Increasing Capital Flows to Africa Conference September 29 2004 The Role of the New York Stock Excha

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Increasing Capital Flows to Africa
ConferenceSeptember 29 2004The Role of the
New York Stock Exchange
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NYSE - The Worlds Largest And Most Global Stock
Market

• 460 Listed Non-US companies from around the
  world

• Well balanced market for companies of
  different market caps

(trillion/US)
20
18
NYSE International is the worlds second
biggest equities market, after the NYSE itself
16
5.9
14
12
10
8
6
11.7
4
2
0
Large Cap greater than 5B, Mid cap 1B to 5B,
Small cap less than 1B
Regional Percentages segmented by Global Market
Capitalization Source World Federation of
Exchanges NYSE Research Date NYSE Data as of
March 31, 2004 Other Exchanges Data as of March
31,2004
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How Can A NYSE ADR Listing Benefit African
Companies?

• Shareholder Value Benefits
• Increased US share ownership Institutions and
  retail investors representing the majority of
  total equity investment in the US will only buy
  US listed, SEC-registered equities. Opportunity
  to increase US investor demand for Companys
  shares beyond direct investment by US
  international funds in the home market.
• Improved valuation benchmarking Sizeable US
  ownership, US GAAP reporting and the US listing
  platform all combine to maximise the focus of the
  US investment community on a Companys valuation
  relative to its US-listed peers over time an
  incisive valuation perspective reduces stock
  price volatility.
• A second market for the share US listing can be
  a key driver in building a virtuous circle of
  more US domestic ownership, leading to more US
  trading liquidity and lower barrier to attracting
  further investment.
• Strategic Benefits
• US acquisition currency US-listed,
  SEC-registered ADRs can be used as acquisition
  currency for US public companies.
• Limits post-acquisition flow back Targets
  shareholders have a credible and liquid US
  trading market, helping to limit post-acquisition
  flow back.
• Hiring and retaining key people A US listed
  Company may be more attractive to US management
  and employees as an element of stock option and
  stock ownership plans than Home listed stock.
• Communication Benefits

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A Broad Range Of Companies From Around The World
Choose To List On The NYSE
Non-U.S. Listings Since 2002
Market capitalization at time of listing For the
period January 1, 2002 through August 12, 2004
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NYSE-Listed South African Companies
Market Capitalization as of September 20, 2004.
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NYSE Listing Attracts High Quality US Investors
Top 10 Holders of South African ADRs Listed on
NYSE
Source 13F filings, Bloomberg, 9.21.04
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South African Companies Listed on NYSE Have a
Balanced Proportion of Trading in Both the Home
Market and at the NYSE.
Proportion of trading volume of NYSE-Listed
companies on NYSE and in South Africa, 2004 YTD
Source NYSE Data as of Sep 20, 2004.
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South African ADR Ownership and Trading on the
NYSE Has Grown Dramatically
ADRs Outstanding
Average Daily Volume (ADRs)
CAGR 76
CAGR 63
Source NYSE Data 2004 YTD as of Sep 20, 2004.
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The NYSE Listing Day
Drive broad visibility to a Company Brand on
Listing Day

• Ringing of the NYSE Opening Bell
• Customer/VIP cocktail reception on trading floor
• Branded signage on NYSE façade, Trading Floor and
  podium
• Multi-media package of listing day highlights
  DVD, webcast and collateral support
• Web cast listing activities on company.com
  nyse.com sites
• Conduct celebration at a companys headquarters.

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The NYSE Partnership

• Listing on the New York Stock Exchange goes
  beyond a companys first trade
• Its the beginning of a long term relationship
• Its a partnership
• And as your partner, the Exchange is committed to
  utilizing all of our resources to help support
  your companys brand and business initiatives

Sappi Limited visits the NYSE 05/12/2003
AngloGold Limited visits the NYSE 08/05/2003
Telkom SA Limited IPOs on the NYSE 03/06/2003
Sasol Limited lists on the NYSE 04/09/2003
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Preparation and Work for NYSE Listing

• Applicants must have filed registration statement
  with SEC and be declared effective-
• 20-F for quotation only
• F-1 for share/ADR offering
• Consider confidential early approach to SEC plan
  confidential submission for SEC review.
• Historic consolidated, audited reconciliations to
  US GAAP are generally required for 2 years by the
  SEC (Form 20-F).
• SEC registrants are required to comply with
  Sarbanes-Oxley Act corporate governance
  provisions
• Ongoing reporting on Form 20-F and 6-K (quarterly
  reports not required unless needed in home
  market).
• Establish ADR programme
• Choose depositary bank
• File F-6 with SEC
• Execute depositary agreement
• NYSE-specific work-
• Submit application pack
• Receive eligibility clearance
• Choose trading symbol

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David Griffiths Senior Managing Director
Europe, Middle East, Africa Direct Tel 44
(0)20-7025-7881 dgriffiths_at_nyse.com