Euronext Nv · EURONEXT:ENX
Euronext Nv — Q1 2022 Earnings Presentation
31 slides from Euronext Nv's earnings presentation, May 18, 2022
Slide 1: Euronext Q1 2022 Results
Euronext Q1 2022 Results Analysts call 18 May 2022 Published on 17 May 2022 at 5.45 pm CEST
Slide 2: Q1 2022 highlights, business review, financial review, Q&A
1 Q1 2022 highlights 2 Business review 3 Financial review 4 Q&A Stéphane Boujnah Giorgio Modica CEO and Chairman of Chief Financial Officer the Managing Board │2
Slide 3: Q1 2022 highlights
Q1 2022 highlights i EURONEXT
Slide 4: Strong Q1 2022 performance driven by growth in non-volume related businesses
Strong Q1 2022 performance driven by growth in non-volume related businesses and trading activities, cost control and integration of the Borsa Italiana Group €395.7 million €252.2 million €1.54 Revenue and income Adjusted EBITDA Adjusted1) EPS +6.0% +11.4% +7.3% pro forma pro forma reported 63.7% Ad
Slide 5: Strong momentum in the delivery of integration plans and synergies
Strong momentum in the delivery of integration plans and synergies €15.2m €31.4 million of cumulated non-recurring implementation costs incurred at the run-rate annual end of Q1 2022 synergies delivered since April 2021 Confirmed go-live of Euronext new Core Data Centre on 6 June 2022, unlocking the
Slide 6: Cost guidances upgraded thanks to continued strong cost discipline
Cost guidances upgraded thanks to continued strong cost discipline and efficient integration €612 million underlying Upgraded 2022 -€10.0m costs expected in 2022 cost guidance Underlying costs (vs. €622 million from expected in 2022 February 2022 guidance) €150 million of cumulated Upgraded 2024 -€1
Slide 7: Advancing on the pillars of “Fit for 1.5°” commitment
Advancing on the pillars of “Fit for 1.5°” commitment “FIT FOR 1.5°” Empowering our people Committing to the alignment of our own 200+ employees trained to climate emissions with a 1.5-degree trajectory, change issues the most demanding climate ambition, Gender diversity targets reached under the Sc
Slide 8: Q1 2022 business review
Q1 2022 business review i EURONEXT
Slide 9: Q1 2022 record revenue up +58.8%
Q1 2022 record revenue up +58.8% driven by strong results from trading and non-volume related activities and the consolidation of the Borsa Italiana Group €395.7m 2.4 +58.8% +€146.6m 23.1 +94.5% ▪ Revenue grew +6.0% pro forma Q1 2022 consolidated revenue growth Transitional 52.6 +43.9% revenue and ▪
Slide 10: Listing revenue up +42.9% to €55.4 million in Q1 2022
Listing revenue up +42.9% to €55.4 million in Q1 2022 #1 equity listing venue in Europe and #1 for debt listing worldwide +42.9% 22 €325.2bn #1 Revenue growth New equity Total money In Europe for the listing +12.4% pro forma listings raised of ETFs 55.4 ▪ Resilient performance in a highly volatile m
Slide 11: Record trading revenue up +57.2% to €150.8 million (1/2)
Record trading revenue up +57.2% to €150.8 million in Q1 2022 (1/2) CASH TRADING ▪ Record cash trading revenue driven by the second-best quarter for €94.0m €15.5bn 0.47bps 68.1% volumes ever on a pro forma basis revenue ADV1 Yield market share ▪ Resilient market share and yield in highly volatile ma
Slide 12: Record trading revenue up +57.2% to €150.8 million (2/2)
Record trading revenue up +57.2% to €150.8 million in Q1 2022 (2/2) FX TRADING ▪ Second best quarter ever for Euronext FX in terms of revenue and €7.2m $24.5bn volumes due to peak in FX volatility revenue ADV +18.0% +14.4% ▪ Like-for-like at constant currencies, revenue increased +9.9% POWER TRADING
Slide 13: Post-trade revenue, including net treasury income, up +72.9%
Post-trade revenue, including net treasury income, up +72.9% to €109.2 million in Q1 2022 Revenue growth driven by consolidation of Euronext Clearing (formerly CC&G) and Euronext Securities Milan, and increased derivatives volumes CLEARING Euronext Clearing LCH SA ▪ Total clearing revenue: €31.9m, +
Slide 14: Advanced Data Services, Investor Services and Technology Solutions
Advanced Data Services, Investor Services and Technology Solutions ADVANCED DATA SERVICES ▪ Consolidation of the Borsa Italiana Group data activities 52.6 Q1 2022 ▪ Strong performance of market data business +€16.1m revenue ▪ Sustained growth of the data solutions offering Q1 2021 36.5 +43.9% ▪ New
Slide 15: Q1 2022 financial review
Qi 2022 financial review i EURONEXT
Slide 16: Q1 2022 adjusted EBITDA up +66.8% to €252.2 million
Q1 2022 adjusted EBITDA up +66.8% to €252.2 million in €m +11.4% 252.2 3.3 5.5 246.7 22.5 63.7% Adj. EBITDA 226.4 margin +3.1pts 151.2 +11.4% Pro forma adj. EBITDA growth Q1 2021 Q1 2021 Pro forma Pro forma costs Q1 2022 Q1 2022 non- Q1 2022 Adj. EBITDA Pro forma revenue growth exc. D&A reduction Ad
Slide 17: Q1 2022 net income up +46.5%, adjusted EPS up +7.3%
Q1 2022 net income up +46.5% to €143.8 million, adjusted EPS up +7.3% to €1.54 per share in €m 164.4 +10.9% 2.5 20.6 €164.4m 0.1 8.6 Adjusted 143.8 26.3 0.6 0.5 Net Income1) 129.7 Dividend received from Euroclear in Q1 2021 €1.54 Adjusted EPS1) +7.3% reported +10.9% Pro forma net income growth Q1 20
Slide 18: Cash flow generation and debt and leverage at end of March 2022
Cash flow generation in Q1 2022 and debt and leverage at end of March 2022 CASH FLOW GENERATION 368.6 Q1 2022 adjusted EBITDA to net operating cash flow conversion rate impacted by: 252.2 Adjusted EBITDA 212.1 ▪ Higher positive changes in working capital 185.9 Net operating cash flow 151.2 Excl. wor
Slide 19: Liquidity at end of March 2022
Liquidity at end of March 2022 in €m 247.1 1,507.7 600.0 1,154.8 17.0 8.8 5.8 0.8 0.7 10.6 2.7 368.6 804.4 €400m Targeted cash for operation Cash in Net Net Capex Purchase of Payments Proceed Acquisition Other, Change in Cash in Undrawn Cash in Liquidity Q4 2021 operating current of lease from of ow
Slide 20: Q&A
Q&A
Slide 21: Q&A - Speakers
Q&A - Speakers Stéphane Boujnah Giorgio Modica Anthony Attia CEO and Chairman of the Chief Financial Officer Global Head of Primary Managing Board Markets & Post Trade │ 21
Slide 22: Appendix
APPENDIX
Slide 23: Change in financial reporting
Change in financial reporting To highlight its underlying performance, since Q1 2022, Euronext publishes underlying recurring costs, adjusted EBITDA and non-recurring costs. Euronext has removed the exceptional items line from its financial statements. Consequently, costs previously reported as exce
Slide 24: Number of outstanding shares used for EPS computation
Number of outstanding shares used for EPS computation Following the rights issue that occurred on 29 April 2021, whose settlement occurs on 14 May 2021, the average outstanding number of shares (basic) to be used for EPS computation is provided below. For comparative purposes, average numbers of out
Slide 25: Adjusted EPS for Q1 2022
Adjusted EPS for Q1 2022 In €m unless stated otherwise Q1 2022 Q1 2021 Net income reported 143.8 98.2 EPS Reported (€ per share) 1.35 1.29 Adjustments of which Operating expenses excluding D&A (5.5) (6.0) of which Depreciation and amortisation (21.8) (6.4) of which Net financing expense (0.9) (1.5)
Slide 26: Q1 2022 income statement
Q1 2022 income statement % var In €m, unless stated otherwise (like-for-like, % var Q1 2022 Q1 2021 % var The figures in this document have not been audited or reviewed by our external auditor. constant Pro forma currencies) Revenue and income 395.7 249.2 +58.8% +6.9% +6.0% Listing 55.4 38.8 +42.9%
Slide 27: Last twelve months pro forma income statement
Last twelve months pro forma income statement Q1 2021 Pro Q2 2021 Q3 2021 Q4 2021 Q1 2022 Last 12 months in € million forma Pro forma Reported Reported Reported Pro foma Revenue and income 373.2 371.9 350.6 370.1 395.7 1,488.3 Listing 49.3 51.4 50.8 51.9 55.4 209.6 Trading Revenue of which Cash trad
Slide 28: Balance sheet as at 31 March 2022
Balance sheet as at 31 March 2022 unaudited, in €m As at 31/03/22 As at 31/12/21 unaudited, in €m As at 31/03/2022 Non-current assets Property, plant and equipment 100.0 97.6 CCP clearing business assets Right-of-use assets 59.2 66.2 9,307.4 CCP trading assets at fair value Goodwill and other intang
Slide 29: Q1 2022 cash flows and outstanding debt
Q1 2022 cash flows and outstanding debt unaudited, in €m Q1 2022 Q1 2021 Outstanding debt issued Profit before tax 199.6 136.1 Adjustments for: Amount Maturity Interest - Depreciation and amortization 40.2 16.0 €500 million 2025 Fixed - Share based payments 2.8 2.4 - Share of profit from associates
Slide 30: 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
Slide 31: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Chief Communications and Investor Relations Officer Clément Kubiak, Investor Relations Manager Judith Stein, Investor Relations Officer ir@euronext.com +33 1 70 48 24 27 www.euronext.com/en/investor-relations