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Creating the world’s leading provider of marketplace technology

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Presentation on theme: "Creating the world’s leading provider of marketplace technology"— Presentation transcript:

1 Creating the world’s leading provider of marketplace technology
Magnus Böcker, President and CEO OMX Nov 18, 2005

2 Brief summary of the OMX and Computershare partnership
OMX to acquire 100 percent of Computershare’s Markets Technology business for approximately SEK 250 million Computershare and OMX to establish a strategic alliance targeted at providing issuer services in the Nordic region and consulting services on market infrastructure issues The acquisition will underpin OMX’s position as the leading provider of technology solutions that make securities transactions more efficient OMX’s technology business will have some 50 marketplace customers, 900 employees and offices in Sydney, HongKong, Shanghai, Singapore, Dubai, Milan, Stockholm, London, Helsinki, Oslo, New York and Calgary

3 In 2005, OMX has been redefining it’s technology strategy and business
Focusing OMX’s technology business on the marketplace segment Investigating new areas to expand and strengthen the exchange business Sharpened focus on marketplaces

4 Acquisitions provide growth opportunities
Acquiring Computershare Markets Technology to create the world’s leading provider of marketplace technology Closing a strategic alliance with Computershare on services for issuers Creating a platform for further growth

5 The benefits of a combined OMX- Computershare Markets Technology include
Increased geographical market presence through new clients worldwide A strong market position through an enhanced product portfolio, including X-Stream New sales opportunities through complementary product and service offerings Strengthened capabilities in R&D through transfer of assets and employees with industry expertise

6 Computershare Markets Technology customer base (33)
Through the acquisition we will get presence in new countries Computershare Markets Technology customer base (33) North America Canadian National Quotation System Europe Budapest Stock Exchange Cyprus Stock Exchange ICAP Icelandic Securities Depository Istanbul Stock Exchange Malta Stock Exchange Moscow Interbank Currency Exchange Slovenia Securities Clearing Corp Swiss Exchange Asia Jakarta Stock Exchange Philippines Dealing and Exchange Corporation Port Moresby Stock Exchange Shanghai Stock Exchange Surabaya Stock Exchange Caribbean Bahamas International Securities Exchange Barbados Stock Exchange Bermuda Stock Exchange Jamaica Stock Exchange Trinidad & Tobago Stock Exchange Middle East Abu Dhabi Securities Market Bahrain Stock Exchange Doha Securities Market Dubai Financial Market Palestine Securities Exchange Saudi Arabian Monetary Agency Securities Depository Center of Jordan Tehran Stock Exchange Africa Bourse Regionale des Valeurs Mobilieres Cairo & Alexandria Stock Exchanges Nigerian Stock Exchange South Pacific Bendigo Stock Exchange New Zealand Exchange Limited

7 OMX Technology’s customer base (28)
And we will strengthen our position as the world’s leading technology provider OMX Technology’s customer base (28) North America American Stock Exchange ICAP* International Securities Exchange NASD* Europe Athens Stock Exchange Borsa Italiana EDX London* Iceland Exchange* NordPool* NOS NYMEX Europe * OMX Exchanges * Oslo Stock Exchange* Mercado Ibérico de Energia Polish Power Exchange Romanian Power Exchange Trading Lab Exchange Wiener Börse AG Asia Hong Kong Exchanges and Clearing Korean Futures Exchange Singapore Exchange Thailand Futures Exchange Australia Australian Stock Exchange SFE Corporation* * IT Outsourcing

8 We will extend our product portfolio and create cross selling opportunities
Exchanges and marketplaces Clearing organizations and CSDs Market participants (Through partnerships) Computershare Products X-Stream Trading system Horizon Equator Depository system TARGIN™ Information dissemination system CLICK XT™ Trading system for securities SAXESS™ Trading system for securities CONDICO™ Trading system for energy markets SECUR™ System for clearing Securities EXIGO CSD™ System for settlement and central depository of securities CLICK TRADE XT Trading Application SAXESS TRADE™ Trading application WIZER Securities Processing OMX Products OMX Outsourcing Operation and support Software support & maintenance Technical operations Advisory

9 We are forming a strategic alliance to provide services for issuers in the Nordic markets
Why expand services in this area? Enhances our service offering to exchanges Increases liquidity Strengthens our relationship with investors, vendors and listed companies

10 Financial facts OMX acquires 100 % of Computershare’s Markets Technology for approximately SEK 250 m in purchasing price and license fees SEK 90 m paid at completion Remaining payment distributed over five years Computershare’s Markets Technology unit’s revenue for the 12 months ending June 2005 were SEK 100 m Immediate earnings enhancing for OMX Long term cost and revenue synergies expected although not quantified OMX estimates that the business adds SEK million to operating profit* Adding 65 employees * Based on operational levels of 2005, including immediately realized cost synergies but excluding transaction related depreciation.

11 Next steps Final agreement closed by mid-December
Closing of transaction* at year-end Transfer of employees in the beginning January Transfer of assets and novation of contracts in the beginning January Plan is for Computershare Market Technology to be consolidated by OMX as of January 1, 2006 * The transaction is subject to neccessary approvals and customary conditions

12 Together, we gain: Increased geographical market presence through new clients worldwide A strong market position through an enhanced product portfolio, including X-Stream New sales opportunities through complementary product and service offerings Strengthened capabilities in R&D through transfer of assets and employees with industry expertise


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