Vbconférence CHILI

Home , Euronext, Euronext Amsterdam, Euronext Paris

“THE DEVELOPMENT OF STOCK EXCHANGES”

Santiago, Chile - June 26 & 27, 2008

1. The Consolidation Process of NYSE Euronext Step 1 – The Euronext Story Step 2 – the NYSE Euronext merger

2. Benefits of listing on NYSE Euronext

3. Focus: the European Platform: 1. Main benefits 2. NYSE Alternext :The SME Market

Conclusion

2 Step 1. The Euronext Story

• Creation of Euronext in 2000, from the merger of the three national stock exchanges: Amsterdam, Paris and Brussels • IPO in 2001 • Portuguese exchange and Liffe joined Euronext in 2002 • Key factors: • Demutualization of exchanges • The Euro-zone created in 2000 • Harmonization of regulations (the EU Directives) • And, first above all: Technology harmonization in order to maximize economy of scale “IT has no borders and makes trading easier, more efficient and less expensive”

4 An incontestable integration track record…

From 10 trading systems… …to 2, respecting domestic regulations

2001 2004 Amsterdam Brussels Liffe Liffe.Connect Amsterdam, Brussels, Lisbon London, Lisbon, Paris TRADING Paris Futures DERIVATIVES Paris Options

Amsterdam LCH.Clearnet NSC Independent Euroclear/Crest Amsterdam, Brussels, Brussels Clearing Independent Lisbon, Paris Custody & Settlement CASH CASH

TRADING Lisbon

Paris S.T.P

5 One holding company: one legal entity in each of the five jurisdictions

EURONEXT NV

Euronext Euronext Euronext Euronext Liffe Amsterdam Brussels Lisbon Paris London

CASH TRADING

Single Trading System: NSC

DERIVATIVES TRADING

Single Trading System: Liffe.Connect

6 A horizontal model with governance harmonization

• Each market undertaking receives a licence to operate markets from its national regulators (e.g. Euronext Paris exchange’s licensed by the French AMF, Euronext Amsterdam by the Dutch AFM…).

• The governance of the Holding Company is the same as the governance of each local market undertaking:

- In some cases: existence of a dual-body (Supervisory Board and Managing Board e.g. Euronex N.V., Euronext Amsterdam). - Everywhere (except for Liffe): a Managing Board which is identical, and composed of the 5 respective CEOs, chaired in each case by the local CEO (M. Theodore as CEO of Euronext N.V. and Euronext Paris, M. Joost van der does de Willebois as CEO of Euronext Amsterdam…)

7 Euronext regulators

CMVM AFM AMF P NL F

Euronext NV

Amsterdam Brussels Liffe Lisbon Paris

FSA CBFA GB B

* Euronext N.V. is also regulated by the Dutch Ministry of Finance, as the Holding Company of an Exchange operating a Dutch market

8 Euronext College of Regulators

Each Euronext market has a local regulator

All Euronext regulators are party to one MOU signed in March 2000 (and completed later) which facilitate the process and which inter alia covers:

Co-ordinated supervision of the Euronext group;

Co-ordination with regard to approval of rules and regulations (dedicated working groups, Steering and Chairman committees);

Regulators co-operation enhances harmonization in the context of the E.U. directives implementation.

9 Entry Point for Issuers: indifferent

Each company chooses his main entry point

Regulated Regulated Regulated Regulated market market market market under under under under Belgian Portuguese Dutch Law French Law Law Law

Each member chooses its main entry point

One single Euronext rule book (admission criteria for companies)

One single Euronext rule book 23(admission criteria for members)

10 The different Euronext cash markets

AmsterdamBrussels Lisbon Paris

Euronext Euronext Euronext Euronext Regulated markets

Alternext Alternext Alternext Non regulated Marché Libre Mercado markets Marché Libre Vrije markt Estrudurado

11 Euronext Rule Book

Contractual basis:

Admission agreement with Brokers

Written confirmation from Issuers to comply with Euronext Rule Book (or Listing agreement)

12 Step 2. The NYSE Euronext merger

• April 2007: combination of NYSE group and Euronext NV, teaming up the largest stock exchange in the world e.g., NYSE in US$ and the first pan- European exchange, Euronext in €;

• Creating a truly global market place;

• With, once more, advanced Trading Solutions to drive Software & Technology Services Revenue Growth: the Universal trading Platform (“UTP”)

14 With a Universal Trading Platform (target architecture) Legacy Trading Engines

ARCA NYSE Liffe TCS NSC Connect

The global platform will be Universal Trading Platform implemented in different data centers or instances, according to: - Regulatory specificities UTPUTP UTPUTP - Trading methods Cash Cash DerivativesCashCash - Products - Business initiatives

15 2. Benefits of listing on NYSE Euronext

Flexible Listing Venues Complement Capital Market Objectives

NYSE Euronext Strategic Relationships

Americas Europe Asia The world’s largest equity market Gateway to the Euro-zone

NYSE NYSE Arca Euronext Alternext Cash Equities Cash Equities Cash Equities Cash Equities Fixed Income Bonds DRs 5% equity stake Equity Options ETFs ETFs ETFs Liffe DRs Certificates Derivatives 5% equity stake DRs Warrants DRs

17 Value Proposition For Issuers Listing Venue Choice • Multiple entry points for issuers of any size and geography in Europe, U.S. and Asia • Listing options complement issuer’s strategy over time • Fast Path access to European platform for US listed companies (using SEC filings) Unique Global Visibility/Marketing • Unparalleled Brand Association • Superior service offerings • Superior peer alignment Broad Investor Pool • Global and local investor access to the world’s largest sources of capital • Investor outreach programs Enhanced Liquidity & Valuation • Access to $ and € – the world’s two leading currencies • Single Order Book • Product extensions (GDRs, ETFs, Options, Futures…) • Indices – international companies eligible for key indices (Shares & GDRs accepted) Sound Regulatory Framework • Simplified Processes and Reporting • Filings/Ongoing Obligations in English • European listings under EU regulatory regime, no Sarbanes Oxley

18 Vibrant NYSE/Latin American Partnership

The NYSE is the Destination for Latin American Companies Outside their Home Market

NYSE Nasdaq LSE

Number of Latin American Companies 88 6 2

Number of Latin American listings Since 2004 16 1 1

Number of Latin American IPOs Since 2004 10 1 1

Latin American IPO Proceeds Since 2004 More than $5 billion Less than $500 million $800 million

Average Daily Trading Value in Latin American Companies $4.7 billion $50 million $883,000

Source: Bloomberg; NYSE Research for Q1 2008 *2 UK incorporated, Latin American-based companies (Hochschild Mining, PLC, Antofogasta, PLC) not accounted for in this figure; Grupo Clarin (59,606 shares/day), Banco de Chile (0 shares/day) are the companies that have been included. 19 An NYSE Listing Boots Liquidity for Latin American Companies

C $8 000 000 000 Trading of Latin American NYSE listed companies $7 000 000 000

$6 000 000 000

$5 000 000 000

$4 000 000 000

$3 000 000 000

$2 000 000 000

$1 000 000 000

$0 2002 2003 2004 2005 2006 2007 Q1 2008

Average Daily Value NYSE Average Daily Value HOME MARKET

Over 67% of the trading in NYSE listed Latin American companies occurs in the U.S.

Source: NYSE Research Source: NYSE Research

20 A NYSE Listing Boosts Global Liquidity for Chilean Companies

NYSE listing for Chilean companies is a “win-win” – providing liquidity and a broader shareholder base C $160 000 000

$140 000 000

$120 000 000

$100 000 000

$80 000 000

$60 000 000

$40 000 000

$20 000 000

$0 2002 2003 2004 2005 2006 2007 Q1 2008

Average Daily Value NYSE Average Daily Value HOME MARKET

Source: NYSE Research Source: NYSE Research

21 3.NYSE Euronext: Focus on the European Platform

Euronext NV

100% 100% 100% 100% 100%

AMSTERDAM BRUSSELS LISBON PARIS LONDON (Liffe)

23 A leading Marketplace For Listings

• Multiple entry points for issuers of any size and geography in Europe and the U.S. • Access to the €uro-zone • IFRS accounting standards recognized by the SEC • While, acceptance of Canadian GAAP, Japanese GAAP & US GAAP by E.U regulators; • Innovative “Fast Path Listing” gaining traction, with several NYSE-listed companies choosing to cross list on Euronext: – Anheuser-Busch – Philip Morris International – Satyam Computer Services (India) • The Universal Trading Platform project (U.T.P)

24 Euronext’s Competitive Position in Europe

MARKET CAPITALISATION TRADING VOLUMES (2007)

European cash equity market capitalisation (end 2007) 3,500 180

160 Borsa Italiana 3,000 7% 140 OMX Euronext 2,500 8% 120 27% SWX 2,000 100 8% 1,500 80

60 Million trades Spanish Exchanges 1,000 Value traded € bilion 11% 40 500 20 Deutsche Börse London Stock 0 0 14% Exchange Euronext London Deutsche Spanish Borsa OMX SWX 25% Stock Börse Exchanges Italiana Group Exchange

• Largest equity market in Europe Turnover Trades • Largest trading platform in Europe

Source: Federation of European Securities Exchanges (FESE) Figures include domestic & primary international listings

25 Sector Comparison Euronext vs. LSE

• Euronext sector profile very similar to London Stock Exchange • Euronext – larger in Technology, Consumer Goods, Utilities, Industrials

Euronext London Stock Exchange

Utilities Basic Materials 10% 12% 5% Consumer Goods 6% 4% 14% Basic Materials 1% Technology 4% Consumer Goods 3% Consumer Services Oil & Gas 10% Financials 16% Health Care 9% 15% Industrials Oil & Gas 11% Technology 7% Telecommunications Utilities Industrials 24% 6% 12% 4% Financials 26%

Total market cap = €2,982 billion Total market cap = €2,769 billion

Source: Bloomberg, Euronext & LSE data as December 2007. ICB classification, domestic & primary listings, includes main market, SME market, equity investment instruments.

26 Listing Requirements - Summary

Euronext Alternext

Public Offer Private Placement

Track record 3 years 2 years 2 years

IFRS compulsory or US, Accounting rules IFRS or home country GAAP Canadian or Japanese ( US, Canadian, Japanese…) GAAP Minimum free float 25% or 5% if shares in public €2.5m €5m > €5m Prospectus approved Documentation Offering by the home country regulator Prospectus circular (visa) (visa)

Compulsory advisor Listing Agent (Euronext Listing Sponsor member) Language English authorized

27 NYSE Alternext: the SME Market

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 Euronext and Alternext • Alternext today: Number listed companies……………….. 120 Total market capitalisation………………. € 5 billion Average deal size………………………… € 9.4m Deal size range…………………………… € 2.6m to € 34m

29 Alternext – Key Listing Requirements

2 year company track record (exemption for funds) IFRS or US GAAP • Audited FY accounts, un-audited 6 months report Choice of Market Access: Public offering Private placement Access to retail and/or qualified investors Access to qualified investors only Minimum free float: € 2.5m Minimum placing: € 5m

Prospectus cleared by regulator Offering circular Not cleared by regulator; disclosures under responsibility of the Listing EU Prospectus Directive Sponsor & Issuer

• Fast track dual listing through recognised market status • Access via offering circular for companies listed on another market

Use of Listing Sponsor mandatory

30 Alternext – size profile

Distribution of companies by market capitalisation Alternext

35% 30% 25% 20% Alternext’s target 15% company size of 10% 5% €20m - €250m 0% 0 - 2 2 - 5 5 - 10 10 - 25 25 - 50 50 - 100 100 - 250 250 - 500 500+ achieved. € m

Distribution of companies by market capitalisation No micro-caps… AIM …better liquidity 25%

20%

15%

10%

0% 0 - 2 2 - 5 5 - 10 10 - 25 25 - 50 50 - 100 100 - 250 250 - 500 500+ € m

Source: Euronext, LSE, December 2007

31 Alternext: IPOs and Investor Base

Alternext: Truly Pan-European

Origin of institutions (as of October 2007) IPOs:

Canada • 80% institutional investor 1% Australia U.S. participation, underpinning 1% U.K. 2% valuations 13% Switzerland 4% Sweden 2% Investors: Spain 2% Euronext zone • Institutions from 14 countries Luxembourg 58% 5% • Broad continental European Germany 9% institutional take-up Denmark Austria 2% 1% • Strong US-UK acceptance

Source: Lionshares

32 Conclusion…

1. A Unified Technology Platform • Next step : a Universal Trading Platform (UTP) for both regions (US/EU) and both cash and derivatives • Combined with the creation of well targeted MTF’s (Smartpool, High Frequency Trading …)

2. Harmonization of Exchanges Listing venues between the consolidated Exchanges (rule book)

3. Sound regulatory framework common to the various jurisdictions (E.U. Directives/ Corporate governance) • An on going effort aiming at simplifying listing process and on going reporting obligations (ex/ Mutual recognition process)

34 Conclusion … Do allow attraction for Issuers and Investors given:

• Access at once to multi-markets in various countries (e.g.7 markets in 6 countries for NYSE Euronext) in a simplified and less costly way, • Provides Liquidity enhancement, • Creates a broader Investors Pool and,……but not least, • Reduces costs due to the unified technology platform and simplification of listing venues and ongoing obligations So that …

35 NYSE Euronext ‘s strategy may be defined as follows:

ContinueContinue to to build build the the most most global global and and technologically technologically advancedadvanced marketplace marketplace forfor the the benefit benefit of of our our customers customers and and shareholdersshareholders

MaintainMaintain a a steadfast steadfast commitment commitment to to our our customers customers and and maximizemaximize choice choice forfor issuers issuers and and users users on on a a global global scale scale

UtilizeUtilize best best in in class class technology technology and and business business pract practicesices to to deliverdeliver significant significant operating operating leverage leverage andand superior superior financial financial resultsresults

36 NYSE Euronext