Slide 1: Q3 2017 Results Presentation
Q3 2017 RESULTS PRESENTATION 8 November 2017 – 9.00am CET Released on 8 November 2017 – 7.30am CET
Slide 2: Euronext Q3 2017 Results - Main Speakers
EURONEXT Q3 2017 RESULTS - MAIN SPEAKERS Stéphane Boujnah Giorgio Modica CEO & Chairman of the Group Chief Financial Managing Board Officer Euronext Q3 2017 results 2
Slide 3: Highlights of Q3 2017
HIGHLIGHTS OF Q3 2017 Improvement of Cash average daily volume (ADV) up +19.5% compared to Q3 2016, to €6.9bn volumes in a Strengthened cash equity market share at 65.2%, increased from 64.2% in Q2 2017 stabilised macro and compared to 59.9% in Q3 2016, with a robust yield environment Improved
Slide 4: Q3 2017 Results Driven by Volume Growth and New Acquisitions
Q3 2017 RESULTS DRIVEN BY VOLUME GROWTH AND NEW ACQUISITIONS Strong growth of Q3 2017 revenue driven by EBITDA improvement in volumes and the impact of initiatives and acquisitions €69.5 +13.3% Increase in operational expenses excl. D&A driven 53.9% margin by IT projects and new initiatives Mo
Slide 5: Q3 2017 Revenue Up Thanks to Listing and Cash Performance and New Acquisitions
Q3 2017 REVENUE UP THANKS TO LISTING AND CASH PERFORMANCE AND THE IMPACT OF NEW ACQUISITIONS Revenue +14.1% Q3 2017 revenue up 14.1% to €128.7m (+€15.9m) In €m 128.7 IPO revenue (+€0.4m) and follow-on revenue +3.4% 8.3 (+€1.4m) increases show the growing use of equity 112.8 financing on capital ma
Slide 6: Q3 2017 EBITDA Up +13.3% Thanks to Good Operating Performance
Q3 2017 EBITDA UP +13.3% THANKS TO GOOD OPERATING PERFORMANCE In €m +13.3% EBITDA up +13.3%, driven by good operating performance -1.6 -1.1 -2.0 -3.1 69.5 15.9 Staff expenses growth despite seasonal decrease in 61.3 costs, and due to incorporation of new acquisitions EBITDA 54.4% in Q3 2017: iBabs
Slide 7: Dynamic Listing Activity Supported by Large Secondary Market Operations in Q3 2017
DYNAMIC LISTING ACTIVITY SUPPORTED BY LARGE SECONDARY MARKET OPERATIONS IN Q3 2017 Listing revenue1) Growing primary market activity In €m +46.6% IPO revenue up +68.6% 20.2 Favourable market conditions +8.3% Continued trend of large capitalisations 8.2 13.8 returning to Euronext’s markets su
Slide 8: Strengthened Market Share and Cash Trading Volumes in Q3 2017
STRENGTHENED MARKET SHARE AND CASH TRADING VOLUMES IN Q3 2017 Cash trading Improved cash market share at 65.2%, Revenue per trade Market share for Q3’2017 to its strongest quarterly level since IPO, supported In bps, single counted by the continued optimisation of the SLP -5.6% 65.2% programme and
Slide 9: Improved Competitive Landscape in Derivatives Trading and First Revenue from Spot FX
IMPROVED COMPETITIVE LANDSCAPE IN DERIVATIVES TRADING AND FIRST REVENUE FROM SPOT FX TRADING Derivatives trading Increasing trading activity in financial derivatives, Average daily volume Revenue per lot despite less volatile market conditions In ‘000 lots, single counted In €, double counted Im
Slide 10: Good Performance of Clearing and Market Solutions
GOOD PERFORMANCE OF CLEARING AND MARKET SOLUTIONS Market Data and Indices In €m -2.5% Decrease in revenue due to negative base effect 25.9 25.2 (large contractual audit findings in Q3 2016) New market data agreements for members and vendors to comply with MiFID II data disaggregation Q3’2016 Q3’
Slide 11: Latest Developments
LATEST DEVELOPMENTS Cash ADV up +13.3% compared Oct. 2016, to €7.2bn October 2017 Derivatives ADV up +8.6% volumes Spot FX ADV up +33.0% Integration of First cross-selling actions (new markets, new clients) newly acquired Build up of FX Tape initiative for real-time post-trade information
Slide 12: Q&A Session
Q&A SESSION 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 Euronext Q3 2017 results 12
Slide 13: Appendices
APPENDICES
Slide 14: Cash – Market Quality and Share
CASH – MARKET QUALITY AND SHARE Market quality Blue Chips Presence time at EBBO with greatest EBBO setter Relative spread (bps) Displayed market Euronext displayed (30 Sep 2017) EBBO (%) size (%) (%) depth (€) market depth vs MTFs Euronext 90% 56% 74% 3.82 78,736 BATS Europe 43% 0% 3% 7.55 20,149 x
Slide 15: 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 742.8 958.3 742.8 958.3 69.5 83% 23% 16% 61.3 81% 226.2 57.9 12% 49.8 223.4 17% 615.8 493.9 576.2 EBITDA 331.5 164.7 106.8 97.6 35.0 60% 72% 36.5 81.2
Slide 16: Q3 2017 P&L
Q3 2017 P&L Unaudited In €m Q3'17 Q3'16 % change 9M'17 9M'16 % change Revenue 128.7 112.8 +14.1% 392.6 371.6 +5.7% Listing 20.2 13.8 +46.6% 62.6 51.3 +22.0% Trading revenue 57.2 49.1 +16.4% 174.7 165.2 +5.8% Cash Trading 44.4 40.0 +11.0% 141.4 135.0 +4.8% Derivatives Trading 9.9 9.1 +8.7% 30.4 30.3
Slide 17: Balance Sheet as at 30 Sept. 2017
BALANCE SHEET AS AT 30 SEPT. 2017 Unaudited, in €m Category As at 30 September 2017 As at 30 June 2017 Non-current assets Property, plant and equipment 27.9 27.9 Goodwill and other intangible assets 493.9 331.5 Deferred income tax assets 6.4 4.0 Investments in associates and JV 16.8 16.0 Available-f
Slide 18: Cash Flow & Liquidity
CASH FLOW & LIQUIDITY Cash Flow Statement for Q3 2017 Liquidity for Q3 2017 Unaudited, in €m Unaudited, in €m Q3’17 Q3’16 Q3’17 Q2’17 Profit before tax 57.6 55.9 Cash beginning of period 81.2 141.2 Debt repayment - - Adjustments for: Dividend - (98.8) - Depreciation and amortization 3.6 3.8 Cash acc
Slide 19: Disclaimer and Contacts
DISCLAIMER AND CONTACTS 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 t