Slide 1: FY 2017 Results Presentation
FY 2017 RESULTS PRESENTATION 19 February 2018 Released on 19 February 2018 – 7.20am CET
Slide 2: Main Speakers
MAIN SPEAKERS Stéphane Boujnah CEO & Chairman of the Managing Board Giorgio Modica CFO Euronext FY 2017 results |2
Slide 3: Agenda
AGENDA I 2017 Main Highlights II 2017 Financials III Outlook Euronext FY 2017 results |3
Slide 4: I. 2017 Main Highlights
I. 2017 MAIN HIGHLIGHTS
Slide 5: Euronext performed a deep transformation in 2017
EURONEXT PERFORMED A DEEP TRANSFORMATION IN 2017… ─ Compliance of systems to MIFID II at date Transformational ─ First milestones of Optiq®: projects ─ Optiq® Market Data Gateway live in March 2017 for cash and in July 2017 for derivatives Securing of ─ Signature of a 10-year clearing agreement with
Slide 6: Revenue diversification and expansion of the federal model
…THROUGH REVENUE DIVERSIFICATION AND EXPANSION OF THE FEDERAL MODEL A Fixed income technology Corporate services Corporate services Corporate services Deployment March 2017 February 2017 July 2017 January 2018 of Agility for • Joint-venture creation • Acquisition of 51% • Acquisition of 60% • Acquis
Slide 7: All issuers growth initiatives have been launched and deployed
ALL ISSUERS GROWTH INITIATIVES HAVE BEEN LAUNCHED AND DEPLOYED… 2017 Next steps Acquisitions Pursue commercial ─ Acquisition of new services over the year The modular made in 2017 intensity (Company Webcast, iBabs, IR.Manager) Mature the integration of Corporate ─ Intensified cross-selling thr
Slide 8: Major growth initiatives for investors are ready
…AND MAJOR GROWTH INITIATIVES FOR INVESTORS ARE READY 2017 Next steps Tradable since July ─ New indices launched with Launch of new future European family of 2017 Morningstar: contract in Jan.18 on the ─ Morningstar Eurozone 50 IndexTM indices Ongoing commercial Morningstar Eurozone 50 ─ Morni
Slide 9: Euronext generated a strong operational performance in 2017
EURONEXT GENERATED A STRONG OPERATIONAL PERFORMANCE IN 2017… Strong increase in revenue ‒ Improved cash market share at 64.4% +€36m +7.2%1) at ‒ Strong growth in listing revenue revenue ‒ First revenue from Agility For Growth initiatives and FastMatch growth €532.3m ‒ Strong operating performance: E
Slide 10: New acquisitions feed value creation potential
…AND NEW ACQUISITIONS1) FEED VALUE CREATION POTENTIAL EBITDA margin 57.6% ~50%4) 31.9% 40.7% 19.4 Revenue for FY 32.3 2017 (€m) 515.3 11.8 For illustration purposes only Euronext excl. Agility Acquisitions related to Irish Stock FastMatch - FY173) for Growth initiatives Agility for Growth 2)3) Excha
Slide 11: II. 2017 Financials
II. 2017 FINANCIALS
Slide 12: 2017 revenue up 7.2% to €532.3m
2017 REVENUE UP 7.2% TO €532.3M KEY DRIVERS: VOLUMES GROWTH AND ACQUISITIONS Revenue +7.2% 2017 revenue up 7.2% to €532.3m (+€35.9m) In €m 532.3 Positive impact from Corporate Services (€9.1m 496.4 revenue) due to the acquisition of iBabs in July 2017 84.2 +22.6% and Company Webcast in February 20
Slide 13: Listing revenue up 22.6% to €84.2m
LISTING REVENUE UP 22.6% TO €84.2M STRONG REVENUE SUPPORTED BY FOLLOW-ONS AND POSITIVE IMPACT OF CORPORATE SERVICES Listing revenue1) Growing primary market activity In €m +22.6% 26 new listings 84.2 Continued trend of large capitalisations returning to Euronext’s markets such as ALD and 68.7
Slide 14: Cash trading revenue up 5.3% to €190.3m
CASH TRADING REVENUE UP 5.3% TO €190.3M STRENGTHENED MARKET SHARE AT 64.4% AND GROWTH IN VOLUMES Cash trading Improved cash market share at 64.4%, Revenue per trade Market share for 2017 to its strongest yearly level since IPO, supported by: In bps, single counted the continued optimisation of t
Slide 15: Derivatives trading and first revenue from spot FX trading
IMPROVED POSITIONING IN DERIVATIVES TRADING AND FIRST REVENUE FROM SPOT FX TRADING Derivatives trading Increasing trading activity in financial derivatives, Average daily volume Revenue per lot despite a low volatility environment In ‘000 lots, single counted In €, double counted Improvement of
Slide 16: Other businesses
OTHER BUSINESSES ROBUST MARKET DATA PERFORMANCE DESPITE NEGATIVE BASE EFFECTS Market Data and Indices In €m -1.0% Decrease in revenue due to negative base effect (large 105.7 contractual audit findings in Q2 2016 and Q3 2016), while 104.7 organic performance intact New market data agreements to
Slide 17: EBITDA up 4.9% to €297.8m
EBITDA UP 4.9% TO €297.8M ROBUST EBITDA MARGIN AT 55.9% In €m Projects costs Mainly (MIFID II, Optiq, acquisitions’ Acquisitions) staff impact -4.6 -5.3 -7.2 35.9 -1.6 297.8 -3.3 +€13.9m 283.9 EBITDA 57.2% margin 55.9% EBITDA 2016 Revenue 2017 Staff expenses Systems Professional Clearing expenses Ot
Slide 18: 2017 net income driven by operating performance, capital gains and exceptional items
2017 NET INCOME DRIVEN BY GOOD OPERATING PERFORMANCE, CAPITAL GAINS AND EXCEPTIONAL ITEMS In €m Incl. 241.3 FastMatch 2.7 and iBabs PPA Adj. EPS +4.8% 0.6 +22.5% -4.5 215.2 40.6 -2.4 13.9 -1.9 205.2 -14.8 10.0 197.0 Incl. Non- recurring tax release for Incl. €5m of ICE €20.4m in 2017 break-up fee an
Slide 19: Strong cash flow generation and liquidity position
STRONG CASH FLOW GENERATION AND LIQUIDITY POSITION EBITDA / operating cash flow conversion rate Balance sheet In €m In €m Assets Liabilities & Equity 1,065.6 1,065.6 64% 297.8 72% 187.8 124.8 283.9 757.5 757.5 46.6 96.4 164.7 174.5 120.2 20.3 69.0 213.1 89.2 515.1 181.1 321.2 729.5 EBITDA 548.0 172.
Slide 20: III. Outlook
EURONEXT i exr0He,, \ bh F tm gp euRonext Wy euro, i Ss etl th lll. OUTLOOK
Slide 21: 2018 first trends
2018 FIRST TRENDS Cash ADV at €7.8bn, up +20.4% compared to Jan. 2017 Strong start of Derivatives ADV at 561,231 lots, up +25.9% compared to Jan. 2017 volumes in 2018 Spot FX ADV at $20.8bn, up +22.0% compared to Jan. 2017 Volatility index up since beginning of February 2018 Optiq® conform
Slide 22: 2019 financial targets
2019 FINANCIAL TARGETS 2017 2019 TARGETS Deliver strong operating +2.0% CAGR2015-2019, i.e. 505m€ Core Business €505m performance in Core €464m revenue in 2019 excluding clearing (unchanged) +4.3% CAGR17-19 Business Focus on most value €55m incremental revenue in 2019 (excluding €9.8m rev. €55m
Slide 23: Q&A
Q&A Stéphane Boujnah Anthony Attia CEO & Global Head of Listing Chairman of the Managing Board Giorgio Modica Lee Hodgkinson CFO Head of Markets & Global Sales Euronext FY 2017 results |23
Slide 24: Appendices
APPENDICES
Slide 25: Cash and derivatives trading performance
CASH AND DERIVATIVES TRADING PERFORMANCE 2015 2016 2017 -15.3% +6.7% 8,282 ADV 7,478 Improved volumes: 7,012 (in €m) Best of Book Non-member Omega Cash 2015 2016 2017 pack 0.47 0.50 0.50 Optimisation of the SLP trading Yield programme 2015 2016 2017 Efficient yield management 63.6% 60.9% 6
Slide 26: Cash – market quality and share
CASH – MARKET QUALITY AND SHARE Market quality Blue Chips Presence time at EBBO (%) EBBO with greatest size (%) EBBO setter (%) Relative spread (bps) Displayed market depth (€) (31 December 2017) Euronext 80% 43% 65% 3.72 58,289 BATS Europe 34% 0% 3% 8.01 14,620 Chi-X 55% 2% 10% 6.29 18,375 Equiduct
Slide 27: 2017 P&L
2017 P&L Unaudited, In €m 2017 2016 % change Revenue 532.3 496.4 +7.2% Listing 84.2 68.7 +22.6% Trading revenue 237.9 220.8 +7.7% Cash Trading 190.3 180.7 +5.3% Derivatives Trading 40.3 40.1 +0.6% Spot FX Trading 7.2 - n/a Market Data & indices 104.7 105.7 -1.0% Post-trade 71.7 67.6 +6.0% Clearing 5
Slide 28: Adjusted EPS definition
ADJUSTED EPS DEFINITION In €m unless stated otherwise 2017 2016 Net Income Reported 241.3 197.0 EPS Reported (€ per share) 3.47 2.83 Intangible assets adj. related to acquisitions (PPA) - 2.4 - Exceptional items - 14.8 - 10.0 Capital gains or losses (LCH SA swap) 40.6 - Tax related to those items 2.
Slide 29: Balance sheet as at 31 Dec. 2017
BALANCE SHEET AS AT 31 DEC. 2017 Unaudited, In €m As at 31 December 2017 As at 31 December 2016 Non-current assets Property, plant and equipment 27.8 27.5 Goodwill and other intangible assets 515.1 321.2 Deferred income tax assets 8.0 5.0 Investments in associates and JV 75.0 16.0 Available-for-sale
Slide 30: Cash flow & liquidity
CASH FLOW & LIQUIDITY Cash Flow Statement for 2017 Liquidity for 2017 Unaudited, In €m 2017 2016 Unaudited, In €m 2017 2016 Profit before tax 311.1 264.0 Cash beginning of period 174.5 158.6 Debt repayment -70.0 -40.0 Adjustments for: - Depreciation and amortization 16.9 15.1 Debt subscribed 165.0 -
Slide 31: 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