MaRS Best Practices: Valuations in the cleantech Industry - Tim Babcock

MaRS Best Practices SeriesMaRS Best Practices Special Valuation Series Special Friday Nov 19th Valuation 12:00-1:30pm Speakers: TSeries im Babcock Director, Listed Issuer Services TSX Venture Exchange NovRupert . 12thMerer , 2010 Energy Technology Research Analyst National Bank Financial (NBF) More information and registration at www.marsdd.com/bestpractices A Capital Opportunity for Clean Technology Companies Listing on Toronto Stock Exchange and TSX Venture Exchange MaRS Tim Babcock, Director, Listed Issuer Services TSX Venture Exchange November 19, 2010 Disclaimer This document is for information purposes only and is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange or Natural Gas Exchange. TMX Group Inc. and its affiliates do not endorse or recommend any securities referenced in this document. Please seek professional advice to evaluate specific securities. While the information herein is collected and compiled with care, neither TMX Group Inc. nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, business or financial purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Inc. and/or any of its affiliates as a result of any errors or inaccuracies herein or any use or reliance upon this information. © 2010 TMX Group Inc. 3 Outline 1.  TSX and TSXV – The 3 Minute Overview 2.  The Clean Technology Sector 3.  Structure Tools for Entrepreneurial Finance 4.  Case Studies 4 TMX Group is a Multi-Asset Class Market Leader Equi-es Deriva-ves Strong fundamentals in Canada •  Canada’s financial system has (53.8% Ownership) been ranked as the soundest in the world for two years in a row (19.9% Ownership) by the World Economic Forum Energy •  Lowest debt-to-GDP among G7 Fixed Income •  Relatively strong financial position: – 12 years of surpluses 1998-2009 (51% Ownership) •  Significant resource base Data (47% Ownership) 5 General Conditions YTD September 2010: Key Markets TSX/TSXV LSE/AIM NYSE/AMEX Euronext (US) Nasdaq ASX Hong Kong Exchanges Number of Issuers Listed 3,628 2,978 2,314 2,805 1,966 1,365 Quoted Market Value (US$ Billions) 1,867.6 3,467.6  12,278.4 3,480.7 1,318.6 2,536.0 New Listings 370 113 78 157 69 58 Equity Capital Raised (US$ Billions) 32.6 41.1 66.9 4.7* 25.4 42.8 Value Traded (US$ Billions) 993.2 2,123.3 13,794.6 9,998.0 786.1 1,027.6 Broad Stock Market Indexes (%Change 8.5% 8.9% 5.4% 11.6% -2.2% 7.0% over Sept 30 2009) 6 *NASDAQ Information does not include secondary financings Source: Exchange Websites, World Federation of Exchanges, (TMX analysis of public information) TMX Group’s Equity Exchanges Support a Diverse Issuer Base Number of Issuers by Sector Includes issuers on Toronto Stock Exchange and TSX Venture Exchange (100% = 3628) 7 As at September 30 2010 Access to Capital: 2009 was an all time record year for financing on TSX Toronto Stock Exchange and TSX Venture Exchange Total Financings (C$Billions) 1999 – 2010 September *TSX Venture Exchange commenced operations on November 29 1999 8 Unique Equity Market Structure 27 graduates in YTD Sept 2010 2,143 companies 20 graduates in 2009 1,485 companies 45 graduates in 2008 TSX Venture Exchange Toronto Stock Exchange •  Access to capital for earlier stage companies •  Senior market for well established or smaller financings businesses and management teams with experience in public markets •  Total market cap of $48.5 Billion & average market cap of $22.6MM •  Total market cap of $1.9 Trillion & average market cap of $1.3B •  Cost effective stepping stone for international companies looking to list on a quality North •  30% of TSX issuers >$500M are interlisted American market on a US exchange •  Exchange mandate to mentor management of •  Access to larger, more international newly public companies institutional investors and greater analyst •  Streamlined graduation to TSX when senior coverage market requirements are met •  Globally visible specialized indices •  103 year history •  157 year history 9 TMX Group Serves Companies at all Stages of Growth Market Capitalization Unique feeder system Toronto Stock Exchange and TSX Venture Exchange As at September 30, 2010 478 graduates + 93 M&A* 473 1922 463 549 30 Issuers Issuers Issuers 191 Issuers Issuers *From January 1, 2000 – September 30, 2010 Toronto Stock Exchange issuer base: 1,485 issuers, ~$1.9 trillion market cap TSX Venture Exchange issuer base (excludes NEX): 2,143 issuers, ~$48.5 billion market cap 10 10