Euronext Nv · EURONEXT:ENX

Euronext Nv — Q1 2018 Earnings Presentation

25 slides from Euronext Nv's earnings presentation, May 15, 2018

  1. Slide 1: Q1 2018 Results Presentation

    Q1 2018 RESULTS PRESENTATION 15 May 2018 Released on 15 May 2018 – 7.00am CET

  2. Slide 2: Main Speakers

    MAIN SPEAKERS Stéphane Boujnah CEO & Chairman of the Managing Board Giorgio Modica CFO Euronext Q1 2018 results |2

  3. Slide 3: Agenda

    AGENDA I Q1 2018 Highlights II Q1 2018 Financials III Latest trends Euronext Q1 2018 results |3

  4. Slide 4: I. Q1 2018 Main Highlights

    Il. Q1 2018 MAIN HIGHLIGHTS

  5. Slide 5: Highlights of Q1 2018

    HIGHLIGHTS OF Q1 2018 Strong volume ─ Cash equity ADV up 21.9% to €8.5bn, with market share at 65.3% growth supported ─ Derivatives ADV up 14.8% to 595k lots by market share ─ FX Spot ADV up 14.3% to $20.2bn and volatility MIFID II first ─ Euronext MIFID II compliant from Day 1 takeaways ─ Caps on d

  6. Slide 6: A Strong Q1 2018 to Start the Year

    A STRONG Q1 2018 TO START THE YEAR Strong increase ‒ High revenue capture in cash trading with yield at 0.52bps and in Q1 2018 improved cash market share at 65.3% +€20m revenue ‒ Strong performance of Market Data and Indices revenue +15.9% at ‒ FastMatch revenue at €5.2m (consolidated from August 20

  7. Slide 7: Euronext Welcomes Dublin to Its Federal Model

    EURONEXT WELCOMES DUBLIN1) TO ITS FEDERAL MODEL  The Irish Stock Exchange plc joined Euronext’s federal model Combined Group as the largest centre for debt and funds on 27 March 2018 operating under the business name listings in the world, with: Euronext Dublin, with Ireland becoming one of the six

  8. Slide 8: II. Q1 2018 Financials

    Il. Q1 2018 FINANCIALS , ie eae on ee on Se dest CAC AD

  9. Slide 9: Q1 2018 Revenue Up 15.9%

    Q1 2018 REVENUE UP 15.9% KEY DRIVERS: VOLUMES GROWTH, MARKET DATA PERFORMANCE AND ACQUISITIONS Revenue +15.9% Q1 2018 revenue up 15.9% to €146.7m (+€20.1m) In €m 146.74)  Listing revenue down in a mixed environment with both a strong IPO pipeline and high volatility 18.0 -4.3% 126.6  Improved cash

  10. Slide 10: Listing Revenue Down 4.3% to €18.0m

    LISTING REVENUE DOWN 4.3% TO €18.0M MIXED ENVIRONMENT COMBINING A STRONG IPO PIPELINE AND HIGH VOLATILITY  Intense commercial activity maintained for Corporate Listing revenue1) Services, an Agility for Growth initiative, recording In €m -4.3% €3.7m of revenue, and a consolidated offering. 18.8 18.

  11. Slide 11: Cash Trading Revenue Up 19.4% to €55.7m

    CASH TRADING REVENUE UP 19.4% TO €55.7M STRONG REVENUE CAPTURE AND MARKET SHARE IN A VOLATILE ENVIRONMENT Cash trading Revenue per trade Market share for Q1 2018 In bps, single counted Cash trading: revenue up 19.4% to €55.7m +0.9%  Improved cash market share at 65.3%, supported 0.52 65.3% by: 0.51

  12. Slide 12: Improved Derivatives Trading and Spot FX Trading Revenue

    IMPROVED DERIVATIVES TRADING AND SPOT FX TRADING REVENUE Derivatives trading Derivatives trading: revenue up 4.5% to €10.6m Average daily volume Revenue per lot Financial derivatives In ‘000 lots, single counted In €, double counted  Increasing trading activity in financial derivatives in +14.9% a

  13. Slide 13: Other Businesses

    OTHER BUSINESSES QUARTERLY GROWTH OF MARKET DATA AND GOOD PERFORMANCE OF MARKET SOLUTIONS Market Data and Indices In €m +15.4%  New market data agreements in 2018 29.7 25.7  Good performance of indices Q1 2017 Q1 2018 Market solutions & Others In €m +5.2%  First milestones of the Optiq® delivery

  14. Slide 14: Q1 2018 EBITDA Up 25.1%, Reaching 60.1% EBITDA Margin

    Q1 2018 EBITDA UP 25.1%, REACHING 60.1% OF EBITDA MARGIN STRONG OPERATING LEVERAGE COMBINED WITH CONTINUED COST DISCIPLINE In €m +25.1% EBITDA up +25.1% to €88.2m (60.1% margin), driven 88.2 by good operating performance and cost efficiency -0.4 -0.7 -0.5 -0.8  Impact of 2017 acquisitions, iBabs an

  15. Slide 15: Main 2019 Financial Targets and First Results

    MAIN 2019 FINANCIAL TARGETS AND FIRST RESULTS in M€ 2017 2018 Target Q1 Q2 Q3 Q4 FY Q1 FY 2019 FY 2021 Core business1) excluding clearing 113.8 122.4 110.2 117.7 464.1 124.2 505 Agility for Growth initiatives (AfG)2) 1.0 1.6 2.9 4.3 9.8 4.2 55 Revenue Core business + AfG, excl. clearing and new peri

  16. Slide 16: Strong Cash Flow Generation and Liquidity Position

    STRONG CASH FLOW GENERATION AND LIQUIDITY POSITION EURONEXT RATED “A” (OUTLOOK STABLE) BY STANDARD & POOR’S Debt Launch of an inaugural bond on 18 April 2018 In €m Objective: Securing long term financing while diversifying funding mix at competitive cost 31 Dec. 2017 31 March 2018  Size: €500 milli

  17. Slide 17: III. Latest Trends

    III. LATEST TRENDS

  18. Slide 18: Latest Trends

    LATEST TRENDS ─ Cash equity ADV down -8.8% at €7.9bn in April 2018 compared to April 17 Current trading ─ Derivatives ADV down -3.9% at 574k lots in April 2018 compared to April 17 ─ FX Spot ADV up +1.7% at $19.4bn in April 2018 compared to April 17 ─ Continued development of Optiq™: bond regulated

  19. Slide 19: Q&A

    Q&A Stéphane Boujnah Anthony Attia CEO & Managing Board Member Chairman of the Managing Board Giorgio Modica CFO Euronext Q1 2018 results |19

  20. Slide 20: Appendices

    APPENDICES

  21. Slide 21: Q1 2018 P&L (Excluding Euronext Dublin)

    Q1 2018 P&L (EXCLUDING EURONEXT DUBLIN) Unaudited, In €m Q1 2018 Q1 2017 % var Revenue 146.7 126.6 +15.9% Listing 18.0 18.8 -4.3% Trading revenue 71.5 56.8 +25.9% Cash Trading 55.7 46.7 +19.4% Derivatives Trading 10.6 10.1 +4.5% Spot FX Trading 5.2 0.0 N/A Market Data & indices 29.7 25.7 +15.4% Post

  22. Slide 22: Adjusted EPS Definition

    ADJUSTED EPS DEFINITION In €m unless stated otherwise Q1 2018 Q1 2017 Net Income Reported 57.3 43.9 EPS Reported (€ per share) 0.82 0.63 Intangible assets adj. related to acquisitions (PPA) - 1.5 - Exceptional items - 1.0 - 3.1 Tax related to those items 0.7 0.8 Adjusted for intangible assets relate

  23. Slide 23: Balance Sheet as at 31 March 2018 – Including Euronext Dublin

    BALANCE SHEET AS AT 31 MARCH 2018 – INCLUDING EURONEXT DUBLIN As at 31 As at 31 Dec Unaudited, In €m Mar 2018 2017 Non-current assets Property, plant and equipment 35.1 27.8 Goodwill and other intangible assets 651.7 515.1 Deferred income tax assets 8.0 8.0 Investments in associates and JV 77.3 75.0

  24. Slide 24: Q1 2018 Cash Flow & Liquidity – Including Euronext Dublin

    Q1 2018 CASH FLOW & LIQUIDITY – INCLUDING EURONEXT DUBLIN Cash Flow Statement for Q1 2018 Liquidity for Q1 2018 Unaudited, In €m Q1 2018 Q1 2017 Unaudited, In €m Q1 2018 2017 Profit before tax 83.0 63.2 Cash beginning of period 187.8 174.5 Debt repayment (70.0) Adjustments for: - Depreciation and am

  25. Slide 25: 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

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