AIM: The World’s Most Successful Growth Market

AIM: an overview

• AIM is the London Stock Exchange’s market for smaller, growing companies. Launched in 1995, it has a world-class reputation

• A platform for companies to raise capital (at admission and through further fundraisings) to help them realise their growth potential, within a tailored and balanced regulatory framework

• Provides an attractive exit route for earlier stage investors and enables them to “recycle” capital

• Supports companies beyond financing, by providing an attractive Supports companies beyond financing, by providing an attractive platform for them to increase their profile and visibility with key stakeholders

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AIM: a current snapshot p

AIM companies: 1,198

International AIM companies: 224 (by incorporation)International AIM companies: 224 (by incorporation)

Number of admissions on AIM in 2009: 3630 UK / 6 overseas

Capital raised (new & further) launch to date: £69.41bn

£33 75bn new£33.75bn new£35.66bn further

Capital raised in 2010: £4.34bn

£866mn new£3.48bn further

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.

Source: London Stock Exchange trade statistics – October 2010

AIM is home to 1,198 companies with an , paggregate market cap of £67.6 billion

1 399

1,6341,6941,550

International

UK

1,021

1,3991,293

1,198

UK

252 308 312 347524

629 704 754

121252 308 312

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

44

Source: London Stock Exchange trade statistics – October 2010

AIM companies have operations across the p pglobe from 95 countries

70 3819

5046

9

259 3

UK: 735

46

49 3526

9 312

N b f i 49

26

35

2670 +

40 69

Number of companies

26

Other offshore: 10Isle of Man & Channel Islands: 19

40-69

20-39

0 19

55

Isle of Man & Channel Islands: 19

Source: London Stock Exchange trade statistics – October 2010NB: Number of companies colour coded per grouping rather than country

0-19

AIM is attractive to a wide range of companiesg p

270Number of

125

197167163

companies*

125107

39

101

11 7

£0-2m £2-5m £5-10m £10-25m £25-50m £50- £100- £250- £500- Over100m 250m 500m 1,000m £1,000m

Market value range

66

Source: London Stock Exchange trade statistics – October 2010

*NB: excludes 1 currently unvalued companies and 10 suspended companies

AIM enables companies to raise capital p pthroughout their life on market

15.716.2Further

New

(in £ billions)

4.7

8.9

4 35.5

4.3

0.1 0.8 0.7 0.6 0.9

3.1

1.1 1.02.1

4.3 4.3

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010YTD

77

Source: London Stock Exchange trade statistics – October 2010

AIM covers an unparalleled range of sectorsp g

SECTORS REPRESENTED BY ALL AIM COMPANIES

SECTORS BY MARKET VALUE

Equity Real Estate 6%

T l &

Equity Investment Instruments

5%

Media 7%

Oil & Gas Producers 7%

Equity Investment Instruments

5%Pharma 4%

General Financial 7%

IT 7%

General

Pharma 3%

Travel & Leisure 4%

IT 8%

General

General Retailers 3%

Food 3%

General Finance 8%

Other 28%

Finance 11%

Mining 11%Other 22%

Mining 17%

Oil & Gas

General Financial 11%

Producers 19%

(TOP 10 SECTORS REPRESENT 71% OF AIM) (TOP 10 SECTORS REPRESENT 77% OF AIM)

88

Source: London Stock Exchange trade statistics – October 2010

( O S C O S S O ) ( O S C O S S O )

AIM provides access to the world’s leading p ginstitutional investors

The investor base for AIM companies is both institutional and retail.The investor base for AIM companies is both institutional and retail.

The top 10 most influential institutions by value and number are:

Rank Most Active Institutions by Value of investment

Value of Investment

(£m) No. of

Investments

1 BlackRock 1242.2 130

2 In esco 825 68 74

Rank Most Active Institutions by Number of investments

Value of Investment

(£m) No. of

Investments

1 Pershing Keen (Nominees) 203.84 121

2 BlackRock Group 772 06 107 2 Invesco 825.68 74

3 Citivic (Nominees) 767.9 5

4 Fidelity 752.23 103

5 Prudential Group 499.34 38

2 BlackRock Group 772.06 107

3 HSBC (Nominees) 226.28 106

4 AXA 189.66 101

5 Henderson Group 204.25 98

6 Lloyds Banking Group 454.08 68

7 BNY Mellon (Nominees) 451.93 190

8 Brickington Trading 444.73 1

9 RAB Capital 417 91 43

6 Fidelity International 421.48 97

7 Gartmore Investment Ltd 215.17 97

8 Artemis Investment Management 273.75 93

9 F&C Group 210 60 90 9 RAB Capital 417.91 43

10 Capital Group Companies 402.49 35

9 F&C Group 210.60 90

10 Barclays 82.95 85

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Source: GCI Institutional Investors in AIM survey 2010

AIM’s entry criteria are tailored for growing y g gcompanies

• Nominated adviser (Nomad) required at all times

• Admission document approved by Nomad and is not pre-vetted by E h UKLA Exchange or UKLA

• No minimum size requirement

• No minimum financial history required

• No formal requirement for shares to be held in public hands

• Disclosure based rules support company growth with shareholder approval required for the most fundamental transactions

• Compliance with the AIM Rules for Companies

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Continuing eligibility requirements facilitate g g y qgrowth and investor confidence

• AIM companies must retain a Nomad at all times, otherwise they will be suspended from the market

AIM i di l ll i i i i f i i • AIM companies must disclose all price sensitive information in a timely manner including substantial transactions, related party transactions, reverse takeovers and other material matters

• Half yearly and annual report and accounts required• Half yearly and annual report and accounts required

• All directors accept full responsibility, collectively and individually for complying with AIM Rules

• Restrictions on deals for directors and applicable employees on AIM • Restrictions on deals for directors and applicable employees on AIM securities during close periods

• UK Corporate Governance standards adopted by companies as best practicep

• AIM companies must maintain a website displaying key investor information

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AIM – looking to the futureg

To support the development of the market and help companies maximise their profile we:

• Ensure that AIM continues to be the market of choice for companies and investors

D i th g th f AIM i t hi ith k t ti i t

To support the development of the market and help companies maximise their profile, we:

• Drive the growth of AIM in partnership with market participants

• Extend the visibility of AIM companies and develop liquidity through extensive lobbying work and new product initiatives including:• The promotion or equity research• The promotion or equity research• Development of new indices• Hosting Growing Company Investor days

• Expand the AIM brand internationally:Expand the AIM brand internationally:• AIM Italia, launched in December 2008. 9 companies admitted

and 14 Nomads approved• TOKYO AIM, fully operational since June 2009 with the Tokyo

S k E h 6 l di N d i dStock Exchange. 6 leading Nomads appointed

• Work with Government and policymakers to enhance AIM’s offering in the SME funding environment

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Why choose AIM?y

• The world’s most successful growth market

• A balanced approach to regulation tailored to growing companiespp g g g p

• An internationally focussed, professional investor base

• Critical mass of advisers, analysts, and investors with detailed sector experience

• International profile associated with a globally respected market

The market of choice for smaller companies wishing to access the international capital wishing to access the international capital

markets to maximise their growth potential

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