Slide 1: Q3'2015 Results Presentation
Q3’2015 RESULTS PRESENTATION 5 November 2015
Slide 2: Corporate Highlights
CORPORATE HIGHLIGHTS Unprecedented third Significant listing quarter of the year for operations in an usually low season Achievement of the first cash trading volumes set of mid-term objectives as an independent company a By year-end expected Stéphane Boujnah will year in advance CAGR of 9% to 10% i
Slide 3: Euronext Business Overview
EURONEXT BUSINESS OVERVIEW
Slide 4: Listing: Momentum Continues from a Successful 2014
LISTING: MOMENTUM CONTINUES FROM A SUCCESSFUL 2014 Exceptionally strong performance in listing: revenues of €19.8m, +50.2% vs Q3 2014 in a Listing Fees conventionally unfavourable season Strong increase in listing activity: total capital raised in Q3’2015 of €21.2 billion compared €19.8m to €14.8 bi
Slide 5: Exceptional Performance in Cash Trading Revenue
EXCEPTIONAL PERFORMANCE IN CASH TRADING REVENUE Q3 revenues up +31.4% vs Q3’2014 – with average daily volumes reaching €8.2 billion, up +43.2% compared to Q3 2014 Acute concentration and materiality of successive rounds of volatility we saw in Q3’2015 to be seen as extraordinary and not as a guideli
Slide 6: Volatility Is an Indicator for ADV Levels
VOLATILITY IS AN INDICATOR FOR ADV LEVELS Macro uncertainty, alongside monetary stimulus will remain the major driver of ADV on our markets in the short to medium term Fears over EU Calmer markets. IPO window Global sell-off over fears of Volatility spikes on ECB QE Greek debt Greek crisis China, de
Slide 7: Derivatives Performance Driven by Commodity Franchise and Index
DERIVATIVES PERFORMANCE DRIVEN BY COMMODITY FRANCHISE AND INDEX Q3’2015 was particularly dynamic with revenues increasing by Euronext – number of contracts traded (lots in mm) +5.3% compared to Q3-2014. Index Equity Commodities 2,6 3,2 ADV on equity index derivatives: +3.4% vs Q3’2014, to 2,1 2,9 2,
Slide 8: Market Data & Indices Benefiting from Indices
MARKET DATA & INDICES BENEFITING FROM INDICES Quarterly revenue up +1.2% vs Q3’2014, to €24.4 million Promising start of our new global index server Launched in September in Paris, London and Amsterdam Agreements were reached in Q3 on three new custom indices, one of which will lead to a new family
Slide 9: Post Trade & Market Solutions Activities
POST TRADE & MARKET SOLUTIONS ACTIVITIES Clearing Market solutions Q3 Revenues up +22.2% vs Q3’2014, to €14.6 million Revenues were down -5.9% vs Q3’2014, to €7.9 million Strong performance of our commodity franchise and buoyant Decrease was mainly due to reduced solution revenue financial derivativ
Slide 10: Financials
FINANCIALS
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS 1st set of mid-term objectives to Quarterly be achieved by year-end EBITDA MARGIN €12.6 million have been 58.0% dedicated to acquire own shares to cover the employee share plans for 2014 & 2015 (1st NET PROFIT CASH OPERATING tranche) THIRD PARTY €47.7m POSITION EXPENSES Second t
Slide 12: Strong Growth in Third Party Revenues
STRONG GROWTH IN THIRD PARTY REVENUES Revenues (unaudited) Comments (€mm) ∆ Q3’15 vs Exceptionally strong performance in cash trading and listing Q3’15 Q3’14 Q3’14 revenue thanks to market volatility and a number of large Listing 19.8 13.2 50.2% listing operations: Trading revenue 61.5 49.0 25.4% Ca
Slide 13: Substantial Reduction in Operating Expenses
SUBSTANTIAL REDUCTION IN OPERATING EXPENSES Operating expenses (unaudited) Comments (€mm) ∆Q3’15 Decrease in most of costs items, benefiting from the Q3’15 Q3’14 vs Q3’14 strict execution of our cost reduction plan: Salaries and employee benefits (27.9) (31.3) -10.8% Staff costs and professional ser
Slide 14: Simplified Income Statement
SIMPLIFIED INCOME STATEMENT Income statement (unaudited) Comments (€mm) Q3’15 Q3’14 EBITDA margin of 58.0% benefited from the EBITDA 77.1 54.1 combination of strong revenue increase and cost Margin 58.0% 44.1% Depreciation and amortisation (3.8) (4.1) reduction Total expenses (59.6) (72.7) Operating
Slide 15: Balance Sheet
BALANCE SHEET Balance sheet summary (unaudited) Comments (€mm) 30 Sep 2015 30 Jun 2015 Cash and cash equivalent of €160m at the end of the Non-current assets period thanks to strong operational performance. Property, plant and equipment 30 29 Increase in other current liabilities, as the income tax
Slide 16: Reported Cash Flow Statement
REPORTED CASH FLOW STATEMENT Cash flow statement (unaudited) (€mm) Q3’15 Q3’14 Net cash provided by/(used in) operating activities 52.8 59.4 Net cash provided by/(used in) investing activities (4.5) (7.1) o/w capital expenditures (4.5) (2.1) Net cash provided by/(used in) financing activities (13.3)
Slide 17: Outlook for the Remaining of 2015
OUTLOOK FOR THE REMAINING OF 2015 2016 9m 2015 FY2015 TARGET REAL OUTLOOK (in € million) 2013 Third party 387 9% to 10% revenue +46 (clearing) ~€500m €393m 2-year (adjusted) 5% CAGR over 2013-2016 = €433 million CAGR Q4’2014: €124m EBITDA margin ~ 53% 54.7% ~55% Cost base 302 (adjusted) +27 (clearin
Slide 18: Financial Management Dashboard
FINANCIAL MANAGEMENT DASHBOARD New mid-term objectives to be released in due course following Stephane Boujnah arrival FY2015 2016 H1 Q3 Q4 Q1 Q2 Q3 TARGET ‘14 ‘14 ‘14 ‘15 ‘15 ‘15 Third party 5% revenue growth +6.9% +10.3% +12.0% +9.6% +11.9% +18.4% 9% to 10% 3-year (adjusted) 2-year CAGR CAGR Cumul
Slide 19: Conclusion
CONCLUSION
Slide 20: Executive Summary
EXECUTIVE SUMMARY An unprecedented third quarter • Strong third party revenue performance (+18.4% vs Q3 2014) 1 • Strict cost discipline resulted in a -18.5% decrease in operational expenses • The strong favorable revenue and expenses variations resulted in a quarterly EBITDA margin up to 58.0% Achi
Slide 21: Disclaimer
DISCLAIMER This presentation is for information purposes only and is not a recommendation to engage in investment activities. The information and materials contained in this presentation are provided ‘as is’ and Euronext does not warrant the accuracy, adequacy or completeness of the information and