Access to International capital for growth

Accessing the London markets

Tel-Aviv May 2014

Our issuers operate in more than 115 different countries across the globe

Number of companies

60 + 40-59 20-39 1-19

Source: London statistics. Based on country of primary business. 2 London is the leading market in EMEA

Number of IPOs Post-IPO performance* by Exchange 120 100 80 60 40 LSEG 33.2 20 0 LSEG NYSE Eur EU NASDAQ OMX DB NYSE Eur Amsterdam Money raised through IPOs (USDm) NASDAQ OMX 32.8 25,000 20,000 15,000 10,000 NYSE Eur EU 24.8 5,000 0 LSEG NYSE Eur EU DB NASDAQ OMX NYSE Eur Amsterdam

Daily traded value** and number of transactions -6.3 DB 10,000 No. of transactions (000s) 8,000 835 662 6,000 NYSE Eur NA 4,000 411 Amsterdam 288 2,000

0 -10.0 0.0 10.0 20.0 30.0 40.0 LSEG NYSE Eur EU Deutsche Börse Nasdaq OMX

Source: Dealogic, WFE, as of January 2014 *%Price Offer//Current - performance is market-cap weighted 3 **Transaction value - USD(m)

London new issuance market extremely active…

Money Follow on Jan-Apr Jan-Apr % Jan-Apr Jan-Apr % Number of Jan-Apr Jan-Apr % raised (IPO) issues 2013 2014 change 2013 2014 change IPOs 2013 2014 change (USD m) (USD m) Main Main Market 2,989 9,788 227% 7,467 18,502 148% Main Market 9 22 144% Market

AIM 10 25 150% AIM 83 2,353 2735% AIM 1,030 2,079 102%

Total 19 47 147% Total 3,072 12,141 295% Total 8,497 20,581 142%

45 Further issues New issues VFTSE 60

40 50

35

30 40

GBPbn

25 30

20 VFTSE

Deal value invalue Deal 15 20

10 10 5

0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Bloomberg and Dealogic, as of 30 April 2014 Jan-Apr refers to the period January 1st 2014 – April 30th 2014 4

London is a Leading Venue for Financial Sponsor-backed IPOs…

The London market continues to feature financial sponsor deals in 2014 • 2014 continues to see a favourable market for private equity-backed UK IPOs on the London market with 12 businesses successfully floating YTD and raising a combined £3.5bn ($5.7bn)

• Upcoming floats have been widely covered by the press, including, Saga, Travelex, Card Factory, and many others

Secondary Price Chg Company Private Equity Mkt cap at IPO size portion of Date Sector since IPO name Sponsor(s) IPO £m £m Offering 2014YTD Money raised at IPO by (%) (%) deal type 10-Feb-14 Manx Telecom Telecom HgCapital 163 159 87 14.8 McColl's Retail 25-Feb-14 Retail Coller Capital 333 138 63 -12.3 Group 27-Feb-14 DX Group Logistics Arle Capital Partners 334 209 8 26.0 Gulf Marine 14-Mar-14 Transportation Gulf Capital 473 179 60 20.0 Services Non 28-Feb-14 Lenta Retail TBG, VTB 2,590 587 100 -5.0 financial Financial sponsor- sponsor- 17-Mar-14 Poundland Retail Warbug Pincus 1,252 391 100 19.9 backed backed IPO 17-Mar-14 Retail KKR 2,044 511 5 -8.9 IPO 50% 50% Brit Insurance Apollo, 28-Mar-14 Insurance 1,689 290 91 -8.8 Holdings NV CVC Capital Partners Index Ventures 3-April-14 Just Eat Consumer 1,468 361 72 -13.1 Vitruvian Partners* 11-Apr-14 Cambian Group Healthcare GI Partners 392 197 90 0.6 Professional 11-Apr-14 Exova Group Clayton Dubilier & Rice 556 223 50 1.0 Services 11-Apr-14 Polypipe Chemicals Caird Capital 496 297 100 7.9

Source: Bloomberg, Dealogic, April 2014 * Other Financial Sponsors include: SM Trust, Redpoint Ventures and Greylock Partners

2) Benefits of a London listing

6 A choice of routes to market to cater for all sizes, strategies and development stages

Market Not public Exchange regulated EU Regulated Official List & EU Regulated

designation

£1bn

£150m

£1m Funding requirement Funding

£500k

£100k

£50k

Concept & Start - Up Early Stage Expansion Consolidation & Diversification of investors, M&A seed stage further capital raising and International Expansion Strategic consideration

7 …And remains the heart of international investment

Top institutional investors holdings Equity AUM held in international portfolios, by exchange Q1 2014* by country (as at end Q1) Lat 4% London 1,200 America

Asia Pacific 2% 11% 1,000 2% North UK 3% America 43%

800 28%

EMEA

600 (ex-UK) (% change to Q4 2013) Q4 to change (% -1% 4% US 16% Asia UK 400 Pacific EMEA 4% (ex-UK) USDbn 6% 7% 2% 200 -2% 2% -8% -2%

- LSE NYSE NASDAQ HKSE NYSE ASX NYSE Bovespa TSX SGX ENXT Paris ENXT Ams North America 83% • London’s strength in supporting international companies improved in the last quarter with 4% increase in Hong Kong EMEA international AUM managed out of London, more than any other financial centre. This is the third consecutive North 5% Lat quarter that London investors increased their investment in international companies. America America 5% 2% China • London listed companies continue to enjoy support of investors based outside London. North American investors 33% have increased their holdings of the LSE listed securities second quarter in a row and now account for almost a Regions with third of equity investment based in London. After increases in the last quarter European investors kept their increased exposure Asia positions of LSE equity unchanged, while LatAm investors have increased their positions in London listed stock compared to previous quarter are in green, Pacific by 1%. (ex- and decreased in red, China) unchanged in black 55%

Source: Facset and LSE calculation *international portfolios defined as investment in companies different to the country of domicile of the portfolio manager 88 London provides enhanced analyst coverage across all sectors

Average number of analyst recommendations following listed companies, by listing venue Banking Sector Diversified Industrials Oil andGas 40 14 30 35 12 25 30 10 25 20 8 20 15 6 15 10 10 4 5 5 2 0 0 0 LSEG NYSE Nasdaq HKSE TMX NYSE LSEG NYSE TMX NYSE Nasdaq LSEG TMX NYSE HKSE Nasdaq Euronext Euronext Euronext Euronext Euronext US EU US EU US

Technology and Healthcare (by market cap) 35 30 25 20 15 10 5 0 $0-50m $50-100m $100-250m $250-500m $500-1,000m $1,000-5,000m $5,000m+ LSEG NYSE Euronext US Nasdaq

Source: Bloomberg, March 2014. Data covers average analyst coverage across listed companies. Note: ICB sector classification 9 London is the most cost effective option amongst major exchanges

Cost of listing in London is further Comparison of underwriting costs reduced by: 10%

• Regulation which is widely 9% tested and balanced 8% • Highly competitive legal services which have experience 7% of listing process • Timing of the admission process 6% is clearly communicated 5% • Direct communication with the regulator and the Exchange 4% • All disclosures in English 3%

2%

1%

0% 2008 2009 2010 2011 2012 2013 Q12014

LSEG NYSE Eur US NASDAQ ASX TMX HKSE

Based on gross underwriting fees % (excluding AIM). Source: Dealogic, LSEG data – April 2014 10 2) Technology sector in London

11 Digital and Technology on

Return of investor confidence and recent market developments supporting technology and digital businesses

Enhancing public markets for digital companies • In the last 12 months, 29 digital companies listed, raising c£1bn at IPO with an aggregate market • High Growth Segment: an additional route to LSE’s Main Market providing greater choice to capitalisation of c£3.7bn growth businesses • Currently 362 technology companies listed on LSE, with o On the 3rd April 2014, Just Eat became the first company to list on the HGS market capitalisation of £1.1tr • Inclusion of AIM shares in ISAs since 5 August 2013, helping to increase retail investor activity and liquidity in growth companies o 20% uplift in FTSE AIM All Share since change compared to minimal movement in FTSE 100 Recent digital businesses Mkt Cap Money Raised • Dedicated digital index launched by FTSE – supporting liquidity and visibility of the sector IPOs* (GBPm) (GBPm) • Removal of stamp duty tax on growth markets (AIM & HGS) expected on 28 April 2014, likely AO World 1,474 507 to bring additional liquidity and lower cost of capital to growth companies Plus500 (Israel) 636 47 • ELITE: a new initiative to support growing businesses and facilitate long term structured Manx Telecom (Isle of Man) 182 159 engagement between them and the adviser and investor communities – to be launched on 28 April Servelec Group 179 125 JQW (China) 173 7 Quixant 92 4 Recent FTSE Digital and Technology indices performance Frontier Developments 92 4 Arria NLG (US) 90 6 115 Rightster Group 83 20 IBEX Global Solutions (US) 80 10 110 GameAccount Network 78 23 Keyword Studios (Ireland) 65 26

105

Digital Globe (US) 61 13 14 - CentralNic 46 7

Jan 100 Netscientific 46 30 Macromac (Malaysia) 41 1 95 CityFibre Infrastructure 40 17 Outsourcery 38 12

Index point rebased to 100 as of as 100 to rebased point Index 90 Kalibrate Technologies 37 13 Dec-13 Jan-14 Feb-14 Electrical Geodesics (US) 34 8 FTSE Digital Services Index FTSE AIM Digital Services Index SYQIC (Malaysia) 24 3 FTSE All Share Technology Index FTSE AIM All Share Technology Index EU Supply 22 5

Source: Bloomberg, Dealogic and LSE data, March 2014 *Companies with > GBP 20m mkt cap; UK companies unless stated in brackets; Technology companies on our markets

ICB Sector AIM Main Market • There are currently 270 tech** companies listed on our Electronic & Electrical Equipment 30 21 markets worth around £641bn Fixed Line Telecommunications 6 18 • Recent IPOs have been from innovative, fast growing Mobile Telecommunications 8 8 companies including: Just Eat (£360m), AO World Software & Computer Services 91 25 (£507m), boohoo.com (£300m), Manx Telecom (£156m) Technology Hardware & Equipment 18 19 Servelec (£125m), Tungsten Corp (£160m), Plus500 (£50m), CentralNic (£7m), Cambridge Cognition Other technologies* 20 6 Holdings (£11m), Keywords (£28m), Wandisco (£15m) Total Number of Companies 173 97 • High Growth Segment: an additional route to LSE’s Main Total Market Cap (£bn) 15.7 625.3 Market providing greater choice to growth businesses. On the 3rd April 2014, Just Eat became the first company to list on the HGS

Market Cap profile of technology companies on our markets

70 60 50 40 30

No. of companies of No. 20 10 0 £0-5m £5-10m £10-50m £50-100m £100-500m £500m-£1bn £1-5bn £5-10bn £10bn+ AIM 29 19 61 27 30 5 2 0 0 Main Market 3 1 4 7 22 15 31 4 10

Source: London Stock Exchange statistics, April 2014 Figures in brackets refer to money raised at IPO 13 * ’Other technologies’ includes the following additional ICB sectors: Chemicals, Equity Investment Instruments, Financial Services, General Retailers, Media, Support Services, Leisure Goods, Industrial Engineering, Household Goods & Home Construction, Travel & Leisure. **not including Healthcare Equipment & Services or Pharmaceuticals & Biotechnology ICB sectors Technology Sector Performance

In the last 3 years, the technology sector has performed well in the UK with the FTSE AIM All Share Technology Index and the FTSE All Share Technology Index consistently outperforming the FTSE 100 and All Share Indices.

190

170

150

130

110

90

70 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14

FTSE 100 FTSE 250 FTSE ALL SHARE FTSE ALL SHARE TECH FTSE AIM ALL SHARE TECH

Source: Bloomberg, April 2014 – index points rebased to 100 as of January 2011 14 4) AIM overview

15 A snapshot of AIM

Profile of AIM companies Admissions to AIM – 1995 to March 2014

519 214 1,094 companies, 500 UK 462 Over 3,450 aggregate value of Int'l companies raising 173 400 150 £78bn 355 £38bn at admission 136 133 122 284 300 277

80 200 177 162 145 160 123 107 114 39 102 102 90 99 100 75 71 13 8 36 26

0 0-2m 2-5m 5-10m 10-25m 25-50m 50-100m 100-250m 250-500m 500-1bn 1bn+ 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 26 companies either suspended or undetermined value Fundraisings on AIM – 1995 to March 2014 Industries represented – by number of companies

18 Technology, 111 Oil & Gas, 132 16 £86bn in total Further New

14 (£48bn through further issues) 12 Financials, 210 Basic Materials, 10 179 8 Utilities, 15

6 Telecommunicati 4 ons, 15 Consumer Industrials, 191 Services, 110 2 Consumer Health Care, 68 0 Goods, 63 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 *ICB industry classification

Source: LSE statistics, March 2014 16

Liquidity and investors

AIM companies have comparable levels of daily liquidity to their Main Market peers Number of companies in each index and market cap group

0.60% FTSE AIM All Market cap Range FTSE All Small Share 0.50%

0.40% £0-25m 428 38 0.30% £25-100m 243 86 £100-500m 131 222 0.20% £500m+ 12 17

of market cap marketof 0.10%

daily value traded as % as traded value daily Total 814 363 0.00%

Avg £0-25m £25-100m £100-500m £500m+

FTSE AIM All Share FTSE All Small *NB: The FTSE All-Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledging indices • AIM companies are supported by a deep FTSE 100 FTSE All Share FTSE AIM 100 FTSE AIM All Share pool of institutional capital, as well as an 130 active retail investor base

125 • There is a dedicated network of market 120 professionals (, research analysts, 115 advisors) 110

105 • The FTSE AIM 100 (which includes the 100 largest UK AIM companies) was the best 100 performing UK index in 2013 95 90 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

Source: Data from Bloomberg and FactSet (6 month average daily value traded). Liquidity Analysis shows median within each market cap range. 17 The benefits of the AIM network

Access Wide to support Profile capital network

Diverse & deep Nominated advisers pool of capital Visibility Accountants Strong support Lawyers Bargaining power with from institutions Banks/Brokers customers & suppliers Analysts Financial PR / IR Marketability of stock Media Global peer group

The AIM framework: admission & ongoing responsibilities

Key eligibility requirements • Appointment of nominated adviser Eligibility criteria • No minimum track record requirement or free float criteria, but company must demonstrate appropriateness to join a public market • Pre-admission announcement at least 10 business days prior to admission Admission documents • AIM admission document • Nomad declaration of appropriateness Rulebooks • AIM Rules for companies and nominated advisers • Adoption of corporate governance measures as appropriate for the business Corporate governance • UK Corporate Governance Code / QCA Corporate Governance Code as best practice Continuing obligations • To retain a nominated adviser at all times, failure to do so may result in suspension in the Adviser company’s shares • Audited Annual Report Periodic reporting • Half yearly financial report • Price sensitive information to be made public without delay • Significant shareholder notification Disclosure requirements • Directors’ dealings notification • Company website with up-to-date regulatory information • Class tests to assess transactions Corporate transactions • Notification of substantial transactions, related party transactions • Shareholder approval for reverse takeovers, fundamental disposals & cancellation

19 Selected IPO Case Studies

20 Examples of recent European transactions

April 2014 April 2014 Mar 2014 Mar 2014 Feb 2014

AIM Main Market AIM AIM AIM Hotel Chain Real Estate Fund Fashion Mobile Payment Digital Marketing

Feb 2014 Jan 2014 Dec 2013 Nov 2013 Nov 2013

AIM AIM AIM AIM AIM Real Estate General Industrials Mining Mobile Gaming Online Business Services

Nov 2013 Apr 2013 Oct 2013 Jul 2013 Jul 2013

AIM Main Market Main Market Main Market AIM Online Financial trading Beverages Oil & Gas CEE Beverages/Spirits CEE Real Estate Fund

21 Case Study:

Company Details Transaction Details

Company Playtech Ltd Admission date 02 Jul 2012

Money raised at Move to the Market Main Market $424m admission Main Market Travel & Leisure - Sector Market cap at Gambling $877m admission on AIM Trading System SETS Market cap at Ticker PTEC admission on Main $1.6bn Market Country of UK incorporation Current Market cap $+3bn

Company profile Listing story Leading Investors Value held $m . Playtech is a leading international designer, . Playtech was admitted to AIM in 2006 raising Capital Research & Management Co. (Global developer and licensor of software and services an initial $424m at IPO. Since then, the 218.6 Investors) for the online, mobile and land-based gaming company has enjoyed strong growth both in industry. It offers cutting edge, value-added terms of profitability and in its market BlackRock Investment Management (UK) 179.8 solutions to the online gaming industry's top capitalisation Greenlight Capital 135.8 operators . Since floating on London Stock Exchange, . Founded in 1999, the Company has over 2,400 Playtech has undertaken a number of FIL Investments International 130.9 employees principally located in five countries different transactions including: joint venture Scottish Widows Investment Partnership 39.5 and engaged in research and development of licensing deals, and acquisitions (Sportech, current and future gaming technologies or in GTS, and Virtue Fusion). JPMorgan Asset Management (UK) 37.2 providing marketing support and other ancillary . Whilst on AIM, Playtech returned to the Norges Bank Investment Management 31.8 services. market on two separate occasions raising a . Playtech’s leading gaming applications include combined $339m. In July 2012 Playtech Odey Asset Management 29.8 casino, poker, bingo, sports betting, live, mobile moved to the Main Market and has seen its Asset Management 24.2 and social gaming, as well as VLTs and FOBTs, share price climb 30% Legal & General Investment Management 22.3 casual and fixed odds games.

Source: Factset and LSE data, March 2014 Page 22 Case Study: Plus500

Company Details Transaction Details

Company PLus500 ltd Admission date 24 Jul 2013 Money raised at Market AIM $75m admission +450% in 8 months Investment Sector Market cap at Services $219m admission on AIM Trading System SETSqx Current Market cap $+1bn Country of Israel incorporation NOMAD Liberum Capital

Company profile Listing story Leading Investors Value held $m . Plus500 Ltd. is a holding company, engaged in . Plus500 raised US$25m whilst the selling the development and operation of online trading shareholders also sold US$50m in the IPO to Odey Asset Management LLP 10.9 platform. It provides contracts for difference to over 45 institutions in one of the biggest Hargreave Hale Ltd. 8.5 retail customers to trade in underlying financial placings on AIM in 2013 to date. instruments such as equities, exchange traded . Liberum, acting as Nominated Advisor and Newton Investment Management Ltd. 6.3 funds, foreign exchange, indices, and for the company, held over 60 investor Artemis Investment Management LLP 3.8 commodities. meetings and the fundraising was more than . The company was founded by Omer Elazari, twice oversubscribed; subsequently the deal Goldman Sachs & Co. 3.3 Alon Gonen, Gal Haber, Elad Ben Izhak, Shimon size was increased due to over-demand. Northern Trust Global Investments Ltd. 3.0 Sofer, and Shlomi Weizmann on May 26, 2008 . Since IPO, the share price performance has and is headquartered in Haifa, Israel. been very strong, driven by investor demand Miton Capital Partners Ltd. 2.9 for yield and now stands at a 15% premium Rathbone Investment Management Ltd. 2.8 to the listing price of 115p. Majedie Asset Management Ltd. 2.2 JPMorgan Asset Management (UK) Ltd. 1.8

Source: Factset and LSE trading data March 2014 Page 23 Case Study: Safecharge

Company Details Transaction Details Value held Post-IPO insiders/Investors £m Safecharge Admission Date 2 April 2014 Company International Group plc Money raised at Teddy Sagi 66.7% $126m Market AIM admission

Market Cap at offer $404m David Avgi(CEO) 2.9% Sector Support Services

Current Market Cap $414m JP Morgan Asset management 6.3% Trading System SETSqx

Country of Lead Managers Shore Capital Henderson Global 5% British Virgin Islands incorporation Company profile Listing story

. Founded in 2006, SafeCharge has become . Safecharge’s initial plan was to raise one of Europe's leading clearing companies, USD100mln, but ended up raising 25% more with a focus on the gaming industry as well due to strong investor demand. as online trading companies within the FX . 2nd IPO of Teddy Sagi (Israeli billionaire) space (Forex, Binary Options). It provides who is also a majority owner of Playtech one payment services, risk management and IT of the world’s leading gaming software solutions to simplify online and mobile companies payments. . The company will use the proceeds for both . Between 2010 and 2013 the total value of organic and inorganic growth transactions processed by the Group on . Post-IPO ownership structure will se Teddy behalf of merchant clients increased from Sagi US$1.6bn to US$4.8bn. . Employs 200 people in: UK, Cyprus Bulgaria, Austria and Germany.

Source: FactSet, April 2014 24 Case Study: Just Eat

Company Details Transaction Details Company JUST EAT Admission Date 3 Apr 2014 Market HGS Money raised at £360m Sector Specialty Retailers admission

Trading System SETS Current Market Cap USD 2.9bn

Country of Goldman Sachs UK Lead Managers incorporation JP Morgan

Company profile Listing story

. Just-Eat.co.uk provides online takeaway . Just Eat is the first company to be admitted to ordering services to web surfers with some LSE’s High Growth Segment. restaurants they could choose from. . The company, which operates the world’s . The Company has a leading position in the largest online marketplace for restaurant majority of the 13 markets in which it delivery , raised £360 million at IPO, making operates, including the U.K., Denmark, it the largest internet company to float on France, Canada, Ireland and Spain. London Stock Exchange 2014YTD. . Since the first Just Eat website was . The Offering consisted in £100m primary launched in 2001, the company has grown offering together with secondary offering significantly, predominantly organically but tranche of between £70m and £200m. also via selected acquisitions and today . Selling Shareholders include SM Trust, Index partners with over 36,000 takeaway Ventures, Vitruvian Partners, Redpoint restaurants globally. Ventures and Greylock Partners. . The Company was founded in 2001 and is located in Borehamwood, United Kingdom.

Source: FactSet, April 2014 25 Price performance is intraday and refers to the IPO date Case Study: Circassia

Company Details Transaction Details Company Circassia Ltd Admission date: 18 Mar 2014 Market Main Market

Money raised at Sector Biotechnology £234m admission

Trading system SETS Market cap at USD 905mln Ticker CIR admission

Country of JP Morgan UK Lead Managers incorporation Peel Hunt

Company profile Listing story

. Circassia is a clinical-stage biopharmaceutical . The IPO was priced at 310p on 13th March – Top 3 Institutional Investors Value held £m company focused on the development and at the top of the 250-310p price range. Invesco Asset Management 210 commercialisation of a range of immunotherapy . The offering comprised 64m Ordinary products for the treatment of allergies. Odey Asset Management 71 Shares (raising gross proceeds of approx. Lansdowne Partners 40 . Circassia’s lead product, Cat-SPIRE (for the £200m) and 2.9m existing Ordinary Shares treatment of cat allergy), is in Phase III to be sold by the Selling Shareholders Key statistics development and a further three products have (raising secondary proceeds of approx. completed Phase IIb studies, as well as a £9m). Avg Daily Vol (Last 3M) 2,039,512.60 pipeline of earlier-stage programmes. . Free float (pre-greenshoe) of 34.4%. Market Value (£m) 591 . The company was founded by Steven Harris Entity Value (£m) 562 . The Company intends to use the net and Charles Swingland in 2006 and is Shares Out (m) 187 proceeds of the IPO to bring its lead product headquartered in Oxford, United Kingdom. Current Free Float 85.90% candidate to market and significantly advance the clinical development of its other Institutional ownership 54.50% three clinical stage product candidates.

Source: FactSet and Dealogic – March 2014 Page 26 Lessons Learned from Recent IPOs

Observation Comment

. In an increasingly crowded primary market calendar, early preparation is critical . Very hard to accelerate an IPO process, so early preparation enhances ultimate timing flexibility Prepare ahead . As activity increases, pressures / bottlenecks are likely to increase within advisory community – choosing the right advisers therefore increasingly important

. Buyside fund managers have been vocal in the past about wanting to meet management teams ahead of an IPO . This practice of “early look” engagement with a number of the key investors has been very valuable: Early Look . Feedback for the Company and owners at an early stage on the business model, the management team and likely valuation Investor parameters Engagement . Investors get an opportunity to build a rapport with management at this early stage, enhancing their likely participation at the IPO . Information at this stage can be carefully managed, such that management teams are not held to specific forecasts later at the time of the IPO

. In recent UK IPOs, participation from US investors (who are significantly underweight Europe still) has typically totalled 30-50% of gross Demand demand Patterns have . Appetite from retail both directly (spill-over from Royal Mail effect) and through intermediaries has been strong and merits real Shifted consideration, especially for consumer-oriented businesses . Important to consider complementary distribution platforms in IPO syndicates to tap all of these pockets

. We have seen transactions over the last 12 months across all sectors – quality businesses will be well received . Royal Mail and Merlin IPOs, as well as jumbo placings in Lloyds Bank, Direct Line, indicate capacity for significant sized transactions Appetite Broad . Particularly successful have been consumer-facing companies with strong brands (Countrywide, Foxtons, Conviviality / Bargain Booze) Based . Secondary components at IPO have been accepted, but the best performers (Countrywide, HellermanTyton, Stock Spirits, Foxtons) have seen further monetisations since IPO at substantially improved price levels

27 Legal disclaimer

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