Accessing Global Capital Markets

Through London

LSEG & Israel

April 2018

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London Stock Exchange Group
Building stable, trusted markets since 1801

Selected LSEG business lines and areas of focus

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London Stock Exchange Group
A global leader

$10 trillion $873 trillion $15 trillion

Total money raised on London Derivatives cleared by SwapClear Assets under management using
Stock Exchange in the last in 2017 to support G20 and global our benchmarks
decade financial stability

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 Markets that Support Growth
Our Choice of Equity Markets

Private Equity
Funding requirement

£1bn
Venture Capital

£150m

£1m

£500k Seed Capital

£100k Business
Angels

£50k
Friends
Family

Concept & Start - Up Early Stage Expansion Consolidation & further Diversification of investors, M&A and
seed stage capital raising International Expansion

Strategic consideration

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 Recent Highlights & Key Transactions

107 IPOs on London 9 of top 10 IPOs

107
IPOs
Stock Exchange in 2017
raised a combined £15
billion, nearly 4 times
higher than the next
were international
London’s IPOs became even more
international in 2017, with 9 of the 10
European competitor. largest IPOs considered to be
international companies.

£41bn
A total £41bn equity capital was raised in
37
Fund
More closed end
funds, SPACs and
REITs have listed
in London than
London in 2017 through IPOs and follow on anywhere else in
issuance, 36% higher than in 2016. IPOs the world in 2017.

More Further Offer

AIB Group First Komodo Bond

London Stock Exchange welcomes
(FO) transactions on
LSEG markets than
any other exchange
Europe’s largest IPO of the year chose to dual list world’s first Komodo (Indonesian rupiah) globally in 2017
in London. Allied Irish Banks raised £3bn at IPO. corporate bond by Indonesian authorities.

Source: Dealogic, London Stock Exchange data, January 2018

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London is the International Market of Choice
 More international companies choose London for listing than any other exchange. 28% of all major exchange listed international companies are listed
on LSE.
 Our issuers operate in over 100 countries around the world.

International Companies Across Exchanges London Has More International Companies Than Any Other Exchange

700
661

Int'l Companies as %
600 of total companies
LSE 31%
By # of Companies

510
NYSE 22%
500
NASDAQ 14%
TSX 7%
1,770 Companies 400 379 SGX 21%
SEHK 3%

300

211
200
161

100 73

28% 26% 21% 12% 9% 4% 0

Nasdaq

SEHK
NYSE

TSX
LSE

SGX
LSE NYSE Nasdaq TSX SGK SEHK

Source: LSE, FactSet, April 2018

International companies have headquarters in different country to primary listing venue. LSE international companies are defined as being incorporated outside of
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the UK.
 London Provides Investor Diversification
Superior investor diversification and access to global investors

Domicile of Top investors in listed securities in London - London has the most diverse investor base of any major
global exchange, while still allowing issuers to tap US
51% institutional investors.
UK - This allows issuers access to a pool of capital that is
comfortable with companies who build internationally facing
14% business models.
Europe (ex UK)
LSE
$2.44trn
30%
North America
Domicile of Top investors in listed securities in the US
5%
Rest of World
6%
UK

Largest Institutions Investing in LSE Listed Stock Investor Country

NASDAQ
5%
Europe (ex UK)
BlackRock Investment Management (UK) Ltd. United Kingdom and
The Vanguard Group, Inc. United States
NYSE 86%
North America
Legal & General Investment Management Ltd. United Kingdom

Norges Bank Investment Management Norway 2%

Rest of
World
Capital Research & Management Co. (World Investors) United States

Invesco Asset Management Ltd. United Kingdom

Source: FactSet, London Stock Exchange stats, April 2018

LSEG and Israel
A partnership to support future growth

 Israeli PM Benjamin Netanyahu

visited London Stock Exchange to
emphasise the strong links between
Israel and LSEG.
 Both Israel and LSEG expressed their
commitment to innovation, technology
and continuing business growth.

 LSEG is supporting the thriving Israeli

business community by contributing to
financing its growth.
 28 Israeli companies are already
listed in London ($14.7 billion) and 9
Israeli SMEs are part of our ELITE
programme.

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The Israeli Listed Peer Group in London
We are proud to have 28 Israeli companies on our markets with listings of almost $17.5 billion. It underlines the exceptional
investor interest in building exposure to Israel’s dynamic economy.

Main Market AIM Total

No. of Companies 9 1 18 28

Total Market
$12.4bn $0.1bn $5.0bn $17.5bn
Capitalization

Total money raised by Israeli companies since 2007 $6.2bn

Source: Dealogic & LSE calculation, April 2018

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Defense Companies on LSE Markets
AIM’s Cohort Plc outperforms FTSE All Share index

Overview of LSE-listed defense companies

Issuer Legal Name LSE Market Value Traded in Mar 2018 (£m) Market cap (£m)
COHORT PLC AIM 1 140
AVON RUBBER PLC MAIN MARKET 13 425
BAE SYSTEMS PLC MAIN MARKET 871 19,297
CHEMRING GROUP PLC MAIN MARKET 11 596
QINETIQ GROUP PLC MAIN MARKET 65 1,277
ULTRA ELECTRONICS HOLDINGS PLC MAIN MARKET 143 1,066

Cohort Plc share price performance relative to FTSE All Share Index
400
350
Normalised to 100 (%)

300
250
200
150
100
50
0
2013 2014 2015 2016 2017 2018
CHRT LN Equity ASX Index

Source: Bloomberg, FactSet, LSE, April 2018

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Global Home of Fixed Income Capital
Innovating in debt financing

1,126 71 $4.7tn 39 12,000

Issuers Countries Raised* Currencies Listed Debt Instruments

105 RMB 23 Masala 71 Green 67 Sukuk 19 Komodo

London Stock Exchange is a key
bonds
London is the premier Renminbi bonds
London Stock Exchange is home
bonds
London Stock Exchange is home
global venue for the issuance of
trading hub outside Greater Sukuk. To date over London Stock Exchange is home
for 23 Masala bonds from 9 for 71 Green bonds which have
China with 105 bonds from 18 US$49bn has to 19 active IDR denominated
issuers which have raised over raised over $22.7bn in 7
global issuers raising RMB 32 been raised through 67 issues of bonds, raising $2.8billion
$5.1bn. currencies
billion. these Shariah compliant
instruments.
London Stock Exchange is India picks London to launch First Abu Dhabi Bank picks Islamic Development Bank picks Jasa Marga chooses London for
home to the first ever offshore corporate Masala Bond market London Stock Exchange to list London Stock Exchange for a its pioneering transaction.
Chinese Sovereign RMB Bond led by Housing Development the first ever Green Bond issued $1.25 billion Sukuk, Marking its first Rupiah
Finance Corporation and from the Middle East emphasising our continuous denominated bond (Komodo)
National Thermal Power support for the Islamic Finance issued internationally and is
Corporation Industry expected to list on LSE in
December 2017

Source: LSE, Bloomberg, May 2018

Currently listed bonds are captured only.
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 Listing Bonds on LSE
An Efficient and Expedient Process
Main Market

UKLA
Submit
documentation Confirmation
concurrently to UKLA -
Pre-admission requirements
Final form 1
UKLA and LSE Letter
- Sanctions confirmation Admission to
- Prospectus (to be received 1 Trading on
UKLA – approves UKLA guarantees turnaround day before admission) Main Market
admission to of 4 days for initial comments
Official List
and 2 days thereafter
LSE – approves LSE
admission for
trading

Pre-admission requirements
- Final form 1
- Sanctions confirmation
- Admission particulars (to be
received 1 day before
admission) Admission to
ISM

Eligibility
Submit Trading on
documentation LSE Confirmation ISM
directly to LSE
Letter

LSE guarantees turnaround of

3 days for initial comments
and 2 days thereafter

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Israeli Sovereign Bond
Geographical Distribution
Israel opens 2017 international sovereign bond market with
oversubscribed deal 10Y 20Y

UK 29% 28%
Country Details Transaction Details
France 20% -
Company State of Israel Issue Date 18 Jan 2017
Germany 19% 48%
Rating A+/A+/A1 Issue Size €1.5 billion / €750 million
Rest of Europe 17% 9%
GDP USD 297 billion Coupon 1.5% / 2.375%
Switzerland 7% 4%
Market Main Market Maturity 10 years / 20 years
Israel 6% 6%

Country Profile Debt issuance story Asia - 4%

Other 2% 1%
 It is the first non-European sovereign to issue  This is the largest ever euro-denominated
a euro-denominated bond of 20 year tenor. bond issued by the country as well as being
Distribution by Investor Type
its first euro deal in 3 years.
 “Israel has limited funding needs and 20 years 10Y 20Y
is a tenor they don’t necessarily need, but it  The issue was over 4.3 times
allowed them to broaden and diversify into a oversubscribed with the combined book for Fund Managers 51% 32%
different and distinct pool of investors, such the two tranches closing at €9.8 billion.
as German insurers, pension funds and high Insurance / Pension funds 24% 53%
quality accounts from Europe.” Vi Davda,  The 2027 notes were priced at 87bp over Banks / Private banks 17% 9%
Fixed Income Syndicate, Barclays. mid-swaps, the cheapest financing the
country received since 2005, while the 2037 Governments / Central Banks 7% 3%
 “Investors love Israel. It is very stable and has notes were priced at 125bp over mid-swaps.
a good relationship with the rest of the world. Hedge Funds - 2%
It is OECD, so gets the French bid and US  Joint leads: Bank of America Merrill Lynch, Other 1% 1%
investors love them” Market appraisal. Barclays, and Citigroup.

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ELITE – 9 Israeli Companies

Tevva Mot
eToro Financial Services,Financials
Industrial Transportation,Industrials
Equity Investment Instruments, Financials BLender provides multi-continental, and cross-
Established in London in 2012, Tevva Motors
eToro is a the world’s leading social trading border, marketplace lending service in
develops and produces electric range
network. A global market place for people to developing and emerging countries. Founded
extended drivetrains for 7.5 tonne trucks,
trade currencies, commodities, indices and CFD by a group of physicists and IT professionals
primarily for the back-to-base urban delivery
stocks online in a simple, transparent in a more with varying backgrounds.
market.
enjoyable way.

Showbox
Software & Computer Services, Technology Media, Consumer Services
Software & Computer Services, Technology
Deskforce is a cloud communications Showbox is the world’s first cloud-
geekApps is a company that has developed
company, marketing Omni Channel based intuitive video creation and
an interactive platform allowing companies
Communication API empowering production platform, that guides
to create and manage their own native
businesses to add voice, messaging and creators, businesses, brands and
apps without prior knowledge of computer
social network to any App orCRM. publishers from idea to high quality
programming, at an affordable price.
video in a matter of minutes.

iCapital Massivit 3
Leisure Goods, Consumer Goods Financial Services,Financials Software & Computer Services, Technology
Player Maker has developed proven iCapital develops process automation Massivit 3D is a leading provider of large
pioneer technology that gives players solutions and decision-making algorithms for format 3D printing solutions. Their patented
real time biomechanical analysis and the financial industry. technology enables objects to be 3D printed
technique corrective feedback. at remarkable size, speed, versatility and ease.

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Etoro Case Study
$100m equity raising through ELITE Club Deal

9m
Users
CORNERSTONE INVESTOR

140 ELITE Partner Series E

Countries

FOLLOW ON INVESTORS
Company
$161m
Total Capital
Raised

2x Large Family Offices

2015
Joined ELITE
Amount raised: $100m
Closing Date: 21st March 2018

Use of Proceeds: Company expansion – global offices; marketing budget; M&A in selected geographies; and R&D (including development in Blockchain)
Valuation: $700 pre-money (2.7x 2017 revenues)

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Tom Attenborough
Head of International Business Development
Primary Markets
+44 (0) 207 797 3747
[email protected]

Justine Zwerling
Head of Business Development – Israel
Primary Markets
+972 523 983 359
[email protected]

Alex Imseeh
Sales Associate
+44 20 7797 3750
[email protected]
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© April 2018
London Stock Exchange plc
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Telephone +44 (0)20 7797 1000
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