Slide 1: Euronext Q3 2020 Results
Euronext Q3 2020 Results RELEASED ON 5 NOVEMBER 2020 – 5.45 PM CET 6 November 2020
Slide 2: Agenda
AGENDA Q3 2020 HIGHLIGHTS Q3 2020 BUSINESS REVIEW Q3 2020 FINANCIAL REVIEW Q&A SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of the Chief Financial Officer Managing Board │2
Slide 3: Q3 2020 Highlights
1 Q3 2020 HIGHLIGHTS = ihre EURONEXT pid
Slide 4: Q3 2020 results from diversification and resilient core business
Q3 2020 RESULTS RESULTING FROM CONTINUED BENEFITS FROM DIVERSIFICATION AND RESILIENT CORE BUSINESS ▪ Solid revenue growth reflecting continued diversification, with +€23.1m notably the consolidation of Nord Pool (since Q1 2020) and VP Revenue Securities (since Q3 2020), and resilient core business €
Slide 5: Contemplated acquisition of the Borsa Italiana Group
CONTEMPLATED ACQUISITION OF THE BORSA ITALIANA GROUP ~€4.4trn Creating the backbone of the Capital Markets Union in Europe MARKET #1 LISTING VENUE(1) CAP. ▪ Creating the largest liquidity pool within the European capital markets union aiming to deliver sustainable superior market quality and value f
Slide 6: Q3 2020 Business Review
2 Q3 2020 BUSINESS REVIEW
Slide 7: Q3 2020 revenue up 12.7% driven by acquired businesses
Q3 2020 REVENUE UP +12.7% DRIVEN BY THE CONSOLIDATION OF ACQUIRED BUSINESSES AND RESILIENT CORE BUSINESS €204.8m ▪ +44.9% increase in Post-trade revenue, driven by the first Q3 2020 consolidated +€23.1m 2.0 +7.9% consolidation of revenue from VP +12.7% revenue growth Investor Services €181.7m +3.0%
Slide 8: Listing revenue up 2.9% to €35.8m in Q3 2020
LISTING REVENUE UP +2.9% TO €35.8M IN Q3 2020 Continued strong performance of Euronext Corporate Services Revenue (€m) €34.8m €35.8m ▪ Like-for-like at constant currencies, revenue increased +2.6% +2.9% 0.3 ▪ Corporate Services reported a strong performance, generating €7.8 million in revenue 6.0 7.
Slide 9: Trading revenue up 7.3% to €75.9m (1/2)
TRADING REVENUE UP +7.3% TO €75.9M IN Q3 2020 (1/2) Increased market share and yield in cash trading, despite a less volatile environment Cash trading ▪ Lower trading volumes offset by improved average yield and €53.0m €7.5bn 70.0% market share revenue ADV 0.54bps market share ▪ Like-for-like at con
Slide 10: Trading revenue up 7.3% to €75.9m (2/2)
TRADING REVENUE UP +7.3% TO €75.9M IN Q3 2020 (2/2) Stable FX trading revenue at constant currencies and contribution of Nord Pool trading activities FX trading ▪ Solid results thanks to an improved market share in a less volatile €5.8m $19.3bn environment revenue ADV ▪ Like-for-like at constant cur
Slide 11: Post-trade revenue up 44.9% to €44.6m
POST-TRADE REVENUE UP +44.9% TO €44.6 M Consolidation of the Danish CSD VP Securities revenue and higher clearing revenue Clearing in €m +€1.6m ▪ Higher treasury income offsetting lower derivatives trading 14.9 revenue volumes 13.3 +11.7% Q3 2019 Q3 2020 Custody, Settlement and other post-trade in €
Slide 12: Advanced Data Services, Investor Services and Technology Solutions
ADVANCED DATA SERVICES, INVESTOR SERVICES AND TECHNOLOGY SOLUTIONS Consolidation of Nord Pool and resilient performance of the core business Advanced Data Services in €m ▪ Contribution of recent acquisitions: Nord Pool for +€0.5m +€1.0 m ▪ Resilient market data activity and continuous success of ESG
Slide 13: Q3 2020 Financial Review
3 Q3 2020 FINANCIAL REVIEW
Slide 14: Q3 2020 EBITDA up 9.1% to €117.8m
Q3 2020 EBITDA UP +9.1% TO €117.8 M Robust performance of core trading business and consolidation of acquisitions in €m +9.1% 57.5% EBITDA margin -12.3 -1.9pts 19.2 -2.3 117.8 -1.1 59.7% 6.2 ▪ Nord Pool Organic1) ▪ OPCVM360 EBITDA margin ▪ Ticker ▪ 3Sens ▪ VP Securities 108.0 ▪ Lower capitalization
Slide 15: Q3 2020 net income up 10.6%, adjusted EPS up 13.8%
Q3 2020 NET INCOME UP +10.6% TO €70.2M, ADJUSTED EPS UP +13.8% TO €1.12 PER SHARE in €m +10.6% -2.3 -0.5 70.2 €77.7m -3.2 Q3 Adjusted 9.8 -1.4 4.7 net income1) -0.3 63.5 ▪ Consolidation of ▪ Reduced domestic tax rates €1.12 acquisitions ▪ Enlarged Nordic Q3 Adjusted D&A and PPA footprint EPS1) + 13.
Slide 16: Solid cash flow generation and liquidity position
SOLID CASH FLOW GENERATION AND LIQUIDITY POSITION EBITDA to net operating cash flow Debt and leverage in €m 117.8 ▪ Impact from in €m 1,274 1,278 108.0 changes in 75.9 71.7 working capital of Net debt to EBITDA1) Nord Pool 651 710 ratio at 1.4x Gross Net (vs 1.3x in Q2 2020) EBITDA Net operating cas
Slide 17: Q&A
Q&A
Slide 18: 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 │ 18
Slide 19: Appendix
APPENDIX
Slide 20: Adjusted EPS
ADJUSTED EPS Adjusted EPS reconciliation table In €m unless stated otherwise Q3 2020 Q3 2019 Net Income Reported 70.2 63.5 EPS Reported (€ per share) 1.01 0.91 Intangible assets adj. related to acquisitions (PPA) - 5.4 - 5.5 Exceptional items - 3.5 - 0.3 Tax related to those items 1.4 1.0 Adjusted f
Slide 21: Q3 2020 Income Statement
Q3 2020 INCOME STATEMENT Unaudited, In €m Q3 2020 Q3 2019 % var Revenue 204.8 181.7 +12.7% Listing 35.8 34.8 +2.9% Trading revenue 75.9 70.8 +7.3% Cash Trading 53.0 53.4 -0.6% Derivatives Trading 10.8 11.5 -6.3% Spot FX Trading 5.8 6.0 -2.4% Power trading 6.3 0.0 n/a Investor Services 2.0 1.8 +7.9%
Slide 22: Balance sheet as at 30 September 2020
BALANCE SHEET AS AT 30 SEPTEMBER 2020 Unaudited, In €m As at 30 Sept 2020 As at 30 June 2020 Unaudited, In €m As at 30 Sept 2020 As at 30 June 2020 Non-current assets Shareholders' equity Shareholders' equity 966.2 906.6 Property, plant and equipment 55.5 55.7 Non-controlling interests 31.3 29.4 Rig
Slide 23: Q3 2020 cash flow and liquidity position
Q3 2020 CASH FLOW AND LIQUIDITY POSITION Unaudited, In €m Q3 2020 Q3 2019 Unaudited, In €m Q3 2020 Q3 2019 Profit before tax 97.2 94.7 Cash beginning of period 622.3 324.3 Adjustments for: Investments (incl. subsidiaries net of cash acquired & - 134.5 - 16.2 - Depreciation and amortisation 15.4 13.1
Slide 24: 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 25: 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