Equity Primary Markets and Trading Report

Transcription

1 Equity Primary Markets and Trading Report European market data update Q3: 6 Association for Financial Markets in Europe

2 Table of Contents Table of Contents Highlights... 3 Year-to-date variation of European Equity activity (EU 28 member countries and Switzerland)... 3 European Equity activity... 4 YtD IPOs on European junior markets (number of deals and capital raised, mn)... Dark trading relative to total turnover on exchanges and MTFs (%)... Cross-border and intra-european M&A transactions (year-to-date % increase in deal value)... 6 Major upcoming regulatory, legislative and policy initiatives... 6 Issuance Equity underwriting ( bn) IPOs ( bn) Follow-on offerings ( bn) Convertible securities ( bn) IPO proceeds by country of exchange: 3Q6 ( mn) Number of IPOs by country of exchange: 3Q IPOs by nationality of issuer: 3Q6 ( mn) Number of IPOs by nationality of issuer: 3Q IPOs by industry of issuer: 3Q6 ( mn) Number of IPOs by industry: 3Q 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) 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 on Jr markets (number of deals and capital raised, mn) IPOs by listing venue ( mn)....9 Number of IPOs by listing venue... 2 Mergers and Acquisitions Completed M&A by acquiring party: full-year and YtD Completed M&A by acquiring party: quarterly Completed M&A by type of deal: full-year and YtD Completed M&A by type of deal: quarterly Deal value of completed European M&A deals ( bn) Completed M&A by type of deal: annual and YtD Completed M&A by type of deal: quarterly Completed strategic M&A Completed add-on M&A Sponsor M&A Average value of completed M&A Announced M&A Withdrawn M&A Index: Completed and Announced M&A relative to Withdrawn volume Average days to complete Completed M&A by nationality of acquirer (selected countries) Completed M&A by nationality of target firm (selected countries) Completed M&A by industry of target firm ( bn) Completed intra-european M&A transactions by size of deal ( bn) Completed intra-european M&A transactions by location of acquiring and target company (YtD, 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 companies listed on European exchanges 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) Number of companies listed on European exchanges 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)... 9 Summary of the Methodologies Adopted for this Report... Annex... 2 Page 2

3 Equity turnover (value) M&A Equity Underwriting Highlights Highlights Updated statistics on equity primary markets and trading in Europe (EU 28 member countries and Switzerland) Main findings: Equity underwriting on European exchanges accumulated a total of 26.9 bn in proceeds in 3Q 6, a 47%decrease from the value originated in 2Q 6 (.9 bn). Equity underwriting encompasses Initial Public Offerings (IPOs), convertible securities and follow-on offerings. Year-to-date (YtD), equity underwriting decreased 37% from 69 bn in the first three quarters of to 6. bn in 6. Mergers and Acquisitions (M&A) of European companies totalled 8 bn in 3Q 6, a decrease of 8.9% from the value observed in 2Q 6 ( 22.8 bn). In the first three quarters of 6, M&A transactions accumulated 682bn in deal value, an increase of 9% from the same period of ( bn). Equity trading activity on European main markets and MTFs generated a total of 2.6 tn in turnover value in 3Q 6, a decrease of 3% from the value traded in 2Q 6 ( 3.33 tn). On a year-to-date basis, equity turnover decreased % from the value traded in the first three quarters of (from tn to 8.9 tn) 2. Market capitalisation of European listed shares 3 stood at. tn at the end of 3Q 6, an increase of 3.9% from 2Q 6 (. tn) and an increase of.3% from the market value of a year ago ( 2.4 tn). Year-to-date variation of European Equity activity (EU 28 member countries and Switzerland) Total IPOs Follow-ons -37% -% -39% Convertibles Total Intra-European -7% 6% 9% Outbound 63% Inbound Total Main Markets MTFs Market Cap ( ) -% -% -6% 7% % -6% -4% -% % % 4% 6% 8%, 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 October 6 Completed M&A between European firms as acquiring or target companies 2 Percentage changes differ due to rounding. 3 Domestic market capitalisation of listed shares on European exchanges (EU2 member states and Switzerland). Page 3

4 Highlights European Equity activity (EU 28 and Switzerland) Q 6 2Q 6 3Q 6 Q 2Q 3Q 4Q FY % Change 3Q6 YtD % Change 3Q6 QoQ Equity underwriting ( bn) % -47.% IPOs % -6.4% Follow-on offerings % -43.% Convertible securities % -33.6% Mergers and Acquisitions ( bn) % -8.9% European firms acquiring non-european firms % -68.8% Non-European firms acquiring European firms %.3% Intra European deals % 3.7% Equity turnover value ( tn) % -3.4% Main Markets % -4.4% MTFs % -2.3% Market Capitalisation of domestic listed shares ( tn) European (EU28 and Switzerland) % 3.9% EU % 4.% Euro Zone %.3%, Bats Chi-X, FESE, World Federation of Exchanges, LSEG, ECB, NASDAQ Nordic and Baltic, Bucharest Stock Exchange and CEESEG-Prague Page 4

5 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-6 Feb-6 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Number of IPOs Detailed findings and commentary In 3Q6, SME companies raised a total of 4m through IPOs on junior markets (i.e. markets directed towards small- and mid-caps), a decrease of 8% from.bn raised in 2Q6 YtD IPOs on European junior markets (number of deals and capital raised, mn) YtD 6 YtD,m m Bubble Size: Capital raised ( m) AIM AIM Alternext Frankfurt MAB First North NewConnect LSE Italy Entry (NASDAQ OMX) Warsaw Dark trading relative to total turnover on exchanges and MTFs (%) 9.% 8.8% 8.6% 8.4% 8.2% 8.% 7.8% 7.6% 7.4% 7.2% 7.% % dark trading per month 3 per. Mov. Avg. (% dark trading per month) Source: AFME and BATS Chi-X Detailed findings Issuance: equity underwriting and IPOs Quarterly decrease in all forms of equity underwriting: Equity underwriting on European exchanges remained subdued in the third quarter of the year, with a decrease in the value of proceeds of 47% quarter-on-quarter (QoQ) and 37% YtD. The largest contribution to the quarterly decrease of equity underwriting was IPOs with a decrease of 6% QoQ ( 4. bn in 3Q6 from.6bn in 2Q6), followed by secondary offerings falling by 43% QoQ ( 9. bn in 3Q6 from 33.6 in 2Q6), and convertible securities decreasing by 33% QoQ ( 3.8 bn in 3Q6 from.7bn in 2Q6). Fewer IPO 4 deals during 6: in 3Q6 a total of 23 companies raised capital through IPOs on European exchanges, a decrease from 8 companies in 2Q6. In the first three quarters of 6, a total of 4 new companies have gone to IPO markets to raise capital (4 in YtD). NASDAQ OMX led IPO activity: By exchanges, IPO activity in 3Q 6 was led by listings on NASDAQ OMX, raising a total of 2.2 bn ( 2.bn raised by one company Nets A/S). London exchanges 6 led by number of new listings with deals, followed by Euronext 7 (7 deals) and the Borsa Italiana ( deals). SME IPOs on Junior markets: In 3Q6, SME companies raised a total of 4m through IPOs on junior markets (i.e. markets directed towards small- and mid-caps), a decrease of 8% from.bn raised in 2Q6. On a year-to-date basis, however, total proceeds have increased by 22% (from.4 in YtD to.7bn 6YtD) led by the origination in the second quarter of the year, although with fewer deals compared with (73 deals and 79 in YtD). See graph in left panel. European equity trading A total of 2.6tn in equity shares were traded on European venues in 3Q6, a decrease of 3% from 3.tn in 2Q6. By trading venues, equity trading in Main Markets decreased by 4.4% QoQ and.% YtD in value. Equity trading on MTFs fell in tandem by 2.3% QoQ and.9% YtD. By type of order book, dark trading represented 8.2% of total equity turnover on main markets and MTFs in 3Q6. This represented a slight decrease from 8.4% in 2Q6 but above the proportion of FY (7.%) and 4FY (6.7%). On a three-month moving-average basis, the proportion of dark trading has stabilised at c8.2% since April-6, although more recently in Sept-6 the proportion decreased slightly to 7.9%. See graph in left panel. 4 Excludes readmissions and introductions (listings unaccompanied by a sale of securities). Includes main market and First North. See further detail in table.9. 6 LSE main market and AIM. See further detail in table.9. 7 Paris and Amsterdam. Main market and Alternext. See further detail in table.9. Page

6 Major upcoming regulatory, legislative and policy initiatives Cross-border and intra-european M&A transactions (year-to-date % increase in deal value) Cross-border transactions with non-european companies have led total M&A activity in 6 By markets, 4.7% of the turnover value of FTSE2 listed companies was traded on dark order books in 3Q6, compared with % of FTSE. These proportions, however, have stabilised around these values for the last two years. For other markets, like IBEX3 listed shares, the proportion has continuously raised from 3% in 3 to 6% in Sept-6. See further detail in chart 3.8 in the report. Mergers and Acquisitions (M&A) in Europe In 3Q 6, a total of 2,8 M&A deals were completed where either the target or the acquiring company were located in Europe. The volume represented a total of 8bn in deal value 8, a decrease of 8.9% from a quarter ago ( 22.8 bn) but an increase of 9.% YtD. Cross-border transactions with non-european companies have led M&A activity in 6: The year-todate increase in M&A activity has been led by cross-border transactions between European companies and companies located outside Europe. Inbound M&A increased 7.3% YtD, while outbound M&A increased 63% YtD. Intra-European deals accumulated a decrease of 7.4%YtD. It is taking longer to complete M&A transactions: for intra-european deals, the number of days on average to complete an M&A transaction has continuously increased over the last six years. The number of days between announcement and completion dates has increased from 6.3 days in, to 68.7 days in and 7.9 days for all deals completed in 6YtD. See graph 2. in the report. Volume of withdrawn and announced M&A deals mirror subdued deal volume of intra-european activity: The value of withdrawn deals so far this year accumulated a total of 289.8bn, an increase from 83.6bn in the first three quarters of. On the other hand, the volume of announced 9 deals accumulated a total of 246.9bn, a decrease of 3% from YtD ( 3.7bn). Major upcoming regulatory, legislative and policy initiatives 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. 8 Including debt. 9 Announced during the year already completed or yet to be completed. Page 6

7 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Issuance Issuance Equity instruments issuance on European exchanges. Equity underwriting ( bn).2 IPOs ( bn) Convertible securities IPOs Follow-ons YtD YtD 2 Deal Value (EUR bn) # Deals Follow-on offerings ( bn).4 Convertible securities ( bn) Deal Value (EUR bn) # Deals (Right) Deal Value (EUR bn) # Deals (Right) IPO proceeds by country of exchange: 3Q6 ( mn) NASDAQ OMX (Copenhagen) Borsa Italiana Euronext (Amsterdam) UK exchanges (LSE and AIM) NASDAQ OMX (Stockholm) Deutsche Börse Euronext (Paris) Warsaw BME Spain ,2.9.6 Number of IPOs by country of exchange: 3Q6 2 UK exchanges (LSE and AIM) Borsa Italiana Euronext (Paris) NASDAQ OMX (Stockholm) BME Spain Warsaw Deutsche Börse Euronext (Amsterdam) NASDAQ OMX (Copenhagen) 3 3 Excludes introductions and re-admissions. Multiple exchanges are dual listings 2 Multiple exchanges are dual listings Page 7

8 Q 2Q 3Q 4Q Q 2Q 3Q 4Q Q 2 2Q 2 3Q 2 4Q 2 Q 3 2Q 3 3Q 3 4Q 3 Q 4 2Q 4 3Q 4 4Q 4 Q 2Q 3Q 4Q Q 6 2Q 6 3Q 6 3Q Q 6 3Q 6 Q 7 3Q 7 Q 8 3Q 8 Q 9 3Q 9 Q 3Q Q 3Q Q 2 3Q 2 Q 3 3Q 3 Q 4 3Q 4 Q 3Q Q 6 3Q 6 Issuance.7 IPOs by nationality of issuer: 3Q6 ( mn).8 Number of IPOs by nationality of issuer: 3Q6 Denmark 2,2.9 United Kingdom 7 Italy 83.8 Italy 6 Netherlands 377. France 3 United Kingdom Sweden 3 Sweden 92. Virgin Islands (GB) Germany 82.9 Spain France 8. Poland Guernsey 7.2 Guernsey Poland 6.9 Germany Spain 4. Netherlands Virgin Islands (GB).7 Denmark 3.9 IPOs by industry of issuer: 3Q6 ( mn). Number of IPOs by industry: 3Q6 Computers & Electronics 2,4.4 Finance 7 Transportation Healthcare 6 Leisure & Recreation 23.3 Computers & Electronics 4 Healthcare 6.9 Professional Services 2 Finance 96.7 Publishing Construction/Building 82.9 Machinery Professional Services 8. Oil & Gas Chemicals 3.7 Chemicals Oil & Gas 2.4 Construction/Building Machinery 4. Leisure & Recreation Publishing 3.8,, 2, 2, 3, Transportation Median difference between offer price and -Day closing price of IPOs (%) % % % % % 3th-7th percentile Median Y average.2 Overallotment as proportion of quarterly IPO proceeds % 9% 8% 7% 6% % 4% 3% 2% % % -% Page 8

9 Number of IPOs 3Q Q 6 3Q 6 Q 7 3Q 7 Q 8 3Q 8 Q 9 3Q 9 Q 3Q Q 3Q Q 2 3Q 2 Q 3 3Q 3 Q 4 3Q 4 Q 3Q Q 6 3Q 6 Q Q4 Q3 2 Q2 3 Q 3 Q4 4 Q3 Q2 6 Q 6 Q4 7 Q3 8 Q2 9 Q 9 Q4 Q3 Q2 2 Q 2 Q4 3 Q3 4 Q2 Q Q4 6 Q3 Issuance.3 IPOs by proportion of exercised overallotment ( bn) 2.4 Average proceeds per IPO ( mn) %.%-%.%-%.%-% >% 2. Number of IPOs by market value of issuing firm (pre-deal market value) < m m-m m-bn + bn Undisclosed 6YtD YtD.6 Median market value of IPO issuing firms ( mn, pre-deal market value) # Deals.7 IPOs on Jr markets (number of deals and capital raised, mn) m m Bubble Size: Capital raised ( m) 2Q6 3Q AIM AIM Italy Alternext Frankfurt Entry MAB First North Warsaw (NASDAQ OMX) NewConnect Page 9

10 Issuance.8 IPOs by listing venue ( mn) 3 Q 6 2Q 6 3Q 6 Q 2Q 3Q 4Q YtD 6 YtD AIM ,8 LSE 2, ,7 4, ,74,369 2,793 AIM Italia Borsa Italiana ,7 37 3, 2,4,23 Euronext 3, ,829 2, ,39,9 3,89 Euronext-Alternext Irish Stock Exchange Frankfurt ,63 2,964 4,8 389 Frankfurt Entry 9 ICAP BME,34 4,79 3,628 8,337,34 MAB Börse München NASDAQ OMX 62 3,68 2,67,29 2,229 26,988 3, 6,464 NASDAQ OMX-First North CEESEG-Prague CEESEG-Prague and Warsaw 28 SIX Swiss Exchange 72 2, ,37 72 Bulgarian Stock Exchange 6 Stockholm - Aktie Torget Warsaw Warsaw - NewConnect Zagreb Stock Exchange Channel Islands Stock Exchange 7 7 Total 3,683,89 4,6 8,69,899 4,8 2,699 38,773 9,277.9 Number of IPOs by listing venue 4 Q 6 2Q 6 3Q 6 Q 2Q 3Q 4Q YtD 6 YtD AIM LSE AIM Italia Borsa Italiana Euronext Euronext-Alternext Irish Stock Exchange Frankfurt Frankfurt Entry ICAP BME MAB Börse München NASDAQ OMX NASDAQ OMX-First North CEESEG-Prague CEESEG-Prague and Warsaw SIX Swiss Exchange Bulgarian Stock Exchange Stockholm - Aktie Torget Warsaw Warsaw - NewConnect Zagreb Stock Exchange Channel Islands Stock Exchange Total Multiple exchanges relate to dual listings 4 Multiple exchanges relate to dual listings Page

11 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 2 Mergers and Acquisitions Mergers and Acquisitions Deals where the target or the acquiring company is located in Europe BILLIONS 2. Completed M&A by acquiring party: full-year and YtD,, Non-European acquires European European acquires non-european Intra European deals Completed M&A by acquiring party: quarterly 3 2 Non-European acquires European European acquires non-european Intra European deals YtD YtD 2.3 Completed M&A by type of deal: fullyear and YtD Completed M&A by type of deal: quarterly,, 8 24 Add-on Sponsor Strategic 3 2 Add-on Sponsor Strategic YtD YtD 2. Deal value of completed European M&A deals ( bn) Q 6 Q2 6 Q3 6 Q Q2 Q3 Q4 QoQ growth (%) YTD growth (%) Strategic % 9.9% Sponsor % -.2% Add-on % -34.% TOTAL % 9.% European firms acquiring non-european firms % 63.3% Non-European firms acquiring European firms % 7.3% Intra Europe deals % -7.4% TOTAL % 9.% 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 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 Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Q3 Q3 2 Q3 3 Q3 4 Q3 Q3 6 Q3 7 Q3 8 Q3 9 Q3 Q3 Q3 2 Q3 3 Q3 4 Q3 Q3 6 Q3 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Q Q3 Q Q3 2 Q 2 Q3 3 Q 3 Q3 4 Q 4 Q3 Q Q3 6 Q 6 Q3 Q Q2 Q3 Q4 Q Q2 Q3 Q4 2 Q 2 Q2 2 Q3 2 Q4 3 Q 3 Q2 3 Q3 3 Q4 4 Q 4 Q2 4 Q3 4 Q4 Q Q2 Q3 Q4 6 Q 6 Q2 6 Q3 Mergers and Acquisitions Intra-European deals (target and acquiring companies located in Europe) BILLIONS 2.6 Completed M&A by type of deal: annual and YtD Completed M&A by type of deal: quarterly Add-on Sponsor 3 Strategic Add-on Sponsor Strategic YtD YtD 2.8 Completed strategic M&A 2.9 Completed add-on M&A Deal value ( bn) Number of deals (right) 2, 2,,, 2 Deal value ( bn) Number of deals (right) Sponsor M&A 2. Average value of completed M&A 4 Deal value ( bn) Number of deals (right) 2, 2, , 6, 4 7 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. 8 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 2

13 Mergers and Acquisitions BILLIONS 2.2 Announced M&A Withdrawn M&A Q 2Q 3Q FY 466 8,6,4,,34 Withdrawn volume ( bn) # Deals,4,, YtD YtD, YtD YtD Index: Completed and Announced M&A relative to Withdrawn volume Completed/Withdrawn Announced/Withdrawn YtD 2. Average days to complete YtD 2.6 Completed M&A by nationality of acquirer (selected countries) France Netherlands Germany United Kingdom Czech Republic Italy Spain Sweden Switzerland Portugal Austria Finland Denmark Ireland Poland Hungary Q3 6 Q Completed M&A by nationality of target firm (selected countries) France Germany Belgium UK Italy Spain Netherlands Sweden Austria Switzerland Portugal Denmark Ireland Hungary Poland Finland Czech Republic Romania Latvia Slovak Republic Greece Q Q2 3 9 Announced deals include completed, pending completion or partially completed transactions. Values are presented at date of announcement. Bids which were officially announced and subsequently withdrawn, not pursued, rejected or expired. Page 3

14 Mergers and Acquisitions 2.8 Completed M&A by industry of target firm ( bn) Finance Retail.2 6. Utility & Energy Real Estate / Property 8..3 Computers & Electronics 7..9 Healthcare Construction / Building Auto / Truck 2.. Professional Services Transportation 2..9 Food & Beverage.2. Dining & Lodging..8 Publishing.8..8 Chemicals.9 Consumer Products.7. Telecommunications.6 9. Forestry & Paper.. Machinery..2 Textile.3. Insurance.3.6 Oil & Gas.2. Leisure & Recreation..3 Holding Companies.. Metal & Steel..2 Aerospace. 2.2 Agribusiness.. Closed End Funds.. Mining..7 Government..4 Defense.. 6 Q3 6 Q Completed intra-european M&A transactions by size of deal ( bn) Value of deals ( bn) Q 6 Q2 6 Q3 6 Q Q2 Q3 Q4 > bn m to bn m to m m to 2m m to m m to m m to 2m < m Total Page 4

15 Acquiror Nationality Mergers and Acquisitions 2. Completed intra-european M&A transactions by location of acquiring and target company (YtD, mn) Target Nationality AT BE BG HR CY CZ DK EE FI FR DE HE HU IE IT LV LT LU MT NL PL PT RO SK SI ES SE CH UK Grand Total Austria, ,839 Belgium, ,69 Bulgaria Croatia Cyprus 8 28 Czech Republic 737 3,4, ,822 Denmark 2,299, ,244 Estonia Finland ,23 9, ,9 France ,33 2,7 28, ,3,443 47, Germany ,86, , ,68 Greece Hungary Ireland,234,926 7,8 Italy 48 3, , ,724 Latvia Lithuania Luxembourg Malta Netherlands 2, , ,382 82,77 Poland 4 8 2, ,89 Portugal 9 46,6 Romania Slovak Republic 8 8 Slovenia Spain , ,6 2,63 Sw eden 6, , ,82 49,22 Sw itzerland ,636 2,386,9 United Kingdom 4, , , ,97 7,48 Grand Total,3 6, ,3 2, ,887 3,9 23,74, ,8 29, ,2 3,2, ,8 7,428 6,63,966 39,694 Page

16 3Q 9 Q 3Q Q 3Q Q 2 3Q 2 Q 3 3Q 3 Q 4 3Q 4 Q 3Q Q 6 3Q 6 4Q 9 Q 2Q 3Q 4Q Q 2Q 3Q 4Q Q 2 2Q 2 3Q 2 4Q 2 Q 3 2Q 3 3Q 3 4Q 3 Q 4 2Q 4 3Q 4 4Q 4 Q 2Q 3Q 4Q Q 6 2Q 6 3Q 6 Dec-2 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-6 6Q2 7Q2 8Q2 9Q2 Q2 Q2 2Q2 3Q2 4Q2 Q2 6Q2 Sep- Sep- Sep-2 Sep-3 Sep-4 Sep- Sep-6 Sep-7 Sep-8 Sep-9 Sep- Sep- Sep-2 Sep-3 Sep-4 Sep- Sep-6 Aug- Aug-2 Aug-3 Aug-4 Aug- Aug-6 Aug-7 Aug-8 Aug-9 Aug- Aug- Aug-2 Aug-3 Aug-4 Aug- Aug-6 Outstanding and trading 3 Outstanding and trading 3. Domestic market capitalisation of listed shares ( Tn) Euro area EU 28 Europe 3.2 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 3.3 Number of companies listed on European exchanges Source: ECB 3.4 Domestic market capitalisation of listed shares relative to GDP (%) 2,7,6,,4,3,,,,9 % 9% 8% 7% 6% % 4% 3% % % % EU 28 Euro Area (EU 9) Europe Source: ECB, Datastream, FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange and CEESEG Prague, Zagreb Stock Exchange 3. Turnover ratio of European shares: Dark and Lit (Annualised turnover value/market capitalisation) 6% % 4% 3% % % % 9% 8% 7% 6% 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 2 GDP available only as of 2Q6. Europe refers to EU28 member states and Switzerland. Page 6

17 Outstanding and trading 3.7 Dark trading relative to total turnover on Exchanges and MTFs (%) % 9% 8% 7% 6% % 4% Mar-9 Jun-9 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-2 Jun-2 Sep-2 Dec-2 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-6 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-2 Jun-2 Sep-2 Dec-2 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-6 3% 2% % % Sep-9 Dec-9 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar-2 Jun-2 Sep-2 Dec-2 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-6 Source: BATS CHI-X 3.8 Dark trading of indexed shares as proportion of total turnover (dark and lit)- selected indices 8% 6% 4% 2% % 8% 6% 4% 2% % FTSE CAC 4 DAX AEX IBEX 3 FTSE 2 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 22 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. 23 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-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Dec-2 May-3 Oct-3 Mar-4 Aug-4 Jan- Jun- Nov- Apr-6 Sep-6 Outstanding and trading 3. Number of companies listed on European exchanges Warsaw Stock Exchange Bratislava Stock Exchange 3 2 CEESEG - Prague Bulgarian Stock Exchange 2 Zagreb Bucharest Stock Exchange CEESEG - Ljubljana Luxembourg Stock Exchange LSEG CEESEG - Budapest Euronext SIX Swiss Exchange BME (Spanish Exchanges) NASDAQ Nordics & Baltics NASDAQ Baltics Cyprus Stock Exchange Athens Exchange Deutsche Börse Malta Stock Exchange Irish Stock Exchange Source: FESE, NASDAQ Nordic, LSEG, WFE, Bucharest Stock Exchange and CEESEG Prague, Zagreb Stock Exchange 24 In Spain, includes open-end investment companies (MAB). Companies listed on the Electronic Order Book (Mercado continuo) are 32 as of September 6, Page 8

19 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Sep-6 Mar-7 Sep-7 Mar-8 Sep-8 Mar-9 Sep-9 Mar- Sep- Mar- Sep- Mar-2 Sep-2 Mar-3 Sep-3 Mar-4 Sep-4 Mar- Sep- Mar-6 Sep-6 Valuation indices and ratios 4 Valuation indices and ratios 4. Price indices of selected stock exchanges (Sep 7 = ) 4.2 Price per earnings ratio (PE ratio) of shares listed on selected exchanges DAX 3 FTSE NIKKEI 22 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) 2 STOXX EUROPE 6 FTSE 3 DAX 3 IBEX 3 CAC Implied volatility of Euro Stoxx constituent shares (VSTOXX) Source: Datastream Source: Stoxx Page 9

20 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 28) + 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 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.6 shows the median pre-deal market value of IPO issuing firms. Data are sourced from Dealogic..7 IPO on junior markets Number and total proceeds (including overallotment) of IPOs on European junior markets. The exchanges aggregated include all where capital has been raised during the year (according to Dealogic data). 2. 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 Page

21 Summary of the Methodologies Adopted for this Report 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. Charts 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 28 + Switzerland) and 2. 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 28 + 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. 2.. 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 28 + 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 Withdrawn M&A 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 Index: completed and announced deals relative to withdrawn Index calculated as the total amount of completed M&A deals between European countries (i.e. intra- European deals) in a year calendar and year-todate, relative to withdrawn volumes during the same period. Additional index calculated as the ratio of announced to withdrawn volumes of M&A transactions during the year. 2.. 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 2.8.), nationality of acquiring firm (chart 2.9.) and industry of target firm (chart 2..). Deal values are denominated in nominal EUR billion. Data are sourced from Dealogic and comply with rank eligibility criteria 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 3.. and 3.4. Market capitalisation Graph 3. shows the EUR trillion amount of domestic market capitalisation of European (EU 28+ Switzerland), EU 28 and Euro zone (EU 9) Page 2

22 Summary of the Methodologies Adopted for this Report exchanges. The composition of EU 28 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, 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 28 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. 3.2 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 and 3. Number of listed companies This chart aggregates the number of listed companies on European exchanges (Domestic and Foreign). The data is sourced from FESE, the World Federation of Exchanges, and LSEG and other European exchanges. 3.. Turnover ratio The chart illustrates the quarterly turnover ratio of EU 28 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 Equity turnover by type of book Chart 3.6 shows the quarterly turnover value on european main markets and MTFs by type of order book. Chart 3.7 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 3.8 illustrates the aggregate proportion of dark pool trading of the constituent shares of the selected indices. Data are sourced from BATS Chi-X Equity turnover by type of venue (main market and MTF) 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, Page 22

23 Summary of the Methodologies Adopted for this Report Smartpool, TOM MTF, Turquoise, UBS MTF, Xetra, and Xetra International. 3.. Daily Equity turnover The chart shows daily turnover in EUR value in selected main markets and MTFs where data was available. The list of MTFs is the same as in previous charts. Datya are sourced from Bats Chi-X. 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. 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. Page 23

24 Summary of the Methodologies Adopted for this Report Page 24

25 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 2

26 London Office 39th Floor 2 Canada Square London E4 LQ United Kingdom Switchboard: +44 () Brussels Office Rue de la Loi, 82 4 Brussels Belgium Switchboard: +32 () 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 26