In the the center of financing the real economy

Vincent Van Dessel CEO Euronext Brussels

WHY LIST A COMPANY

2

AMBITION IS KEY

3

LISTING PUTS AN ISSUER IN A NEW DIVISION

4

Listing gives visibility (and credibility) and facilitates funding

Gives liquidity and market valuation for existing shareholders, including families, private equity, venture capitalists, banks…

The issuer is forced to adopt good corporate governance principles and becomes more professional

Creates own takeover money as well as rewarding schemes for staff

LISTING IS SOCIALLY RESPONSIBLE

5

Listing allows to grow without giving up control

Listing allows to keep decision center in Belgium

Listed companies are by far the ones creating the biggest employment growth

Listing ensures continuity on the long term

BRUSSELS MARKET PLACE

DIFFERENT PLAYERS MAKE THE ELECTRONIC MARKET

7

The Exchange is the place where issuers meet investors via the members (brokers or traders)

Issuers Members Investors

Convertibles

Exchange

Options, futures Indices

Broker = intermediary

Trader = Proprietary trading

Retail

Institutional

• Pension fund • Mutual fund • Insurance Cies • Asset manager • Holding • Hedge fund,...

• Active • Long term

• Classic • e-broker • Algorithmic

• Market maker • Liquidity provider • High frequency trader

NEW LISTINGS 1H 2014

8

Source Euronext as of June 2014

GENTICEL, EURONEXT, ONTEX, arGEN-X

9

NUMBER OF (DOMESTIC) IPO’S SINCE 1972 IN BRUSSELS

2 0 0 0 0

2 2 2 3

8 5

2 4 3 2

0 3

1 1 4

10

16 17

6

2 2

7

2

7 6 9

4 1 0 0 0

4 3 4 3

2

4

7

1

1

2

2

5

1 4

3

1

1 1 1 0

1

6

9 6

7

1 1 0

0 0

5

10

15

20

25

30

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Free Market

Alternext

Euro-NM

Second Mkt

First Mkt

IPO’S AND DELISTING

10

-20

-15

-10

-5

0

5

10

15

20

25

30

Evolution of IPO's and delsitings

IPO

Delisting

MARKET SHARE BRUSSELS VS EURONEXT

11

11,3% 11,5%

11,8% 12,0%

13,6%

12,9% 12,9% 13,0% 13,1% 13,2%

16,5%

15,3%

11%

12%

13%

14%

15%

16%

17%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-08

Nb of domestic issuers : Brussels vs Euronext

BRUSSELS MARKET CAP

12

7 8 10 11 8 9 8 8 9 10 8 8 10 15 19 26 37 34

54 66

50 55 53 70 66 74

94

126

208

185 197

186

122 137

201

245

300

264

120

181 200

177

227

272

295

0 €

50 €

100 €

150 €

200 €

250 €

300 €

350 €

Bill

ions

Evolution of market capitalization and number of domestic issuers in Brussels

AVERAGE VALUE OF A LISTED COMPANY

13

0200400600800

100012001400160018002000

Average size of company is 60 times bigger than 40 years ago But 12,8 times corrected for inflation

Million €

EQUITY CORPORATES 2010 – 2014 YTD BRUSSELS

14 July 2014

AEDIFICA ABLYNX ABLYNX ABLYNX ABO GROUP AEDIFICA

AEDIFICA AEDIFICA ARGEN-X ATENOR AGFA-GEVAERT

ASCENCIO

ASCENCIO

BEFIMMO

BEFIMMO BEFIMMO BEFIMMO BEFIMMO

BPOST

CARDIO3 BIOSCIENCES

CARDIO3 BIOSCIENCES CARE PROPERTY

CFE

COFINIMMO

COFINIMMO

COFINIMMO

COFINIMMO

COFINIMMO

COLRUYT

ECONOCOM ECONOCOM

ELIA

EURONAV

EURONAV

EURONAV

EURONAV

EURONAV

FNG GROUP FOUNTAIN

GALAPAGOS GIMV

IBA IBA INTERVEST

KBC

KBC

LEASINVEST

LOTUS BAKERIES

MDXHEALTH

MONTEA

MONTEA

MONTEA

MONTEA MONTEA

NYRSTAR

ONTEX

OTHERS

OTHERS

OTHERS

OTHERS QRF

RETAIL ESTATES

RHJ INTERNATIONAL

THROMBOGENICS

THROMBOGENICS

TIGENIX

TIGENIX

WAREHOUSES DE PAUW

WAREHOUSES DE PAUW

WAREHOUSES DE PAUW

WERELDHAVE BELGIUM

0

500

1.000

1.500

2.000

2010 2011 2012 2013 2014 YTD

BONDS CORPORATES 2008 – 2014 YTD BRUSSELS

15 July 2014 Excluding bonds issued by Financial Institutions and pure Public sector

Christian Dior Bekaert

Bekaert

AB InBev

Solvay

Aquafin Cofinimmo

Fluxys

Fluxys

Banimmo Banimmo Intervest Off.

GBL

Befimmo

Cofinimmo Conv.

Delhaize Delhaize

Immobel

Immobel

Kinepolis CFE

Arseus

Etexco

Roularta Atenor

Eandis

Eandis KBC Groep

KBC Groep

KBC Groep

KBC Groep

DEME WDP

WDP

Vrancken Pommery Montea

Pinguinlutosa VGP VGP

UCB

UCB

UCB

UCB Eandis

Eandis

Remy Cointreau LEASINVEST

Lorraine Bakeries

Elia

Elia

Eandis

Hamon Home Invest Belgium Ghelamco Eandis Eandis

KBC Groep

Montea Agfa-Gevaert Agfa-Gevaert

Elia

0

500

1000

1500

2000

2500

3000

3500

4000

2008 2009 2010 2011 2012 2013 YTD 2014

SECONDARY OFFERINGS 2014

16 Source: Euronext as of 30 June 2014 *Includes all new shares offers

**Includes corporate and convertible bonds

New shares offer*s / Country

Bond issues** / Country

Amsterdam 2%

Brussels 41%

Lisbon14%

Paris 43% Brussels

49%

Lisbon 20%

Paris 31%

TECHNOLOGY COMPANIES ON ENTERNEXT

17 20 8

180

number of TMT companies followed by Morningstar

Amsterdam

Brussels

Lisbon

Paris

ENTERNEXT TECHNOLOGY MARKET CAP

3,16

4,67

0,73

18,16

market cap of TMT companies followed by Morningstar

Amsterdam

Brussels

Lisbon

Paris

2014 CHALLENGES • Enhance the attractiveness of listing , especially for small and

midcaps, including bonds • Promote Alterbonds as bond listing platform (private placements)

• Avoid gold plating

• Fiscal or regulatory incentives

• Public Auction modernization • Transparent secondary market

• Family business

• Crowdfunding

• Private mini-bonds

• Other financing instruments (letters of exchange, securitized loans…)

• Warning on participants (experienced investors only)

19

PROPOSALS EURONEXT BRUSSELS FOR THE GOVERNMENT

20

1. Encourage dividend distribution in shares by not taxing the dividends paid in shares (as the money remains in the company)

2. Adapt the fiscal advantage of savings accounts to dividends and capital increases

3. Suppress transaction tax on listed SME’s (market cap < 1 billion€)

4. Reward stable shareholders to increase liquidity