Intercontinental Exchange Inc. · NYSE:ICE
Intercontinental Exchange — IPO Roadshow (May 2014)
97 slides from Intercontinental Exchange's IPO roadshow presentation, May 27, 2014
Slide 1: Analyst Presentation April 2014
ANALYST PRESENTATION APRIL 2014 STRICTLY CONFIDENTIAL
Slide 2: Disclaimer
DISCLAIMER By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document has been prepared by Euronext Group N.V. (the “Company”) solely for the purposes of the analyst presentation to be held on Apr
Slide 3: Euronext Presenting Team
EURONEXT PRESENTING TEAM Dominique Cerutti Group Chief Executive Officer Amaury Dauge Lee Hodgkinson Head of Markets & Group Chief Financial Global Sales Officer CEO of Euronext London Diederik Zandstra Anthony Attia Head of Corporate Client CEO of Euronext Paris Group Nick Thornton Catherine Langla
Slide 4: Today's Agenda
TODAY’S AGENDA No. Section Approximate time Presenter Welcome coffee 10.00 CET 30 minutes I. Introduction 10.30 CET 15 minutes J.P. Morgan II. Investment highlights 10.45 CET 1 hour Dominique Cerutti III. Euronext business overview 1. - Listing 11.45 CET 30 minutes Diederik Zandstra 2. - Cash tradin
Slide 5: Introduction
| | Introduction Ai snort
Slide 6: Key Transaction Terms
KEY TRANSACTION TERMS Summary Selling shareholder: IntercontinentalExchange Group, Inc. (“ICE Group” or the “Seller”) Issuer: Euronext Group N.V. (the “Company”) Sector: Stock exchange / Financial services Transaction type: Initial public offering (“IPO”) Structure Institutional private placements i
Slide 7: Preliminary Offering Timetable
PRELIMINARY OFFERING TIMETABLE 8 April 2014 Analyst Presentation 28 April 2014 Submit pre-deal research for first review Comments to be provided to Analysts 30 April 2014 Update of the Analysts on Q1 2014 financials 6 May 2014 Submit pre-deal research for second review 7 May 2014 Comments to be prov
Slide 8: Research Guidelines and Key Contacts
RESEARCH GUIDELINES AND KEY CONTACTS All research analysts must comply with their respective research guidelines Restricted period: From the date you received invitations to this presentation until the start of the Blackout period No distribution in the United States, Canada, Japan or Australia Rese
Slide 9: Investment highlights
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Slide 10: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Leading pan-European equities and derivatives platform with unique single order book model creating 1 unrivalled depth and liquidity 2 Established and diversified sources of revenues 3 State-of-the-art multi-product, multi-currency and low latency technology platform 4 Euro
Slide 11: Leading Pan-European Equities and Derivatives Platform
1 LEADING PAN-EUROPEAN EQUITIES AND DERIVATIVES PLATFORM … A leading pan-European trading platform A leading cash equities trading platform and the premier Domestic market cap of listed companies ( bn as of 28 February 2014) continental listing and financing venue 3,271 2,698 Attractive platform for
Slide 12: Unique Single Order Book Model
1 … WITH UNIQUE SINGLE ORDER BOOK MODEL … The only pan-European exchange… … in multiple countries Issuers / intermediaries FY 2013 total third party revenue split by geography (unaudited 1 ) France Netherlands Portugal Belgium UK The Netherlands Traders / Belgium investors 58% 27% 9% 6% 1% 225mm 103
Slide 13: Creating Unrivalled Depth and Liquidity
1 … CREATING UNRIVALLED DEPTH AND LIQUIDITY 90% Euronext market share 66% 60% Stable market share 30% 33% MTF market share 1 0% Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 Blue Chips 2 Presence time at EBBO with greatest Relative spread Displayed
Slide 14: Established and Diversified Sources of Revenues
2 ESTABLISHED AND DIVERSIFIED SOURCES OF REVENUES Adjusted and estimated revenues by product 1 Trading accounts for 43% of total adjusted Market solutions & and estimated revenues other Listing 9% 12% Significant recurring non-trading revenue Clearing² Post-trade 11% sources 16% Settlement Significa
Slide 15: State-of-the-art Multi-product Low Latency Technology Platform
3 STATE-OF-THE-ART MULTI-PRODUCT, MULTI-CURRENCY AND LOW LATENCY TECHNOLOGY PLATFORM Criteria UTP Capabilities Sectors covered Exchanges, MTF and Broker Crossing Networks UTP is the world’s first multi-market, multi-geography and multi-regulator platform Instruments Cash equities and equity derivati
Slide 16: European Economy on the Cusp of Recovery
4 EUROPEAN ECONOMY ON THE CUSP OF RECOVERY … … positive economic #4 economy globally … … growth set to return … sentiment … Nominal GDP (2012, trn) Euronext countries average Eurozone manufacturing PMI 55 real GDP growth 12.6 53 1.6% 2.9% 2.6% 1.5% 1.2% 1.2% 1.3% 1.3% 1.3% +11% 1.9% 51 1.8% 1.6% 1.5
Slide 17: Favourable Sector Dynamics and Increasing Market Activity
4 … WITH FAVOURABLE SECTOR DYNAMICS AND INCREASING MARKET ACTIVITY Evolution of Western European IPO activities (number of IPOs) Euronext Other Western Europe markets Rebound of European market activity 57 43 Strengthening IPO market 33 28 47 18 Strong IPO pipeline for 2014, both for large 37 25 26
Slide 18: Independence Allows New Strategy to Be Executed
5 INDEPENDENCE ALLOWS NEW STRATEGY TO BE EXECUTED, INCREASING POTENTIAL FOR PRODUCT INNOVATION, ASSET CLASS DIVERSIFICATION, OPERATING OPTIMISATION AND EFFICIENCIES Euronext will leverage its unique model to expand its positioning as a leading capital raising centre in Europe Boost existing core bus
Slide 19: Low Capital Intensity, Resilient Free Cash Flow, Dividend Potential
6 LOW CAPITAL INTENSITY, RESILIENT FREE CASH FLOW GENERATION AND STRONG DIVIDEND POTENTIAL Benefits from clearing revenue without the capital exposure Relatively low capital No risk taking / credit exposure intensity Modest annual capital expenditure requirement Diversified and recurring revenue str
Slide 20: Experienced Management Team
7 EXPERIENCED MANAGEMENT TEAM WITH A DEEP BENCH OF TALENT Dominique Cerutti Group Chief Executive Officer Joined NYSE Euronext in 2009 as President & Deputy CEO Member of the Managing Board Member of the Board of Directors of LCH.Clearnet Group Was a member of the Board of Directors of NYSE Euronext
Slide 21: Euronext business overview
III Euronext business overview
Slide 22: Snapshot
SNAPSHOT Total adjusted and estimated revenue FY 2013 (unaudited) Largest continental European listing venue with more than 1,300 issuers and market cap of c. 2.7trn 433mm 1 261 global companies, 799 SMEs, 243 micro caps and c.4,600 corporate, financials and government bonds listed Global leader in
Slide 23: Euronext Listing
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Slide 24: Listing: Introduction
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other LISTING: INTRODUCTION Euronext’s connection with the real economy enabling companies to reach the next stage of their 1 development Credible business partnership offering a pro
Slide 25: Euronext Is a Leading Equity Financing Centre in Europe
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other EURONEXT IS A LEADING EQUITY FINANCING CENTRE IN EUROPE ... #2 in Europe 2 by offering value of main markets IPOs … Strong flow of new companies to the market 1 … (2013, mm) Ma
Slide 26: Strong Corporate Franchise
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other ... WITH STRONG CORPORATE FRANCHISE ... Global franchise SME franchise Industry breakdown by market cap Industry breakdown by market cap Basic materials Telecom Basic materials
Slide 27: Attractive Partnership Proposition Supported by Investors
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade ... ATTRACTIVE PARTNERSHIP trading indices solutions & other PROPOSITION SUPPORTED BY INVESTORS ... Corporate issuers are offered a unique partnership comprising of Top global investors A strong and recognisabl
Slide 28: Diversified Markets Offering
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … AND HAS A DIVERSIFIED MARKETS OFFERING … Euronext provides global companies and SMEs with Dedicated to SMEs (with market cap of less than 1bn): access to a quality regulated
Slide 29: Positioned for Growth with Positive Market Sentiment
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other ... POSITIONED FOR GROWTH WITH POSITIVE MARKET SENTIMENT ... Lehman After Greece Debt Austerity Measure are Permanent Bailout fund Multiple Global shocks Greek elections and Eu
Slide 30: Generating a Resilient Revenue Stream
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other ... GENERATING A RESILIENT REVENUE STREAM Reported corporate revenues Reported corporate revenues by product ( mm, unaudited 1 ) (FY 2013, unaudited 1 ) Stock Annual fees Admis
Slide 31: Listing: Key Takeaways
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other LISTING: KEY TAKEAWAYS A B C Leading financing centre Attractive partnership Diverse listing choices in Europe proposition for issuers European leader with more than 1,300 issu
Slide 32: Cash Trading
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Slide 33: Cash Trading: Introduction
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other CASH TRADING: INTRODUCTION 1 Cash business strongly positioned in both absolute terms and vs. European peers 2 Core Eurozone franchise benefiting from micro and macro investmen
Slide 34: Leading Pan-European Cash Trading Venue
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade EURONEXT IS A LEADING trading indices solutions & other PAN-EUROPEAN CASH TRADING VENUE ACROSS VARIOUS PRODUCTS… #2 in Europe 1 by domestic market cap … #3 in Europe by ETFs number of trades 3 ( bn, as of 28 Fe
Slide 35: Diversified Portfolio of Key Products
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … WITH A DIVERSIFIED PORTFOLIO OF KEY PRODUCTS … Description LTM volume evolution ( bn) 135 126 138 Cash equities 110 119 114 110 #1 cash market in continental 108 101 109 118
Slide 36: Significant Upside
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … AND SIGNIFICANT UPSIDE … Potential for improving equity trading velocity Strengthening equity trading value 1 in Euronext markets (as of 28 February 2014) ( bn) 138 135 173%
Slide 37: In a Stabilised Market
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … IN A STABILISED MARKET … Breakdown of European cash equities trading as of 28 February 2014 Lit books 1 Dark MTFs 2 OTC reports 3 57% 3% 39% Regulated markets (concentrated i
Slide 38: With Unrivalled Depth and Liquidity
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … WITH UNRIVALLED DEPTH AND LIQUIDITY … 90% Euronext market share 66% 60% Stable market share 30% 33% MTF market share 1 0% Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar
Slide 39: Regulation Creating Opportunities for Other Cash Products
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade … AND REGULATION TO trading indices solutions & other CREATE OPPORTUNITIES FOR OTHER CASH PRODUCTS … Current offer Regulatory tailwinds Euronext positioning Develop UK RIE facility on London ETFs will be subjec
Slide 40: Generating Revenues from Multiple Sources and Client Bases
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … GENERATING REVENUES FROM MULTIPLE SOURCES AND CLIENT BASES Reported revenue split by product Cash trading ADV by client flows 2 (FY 2013, unaudited 1 ) Fixed Funds Japan Othe
Slide 41: Cash Trading: Key Takeaways
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other CASH TRADING: KEY TAKEAWAYS A B C D Market leader quality margin and sound CCP partnership Stable 66% market share Superior market quality and Stable, sustainable and Agreement
Slide 42: Derivatives Trading
* EURONEXT @ DERIVATIVES TRADING
Slide 43: Derivatives Trading: Introduction
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other DERIVATIVES TRADING: INTRODUCTION Re-prioritising underexploited business through an aggressive delivery programme of new products and 1 services 2 Global regulatory reform to
Slide 44: Attractive Derivatives Product Portfolio
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other EURONEXT HAS AN ATTRACTIVE DERIVATIVES PRODUCT PORTFOLIO … Volume contribution 1 Key products Euronext’s LTM open interests evolution (lots in mm) (LTM March 2014) 74 individua
Slide 45: Strong Derivatives Trading Activities
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … WITH STRONG DERIVATIVES TRADING ACTIVITIES … Open interests for European exchanges 1 Euronext open interests (lots in mm, monthly as of 28 February 2014) (lots in mm) 91 36 1
Slide 46: Well Positioned Across Derivatives Product Lines
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … AND IS WELL POSITIONED ACROSS DERIVATIVES PRODUCT LINES … #2 in Europe by stock options open interest 1 #3 in Europe by stock index futures open interest 1 (‘000, monthly as
Slide 47: Adapting to Changing Regulatory Environment
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade … AND TO ADAPT AND BENEFIT trading indices solutions & other FROM CHANGING REGULATORY ENVIRONMENT … Requirement Impact Opportunity Greater regulatory oversight of MTFs Cash equities Re-balancing of playing fiel
Slide 48: Providing Revenue Growth Potential and Diverse Client Base
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade … PROVIDING REVENUE GROWTH trading indices solutions & other POTENTIAL AND A DIVERSE CLIENT BASE Reported revenue split by product Derivatives trading ADV by client flows 2 (FY 2013, unaudited 1 ) Currency Germ
Slide 49: Clearing: CSA with LCH.Clearnet SA
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other CLEARING: CSA WITH LCH.CLEARNET SA Overview Post-trade services are important to Euronext Clearing service agreement with LCH.Clearnet SA for listed cash and derivative product
Slide 50: Clearing: CSA with LCH.Clearnet SA (cont'd)
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other CLEARING: CSA WITH LCH.CLEARNET SA (CONT’D) Details of Cash and Derivatives agreement with LCH.Clearnet SA Cash agreement Derivatives agreement Applicable from January 2013 New
Slide 51: Derivatives Trading: Key Takeaways
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other DERIVATIVES TRADING: KEY TAKEAWAYS A B Expansion of C Potential for Leading position single stock growth in index derivatives derivatives Strong local derivatives platform Intr
Slide 52: Market Data & Indices
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Slide 53: Market Data & Indices: Introduction
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other MARKET DATA & INDICES: INTRODUCTION Well developed market data product suite, over 340 vendors disseminating data to 190,000 screens in 1 more than 140 countries 2 Resilient, h
Slide 54: Well Developed Market Data Product Suite
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other EURONEXT HAS A WELL DEVELOPED MARKET DATA PRODUCT SUITE … Revenue contribution Description Distribution of real time prices Pre-trade: current bid and offer prices and the dept
Slide 55: Resilient Revenues
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … WITH RESILIENT REVENUES Reported revenue Reported market data revenue split ( mm, unaudited 1 ) (FY 2013, unaudited 1 ) Market data Indices Commodities Retail 2% 4% Derivativ
Slide 56: Market Data & Indices: Key Takeaways
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other MARKET DATA & INDICES: KEY TAKEAWAYS A B C Leading position Resilient business Market Data initiatives Over 340 vendors disseminating data to Nearly one fifth of Euronext reven
Slide 57: Universal Trading Platform
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Slide 58: The Only Pan-European Exchange
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other EURONEXT IS THE ONLY PAN-EUROPEAN EXCHANGE … Relying on harmonised market rules and practices, consolidated infrastructures and a common regulatory framework, Euronext has buil
Slide 59: Supported by UTP, a Best-in-class Trading System
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other SUPPORTED BY UTP, A BEST-IN-CLASS TRADING SYSTEM The UNIVERSAL TRADING PLATFORM is a multi-market, multi-geography and multi-regulator platform offering customers a unique oppo
Slide 60: Technology Strategy Relying on Leading Edge Assets
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other WITH A TECHNOLOGY STRATEGY RELYING ON LEADING EDGE ASSETS Euronext controls a range of leading-edge assets to deliver best-of-breed services Software assets Perpetual licence f
Slide 61: Model Creates an Unrivalled Position in Europe
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other THIS MODEL CREATES AN UNRIVALLED POSITION IN EUROPE Diversity of the liquidity Competitive market quality Own Retail Account 3% Other 4% 2% EBBO with Displayed Blue Chips 3 Pre
Slide 62: Technology: Key Illustrative Facts
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other TECHNOLOGY: KEY ILLUSTRATIVE FACTS 99,96% 113µs average availability on our 526 member sites and Equities platform in 700 member lines customer roundtrip time when trading on U
Slide 63: Market Solutions & Other
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Slide 64: Market Solutions & Other: Introduction
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other MARKET SOLUTIONS & OTHER: INTRODUCTION Market Solutions makes Euronext technology and services available to other 1 markets A unique opportunity to build on the technology that
Slide 65: Industry Leading Technology Platform Being Re-optimised
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade EURONEXT USES AN INDUSTRY trading indices solutions & other LEADING TECHNOLOGY PLATFORM, WHICH IS BEING RE-OPTIMISED … Euronext delivers unique solutions at all levels of the traded markets industry CCG Global
Slide 66: Will Drive the Growth in the Future
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other … AND WILL DRIVE THE GROWTH IN THE FUTURE Reported revenue Reported revenue split by product ( mm, unaudited 1 ) (FY 2013, unaudited 1 ) NSC Market Solutions XDP 8% 8% Cash Inf
Slide 67: Market Solutions & Other: Key Takeaways
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other MARKET SOLUTIONS & OTHER: KEY TAKEAWAYS A B C -of-the-art -optimisation Strong assets and platform underway expertise Best of breed information technology Optimising IT systems
Slide 68: Post-trade
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Slide 69: Interbolsa
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other INTERBOLSA Overview National Central Securities Depository for Portugal National Settlement Systems for securities for Portugal supporting settlement of operations resulting fr
Slide 70: Post-trade Revenue
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other POST-TRADE REVENUE Reported Interbolsa revenue Reported Interbolsa revenue split by product ( mm, unaudited 1 ) (FY 2013, unaudited 1 ) Corporate Other Actions 1% 8% Settlement
Slide 71: Post-trade: Key Takeaways
3. Derivatives 4. Market data & 6. Market 1. Listing 2. Cash trading 5. UTP 7. Post-trade trading indices solutions & other POST-TRADE: KEY TAKEAWAYS Interbolsa: stable and profitable business CSD, settlement and numbering agency in Portuguese market Stable recurring revenue stream at low cost T2S,
Slide 72: Financials
IV | Financials
Slide 73: Introduction
INTRODUCTION Last three years: the end cycle of strong market disruptions? 2011-2013 macro environment 2011-2013 market conditions and volatility Historical combined financial statements reflect business segment within NYSE Euronext Today, a new Euronext: new business perimeter, different business m
Slide 74: Macroeconomic Trends
MACROECONOMIC TRENDS Euronext countries 1 average real GDP growth Global investment flows Global net cash flow into equity ( bn) 1.6% 2.9% 2.6% 1.5% 1.2% 1.2% 1.3% 1.3% 1.3% 15 Global net cash flow into bond ( bn) 10 Inflation 5 0 1.8% 1.8% 1.9% 1.6% 1.7% (5) 1.5% 0.9% (10) (15) (0.4%) (0.2%) (20) 2
Slide 75: Reported Revenues by Businesses
REPORTED REVENUES BY BUSINESSES Reported revenues by businesses (unaudited 1 ) Comments ( mm) FY 2011 FY 2012 FY 2013 Reduction in listing revenue primarily due to decrease in warrants and ETFs Listing 63 61 53 Trading revenue 281 202 187 Decrease in trading largely attributable to lower volumes, we
Slide 76: Adjusted and Estimated Revenues
ADJUSTED AND ESTIMATED REVENUES Adjusted and estimated revenues (unaudited 1 ) Evolution of related party revenue (unaudited 1 ) ( mm) FY 2011 FY 2012 FY 2013 ( mm) FY 2013 IT op. and maintenance services LIFFE UK 50 62 88 Listing 53 IT op. and maintenance services LIFFE US 9 7 5 R&D services 6 5 2
Slide 77: Established and Diversified Revenue Sources
ESTABLISHED AND DIVERSIFIED REVENUE SOURCES… Revenues breakdown Comments Established diversified revenue sources with reduced reliance on Market trading revenues solutions & The Derivatives Clearing Agreement (effective April 1, 2014) other Listing 9% provides additional revenue from clearing servic
Slide 78: Operating Expenses
OPERATING EXPENSES Operating expenses (unaudited 1 ) Comments Expenses to be paid under the Derivatives Clearing ( mm) FY 2011 FY 2012 FY 2013 Agreement are estimated to amount to 27mm 2 and are not included in the figures in the table Salaries and employee benefits 122 126 133 Potential pre tax ope
Slide 79: Profitability
PROFITABILITY Summary of reported income statement (unaudited 1 ) Operational margins (unaudited Revenue evolution and profitability (unaudited 1 ) 1 ) ( mm) FY 2011 FY 2012 FY 2013 Revenue ( mm) EBITDA margin EBIT margin Total revenue 557 495 482 557 Total op. expenses (excl. D&A) (272) (294) (282)
Slide 80: Medium to Long Term Objectives
MEDIUM TO LONG TERM OBJECTIVES Potential in revenue growth and margins improvement Comments Recurring revenue streams Targeted medium to long term adjusted and Established and diversified sources of revenues estimated revenue CAGR of c.5% 2 Diverse client base with underexploited growth potential 43
Slide 81: Balance Sheet
BALANCE SHEET Balance sheet summary (unaudited 1 ) Comments ( mm) FY 2011 FY 2012 FY 2013 Related party loans and related party borrowings are linked Non-current assets to historical NYSE Euronext Group, Euronext is targeting the Property, plant and equipment 36 36 28 following key financial items f
Slide 82: Strong Cash Flow Generation
STRONG CASH FLOW GENERATION Free cash flow 1 / EBITDA (unaudited 2 ) Comments High cash flow conversion with recurring revenue streams 81% Modest annual capital expenditure requirement 66% 66% Market expertise and proven, multi-asset class technology infrastructure allow launching new products witho
Slide 83: Cash Flow Statement
CASH FLOW STATEMENT Cash flow statement (unaudited 1 ) ( mm) FY 2011 FY 2012 FY 2013 Net cash provided by / (used in) operating activities 215 155 179 Net cash provided by / (used in) investing activities (10) (19) 22 o/w capital expenditures (11) (16) (6) Net cash provided by / (used in) financing
Slide 84: Governance & regulation
fi ener V | Governance & regulation
Slide 85: Governance of Euronext Group N.V.
GOVERNANCE OF EURONEXT GROUP N.V. A Federal model and a Two Tier Board The Euronext “federal model” concept brings the different Euronext markets together under common ownership and management, and retains local identities, specificities, and local licences to operate the local regulated markets The
Slide 86: Governance of Euronext Group N.V. (cont'd)
GOVERNANCE OF EURONEXT GROUP N.V. (CONT’D) Chairman R. Van Tets A. Bergen 2 M. da Silva 2 Supervisory A. de Pret 2 J.M. Forneri 1,2 Board Board members J.M. Hessels 1,2 S. Hill P. Oddo 2 J. Sprecher Board composition currently under consideration in connection with the IPO Chairman: Euronext Group D
Slide 87: Regulation Governance: A Federal Model
REGULATION GOVERNANCE: A FEDERAL MODEL One Holding Company (Euronext Group N.V.), with separate legal entities in each of the jurisdictions, having a national licence to operate markets College of Regulators (COR) Local Regulator Local Regulator Local Regulator Local Regulator Local Regulator AFM FS
Slide 88: Concluding remarks
fi ener VI | Concluding remarks
Slide 89: Euronext: An Attractive Investment Proposition
EURONEXT: AN ATTRACTIVE INVESTMENT PROPOSITION 89
Slide 90: Appendices
fi ener vil Appendices
Slide 91: Income Statement
INCOME STATEMENT Income statement (unaudited¹) ( mm) FY 2011 FY 2012 FY 2013 Listing 63 61 53 Cash trading 189 140 138 Derivatives trading 92 62 49 Market data & indices 87 87 84 Post-trade 22 21 21 Market solutions & other 40 50 41 Related party revenue 65 74 95 Total revenues 557 495 482 Salaries
Slide 92: Adjusted and Estimated Revenues Reconciliation
ADJUSTED AND ESTIMATED REVENUES RECONCILIATION FY 2013 adjusted and estimated revenues (unaudited, mm) 46 (95) 95 482 433 41 21 84 49 138 53 Listing Cash Derivatives Market data Post-trade Market Related party Total Estimated Related party Adjusted trading trading & indices (Interbolsa) solutions re
Slide 93: Balance Sheet
BALANCE SHEET Assets (unaudited 1 ) ( mm) FY 2011 FY 2012 FY 2013 Non-current assets Property, plant and equipment 36 36 28 Goodwill and other intangible assets 338 331 324 Deferred income tax assets 23 29 22 Financial investments 93 95 48 Post-employment benefits 5 4 0 Other receivables 3 3 2 Total
Slide 94: Balance Sheet (cont'd)
BALANCE SHEET (CONT’D) Parentfs net investment and liabilities (unaudited 1 ) ( mm) FY 2011 FY 2012 FY 2013 Total parent’s net investment 481 115 234 Non-current liabilities Related party borrowings 40 40 40 Deferred income tax liabilities 2 0 1 Post-employment benefits 4 19 9 Provisions 3 3 5 Other
Slide 95: Service Level Agreements with ICE Group
SERVICE LEVEL AGREEMENTS WITH ICE GROUP Following the creation of the new Euronext entity, certain standard arm’s length long term SLAs in place with ICE Group Co-location Data centres SFTI Technology (UTP) Description ICE will operate the co- ICE to retain Basildon data ICE will provide SFTI Eurone
Slide 96: Service Level Agreements with ICE Group (cont'd)
SERVICE LEVEL AGREEMENTS WITH ICE GROUP (CONT’D) Transitional services between Euronext and ICE Group Long term services In place until end 2014 or earlier in place until after end 2014 Market Data SFTI access centre in IT support to LIFFE Licence of equity indices administration Amsterdam Services
Slide 97: Glossary
GLOSSARY ADV Average Daily Volume IP Intellectual Property AFM The Netherlands Authority for the Financial Markets IPO Initial Public Offering AMF The French stock market regulator Autorité des Marchés Financiers ISIN International Securities Identification Number ATVs Alternative Trading Venues ITA
IntercontinentalExchange Group — IPO Roadshow (May 2014) on 6ix