Transcript lebanon free

International Investors and Israeli companies
Darren Shaw : +972-9-960-0113
June, 2007
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
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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
2
What concerns international investors?
 Politics
 Geo Politics
 Economics
 Company Specific
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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?
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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
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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
6
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
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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 !
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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
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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)
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