© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Latvian Capital Markets Development

Stock exchange listing for state owned companies

Presentation given at “Baltic PR Awards” on public affairs issues.14.05.2010.

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

World’s largest exchange company. Represented in 6 continents. 3,700 global listed companies representing diverse industry sectors and many of the world’s most well-known and innovative brands.

• Offers multiple capital raising solutions to companies and

governments around the globe.

• Provides trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs.

• Supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. Group owns 10 clearing houses in the USA and Europe.

• Electronic trading

• World’s fastest trading platform

• Data distributed in 83 countries

• High listing standards

• Wide international investors base

January, 2009. Riga Stock exchange changes its name to NASDAQ OMX Riga. Times Square NewYork. Photo: Rob Tannenbaum

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

NASDAQ OMX - a gateway for investors in the Baltics

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Capital market - potential for Latvian economy

International financial investors (pension funds, investment

funds etc.)

Latvia’s pension

system 2nd and 3rd tier

fundsBanks

(crediting of companies)

Resident savings

Requirements: • Public share trading on stock exchange• Transparency and good corporate governance

Venture capital funds

Direct investments in company’s share capital

Loans to companies

Requirements: • Sufficient share capital• Transparent business

investments in non-listed companies

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Objective:

to include the topic of state company exchange listing on the government agenda

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

“Beware! Private = privatization.”

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Research:

• Challenge and test the concept• Omnibus - sociological survey • Perception of gains and losses• One-to-one interviews• Lessons from others• Foreign experience• Middle East deal making and marriage arrangements in different cultures

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Kā Jūs vērtējat to, ka valsts un pašvaldību uzņēmumi

tiek nodoti privāta uzņēmuma pārvaldībā?

20,5%23

42,3%33,9%

37,9%43,0%

49,8%

55,6%

66,8%62

10,4% 12,7%12,5%14,6%

0%

25%

50%

75%

18-24 gadi 25-39 gadi 40-54 gadi 55-64 gadi 65-7

Pozitīvi vai drīzāk pozitNegatīvi vai drīzāk negGrūti atbildēt/ NA

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Goals:• to encourage a constructive dialogue about the potential

benefits of public listing of state companies and include the topic on the government agenda

• to promote the capital markets and stock exchange as important part of development of economy

To get on the right track

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.

Strategy and implementation

• Approaches- Invite stakeholders to analyze and think on the concept instead of pushing

for decisions

- Transparency in our activities

- Clear distinction between exchange listing and privatization

- Examples, case studies

• Audiences- Decision makers

- Experts, investors

- Company management

• Activities- One to one meetings

- Public activities

© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.