Euronext: Gateway to the €uro-zone

HollandFrance

Portugal

Belgium

November 2006

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Euronext today

The world’s first integrated cross-border exchange Operating in 5 European countries and the U.S.

•Europe’s largest central orderbook exchange

•The world’s second largest derivatives market Business worth €1,700 billion traded every day

•A leading supplier of exchange trading technology Used worldwide by most leading cash & derivatives exchanges

•A listed company - market capitalisation of € 8 billion Intention to merge with NYSE subject to regulatory and shareholder approval

Source: Euronext

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Euronext’s competitive position in Europe

Euronext26%

LSE28%

Deutsche Börse12%

Spanish Exchanges9%

SWX Group9%

OMX 8%

Borsa Italiana8%

MARKET CAPITALISATION

European cash equity market capitalisation

(year end 2005)

CENTRAL ORDERBOOK

Value traded

(€ billion, 2005)

Source: FESE

• Largest equity market in continental Europe

• Largest central orderbook in Europe

0

200400

600

800

1,0001,200

1,400

1,6001,800

2,000

Euron

ext

LSE

Deuts

che

Börse

Borsa

Ital

iana

Spani

sh E

xcha

nges

OMX

SWX G

roup

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Sector comparison Euronext vs. LSE

Euronext – largest in Technology, Consumer Goods, Utilities, Industrials

LSE – largest in Financials, Basic Materials, Oil & Gas

Total market cap = €2,654 billion* Total market cap = €2,728 billion**

Source: Euronext & LSE, ICB classification * As at 31/03/06, excludes multi-listed stocks ** As at 28/02/06

LSE domestic

9%

12%

8%

8%

1%

6% 4%

Financials29%

Basic Materials7%

Oil & Gas16%

Euronext domestic

4%

10%

25%5%

14%

4%Technology

4%

Utilities8% Consumer Goods

14%

Industrials12%

Basic Materials

Consumer Goods

Consumer Services

Financials

Health Care

Industrials

Oil & Gas

Technology

Telecommunications

Utilities

Unclassified

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Euronext – International Listings

Breakdown of listed companies

• 25% of Euronext’s 1,300 companies are international

• 7 companies from Israel

Selected international companies:

Arcelor Mittal, Corus Group, Daiwa, Deutsche Bank,

Exxon Mobil, Fiat, Hitachi, Honda, HSBC, Maroc

Telecom, Mitsubishi Electric, NEC, SES Global,

Sharp…...

Selected domestic companies:

ABN Amro, AXA, BNP Paribas, Carrefour, Danone, EDF,

Fortis, France Telecom, GDF, Heineken, ING Group,

L’Oréal, LVMH, Michelin, Philips, Renault, Royal Dutch

Shell, Sanofi-Aventis, Société Générale, Suez, Total,

Unilever……

75%

25%

International Companies

Domestic Companies

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Top ranked for raising fresh capital in the world

• € 17.2 bn fresh capital raised, 78 new listings in 2005……continuing with € 13.6 bn raised, 101 new listings year-to-date 2006.

• The world’s largest IPO 2005: EDF

• An additional mkt cap of € 165 bn since Jan 2005

Selected Deals

Milestones:

Key market for raising capital

Highly active hi-tech segment

More privatisations than any other exchange

Large caps

EDF (Electricité de France) Utilities - electricity € 7,000m

KKR Private Equity Specialty finance $ 5,000m

Mid caps

Eutelsat Satellite network € 860m

Tom Tom GPS navigation € 467m

Small caps

Environnement Environmental measurement € 23m

ExonHit Therapeutics Biotechnology € 3.8m

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Unique access to European asset managers Geographical split of equity fund assets typifies wider European investment profile

Euro-zone countries dominate – 71.5% of total equity funds under management

Fragmented market – cross-border access is key

Best of both worlds: access to the Euro-zone… as well as UK based investors… > 40% of

trading volume by UK based investment banks

Source: European Fund and Asset Management Association

Outside €uro-zone

28.5%

€uro-zone71.5%

Breakdown per area

Euronext23.8%

UK19.6%

Others8.9%

Euro-zone (excl. Euronext)

47.7%

The European Equity Fund Market

0%

5%

10%

15%

20%

25%

30%

Listing requirements

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Listing requirements – overview

Market Description Listings and ongoing requirements

Eurolist Main

Board

EU regulated market for large, mid & small caps

* Minimum 25% shares distributed to the public * Three-year track record required * IFRS or recognised accounting standards

Ongoing obligations* Audited FY and audited/un-audited half-year accounts* Timely disclosure

* Two-year track record * IFRS or local GAAP with reconciliation table

Ongoing obligations less demanding* Audited FY accounts, un-audited half-year reports * Simplified reporting methods * Timely disclosure

Alternext Junior Market

Exchange regulated market for mid & small companies

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Eurolist – the main board

One cross-border regulated market - one rule book

One single cross-border trading platform

Borderless: Companies are classified in alphabetical order and identified on

the basis of capitalization rather than on geographic location

Large caps (group A: > €1 billion)

Mid caps (group B: between €150 million and €1 billion)

Small caps (group C: less than €150 million)

• Equal opportunity for international companies to join key indices

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Eurolist – key features Language

English – fully accepted for entire listing process and documentation, including prospectus

Listing instruments Shares Depositary Receipts (EDR, GDR, ADR) Corporate bonds Derivative instruments, including Convertibles, Options, Warrants and Futures Funds

Currency of listing Euro - the world’s second most important currency Or any other major currency

Regulatory environment – tailor-made for cross-border business Sound regulatory framework – provides credibility No Sarbanes Oxley regulation!

Alternext

the junior market

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Alternext – the junior market

Why Alternext? More than 1m €uro-zone SMEs eligible…

…but substantially fewer than 1% listed!

Alternext is an exchange-regulated market;

Designed for small and mid sized companies

Open for companies from all sectors and countries

Launched in France in May 2005, Belgium in June 2006, The Netherlands in Q4 2006

Broad €uro-zone access Same 4-country electronic trading platform for Eurolist and Alternext

Use of a Listing Sponsor is mandatory

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Alternext – key listing requirements

2 year company track record (exempt for funds)

IFRS, US GAAP or local GAAP with IFRS reconciliation tables Audited FY accounts, un-audited 6 months report

Market access:

Fast track dual listing through recognised market status Access via offering circular for companies listed on another market

Ongoing obligations simplified

Public offeringAccess to retail and/or qualified investors

Private placementAccess to qualified investors only

Minimum free float: € 2.5m Minimum placing: € 5mProspectus cleared by regulator

EU Prospectus Directive

Offering circularNot cleared by regulator; disclosures under responsibility of the Listing Sponsor & Issuer

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Alternext – sector breakdown*

Alternext has achieved its target as a broad marketplace for SMEs

* number of companies - ICB (Industry Classification Benchmark)

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Oil Equipment & Services

Forestry

Building Materials & Fixtures

Heavy Construction

Electronic Equipment

Delivery Services

Business Support Services

Waste and Disposal Services Distillers & Vintners

Durable Household Products

Home constructions

Consumer electronics

Clothing & Accessories

Personal Products

Recreational Products

Medical Equipment Medical Supplies

Biotechnology

Specialty Retailers

Media Agencies

Publishing

Travel & Tourism

Fixed Line Telecommunications Mobile Telecommunications

Electricity

Real Estate Holding & Development

Specialty Finance

Computer Services

Internet

Software

Computer Hardware

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Alternext – size profile

Alternext’s target company size of €20m - €250m achieved.

No micro-caps… …better liquidity

Distribution of companies by equity market cap

Alternext

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%

€m

Num

ber

of c

ompa

nies

Distribution of companies by equity market cap

AIM

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

£m

Num

ber

of c

ompa

nies

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Alternext – market structure and liquidity

Alternext AIM

Average performance since Alternext launch (May 2005)

29% 12%

Median market cap € 37m € 23m

Average monthly number of transactions per stock

501 215

Overall velocity 82% 90%

Percentage of stocks with greater than 50% velocity

54% 24%

Source: Euronext & LSE - H1 2006

Alternext today

Alternext vs. AIM

Number listed companies 61

Total market capitalisation € 2.6 billion

Average deal size € 8.0m

Deal size range € 2.7m to € 23.3m

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Alternext: IPOs and investor base

IPOs: 80% institutional investor

participation, underpinning valuations

Investors: Institutions from 14 countries Broad continental European

institutional take-up Strong US-UK acceptance

Origin of institutions(as of September 2006)

Germany11%

Italy1%

Austria1%

Australia1%

Euronext zone55%

U.S.3%

U.K.16%

Luxembourg5%

Spain3%

Sweden2%

Switzerland2%

Alternext: Truly pan-European

Case Study

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Alternext case study: Environnement SA

Environnement is the European leader in designing, manufacturing, and selling equipment and systems for air and water quality measurement and evaluation. Sales: France (83.2%), Italy (10.3%), and United States (6.5%).

Key figures (2004):

Revenues: € 30.5m

Net profit: € 799,000

IPO - 19 January 2006:

Valuation: € 57m

Trailing PE ratio: 71

Funds raised: € 23m

11.8x oversubscription

Current valuation: € 71m

Bookrunner: Crédit du Nord

Value maintained at +25% after 9 months

Market capitalisation

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80

Jan-06 Oct-06

euro

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Why Euronext?

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Why Euronext?

Gateway to the €uro-zone

• Publicity: cross-border access to investors, customers & business partners• Acquisition currency: €uro – a key currency• Huge pool of assets under management• Single entry point gives broad European access for listing and trading

Leading cross-border exchange with a pan-European reach

• Top-ranked globally for capital raising• Largest central order-book trading volumes in Europe • International companies can join local indices• Broad service offering for early stage and mature companies