Slide 1: Q2'2015 Results Presentation
Q2’2015 RESULTS PRESENTATION 30 July 2015
Slide 2: Corporate Highlights
CORPORATE HIGHLIGHTS Objective of approx. Court case win vs TOM €64m of cumulated and BinckBank (breach of €500 million of efficiencies achieved revenues (5% CAGR various intellectual (run-rate) property rights and over 2013-2016) and 53% of EBITDA publication of misleading Brussels and Paris office
Slide 3: Euronext Business Overview
EURONEXT BUSINESS OVERVIEW
Slide 4: Areas of Core Focus
AREAS OF CORE FOCUS… COSTS Continued focus on 1 expense reduction. REGULATION Become an agile solution provider. PRODUCTS 8 2 Expansion, innovative solutions. DISTRIBUTION REVENUE Seek new clients in Focus on growth China, Israel & 7 EURONEXT 3 across every Emerging Markets. segment. SERVICES Perpet
Slide 5: Designed to Catalyse Primary & Secondary Market Virtuous Cycles
DESIGNED TO CATALYSE PRIMARY & SECONDARY MARKET VIRTUOUS CYCLES Increased Innovations New Critical liquidity on on financial listings market size cash mkts derivatives Primary Secondary markets markets Increased virtuous Market virtuous Creation of appetite of cycle more- cycle new indexes companies
Slide 6: EU Regulatory Pipeline Underpins Opportunity
EU REGULATORY PIPELINE UNDERPINS OPPORTUNITY 2015 2016 2017 2018 2019 MiFID II/ ESMA work on MiFIR implementing measures 3 January 2017 European Commission EMIR work on EMIR review Applied since 2012* Finalisation of text and Benchmark ESMA work on implementing measures Expected in 2018 Market ESMA
Slide 7: Listing: Momentum Continues from a Successful 2014
LISTING: MOMENTUM CONTINUES FROM A SUCCESSFUL 2014 Decrease in listing activity: total capital raised in Q2’2015 of €21.7 billion Q2’ 2015 Listing Revenue (in €m) compared to €33.8 billion in the same period last year. Listing activity across Euronext markets was driven by: 2.2 2.5 Increase in fixed
Slide 8: Resilient Listing Business Performance
RESILIENT LISTING BUSINESS PERFORMANCE Syriza wins ECB QE Begins 4 month loan extension agreed €5.8bn of Greek bills mature. Greece Greek banks Deal with historic election between Eurogroup and Greece asks the IMF to postpone an instalment close. Bailout Greece due on 5th June until the end of the t
Slide 9: A 3-Pillar Strategy for EnterNext Growth
A 3-PILLAR STRATEGY FOR ENTERNEXT GROWTH Corporate Investor Ecosystem Build relationships of Reconnect SMEs and Involve all the trust and proximity with investors stakeholders listed and non-listed including Promote the segment to companies intermediaries investors Guide and assist Gather together E
Slide 10: Continued Strength of Cash Trading Revenue
CONTINUED STRENGTH OF CASH TRADING REVENUE Q2 volumes up +41% vs Q2’2014 – H1’2015 up +35% vs H1’2014, 20 March saw the highest transaction value since May 2010 with €17.2 billion traded Continued focus on nurturing domestic market share allowed for a return to 65% in June in a highly competitive en
Slide 11: Underpinned by Organic Initiatives and Extraneous Factors
UNDERPINNED BY ORGANIC INITIATIVES AND EXTRANEOUS FACTORS… 1 2 yy 3 Organic Cyclical Structural • Pricing optimisation • QE, Cheap € and Oil • Comp. efficiency • Client intimacy • Search for yield • Low frictional cost • Service development • TSR performance • Rise of ETFs +35% Volume vs Growth H1‘1
Slide 12: European Equity Inflows Continue
EUROPEAN EQUITY INFLOWS CONTINUE Western Europe Equity Funds Source: EFPR, Mirae Asset Research, Jefferies 12
Slide 13: European ETF Market Growing at 14% CAGR, Further Growth Ahead
EUROPEAN ETF MARKET GROWING AT 14% CAGR, FURTHER GROWTH AHEAD ETFS REPRESENT 5.5% OF EUROPEAN INVESTMENT FUND ASSETS, COMPARED TO 12% IN THE US Global ETP assets under management OPPORTUNITY Proliferation through increased acceptance 3 500 Europe by institutional and retail investors, 3 000 developm
Slide 14: Derivatives Performance Driven by Commodity Franchise and Index
DERIVATIVES PERFORMANCE DRIVEN BY COMMODITY FRANCHISE AND INDEX Q2’2015 was particularly dynamic with volumes increasing by Euronext – number of contracts traded (lots in mm) 5% compared to Q2-2014. Index Equity Commodities ADV on equity index derivatives: +14% vs Q2’2014, to 2,6 2,1 3,2 3,9 257,402
Slide 15: Equity Derivatives Competition in Amsterdam
EQUITY DERIVATIVES COMPETITION IN AMSTERDAM Regaining market share since 1 Feb 2015: now at 60% Equity options Amsterdam De Giro partnership key, showing constant 20-day Average Daily Volume - market share increasing growth in our markets with a significant 100% share in the Netherlands and Belgium
Slide 16: Commodities Development Plans
COMMODITIES DEVELOPMENT PLANS Further EU Deregulation Calendar: Potential to look at Sugar in 2016 Deregulation Process in EU CAP Dairy Further Adjacencies Co- of design/manage Extension of Products products with Quick Win existing ENX core Families Frontier Partnering: Products: franchise: Or Marke
Slide 17: Market Data & Indices Growth Driven by Both Segments
MARKET DATA & INDICES GROWTH DRIVEN BY BOTH SEGMENTS Q2 REVENUE UP +3.8% VS Q2’2014, TO €24.5 MILLION Strong Competitive Positioning in Index Business Growth driven by asset manager and banks’ desire to externalize index solutions to reduce upcoming regulatory burden/risk and minimise market data co
Slide 18: Post Trade & Market Solutions Activities
POST TRADE & MARKET SOLUTIONS ACTIVITIES Clearing Market solutions Q2 Revenues up 26% vs Q2’2014, to €13.3 million Revenues were up +2.6% vs Q2’2014, to €8.0 million Favorable change in the derivatives trading product mix impacted clearing revenues (commodities vs equity and index Growth was driven
Slide 19: World Growth from Emerging Economies
WORLD GROWTH FROM EMERGING ECONOMIES NOMINAL GDP GROWTH (%) - TWO THIRDS FROM EMERGING WORLD BY 2017 10 8 Post- Post-Asia Debt Crisis 6 4 2 0 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 -2 -4 Western Debt Crisis Emerging Dev. Developed Our Positioning Focuses on China outbound volume, debt, et
Slide 20: Financials
FINANCIALS
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Quarterly EBITDA MARGIN €58.8 million of dividend paid in May 2015 53.9% €20 million to be dedicated to CASH acquire own shares to cover the OPERATING employee share plans for 2014 & THIRD PARTY STABLE POSITION EXPENSES REVENUE 2015 ex. D&A NET PROFIT €128.4m €130.1m €60.0m €28.
Slide 22: Strong Growth in Third Party Revenues
STRONG GROWTH IN THIRD PARTY REVENUES Adjusted revenues (unaudited) Comments (€mm) ∆ Q2’15 Exceptionally strong performance in trading revenue: Q2’15 Q2’14 vs Q2’14 Cash trading +24% - volumes up +41% vs Q2’2014 – Listing 19.3 18.9 1.9% Best quarter since Q2’2010 Trading revenue 60.1 50.0 20.2% Deri
Slide 23: Substantial Reduction in Operating Expenses
SUBSTANTIAL REDUCTION IN OPERATING EXPENSES Adjusted Operating expenses (unaudited) Comments (€mm) ∆Q2’15 Staff costs and professional services benefited from the Q2’15 Q2’14 vs Q2’14 decrease in IT headcount during the course of 2014 Salaries and employee benefits (30.3) (32.4) -6.4% System and com
Slide 24: Simplified Income Statement
SIMPLIFIED INCOME STATEMENT Income statement (unaudited) Comments (€mm) Q2’15 Q2’14 Strong revenue performance combined with tight cost EBITDA 70.1 58.1 management resulted in an EBITDA margin of 53.9% Margin 53.9% 46.3% Exceptional items mainly consist in Depreciation and amortisation (4.5) (4.1) r
Slide 25: Balance Sheet
BALANCE SHEET Balance sheet summary (unaudited) Comments (€mm) 30 Jun 2015 31 Mar 2015 Assets Non-current assets Decrease in cash and cash equivalents reflecting: Property, plant and equipment 29 26 Goodwill and other intangibles CBH termination in April 2015 321 321 Equity investments 114 114 Profi
Slide 26: Reported Cash Flow Statement
REPORTED CASH FLOW STATEMENT Cash flow statement (unaudited) (€mm) Q2’15 Q2’14 Net cash provided by/(used in) operating activities 27.4 52.0 Net cash provided by/(used in) investing activities (2.4) (11.0) o/w capital expenditures (7.4) (3.4) Net cash provided by/(used in) financing activities (59.6
Slide 27: Financial Management Dashboard
FINANCIAL MANAGEMENT DASHBOARD MID-POINT TARGET H1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 H1 ‘14 ‘14 ‘14 ‘15 ‘15 ‘15 ‘15 ‘16 ‘16 ‘16 ‘16 ‘17 Third party ~€500m revenue growth +6.9% +10.3% +12.0% +9.6% +11.9% ~€500m (+5% (adjusted) CAGR) Cumulated efficiencies € 22m € 29m € 38m € 44m € 51m (accrued basis) Run
Slide 28: Conclusion
CONCLUSION
Slide 29: Executive Summary
EXECUTIVE SUMMARY Another set of good results 1 • Solid third party revenue growth for the 5th consecutive quarter (+11.9%) • Ongoing cost discipline resulted in a -11.0% decrease in operational expenses • 53.9% of quarterly EBITDA margin thanks to good performance across most of our businesses 1st
Slide 30: 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 the accuracy, adequacy or completeness of the information and