Equity Primary Markets and Trading Report

Transcription

1 Equity Primary Markets and Trading Report European market data update Q: 6 Association for Financial Markets in Europe

2 Table of Contents Table of Contents Highlights... 3 European Equity activity (EU 8 member countries and Switzerland)... 3 Detailed findings and commentary... 4 Equity trading on European venues in the run-up and aftermath of the UK referendum (Index: 3-Jul = )... Major upcoming regulatory, legislative and policy initiatives... Issuance Equity underwriting ( bn) IPOs ( bn) Follow-on offerings ( bn) Convertible securities ( bn) IPO proceeds by country of exchange: Q6 ( mn) Number of IPOs by country of exchange: Q IPOs by nationality of issuer: Q6 ( mn) Number of IPOs by nationality of issuer: Q IPOs by industry of issuer: Q6 ( mn) Number of IPOs by industry: Q Median difference between offer price and -Day closing price of IPOs (%) Overallotment as proportion of quarterly IPO proceeds IPOs by proportion of exercised overallotment ( bn) Average proceeds per IPO ( mn) IPOs by value of proceeds Number of IPOs by market value of issuing firm (pre-deal market value) Median market value of IPO issuing firms ( mn, pre-deal market value) IPOs by listing venue ( mn) Number of IPOs by listing venue... Mergers and Acquisitions.... Completed M&A by acquiring party: full-year and H.... Completed M&A by acquiring party: quarterly....3 Completed M&A by type of deal: full-year and H....4 Completed M&A by acquiring party: quarterly.... Deal value of completed European M&A deals ( bn)....6 Completed M&A by type of deal: annual and selected quarters....7 Completed M&A by type of deal: quarterly....8 Completed strategic M&A....9 Completed add-on M&A.... Sponsor M&A.... Average value of completed M&A.... Announced M&A Withdrawn M&A Average days to complete Completed M&A by nationality of target firm (selected countries) Completed M&A by nationality of acquirer (selected countries) Completed M&A by industry of target firm Completed intra-european M&A transactions by size of deal ( bn) Completed intra-european M&A transactions by location of acquiring and target company (Q6, mn)... 3 Outstanding and trading Domestic market capitalisation of listed shares ( Tn) Value of euro-denominated listed shares issued by euro area residents ( Tn) Number of listed companies in Europe Domestic market capitalisation of listed shares relative to GDP (%) Turnover ratio of European shares: Dark and Lit (Annualised turnover value/market capitalisation) Quarterly turnover on European Exchanges and MTFs ( tn) Dark trading relative to total turnover on Exchanges and MTFs (%) Dark trading of indexed shares as proportion of total turnover (dark and lit)- selected indices Monthly turnover value on European exchanges and MTFs ( bn) Daily turnover value on European exchanges and MTFs ( bn) Valuation indices and ratios Price indices of selected stock exchanges (Sep 7 = ) Price per earnings ratio (PE ratio) of shares listed on selected exchanges Price-to-book ratio of Stoxx 6 constituent shares and EU average Dividend payout ratio of shares listed on selected exchanges (Dividends/Earnings per share) Dividend yield ratio of shares listed on selected exchanges (Dividend/Price) Implied volatility of Euro Stoxx constituent shares (VSTOXX)... 8 Summary of the Methodologies Adopted for this Report... 9 Annex... 3 Page

3 Highlights Highlights Updated statistics on equity primary markets and trading in Europe (EU 8 member countries and Switzerland) Main findings: Equity underwriting on European exchanges accumulated in Q 6 a total of.7 bn in proceeds, an increase of 76% from the value originated in Q 6 ( 8.7 bn) and a decrease of 8% from the value of Q ( 6. bn). Equity underwriting encompasses Initial Public Offerings (IPOs), convertible securities and follow-on offerings. Mergers and Acquisitions (M&A) between European companies totalled.8 bn in Q 6, a decrease of 68% from the value observed in Q 6 ( 64.7 bn) and a decrease of.% from the volume of Q ( 3.9 bn). Equity trading activity on European main markets and MTFs accumulated in Q 6 a total of 3. tn in turnover value, a decrease of 8.9% from the value traded in Q 6 ( 3.33 tn) and a decrease of 9.% from the value traded in Q ( 3.33 tn). Market capitalisation of European shares stood at. tn at the end of Q 6, a decrease of.8% from the value observed in March 6 (.4 tn) and a cumulative decrease of.% from the market capitalisation in June (.4 tn). European Equity activity (EU 8 member countries and Switzerland) Q 6 Q 6 Q Q 3Q 4Q FY % Change Q6 YtD % Change Q6 QoQ Equity underwriting ( bn) % 76.7% IPOs %.9% Follow-on offerings % 93.% Convertible securities % -.7% Mergers and Acquisitions ( bn) % -4.% European firms acquiring non-european firms % 79.4% Non-European firms acquiring European firms % 8.7% Intra European deals % -68.% Equity turnover value ( tn) % -8.9% Main Markets % -8.6% MTFs % -9.3% Market Capitalisation of domestic listed shares ( tn) European (EU8 and Switzerland) % -.8% EU % -.3% Euro Zone % -.6%, Bats Chi-X, FESE, World Federation of Exchanges, LSEG, ECB, NASDAQ Nordic, Bucharest Stock Exchange and CEESEG - Prague Underwriting and M&A data retrieved for this report on 3 July 6 Completed M&A between European firms as acquiring and target companies Percentage changes differ due to rounding. Page 3

4 Detailed findings and commentary Detailed findings and commentary In Q 6, equity underwriting on European exchanges accumulated a total of.7 bn, an increase of 76.7% from the value originated in Q 6 ( 8.7 bn). Detailed findings Issuance: equity underwriting and IPOs Equity underwriting on European exchanges recovered in Q 6, after the temporary market volatility in Q 6 which may have contributed to the slowdown in last quarter s origination. Equity issuance grew in Q 6 by 76.7% quarter-on-quarter (QoQ), accumulating, however, a year-to-date (YtD) decrease of 4.4% compared to the first half of. Q6 equity underwriting was led by follow-on offerings with 33.6 bn in capital raising, followed by IPOs (.4 bn) and convertible securities (.7 bn). By exchanges, IPO activity in Q 6 was led by listings on NASDAQ OMX Copenhagen, although with only one deal of a large-cap company 3 raising a total of.6 bn. London exchanges 4 led by number of new listings with deals, followed by NASDAQ OMX- Stockholm (9 deals) and Euronext-Paris 6 (8 deals). By industries, Utility & Energy companies led IPO activity in Q 6, with.6 bn in proceeds during the quarter ( deals). Finance companies stood second in IPO activity with.9 bn in proceeds ( deals). Computers & Electronics and Finance industries led by number of deals, with new listed companies in both sectors. Mergers and Acquisitions (M&A) in Europe In Q 6, a total of,373 M&A deals were completed where either the target or the acquiring company were located in Europe. The volume represented a total of bn in deal value 7, a decrease of 4% from a quarter ago ( 77.6 bn) but an increase of.9% YtD. Intra-European M&A activity Completed M&A deals between European firms (as target and acquiring companies) accumulated.8 bn in deal value in Q 6, a significant decrease from the deal volume in Q 6 ( 64.7 bn). The decrease was particularly marked in high-value deals (deal value above m), from 36 completed deals in Q 6 to deals in Q 6. A total of. bn of new M&A deals between European firms were announced in Q 6, an increase of % from the value announced during Q 6 ( 8.6 bn), accumulating, however, a 8% YtD decrease from the value announced in H. 3 Utility & Energy company Dong Energy A/S. The value includes the exercise of the overallotment option. 4 LSE main market and AIM. See further detail in table.9. Includes main market and First North. See further detail in table.9. 6 Main market and Alternext. See further detail in table.9. 7 Including debt. Page 4

5 6-Jun 7-Jun -Jun -Jun -Jun 3-Jun 4-Jun 7-Jun 8-Jun 9-Jun 3-Jun -Jul 4-Jul -Jul 6-Jul 7-Jul 8-Jul European equity trading Daily equity turnover on European venues increased by. times in the immediate aftermath of the UK referendum result. Equity trading on European venues in the run-up and aftermath of the UK referendum (Index: 3-Jul = ) 3 3 Dark Lit A total of 8 bn in equity shares were traded on European venues during 4 June, comparable with bn in 3 June. By type of order book, dark trading increased by 3. times, compared with a.4 times increase in Lit trading (see chart in the left panel). Notwithstanding the temporary increase in equity trading activity in the immediate aftermath of the UK referendum, total Q 6 turnover volume on European venues decreased by 8.9% QoQ from 3.3 tn in Q 6 to 3. tn in Q 6. Source: BATS Chi-X Valuations Most of equity valuations of companies listed on European exchanges fell during Q 6. CAC 4 French shares index accumulated losses of 3.4% QoQ during Q 6; the Spanish composite IBEX 3 dropped 6.4% QoQ; DAX 3 fell.9% QoQ; while the FTSE reported a quarterly increase of.3%. Major upcoming regulatory, legislative and policy initiatives Daily equity turnover on European venues increased by. times in the immediate aftermath of the UK referendum result There several regulatory initiatives that are currently being considered at the European and national level with expected impact on the equities trading and capital markets performance. Some of the key initiatives currently being developed are: MiFID II/R Market Abuse Directive/Regulation (MAD/MAR) FCA s Wholesale competition review Basel III CSDR Prospectus Regulation AFME and its members are actively contributing on all of these and other initiatives. Page

6 Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Issuance Issuance Equity instruments issuance on European exchanges. Equity underwriting ( bn). IPOs ( bn) Convertible securities IPOs Follow-ons H 3 H 3 Deal Value (EUR bn) # Deals (Right) Follow-on offerings ( bn).4 Convertible securities ( bn) Deal Value (EUR bn) # Deals (Right) Deal Value (EUR bn) # Deals (Right) 3 3. IPO proceeds by country of exchange: Q6 ( mn) 9 Denmark Netherlands Spain United Kingdom Sweden France Czech Republic Switzerland Italy Finland Ireland Poland Belgium Germany Estonia,34., ,646.7, Number of IPOs by country of exchange: Q6 United Kingdom Sweden France Poland Italy Netherlands Finland Spain Germany Switzerland Estonia Belgium Ireland Czech Republic Denmark Excludes introductions and re-admissions. 9 Multiple exchanges relate to dual listings Multiple exchanges relate to dual listings Page 6

7 Q Q 3Q 4Q Q Q 3Q 4Q Q Q 3Q 4Q Q 3 Q 3 3Q 3 4Q 3 Q 4 Q 4 3Q 4 4Q 4 Q Q 3Q 4Q Q 6 Q 6 Q 4Q Q 6 4Q 6 Q 7 4Q 7 Q 8 4Q 8 Q 9 4Q 9 Q 4Q Q 4Q Q 4Q Q 3 4Q 3 Q 4 4Q 4 Q 4Q Q 6 Issuance.7 IPOs by nationality of issuer: Q6 ( mn) Denmark Netherlands Spain United Kingdom Sweden Switzerland Czech Republic France Italy Finland Poland Belgium Estonia Luxembourg Malaysia China Philippines Singapore,34., ,683., Number of IPOs by nationality of issuer: Q6 United Kingdom Sweden Poland Italy France Switzerland Netherlands Denmark Finland Spain Singapore Philippines China Malaysia Luxembourg Estonia Belgium Czech Republic IPOs by industry of issuer: Q6 ( mn). Number of IPOs by industry: Q6 Utility & Energy Finance Consumer Products Insurance Leisure & Recreation Retail Metal & Steel Dining & Lodging Real Estate/Property Construction/Buildi Professional Services Computers & Healthcare Auto/Truck Machinery Publishing Forestry & Paper Food & Beverage Oil & Gas Chemicals Defense Aerospace Telecommunications Mining,49.4,7.9, ,88.,6.8,, 3,. Median difference between offer price and -Day closing price of IPOs (%) % % % % % 3th-7th percentile Median Computers & Electronics Finance Healthcare Construction/Building Real Estate/Property Auto/Truck Professional Services Retail Telecommunications Chemicals Food & Beverage Machinery Dining & Lodging Leisure & Recreation Consumer Products Utility & Energy Mining Aerospace Defense Oil & Gas Forestry & Paper Publishing Metal & Steel Insurance Overallotment as proportion of quarterly IPO proceeds % 9% 8% 7% 6% % 4% 3% % % % % -% Page 7

8 Q 4Q Q 6 4Q 6 Q 7 4Q 7 Q 8 4Q 8 Q 9 4Q 9 Q 4Q Q 4Q Q 4Q Q 3 4Q 3 Q 4 4Q 4 Q 4Q Q 6 Q Q Q Q 3 Q 4 Q Q 6 Q 7 Q 8 Q 9 Q Q Q Q 3 Q 4 Q Q 6 Issuance.3 IPOs by proportion of exercised overallotment ( bn) Average proceeds per IPO ( mn) 3 %.%-%.%-%.%-% >%. IPOs by value of proceeds Value of Proceeds ( bn) Q 6 Q 6 Q Q 3Q 4Q FY 4 FY <m m, < m m, < bn bn Total Number of Deals Q 6 Q 6 Q Q 3Q 4Q FY 4 FY <m m, < m m, < bn bn 4 3 Total Number of IPOs by market value of issuing firm (pre-deal market value) Number of Deals Q 6 Q 6 Q Q 3Q 4Q FY 4 FY <m m, < bn bn Undisclosed 4 Total Median market value of IPO issuing firms ( mn, pre-deal market value) Page 8

9 Issuance.8 IPOs by listing venue ( mn) Venue Q 6 Q 6 Q Q 3Q 4Q 4 Athens Stock Exchange 3 BME: Barcelona, Bilbao, Madrid & Valencia 4 BME: Madrid,34 4,79 3,68 8,337 4,39 BME: Mercado Alternativo Bursatil (MaB) Borsa Italiana (AIM Italia) Borsa Italiana (Main Market) 4,7 37 3,,9,6 Borse Munchen Bucharest Stock Exchange & LSE 444 Budapest Stock Exchange 3 Bulgarian Stock Exchange 6 6 Deutsche Borse (Frankfurt Entry) 9 9,4 Deutsche Borse (Frankfurt General) 6 Deutsche Borse (Frankfurt General) & Warsaw Stock Exchange Deutsche Borse (Frankfurt Prime & Hamburg) 6 6 Deutsche Borse (Frankfurt Prime) ,63,698 6,76,8 Deutsche Borse (Frankfurt Prime) & Luxembourg 43 Euronext Alternext Brussels & Paris 7 7 Euronext Alternext Paris Euronext Amsterdam,399, ,39 6,7,99 Euronext Amsterdam & Brussels Euronext Amsterdam, Brussels & Paris 84 Euronext Brussels Euronext Brussels & Paris Euronext Lisbon 4 Euronext Paris 7 96,9 4,898,7 3, ICAP Securities & Derivatives Exchange Ltd Irish Stock Exchange (ISE) 3 3 Irish Stock Exchange (ISE) & Euronext Paris 9 London AIM ,34 London AIM & Irish Stock Exchange (ISE) LSE,79 397,7 4, ,6 6,74,68 LSE & Cairo LSE & Johannesburg 3 3 LSE & Moscow Interbank Currency Exchange (MICEX) 7 LSE & Nigerian Stock Exchange 39 Nasdaq OMX - Copenhagen 48, ,68 Nasdaq OMX - Helsinki Nasdaq OMX - Stockholm ,49,93 4,99,98 NASDAQ OMX First North - Finland NASDAQ OMX First North - Finland & Stockholm 4 4 NASDAQ OMX First North - Stockholm NASDAQ OMX Tallinn 4 Prague Stock Exchange 739 Prague Stock Exchange & Warsaw Stock Exchange 8 8 Prague Stock Exchange & Wiener Borse 3 SIX Swiss Exchange 7,48 69,37,47 Stockholm - Aktie Torget Warsaw Stock Exchange Warsaw Stock Exchange - NewConnect 3 4 Wiener Borse 94 Zagreb Stock Exchange 6 6 Grand Total 3,683,4 8,69,899 4,8,699 6,473 49,86 Multiple exchanges relate to dual listings Page 9

10 .9 Number of IPOs by listing venue Issuance Q 6 Q 6 Q Q 3Q 4Q 4 Athens Stock Exchange BME: Barcelona, Bilbao, Madrid & Valencia BME: Madrid BME: Mercado Alternativo Bursatil (MaB) Borsa Italiana (AIM Italia) Borsa Italiana (Main Market) 3 9 Borse Muchen Bucharest Stock Exchange & LSE Budapest Stock Exchange Bulgarian Stock Exchange Deutsche Borse (Frankfurt Entry) Deutsche Borse (Frankfurt General) Deutsche Borse (Frankfurt General) & Warsaw Stock Exchange Deutsche Borse (Frankfurt Prime & Hamburg) Deutsche Borse (Frankfurt Prime) Deutsche Borse (Frankfurt Prime) & Luxembourg Euronext Alternext Brussels & Paris Euronext Alternext Paris Euronext Amsterdam Euronext Amsterdam & Brussels Euronext Amsterdam, Brussels & Paris Euronext Brussels 3 4 Euronext Brussels & Paris Euronext Lisbon Euronext Paris ICAP Securities & Derivatives Exchange Ltd Irish Stock Exchange (ISE) Irish Stock Exchange (ISE) & Euronext Paris London AIM London AIM & Irish Stock Exchange (ISE) LSE LSE & Cairo LSE & Johannesburg LSE & Moscow Interbank Currency Exchange (MICEX) LSE & Nigerian Stock Exchange Nasdaq OMX - Copenhagen Nasdaq OMX - Helsinki Nasdaq OMX - Stockholm NASDAQ OMX First North - Finland 3 6 NASDAQ OMX First North - Finland & Stockholm NASDAQ OMX First North - Stockholm NASDAQ OMX Tallinn Prague Stock Exchange Prague Stock Exchange & Warsaw Stock Exchange Prague Stock Exchange & Wiener Borse SIX Swiss Exchange 6 Stockholm - Aktie Torget Warsaw Stock Exchange 3 Warsaw Stock Exchange - NewConnect 4 7 Wiener Borse Zagreb Stock Exchange Grand Total Multiple exchanges relate to dual listings Page

11 Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Mergers and Acquisitions Mergers and Acquisitions Deals where the target or the acquiring company is located in Europe BILLIONS. Completed M&A by acquiring party: full-year and H 3,, Non-European acquires European European acquires non-european Intra European deals Completed M&A by acquiring party: quarterly 3 Non-European acquires European European acquires non-european Intra European deals H H.3 Completed M&A by type of deal: fullyear and H 4.4 Completed M&A by acquiring party: quarterly,, 8 4 Add-on Sponsor Strategic 3 Add-on Sponsor Strategic H H. Deal value of completed European M&A deals ( bn) Q 6 Q 6 Q Q Q3 Q4 4 QoQ growth (%) YTD growth (%) Strategic %.% Sponsor % -.6% Add-on % -.% TOTAL %.9% European firms acquiring non-european firms % 67.% Non-European firms acquiring European firms %.7% Intra Europe deals % -3.4% TOTAL %.9% 3 Sponsor deals refer to M&A deals where the acquirer or the seller company is a private equity firm. Add-on transactions are deals where acquirer or the seller company is a portfolio company of a private equity firm. Strategic deals are between two non private equity firms. 4 Intra-European deals refer to completed deals where both the acquiring and target companies are located in Europe. Non-European acquires European are deals where a company located outside Europe acquires a company located in Europe. European acquires non-european firm are M&A completed transactions where the acquiring party is European and the target company is located outside Europe Page

12 Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Q Q Q 3 Q 4 Q Q 6 Q 7 Q 8 Q 9 Q Q Q Q 3 Q 4 Q Q 6 Q Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Mergers and Acquisitions Intra-European deals (target and acquiring companies located in Europe) BILLIONS.6 Completed M&A by type of deal: annual and selected quarters.7 Completed M&A by type of deal: quarterly Add-on Sponsor 3 Strategic Add-on Sponsor Strategic H H.8 Completed strategic M&A.9 Completed add-on M&A Deal value ( bn) Number of deals (right),,,, Deal value ( bn) Number of deals (right) Sponsor M&A. Average value of completed M&A 4 3 Deal value ( bn) Number of deals (right) Sponsor deals refer to M&A deals where the acquirer or the seller company is a private equity firm. Add-on transactions are deals where acquirer or the seller company is a portfolio company of a private equity firm. Strategic deals are between two non private equity firms. 6 Sponsor deals refer to M&A deals where the acquirer or the seller company is a private equity firm. Add-on transactions are deals where acquirer or the seller company is a portfolio company of a private equity firm. Strategic deals are between two non private equity firms. Page

13 Q Q Q3 Q4 Q Q Q3 Q4 Q Q Q3 Q4 3 Q 3 Q 3 Q3 3 Q4 4 Q 4 Q 4 Q3 4 Q4 Q Q Q3 Q4 6 Q 6 Q Mergers and Acquisitions BILLIONS. Announced M&A 7.3 Withdrawn M&A 8,6 Withdrawn volume ( bn),4,34,67 Number of Deals (right),, H H,4,, Average days to complete. Completed M&A by nationality of target firm (selected countries) H 6 United Kingdom Italy France Spain Germany Sweden Switzerland Czech Republic Finland Poland Ireland Belgium Lithuania Portugal Q 6 Q 3.6 Completed M&A by nationality of acquirer (selected countries) United Kingdom France Italy Sweden Germany Switzerland Spain Finland Poland Belgium Ireland Czech Republic Austria Lithuania Luxembourg Netherlands Q 6 Q Completed M&A by industry of target firm Real Estate / Property Telecommunications Finance Utility & Energy Computers & Electronics Professional Services Construction / Building Healthcare Insurance Auto / Truck Consumer Products Aerospace Retail Chemicals Machinery Dining & Lodging Mining Transportation Food & Beverage Q 6 Q Announced deals include completed, pending completion or partially completed transactions. Values are presented at date of announcement. 8 Bids which were officially announced and subsequently withdrawn, not pursued, rejected or expired. Page 3

14 Mergers and Acquisitions.8 Completed intra-european M&A transactions by size of deal ( bn) Value of deals ( bn) Number of deals Q 6 Q 6 Q Q Q3 Q4 Q 6 Q 6 Q Q Q3 Q4 > bn m to bn m to m m to m m to m m to m m to m < m ,398 Undisclosed ,478,,77,4,3,84,47 Total ,,736,438,7,99,89 8,377 Page 4

15 Acquiror Nationality Mergers and Acquisitions.9 Completed intra-european M&A transactions by location of acquiring and target company (Q6, mn) Target Nationality AT BE BG CR CY CZ DK EE FI FR DE HU IE IT LV LI LU MT NL PL PT RO SK SL ES SW CH UK Total Austria Belgium Bulgaria.. Croatia.. Cyprus Czech Republic Denmark Estonia Finland ,.9 France , ,684.6 Germany , ,34.3 Hungary Ireland Italy , ,77. Latvia Lithuania Luxembourg Malta.. Netherlands Poland Portugal. Romania Slovak Republic Slovenia.3.3 Spain ,686. 3,. Sw eden, , ,47. Sw itzerland , ,3. United Kingdom ,37.8 6,4. Total , ,74.3 6,. 4, , ,48.8 3,37., ,47.,8. Page

16 Q 9 4Q 9 Q 4Q Q 4Q Q 4Q Q 3 4Q 3 Q 4 4Q 4 Q 4Q Q 6 4Q 9 Q Q 3Q 4Q Q Q 3Q 4Q Q Q 3Q 4Q Q 3 Q 3 3Q 3 4Q 3 Q 4 Q 4 3Q 4 4Q 4 Q Q 3Q 4Q Q 6 Q 6 Dec- Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar- Jun- Sep- Dec- Mar-6 Jun-6 6Q 7Q 8Q 9Q Q Q Q 3Q 4Q Q 6Q Jun- Jun- Jun- Jun-3 Jun-4 Jun- Jun-6 Jun-7 Jun-8 Jun-9 Jun- Jun- Jun- Jun-3 Jun-4 Jun- Jun-6 May- May- May-3 May-4 May- May-6 May-7 May-8 May-9 May- May- May- May-3 May-4 May- May-6 Outstanding and trading 3 Outstanding and trading 3. Domestic market capitalisation of listed shares ( Tn) Euro area EU 8 Europe 3. Value of euro-denominated listed shares issued by euro area residents ( Tn) Financial NFCs Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, World Federation of Exchanges, Bucharest Stock Exchange and CEESEG Prague Source: ECB 3.3 Number of listed companies in Europe 3.4 Domestic market capitalisation of listed shares relative to GDP (%) 9,,4,3,,,,9 % 9% 8% 7% 6% % 4% 3% % % % EU 8 Euro Area (EU 9) Europe Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange and CEESEG Prague 3. Turnover ratio of European shares: Dark and Lit (Annualised turnover value/market capitalisation) 8% 6% 4% % % 8% 6% 4% % % Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange, CEESEG Prague, Swiss Federal Statistical Office and Eurostat 3.6 Quarterly turnover on European Exchanges and MTFs ( tn) Dark Lit Source: BATS CHI-X, ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange and CEESEG - Prague Source: BATS CHI-X 9 GDP available only as of Q6. Europe refers to EU8 member states and Switzerland. Page 6

17 Jun-9 Dec-9 Jun- Dec- Jun- Dec- Jun- Dec- Jun-3 Dec-3 Jun-4 Dec-4 Jun- Dec- Jun-6 Mar-9 Jun-9 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar- Jun- Sep- Dec- Mar-6 Jun-6 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar- Jun- Sep- Dec- Mar-6 Jun-6 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-3 Jun-3 Sep-3 Dec-3 Mar-4 Jun-4 Sep-4 Dec-4 Mar- Jun- Sep- Dec- Mar-6 Jun-6 Outstanding and trading 3.7 Dark trading relative to total turnover on Exchanges and MTFs (%) % 9% 8% 7% 6% % 4% 3% % % % 3.8 Dark trading of indexed shares as proportion of total turnover (dark and lit)- selected indices 8% 6% 4% % % 8% 6% 4% % % FTSE CAC 4 DAX AEX IBEX 3 FTSE Source: BATS CHI-X Source: BATS CHI-X 3.9 Monthly turnover value on European exchanges and MTFs ( bn) Exchanges MTFs 3. Daily turnover value on European exchanges and MTFs ( bn) Source: BATS CHI-X Source: BATS CHI-X Under MTFs, the following are aggregated: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. Under MTFs, the following are aggregated: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. Page 7

18 Dec- Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun- Dec- Jun- Dec- Jun- Dec- Jun-3 Dec-3 Jun-4 Dec-4 Jun- Dec- Jun-6 Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun- Dec- Jun- Dec- Jun- Dec- Jun-3 Dec-3 Jun-4 Dec-4 Jun- Dec- Jun-6 Jun- Dec- Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun- Dec- Jun- Dec- Jun- Dec- Jun-3 Dec-3 Jun-4 Dec-4 Jun- Dec- Jun-6 Dec- Jul-6 Feb-7 Sep-7 Apr-8 Nov-8 Jun-9 Jan- Aug- Mar- Oct- May- Dec- Jul-3 Feb-4 Sep-4 Apr- Nov- Jun-6 Mar-8 Dec-8 Sep-9 Jun- Mar- Dec- Sep- Jun-3 Mar-4 Dec-4 Sep- Jun-6 Jun-6 Dec-6 Jun-7 Dec-7 Jun-8 Dec-8 Jun-9 Dec-9 Jun- Dec- Jun- Dec- Jun- Dec- Jun-3 Dec-3 Jun-4 Dec-4 Jun- Dec- Jun-6 Valuation indices and ratios 4 Valuation indices and ratios 4. Price indices of selected stock exchanges (Sep 7 = ) 4. Price per earnings ratio (PE ratio) of shares listed on selected exchanges DAX 3 FTSE NIKKEI S&P IBEX 3 CAC FTSE 3 DAX 3 IBEX 3 CAC 4 Source: Datastream Source: Datastream 4.3 Price-to-book ratio of Stoxx 6 constituent shares and EU average 4.4 Dividend payout ratio of shares listed on selected exchanges (Dividends/Earnings per share) STOXX EUROPE 6 EU (Reuters Composite) FTSE 3 DAX 3 IBEX 3 CAC Source: Datastream Source: Datastream 4. Dividend yield ratio of shares listed on selected exchanges (Dividend/Price) 4.6 Implied volatility of Euro Stoxx constituent shares (VSTOXX) STOXX EUROPE 6 FTSE 3 8 DAX 3 IBEX 3 CAC Source: Datastream Source: Stoxx Page 8

19 Summary of the Methodologies Adopted for this Report Summary of the Methodologies Adopted for this Report. Issuance...4. Equity underwriting The graphs covering historical issuance in Europe are denominated in EUR billions. Historical equity underwriting volumes are calculated by adding the proceeds from Initial Public Offerings (IPOs), Follow-On offerings and Convertible securities issued in exchanges located in the European Union (EU 8) + Switzerland. The member countries of the European Union + Switzerland are maintained during the sample period. The group of countries include: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden the UK and Switzerland. IPOs proceeds include overallotment proceeds (greenshoe), although the value of proceeds is disaggregated in the supporting data file. IPOs exclude introductions (listings unaccompanied by a sale of securities) and readmissions. Value and volume data are sourced from Dealogic. All figures comply with Dealogic s standards of rank eligibility..., - and.8-.9 IPOs by exchange, nationality of the issuing company and industry of issuing company Issuance values are denominated in nominal EUR billion. The figures illustrate the value of proceeds and number of deals of IPOs issued in European exchanges, aggregating by nationality of the exchange (charts.-.6 and.6), nationality of the issuing company (charts ) and industry of the issuing company (charts.9-.). The aggregated values include overallotment proceeds (greenshoe). Data are sourced from Dealogic comply with Dealogic s standards of rank eligibility... Difference between offer price and -day market price The chart illustrates the quarterly median of the difference between offer price and closing price one day after the IPO was issued. The deals taken into consideration are all the carried out in European exchanges during the quarter. Deals where the -day closing price or the offer prices are not available were not included in the calculation....3 Overallotment proceeds The graph illustrates the value of greenshoe investment in IPOs as proportion of aggregate proceeds in a given quarter. The proportion is aggregated on a weighted average basis. All IPOs are taken into consideration for purposes of the chart, even the value of overallotment was not disclosed or if it was nil in a given deal. Chart.3 aggregates IPO proceeds by proportion of exercised overallotment of each deal. Deals with undisclosed or nil overallotment are aggregated under % category..4 Average proceeds per IPO The graph shows the average amount of proceeds (including overallotment) per IPO during the quarter IPO by market value of issuing firm Graph.6 shows the number of IPO deals by the pre-deal market value of the issuing firm. In few instances the market value was not disclosed or was not available; these cases were classified as undisclosed. Graph.7 shows the median pre-deal market value of IPO issuing firms. Data are sourced from Dealogic.. Mergers and Acquisitions (M&A) and Private Equity.-. Deals where the target or acquiring companies are located in Europe The charts aggregate deal values of M&A transactions where European companies are either target or acquiring parties in the transaction. Charts.-. disaggregate deal values by type of deal: Sponsor, strategic and add-ons. Sponsor deals represent M&A transactions where the acquisition or sale is carried out by a Private Equity (PE), but not by a portfolio company of a PE firm. Strategic mergers are deals where both the target and the acquired company are not PE firms. Add-on deals are transactions where either the acquirer or seller companies are portfolio companies of a PE firm. M&A include both financial and trade sales. Page 9

20 Summary of the Methodologies Adopted for this Report Charts.3-.4 aggregate deal values by the location of the acquiring and target parties. Intra-European deals refer to completed deals where both the acquiring and target companies are located in Europe. Non-European acquires European aggregates M&A completed transactions where a company located outside Europe acquires a company located in Europe. European acquires non-european firm are M&A completed transactions where the acquiring party is European and the target company is located outside Europe. Europe is defined as in section (EU 8 + Switzerland)..-. and.9 Completed M&A deals between European companies The charts show the quarterly deal values of completed Mergers and Acquisitions (including debt) where the target and acquiring companies are domiciled in Europe (EU 8 + Switzerland). Deal values are denominated in EUR billions. Sponsor, strategic and add-on deals are defined as explained in charts.-.. The figures are aggregated by quarter when the deals were completed. Value and volume data are sourced from Dealogic and comply with Dealogic s rank eligibility criteria... Average deal value This graph illustrates the average deal value of by quarter of completed M&A deals where the target and acquiring companies are located in Europe. The average is calculated as the ratio of deal values in a quarter as proportion of number of deals that reported non-null deal values. Due to reporting limitations, the ratio is different from dividing total deal values by total number of deals given that several deals do not report deal value or the data are missing... Announced M&A This graph shows announced deal values (including debt) of completed, pending completion or partially completed deals, where the target company is located in Europe (EU 8 + Switzerland). The announced values are aggregated by sponsor, add-on and strategic deals, as described in previous section. Announced values are aggregated on the basis of the announcement date of deals..3. Completed M&A by nationality and industry This graph shows withdrawn volumes of M&A deals, defined as bids which were officially announced and subsequently withdraw, not pursued, rejected or expired. Withdrawn volumes are aggregated on the basis of the withdrawn date..4. Average days to complete Average days between date of announcement and completion date of intra-european deals. Completed deals with zero days between dates are excluded Completed M&A by nationality and industry The figures represent the most recent quarter s value of completed M&A deals of European target firms, aggregating by nationality of target firm (charts.8.), nationality of acquiring firm (chart.9.) and industry of target firm (chart..). Deal values are denominated in nominal EUR billion. Data are sourced from Dealogic and comply with rank eligibility criteria..8. Completed M&A by deal size The table aggregates the value and number of completed M&A deals by completed deal size (including debt) in nominal Euros. M&A deals where the target company is located in Europe are aggregated. 3. Outstanding Market capitalisation Graph 3. shows the EUR trillion amount of domestic market capitalisation of European (EU 8+ Switzerland), EU 8 and Euro zone (EU 9) exchanges. The composition of EU 8 and EU 9 countries remains constant throughout the sample period. The domestic market capitalisation of euro zone exchanges is sourced from the ECB ("Listed shares issued by euro area residents ). The following noneurozone exchanges were also aggregated: Zagreb Stock Exchange, Bucharest Stock Exchange, Bulgarian Stock Exchange, CEESEG Budapest, CEESEG Prague, NASDAQ Nordic Copenhagen, NASDAQ Nordic Stockholm, Warsaw Stock Exchange, London Stock Exchange and SIX Swiss Exchange. Market capitalisation figures for non-eurozone countries are sourced from FESE, except for LSE, Page

21 Summary of the Methodologies Adopted for this Report and NASDAQ OMX which were sourced directly from the exchanges websites, and for the Zagreb Stock Exchange which was sourced from Reuters Datastream. Graph 3.4 shows the market capitalisation of listed shares on European, EU 8 and EU 9 exchanges as proportion of nominal GDP. GDP is sourced from Eurostat in its quarterly form. For purposes of this chart, the denominator is calculated as the sum of the past four quarters nominal seasonal adjusted GDP values. 3. Euro-denominated listed shares This graph illustrates the outstanding amounts of euro-denominated quoted shares issued by euro area residents, by sector of issuer. The figures are denominated in EUR nominal trillions. Quoted shares include all shares with prices quoted on a recognised stock exchange or other form of regulated market. Quoted shares comprise all financial assets which represent property rights in corporations or quasi-corporations. These financial assets generally entitle the holder to a share in the profits of the corporations or quasicorporations and to a share in their net assets in the event of liquidation. Quoted shares are valued and reported at market values. The data are sourced from the ECB Number of listed companies This chart aggregates the number of listed companies in European exchanges by Domestic and Foreign firms. Data are sourced from FESE, the World Federation of Exchanges, and LSEG. Data are aggregated by adding individual exchanges reported figures. 3.. Turnover ratio The chart illustrates the quarterly turnover ratio of EU 8 stock exchanges and selected MTFs calculated as the ratio of four times the quarterly turnover value as proportion of the market capitalisation at the end of the quarter. The following MTFs were selected as representative of the off-exchange market: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet, Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. OTC transactions are not included due to potential double counting between TRFs. 3.6., 3.9 and 3. Quarterly, monthly and daily turnover on European Exchanges and MTFs Average value of equity turnover by type of order book (3.6) and by type of venue (3.9). Data are sourced from BATS Chi-X for the following exchanges and MTFS: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet, Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, Xetra International, Euronext Amsterdam, Bolsa de Madrid, Euronext Brussels, NASDAQ OMX Copenhagen, NASDAQ OMX Helsinki, Euronext Lisbon, LSE, Borsa Italiana (Milan), Oslo Bors, Euronext Paris, SIX Swiss Exchange, NASDAQ OMX Stockholm and Wiener Borse Dark pools turnover Chart 3.6 shows the monthly value traded in dark pools as proportion of turnover in Exchanges and MTFs (Dark and Lit). For dark pool trading, the same MTFs selected for chart 3. were taken into consideration. Chart 3.7 illustrates the aggregate proportion of dark pool trading of the constituent shares of the selected indices. Data are sourced from BATS Chi-X MTFs turnover The chart illustrates the quarterly turnover in EUR value in selected MTFs where data was available: Aquis, BLINK MTF, Burgundy, BXE Book, CXE Book, Equiduct, ICAP BlockCross, Instinet, Blockmatch, ITG Posit, Liquidnet, NEURO, Nomura NX, NYSE Arca, Pipeline, Quote MTF, SIGMA X MTF, SLS, Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. 4. Valuation 4.. Price indices of listed shares This graph represents price data for selected European exchanges selected as benchmarks in the respective jurisdictions. The price calculations are provided by Datastream, which for purposes of comparability are converted into a price index with January 8 as base (Jan-8 = ) Valuation ratios These graphs illustrate several valuation ratios of selected price indices of European shares. Page

22 PE ratios are calculated as the ratio of market prices as proportion of market-expected annual earnings. The ratios are sourced from Datastream. Price-to-book ratio represents the average ratio of share market prices as proportion of book prices of Stoxx 6 listed companies and a PanEuropean index of European shares compiled by Thomson Reuters Datastream. VSTOXX index is the market-implied volatility of STOXX listed shares, sourced from Stoxx. Summary of the Methodologies Adopted for this Report Page

23 Annex Annex Disclaimer Your receipt of this document is subject to paragraphs 3, 4,, 9,, and 3 of the Terms of Use which are applicable to AFME s website (available at and, for the purposes of such Terms of Use, this document shall be considered a Material (regardless of whether you have received or accessed it via AFME s website or otherwise). Page 3

24 London Office 39th Floor Canada Square London E4 LQ United Kingdom Switchboard: +44 () Brussels Office Rue de la Loi, 8 4 Brussels Belgium Switchboard: +3 () AFME Julio Suarez Manager April Day Managing Director Andrew Brooke Director Sean Barwick Manager AFME is registered on the EU Transparency Register, registration number Page 4