Euronext Nv · EURONEXT:ENX
Euronext Nv — Q4 2019 Earnings Presentation
26 slides from Euronext Nv's earnings presentation, Feb 13, 2020
Slide 1: Euronext Q4 & FY 2019 Results
Euronext Q4 & FY 2019 Results RELEASED ON 12 FEBRUARY 2020 – 5.45 PM CET 13 February 2020
Slide 2: Agenda
AGENDA FY & Q4 2019 HIGHLIGHTS Q4 2019 BUSINESS REVIEW Q4 2019 FINANCIAL REVIEW Q&A SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of the Chief Financial Officer Managing Board │2
Slide 3: FY & Q4 2019 Highlights
{ FY & Q4 2019 HIGHLIGHTS Hit ew EURONEXT
Slide 4: 2019: Entering into the new strategic cycle
2019: ENTERING INTO THE NEW STRATEGIC CYCLE New strategic plan, ‘Let’s grow together 2022’ ▪ Building the leading pan-European market infrastructure, connecting local economies to global capital markets ▪ Innovation and sustainable finance at the heart of the strategy ▪ Pursuing a growth strategy th
Slide 5: Strong performance throughout 2019
STRONG PERFORMANCE THROUGHOUT 2019 ▪ Strong revenue growth driven by successful diversification and solid core businesses dynamics Revenue +10.4% ▪ Robust Listing and Advanced Data Services organic performance, €679.1m partially offsetting lower trading revenue +€64.1m ▪ Continued diversification st
Slide 6: 2020 Cost Guidance
2020 COST GUIDANCE 2018 ▪ 2019 cost guidance announced: low-single digit growth in operating expenses exc. D&A vs 2018 ▪ Cost guidance outperformed, with low-single digit decrease in operating expenses exc. D&A 2019 ▪ Expected non-recurring costs announced at the 2019 Investor Day ▪ First non-recurr
Slide 7: Q4 2019 Business Review
7,04 2019 BUSINESS REVIEW Hit ew EURONEXT
Slide 8: Q4 2019 revenue up 18.1% driven by diversification
Q4 2019 REVENUE UP +18.1% DRIVEN BY DIVERSIFICATION, STRONG PERFORMANCE OF CORPORATE SERVICES AND A RESILIENT ACTIVITY FROM CORE BUSINESSES ▪ Listing revenue growth thanks to the strong €185.7m performance of Euronext’s Corporate Services Q4 2019 consolidated +€28.4m 1.6 and Oslo Børs VPS contributi
Slide 9: Listing revenue up 23.7% to €36.5m in Q4 2019
LISTING REVENUE UP +23.7% TO €36.5M IN Q4 2019 Strong growth of Corporate Services and consolidation of Oslo Børs VPS Money raised (€ bn) ▪ Strong performance from Euronext’s Corporate Services revenue (+€2.4m, Revenue (€m) including Oslo Børs VPS), reflecting strong client traction for the offering
Slide 10: Trading revenue up 1.4% to €70.8m in Q4 2019
TRADING REVENUE UP +1.4% TO €70.8 M IN Q4 2019 Strong market share and enhanced yield of trading businesses Cash trading ▪ Strong combined market share at 70.9% (organic: 71.2%), in a low volatility environment €53.2m €8.4 bn 0.49 bps 70.9 % ▪ Strong organic yield at 0.53bps (vs 0.51bps in Q4 2018)
Slide 11: Post-trade revenue up 76.1% to €33.4m
POST-TRADE REVENUE UP +76.1% TO €33.4 M Consolidation of Oslo Børs VPS, strong settlement activity and higher clearing revenue Clearing in €m €14.5m ▪ Increased commodities derivatives volumes revenue ▪ Higher treasury income offsetting lower overall derivatives +8.0% volumes 13.4 14.5 (organic) Q4
Slide 12: Advanced Data Services, Investor Services and Technology Solutions
ADVANCED DATA SERVICES, INVESTOR SERVICES AND TECHNOLOGY SOLUTIONS Strong performance of indices, contribution from Commcise and Oslo Børs VPS Advanced Data Services ▪ Good performance from indices business, particularly on ESG in €m products €33.5 m ▪ Slight decrease in market data revenue 29.8 33.
Slide 13: Q4 2019 Financial Review
8 Q4 2019 FINANCIAL REVIEW Hit ew EURONEXT
Slide 14: One-off items in Q4 2019
ONE-OFF ITEMS IN Q4 2019 Operating expenses Exceptional items Financing expenses Revaluation of buy-option and ▪ M&A success fees ▪ Advisory costs deferred payments for €3.2m ▪ Performance based €2.4m ▪ Other restructuring costs €13.3m Corporate Services businesses payments reflecting stronger than
Slide 15: Q4 2019 EBITDA up 19.8% to €104.1m
Q4 2019 EBITDA UP +19.8% TO €104.1M Continued cost discipline and consolidation of Oslo Børs VPS in €m +19.8% 56.0% EBITDA margin ▪ Oslo Børs VPS +€27.1m -15.5 +0.8pts ▪ Commcise +€1.2m 104.1 ▪ OPCVM 360 +€0.1m 28.4 4.2 57.9% Organic 86.9 0.1 EBITDA margin ▪ Oslo Børs VPS +2.7pts ▪ Integration costs
Slide 16: Q4 2019 net income down 1.2%, adjusted EPS up 26.6%
Q4 2019 NET INCOME DOWN -1.2% TO €49.0, ADJUSTED EPS UP +26.6% TO €1.11 PER SHARE Higher exceptional costs, net financing expenses and impairments in €m ▪ Impact of IFRS16 ▪ D&A of acquisitions ▪ PPA of acquisitions, notably Oslo Børs VPS for c.€2.8m -1.2% €77.3m -6.7 Q4 Adjusted -2.8 -10.3 17.2 net
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 in €m in €m 1,064 1,018 104.1 Q4 2019 EBITDA to 86.9 78.8 net operating cash 739 648 Net debt to EBITDA1) EBITDA flow conversion rate Gross debt ratio at 1.5x 55.4 at 75.7% (vs 1.8x in Q3 2019) Net
Slide 18: Q&A
Q&A
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: Adoption of IFRS16 and adjusted EPS reconciliation
ADOPTION OF IFRS16 AND ADJUSTED EPS RECONCILIATION Adoption of IFRS16 Adjusted EPS reconciliation table Due to the adoption of IFRS 16 on 1 January 2019, Euronext reported in Q1 2019 a €2.7m positive impact In 2018, some exceptional items such as impairments and revaluations of buy-options were not
Slide 22: Q4 2019 income statement
Q4 2019 INCOME STATEMENT Unaudited, In €m Q4 2019 Q4 2018 % var Organic % var (like-for-like) Revenue 185.7 157.3 +18.1% +0.0% Listing 36.5 29.5 +23.7% +3.9% Trading revenue 70.8 69.8 +1.4% -3.5% Cash Trading 53.2 52.8 +0.7% -4.5% Derivatives Trading 11.9 11.4 +3.8% -2.3% Spot FX Trading 5.8 5.5 +4.
Slide 23: Balance sheet as at 31 December 2019
BALANCE SHEET AS AT 31 DECEMBER 2019 Unaudited, In €m As at 30 Dec 2019 As at 30 Dec 2018 Unaudited, In €m As at 30 Dec 2019 As at 30 Dec 2018 Non-current assets Non-current liabilities Property, plant and equipment 58.9 38.9 Borrowings 1,011.5 504.9 Right-of-use assets 51.8 0.0 Lease liabilities 41
Slide 24: Q4 2019 cash flow and liquidity position
Q4 2019 CASH FLOW AND LIQUIDITY POSITION Unaudited, In €m Q4 2019 Q4 2018 Unaudited, In €m Q4 2019 Q4 2018 Profit before tax 72.4 71.1 Cash beginning of period 325.1 407.6 Debt repayment - 45.0 - Adjustments for: Debt subscribed - - 0.1 - Depreciation and amortization 12.8 6.1 Investments (incl. sub
Slide 25: 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 26: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Head of Investor Relations Clément Kubiak, Investor Relations officer ir@euronext.com +33 1 70 48 24 27 www.euronext.com/en/investor-relations