Euronext Nv · EURONEXT:ENX
Euronext Nv — Q1 2021 Earnings Presentation
31 slides from Euronext Nv's earnings presentation, Apr 29, 2021
Slide 1: Completion of the Acquisition of the Borsa Italiana Group; Euronext Q1 2021 Results
▪ COMPLETION OF THE ACQUISITION OF THE BORSA ITALIANA GROUP ▪ EURONEXT Q1 2021 RESULTS Released on 29 April 2021 at 8.30am CEST
Slide 2: Agenda
AGENDA ACQUISITION OF THE BORSA ITALIANA GROUP Q1 2021 HIGHLIGHTS Q1 2021 BUSINESS REVIEW Q1 2021 FINANCIAL REVIEW Q1 2021 RESULTS OF THE BORSA ITALIANA GROUP Q&A SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of Chief Financial Officer the Managing Board │2
Slide 3: Acquisition of the Borsa Italiana Group
ACQUISITION OF THE BORSA ITALIANA GROUP
Slide 4: Acquisition of the Borsa Italiana Group completed: backbone of the capital market union
ACQUISITION OF THE BORSA ITALIANA GROUP COMPLETED: EURONEXT TO CREATE THE BACKBONE OF THE CAPITAL MARKET UNION IN EUROPE €5.1tn + #1 LISTING VENUE AND EQUITY market cap.1 FINANCING IN EUROPE ▪ Creating the largest liquidity pool within the European capital markets union aiming to deliver sustainable
Slide 5: A transformational transaction with significant diversification and increase in scale
A TRANSFORMATIONAL TRANSACTION WITH SIGNIFICANT DIVERSIFICATION AND INCREASE IN SCALE €790m €498m 49% + Group Adj. Net Income 2020PF Non-volume related revenue EBITDA 2020PF Technology and Other income other 1% 7% Other(2) 2% Listing US 2% 14% Ireland 3% Portugal 2% Custody, Belgium 2% Italy 34% Set
Slide 6: Financing of the acquisition of the Borsa Italiana Group (1/2)
FINANCING OF THE ACQUISITION OF THE BORSA ITALIANA GROUP (1/2) ▪ An attractive transaction with compelling value proposition for shareholders ▪ Combined Group FY2020 revenue of €1.4bn and EBITDA of €790m ▪ €45m annual run-rate pre-tax cost synergies and €15m annual run-rate pre-tax revenue synergies
Slide 7: Financing of the acquisition of the Borsa Italiana Group (2/2)
FINANCING OF THE ACQUISITION OF THE BORSA ITALIANA GROUP (2/2) ▪ Refinancing of the transaction ▪ Transaction financed through: ▪ ~€0.3 billion from the use of existing cash; ▪ ~€3.7 billion from the draw down of Euronext’s €4.4 billion bridge loan facility; and ▪ ~€0.6 billion from the private plac
Slide 8: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS
Slide 9: Strong Q1 2021 results from organic growth in non-trading activities
STRONG Q1 2021 RESULTS RESULTING FROM ORGANIC GROWTH IN NON- TRADING ACTIVITIES AND CONTINUED BENEFITS FROM DIVERSIFICATION ▪ Solid revenue growth, vs. exceptional Q1 2020, reflecting strong organic growth in non-trading activities and Revenue +€12.4m contribution from recent acquisitions for €30.7
Slide 10: Q1 2021 Business Review
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Slide 11: Q1 2021 revenue up 5.2% driven by organic growth and acquired businesses
Q1 2021 REVENUE UP +5.2% DRIVEN BY STRONG ORGANIC GROWTH AND THE CONSOLIDATION OF ACQUIRED BUSINESSES €249.2m Investor €236.8m +€12.4m 2.3 +19.0% ▪ Post-trade revenue growth +5.2% Services 1.9 +4.8% driven by the contribution of VP 36.5 securities and strong organic Q1 2021 consolidated 34.9 revenue
Slide 12: Listing revenue up 9.4% to €38.8 million in Q1 2021
LISTING REVENUE UP +9.4% TO €38.8 MILLION IN Q1 2021 Strong performance of Corporate Services and strong equity listings activity €38.8m +32.9% revenue 37 new €376.7bn Corporate Services +9.4% equity listings money raised revenue ▪ Strong performance of Corporate Services with revenue up +32.9%, 0.4
Slide 13: Trading revenue down 14.2% to €96.0 million in Q1 2021 (1/2)
TRADING REVENUE DOWN -14.2% TO €96.0 MILLION IN Q1 2021 (1/2) Lower volumes compared to an exceptional Q1 2020, partially offset by higher revenue capture in cash trading CASH TRADING Cash trading ▪ Lower trading volumes compared to an exceptional trading environment in Q1 2020 €69.8m €10.0bn revenu
Slide 14: Trading revenue down 14.2% to €96.0 million in Q1 2021 (2/2)
TRADING REVENUE DOWN -14.2% TO €96.0 MILLION IN Q1 2021 (2/2) FX TRADING Cash trading ▪ Lower volatility compared to Q1 2020 €6.1m $21.4bn revenue ADV ▪ Like-for-like at constant currencies, revenue decreased –17.5% -24.5% -17.1% POWER TRADING 2.94TWh 0.06TWh €8.4m ▪ Usual higher seasonal52% activit
Slide 15: Post-trade revenue up 61.2% to €63.2 million
POST-TRADE REVENUE UP +61.2% TO €63.2 MILLION Consolidation of VP Securities, high retail activity in Nordic CSDs, lower cleared volumes CLEARING Cash trading in €m -€2.1m ▪ Lower derivatives trading volumes revenue ▪ Lower treasury income 19.2 17.1 -11.0% Q1 2020 Q1 2021 CUSTODY, SETTLEMENT AND OTH
Slide 16: Advanced Data Services, Investor Services and Technology Solutions
ADVANCED DATA SERVICES, INVESTOR SERVICES AND TECHNOLOGY SOLUTIONS ADVANCED DATA SERVICES Cash trading in €m ▪ Strong performance of indices and ESG products +€1.7m Solid core business activity 34.9 36.5 ▪ revenue +4.8% ▪ Like-for-like at constant currencies, revenue increased +4.2% Q1 2020 Q1 2021
Slide 17: Q1 2021 Financial Review
(A) Q1 2021 FINANCIAL REVIEW
Slide 18: Q1 2021 EBITDA stable at €148.7 million
Q1 2021 EBITDA STABLE AT €148.7 MILLION Consolidation of acquisitions and organic growth in €m -0.9% 59.7% EBITDA margin -10.2 -3.7pts 150.0 20.6 -3.4 148.7 0.1 -8.3 61.5% Organic1) ▪ Nord Pool EBITDA ▪ Ticker margin ▪ 3Sens ▪ VP Securities ▪ Staff costs notably related to LTI computation ▪ Strategi
Slide 19: Q1 2021 net income up 2.2% to €98.2 million, adjusted EPS up 6.3%
Q1 2021 NET INCOME UP +2.2% TO €98.2 MILLION, ADJUSTED EPS UP +6.3% TO €1.53 PER SHARE in €m +2.2% 98.2 96.1 1.1 1.2 €106.9m -1.3 Q1 Adjusted -3.1 net income1) 9.6 -2.5 -2.8 €1.53 Q1 Adjusted EPS1) + 6.3% Q1 2020 EBITDA D&A Exceptional Net financing Results Income tax Share of non Q1 2021 reported i
Slide 20: 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 Q1 2021 EBITDA 1,281 1,285 185.9 to net operating Net debt to 150.0 148.7 148.7 cash flow EBITDA1) ratio 132.9 conversion rate at Gross at 1.0x EBITDA 125% 651 526 (vs 1.2x in Q4 (vs 34%
Slide 21: Q1 2021 Results of the Borsa Italiana Group
Q1 2021 RESULTS OF THE BORSA ITALIANA GROUP
Slide 22: Q1 2021 results of the Borsa Italiana Group
Q1 2021 RESULTS OF THE BORSA ITALIANA GROUP in €m 124.1 124.1 ▪ Stable revenue reflecting growth in Revenue capital markets and information services partly offsetting lower post trade and technology services revenues Q1 2020 Q1 2021 in €m 49.8 Operating expenses 47.2 ▪ Decrease of -5.1% in operating
Slide 23: iS ise
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Slide 24: Q&A - Speakers
Q&A - SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of Chief Financial the Managing Board Officer │ 24
Slide 25: Appendix
APPENDIX
Slide 26: Adjusted EPS
ADJUSTED EPS In €m unless stated otherwise Q1 2021 Q1 2020 Net income reported 98.2 96.1 EPS Reported (€ per share) 1.41 1.38 Intangible assets adj. related to acquisitions (PPA) (6.4) (4.8) Exceptional items (3.6) (1.1) Tax related to those items 1.3 1.3 Adj. net income 106.9 100.7 Adj. EPS (€ per
Slide 27: Q1 2021 income statement
Q1 2021 INCOME STATEMENT Change Organic Unaudited, In €m Q1 2021 Q1 2020 % var (like for like) Revenue 249.2 236.8 +5.2% -3.7% Listing 38.8 35.4 +9.4% +8.3% Trading revenue 96.0 111.8 -14.2% -15.8% Cash Trading 69.8 80.8 -13.7% -13.7% Derivatives Trading 11.7 15.7 -25.7% -25.8% Spot FX Trading 6.1 8
Slide 28: Balance sheet as of 31 March 2021
BALANCE SHEET AS OF 31 MARCH 2021 Unaudited, In €m As of 31 Mar'21 As of 31 Dec'20 Unaudited, In €m As of 31 Mar'21 As of 31 Dec'20 Non-current assets Shareholders' equity Property, plant and equipment 56.4 56.0 Shareholders' equity 1,148.4 1,058.7 Right-of-use assets 43.0 46.9 Non-controlling inter
Slide 29: Q1 2021 cash flow and liquidity position
Q1 2021 CASH FLOW AND LIQUIDITY POSITION Unaudited, In €m Q1 2021 Q1 2020 Unaudited, In €m Q1 2021 Q1 2020 Profit before tax 136.1 136.2 Cash beginning of period 629.5 369.8 Investments (incl. subsidiaries net of cash acquired & Adjustments for: associates) - 56.1 61.3 - Depreciation and amortizatio
Slide 30: Disclaimer
DISCLAIMER IMPORTANT NOTICE: THIS PRESENTATION IS NOT AND DOES NOT CONTAIN AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR SECURITIES IN ANY JURISDICTION, INCLUDING THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. ANY SECURITIES MENTIONED IN THIS PRESENTATION
Slide 31: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Chief Communications and Investor Relations Officer Clément Kubiak, Investor Relations officer ir@euronext.com +33 1 70 48 24 27 www.euronext.com/en/investor-relations