Annual report 2005 - Dexia.com

Annual Report 2005The 2005 Dexia/TNS Sofres surveyIn November 2005, at theActionaria salon in Paris, inpartnership with the surveycompany TNS Sofres, Dexiapublished an exclusivebarometric study. For the fifthconsecutive year, this highlightedthe opinions and attitudes ofindividual shareholders withregard to the stock market andlisted companies. On the part ofFrench individual shareholdersa clear recovery of confidence,activity and appetite is notedvis-à-vis the stock market andalso an intensification of theirvigilance on transparency, inparticular concerning directors’remuneration and the allocationof profits. Shareholders areextremely sensitive to loyaltyactions.A more positive and moreconfident view vis-à-visthe stock market, whichmaterializes in a recoveryof stock market activity andincrease purchase intentionsfor 2006• More individual shareholdersare active in their portfolio: sincethe beginning of 2005, 57%of them carried out at least onetransaction in their portfolio and42% over the course of the lastquarter 2005.• Net buyers are increasing:almost one shareholder in twomade more purchases thansales. Net buyers are more oftenmajor portfolios active or veryactive on the stock market, orinternet users.• The revival of confidence isconfirmed with the profitabilityof shares: up to 80% ofshareholders perceive themas profitable. Today a third ofshareholders would invest as amatter of priority in shares andone in five in UCITS if they had amajor sum to invest.• This revival of interest in thestock market is not oustingreal property which is still thepreferred investment of theFrench, but marks a slightrunning out of steam.• In the short term, the peoplequestioned are optimistic as tothe evolution of the CAC 40.40% think it will rise and 44%think it will remain stable. 30%of shareholders, against 19%in 2002, intend to buy shares in2006.The Internet and the StockMarket, a popular tool foractive shareholders• 25% of individual shareholdersuse the internet these days tomanage their share portfolios,against 15% in 2003. Thisproportion is 41% forshareholders more active onthe stock market (at least onetransaction in the last quarter2005).• Almost 71% of internet-usingshareholders pass orders on line.More than one in two seeksinformation there, or advice onlisted companies.• For these people, gains in timeand management costs, as wellas independence vis-à-vis thebank are vital.Relations with listedcompanies: shareholdersdemand greater transparency• The priority for information onfinancial fundamentals such aseconomic and financial health,profitability and so on comesfirst (25%), the prospects of thelisted company are just behind(22%).• Whether letters toshareholders or annual reports,paper is still broadly the supportpreferred for the disseminationof information (73% against25% for the internet).• For shareholder loyalty,the granting of free sharesis approved (96%) and thedistribution of increaseddividends is much expected(77%).• As regards the allocation ofprofits: shareholders are dividedon the repurchase of shares(50% rather in favor with 43%against). Almost six shareholdersin ten prefer a redistribution ofcompany profits in the form ofdividends. Nevertheless, a notinsignificant proportion (36%)would like them reinvested inthe company.• Greater transparency incorporate governance: although46% of shareholders thinkcompanies have made progressover recent years, 48% think theopposite. For all, this is still thepath to be taken, in particularwith regard to directors’remuneration.33