Experience Vlerick Day - Mathieu Luypaert Brussels

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FINANCE IN THE NEWS

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STOCK MARKET EVOLUTION (S&P 500)

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STOCK MARKET EVOLUTION (EUROSTOXX 50)

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UNREST IN MIDDLE EAST

Stock market reaction January-February 2011

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IMPACT EARTHQUAKE JAPAN

Hurricane Katarina (S&P 500), 2005

Tsunami (Sri Lanka All Share), 2004

Pearl Harbour (DJI), 1941

Earthquake Kobe (Nikkey 225), 1995

September 11 2001 (S&P 500)

Recent earthquake (Nikkey 225), 2011

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EUROPEAN PUBLIC DEBT LEVELS

Public debt 2012 (%GDP)

EU (27 ) 85.3Belgium 99.6Germany 81.9Ireland 117.6Greece 156.9Spain 84.2France 90.2Italy 127.0Luxembourg 20.8Netherlands 71.2Austria 73.4Poland 55.6Portugal 123.6United Kingdom 90.0

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BELGIAN GOVERNMENT BONDS 10Y

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CONFIDENCE LEVELS REMAIN LOW

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RAISING EQUITY: IPOS Fashion:

Samsonite (Hong Kong): $1.25 bio

Prada (Hong Kong): $2.14 bio

Internet/Social media: Linkedin (NYSE): $405 mio

Groupon (Nasdaq): $700 mio

Facebook (Nasdaq): $16 bio

Zynga – Farm Ville (Nasdaq): $1 bio

Workday (NYSE): $637 mio

Bankia (Madrid): € 3.1 bio

Japan Airlines (Tokyo): € 6.3 bio

Evonik (Frankfurt): € 2 bio

Seaworld (NYSE): $700 mio

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FACEBOOK IPO

Amount raised: $ 16 bio ($38 x 421 mio)

Total Valuation: $104 bio

Dual-class shares

Zuckerberg has 18% ownership but 57% of voting rights

At market value of $104 bio: 900 mio users $115/user

Revenues: $ 4.04 bio P/S= 26

Profit: $ 720 mio P/E= 144

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FACEBOOK IPO

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B-POST FIRST IPO IN BRUSSELS IN MORE THAN THREE YEARS

Exit of CVC (25%-30% shares)

CVC will keep 15%

Belgian government: 50% + 1 share

Value estimted around €3 bio

Syndicate of banks responsible for IPO:

JP Morgan, Nomura, BNP Paribas Fortis, Morgan Stanley, UBS, KBC, ING, Belfius and Royal Bank of Canada

High dividend yield (6-8%)

26000 FTE

10.5 letters a day

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TOP IPOS IN BRUSSELS AND THEIR PERFORMANCE Source: De Tijd

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HOLLYWOOD DISCOVERS CROWDFUNDING

CANNES, France--The Cannes Film Festival can sometimes make room for someone a little different. Someone, say, like Jeremy Saulnier, a little-known director who, at 36, has used a little pluck and plenty of Kickstarter to defy the stereotypes of the world's most prestigious (and expensive) festival.

Thanks to the democratizing advantages of crowdfunding, Saulnier is showing an alternative path to the normally elite precincts of the Cannes Film Festival. Saulnier’s film "Blue Ruin" isn't like most here, which are financed lavishly by foreign distributors, Hollywood studios or government film funds.

Saulnier and his wife liquidated their retirement accounts, refinanced their home and ran up well over a $100,000 in credit-card debt to make the movie. But the real key came when, needing tens of thousands of dollars to trigger cast and crew deals, Saulnier put his project on Kickstarter. He raised the necessary $35,000 in a matter of weeks.

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RAISING DEBT: RECENT BOND ISSUES

IBM (AA-): July 2012 $1 bio (1.875% - 10 years)

Walt Disney (A): February, 2012 $1 bio (1.25% - 3 years)

$0.4 bio (2.55% - 10 years)

Dr Pepper (BBB): $500 mio (2.7% - 10 years)

MGM Resorts International (B-): March, 2012 $1 bio (7.75% - 10 years)

Very succesful recent issues by Belgian companies (Roularta, ETEX, AB Inbev, Kinepolis, CFE, Arseus, Omega Pharma, Fluxis, DEME, Vandemoortele, Eandis, DEME, Delhaize,…)

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Largest company ever according to market cap!

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Jump of $ 50 bio!!

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CASH GIANTS S&P500 STOXX600 Source: De Tijd

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EVOLUTION INTEREST RATES

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EVOLUTION INFLATION

“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. “

Sam Ewing

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RECENT TRANSACTIONS

Universal - EMI ($1.9 bio)

Berkshire Hathaway/3G – Heinz ($23 bio)

AB Inbev – Modelo ($20.1 bio)

UPS - TNT Express ($7 bio)

Dell buyout ($24.4 bio)

Liberty Global – Virgin Media ($16 bio)

American Airlines – US Airways (stock swap- combined market cap of $10 bio)

Yahoo - Tumblr

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€ 9.5

Source: Bloomberg

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DELL BUYOUT

24.4 bio USD (13.65 per share) Michael Dell: 15% + 700 mio USD Silver Lake: 1 bio USD Microsoft: 2 bio USD subordinated loan Syndicated bank loan: 15 bio USD

Rival offer Carl Icahn and Southeastern Asset Management!

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MEDIAN WEALTH PER HOUSEHOLD Source: De Tijd

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HOW LONG TO BE A MILLIONAIRE?

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EU AGREES TO LIMIT BANKER BONUSES

File - In this Sept. 7, 2010 file photo, members of Oxfam are dressed as bankers during a demonstration outside of a meeting of EU finance ministers at the EU Council building in Brussels. Top European Union officials late Wednesday, Feb. 27, 2013 struck an agreement on a package of financial laws that includes capping bankers' bonus payments at a maximum of one year's base salary. The bonuses will only be allowed to reach twice the annual fixed salary if a large majority of a bank's shareholders agrees. (AP Photo/Virginia Mayo, File)(Credit: AP)

www.salon.com

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Do you see the link?

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http://business.time.com

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WHO MASTERS THE FIELD OF FINANCE?

FORBES: World’s Billionaires

Rank Name CitizenshipNet Worth

($bil)

1 Carlos Slim Helu Mexico 73

2 William Gates III United States 67

3 Amancio Ortega Spain 57

4 Warren Buffett United States 53.5

5 Lawrence Ellison United States 43

6 Charles Koch United States 34

7 David Koch United States 34

8 Li Ka-shing Hong Kong 31

9 Liliane Bettencourt France 30

10 Bernard Arnault France 29

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FEEL LIKE SOME MORE?

Executive Master Class Corporate Finance (Fall 2013)

Executive Master Class Controllership (spring 2014)

Financial Management for Non-Financial Managers (September 2013)

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