Euronext Nv · EURONEXT:ENX
Euronext Nv — Q4 2021 Earnings Presentation
32 slides from Euronext Nv's earnings presentation, Feb 11, 2022
Slide 1: Euronext Q4 and Full Year 2021 Results
Euronext Q4 and Full Year 2021 Results 11 February 2022 9.00am CET
Slide 2: Q4 & FY 2021 highlights, business review, financial review, Q&A
Q4 & FY 2021 highlights Q4 2021 business review Q4 2021 financial review Q&A Stéphane Boujnah Giorgio Modica CEO and Chairman of Chief Financial Officer the Managing Board │ │22
Slide 3: Q4 & FY 2021 Highlights
WORKING DRAFT – 02/11/2021 STRICLY CONFIDENTIAL Strategic Priorities Q4 & FY 2021 Highlights
Slide 4: Q4 2021 record revenue in Euronext history
Q4 2021 record revenue in Euronext history, driven by strong post-trade and trading activities, especially from MTS Q4 2021 REVENUE €370.1m | +59.5% ▪ Revenue grew +4.3% like-for-like at constant currencies driven by solid organic growth AND INCOME +€138.1m ▪ Significant contribution of the Borsa It
Slide 5: 2021 strong revenue growth, driven by solid organic performance
2021 strong revenue growth, driven by solid organic performance of non-volume related activities and significant contribution from acquisitions FULL YEAR 2021 REVENUE €1,299m | +46.9% ▪ Revenue grew +3.3 % like-for-like at constant currencies driven by a solid organic performance of non-volume relat
Slide 6: Good progress on the Borsa Italiana Group integration
Good progress on the Borsa Italiana Group integration €10.1m ▪ €10.1 million of run-rate synergies delivered in 2021, 8 months after acquisition ▪ Synergies delivered before contribution of identified business development Run-rate opportunities arising from the combination synergies ▪ €27.6 million
Slide 7: Upcoming launch of the AEX ESG index FIT FOR 1.5°
Continued deployment of our ESG strategy Strengthening the ESG index franchise ▪ Upcoming launch of the AEX® ESG index ▪ Following the success of the CAC 40® ESG and MIB® ESG +20 new ESG indices Diversifying into new categories: launched in 2021 climate benchmarks, biodiversity, water & social Outlo
Slide 8: Tech Leaders: Taking Euronext's Tech success to the next level
Tech Leaders: Taking Euronext’s Tech success to the next level Euronext is the listing venue of choice for European Tech companies ▪ 700+ Tech companies issuers listed on Euronext ▪ Flagship TechShare pre-IPO programme ▪ Largest single liquidity pool in Europe providing access to Tech investors acro
Slide 9: Q4 2021 business review
WORKING DRAFT – 02/11/2021 STRICLY CONFIDENTIAL Strategic Priorities Q4 2021 business review
Slide 10: Q4 2021 record revenue up +59.5%
Q4 2021 record revenue up +59.5% driven by the consolidation of Borsa Italiana Group, strong performance of non-volume related businesses and clearing €370.1m +€138.1m 51.9 ▪ Revenue grew +4.3 % like-for-like +59.5% +35.8% ▪ Trading revenue grew +50.4% driven Listing by the consolidation of Borsa It
Slide 11: Listing revenue up +35.8% to €51.9 million in Q4 2021
Listing revenue up +35.8% to €51.9 million in Q4 2021 #1 equity raising and equity listing venue in Europe, with 57 equity listings €51.9m 57 €402.1bn #1 Revenue In Europe for the listing of +35.8% New equity listings Total money raised ETFs in Europe 51.9 3.1 ▪ Continued momentum in primary equity
Slide 12: Trading revenue up +50.4% to €132.3 million (1/2)
Trading revenue up +50.4% to €132.3 million in Q4 2021 (1/2) CASH TRADING Cash trading ▪ Increased trading volumes supported by uncertainty around economic policies and material indices rebalancing €79.3m €12.2bn 0.49bps 71.3% ▪ Strong yield management revenue ADV1 Yield market share +26.5% +4.7% ▪
Slide 13: Trading revenue up +50.4% to €132.3 million (2/2)
Trading revenue up +50.4% to €132.3 million in Q4 2021 (2/2) FX TRADING Cash trading ▪ Lower trading volumes offset by positive impact of €6.1m $19.4bn foreign exchange rates revenue ADV +3.9% -3.1% ▪ Like-for-like at constant currencies, revenue decreased -0.7 % POWER TRADING Cash trading ▪ Increas
Slide 14: Post-trade revenue up +81.2% to €103.8 million
Post-trade revenue, including net treasury income, up +81.2% to €103.8 million in Q4 2021 Consolidation of Euronext Clearing ( formerly CC&G) and Euronext Securities Milan, and strong performance of Euronext Securities CLEARING Cash trading ▪ Total clearing revenue: €30.1m, +73.1% in €m Derivatives
Slide 15: Advanced Data Services, Investor Services and Technology Solutions
Advanced Data Services, Investor Services and Technology Solutions ADVANCED DATA SERVICES ▪ Consolidation of the Borsa Italiana Group data activities ▪ Solid performance of market data business Q4 2021 50.7 +€16.9m ▪ Dynamic index activity (20 new ESG index launched) revenue ▪ Growing contribution o
Slide 16: Q4 2021 financial review
WORKING DRAFT – 02/11/2021 STRICLY CONFIDENTIAL Strategic Priorities Q4 2021 financial review
Slide 17: Q4 2021 EBITDA up +64.1% to €208.2 million
Q4 2021 EBITDA up +64.1% to €208.2 million Consolidation of acquisitions and organic growth in €m +64.1% 56.3% EBITDA margin -54.8 +1.6pts 208.2 -0.1 1.2 125.0 57.0% Like for like1) 126.8 10.1 EBITDA margin ▪ Borsa Italiana Group (acquired) ▪ Centevo (disposed) ▪ OMS (disposed) +7.8% Like for like1)
Slide 18: Q4 2021 net income up +67.8% to €112.7 million
Q4 2021 net income up +67.8% to €112.7 million, adjusted EPS up +19.7% to €1.31 per share in €m +67.8% -25.5 -3.9 -1.8 3.0 -5.4 -2.3 112.7 €140.2m 81.4 Adjusted Net Income1) 67.1 €1.31 Adjusted EPS1) ▪ Borsa Italiana ▪ Mainly dividend Group D&A received from +19.7% and PPA Sicovam Q4 2020 EBITDA D&A
Slide 19: Cash flow generation and liquidity position
Cash flow generation and liquidity position CASH FLOW GENERATION in €m 208.2 ▪ Q4 2021 EBITDA to net operating cash flow conversion rate impacted by: EBITDA 145.6 126.8 ▪ Higher positive changes in working capital 74.7 Net operating cash flow ▪ Excluding the impact on working capital from Nord Pool
Slide 20: Liquidity
Liquidity 1,404.4 600.0 -29.0 4.0 -5.6 145.6 -80.0 802.5 -31.4 804.4 -4.2 3.3 -0.8 €400 m Targeted cash for operation Cash in Cash from Net operating Net Capex Dividends Dividend Repayment Acquisition of Other, inc. FX Change in Cash in Undrawn RCF Liquidity in Q3 2021 assets held cash flow received
Slide 21: 2022 costs guidance
2022 costs guidance ▪ Costs exc. D&A to be adjusted for non-recurring items from Q1 2022 ▪ Ongoing work1) on (i) the Core Data Centre migration, (ii) the migration of Italian Cash and Derivatives markets to the Optiq® trading platform and (iii) the European expansion of Euronext Clearing (formerly C
Slide 22: Q&A
Q&A
Slide 23: Q&A - Speakers
Q&A - Speakers Stéphane Boujnah CEO and Chairman of the Managing Board Giorgio Modica Chief Financial Officer Anthony Attia Global Head of Primary Markets & Post Trade │ 23
Slide 24: Appendix
APPENDIX
Slide 25: Change in financial reporting
Change in financial reporting To highlight its underlying performance, starting from Q1 2022, Euronext will publish underlying recurring costs, adjusted EBITDA and non-recurring costs. Euronext will then remove the exceptional items line from its financial statements. Consequently, costs previously
Slide 26: Number of outstanding shares used for EPS computation
Number of outstanding shares used for EPS computation F oll ow in g t h e rig h t s is s u e t h at oc c u rred on 2 9 Ap ril 2 0 2 1, wh os e s et t l em en t oc c u rs on 14 May 2021, t h e av erag e ou t s t a n d in g n umb er of sh ares (b as ic ) t o b e u s ed f or E P S c omp u t at i on is
Slide 27: Adjusted EPS for Q4 2021
Adjusted EPS for Q4 2021 In €m unless stated otherwise Q4 2021 Q4 2020 Net income reported 112.7 67.1 EPS Reported (€ per share) 1.05 0.88 Intangible assets adj. related to acquisitions (PPA) (22.0) (6.0) Exceptional items (16.2) (12.3) Impairment - - Exceptional financing expense - - Tax related to
Slide 28: Q4 2021 income statement
Q4 2021 income statement unaudited, in €m Q4 2021 Q4 2020 % var % var l-f-l Total Revenues and income 370.1 232.0 +59.5% +4.3% Listing 51.9 38.2 +35.8% +2.5% Trading revenue, of which 132.3 88.0 +50.4% +2.5% Cash Trading 79.3 62.7 +26.5% +3.4% Derivatives Trading 14.2 11.7 +21.4% -4.0% Fixed income
Slide 29: Balance sheet as at 31 December 2021
Balance sheet as at 31 December 2021 unaudited, in €m As at 31/12/21 As at 31/12/20 unaudited, in €m As at 31/12/21 Non-current assets Financial assets of the CCP clearing business Property, plant and equipment 97.6 56.0 Right-of-use assets 66.2 46.9 Goodwill and other intangible assets 6,178.1 1,53
Slide 30: Q4 2021 cash flows and outstanding debt
Q4 2021 cash flows and outstanding debt unaudited, in €m Q4 2021 Q4 2020 Profit before tax 151.3 98.1 Outstanding debt issued Adjustments for: Amount Maturity Interest - Depreciation and amortization 41.3 15.9 Swap-to- - Share based payments 3.0 2.4 €500 million 2025 - Change in fair value of financ
Slide 31: 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 32: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Chief Communications and Investor Relations Officer Clément Kubiak, Investor Relations Manager ir@euronext.com +33 1 70 48 24 27 www.euronext.com/en/investor-relations