Slide 1: Euronext Q2 2020 Results
Euronext Q2 2020 Results RELEASED ON 29 JULY 2020 – 5.45 PM CEST 30 July 2020
Slide 2: Agenda and speakers
AGENDA Q2 2020 HIGHLIGHTS Q2 2020 BUSINESS REVIEW Q2 2020 FINANCIAL REVIEW Q&A SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of the Chief Financial Officer Managing Board │2
Slide 3: Q2 2020 Highlights
4 Q2 2020 HIGHLIGHTS : PEURONEXT Somer ia
Slide 4: Q2 2020 results reflecting a solid operating performance
Q2 2020 RESULTS REFLECTING A SOLID OPERATING PERFORMANCE ▪ Strong revenue growth reflecting higher trading volumes in all +€51.7m asset classes and continued diversification with the consolidation Revenue of Oslo Børs VPS and Nord Pool €210.7m ▪ Non-volume related revenue representing 49% of total r
Slide 5: ESG | Empowering Sustainable Growth
ESG | EMPOWERING SUSTAINABLE GROWTH Launch of a new suite of ESG-focused products, services and initiatives ▪ Introducing the new Euronext ESG 80 index and derivatives ▪ Aligning Europe’s leading Low Carbon 100 index to the Paris Agreement ▪ Expanding Euronext ESG bonds offering to other ESG bonds:
Slide 6: Update on VP Securities acquisition
UPDATE ON VP SECURITIES ACQUISITION PROCESS UPDATE ▪ 90.68% of the total shares1) secured as of 15 July 2020, compulsory acquisition procedure to acquire the remaining shares to be implemented in September 2020 ▪ Danish FSA clearance received on 15 July 2020, closing expected in August 2020 ▪ Expect
Slide 7: Q2 2020 Business Review
2 Q2 2020 BUSINESS REVIEW
Slide 8: Q2 2020 revenue up 32.5% driven by increased trading volumes
Q2 2020 REVENUE UP +32.5% DRIVEN BY INCREASED TRADING VOLUMES IN ALL ASSET CLASSES AND THE CONSOLIDATION OF ACQUIRED BUSINESSES ▪ Doubled post-trade revenue thanks the Investor Services consolidation of the Norwegian CSD Q2 2020 consolidated €210.7m revenue and higher clearing revenue +32.5% revenue
Slide 9: Listing revenue up 21.3% to €36.1m in Q2 2020
LISTING REVENUE UP +21.3% TO €36.1M IN Q2 2020 Strong performance of Euronext Corporate Services and consolidation of Oslo Børs VPS ▪ Corporate Services reported a strong performance, generating €7.9 million in Revenue (€m) Money raised (€ bn) revenue in Q2 2020, including €0.2 million of contributi
Slide 10: Trading revenue up 34.0% to €89.4m (1/2)
TRADING REVENUE UP +34.0% TO €89.4 IN Q2 2020 (1/2) Volatile environment supporting cash and derivatives trading volumes Cash trading ▪ Strong combined market share at 71.3%, in a dynamic environment €65.1 m €10.0 bn 0.53 bps 71.3% ▪ Strong organic yield at 0.56 bps (vs 0.54bps in Q2 2019) revenue A
Slide 11: Trading revenue up 34.0% to €89.4m (2/2)
TRADING REVENUE UP +34.0% TO €89.4 IN Q2 2020 (2/2) FX driven by higher volatility and first contribution of Nord Pool trading activities FX trading ▪ Solid results thanks to a volatile environment through the €6.6 m $20.6 bn quarter revenue ADV ▪ Like-for-like, revenue increased +18.5% +21.0% +18.1
Slide 12: Post-trade revenue up 64.5% to €36.1m
POST-TRADE REVENUE UP +64.5% TO €36.1 M Consolidation of the Norwegian VPS CSD revenue and higher clearing revenue Clearing in €m ▪ Higher derivatives trading volumes over the quarter supported by +€1.4 m high volatility, partially offset by less favourable volume mix 14.2 15.6 revenue ▪ Higher trea
Slide 13: Advanced Data Services, Investor Services and Technology Solutions
ADVANCED DATA SERVICES, INVESTOR SERVICES AND TECHNOLOGY SOLUTIONS Consolidation of Oslo Børs VPS and Nord Pool, and resilient performance of the core business Advanced Data Services in €m ▪ Contribution of recent acquisitions: Nord Pool for +€0.3m +€4.9 m ▪ Resilient market data activity and contin
Slide 14: Q2 2020 Financial Review
3 Q2 2020 FINANCIAL REVIEW
Slide 15: Q2 2020 EBITDA up 27.8% to €125.4m
Q2 2020 EBITDA UP +27.8% TO €125.4 M Strong performance of core trading business and consolidation of acquisitions in €m +27.8% 59.5% ▪ Oslo Børs VPS EBITDA margin ▪ Nord Pool -17.3 ▪ OPCVM360 -2.2pts ▪ Ticker 33.0 -7.4 125.4 -0.2 ▪ Oslo Børs VPS 61.7% 19.2 ▪ Nord Pool 98.1 ▪ OPCVM360 Organic1) ▪ Ti
Slide 16: Q2 2020 net income up 53.7% to €82.1m, adjusted EPS up 33.1%
Q2 2020 NET INCOME UP +53.7% TO €82.1M, ADJUSTED EPS UP +33.1% TO €1.23 PER SHARE in €m +53.7% ▪ Exceptionals in Q2’19 related to the acquisition -0.5 0.9 of Oslo Børs VPS -3.6 -0.3 82.1 9.7 -4.7 €86.0m Q2 Adjusted 27.3 net income1) 53.4 €1.23 ▪ Interest expenses Q2 Adjusted ▪ Consolidation of on se
Slide 17: Solid cash flow generation and liquidity position
SOLID CASH FLOW GENERATION AND LIQUIDITY POSITION EBITDA to net operating cash flow Debt and leverage 125.4 1,274 in €m in €m 98.1 1,021 80.6 Net debt to EBITDA1) EBITDA 651 602 Gross Net ratio at 1.3x 39.5 (vs 1.3x in Q4 2019) Net operating cash flow Q2 2019 Q2 2020 Q1 2020 Q2 2020 1,022.3 Liquidit
Slide 18: VEURONEXT: ===
VEURONEXT: ===
Slide 19: Q&A - Speakers
Q&A - SPEAKERS Stéphane Boujnah Giorgio Modica Anthony Attia CEO and Chairman of the Chief Financial Officer Managing Board Managing Board Member │ 19
Slide 20: Appendix
APPENDIX
Slide 21: VP Securities: from 2019 reported costs to cash costs
VP SECURITIES: FROM 2019 REPORTED COSTS TO CASH COSTS The €7 million costs synergies will also include capitalised costs and thus be communicated as « cash costs », as described below, in order to fully reflect the synergy effort. 2019A 2019A (DKK’000) (€m) Revenue 425,841 57.2 Operating costs - 300
Slide 22: Adjusted EPS, seasonality and FX sensitivity
AJUSTED EPS, SEASONALITY AND FX SENSITIVITY Adjusted EPS reconciliation table Nord Pool revenue historical seasonality In 2018, some exceptional items such as impairments and revaluations of buy-options were not % of Nord Pool annual revenue 2019 2018 considered as a part of the net income adjustmen
Slide 23: Q2 2020 income statement
Q2 2020 INCOME STATEMENT Unaudited, In €m Q2 2020 Q2 2019 % var Organic (like for like at constant currency) Revenue 210.7 159.0 +32.5% +12.4% Listing 36.1 29.7 +21.3% +6.0% Trading revenue 89.4 66.7 +34.0% +19.0% Cash trading 65.1 50.7 +28.4% +23.0% Derivatives trading 11.0 10.6 +4.5% +0.3% Spot FX
Slide 24: Balance sheet as at 30 June 2020
BALANCE SHEET AS AT 30 JUNE 2020 Unaudited, In €m As at 30 Jun 2020 As at 31 Mar 2020 Unaudited, In €m As at 30 Jun 2020 As at 31 Mar 2020 Non-current assets Shareholders' equity 906.6 898.1 Property, plant and equipment 55.7 56.7 Shareholders' equity 29.4 31.8 Right-of-use assets 46.2 48.9 Non-cont
Slide 25: Q2 2020 cash flow and liquidity position
Q2 2020 CASH FLOW AND LIQUIDITY POSITION Unaudited, In €m Q2 2020 Q2 2019 Unaudited, In €m Q2 2020 Q2 2019 Profit before tax 111.2 78.6 Cash beginning of period 418.8 419.1 Debt subscribed 255.7 538.9 Adjustments for: Investments (incl. subsidiaries net of cash acquired & associates) - 1.5 - 565.6 -
Slide 26: 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 27: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Chief Communications and Investor Relations Officer Clément Kubiak, Investor Relations officer ir@euronext.com +33 1 70 48 24 27 www.euronext.com/en/investor-relations