Euronext Brussels 10 Largest Market Caps

Home , Cumerio, UCB (company)

The exchange 2014 THIS WAS 2013

2 JANUARY 2013

Offre sur Telenet ne réussit pas

3 JANUARY 2013

4 MARCH 2013

Koen Geens nouveau Ministre des Finances

5 MARCH 2013 THROMBOGENICS AND DELTA LLOYD JOIN BEL 20

6 APRIL 2013

7 JUNE 2013 LARGEST IPO ON EURONEXT JULY 2013 ENTERNEXT LAUNCH

9 JULY 2013 LISTING CARDIO3

10 JULY 2013 BPOST OPTIONS

11 JULY 2013

12 NOVEMBER 2013

ICE closes on $11B acquisition of NYSE Euronext

13 NOVEMBER 2013

14 DECEMBER 2013

15 DECEMBER 2013 LISTING QRF (BIGGEST ENTERNEXT IPO 2013)

16 A CHANGING TRADING ENVIRONMENT

Issuers Exchange Members Investors

• Active • Long term Broker = Retail intermediary • Classic • Pension fund Convertibles • e-broker • Mutual fund • Algorithmic • Insurance Cies • Asset manager Institutional • Holding • Hedge fund,...

Trader = Options, futures Proprietary trading Indices • Market maker • Liquidity provider • High frequency trader The Exchange is the place where issuers meet investors via the members (brokers or traders)

18 WHY WOULD A COMPANY LIST ?

19 LISTING PUTS AN ISSUER IN A NEW DIVISION

Belgian Day in Wall Street Bell Ceremony in Brusssels

 Listing gives visibility (and credibility) and facilitates funding

 Gives liquidity and market valuation for existing shareholders, including families, private equity, venture capitalists, banks…

 The issuer is forced to adopt good corporate governance principles and becomes more professional

 Creates own takeover money as well as rewarding schemes for staff

20 GIVES PERMANENT VALUATION OF THE COMPANY AND ITS STRATEGY

DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE

Book value Market value

Real Estate : Cofinimmo Biotech : Thrombogenics (m€) (m€) 1800 1.600 1600 1.400 1400 1.200 1200 1.000 1000 X 1 800 X 11.2 800 600 600 400 400 200 200 0 0

 Management gets feed-back from investors/analysts

21 PROVIDES A POSSIBILITY OF EXIT FOR HISTORICAL INVESTORS

• Government: privatization programs

• Venture capitalists: Belgacom, bpost

• Family arrangements : Exmar, Euronav

• Spin-off: Umicore sold its copper activities (Cumerio)

its zinc activities (Nyrstar)

+ Keep decision center in Belgium • Delhaize, UCB, Solvay, EVS, IBA,... > < Taminco

22 JOB CREATION: LISTED COMPANIES ARE KING

Evolution of number of employees Euronext

6000 Alternext Marché Libre 5000 49% = 1 795 emplois 4000

3000

2000

105% = 1 039 emplois number of employees of number 1000 74% = 510 emplois

0 IPO - 2 IPO - 1 IPO IPO + 1 IPOSource + 2 et analyse: Cindy Liégeois

Echantillon: 53 des 67 IPO de sociétés belges cotées entre 2003 et 2009 (à l’exclusion des Sicafi, des privatisations et des spin-offs,…) 23 A COMPETITIVE ENVIRONMENT

24 MIFID IMPACT ON BEL 20’S LIQUIDITY FRAGMENTATION

Evolution of monthly Euronext Market Share in Lit pools

100% 90% Turnover Trades 80% 70% 60% 50% 40% Nov Mar July Nov Mar July Nov Mar July Nov Mar July Nov Mar July Nov 2007 2008 2008 2008 2009 2009 2009 2010 2010 2010 2011 2011 2011 2012 2012 2012

 Since launch of MiFID in Nov. 2007, the market share of Euronext has been declining.

Source: Fidessa 25 TOP 15 MOST ACTIVE BROKERS IN BRUSSELS IN 2012 (IN €) Alternative platforms Chi-X* BATS Europe* Turquoise Equiduct Barclays BNP Paribas Citadel Crédit Agricole Crédit Suisse Deutsche Bank Goldman Sachs Hudson River ING JP Morgan Merrill Lynch Morgan Stanley Nomura Société Générale UBS

 No Belgian bank ! = Shareholder

26 * Merger in 2011 average fee per trade on Euronext TRADING COSTS € 1,19 € 1,20 € 1,08

€ 1,00 € 0,95 Average trading costs continue to decrease  € 0,80 € 0,60 € 0,60 Euronext € 0,43 € 0,37 € 0,34 € 0,40 € 0,33 € 0,34

€ 0,20 EU FTT € 5,00 € 0,00

Belgian TOB € 12,50  FTT, if applied on listed products, would multiply trading costs by 15

27 ANGLO-SAXON BROKERS DOMINATE THE MARKETS

2,9 3,2 3,5 3,2 3,7 100% 4,5 5,4 7,4 6,3 5,1 90% 28,1 80% 33,2 43,7 70% 53,9 51,7 54,6 60,2 other 9,6 57 68 60% 10 74,1 UK 50% 27,3 9,1 NL 40% 26,3 9,5 14,1 15,5 11,7 FR 9,9 30% 11,8 10,6 6,9 BEL 20% 10,7 14,9 18,7 5,9 32,1 19 27,3 28,6 17,4 10% 20,6 11,5 13,1 11,6 9,9 7,4 4,5 4,8 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013  Belgian brokers represent less than 5 % of the volumes traded in Brussels

28 SOME FIGURES

29 2013 PERFORMANCE OF THE INDICES

1300

BEL Small : + 28,79 % 1250

1200

1150

BEL 20 : + 18,10 % 1100

1050

BEL Mid : + 9,57 % 1000

950

30 Performance of the main 3 indices since 1 Jan 2006: 8 YEARS

1600 BEL Small : + 48,95 %

1400

1200

1000 BEL Mid : + 6,63 %

800

600 Bel 20 : -17,62%

400 2005-12-30 2006-12-30 2007-12-30 2008-12-30 2009-12-30 2010-12-30 2011-12-30 2012-12-30 2013-12-30

31 NUMBER OF (DOMESTIC) IPO’S SINCE 1972 IN BRUSSELS

15 Free Market Alternext 10 Euro-NM Second Mkt 5 First Mkt

1975 2012 1972 1973 1974 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013

32 Number of (domestic) IPO’s and delistings since 1987

30 97 over previous 10 years 76 over last 10 years 25 IPO 20 Delisting 15

-5

-10

-15 33 -20 108 over previous 10 years 74 over last 10 years Evolution of the number of listed companies since 1972 400

350 338 Free Market (19)

300 Alternext (13)

Euronext (117) 250

200

150

100

34 EVOLUTION OF BRUSSELS’S MARKET CAPITALIZATION

BILLIONS € 350 € Sub Prime 300 300 € 265 272 EURO 250 € 245 227 208 197 201 200 200 € 185 186 181 177

150 € 137 126 122 120

100 € 94 Cooreman 74 66 70 66 De Clercq 54 50 55 53 50 € 37 34 26 15 19 7 8 10 11 8 9 8 8 9 10 8 8 10

0 €

1976 2003 1970 1971 1972 1973 1974 1975 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

35 AVERAGE VALUE OF A LISTED COMPANY Million € 2000 1800 1600 1400 1200 1000 800 600 400 200 0

Average size of company is 60 times bigger than 40 years ago But 12,8 times corrected for inflation

36 EVOLUTION OF CASH TRADING IN BRUSSELS Average daily volume (mio €) Average daily number of trades 700 681 70.000

60.537 58.124 60.000 600 551 54.974 55.450 53.765 48.323 487 500 50.000 42.346 400 369 40.000 345 338 318 317 315 300 30.000 25.041 223 190 183 19.315 200 20.000 13.630 137 11.160 10.800 10.052 100 10.000

0 0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2002 2005 2001 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013

37 BRUSSELS IN THE EURONEXT GROUP: MARKET SHARE

7% Equity options (continental Traded volumes (in €) 6,27% Europe) 6% 5,74% 5,98% 5,18% 1,80% 5,08% 5,12% 1,60% 1,53% 5% 4,74% 1,40% 5,06% 4,78% 1,20% 1,07% 4% 1,00% 1,05% 3,65% 0,85% 0,80% 0,73% 3% 0,60% 0,40% 0,40% 2,48% 0,20%

2% 0,00%

2009 2003 2004 2005 2006 2007 2008 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013 Market capitalization Nb of Issuers 15,4% 12% 16% 11,2% 10,7% 10,6% 15,3% 11% 15% 14,6% 15,0% 10,7% 14,8% 10% 10,5% 14,3% 9,1% 9,2% 15% 14,5%14,8% 9,4% 14,4% 9% 9,2% 14,1% 8,4% 14% 8% 13,9% 8,0% 14% 7%

6% 13%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2004 2012 2003 2005 2006 2007 2008 2009 2010 2011 2013

38 EURONEXT BRUSSELS 10 LARGEST MARKET CAPS

# Name Sector Market Cap. (€m) 1 AB INBEV Beverages 114 312 2 KBC Banks 12 797 3 GBL Financial Services 9 849 4 SOLVAY Chemicals 9 444 Pharmaceuticals & 5 UCB 7 758 Biotechnology 6 AGEAS Life Insurance 6 908 7 COLRUYT (D) Food & Drug Retailers 6 649 Fixed Line 8 BELGACOM 5 844 Telecommunications 9 DELHAIZE GROUP Food & Drug Retailers 5 030 10 UMICORE (D) Chemicals 4 438

Source: NYSE Euronext July 2013 39 CAPITAL RAISED/PLACED 2013

950 million raised in bonds, 740 million in equity by mid and small caps

4000 3715

3500

3000 2500 2210 2115 2000 BONDS 1400 EQUITY 1500 1200 1000 875 800 500 500

0 2010 2011 2012 2013

DEC 2013 40 Excluding bonds issued by Financial Institutions and pure Public sector BONDS CORPORATES 2008 – 2013 FIRST LISTING OF BONDS ON ALTERNEXT, 1 BILLION ISSUED BY NON LISTED COMPANIES

DEC 2013 41 Excluding bonds issued by Financial Institutions and pure Public sector BOND CAPITAL RAISED - 2013

Bonds – Capital raised on Brussels, TOP 10 IN €

Capital raised Issuer Name Market Compartment (€)

ELIA SYSTEM OPERATOR Euronext Compartment A 550 000 000 EANDIS CVBA Euronext Non Listed 500 000 000 U.C.B. Euronext Compartment A 350 000 000* U.C.B. Euronext Compartment A 250 000 000 KBC GROEP Euronext Compartment A 250 000 000 DEME Alternext Non Listed 200 000 000 ELIA SYSTEM OPERATOR Euronext Compartment A 200 000 000 U.C.B. Euronext Compartment A 175 717 000 KBC GROEP Euronext Compartment A 150 000 000 PINGUINLUTOSA Euronext Compartment B 150 000 000

DEC 2013 – Only Corporates 42 * Largest Retail Bond EQUITY RAISED/PLACED CORPORATES 2010 – 2013

€2,12 billion

€1,4 billion

€1,2 billion

€800 million

DEC 2013 43 EQUITY CAPITAL RAISED/PLACED - 2013

Equity – Capital raised/placed on Brussels, TOP 10 - 2013

Issuer Name Market Compartment Capital raised (€m)

BPOST Euronext Compartment A 812.0

KBC GROUP Euronext Compartment A 489.5

BEFIMMO Euronext Compartment B 109.9

QRF Euronext Compartment C 75.4 RETAIL EST.- SICAFI Euronext Compartment B 72.3

ECONOCOM Euronext Compartment B 60.8 LEASINVEST- SICAFI Euronext Compartment B 60.7

GALAPAGOS Euronext Compartment B 53.9 COFINIMMO- SICAFI Euronext Compartment A 43.9

ECONOCOM Euronext Compartment B 37.9

44 DEC 2013 IPO’S ON ENTERNEXT EUROPE - 2013

Equity – Capital raised, TOP 10 Capital raised Issuer Name Market Country Compartment (€m)

QRF Euronext BELGIUM Compartment C 75.4

NEXPONOR Alternext PORTUGAL 65.2

CARDIO3 Euronext BELGIUM Compartment C 23

MND Euronext FRANCE Compartment C 21.2

OREGE Euronext FRANCE Compartment C 20.1

MEDTECH Euronext FRANCE Compartment C 20

ERYTECH Euronext FRANCE Compartment C 17.7

IMPLANET Euronext FRANCE Compartment C 14.1

YMAGIS Euronext FRANCE Compartment C 11.5

SPINEGUARD Alternext FRANCE 8.1

45 DEC 2013 EVENTS

46 EURONEXT BRUSSELS : 65 EVENTS (CO) ORGANISED IN 2013

47 BRUSSELS BELL CEREMONIES : 39 CELEBRATIONS IN 2013

48 Financial Cocktails RETAIL EDUCATION With financial partners

Retail fairs participation VFB/Mediafin

49 FINANCIAL COCKTAILS

50 BELGIAN INVESTOR DAY – ZURICH (04/12/2013)

• The first Belgian Investor Day organised in co- operation with Bank Degroof brings together businesses and investors:

. 14 companies, representing 10 different sectors, with approx. € 12.1 Bn in market capitalization

. 81 Corporate meetings with around 25 professional investors out of the Zurich area

PAN EUROPEAN DAYS – HIGH PROFILE FORUM ON THE NYSE

Pan European Days, an innovative and high profile forum, brings together business and investors: . 61 companies, representing 20 different sectors, with approx. €762bn in market capitalisation and listed on Euronext’s Markets, together with approx. 250 investors from the United States joined the event

52 THE FUTURE

53 2014 CHALLENGES • Euronext 2.0 • Federal model: Euronext as center of financing • Enhance the attractiveness of listing , especially for small and midcaps, including bonds • Together with Febelfin, FEB/VBO, VFB, BVA • Avoid gold plating • Fiscal or regulatory incentives • Public Auction modernization • First Exchange Forum (25 April 2014) • Influence of regulation on financing • Academic approach

54 PROPOSALS EURONEXT BRUSSELS FOR THE GOVERNMENT

1. Encourage dividend distribution in shares by not taxing the dividends paid in shares (as the money remains in the company) 2. Adapt the fiscal advantage of savings accounts to dividends and capital increases 3. Suppress transaction tax on listed SME’s (market cap < 1 billion€) 4. Reward stable shareholders to increase liquidity

55 Happy New Year 2014