Slide 1: Euronext Q4 & FY 2020 Results
Euronext Q4 & FY 2020 Results 11 February 2020 RELEASED ON 10 FEBRUARY 2020 – 5.45 PM CET
Slide 2: Agenda and speakers
AGENDA FY & Q4 2020 HIGHLIGHTS Q4 2020 BUSINESS REVIEW Q4 2020 FINANCIAL REVIEW Q&A SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of the Chief Financial Officer Managing Board │2
Slide 3: FY & Q4 2020 Highlights
{ FY & Q4 2020 HIGHLIGHTS Hit ew EURONEXT
Slide 4: Strong performance throughout 2020 driven by diversification and organic growth
STRONG PERFORMANCE THROUGHOUT 2020 DRIVEN BY DIVERSIFICATION AND ORGANIC GROWTH FY 2020 ▪ Strong performance resulting from the consolidation of VP Securities, Nord Pool, and from strong organic performance of trading, post- Revenue +30.2% trade and listing activities €884.3m ▪ Continued diversifica
Slide 5: Let's Grow Together 2022 organic targets achieved 2 years in advance
“LET’S GROW TOGETHER 2022” ORGANIC TARGETS ACHIEVED 2 YEARS IN ADVANCE 2018 2022e TARGETS 2020 Proforma vs. proforma Comparable perimeter ✓ Revenue €734m €795m to €826m €831m +2 to 3% CAGR2018PF-2022e Proforma Comparable perimeter EBITDA margin 57.0% ≥60% 60.5% ✓ Dividend Policy 50% of Reported Net
Slide 6: 2020 performance drivers expected to last in 2021
2020 PERFORMANCE DRIVERS EXPECTED TO LAST IN 2021 Leveraging on market trends to enhance revenue capture while delivering on strategic objectives 2020 2021 Brexit transformation ▪ Volumes on European listed securities repatriated on continental Europe trading venues ▪ Strengthened positioning as pre
Slide 7: A unique track record in building operating leverage and extracting synergies
A UNIQUE TRACK RECORD IN BUILDING OPERATING LEVERAGE AND EXTRACTING SYNERGIES ACHIEVED OBJECTIVES ONGOING TARGETS Self-efficiency programmes Acquisitions Acquisitions 2014-2016 2016-2018 Euronext Dublin Oslo Børs VPS VP Securities Targets €60 million €22 million €6 million €12 million €7 million1) €
Slide 8: Access to Euronext's ecosystem through Optiq delivers tangible benefits
ACCESS TO EURONEXT’S ECOSYSTEM THROUGH OPTIQ® DELIVERS TANGIBLE BENEFITS Single order book across Largest liquidity pool in Optiq® platform Euronext’s markets Europe Euronext Dublin Oslo Børs x2 +22.5% Market members Active members Increased market share Strong local footprint retained on dual liste
Slide 9: Update on the contemplated acquisition of the Borsa Italiana Group
UPDATE ON THE CONTEMPLATED ACQUISITION OF THE BORSA ITALIANA GROUP 9 October 2020 Binding agreement signed with London Stock Exchange Group plc (“LSEG”) and London Stock Exchange Group Holdings (Italy) Limited to acquire 100% of the issued share capital of London Stock Exchange Group Holdings Italia
Slide 10: Q4 2020 Business Review
7,04 2020 BUSINESS REVIEW Hit ew EURONEXT
Slide 11: Q4 2020 revenue up 24.9% driven by post trade and trading
Q4 2020 REVENUE UP +24.9% DRIVEN BY POST TRADE AND STRENGTHENED POSITION IN TRADING ACTIVITY €232.0m ▪ Post-Trade revenue growth driven by the consolidation of VP Securities, Q4 2020 consolidated +€46.2m 2.0 higher settlement activities and +24.9% revenue growth 33.8 increased retail participation i
Slide 12: Listing revenue up 4.7% to €38.2m in Q4 2020
LISTING REVENUE UP +4.7% TO €38.2M IN Q4 2020 Strong performance of Corporate Services and higher equity financing needs €38.2m 49 new €278.2bn +29.8% revenue equity listings money raised Corporate Services revenue ▪ Corporate Services strong performance, up +29.8%, reflecting continued +4.7% €38.2m
Slide 13: Trading revenue up 24.3% to €88.0m in Q4 2020 (1/2)
TRADING REVENUE UP +24.3% TO €88.0M IN Q4 2020 (1/2) Volatile environment, improved cash trading revenue capture, higher commodities volumes Cash trading ▪ Volatile trading environment supporting volumes €63.2m €9.2bn 70.4% ▪ Improved revenue capture revenue ADV 0.53bps market share ▪ Increased reta
Slide 14: Trading revenue up 24.3% to €88.0m in Q4 2020 (2/2)
TRADING REVENUE UP +24.3% TO €88.0M IN Q4 2020 (2/2) FX trading driven by a volatile environment, power trading driven by usual winter surge FX trading €5.9m $20bn ▪ Volatile market environment revenue ADV ▪ Like-for-like, revenue increased +10.6%1) +2.7% +20.8% Power trading €7.2m 2.74 TWH 0.07 TWH
Slide 15: Post trade revenue up 71.7% to €57.3m
POST TRADE REVENUE UP +71.7% TO €57.3 M Consolidation of VP Securities, strong settlement activity and higher clearing revenue Clearing in €m ▪ Higher treasury income €17.4m ▪ Higher derivatives trading volumes with increased high yield revenue commodities cleared 17.4 14.5 +20.0% ▪ Like-for-like, r
Slide 16: Advanced Data Services, Investor Services and Technology Solutions
ADVANCED DATA SERVICES, INVESTOR SERVICES AND TECHNOLOGY SOLUTIONS Strong performance of indices, contribution from Commcise and Nord Pool Advanced Data Services in €m ▪ Good performance of indices ▪ Resilient market data business €33.8 m 33.5 33.8 revenue ▪ Consolidation of Nord Pool data activitie
Slide 17: Q4 2020 Financial Review
8 Q4 2020 FINANCIAL REVIEW Hit ew EURONEXT
Slide 18: Q4 2020 EBITDA up 21.8% to €126.8m
Q4 2020 EBITDA UP +21.8% TO €126.8M Continued cost discipline and consolidation of acquisitions in €m +21.8% 54.7% EBITDA margin 27.0 -16.9 -1.4pts -7.8 126.8 -0.9 21.4 ▪ Nord Pool 57.0% ▪ OPCVM360 Like for like 104.1 ▪ Ticker EBITDA margin ▪ 3Sens ▪ VP Securities +0.8pts ▪ Staff costs ▪ Strategic p
Slide 19: Q4 2020 net income up 37.0% to €67.1m, adjusted EPS up 7.5%
Q4 2020 NET INCOME UP +37.0% TO €67.1M, ADJUSTED EPS UP +7.5% TO €1.19 PER SHARE in €m ▪ Restructuring costs ▪ Acquisition costs +37.0% 0.8 €83.1m -3.0 -7.9 9.3 67.1 Q4 Adjusted -4.1 0.3 net income1) 22.7 ▪ Higher non- deductible expenses ▪ Higher local tax rates 49.0 €1.19 Q4 Adjusted ▪ D&A and PPA
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 Q4 2020 EBITDA to in €m 1,278 1,281 126.8 net operating cash 104.1 flow conversion rate Net debt to EBITDA1) 78.8 74.7 at 58.9% 710 651 ratio at 1.2x EBITDA (vs 75.7% last year) Gross (vs 1.4x
Slide 21: Q&A
Q&A
Slide 22: Q&A - Speakers
Q&A - SPEAKERS Stéphane Boujnah Giorgio Modica Anthony Attia CEO and Chairman of the Chief Financial Officer Global Head of Primary Managing Board Markets and Post Trade │ 22
Slide 23: Appendix
APPENDIX
Slide 24: Adjusted EPS reconciliation
ADJUSTED EPS RECONCILIATION Adjusted EPS reconciliation table In 2018, some exceptional items such as impairments and revaluations of buy-options were not considered as a part of the net income adjustments due to their low materiality (7 cents per share or 1.9%). In 2019, due to their significance s
Slide 25: Q4 2020 income statement
Q4 2020 INCOME STATEMENT Organic Unaudited, In €m Q4 2020 Q4 2019 % var (like for like) Revenue 232.0 185.7 +24.9% +11.6% Listing 38.2 36.5 +4.7% +4.3% Trading revenue 88.0 70.8 +24.3% +15.2% Cash Trading 63.2 53.2 +18.9% +19.3% Derivatives Trading 11.7 11.9 -1.5% -1.2% Spot FX Trading 5.9 5.8 +2.7%
Slide 26: Balance sheet as at 31 December 2020
BALANCE SHEET AS AT 31 DECEMBER 2020 Shareholders' equity Shareholders' equity 1,058.7 966.2 Non-controlling interests 30.2 31.3 Unaudited, In €m As at 31 Dec 2020 As at 30 Sept 2020 Total Equity 1,089.0 997.5 Non-current assets Non-current liabilities Property, plant and equipment 56.0 55.5 Borrowi
Slide 27: Q4 2020 cash flow and liquidity position
Q4 2020 CASH FLOW AND LIQUIDITY POSITION Unaudited, In €m Q4 2020 Q4 2019 Unaudited, In €m Q4 2020 Q4 2019 Profit before tax 98.1 72.4 Cash beginning of period 567.3 325.1 Debt repayment 0.0 -45.0 Adjustments for: Investments (incl. subsidiaries net of cash acquired & associates) -5.6 -1.1 - Depreci
Slide 28: 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 29: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Chief Communications and Investor Relations Officer Clément Kubiak, Investor Relations officer Mail: ir@euronext.com Tel: +33 1 70 48 24 27 www.euronext.com/en/investor-relations