Vp Business Operations

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					Alternative business opportunities
     Case Study VP Denmark




                 Johannes Luef
                  VP Securities

       CSD10 Budapest – 20 - 22 May 2009



                                           1
                                 VP SECURITIES (VP)

1980   Establishment of VP
       - Self owned non-profit Utility
                                                            From Self owned Utility
1983   First in the world to dematerialise all
       listed bonds
                                                            Participants
1988   Dematerialization of all listed
       stocks

1997   CSD of the year (Global Custodian)                                        Commercial and savings
                                                                                 banks
2000   VP changed into a for-profit                    8%    8%                  Mortgage credit banks
       company                                                             32%
                                                                                 The Danish central bank
2002   Information Services
                                                 24%
                                                                                 Issuers
2005   VP Mexico                                                   28%
                                                                                 Institutional investors
2006   VP acquires the Registrar/AGM
       business from from Danske Bank
       and Nordea

2008   Issuer Service
       Link UP Markets                                      Towards: Marked owned –
       VP Luxembourg                                        marked driven
2009   First in the world to introduce 100%
       electronic AGM service                               Customers
                                                                                                2
                          VP Financial Performance


                                        Dividend (USD)
USD mio. 85,0
         80,0
         75,0
                                        2002: 10 mio
         70,0
         65,0
         60,0
                                        2003: 13 mio
         55,0
         50,0
         45,0
                                        2004: 13 mio
         40,0
         35,0
         30,0
                                        2005: 13 mio
         25,0
         20,0
         15,0
                                        2006: 20 mio
         10,0
          5,0
          0,0
                                        2007: 20 mio
                1999   2000   2001    2002   2003   2004   2005      2006   2007   2008
                                        2008: 20 mio
                       Net turnover   Costs and depreciations     EBIT


                                                                                          3
      Breakdown of total VP revenue 2008


        Total USD 74 mio.

                                        Issuance
                            18%
36%
                                        Clearing & Settlement

                                        Safe Keeping
                                  25%

           21%                          Alternative business
                                        opportunities




                                                                4
      Breakdown of VP revenue 2008 from
       alternative business opportunities

            Total USD 26 mio.


                                           Investor Communications
        12%           8%
                                12%        VP Financial
15%                                        Custody Services
                                      8%
                                           Consultancy Services
                                           Share register Services
                                19%        Corporate Actions etc.
      26%
                                           Other Services




                                                                     5
4 million Investor accounts

                              6
           VP’s Clearing & Custody
           unit in figures - 2008

Turnover – market value:
∕  Bonds: 4,662 billion USD
∕  Shares: 1,018 billion USD

Daily turnover:
∕ Ca. 19,818 billion USD
∕ 68.700 trades

Securities on deposit (value):
∕ 834 billion USD



Total population: 5,3 mio




                                     7
                  VP issuer services



  Share-based                            Register of
   payments                             shareholders



    Insider-
                      Customer           AGM service
  registration



Communications-
                                          IR service
   service




Founded on VPs direct relationship to issuers and its
        direct holding accounts structure
                                                        8
     Investor Portal
VP issuer services




                       9
         Examples of VP’s customers




Erhvervsopsparing A/S



                                      10
                         Electronic AGM

                              ∕   During 2008 VP:
                                  ∕   Provided General Meeting
                                      Services for more than 120
Is there anybody out there?           issuers
                                  ∕   Sent more than 500,000
                                      invitations to GM´s
                                  ∕   Registered instructions to
                                      attend GM´s, proxies and
                                      POA´s
                                  ∕   Sent more than 50,000
                                      admission cards and voting
                                      ballots
                                  ∕   Attended and assisted 70
                                      GM´s onsite

                              ∕   In 2009 VP introduced a
                                  100% virtual AGM service as
                                  the first in the world

                                                                   11
VP MORTGAGE SOLUTION

            •   Prospect of prosperity MEXICO/US
            •   Cooperation Worldbank - Soros
            •   2005 VP establishes ABSALON, a
                50/50% cooperation with George
                Soros Group
            •   Export of Danish mortgage solution
                system to Mexico
            •   Co-operation with INDEVAL
            •   Establishment of HiTO
            •   The first loan was issued end 2007
            •   Other countries are interested…




                                                 12
Royal State Visit in Mexico 18.2.-21.2. 2008




                                               13
Future Development ?




                       14
             VP Luxembourg

• A CSD eligible for Eurosystem credit operations in EUR
• RTGS settlement (TARGET2 Ancillary System) via the
  Luxembourg central bank

• A copy of the VP-system with limited functionality (most IT +
  operations outsourced to VP) - 100 pct. owned by VP

• Customers: Issuers and professional investors
• Links to VP DK and CBL

• First issuance: October 2008 (current volume: 15 billion
  EUR)




                                                             15
16
If you want to know more


Please visit www.uk.vp.dk
           www.virtualgeneralmeeting.com
           www.vplux.lu




                                           17

				
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