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8/10/2019 Grzegorz Zawada_Listings Session
1/15
Wersja robocza
NewConnectPROPOSITION FOR SME COMPANIES
September 2014
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EU GDP (%) 2008 2009 2010 2011 2012 2013f 2014f
2008-2013
accumulated
GDP
Poland 5.1 1.6 3.9 4.5 2.0 1.6 2.2 20.15
Slovakia 5.8 -4.9 4.4 3.0 1.8 0.9 2.8 11.13
Malta 3.9 -2.8 4.3 1.4 1.1 2.9 1.8 11.11
Sweden -0.6 -5.0 6.6 2.9 0.9 1.6 2.5 6.19
Romania 7.3 -6.6 -1.1 2.3 0.6 3.5 2.2 5.57
Germany 1.1 -5.1 4.0 3.3 0.7 0.4 1.8 4.21
Bulgaria 6.2 -5.5 0.4 1.8 0.6 0.9 1.7 4.12
Austria 1.4 -3.8 1.8 2.8 0.9 0.3 1.8 3.31
Belgium 1.0 -2.8 2.3 1.8 -0.1 0.2 1.2 2.34
Lithuania 2.9 -14.8 1.6 6.0 3.7 3.3 3.6 1.14
Czech Republic 3.1 -4.5 2.5 1.8 -1.0 -0.9 1.6 0.80
France -0.1 -3.1 1.7 2.0 0.0 -0.2 1.1 0.62
Luxemburg -0.7 -5.6 3.1 1.9 -0.2 2.1 1.6 0.35
EU (27 countries) 0.4 -4.5 2.0 1.6 -0.4 -0.1 1.4 -0.93
UK -0.8 -5.2 1.7 1.1 0.3 1.7 1.7 -1.37
Netherlands 1.8 -3.7 1.5 0.9 -1.2 -0.8 0.9 -1.60
Euro area
(18 countries)0.4 -4.5 1.9 1.6 0.7 -0.4 1.2 -1.82
Estonia -4.1 -14.1 3.3 8.7 4.5 2.2 4.0 -1,21
Hungary 0.9 -6.8 1.1 1.6 -1.7 1.1 1.4 -4.10
Denmark -0.8 -5.7 1.4 1.1 -0.4 0.4 1.7 -4.10
Cyprus 3.6 -1.9 1.3 0.4 -2.4 -5,4 -3.9 -4.56
Finland 0.3 -8.5 3.4 2.8 -1.0 -1.4 1.0 -4.78
Spain 0.9 -3.8 -0.2 0.1 -1.6 -1.2 0.9 -5.73
Slovenia 3.4 -7.9 1.3 0.7 -2.5 -1.1 -0.1 -6.33
Portugal 0.0 -2.9 1.9 -1,3 -3.2 -1.4 0.6 -6.79
Ireland -2.2 -6.4 -1.1 2.2 0.2 -0,3 2.2 -7.57
Italy -1.2 -5.5 1.7 0.4 -2.4 -1.9 0.7 -8.72
Latvia -2.0 -17.7 -1.3 5.3 5.2 4.1 4.1 -8.95
POLANDSKEY POSITION IN THE ENLARGED EU
25 years ago Poland opened a new chapter in its history
and initiated the process of important political and socialchange and thorough economic transition.
Poland has become a major actor within the European Union.
One of the biggest countries among new EU members with
38m population.
One of the fastest growing economies in Europe with stable
and solid financial system.
The only EU country that have a positive growth rate during
the recent crisis.
Low Inflation
Stable currency
GDP growth forecast in 2014: 2.5%
2008 - 2013 accumulated GDP: 20.15%
Ratings
- A2 - Stable by Moodys
- A - Stable by S&P
- A - Stable by Fitch
Source: Ministry of Finance, Polish Central Statistical Office, Eurostat, EBOR.
Key statistics:
Economy:
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THE WSE MARKETS IN BRIEF
The Warsaw Stock Exchange organises trading in financial instruments on three markets:
MAIN MARKETin operation since 16 April 1991
supervised by the Polish FSA
notified to the European Commission as a regulated market
law and regulations implementing EU directives
NEWCONNECT
alternative trading system, working since 30 August 2007
organised, maintained and supervised by the WSE
designed for small entities and developing companies
CATALYST
debt instruments market
founded on 30 September 2009consists of two trading platforms: as a regulated market
and as an alternative trading system
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THE SME SECTOR IN POLAND
Source: Report on the Condition of the Small and Medium-Sized Enterprise Sector in Poland,
Polish Agency for Enterprise Development, 2011
STRUCTURE BY SIZE
Total contribution to the GDP: 72,3%
CONTRIBUTION TO GDP
Total share in the market: 99,8%
Microup to 9 employees
Smallbetween 10 and 49 employees
Mediumbetween 50 and 249 employees
Largeover 250 employees
Division of enterprises in Poland:
Medium
80%
Large
20%
Micro
42%
Small (w/o
micro)
11%
Medium
14%
Large
33%
Micro
96.0%
Small (w/o micro)
2.8%
Medium & Large
1.2%
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NEWCONNECT THE MARKET FOR SMEs
for SMEs
Providing solutions for the expansion of high-potential, young and innovative companies
Attracting individual investors
Allocating more resources for R&D
Performing as an enterprise incubator for start-ups
Serving as a preparatory step towards the WSE Main List
for the national economy
Developing companies that account for a substantial part of the GDP
Strengthening Polish stock market position in the CEE region as an efficient network of investors, companies and clients
A strong SME sector is a key reason for the popularity and importance of the NewConnect market.
strong demand for capital
Benefits stemming from the NewConnect market
SMEs
a great potential for a further growtha driving force of the Polish economy
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30th August 2007
c.a. 416 EUR (m)
c.a. 465 EUR (m)
2.38 EUR (bn)
438
10
17
78
11
Markets founding date
Initial offerings value *
Secondary offerings value *
Market capitalization *
Number of companies
of foreign companies
Number of new listings in 2014
Number of Authorized Advisers
Number of Market Animators
Note: as of 4
th
September 2014Number of companies as of 04.09.2014
NEWCONNECT AS A HIGH GROWTH EQUITY MARKET
283 343
610
1 227
2 001
2 5792 493
2 381
24
61
26
86
172
89
42
17
0
20
40
60
80
100
120
140
160
180
200
0
500
1 000
1 500
2 000
2 500
3 000
2007 2008 2009 2010 2011 2012 2013 1H 2014
Market cap (EUR m.*, LHS) New listings (RHS)
39 4413
58
173
54 31 4
416
30
154
110125
27
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013 1H 2014
Capital raised on NewConnect (EUR mln)
IPO SPO
Note: EUR/PLN = 4.19
http://pl.wikipedia.org/wiki/Plik:Flag_of_the_United_States.svghttp://pl.wikipedia.org/wiki/Plik:Flag_of_the_Netherlands.svghttp://pl.wikipedia.org/wiki/Plik:Flag_of_Switzerland.svghttp://forexmagnates.com/wp-content/uploads/2013/06/WSE_boczne.jpg8/10/2019 Grzegorz Zawada_Listings Session
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5% 6% 9%11%
20% 17%27%
32%
92% 92% 89%87%
77%73%
66%62%
3% 2% 2% 2% 3%
10%7% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 2009 2010 2011 2012 2013 2014
institut ional individual foreign
68
59
24
41
3237
45
37
19
24
1311
13 812
Retail
Support services
Investment services
IT
Construction
Technology
Financial services
Media
Real estate
Health care
Travel&Leasure
e-Trade
Eco-energy
Recycling
Telecomunication
Efficient access to dynamically growing companies from Poland and the CEE region
Lower trading fees compared to Main Market
Execution benefits from the stock exchange-organized market, including security of trading
NewConnect LEADleaders among NewConnect issuers
The main purpose of launching the NC Lead segment was to indicate the biggest issuers and their most liquid shares, which are most likely to fulfill the WSE
Main Market criteria.
The NC Lead segment has the following requirements:
quantitative: as capitalization, liquidity, time of functioning as a public company,
qualitative: referring to corporate governance application and appropriate performance of information requirements.
Source: WSE study
Data: as of June 2014
* as of September 2014
NEWCONNECT AS A HIGH GROWTH EQUITY PLATFORM
FOR INVESTORS
An attractive market for investors
Breakdown by industry* Investors structure in 2007-2014*
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COMPARISON TO OTHER ALTERNATIVE MARKETS
151
1836
6515
6390
1697
618
40091
55429
366
4450
9094
2580 2424
Market Capitalization (EUR m)
14 25
8764
23 21 18
181
26
171145
192
34
438
Number of companies listed
497
0
8 516 939
0
3 883
2 166
41
249 669
74 491
541
922 249
1 548 843
153 023
383 397
Athens Exchange
BME (Spanish Exchanges)
Borsa Istanbul
Bratislava Stock Exchange
CEESEG - Budapest
CEESEG - Vienna
Cyprus Stock Exchange
Deutsche Brse
Irish Stock Exchange
Luxembourg Stock Exchange
NASDAQ OMX Nordics & Baltics
NYSE Euronext
Oslo Brs
Warsaw Stock Exchange
Total number of transactions
Data: as of June 2014
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ENTRY INTO NEWCONNECT
FORMAL
REQUIREMENTS
MARKET
ASPECTS
the status of a joint-stock company
nominal value of a single share - minimum 0,10 PLN (~0,024 EUR)
unlimited transferablility of shares
the company has not been declared insolvent nor is in the process of undergoing
liquidation proceedings
cooperation with an Authorized Adviser and Market Animator
preparation of an Information Document and an audited annual financial report
issuersequity worth of at least 500k PLN (~120k EUR)
issuersexpectations vs. investorsexpectations
438 issuers on the NewConnect are competing for capital
many other enterprises interested in debut on the NewConenct
Will our equity story convince investors and win out over its competing projects in the
marketplace?
Does the offered share value keep up with dynamic changes in market share prices?
ADVANTAGES
opportunity to raise capital at a lower cost
increased reliability to banks and customers
prestige and reputation of public companythe market valuation of shares
low costs of market debut and trading
excellent exposure to investors and clients
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TYPES OF LISTINGS AVAILABLE ON NEWCONNECT
PRIVATE PLACEMENTa private offering targeted at maximum of 99 entities or individuals. Regardless of the
size of the issue, admission to trading is based on a brief informational document approved by an Authorized
Adviser by the Warsaw Stock Exchange
PUBLIC SHARE ISSUEthis path involves the same admission procedures as those applicable on the regular
market, in particular approval of the stock offering including the prospectus by the competent authority
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CORPORATE GOVERNANCE
Corporate governance rules concern broadly
understood corporate governance practices.
The Best Practices include 4 sections:
Recommendations for Best Practices
of Listed Companies;
Best Practices of Management Boards
of Listed Companies;
Best Practices of Supervisory BoardMembers;
Best Practices of Shareholders.
The Best Practices of WSE listed companies
aim at:
enhanced transparency of listed
companies,
improved quality of communication
between companies and investors,
strengthened protection of
shareholders rights, including those not
regulated by legislation, while refrainingfrom imposing a burden on listed
companies unbalanced by benefits
resulting from market needs.
www.corp-gov.gpw.pl- is the official
website of WSE devoted to the corporate
governance of listed companies.
provides information on the
implementation of The Best Practices
of WSE Listed Companiesand current
corporate governance initiatives of the
WSE and its EduPartners.
is a platform of communication between
the WSE and companies.
all WSE listed companies and other
interested parties are encouraged
to send questions and suggestions about
the content of this website.
CORPORATE GOVERNANCE OF WSE
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DISCLOSURE REQUIREMENTS AND BEST PRACTICES
Accounting Standards
More liberal requirements than in the
regulated market
Supported by the Authorized Adviser
Current reports (price-sensitive
information)
Periodic reports
quarterly
annual (audited)
National accounting standards applicable to
the place of the issuers registered office or
(under some circumstances)
Internationally recognized
Based on comply or explainformula:
Information transparency affecting the
valuation of the company
Up-to-date corporate website as an
element of information policy
Annual report with remuneration of
members of the companys boards and the
Authorized Adviser
Monthly reports
Disclosure requirements Best Practices
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WHO IS AN
AUTHORIZED
ADVISER?
An investment firm or other entity providing business-related services, entered on the WSEs list
of NewConnect Authorized Advisers
Choosing a company of suitable quality (company verification)
Helping draw up an information document
Monitoring the progress of work on the information document and approving it
For at least three years from the debut:
working with the issuer in relation to meeting its disclosure requirements on the
NewConnect market
advising the issuer in relating to the functioning of an issuer on the NewConnect market
The Advisers experience in NewConnect to date
The sector in which the companies handled by the Adviser operate
The Advisers costs (information contained in companies Information Documents)
Possibility of combining the duties of Adviser with legal advice on transforming the firm into a
company with SA status
The costs of the Adviser are paid by the company
THE NEWCONNECT AUTHORISED ADVISER
WHAT ARE THEADVISERS
DUTIES?
WHAT SHOULDA CHOICE OFADVISER BEBASED ON?
WHO PAYS FOR
THE ADVISER?
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Access to inexpensive capital on average, companies on NewConnect raised 842k EUR annuallywith an average cost of capital equal to 4,89%
Limited formal requirements regarding the initial public offering guarantees relatively low cost of capital
competetive to other capital sources
The prestige of a public company, listed on the exchange-regulated market and an opportunity to transfer
the stockinto the Main List on Warsaw Stock Exchange (32 companies transferred in the last 7 years)
Increased exposure to foreign investors due to the steady increasing attractiveness of Polish SMEs
BENEFITS FROM LISTING ON NEWCONNECT
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Warsaw Stock Exchange
ul. Ksica 4, 00-498 Warsaw, Polandtel. +48 22 537 74 71
www.gpw.pl
www.newconnect.pl
Disclaimer
This presentation has been prepared by GiedaPapierw Wartociowychw Warszawie S.A. (the Companyor WSE)solely for use by its shareholders, clients or analysts and should not be
treated as a part of any invitation or offer to sell any securities, invest or deal in or a solicitation of an offer to purchase any securities or recommendation to conclude any transaction, in
particular with respect to securities of WSE.
The information contained in this document has been compiled in good faith by the Company, however all users of this presentation should take note that some of the data are based or provided
to WSE by external sources and has not been independently verified. WSE does not make any representation as to accuracy, fairness, correctness or completeness of the information or the
opinions contained herein.
WSE shall not be liable for the consequences of any decision made based on information included in this presentation. WSE hereby informs persons viewing this presentation that the only source
of reliable data describing WSE financial results and events are current or periodic reports issued by WSE in satisfaction of its disclosure obligations under Polish law.
CONTACT
http://www.gpw.pl/http://www.newconnect.pl/http://www.newconnect.pl/http://www.gpw.pl/http://forexmagnates.com/wp-content/uploads/2013/06/WSE_boczne.jpgRecommended