Slide 1: Q3 2018 Results Presentation
Q3 2018 RESULTS PRESENTATION 12 November 2018 Released on 12 November 2018 – 7.30am CET
Slide 2: Main Speakers
MAIN SPEAKERS Stéphane Boujnah CEO & Chairman of the Managing Board Giorgio Modica CFO Euronext Q3 2018 results |2
Slide 3: Agenda
AGENDA I Q3 2018 Highlights II Q3 2018 Financials Euronext Q3 2018 results |3
Slide 4: I. Q3 2018 Highlights
I. Q3 2018 HIGHLIGHTS
Slide 5: Strong Q3 2018 Financials
STRONG Q3 2018 FINANCIALS Growth in all business lines Strong market share in cash trading business at 65.7% and +17.2% Revenue +€22m yield at 0.52 bps €150.9m Excl. IFRS 15 9-month 2018 revenue of €457.7m, +13.9% +€18m up +16.6% vs 9-month 2017 Core business costs down (-8.2%) while Group costs up
Slide 6: First Achievements of the 2019 Agility for Growth Targets
FIRST ACHIEVEMENTS OF THE 2019 AGILITY FOR GROWTH TARGETS Q3 2018 update 2019 announced targets1) 61.3% EBITDA margin Deliver value to For core business and selected 61-63% growth initiatives for the last 12 EBITDA margin shareholders months1) Strengthen resilience of the >65% >60% Average market sh
Slide 7: II. Q3 2018 Financials
II. Q3 2018 FINANCIALS
Slide 8: Q3 2018 Revenue Up 17.2%
Q3 2018 REVENUE UP 17.2% KEY DRIVERS: ACQUISITIONS, TRADING AND MARKET DATA PERFORMANCE Revenue +17.2% Q3 2018 listing revenue up 17.2% to €150.9m (+€22.2m) In €m 150.9 +13.9% to €146.7m excluding IFRS 15 impact +37.6% ▪ Strong increase in listing revenue thanks to the 27,8 128.7 consolidation of Eu
Slide 9: Listing Revenue Up 37.6% to €27.8m
LISTING REVENUE UP 37.6% TO €27.8M CONTRIBUTION OF EURONEXT DUBLIN AND CORPORATE SERVICES TO THE LISTING ACTIVITY Listing revenue In €m +37.6% +16.5% to €23.5m excluding IFRS 15 impact ▪ Contribution of Euronext Dublin +€5.4m 27.8 Equity Annual fees 6,1 +7.8% ▪ Continued clients traction from Corpor
Slide 10: Cash Trading Revenue Up 9.2% to €48.5m
CASH TRADING REVENUE UP 9.2% TO €48.5M IMPROVED REVENUE CAPTURE AND MARKET SHARE Cash trading Revenue per trade1) Market share for Q3 2018 In bps, single counted Cash trading: revenue up +9.2% to €48.5m +4.2% ▪ Improved cash market share at 65.7%, thanks to 0,52 65.7% superior liquidity supported by
Slide 11: Robust Derivatives Trading and Spot FX Trading Revenue
ROBUST DERIVATIVES TRADING AND SPOT FX TRADING REVENUE Derivatives trading Derivatives trading: revenue up +11.6% to €11.0m Average daily volume Revenue per lot Financial derivatives In ‘000 lots, single counted In €, double counted ▪ Volumes supported by increased volatility +8.5% Commodities 501 5
Slide 12: Other Businesses
OTHER BUSINESSES GOOD PERFORMANCE OF CLEARING ACTIVITY AND NON TRANSACTIONAL BUSINESSES Market data and Indices In €m +16.7% ▪ Positive impact of new market data agreements in 2018 29,4 25,2 ▪ Incremental contribution from Euronext Dublin activities Q3 2017 Q3 2018 Market solutions & Other revenue I
Slide 13: Q3 2018 EBITDA Up 26.4% to €87.8m
Q3 2018 EBITDA UP 26.4% TO €87.8M INCREMENTAL REVENUE FROM ACQUISITIONS COMBINED WITH CONTINUED COST DISCIPLINE In €m +26.4% EBITDA up +26.4% to €87.8m (58.2% margin), driven by strong operating performance and cost discipline 87.8 -0.2 ▪ Impact of consolidation of Euronext Dublin and -4.6 1,0 22,2
Slide 14: Healthy Cash Flow Generation and Liquidity Position
HEALTHY CASH FLOW GENERATION AND LIQUIDITY POSITION EURONEXT RATED “A” (OUTLOOK STABLE) BY STANDARD & POOR’S EBITDA / operating cash flow conversion rate Debt In €m 30 June 2018 30 September 2018 In €m 83.3% 80.6% 502 503 87,8 69,5 70,8 57,9 149 EBITDA 96 Net operating cash flow Q3 2017 Q3 2018 Gros
Slide 15: Q&A
Q&A Stéphane Boujnah Anthony Attia CEO & Managing Board Member Chairman of the Managing Board Giorgio Modica CFO Euronext Q3 2018 results |15
Slide 16: Appendices
APPENDICES
Slide 17: IFRS15 Deferral Adjustments Impacts
IFRS15 DEFERRAL ADJUSTMENTS IMPACTS P&L adjustments – for informative purpose only Reported Excl. IFRS 15 Reported (incl. IFRS 15) Adjusted for IFRS 15 IFRS 15 deferral adjustments impact (excl. IFRS 15 impact) Unaudited, In €m Q3 2018 Q2 2018 Q1 2018 Q3 2018 Q2 2018 Q1 2018 Q3 2018 Q2 2018 Q1 2018
Slide 18: Q3 2018 P&L
Q3 2018 P&L Unaudited, In €m Q3 2018 Q3 2017 % var Revenue 150.9 128.7 +17.2% Listing 27.8 20.2 +37.6% Trading revenue 64.9 57.2 +13.5% Cash Trading 48.5 44.4 +9.2% Derivatives Trading 11.0 9.9 +11.6% Spot FX Trading 5.4 2.9 N/A Market Data & indices 29.4 25.2 +16.7% Post-trade 19.7 17.8 +10.4% Clea
Slide 19: Q3 2018 Summarised P&L by Perimeter
Q3 2018 SUMMARISED P&L BY PERIMETER in M€, including IFRS 15 2018 9M Q3 H1 Q2 Q1 Core business excluding clearing 371.0 118.9 252.1 123.7 128.4 Revenue AfG 12.2 4.3 7.9 4.0 3.9 Core business + AfG, excl. Clearing and new perimeter 383.2 123.2 259.9 127.7 132.3 New Perimeter (FastMatch and Euronext D
Slide 20: Adjusted EPS Definition
ADJUSTED EPS DEFINITION In €m unless stated otherwise Q3 2018 Q3 2017 Net Income Reported 50.5 38.3 EPS Reported (€ per share) 0.73 0.55 Intangible assets adj. related to acquisitions (PPA) - 2.1 - Exceptional items - 8.8 - 9.7 Tax related to those items 2.1 2.8 Adjusted for intangible assets relate
Slide 21: Balance Sheet as at 30 September 2018
BALANCE SHEET AS AT 30 SEPTEMBER 2018 Unaudited, In €m As at 30 Sep 2018 As at 30 Jun 2018 Non-current assets Property, plant and equipment 37.1 35.6 Goodwill and other intangible assets 671.6 661.8 Deferred income tax assets 20.6 5.6 Investments in associates and JV 74.5 73.6 Financial assets at fa
Slide 22: Q3 2018 Cash Flow & Liquidity
Q3 2018 CASH FLOW & LIQUIDITY Cash Flow Statement for Q3 2018 Liquidity for Q3 2018 Unaudited, In €m Q3 2018 Q3 2017 Unaudited, In €m Q3 2018 Q2 2018 Profit before tax 73.5 57.6 Cash beginning of period 352.6 288.3 Adjustments for: Debt repayment -338 - Depreciation and amortization 6.4 3.6 - Share
Slide 23: Disclaimer and Contacts
DISCLAIMER AND CONTACTS 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 t