ATHEX A Crucial Player in the Development of the Greek Economy December 2011 Socrates G. Lazaridis
CONTENTS THE GREEK CAPITAL MARKETS ATHEX INITIATIVES GREECE A COUNTRY OF OPPORTUNITIES ATHEX A PLATFORM FOR DEVELOPMENT Page 2
HELEX An Integrated Group Operator of the Greek cash, derivatives and bonds Markets Vertical integration: Trading, clearing, settlement and registry systems 100% Corporate Functions Cash and Derivatives Markets Settlement and Registration 99.9% HELEX listed on Athens Exchange (Aug. 2000) 100% Fully privatized group (2003) 17.8% owned by local banks 54.6% owned by international investors Cash and Derivatives Markets Trading Cash and Derivatives Markets Clearing Organizing financial transactions in Northern Greece Software services Page 3
ATHEX - A Developed and Secure Market Fully compatible with European standards State of the art technology Dematerialized multi-product, service and client systems Sophisticated risk management systems Remote member hubs at two major global liquidity centers (London and Cyprus) Page 4
High Growth Potential Market Cap to GDP Ratio 110 100 90 81.2 91.2 89.2 80 70 60 50 63.2 72.0 79.8 46.3 66.1 70.7 56.9 40 30 20 10 27.3 33.4 21.9 ATHEX European Exchanges 14.1 2005 2006 2007 2008 2009 2010 2011 Source HELEX, eurostat 1998 2010: Market capitalization is on the last day of Dec; 2011 - Sep Page 5
Satisfactory Liquidity Turnover Velocity 200 195.2 180 160 140 120 126.4 100 80 73.8 91.1 100.0 82.2 81.8 62.9 60 40 20 64.6 58.8 52.3 52.0 34.4 44.7 ATHEX European Exchanges 2005 2006 2007 2008 2009 2010 2011 Source HELEX, FESE 2005 2010: Market capitalization is on the last day of Dec; 2011 - June Page 6
High Participation by Foreign Investors Market Cap International investors Local retail investors Local institutional investors 32% 24% ** 31% 29% 30% 31% ** Investor participation in ATHEX (% of total market cap) 15% 36% 27% 15% 40% 24% 9% 47% 23% 52% 19% 48% 48% 50% 51% 21% 22% 21% 20% 8% 6% 7% 6% 6% 6% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Oct 2011 International investor participation - ATHEX Large & Mid cap stocks (% of market cap) Large caps (FTSE/ATHEX 20) Mid caps (FTSE/ATHEX Liquid Mid*) 60% 52% 55% 55% 57% 39% 42% 45% 48% 37% 40% 40% 40% 37% 28% 31% 18% 20% 22% 61% 36% ** 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Oct 2011 Data is on December 31 st unless otherwise indicated; Source: HELEX (Axia Numbers publication) * 2002-2008 - FTSE/ATHEX Mid 40 ; ** Data not available Page 7
High Participation by Foreign Investors - Trading Investor participation in ATHEX (% of total trading by value in the stock market) International investors Local retail investors Local institutional investors 45% 51% 51% 56% 62% 48% 51% 46% 32% 20% 29% 29% 27% 16% 16% 15% 21% 14% 32% 29% 17% 18% 29% 21% 2004 (Mar - Dec) 2005 2006 2007 2008 2009 2010 2011 (Jan- Oct) Data is for the whole year, unless otherwise indicated Source: HELEX (AxiaNumbers publication) Page 8
Average Daily Volumes Holding Well Cash Market Avg Daily Volume (m shares) 47.9 46.3 39.2 38.4 31.9 29.2 33.2 33.7 20.9 24.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Nov. 4 th 2011 Page 9
Derivatives Volumes Growing 4.5 4.0 Index Futures Stock Futures Index Options Stock Options 3.5 3.0 2.5 Derivatives Market Volume per Product (m contracts) 2.0 1.5 1.0 50.7 0.5 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 35.0 39.8 42.1 43.7 28.5 Derivatives Market Average Daily Number of Contracts (000 c) 16.1 21.3 20.8 21.6 Nov. 4 th 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Page 10
CONTENTS THE GREEK CAPITAL MARKETS ATHEX INITIATIVES GREECE A COUNTRY OF OPPORTUNITIES ATHEX A PLATFORM FOR DEVELOPMENT Page 11
ATHEX CSE Common Platform A Successful Partnership Page 12
Global Access with the XNET Services Page 13
New Services to Issuers Analysis of Corporate Governance model Governance Benchmarking Analysis Board Self Assessment Shareholder response Investors Governance Profile CORPORATE GOVERNANCE Share Register Analysis Shareholder Identification Retail Segmentation Retail programs INVESTORS SHAREHOLDER MEETINGS Pre Agenda Analysis Proxy Advisors Information Agent Proxy Solicitation Post Meeting Analysis Objectives of new services: Promote investors participation during General Meetings Improve Corporate Governance (MoU with Hellenic Federation of Enterprises) Increase shareholders information Page 14
CONTENTS THE GREEK CAPITAL MARKETS ATHEX INITIATIVES GREECE A COUNTRY OF OPPORTUNITIES ATHEX A PLATFORM FOR DEVELOPMENT Page 15
Privatisation Initiatives in Full Force An ambitious privatisation program including infrastructure and real estate development will reallocate assets and economic activity from the public to the private sector Provide impetus to the critical sectors of the economy Attract foreign investments Create jobs Support growth Significant revenue potential: 15 billion by the end of 2012 50 billion in total until 2015 Page 16
Focus on Green Development Renewable Energy Greece can be turned into a major energy hub of renewable energy sources Ideal conditions for wind and solar energy wind and solar parks under construction Areas with geothermal potential explored 20/20/20 offers new investment opportunities Waste Management Numerous initiatives for waste management facilities and technology development Treatment and disposal of municipal solid waste Energy recovery from organic waste Wastewater and sewage treatment Page 17
Greece A Masterpiece you can Afford More than 6,000 islands; 15,000 km coastline 4 th most popular tourist destination in the EU (2010) 5 th position globally in tourism infrastructure (WEF) 17 th in tourist arrivals globally (2010) 21 st in global tourism revenue (2010) Investment opportunities from development of Conference centres Golf courses Marinas Health tourism and SPA centres In 5 years revenues from tourism expected to exceed 50 billion Page 18
Traditionally Strong in Shipping Greece is a global shipping force 1 st in terms of total capacity 4 th in terms of numbers of ships The shipping industry contributes 4.5% to the Greek GDP and creates 160,000 jobs Greek shipping is thriving despite the economic crisis and has further upside potential 762 vessels New orders: $ 35 billion Modernisation: $ 10 billion Maritime education Safety and environmental production Source: UN 2010 Page 19
CONTENTS THE GREEK CAPITAL MARKETS ATHEX INITIATIVES GREECE A COUNTRY OF OPPORTUNITIES ATHEX A PLATFORM FOR DEVELOPMENT Page 20
Stimulating Growth and Investment ATHEX provides a well-regulated and transparent platform for investment in the Greek opportunities We strive to support the Greek economy in its current turning point Informing international investors globally for the country s Drivers of Growth, New Initiatives and Innovations Supporting the Greek Government to deliver its Privatization Program Advocating for a Business Friendly Environment and a Favorable Tax Regime Page 21
Stimulating Growth and Investment (cont d) ATHEX aims to reinforce international investor confidence and to provide attractive investment propositions in a tax efficient manner Our product suite and investment framework are continuously developed and enhanced to cater for new opportunities: REITs ETFs (Regional and Local) Closed End Investment Companies Corporate Bond Market (HYBM) Green Exchange Page 22
THANK YOU! Q&A