DETERMINANTS OF CAPITAL MARKET DEVELOPMENT IN CEE COUNTRIES

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• DETERMINANTS OF CAPITAL MARKET DEVELOPMENT IN CEE
  COUNTRIES
• WARSAW STOCK EXCHANGE EXPERIENCE SIX MONTHS
  AFTER ENTRY INTO EU

WARSAW STOCK EXCHANGE
Lidia Adamska Director Strategic Planning
Department
Prague, November 2004
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NEW COMPANIES ON WSE
November 10, 2004

• Ten months of 2004 - IPO MARKET BOOM
• Numerous announcements by private companies
  interested in listing on our market (including
  foreign companies)
• Government plans to privatise several large
  state-owned companies through the exchange

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2004 IPO BOOMVALUE OF THE OFFERS 2001-2004
as of November 10, including PKO BP
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NEW LISTINGS ON WSE

• 10 companies to be listed on Warsaw Stock
  Exchange by the end of 2004 (including 2 already
  admitted to trading)
• 25 prospectuses in the pipeline of the Polish
  Securities and Exchange Commission
• 150 companies declare their interest in listing
  on WSE
• Foreign listings at WSE
• 2003 BACA
• 2004 BorsodChem, IVAX, Cinema City, BMP
• 2005 MOL, etc.

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NUMBER OF COMPANIES NEWLY LISTEDCEE EXCHANGES
AND GLOBAL EXCHANGES
Note Data as of November 10, 2004 Source
WFE, FESE, WSE
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WARSAW CITY BUILDING A FINANCIAL CENTRE BY 2010

• Development strategy of Polish capital market
  Agenda Warsaw City 2010 by Ministry of Finance
• to grow the market
• - to reach 50 ratio of capitalisation / GDP
• - to attract new companies to public market
  (including foreign companies)
• to strengthen corporate governance and law
  enforcement
• to privatise WSE and National Depository for
  Securities (NDS)
• to establish possible strategic alliance by WSE
  NDS
• Idea of Warsaw City combines global Polish
  capital market strategy with WSE strategy
• Warsaw City financial centre attracting foreign
  capital
• WSE element of European network of exchanges

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STRENGTHENING DOMESTIC CAPITAL MARKET CORPORATE
GOVERNANCE as of October 2004

• Best Practices in Public Companies 2002 CG
  Code
• All WSE-listed companies sent CG compliance
  statements
• Average company complies with over 90 of CG
  principles
• 4 companies do not comply with any of CG
  principles
• 40 companies declare compliance with all CG
  principles (Rule 20 on Independent Board Members
  to be implemented by June 2005)
• Best Practices 2005 already produced

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STRENGTHENING DOMESTIC CAPITAL MARKET BALANCED
INVESTOR STRUCTUREEQUITY MARKET 1997-2004