitedStates
GreaterChina
Cap
ital
rai
sed
$ b
illi
on
0
100
200
300
400
500
600
700
800
900
Number of IPOs
5
17
62
28
12
45
25
18
14
26
6968
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0
10
20
30
40
50
60
70
1T 2007 2006 2005
IP
O $
Rai
sed
($
bil
lio
n)
NYSE London Hong Kong Nasdaq
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; figures include closed-end funds
Euronext
2823
NYSE Euronext: The Center for Global IPOs
Source: Dealogic
Median IPO size
0
20
40
60
80
100
120
140
NYSEEuronext
LondonStock
Exchange
NASDAQ Hong Kong
$ m
illio
n
NYSE Euronext: 228 IPOs in 2006 Largest median IPO size 2006, but wide range ($ 4 mln to $ 5.6 bln)
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Choice of Listing Standards Tailored to Issuer Requirements
NYSEUS 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
Alternext 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
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Superior Service Offering for Issuers
Media support & Press Release ServiceNYSE Euronext dedicated website for issuersQuarterly web-casting Magazine coverage
AdvertisingRetail and institutional investor targeting programsInclusion in market indicesEvent 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
Comprehensive issuer support pre and post listing
Euronext: The European Platform
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Euronext’s competitive position in Europe
Euronext27%
London Stock Exchange
27%
OMX8%
Deutsche Börse12%
Spanish Exchanges
10%
Borsa Italiana7%
SWX9%
MARKET CAPITALISATION
European cash equity market capitalisation
(year end 2006)
TRADING VOLUMES(full year 2006)
Source: Federation of European Securities Exchanges (FESE)
• Equal largest equity market in Europe
• Largest trading platform in Europe
0
500
1,000
1,500
2,000
2,500
Euronext London StockExchange
DeutscheBörse
SpanishExchanges
Borsa Italiana OMX SWX Group
Val
ue
trad
ed €
bil
lio
n0
20
40
60
80
100
120
Mil
lio
n t
rad
es
Turnover Trades
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Sector comparison Euronext vs LSE
Euronext – largest in Technology, Consumer Goods, Utilities, Industrials
LSE – largest in Financials, Basic Materials, Oil & Gas
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.
Euronext
6%
9%
26%4%
13%
4%Technology4%
Utilities10%
Consumer Goods13%
Industrials11%
Basic Materials
Consumer Goods
Consumer Services
Financials
Health Care
Industrials
Oil & Gas
Technology
Telecommunications
Utilities
London Stock Exchange
10%
12%
7%
8%
1%
5% 4%
Financials31%
Basic Materials8%
Oil & Gas14%
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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 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!)
Alternext the junior market
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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 requirements2 year company track record (exempt 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
Public offeringAccess to retail and/or qualified investors
Private placementAccess to qualified investors only
Minimum free float: € 2.5m Minimum placing: € 5mProspectus cleared by regulator
EU Prospectus Directive
Offering circularNot cleared by regulator; disclosures under
responsibility of the Listing Sponsor & Issuer
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Alternext – sector breakdown*
Alternext has achieved its target as a broad marketplace for SMEs
* Market capitalisation, January 2007 - ICB (Industry Classification Benchmark)
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%
Technology
Financials
Utilities
Telecommunications
Consumer Services
Health
Consumer Goods
Other Industrials
Business Services
Electronics
Construction
Basic Materials
Oil & Gas
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Alternext – size profile
Alternext’s target company size of €20m - €250m achieved.
No micro-caps… …better liquidity
Distribution of companies by market capitalisation
Alternext
0%5%
10%15%
20%25%
30%35%
0 - 2 2 - 5 5 - 10 10 - 25 25 - 50 50 - 100 100 - 250 250 - 500 500+
€ m
Distribution of companies by market capitalisation
AIM
0%
5%10%
15%20%
25%30%
35%
0 - 2 2 - 5 5 - 10 10 - 25 25 - 50 50 - 100 100 - 250 250 - 500 500+
€ m
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Alternext – market structure and liquidity
Alternext AIM
Trading model Hybrid: option of orderbook or market maker
Mainly market maker dependent
All-share performance 2006 28% - 0.2%
Average market cap (mean) € 46m € 80m
Median market cap € 34m € 30m
Liquidity**Average monthly number of transactions per stock
687 168
Overall velocity 72% 66%
Percentage of stocks with greater than 50% velocity
35% 28%
Source: Euronext & LSE. * Industry Classification Benchmark **Q4 2006
Alternext today
Alternext vs AIM
Number listed companies 92
Total market capitalisation € 4.8 billion
Average deal size € 8.9m
Deal size range € 2.7m to € 25.8m
Sector breakdown All ICB* sectors represented
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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
Origin of institutions(as of September 2006)
Germany11%
Italy1%
Australia1%
Austria1%
Euronext zone55%
U.S.3%
U.K.16%
Luxembourg5%
Spain3%
Sweden2%
Switzerland2%
Alternext: truly pan-European
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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
Case Studies
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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.
Key figures (2004):
Revenues: € 192.4m
Net profit: € 27.7m
Deal size (June 05):
Valuation: € 1,857m
PE ratio: x67
Price/Sales: x9.2
Funds raised: € 467m (of which capital increase of € 124m)
10x oversubscribed
Free float: 29%
Goldman Sachs International and Lehman Brothers acted as joint leads.
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Eurolist case study: TomTom NV (2/2)
Share price +80% in first year, outperforming index
Trading activity (daily average): € 19 million / Velocity: 200%
Index inclusion: AEX, Next150
Holland6%
France7%
Sweden3%
O ther6%
Germany8%
Italy8%
Switz.7%
UK35%
USA20%
Share allocation by geography
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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%).
Key figures (2005):
Revenues: € 12.6m
Net profit: € 291,000
Deal size – 17 October 2006:
Valuation: € 37.5m
Funds raised: € 5.5m
PE ratio: x130
Price/Sales: x3
Good take-up for the private placement among French institutional investors
Listing Sponsor: Avenir Finance Corporate
*Source: Daily Telegraph/Library House
Why the NYSE Euronext European platform?
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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:
Martine Charbonnier Executive Director – Listing & Issuer
Relations Phone: +33 14927 1608 Email: [email protected]
Nathanael Mauclair Deputy Director – International Listings Phone: +33 14927 5372 Email: [email protected]
Aaron GoldsteinDeputy Director – International ListingsHead of Russia Business DevelopmentPhone: +44 20 7379 2907Email: [email protected]
James Posnett Manager – International Listings Phone: +44 20 7379 2577 Email: [email protected]
Erik Wenngren Director – International Listings Phone: +44 20 7379 2087 Email: [email protected]
Kang Pan (Mr)Deputy Director – International ListingsHead of China Business DevelopmentPhone: +44 20 7379 2085Email: [email protected]
Duco Wildeboer Manager – Listings, Amsterdam Phone: +31 20550 4173 Email: [email protected]
Yin Yee Chan (Ms) Analyst – International Listings Phone: +44 20 7379 2746 Email: [email protected]
www.euronext.com/listing
