1. International Investors and Israeli companies June, 2007 Darren Shaw : +972-9-960-0113

2. 1 Contents  Importance & benefits of international investors  What concerns international investors  Israeli companies and int’l investors – comparison with other countries  UBS Israel’s Top 10 suggestions for a good CFO to attract int’l investors

3. 2 Importance & benefits of international investors  We estimate int’l investors account for 30-70% of the volume of the TA25 and TA100  Stocks with large int’l following typically trade on higher multiples  Companies who consistently meet int’l investors are able to reduce risk of stock overhang  Examples  Important to be covered by global houses and be compared with international peers

4. 3 What concerns international investors?  Politics  Geo Politics  Economics  Company Specific

5. 4 1) Internal Politics  Stability of Country despite weakness of Olmert’s Government  Netanyahu well liked so risk of new elections changing the economy etc low  Compare to Turkey, Russia  Does it matter?

6. 5 2) Geo Politics  Key message – Geo political risk lowered  This is why market has been so strong since the 2006 Lebanon War  Int’l investors reacted during Intifida, but not during 2006 Lebanon War  Int’l investors have started to live with risk  Not concerned by Gaza, Hezbullah, Hamas nor Iran

7. 6 3) Economics  Economy on auto-pilot, good GDP growth, low risk of disappointment  Most investors in Israel comparing to Russia, turkey etc which are higher risk  Resilience – investors positively surprised by economy post war  Other positives, currency, interest rates, inflation, current account, FDI

8. 7 Israeli companies and int’l investors – comparison with other countries  Transition from local to global market place  Global issues remain a risk  Expect closer correlation with global markets than before

9. 8 What do investors focus on?  Mainly focus on TA-25  Of these, most traded are Teva, Banks, Chemicals  IPOs, Secondary Listings, Block Trading  Strong investor relations  ENGLISH !

10. 9 What do investors want?  Free float, liquidity  Access to senior management  English speaking, SIMULTANEOUS English press releases, English conference calls  Transparency, disclosure, honesty  Roadshows with senior management  Impressive CFOs and CEOs with good English who explain strategy

11. 10 UBS Israel’s Top 10 suggestions for a good CFO to attract int’l investors  Increase free-float  Block trades with shares sold to int’l investors  Strengthen investment in investor relations (guaranteed success!)  User expertise of global investment houses  Regular roadshows with senior management  Don’t hide the key people!  Be available for key analysts and investors  Explain strategy  Widen investor base  THINK ENGLISH (English speaking, press releases, conference calls)