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Transcript of November 17 th 2006 Invest in Greece Spyros Capralos Invest in Greece Spyros Capralos Athens...
November 17th 2006
Invest in GreeceInvest in Greece
Spyros CapralosSpyros Capralos
Athens Exchange
Chairman & CEO
88thth Annual Capital Link Forum Annual Capital Link Forum
2
The Greek Economy
Greece
Reduction of corporate taxes2004: 35%35% 2006: 29%29%, 2007: 25%25%
Reduction of the stock sales tax from 30 b.p.30 b.p. to 15 b.p.15 b.p.Gov’t might reduce further to 10-12 b.p.10-12 b.p.
Privatizations
2006:2006: IPO of the Greek Postal Savings Bank
2006:2006: Full privatization of the Commercial Bank of GreeceBuyer: Crédit Agricole
2006:2006: €3 bn capital increase by NBGProved that large amounts of capital can be raised in ATHEX
2007:2007: €1.7 bn privatization revenues for the gov’t (included in the budget)
3
Greek Business
Greece
Merger activity is picking up
Vivartia (Delta + Goody’s + General Foods + Chipita)
Marfin, Egnatia & Laiki Bank merger
Private Equity Fund is trying to take Hyatt private
Increased M&A activity in the health sector
Increase in private placements increase in free float of the market
4
HELEX Restructuring
Corporate Operations
Financial MarketsClearing, Settlement &
Registry
HELEX Group
Merger of subsidiaries Simplified Group structure
2002:2002: ASE + ADEX = ATHEX
2005:2005: HELEX + ASYK = HELEX
2006:2006: HELEX + CSD + ADECH = HELEX(to be completed by the end of 11.2006)
Unified Group organizational structure
5
ATHEX Rulebook
Elimination of odd lots; lot size = 1
Payment of dividends by the Central Securities Depository directly to the investors’ trading accounts
Calculation of the closing prices using the call auction method
Resolution of listed company shareholder registry issues
Removing the barriers to the entry of remote members
ATHEX now has 9 remote members, all from Cyprus
Extended trading hours
Relaxation of listing requirements for shipping companies
6
International Investors in ATHEX
27,8%
37,0%39,4%
44,5%
50,7%
42,2%
25%
40%
55%
2001 2002 2003 2004 2005 2006Oct
18,4% 20,0% 21,8%
31,1%
41,3%
15%
30%
45%
2002 2003 2004 2005 2006Oct
I nternational vs. Retail I nvestor Participation in ATHEX
28,7%31,3%
36,5%40,3%
44,6%
32,1%29,7% 30,6%
26,9%24,5% 23,0%23,9%
20%
25%
30%
35%
40%
45%
2001 2002 2003 2004 2005 2006 Oct
International Investors
Local Retail Investors
Figures refer to percentage of the Market Capitalization. 2001-2005 Data refer to December 31 st of each year.
Market is becoming more “Institutional” and more “International”.
Participation of international investors in theFTSE/ATHEX 20 & FTSE/ATHEX 40
7
Capital Inflows in ATHEX
Net Capital Inflow in ATHEX from Ιnternational Investors (€ mln)
5.200
3.700
0
1.000
2.000
3.000
4.000
5.000
2005 2006 (10 months)
8
Challenges Consolidation of Exchanges
+ tie-up
- merger?
+ merger
Trading Platform creation by 7 major banks (2008)
9
Challenges Transparency – Cost of Trading
Fee Structure ChangesFee Structure ChangesFee Structure ChangesFee Structure Changes
Need forcompetitiveness
MiFID +MiFID +Code of Code of ConductConduct
Need for Need for Turnover Turnover VelocityVelocity
Reduction Reduction of Market of Market
Risk for the Risk for the GroupGroup
TransparencyTransparency
10
ATHEX-CSE Common Platform
Common Trading & Clearing Platform (live since October 30th, 2006)
Remote Membership
Single entry point for Investors
Shares in both markets traded in Euros
Common trading hours for both markets
Harmonization of the regulatory framework
Paves the way for similar agreements in the region
11
New Developments
ETFs
Liberalization of Short Selling & Stock Lending
Changes in Derivatives’ Market
Creation of new Semi-regulated market
Change of Corporate Law Legislation (already drafted)
Record Date - Proxy Voting for Shareholders’ Participation
12
Market Statistics
141
210
340
50
125
200
275
350
2004 2005 2006 Nov
ATHEX Average Daily Value of Trading
(€ ml.)
2.000
3.000
4.000
5.000
1/1/
04
1/4/
04
1/7/
04
1/10
/ 04
1/1/
05
1/4/
05
1/7/
05
1/10
/ 05
1/1/
06
1/4/
06
1/7/
06
1/10
/ 06
+23%
+32%
+17%
ATHEX ATHEX General General Index Index
November 17th 2006
Thank you!Thank you!
Invest in GreeceInvest in Greece
Spyros CapralosSpyros Capralos
Chairman – Athens Exchange
CEO – Hellenic Exchanges
88thth Annual Capital Link Forum Annual Capital Link Forum