IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH

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1 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH FACTS & STATISTICS ON THE IRISH STOCK EXCHANGE, ITS LISTED COMPANIES AND THE ISE-RELATED SECURITIES INDUSTRY OCTOBER 2014

2 BENEFITS OF HAVING A LOCAL OUR VISION #1 EU EXCHANGE STOCK MARKET Source of equity funding for enterprise CHOICE FOR ISSUERS OF GLOBAL FIXED INCOME, FUNDS AND IRISH SECURITIES Lowers the cost of capital for domestic firms Creates local knowledge and specialisation Delivers macroeconomic benefits including greater R&D intensity and higher levels of foreign direct investment (FDI) Research compiled by Indecon IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 1

3 KEY STATISTICS 3 MARKETS 80 COUNTRIES WITH ISSUERS ON ISE MARKETS THE ISE AN INTERNATIONAL BUSINESS Main Securities Market Enterprise Securities Market SECURITIES LISTED 30 Irish Government Bonds Global Exchange Market 46 MEMBER FIRMS 52 Equities 2,196 Funds and sub-funds 24,169 Debt 37 INTERNATIONAL MEMBERS Source: ISE - September IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 3

4 THE ECOSYSTEM SUPPORTING LISTING AND TRADING ON THE ISE STOCKBROKERS INVESTMENT FIRMS INTERNATIONAL BANKS Member firms supporting trading, corporate broking and research THE SECURITIES INDUSTRY EMPLOYING HIGHLY SKILLED PROFESSIONALS FUNDS IRISH GOVERNMENT BONDS Equity sponsors and ESM advisors Fund sponsors DEBT Debt listing agents EQUITIES Legal and accounting professionals supporting listing LAWYERS ACCOUNTANTS RESEARCH ANALYSTS 4 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 5

5 ECONOMIC IMPACT AND CONTRIBUTION IN IRELAND IRISH OPERATIONS OF ISE-RELATED ECOSYSTEM DIRECT ECONOMY WIDE m m Output/Sales Revenues from Irish operations 377m 704m Tax Contribution (incl. Stamp Duty) 230m - THE SECURITIES INDUSTRY SUPPORTING THE LOCAL ECONOMY Irish Employment Incomes Supported Irish Non-Labour Business Expenditure GVA/GDP Contribution 177m 314m 130m 242m 207m 325m Irish Employment Supported - Full-Time Equivalents (FTEs) 2,101 2,977 Source: Estimated impact based on Indecon analysis of 2012 figures 6 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 7

6 PROFILE OF COMPANIES ON ISE MARKETS ISE MARKET # COMPANIES Main Securities Market (MSM) 26 73% PRIMARY LISTED IN IRELAND Enterprise Securities Market (ESM) 26 88% DUAL LISTED ISE LISTED COMPANIES MARKET PROFILE Total 52 SECTORAL PROFILE Exploration 29% Financial Services 19% Agri/Food/Beverages 17% Media and Leisure 7% Construction 8% Transport 6% ICT 4% Life Sciences, incl. Pharma and Medtech 4% Business Services 2% Retail/Wholesale 2% Other Manufacturing 2% Source: ISE - September IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 9

7 FOOD/AGRICULTURE FINANCIAL SERVICES /REITS EXPLORATION ISE LISTED COMPANIES SECTORAL CLUSTERS Source: ISE - September IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 11

8 WORLDWIDE EMPLOYEES ISE LISTED COMPANIES GLOBAL FOOTPRINT , , , , ,215 WORLDWIDE REVENUES , , ,000 EMPLOYEES 83bn REVENUES 8bn EARNINGS WORLDWIDE EARNINGS ,561m 90,679m 80,980m 78,193m 73,491m 78,653m 82,867m 6,836m 8,168m 7,273m 6,160m 6,783m 8,140m 7,976m Source: Indecon analysis based on Bloomberg 2012 data. Figures exclude Tesco and Diageo. 12 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 13

9 23.5bn EQUITY FUNDS RAISED FUNDS RAISED bn % OF TOTAL Irish Companies Other Companies 20.1bn 3.4bn 85.4% 14.6% ISE LISTED COMPANIES RAISING FUNDS INTERNATIONALLY 41 NEW COMPANY LISTINGS ON ISE MARKETS GAMEACCOUNT NETWORK C&C GROUP CPL RESOURCES ISEQ EXCHANGE TRADED FUND FASTNET OIL AND GAS PETROCELTIC INTL ZAMANO SMURFIT KAPPA GROUP GREAT WESTERN MINING GREEN REIT AER LINGUS GROUP FIRST DERIVATIVES FALCON OIL AND GAS MINCON MERRION PHARMACEUTICALS HIBERNIA REIT TOTAL PRODUCE PETRONEFT RESOURCES ORIGIN ENTERPRISES ARYZTA Source: ISE *Equity funds raised relate to all listings and include equity monies raised through introductory offers, share placings, open offers, rights issues, share allotments, and other means. 67% INTERNATIONAL INVESTORS IN IRISH LISTED COMPANIES Source: Federation of European Securities Exchanges (FESE) - market research IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 15

10 ECONOMIC IMPACT AND CONTRIBUTION IN IRELAND IRISH OPERATIONS OF ISE LISTED COMPANIES DIRECT ECONOMY WIDE m m Output/Sales Revenues from Irish Operations 12.1bn 24.0bn Irish Employment Incomes Supported 2.5bn 4.2bn ISE LISTED COMPANIES SUPPORTING THE IRISH ECONOMY Irish Non-Labour Business Expenditure GVA/GDP Contribution 7.3bn 5.3bn 15.0bn 9.5bn Irish Employment Supported Full Time Equivalents (FTEs) 49,148 97,435 Source: Estimated impact based on Indecon analysis of 2012 figures. Figures exclude Tesco and Diageo. 16 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 17

11 TOP 6 MOST SIGNIFICANT FACTORS IN COMPANIES DECISION TO LIST ON IRISH STOCK EXCHANGE Access to Irish investors 88.4% Access to international investors 80.8% WHY COMPANIES LIST ON THE ISE Achieving the best valuation for the company 77% Ability to maintain or grow liquid market for shareholders 72% Profile of company raised with investors, customers, suppliers, other finance providers and employees 69.2% Access to option of dual listing with certain international markets 68% Source: Indecon analysis of Confidential Survey of ISE-listed Companies 18 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 19

12 INTERNATIONAL PARTNERS WORLD CLASS ACCESSIBLE SYSTEMS TRADING XETRA CLEARING EUREX SETTLEMENT CREST IRISH LISTED COMPANIES #1 TRADING VENUE EQUITY TRADING MEMBERS SOURCING GLOBAL INVESTORS 20 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 21

13 FACTORS INFLUENCING DECISIONS BY DEBT ISSUERS TO LIST ON ISE - VIEWS OF ISE DEBT LISTING AGENTS Efficiency of listing process 100% Experience and reputation of the ISE and the Central Bank 100% WHY GLOBAL DEBT ISSUERS CHOOSE THE ISE Expertise and technical knowledge Communication and willingness to engage 100% 88.9% Competitive listing fees 88.9% Choice of markets 66.6% Source: Indecon Confidential Survey of Irish Stock Exchange Debt Listing Service Providers 22 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 23

14 DEBT LISTING GLOBAL FOOTPRINT AUTOPISTAS METROPOLITANAS DE PUERTO RICO BBVA 24 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 25

15 DEBT LISTINGS #3 WORLDWIDE 2013 ACROSS 48 EXCHANGES IRISH STOCK EXCHANGE #2 NEW DEBT LISTINGS EUROPE ,000 6,000 25,000 20,000 21,719 5,000 4,000 4,562 4,562 15,000 3,000 10,000 2,000 5,000 1,000 0 Malta Stock Exchange SIX Swiss Exchange Borsa Istanbul CEESEG - Vienna Oslo Børs Warsaw Stock Exchange NASDAQ OMX Nordics & Baltics London Stock Exchange NYSE Euronext Deutsche Börse Irish Stock Exchange Luxembourg Stock Exchange Abu Dhabi SE Bermuda SE Mauritius SE Saudi Stock Exchange - Tadawul Muscat Securities Market Bursa Malaysia Athens Exchange Casablanca SE Ljubljana SE Cyprus SE New Zealand Exchange Taiwan SE Corp. Malta SE Egyptian Exchange Amman SE Budapest SE TMX Group Colombo SE BM&FBOVESPA Japan Exchange Group - Osaka Japan Exchange Group - Tokyo Borsa Istanbul Hong Kong Exchanges Shenzhen SE Lima SE The Stock Exchange of Thailand Colombia SE Tel Aviv SE Mexican Exchange Moscow Exchange GreTai Securities Market Shanghai SE Johannesburg SE Singapore Exchange Oslo SIX Swiss Exchange BSE India BSE India Wiener Borse Luxembourg SE NYSE Euronext (Europe) National Stock Exchange India NASDAQ OMX Nordic Exchange Korea Exchange London Stock Exchange Irish SE Deutsche Borse Luxembourg SE Source: Indecon analysis of World Federation of Exchanges (WFE), Federation of European Securities Exchanges (FESE) and London Stock Exchange data Source: Indecon analysis of FESE data (WFE data for London Stock Exchange) 26 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 27

16 FACTORS INFLUENCING DECISIONS TO LIST INVESTMENT FUNDS ON ISE VIEWS OF ISE FUND SPONSORS Efficiency of listing process 100% WHY GLOBAL INVESTMENT MANAGERS CHOOSE THE ISE Experience and reputation of the ISE and Central Bank Open communication and willingness to engage ISE Competitive listing fees Expertise and technical knowledge 87.5% 75.0% 75.0% 62.5% Source: Indecon Confidential Survey of Irish Stock Exchange Funds Listing Service Providers 28 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 29

17 IRISH STOCK EXCHANGE #4 FUND LISTING WORLDWIDE GLOBAL INVESTMENT MANAGERS WITH ISE LISTED FUNDS , Japan Exchange Group - Tokyo TMX Group Budapest SE BM&FBOVESPA Santiago SE Euronext Shenzhen SE Moscow Exchange NASDAQ OMX Nordic Exchange NYSE Mexican Exchange National Stock Exchange India Irish SE Deutsche BÃ rse BME Spanish Exchanges Luxembourg SE Source: Indecon Analysis of World Federation of Exchanges (WFE) and ISE fund and sub-funds data Global investment managers with ISE listed funds 30 IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH 31

18 VIEWS ON THE ISE A key advantage of the ISE is the flexibility of approach that it can offer to issuers via GEM The openness of the ISE to converse with legal counsel/issuers directly has become a marked advantage over its competitors. DEBT LISTING AGENT The ISE is still seen as the exchange of choice for listing investment funds. Clients appreciate the smooth listing process. Costs are on a par with various exchanges around the world. INVESTMENT FUND SPONSOR The ISE was important to the development of the company as it enabled us to raise equity in order to grow the business and pay down debt. ISE LISTED COMPANY Source: Indecon Research of market participants 2013 Indecon statistics and analysis from research conducted on behalf of the Irish Stock Exchange - published October IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH

19 Irish Stock Exchange 28 Anglesea Street Dublin 2, Ireland T F