Euronext Nv · EURONEXT:ENX
Euronext Nv — Q1 2019 Earnings Presentation
26 slides from Euronext Nv's earnings presentation, May 16, 2019
Slide 1: Q1 2019 Results
Q1 2019 RESULTS 16 May 2019 Released on 15 May 2019 – 17.45 CET
Slide 2: Main Speakers
MAIN SPEAKERS Stéphane Boujnah CEO & Chairman of the Managing Board Giorgio Modica CFO Euronext Q1 2019 results |2
Slide 3: Agenda
AGENDA I Q1 2019 Highlights II Q1 2019 Financials III Oslo Børs VPS acquisition – next steps Euronext Q1 2019 results |3
Slide 4: I. Q1 2019 Highlights
I. Q1 2019 HIGHLIGHTS
Slide 5: Q1 2019 results bolstered by acquisitions and strong operating performance
Q1 2019 RESULTS BOLSTERED BY ACQUISITIONS AND STRONG OPERATING PERFORMANCE ▪ Improved Group revenue diversification in an environment of subdued volumes ▪ +1.4% Revenue Non-volume related revenue: 47% of total revenue €152.6m ▪ Euronext Dublin contributing €7.9m and +€2.1m Commcise €1.1m ▪ Group ope
Slide 6: Highlights of the first quarter of 2019
HIGHLIGHTS OF THE FIRST QUARTER OF 2019 ▪ Migration of Euronext Dublin to Optiq® trading platform executed in February 2019 and €6.7m costs synergies delivered ▪ Irish capital markets participants now having access to the largest single liquidity pool in Europe ▪ Ongoing integration of Euronext Dubl
Slide 7: II. Q1 2019 Financials
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Slide 8: Q1 2019 revenue up +1.4%
Q1 2019 REVENUE UP +1.4% Revenue Q1 2019 revenue up +1.4% to €152.6m (+€2.1m) In €m Organic Reported growth1) ▪ Strong increase in listing revenue thanks to the 150.5 152.6 +1.4% -4.7% consolidation of Euronext Dublin and the good performance of Corporate Services Listing 21.8 28.0 +28.1% +2.7% ▪ Ca
Slide 9: Listing revenue up 28.1% to €28.0m in Q1 2019
LISTING REVENUE UP 28.1% TO €28.0M IN Q1 2019 CONTRIBUTION OF EURONEXT DUBLIN AND EXPANSION OF CORPORATE SERVICES Listing revenue In €m +28.1% Organic growth ▪ Contribution of Euronext Dublin +€5.5m +2.7% 28.0 5.7 +0.3% ▪ Strong performance from Corporate Services Equity 21.8 Annual fees recording €
Slide 10: Cash trading revenue down 13.3% to €48.3m in Q1 2019
CASH TRADING REVENUE DOWN 13.3% TO €48.3M IN Q1 2019 STRENGTHENED REVENUE CAPTURE IN SUBDUED VOLUMES Cash trading Revenue per trade1) Market share for Q1 2019 Cash trading: revenue was down -13.3% to €48.3m (-15.1% In bps, single counted like-for-like) while volumes decreased by -16.9% in Q1 2019 +1
Slide 11: Resilience of derivatives business and good performance of spot FX
RESILIENCE OF DERIVATIVES BUSINESS AND GOOD PERFORMANCE OF SPOT FX Derivatives trading Derivatives trading: revenue down -1.5% to €10.4m Average daily volume Revenue per lot Financial derivatives In ‘000 lots, single counted In €, double counted ▪ Low level of volatility over Q1 2019 -1.5% ▪ Stable
Slide 12: Other businesses
OTHER BUSINESSES GOOD PERFORMANCE OF NON TRANSACTIONAL BUSINESSES Advanced data services Technology Solutions & other revenue In €m In €m Organic growth +4.4% Organic growth +3.8% +0.6% +0.2% 8.9 9.3 29.7 30.8 ▪ Incremental contribution ▪ Increased activity from from Euronext Dublin Managed Services
Slide 13: Q1 2019 EBITDA down -3.0% to €89.3m
Q1 2019 EBITDA DOWN -3.0% TO €89.3M IMPACTED BY RECENT ACQUISITIONS AND SUBDUED VOLUMES • Euronext Dublin +€7.9m • Commcise +€1.1m In €m • Including negative comparison base in Q1 92.0 2018 -6.0 EBITDA -1.5 89.3 margin 61.1% 9.1 2.7 -3.0% -7.1 58.5% Organic EBITDA growth -6.4% Organic EBITDA margin:
Slide 14: Q1 2019 net income down -6.6% to €56.1m
Q1 2019 NET INCOME DOWN -6.6% TO €56.1M HIGHER RESULTS FROM EQUITY INVESTMENTS AND LOWER TAX RATE In €m • M&A costs • Restructuring & 60.0 settlement costs -2.7 -0.3 56.1 -3.6 1.3 0.6 3.1 -2.3 Decrease in effective • Impact of IFRS 161) tax rate due to Dublin • PPA of new perimeter FX impact consoli
Slide 15: Solid cash flow generation and liquidity position
SOLID CASH FLOW GENERATION AND LIQUIDITY POSITION EBITDA to Net operating cash flow conversion rate Debt In €m 31 Dec 2018 31 March 2019 In €m 81.5% 66.7% Negative impact from 510 changes in working capital, 509 92.0 89.3 primarily related to 75.0 settlement and earn-out payments 59.5 111 91 EBITDA
Slide 16: III. Oslo Børs VPS acquisition – next steps
III.Oslo Børs VPS acquisition – next steps
Slide 17: Euronext aims to acquire up to 100% of Oslo Børs VPS
EURONEXT AIMS TO ACQUIRE UP TO 100% OF OSLO BØRS VPS • On 14 January 2019, Euronext launched its Offer to acquire up to 100% of Oslo Børs VPS Euronext as • The Managing Board and the Supervisory Board of Euronext have unanimously approved the transaction and unanimously recommend that a suitable Eur
Slide 18: Transaction timetable
TRANSACTION TIMETABLE • Declaration of Non Objection from Euronext’s College of Regulators granted on 1 April 2019 • Positive recommendation from the Norwegian regulator Finanstilsynet obtained on 8 April 2019 Today • Clearance from the Norwegian Ministry of Finance to acquire up to 100% of Oslo Bør
Slide 19: Q&A
Q&A Stéphane Boujnah Anthony Attia CEO & Managing Board Member Chairman of the Managing Board Giorgio Modica CFO Euronext Q1 2019 results |19
Slide 20: Appendix
APPENDIX
Slide 21: P&L impact in 2019 of the adoption of IFRS16
P&L IMPACT IN 2019 OF THE ADOPTION OF IFRS16 Due to the adoption of IFRS 16 on 1 January 2019, Euronext reported in Q1 2019 a €2.7m positive impact on its EBITDA, a slightly positive impact on its operating profit (€0.1m) and an unsignificant impact on its net income. This impact in Q1 2019 is expec
Slide 22: Q1 2019 P&L
Q1 2019 P&L Organic growth Unaudited, In €m Q1 2019 Q1 2018 % var (like for like) Revenue 152.6 150.5 +1.4% -4.7% Listing 28.0 21.8 +28.1% +2.7% Trading revenue 64.5 71.5 -9.8% -11.2% Cash Trading 48.3 55.7 -13.3% -15.1% Derivatives Trading 10.4 10.6 -1.5% -1.5% Spot FX Trading 5.8 5.2 +10.4% +10.4%
Slide 23: Adjusted EPS definition
ADJUSTED EPS DEFINITION In €m unless stated otherwise Q1 2019 Q1 2018 Net Income Reported 56.1 60.0 EPS Reported (€ per share) 0.81 0.86 Intangible assets adj. related to acquisitions (PPA) - 2.2 - 1.5 Exceptional items - 3.3 - 1.0 Tax related to those items 0.8 0.7 Adjusted for intangible assets re
Slide 24: Balance sheet as at 31 March 2019
BALANCE SHEET AS AT 31 MARCH 2019 Unaudited, In €m As at 31 Mar 2019 As at 31 Dec 2018 Non-current assets Property, plant and equipment 39.4 38.9 Right-of-use assets 51.3 0.0 Goodwill and other intangible assets 712.4 705.6 Deferred income tax assets 20.4 20.9 Investments in associates and JV 74.7 7
Slide 25: Q1 2019 cash flow & liquidity
Q1 2019 CASH FLOW & LIQUIDITY Cash Flow Statement for Q1 2019 Liquidity for Q1 2019 Unaudited, In €m Q1 2019 Q1 2018 Unaudited, In €m Q1 2019 Q1 2018 Profit before tax 80.0 86.8 Cash beginning of period 398.0 187.8 Debt subscribed 173.0 Adjustments for: Investments -27.1 -148.8 - Depreciation and am
Slide 26: 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