Slide 1: Euronext Q4/FY 2023 results
Euronext Q4/FY 2023 results Analysts call Published on 15 February 2024 at 5.45 pm CET
Slide 2: Agenda and presenters
1. Q4 & FY 2023 highlights 2. Q4 2023 business review 3. Q4 2023 financial review Stéphane Boujnah Giorgio Modica CEO and Chairman of the Chief Financial Officer Managing Board │2
Slide 3: Q4 & FY 2023 highlights
Q4 & FY 2023 highlights 1
Slide 4: Strong Q4 2023 performance driven by Euronext diversified business model
Strong Q4 2023 performance driven by Euronext diversified business model €374.1m €216.3m €1.42 Revenue and income, up +7.8% Adjusted EBITDA, up +15.2% Adjusted2) EPS, +27.9% 60% 57.8% €175.5m non-volume related1) revenue Adjusted EBITDA margin, +3.7pts Net operating cash flow, adjusted for Nord Pool
Slide 5: Strong full-year results demonstrating benefits of diversified business model
Strong full-year results demonstrating benefits of Euronext’s diversified business model combined with continued cost discipline €1,474.7m €864.7m €5.51 Revenue and income Adjusted EBITDA, up +0.4% Adjusted2) EPS, +5.9% +0.5% compared to underlying revenue and income +3.9% compared to reported reven
Slide 6: Strong growth of Group revenue and income driven by non-volume related businesses
Strong growth of Group revenue and income driven by non-volume related businesses FY 2023 revenue and income Technology € 109.9 m Solutions +9.8% Technology Solutions Listing & 8% Corporate Services Advanced Advanced Data 15% Data Services €224.8m Services +6.0% 15% Investor €1,475m Post €370.2m Cas
Slide 7: Progress with key milestones of Borsa Italiana integration
Progress with key milestones of Borsa Italiana integration Achieved milestones Upcoming strategic milestones March 2023 September 2023 November 2023 ✓ Migration of ✓ Phase 2 of BITA ✓ Euronext Clearing Borsa Italiana Optiq® migration and expansion to all cash markets to termination of third- Euronex
Slide 8: Q4 2023 business review
Q4 2023 business review 2
Slide 9: Strong quarter driven by organic growth in non-volume-related business
Strong quarter driven by organic growth in non-volume-related business and solid diversified trading revenue Q4 2023 revenue and income Technology Trading €124.5m Solutions Listing & +7.1% 7% Corporate Services Advanced Data Services 15% Post €94.6m 15% Trade +6.8% Listing & Investor Services €374.1
Slide 10: Reinforced leadership in listing in Europe in Q4 2023
Reinforced leadership in listing in Europe in Q4 2023 Revenue grew +6.9% like-for-like at constant currencies, reported revenue was up +5.0% due to NOK depreciation #1 venue for equity listing in Europe and for debt listing worldwide Revenue in €m 56.2 13 490 53.5 new listings Follow-on transactions
Slide 11: Strong performance of non-volume related businesses
Strong performance of non-volume related businesses Advanced Data Services Revenue up +3.0% Revenue in ▪ Strong performance across the data products offering Q4 2023 56.1 ▪ Solid demand for analytic products Q4 2022 54.5 ▪ Like-for-like at constant currencies, revenue increased +3.2% Technology Solu
Slide 12: Strong diversified trading activities (1/2)
Strong diversified trading activities supporting trading revenue of €124.5 million (+7.1%) (1/2) Cash trading ▪ Revenue down -1.6% and ADV down -4.1% reflecting a low volatility Revenue in €m environment for equity trading Q4 2023 64.1 ▪ Average yield at 0.53bps, above floor following migration of B
Slide 13: Strong diversified trading activities (2/2)
Strong diversified trading activities supporting trading revenue of €124.5 million (+7.1%) (2/2) Fixed income trading Revenue in €m ▪ Record quarter with revenue up +38.0% driven by increasing interest rates and market volatility Q4 2023 30.6 Q4 2022 22.1 ▪ MTS Cash ADV at €27.7 billion, up +79.9% ▪
Slide 14: Strong performance of all Post Trade activities
Strong performance of all Post Trade activities Clearing – exc. NTI ▪ Solid quarter with revenue up +11.5%, driven by stronger bond and Revenue in €m commodities clearing activity. Q4 2023 14.6 17.8 32.3 ▪ First revenue contribution of the expansion of Euronext Clearing Q4 2022 10.4 18.7 29.0 activi
Slide 15: Q4 2023 financial review
Q4 2023 financial review 3
Slide 16: 2024 cost guidance
2024 cost guidance ▪ In 2023, underlying expenses excluding D&A were positively impacted by a one-off accruals release of €6.3 million and by a positive impact of €11.4 million from the NOK depreciation. Consequently, Euronext reported €610.0 million underlying expenses excluding D&A in 2023, compar
Slide 17: Q4 2023 adjusted EBITDA up +15.2% to €216.3 million
Q4 2023 adjusted EBITDA up +15.2% to €216.3 million in €m +13.6% 216.3 200.8 15.5 2.9 2.2 1.9 4.5 57.8% 31.1 Adj. EBITDA 176.9 margin Underlying costs down -0.9% Q4 2022 Revenue Cost Revenue FX impact Non- Q4 2023 Non- Q4 2023 Reported variation at variation at and cost underlying Reported underlyin
Slide 18: Q4 2023 adjusted net income at €148.2 million, up +25.3%
Q4 2023 adjusted net income at €148.2 million, up +25.3% in €m 148.2 +31.5% €130.6m 17.6 Reported 4.4 1.5 3.3 130.6 Net Income 10.8 3.0 +31.5% 24.0 99.3 €148.2m Including €11.4m Adjusted capital gain from Net Income1) Tokeny stake disposal +25.3% €1.42 Adjusted EPS1) +27.9% Q4 2022 EBITDA D&A Net Re
Slide 19: Strong cash flow generation continued
Strong cash flow generation continued CASH FLOW GENERATION 200.8 176.9 194.5 175.5 Reported EBITDA Q4 2023 EBITDA to net operating cash flow conversion rate impacted by: 91.7 Net operating cash flow ▪ Change in working capital related to Nord Pool and Euronext Clearing CCP activities for +€19.0 mill
Slide 20: Q&A
Q&A
Slide 21: Q&A - Speakers
Q&A - Speakers Stéphane Boujnah Giorgio Modica Anthony Attia Nicolas Rivard CEO and Chairman of the Chief Financial Officer Global Head of Derivatives & Global Head of Cash Equity & Managing Board Post Trade Data Services │ 21
Slide 22: Appendix
APPENDIX
Slide 23: Liquidity at end of Q4 2023
Liquidity at end of Q4 2023 in €m 2,006.8 600.0 67.7 29.5 1.4 5.6 12.0 7.2 11.4 23.5 138.0 1,406.8 194.5 2.7 1,318.0 €400m Targeted cash for operation Cash in Q3 Net Exc. Net Net Capex Dividends Dividends Net Payment Proceeds Acquisition Other, Cash in Undrawn Liquidity in 2023, exc. operating Impac
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 occured 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 ou
Slide 25: Adjusted EPS for Q4 2023
Adjusted EPS for Q4 2023 in €m unless specified otherwise Q4 2023 Q4 2022 FY 2023 FY 2022 Net income reported 130.6 99.3 513.6 437.8 EPS reported (€) 1.25 0.93 4.84 4.10 Adjustments of which revenues 0.0 (0.0) 0.0 (49.0) of which Operating expenses exc. D&A (15.5) (11.0) (78.3) (27.2) of which Depre
Slide 26: Q4 2023 income statement
Q4 2023 income statement In €m, unless stated otherwise % var (like-for-like, Q4 2023 Q4 2022 % var The figures in this document have not been audited or reviewed by our external auditor. constant currencies) Revenue and income 374.1 347.0 +7.8% +9.1% Listing 56.2 53.5 +5.0% +6.9% Trading revenue, o
Slide 27: Last twelve months income statement
Last twelve months income statement Q1 2023 Q2 2023 Q3 2023 Q4 2023 LTM reported Revenue and income 372.3 368.1 360.2 374.1 1474.7 Listing 54.7 55.1 54.6 56.2 220.6 Trading Revenue 128.9 118.2 118.3 124.5 490.0 of which Cash trading 71.7 65.2 64.4 64.1 265.4 of which Derivatives trading 14.9 13.0 13
Slide 28: Balance sheet as at 31 December 2023
Balance sheet as at 31 December 2023 in € million As of 31 Dec'23 As of 31 Dec’22 unaudited, in As at 31/12/2023 Non-current assets Property, plant and equipment 114.4 109.4 Right-of-use assets CCP clearing business assets 55.7 42.3 Goodwill and other intangible assets 6,108.2 6,205.8 CCP trading as
Slide 29: Q4 2023 cash flows statement
Q4 2023 cash flows statement in € million Q4 2023 Q4 2022 Profit before tax 176.9 140.8 Adjustments for: - Depreciation and amortisation 45.6 42.6 - Share based payments 3.9 4.2 - Results from equity investments (5.6) (9.8) - Gain on sale of associate (11.4) - - Share of profit from associates and j
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