European Semester e-Conference on Greece|2020 Financing the Economy - - PowerPoint PPT Presentation

Di Divis ision DD/MM/YY

Financing the Economy Challenges and Key Recovery Accelerators

European Semester e-Conference on Greece|2020

Ju July ly 2020

ATHEXGROUP

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4,0 4,7 2,1 4,7 10,0 8,9 0,1 0,3 0,2 0,7 0,1 0,6 0,2 0,5 54,8 10 20 30 40 50 60 70 80 2 4 6 8 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Capital Raised - Equity (xHFSF) (lh) Capital Raised Fixed Income (lh) AVG MKT CAP (€ bn) (rh)

“Financial Paradox” - Priva rivate Cap apit ital Ra Rais ised (EURbn) ov

• ver

r Pas ast 10 10 yea years rs

Source: ATHEX

Cumulative

Equity EUR 36bn Fixed Income EUR 1.5bn

ATHEXGROUP

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“Financial Paradox”- Lo Low Do Domestic ic AUM vs.

• s. EU

Source: European Ins. & Ocii. Pention Auth. - Efama

6% 7% 8% 9% 9% 13% 14% 30% 36% 38% 19bn 3bn 303bn 4bn 968bn 355bn 16bn 2,707bn 2,440bn 2,267bn 0% 25% 50% 75% 100% Greece Bulgaria Spain Romania Italy Ireland Czech Republic France UK Germany

• Insurance Pillar (II&III) Investment Allocation 

Greece at the lowest end (6%) in Investment in Domestic Equities

75% 20% 4% 0% 20% 40% 60% 80% EU

• Avg. EU Periphery

Greece

AUM %GDP

• Limited AUM Base

Greece showcasing just 4% of AUM/GDP vs. 20% for EU

• periphery. Gap equivalent to
• c. EUR 30bn

ATHEXGROUP

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“Financial Paradox” Expl plain ined - Inte International Aud udience Cas ash Mar arket

Intl Investor Visibility Remains Elevated

Source: ATHEXGROUP, AxiaNumbers publication, May 29th 2020

(as % of total trading activity)

ATHEXGROUP

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Fun Funding the the Ga Gap - Lo Low Domestic ic Cap apital l Mkt Pene enetration vs.

• s. EU Pee

eers

Capitalization to GDP

Source: FESE Members, March 31st 2020

(market capitalization period end / GDP, %)

Greek Capital Markets has significant scope given limited penetration

ATHEXGROUP

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Fun Funding the the Initi Initiativ ives - Gr Growth in in Domestic ic AU AUM

Source: FESE Members, March 31st 2020

Impact Suppliers of Capital Pillar 2: Introduce mandatory or semi-mandatory Pillar 2 mechanisms Pillar 3: Targeted incentivization to individuals by the government (e.g., institution of tax benefits for Pillar 3 schemes) Strengthening of the domestic capital market system through improved performance due to: Curbing volatility  Leading possibly to higher valuations given lower perceived risk Higher liquidity  More liquidity likely to draw additional liquidity, positive “feedback” loop Improved governance  Increased domestic (longer term investors) to hold management and BOD accountable for actions

ATHEXGROUP

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Fun Funding the the Ga Gap – Init Initia iativ ives - Accelera ration + + De Destin ination

Source: FESE Members, March 31st 2020

SME Pre-Listing Support Program Offered by the EBRD in coop with Athex. Support preparation to access capital, but also

• ffer operational, managerial and technical

advisory services aimed at creating a value proposition that will support the route to the capital market. Roots Program Roots aims to accelerate the growth of SMEs by ensuring their capital market readiness and access to financing

• pportunities.

Destination Multilateral Trading Facility – ‘Alternative Market Operating Rules’ set by ATHEX

• Flexible framework for admission to

trading for both equity and fixed income

• Coverage of fundraising needs for

growth SMEs as well as early stage companies Acceleration ΕΝ.Α

ATHEXGROUP

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Fin Financing the the Economy - Cha hall llenges and and Key ey Rec Recovery Accele lerators rs Thank you