Slide 1: Euronext Q4 and full year 2022 results
Euronext Q4 and full year 2022 results 1,467.8 Analysts call 10 February 2023 Published on 9 February 2023 at 5.45 pm CET
Slide 2: Agenda
1 Q4 & FY 2022 highlights 2 Q4 2022 business review 3 Q4 2022 financial review 4 Q&A Stéphane Boujnah Giorgio Modica CEO and Chairman of Chief Financial Officer the Managing Board │2
Slide 3: Q4 & FY 2022 highlights
Q4 & FY 2022 highlights i EURONEXT
Slide 4: 2022 demonstrating strength of Euronext's diversified business model
2022 demonstrating strength of Euronext’s diversified business model 2022 underlying revenue and income1) • Leading venue for equity listing in Europe and for debt Listing €218.4m listing worldwide +15.1% • 83 new equity listings, incl. 20 international companies Technology Listing • Increase of ann
Slide 5: 2022 key figures: €1,467.8 million revenue, €861.6 million adjusted EBITDA
2022 demonstrating strength of Euronext’s diversified business model and cost control allowing to beat 2022 cost guidance €1,467.8 million €861.6 million €5.21 Underlying revenue and Adjusted EBITDA, +11.7% Adjusted3) EPS, -4.8% income1) 58.7% €4.10 +13.0% Adjusted EBITDA margin Reported EPS, -4.6%
Slide 6: Solid Q4 2022 with 60% of non-volume related revenue
Solid Q4 2022 demonstrating Euronext’s diversified business model with 60% of non-volume related revenue €347.0 million €187.9 million €1.11 Revenue and income Adjusted EBITDA, -12.0% Adjusted2) EPS, -18.0% -6.2% 54.1% €0.93 reported Adjusted EBITDA margin Reported EPS, -11.5% 60% 130% €118.2m of no
Slide 7: Upgrade of Borsa Italiana Group integration synergies target
Upgrade of 2024 Borsa Italiana Group integration related synergies target 2022 2023 2024 Q1 2023 Migration of Borsa Italiana cash markets to Optiq® REVENUE SYNERGIES Q4 2023 Migration of other Borsa Italiana markets to Optiq® allowing for termination of third party trading platform contract COST SYN
Slide 8: Euronext Clearing expansion to all Euronext markets
Euronext Clearing expansion to all Euronext markets Upscaled business model Added efficiencies to Leveraging state-of-the-art ▪ Complete review of the Default Fund customers technology related risk framework and calibration ▪ Deployment of a Value-At-Risk (VAR) ▪ Upgraded technology allowing for to
Slide 9: Continued disciplined capital deployment
Continued disciplined capital deployment 2.6x net debt to EBITDA ratio Strategic partnership with Spafid at end of December 2022 ▪ Acquisition of General Meetings, Designated Representative, and Euronext outlook lifted to ‘Positive’ by Shareholder’s Registers activities of Spafid by Euronext Securit
Slide 10: Delivering on our Fit for 1.5° ESG commitment with validated SBTi targets
Delivering on our Fit for 1.5° ESG commitment with validated SBTI targets SBTi1)-aligned targets Operational emissions contraction target Supplier engagement target At least 73.5% 46.2% By 2027, Euronext suppliers, representing FIT FOR 1.5° Reduction of its Scope 1 and Scope 2 market-based reduction
Slide 11: Q4 2022 business review
Q4 2022 business review i EURONEXT
Slide 12: Q4 2022 revenue reflects diversification of business
Q4 2022 revenue reflects diversification of business in softer environment for cash equity trading Q4 2022 revenue and income • Resilient activity in tougher market conditions Technology Solutions in €m Listing €53.5m • 24 new equity listings +3.1% • 9 international listings2) & Other 8% Listing • S
Slide 13: Listing revenue up +3.1% to €53.5 million in Q4 2022
Listing revenue up +3.1% to €53.5 million in Q4 2022 #1 equity listing venue in Europe and #1 for debt listing worldwide +3.1% 24 €237.3bn Revenue growth New equity Total money listings raised in €m ▪ Resilient equity listing performance in an overall declining capital 53.5 Annual fees 51.9 3.1 mark
Slide 14: Trading revenue down 12.1% at €116.3 million in Q4 2022 (1/2)
Trading revenue down –12.1% at €116.3 million in Q4 2022 (1/2) CASH TRADING (19% of Q4 2022 revenue and income) ▪ Increase of average order size to pre-pandemic level €65.1m €10.1bn 0.50bps 65.3% impacting revenue capture revenue ADV Yield market share -17.9% -17.2% ▪ Solid market share with an upti
Slide 15: Trading revenue down 12.1% at €116.3 million in Q4 2022 (2/2)
Trading revenue down –12.1% at €116.3 million in Q4 2022 (2/2) FIXED INCOME TRADING ▪ Economic environment in Europe favouring money market trading volumes €22.1m €15.4bn €397.0bn €1.1bn reflected in lower MTS Cash volumes and increased MTS Repo volumes revenue MTS CASH MTS REPO Other fixed income -
Slide 16: Post-trade revenue down 2.5% to €88.6 million in Q4 2022
Post-trade revenue down –2.5%, excluding NTI, to €88.6 million in Q4 2022 Dynamic bond clearing activity and resilient performance of Euronext Securities partially offset by softer volumes impacting equity clearing and settlement activity CLEARING Euronext Clearing LCH SA ▪ Total clearing revenue: €
Slide 17: Advanced Data Services, Investor Services and Technology Solutions
Advanced Data Services, Investor Services and Technology Solutions ADVANCED DATA SERVICES Q4 2022 54.5 ▪ Strong traction of the core data business, solid index activities and €54.5m good momentum of the advanced data solutions franchise revenue Q4 2021 50.7 +7.3% ▪ Like-for-like at constant currenci
Slide 18: Q4 2022 financial review
Q4 2022 financial review i EURONEXT
Slide 19: 2023 underlying costs guidance
2023 underlying costs guidance In 2023, Euronext expects its underlying operating costs excluding D&A1) to be around €630 million, compared to the annualized H2 2022 underlying operating costs excluding D&A of €620 million. ▪ The slight increase in costs only results from costs related to non-volume
Slide 20: Q4 2022 adjusted EBITDA down 12.0% to €187.9 million
Q4 2022 adjusted EBITDA down –12.0% to €187.9 million in €m -12.0% 213.4 23.0 2.5 187.9 54.1% 11.0 Adj. EBITDA 176.9 0.0 margin Beat of 2022 cost guidance Q4 2021 Underlying Underlying Q4 2022 Non- Non- Q4 2022 Adjusted revenue costs increase Adjusted underlying underlying Reported EBITDA decrease E
Slide 21: Q4 2022 adjusted net income down 18.2% to €118.2 million
Q4 2022 adjusted net income down –18.2% to €118.2 million, adjusted EPS at €1.11 per share in €m -11.9% 118.2 112.7 €118.2m 19.0 Adjusted 22.6 99.3 Net Income1) 5.3 2.8 0.1 0.6 6.2 €1.11 Adjusted EPS1) -18.0% Q4 2021 EBITDA D&A Net Results Income tax Share of Q4 2022 Total non- Q4 2022 net financing
Slide 22: Cash flow generation in Q4 2022 and debt and leverage at end of 2022
Cash flow generation in Q4 2022 and debt and leverage at end of 2022 CASH FLOW GENERATION 199.5 145.6 176.9 Q4 2022 EBITDA to net operating cash flow Reported EBITDA 135.1 conversion rate impacted by: 91.7 ▪ Change in working capital related to Nord Pool CCP Net operating cash flow activities for €2
Slide 23: Liquidity at end of December 2022
Liquidity at end of December 2022 1,553.5 in €m 600.0 147.1 296.6 54.3 7.8 953.5 30.7 2.3 9.9 5.4 0.3 4.5 10.5 868.7 Negative impact of short-term movement in outstanding power sales customers’ and suppliers’ invoices related to Nord Pool CCP activities €400m Targeted cash for operation Cash in Chan
Slide 24: Q&A
Q&A
Slide 25: Q&A - Speakers
Q&A - Speakers Stéphane Boujnah Giorgio Modica Anthony Attia Simon Gallagher CEO and Chairman of the Chief Financial Officer Global Head of Primary Head of Cash and Managing Board Markets & Post Trade Derivatives │ 25
Slide 26: Appendix
APPENDIX
Slide 27: 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 28: Adjusted EPS for Q4 and FY 2022
Adjusted EPS for Q4 and FY 2022 in €m unless specified otherwise Q4 2022 Q4 2021 FY 2022 FY 2021 Net income reported 99.3 112.7 437.8 413.3 EPS reported (€) 0.93 1.05 4.10 4.30 Adjustments of which revenues (0.0) (0.0) (49.0) (0.0) of which Operating expenses exc. D&A (11.0) (13.9) (27.2) (57.2) of
Slide 29: Q4 2022 income statement
Q4 2022 income statement % var In €m, unless stated otherwise Q4 2022 Q4 2021 % var (like-for-like, The figures in this document have not been audited or reviewed by our external auditor. constant currencies) Revenue and income 347.0 370.1 -6.2% -6.1% Listing 53.5 51.9 +3.1% +3.8% Trading revenue, o
Slide 30: Q4 2022 income statement
Q4 2022 income statement Q4 2022 Q4 2021 in € million, unless stated otherwise Underlying Non-underlying Reported Underlying Non-underlying Reported Revenue and income 347.0 (0.0) 347.0 370.1 - 370.1 Listing 53.5 - 53.5 51.9 - 51.9 Trading revenue, of which 116.3 - 116.3 132.3 - 132.3 Cash trading 6
Slide 31: FY 2022 income statement
FY 2022 income statement FY 2022 FY 2021 in € million, unless stated otherwise Underlying Non-underlying Reported Underlying Non-underlying Reported Revenue and income 1,467.8 (49.0) 1,418.8 1,298.7 (0.0) 1,298.7 Listing 218.4 - 218.4 189.7 - 189.7 Trading revenue, of which 514.1 - 514.1 465.3 - 465
Slide 32: Balance sheet as at 31 December 2022
Balance sheet as at 31 December 2022 31 December 30 September unaudited, in €m As at 31/12/2022 in € million 2022 2022 Non-current assets Property, plant and equipment 109.4 103.5 CCP clearing business assets Right-of-use assets 42.3 48.0 CCP trading assets at fair value 7,486.7 Goodwill and other i
Slide 33: Q4 2022 cash flows statement
Q4 2022 cash flows statement in € million Q4 2022 Q4 2021 Profit before tax 140.8 151.3 Adjustments for: - Depreciation and amortisation 42.6 48.9 - Share based payments 4.2 3.0 - Share of profit from associates and joint ventures (2.8) (3.3) - Changes in working capital (254.9) 29.4 Cash flow from
Slide 34: FY 2022 cash flows statement
FY 2022 cash flows statement in € million FY 2022 FY 2021 Profit before tax 614.2 580.7 Adjustments for: - Depreciation and amortisation 160.2 134.6 - Share based payments 14.0 10.4 - Share of profit from associates and joint ventures (8.8) (7.4) - Changes in working capital 57.5 41.1 Cash flow from
Slide 35: 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 36: 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