Euronext: Gateway to the €uro-zone
France
Holland
Belgium
Portugal
November 2006
Euronext today
The world’s first integrated cross-border exchange
 Operating in 5 European countries and the U.S.
•Europe’s largest central orderbook exchange
•The world’s second largest derivatives market
 Business worth €1,700 billion traded every day
•A leading supplier of exchange trading technology
 Used worldwide by most leading cash & derivatives exchanges
•A listed company - market capitalisation of € 8 billion
 Intention to merge with NYSE subject to regulatory and shareholder
approval
Source: Euronext
2
Euronext’s competitive position in Europe
MARKET CAPITALISATION
CENTRAL ORDERBOOK
European cash equity market capitalisation
Value traded
(year end 2005)
(€ billion, 2005)
Source: FESE
3
up
G
ro
X
SW
X
O
M
an
Ex
ch
sh
an
i
Sp
• Largest equity market in continental Europe
• Largest central orderbook in Europe
ge
s
na
lia
Ita
sc
he
D
eu
t
rs
a
ro
n
ex
t
LSE
28%
Eu
Deutsche Börse
12%
Bo
Spanish Exchanges
9%
rs
e
SWX Group
9%
Bö
OMX
8%
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
E
Euronext
26%
LS
Borsa Italiana
8%
Sector comparison Euronext vs. LSE
 Euronext – largest in Technology, Consumer Goods, Utilities, Industrials
 LSE – largest in Financials, Basic Materials, Oil & Gas
Euronext domestic
Utilities
8%
Technology
4%
4%
4%
LSE domestic
Consumer Goods
14%
6%
Basic Materials
Consumer Goods
Consumer Services
Financials
10%
14%
1%
4%
Basic Materials
7%
9%
Oil & Gas
16%
Health Care
12%
Industrials
Oil & Gas
Technology
Telecommunications
8%
Utilities
Industrials
12%
25%
Unclassified
5%
8%
Financials
29%
Total market cap = €2,654 billion*
Total market cap = €2,728 billion**
4
Source: Euronext & LSE, ICB classification * As at 31/03/06, excludes multi-listed stocks ** As at 28/02/06
Euronext – International Listings
Breakdown of listed companies
Selected international companies:
International
Companies
25%
Arcelor Mittal, Corus Group, Daiwa, Deutsche Bank,
Exxon Mobil, Fiat, Hitachi, Honda, HSBC, Maroc Telecom,
Mitsubishi Electric, NEC, SES Global, Sharp…...
Selected domestic companies:
75%
Domestic
Companies
ABN Amro, AXA, BNP Paribas, Carrefour, Danone, EDF,
Fortis, France Telecom, GDF, Heineken, ING Group,
L’Oréal, LVMH, Michelin, Philips, Renault, Royal Dutch
Shell, Sanofi-Aventis, Société Générale, Suez, Total,
Unilever……
• 25% of Euronext’s 1,300 companies are international
• 7 companies from Israel
5
Top ranked for raising fresh capital in the world
Milestones:
• € 17.2 bn fresh capital
raised, 78 new listings in
2005…
…continuing with € 13.6 bn
raised, 101 new listings
year-to-date 2006.
• The world’s largest IPO
2005: EDF
• An additional mkt cap of
€ 165 bn since Jan 2005
Selected Deals
Large caps
EDF (Electricité de France)
Utilities - electricity
€ 7,000m
KKR Private Equity
Specialty finance
$ 5,000m
Eutelsat
Satellite network
€ 860m
Tom Tom
GPS navigation
€ 467m
Mid caps
Small caps
Environnement
Environmental measurement
ExonHit Therapeutics
Biotechnology
 Key market for raising capital
 Highly active hi-tech segment
 More privatisations than any
other exchange
6
€ 23m
€ 3.8m
Unique access to European asset managers

Geographical split of equity fund assets typifies wider European investment profile

Euro-zone countries dominate – 71.5% of total equity funds under management

Fragmented market – cross-border access is key

Best of both worlds: access to the Euro-zone… as well as UK based investors… > 40% of
trading volume by UK based investment banks
The European Equity Fund Market
30%
Outside
€uro-zone
28.5%
Others
8.9%
Euronext
23.8%
€uro-zone
71.5%
25%
20%
UK
19.6%
15%
10%
5%
Source: European Fund and Asset Management Association
7
O
th
er
UK
Ita
ly
G
er
m
an
y
G
re
ec
Lu
e
xe
m
bo
ur
g
Sp
ai
n
Sw
ed
Sw
en
it z
er
la
nd
Breakdown per area
0%
Fr
an
Ne
ce
th
er
la
nd
s
Be
lg
iu
m
Po
rtu
ga
l
Au
st
ria
Fi
nl
an
d
Euro-zone (excl.
Euronext)
47.7%
Listing requirements
Listing requirements – overview
Market
Eurolist
Main
Board
Description
EU regulated
market for large,
mid & small caps
Listings and ongoing requirements
* Minimum 25% shares distributed to the public
* Three-year track record required
* IFRS or recognised accounting standards
Ongoing obligations
* Audited FY and audited/un-audited half-year accounts
* Timely disclosure
* Two-year track record
* IFRS or local GAAP with reconciliation table
Alternext
Junior
Market
Exchange regulated
market for mid &
small companies
Ongoing obligations less demanding
* Audited FY accounts, un-audited half-year reports
* Simplified reporting methods
* Timely disclosure
9
Eurolist – the main board
 One cross-border regulated market - one rule book
 One single cross-border trading 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
10
Eurolist – key features
 Language
 English – fully accepted for entire listing process and documentation, including
prospectus
 Listing instruments





Shares
Depositary Receipts (EDR, GDR, ADR)
Corporate bonds
Derivative instruments, including Convertibles, Options, Warrants and Futures
Funds
 Currency of listing
 Euro - the world’s second most important currency
 Or any other major currency
 Regulatory environment – tailor-made for cross-border business
 Sound regulatory framework – provides credibility
 No Sarbanes Oxley regulation!
11
Alternext
the junior market
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
 Open for companies from all sectors and countries
 Launched in France in May 2005, Belgium in June 2006, The Netherlands
in Q4 2006
 Broad €uro-zone access
 Same 4-country electronic trading platform for Eurolist and Alternext
 Use of a Listing Sponsor is mandatory
13
Alternext – key listing requirements
 2 year company track record (exempt for funds)
 IFRS, US GAAP or local GAAP with IFRS reconciliation tables
 Audited FY accounts, un-audited 6 months report
 Market access:
Public offering
Private placement
Access to retail and/or qualified investors
Access to qualified investors only
Minimum free float: € 2.5m
Prospectus cleared by regulator
Minimum placing: € 5m
Offering circular
EU Prospectus Directive
Not cleared by regulator; disclosures under
responsibility of the Listing Sponsor & Issuer
 Fast track dual listing through recognised market status
 Access via offering circular for companies listed on another market
 Ongoing obligations simplified
14
Alternext – sector breakdown*
Alternext has achieved its target as a broad marketplace for SMEs
Computer Hardware
Software
Internet
Computer Services
Specialty Finance
Real Estate Holding & Development
Electricity
Mobile Telecommunications
Fixed Line Telecommunications
Travel & Tourism
Publishing
Media Agencies
Specialty Retailers
Biotechnology
Medical Supplies
Medical Equipment
Recreational Products
Personal Products
Clothing & Accessories
Consumer electronics
Home constructions
Durable Household Products
Distillers & Vintners
Waste and Disposal Services
Business Support Services
Delivery Services
Electronic Equipment
Heavy Construction
Building Materials & Fixtures
Forestry
Oil Equipment & Services
0.0%
2.0%
4.0%
6.0%
* number of companies - ICB (Industry Classification Benchmark)
15
8.0%
10.0%
12.0%
14.0%
Alternext – size profile
Distribution of companies by equity market cap
Alternext’s target
company size of
€20m - €250m
achieved.
-1
,0
00
O
ve
r1
,0
00
-5
00
50
0
25
0
-2
50
10
0
-1
00
50
-5
0
-2
5
25
5
10
-1
0
-5
2
0
-2
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
No micro-caps…
…better liquidity
€m
Distribution of companies by equity market cap
AIM
25.0%
20.0%
15.0%
10.0%
5.0%
-2
50
25
0
-5
00
50
0
-1
,0
00
O
ve
r1
,0
00
10
0
-1
00
50
-5
0
25
-2
5
10
-1
0
5
-5
2
-2
0.0%
0
Number of companies
Number of companies
Alternext
£m
16
Alternext – market structure and liquidity
Alternext today
Number listed companies
Total market capitalisation
Average deal size
Deal size range
61
€ 2.6 billion
€ 8.0m
€ 2.7m to € 23.3m
Alternext vs. AIM
Average performance
Alternext
AIM
29%
12%
€ 37m
€ 23m
501
215
82%
54%
90%
24%
since Alternext launch (May 2005)
Median market cap
Average monthly number of
transactions per stock
Overall velocity
Percentage of stocks with greater
than 50% velocity
Source: Euronext & LSE - H1 2006
17
Alternext: IPOs and investor base
Origin of institutions
(as of September 2006)
U.K.
16%
U.S.
3%
Switzerland
2%
Sweden
2%
Spain
3%
Luxembourg
5%
Italy
1%
Germany
11%
Australia
1%
IPOs:
 80% institutional investor
participation, underpinning
valuations
Euronext zone
55%
Investors:
 Institutions from 14 countries
 Broad continental European
institutional take-up
 Strong US-UK acceptance
Austria
1%
Alternext: Truly pan-European
18
Case Study
Alternext case study: Environnement SA
 Environnement is the European leader in designing, manufacturing, and selling
equipment and systems for air and water quality measurement and evaluation.
Sales: France (83.2%), Italy (10.3%), and United States (6.5%).
IPO - 19 January 2006:
Market capitalisation
Key figures (2004):
80
Valuation: € 57m
Revenues: € 30.5m
70
Trailing PE ratio: 71
Funds raised: € 23m
11.8x oversubscription
Net profit: € 799,000
Value maintained at
+25% after 9 months
Current valuation: € 71m
euros (million)
60
50
40
30
20
10
0
Jan-06
Bookrunner: Crédit du Nord
20
Oct-06
Why Euronext?
Why Euronext?
 Gateway to the €uro-zone
• 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 order-book trading volumes in Europe
• International companies can join local indices
• Broad service offering for early stage and mature companies
22
Descargar

Slide 1