International Investors and Israeli companies

June, 2007

Darren Shaw : +972-9-960-0113

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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

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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

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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)