IRISH STOCK EXCHANGE
LOCAL SUPPORT
GLOBAL REACH
FACTS & STATISTICS
ON THE IRISH STOCK EXCHANGE,
ITS LISTED COMPANIES AND
THE ISE-RELATED SECURITIES INDUSTRY
OCTOBER 2014
OUR VISION
#1 EU EXCHANGE
CHOICE FOR ISSUERS
OF GLOBAL FIXED
INCOME, FUNDS AND
IRISH SECURITIES
BENEFITS OF
HAVING A LOCAL
STOCK MARKET
• Source of equity funding for enterprise
• Lowers the cost of capital for domestic firms
• Creates local knowledge and specialisation
• Delivers macroeconomic benefits including
greater R&D intensity and higher levels of foreign
direct investment (FDI)
Research compiled by Indecon
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
1
KEY STATISTICS
3
MARKETS
80
THE ISE
AN INTERNATIONAL
BUSINESS
COUNTRIES WITH
ISSUERS ON ISE
MARKETS
Main
Securities Market
Enterprise
Securities Market
Global
Exchange Market
SECURITIES LISTED
30
€
52
46
Irish Government Bonds
MEMBER FIRMS
Equities
2,196
Funds and sub-funds
24,169
Debt
37
INTERNATIONAL
MEMBERS
Source: ISE - September 2014
2
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
3
THE ECOSYSTEM SUPPORTING LISTING AND TRADING ON THE ISE
STOCKBROKERS
INVESTMENT FIRMS
INTERNATIONAL BANKS
Member firms supporting trading,
corporate broking and research
THE SECURITIES
INDUSTRY
EMPLOYING
HIGHLY SKILLED
PROFESSIONALS
FUNDS
IRISH
GOVERNMENT
BONDS
Equity sponsors
and ESM advisors
Fund sponsors
DEBT
Debt listing agents
EQUITIES
Legal and accounting
professionals supporting listing
LAWYERS
ACCOUNTANTS
RESEARCH ANALYSTS
4
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
5
ECONOMIC IMPACT AND CONTRIBUTION IN IRELAND
IRISH OPERATIONS OF ISE-RELATED ECOSYSTEM
DIRECT
ECONOMY WIDE
€m
€m
Output/Sales Revenues
from Irish operations
€377m
€704m
Tax Contribution
(incl. Stamp Duty)
€230m
-
Irish Employment
Incomes Supported
€177m
€314m
Irish Non-Labour Business
Expenditure
€130m
€242m
GVA/GDP Contribution
€207m
€325m
Irish Employment
Supported - Full-Time
Equivalents (FTEs)
2,101
2,977
€
THE SECURITIES
INDUSTRY
SUPPORTING THE
LOCAL ECONOMY
€
Source: Estimated impact based on Indecon analysis of 2012 figures
6
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
7
PROFILE OF COMPANIES ON ISE MARKETS
ISE MARKET
# COMPANIES
Main Securities
Market (MSM)
26
Enterprise
Securities
Market (ESM)
26
73%
PRIMARY LISTED
IN IRELAND
88%
DUAL LISTED
ISE LISTED
COMPANIES
MARKET PROFILE
Total
52
SECTORAL PROFILE
Exploration
29%
Financial Services
19%
Agri/Food/Beverages
17%
Media and Leisure
7%
Construction
8%
Transport
6%
ICT
4%
Life Sciences, incl.
Pharma and Medtech
4%
Business Services
2%
Retail/Wholesale
2%
Other Manufacturing
2%
Source: ISE - September 2014
8
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
9
FOOD/AGRICULTURE
FINANCIAL SERVICES
/REITS
EXPLORATION
ISE LISTED
COMPANIES
SECTORAL
CLUSTERS
Source: ISE - September 2014
10
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
11
WORLDWIDE EMPLOYEES
EMPLOYEES
263,301
260,215
256,315
271,819
286,670
284,136
258,055
260,000
€83bn
REVENUES
2012
2011
2010
2009
2008
2007
€8bn
EARNINGS
€7,273m
€6,160m
€6,783m
€8,140m
€7,976m
2009
2010
2011
2012
€82,867m
2012
2008
€78,653m
2011
€8,168m
€73,491m
2010
2007
€78,193m
2009
€6,836m
€80,980m
2008
2006
€90,679m
2007
WORLDWIDE EARNINGS
€76,561m
WORLDWIDE REVENUES
2006
ISE LISTED
COMPANIES
GLOBAL
FOOTPRINT
2006
€
Source: Indecon analysis based on Bloomberg 2012 data. Figures exclude Tesco and Diageo.
12
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
13
€23.5bn
EQUITY FUNDS
RAISED 2004 - 2013
FUNDS RAISED
Irish Companies
Other Companies
ISE LISTED
COMPANIES
RAISING FUNDS
INTERNATIONALLY
€bn
% OF TOTAL
€20.1bn
85.4%
€3.4bn
14.6%
41
NEW COMPANY LISTINGS ON ISE MARKETS 2004 - 2013
MINCON
GAMEACCOUNT NETWORK
CPL RESOURCES
C&C GROUP
HIBERNIA REIT
ISEQ EXCHANGE TRADED FUND
FASTNET OIL AND GAS
PETROCELTIC INTL
GREEN REIT
TOTAL PRODUCE
AER LINGUS GROUP
ZAMANO
FIRST DERIVATIVES
SMURFIT KAPPA GROUP
GREAT WESTERN MINING
PETRONEFT RESOURCES
ORIGIN ENTERPRISES
FALCON OIL AND GAS
MERRION PHARMACEUTICALS
ARYZTA
Source: ISE
*Equity funds raised relate to all listings and include equity monies raised through introductory offers, share placings,
open offers, rights issues, share allotments, and other means.
67%
INTERNATIONAL INVESTORS
IN IRISH LISTED COMPANIES
Source: Federation of European Securities Exchanges (FESE) - market research 2007
14
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
15
ECONOMIC IMPACT AND CONTRIBUTION IN IRELAND
IRISH OPERATIONS OF ISE LISTED COMPANIES
DIRECT
ECONOMY WIDE
€m
€m
€12.1bn
€24.0bn
Irish Employment
Incomes Supported
€2.5bn
€4.2bn
Irish Non-Labour
Business Expenditure
€7.3bn
€15.0bn
€5.3bn
€9.5bn
Output/Sales Revenues
from Irish Operations
€
ISE LISTED
COMPANIES
SUPPORTING THE
IRISH ECONOMY
€
GVA/GDP
Contribution
Irish Employment
Supported – Full Time
Equivalents (FTEs)
49,148
97,435
Source: Estimated impact based on Indecon analysis of 2012 figures. Figures exclude Tesco and Diageo.
16
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
17
TOP 6 MOST SIGNIFICANT FACTORS IN COMPANIES
DECISION TO LIST ON IRISH STOCK EXCHANGE
WHY COMPANIES
LIST ON THE ISE
€
Access to Irish investors
88.4%
Access to international investors
80.8%
Achieving the best valuation
for the company
77%
Ability to maintain or grow liquid
market for shareholders
72%
Profile of company raised with
investors, customers, suppliers,
other finance providers and employees
Access to option of dual listing
with certain international markets
69.2%
68%
Source: Indecon analysis of Confidential Survey of ISE-listed Companies
18
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
19
INTERNATIONAL PARTNERS
WORLD CLASS ACCESSIBLE SYSTEMS
IRISH LISTED
COMPANIES
#1 TRADING
VENUE
20
TRADING
CLEARING
SETTLEMENT
XETRA
EUREX
CREST
EQUITY TRADING MEMBERS
SOURCING GLOBAL INVESTORS
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
21
FACTORS INFLUENCING DECISIONS BY DEBT ISSUERS
TO LIST ON ISE - VIEWS OF ISE DEBT LISTING AGENTS
WHY GLOBAL
DEBT ISSUERS
CHOOSE THE ISE
Efficiency of listing process
100%
Experience and reputation
of the ISE and the Central Bank
100%
Expertise and technical knowledge
100%
Communication and
willingness to engage
88.9%
Competitive listing fees
88.9%
Choice of markets
66.6%
Source: Indecon Confidential Survey of Irish Stock Exchange
Debt Listing Service Providers
22
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
23
DEBT LISTING
GLOBAL FOOTPRINT
AUTOPISTAS METROPOLITANAS DE PUERTO RICO
BBVA
24
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
25
EUROPE 2013
ACROSS 48 EXCHANGES
1,000
5,000
4,562 4,562
2,000
10,000
20,000
Malta Stock Exchange
SIX Swiss Exchange
Borsa Istanbul
CEESEG - Vienna
Oslo Børs
Warsaw Stock Exchange
NASDAQ OMX Nordics & Baltics
London Stock Exchange
NYSE Euronext
Deutsche Börse
Irish Stock Exchange
Luxembourg Stock Exchange
Abu Dhabi SE
Bermuda SE
Mauritius SE
Saudi Stock Exchange - Tadawul
Muscat Securities Market
Bursa Malaysia
Athens Exchange
Casablanca SE
Ljubljana SE
Cyprus SE
New Zealand Exchange
Taiwan SE Corp.
Malta SE
Egyptian Exchange
Amman SE
Budapest SE
TMX Group
Colombo SE
BM&FBOVESPA
Japan Exchange Group - Osaka
Japan Exchange Group - Tokyo
Borsa Istanbul
Hong Kong Exchanges
Shenzhen SE
Lima SE
The Stock Exchange of Thailand
Colombia SE
Tel Aviv SE
Mexican Exchange
Moscow Exchange
GreTai Securities Market
Shanghai SE
Johannesburg SE
Singapore Exchange
Oslo
SIX Swiss Exchange
BSE India
BSE India
Wiener Borse
Luxembourg SE
NYSE Euronext (Europe)
National Stock Exchange India
NASDAQ OMX Nordic Exchange
Korea Exchange
London Stock Exchange
Irish SE
Deutsche Borse
Luxembourg SE
Source: Indecon analysis of FESE data (WFE data for London Stock Exchange)
Source: Indecon analysis of World Federation of Exchanges (WFE), Federation of European Securities Exchanges (FESE)
and London Stock Exchange data
#2 NEW DEBT LISTINGS
#3 WORLDWIDE 2013
27
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
26
5,000
21,719
25,000
IRISH STOCK EXCHANGE
DEBT LISTINGS
30,000
6,000
4,000
15,000
3,000
0
FACTORS INFLUENCING DECISIONS TO LIST INVESTMENT
FUNDS ON ISE – VIEWS OF ISE FUND SPONSORS
WHY GLOBAL
INVESTMENT
MANAGERS
CHOOSE THE ISE
Efficiency of listing process
100%
Experience and reputation
of the ISE and Central Bank
87.5%
Open communication
and willingness to engage
75.0%
ISE Competitive listing fees
75.0%
Expertise and technical knowledge
62.5%
Source: Indecon Confidential Survey of Irish Stock Exchange Funds Listing Service Providers
28
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
29
GLOBAL INVESTMENT MANAGERS
IRISH STOCK EXCHANGE
#4 FUND LISTING
WITH ISE LISTED FUNDS
WORLDWIDE 2013
7000
6000
5000
4000
2,352
3000
2000
1000
0
Japan Exchange Group - Tokyo
TMX Group
Budapest SE
BM&FBOVESPA
Santiago SE
Euronext
Shenzhen SE
Moscow Exchange
NASDAQ OMX Nordic Exchange
NYSE
Mexican Exchange
National Stock Exchange India
Irish SE
Deutsche Börse
BME Spanish Exchanges
Luxembourg SE
Source: Indecon Analysis of World Federation of Exchanges (WFE) and ISE fund and sub-funds data
Global investment managers with ISE listed funds
30
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
31
VIEWS ON THE ISE
“A key advantage of the ISE is the flexibility
of approach that it can offer to issuers
via GEM…The openness of the ISE to
converse with legal counsel/issuers directly
has become a marked advantage over its
competitors.”
DEBT LISTING AGENT
“The ISE is still seen as the exchange of
choice for listing investment funds. Clients
appreciate the smooth listing process.
Costs are on a par with various exchanges
around the world.”
INVESTMENT FUND SPONSOR
“The ISE was important to the
development of the company
as it enabled us to raise equity
in order to grow the business
and pay down debt.”
ISE LISTED COMPANY
Source: Indecon Research of market participants 2013
32
IRISH STOCK EXCHANGE LOCAL SUPPORT GLOBAL REACH
Indecon statistics and analysis from research conducted on behalf of the Irish Stock Exchange published October 2014
Irish Stock Exchange
28 Anglesea Street
Dublin 2, Ireland
T +353 1 617 4200
F +353 1 677 6045
www.ise.ie