Slide 1: Q2'2017 Results Presentation
Q2’2017 RESULTS PRESENTATION 28 July 2017
Slide 2: Euronext Presenting Team
EURONEXT PRESENTING TEAM Stephane Boujnah Giorgio Modica CEO & Chairman of Group Chief Financial the Managing Board Officer Lee Hodgkinson Anthony Attia Head of Markets & Global Head of Listing Global Sales 28 July 2017 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY Strong performance in Q2’2017 with solid trading and listing activities I Revenues of €137.3 million in Q2’2017 compared to €132.3 million in Q2’2016, up +3.8% Strong EBITDA, at €79.2 million, representing an EBITDA margin of 57.7% Strengthening core business and delivering on
Slide 4: Q2'2017 Financial Highlights
Q2’2017 FINANCIAL HIGHLIGHTS Record revenues supported by an improved financial and macro environment EBITDA MARGIN Increase in operating expenses excl. D&A driven 57.7% by IT project & business initiatives Decrease in headcount as of 30 June 2017 vs. end of Q1’2017, following the completed mi
Slide 5: Record Performance Despite an Increase in Operating Expenses
RECORD PERFORMANCE DESPITE AN INCREASE IN OPERATING EXPENSES Revenues Operating expenses In €m In €m +6.3% +3.8% 54.6 58.1 132.3 137.3 +5.4% 5.2 5.0 8.4 8.5 -0.2% 26.0 25.9 27.3 -4.6% 26.4 -1.9% Custody & Staff Expenses 23.6 Settlement +1.1% 23.3 Market Solutions & 5.1 System & 13.3 Other revenue2)
Slide 6: Strong Cash Flow Generation and Liquidity Position
STRONG CASH FLOW GENERATION AND LIQUIDITY POSITION EBITDA / operating cash flow conversion rate Balance sheet In €m In €m Assets Liabilities & Equity 756.7 742.8 756.7 742.8 56% 23% 16% 77.7 54% 79.2 184.6 223.4 12% 17% 585.9 576.2 328.9 331.5 44.2 EBITDA 42.0 102.0 30.7 60% 72% 35.1 106.8 141.2 81.
Slide 7: Strong Quarter in Listing Supported by Large Secondary Market Operations
STRONG QUARTER IN LISTING SUPPORTED BY LARGE SECONDARY MARKET OPERATIONS Listing Fees Money raised1) In €m In €bn # of 14 9 +1.1% listings +18.9% 23.6 105.8 23.3 1.1 1.8 88.9 1.2 2.2 5.1 3.5 104.3 8.4 7.7 86.1 7.5 8.4 2.8 1.5 Q2'2016 Q2'2017 Q2'2016 Q2'2017 Annual fees Follow ons IPOs Other Bond fee
Slide 8: Building Up a Complete Corporate Services Offering
BUILDING UP A COMPLETE CORPORATE SERVICES OFFERING Acquisition of iBabs, tangible progress of the build-up of the offering On-going commercial roll out of the existing services with positive developments and new clients Continuous enhancement of existing services with increasing integration an
Slide 9: Positive Sentiment for Eurozone Continues
POSITIVE SENTIMENT FOR EUROZONE CONTINUES Long volatility down-trend continued into 2017. Volatility level at 14.5 in May, the lowest since January 2015 Confidence in European equities accelerated in recent months and reached above US level for the first time since Dec 2015. Together with positi
Slide 10: Strengthened Market Share and Stronger Cash Trading Volumes
STRENGTHENED MARKET SHARE AND STRONGER CASH TRADING VOLUMES Market quality Average daily turnover Q2’2017/Q2’2016 (€m) Blue Chips Presence EBBO with Displayed +18.5% +21.1% -10.6% +19.1% -8.5% EBBO setter Relative 8,386 (30 June time at greatest size market 7,819 (%) spread (bps) 7,077 Q2'2016 2017)
Slide 11: Improved Competitive Landscape in Derivatives Trading
IMPROVED COMPETITIVE LANDSCAPE IN DERIVATIVES TRADING Euronext – number of contracts traded (lots in m) Average daily volume Q2’2017/Q2’2016 (‘000) Index Equity Commodities +27.3% +49.8% +6.0% +45.7% -8.5% 3.2 3.9 3.1 3.1 4.4 3.9 630 2.4 3.7 3.4 3.4 3.3 3.6 3.0 Q2'2016 18.3 17.1 3.3 20.7 15.5 14.3 1
Slide 12: Closing of the FastMatch Acquisition Expected in Q3
CLOSING OF THE FASTMATCH ACQUISITION EXPECTED IN Q3 TRADING UPDATE ADV1) ($bn) Revenues3) ($m) +60.8% +59.5% +48.8% +43.3% 1 20.5 6.5 17.7 5.8 4.6 11.0 12.9 3.9 Q1'2016 Q1'2017 Q2'2016 Q2'2017 Q1'2016 Q1'2017 Q2'2016 Q2'2017 Market share2) EBITDA3) ($m) EBITDA 16.9% 41.0% 27.6% 39.6% Margin +350bps
Slide 13: Non-Transactional Businesses
NON-TRANSACTIONAL BUSINESSES In €m -4.6% Market data and Decrease in revenues due to large contractual audit findings in Q2’2016 27.3 26.0 Launch of two new indices in collaboration with Morningstar: the indices Morningstar Developed Markets Europe 100 and the Morningstar Euro 50 indices New p
Slide 14: Optiq Benefits Now Visible to Clients
OPTIQ® BENEFITS NOW VISIBLE TO CLIENTS Migration to Market Data Gateway is close to completion, delivering on company objectives with OPTIQ® STEP 1 positive client feedback Excellent stability "The new feed is very stable and Migration to the Market Data Gateway for the move onto production f
Slide 15: Appendices
APPENDICES
Slide 16: Income Statement
INCOME STATEMENT Income statement (unaudited) In €m Q2'17 Q2'16 var % Revenues Listing 23.6 23.3 1.1% Trading revenues, of which Cash Trading 50.3 45.8 9.8% Derivatives Trading 10.4 10.2 2.2% Market Data & indices 26.0 27.3 -4.6% Post-trade, of which Clearing 13.3 12.3 8.0% Custody and Settlement 5.
Slide 17: Balance Sheet
BALANCE SHEET Summary balance sheet (unaudited) In €m 30-Jun-17 31-Mar-17 Non-current assets Property, plant and equipment 27.9 28.7 Goodwill and other intangible assets 331.5 328.9 Investments in associates and JV 16.0 16.0 Available-for-sale financial assets 166.9 126.6 Other non-current assets 12
Slide 18: Cash Flow & Liquidity
CASH FLOW & LIQUIDITY Cash flow statement (unaudited) Liquidity (unaudited) In €m Actual Actual In €m 30-Jun-17 31-Mar-17 Q2'17 Q2'16 Cash beginning of period 141.2 174.5 Debt repayment - (70.0) Net cash flows from operating activities 44.2 42.0 Dividend (98.8) - Net cash flow from investing activit
Slide 19: 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 as to the accuracy, adequacy or completeness of the informatio