Slide 1: Euronext Q1 2020 Results
Euronext Q1 2020 Results RELEASED ON 13 MAY 2020 – 5.45 PM CEST 14 May 2020
Slide 2: Agenda
AGENDA Q1 2020 HIGHLIGHTS Q1 2020 BUSINESS REVIEW Q1 2020 FINANCIAL REVIEW Q&A SPEAKERS Stéphane Boujnah Giorgio Modica CEO and Chairman of the Chief Financial Officer Managing Board │2
Slide 3: Q1 2020 Highlights
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Slide 4: Q1 2020 results boosted by a strong operating performance
Q1 2020 RESULTS BOOSTED BY A STRONG OPERATING PERFORMANCE Strong revenue growth reflecting strong trading volumes in all asset classes and continued diversification with the consolidation Revenue +55.2% of Oslo Børs VPS and Nord Pool €236.8m +€84.2m Non-volume related revenue representing 44% of
Slide 5: Acquisition of VP Securities
ACQUISITION OF VP SECURITIES Strengthening Euronext post-trade business Introduction to VP Securities c.€57.1m Established in 1980 and headquartered in Copenhagen, VP provides national revenue in issuers with core CSD services as well as value-added services to the ecosystem 2019 such as investor
Slide 6: Continued successful expansion in the Nordic region
CONTINUED SUCCESSFUL EXPANSION IN THE NORDIC REGION Oslo Børs VPS €850m+ Capital deployed or committed1) in the Nordic region since 2019 Nord Pool Bergen Helsinki Oslo Stockholm +2 CSDs VP Securities2) Tallinn Strengthening the post-trade Copenhagen business Vilnius Dublin Berlin Amsterdam London Br
Slide 7: Continued successful revenue diversification
CONTINUED SUCCESSFUL REVENUE DIVERSIFICATION 2018 Revenue 2019 Pro forma Revenue1) Technology Solutions & Other Technology Solutions & Other Investor Services 6% 1% Advanced Data Listing 6% Listing Services 17% Advanced 17% 19% Data Services 17% Business c. 23% €615m c. €826m Revenue from post-trade
Slide 8: Q1 2020 Business Review
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Slide 9: Q1 2020 revenue up 55.2% driven by strong trading volumes
Q1 2020 REVENUE UP +55.2% DRIVEN BY STRONG TRADING VOLUMES IN ALL ASSET CLASSES AND THE CONSOLIDATION OF ACQUIRED BUSINESSES €236.8m Double digit growth in trading volumes and Investor Services 1.9 revenue across all asset classes and Nord Pool Q1 2020 consolidated +€84.2m 34.9 power trading activ
Slide 10: Listing revenue up 26.7% to €35.4m in Q1 2020
LISTING REVENUE UP +26.7% TO €35.4 M IN Q1 2020 Strong performance of Euronext Corporate Services and consolidation of Oslo Børs VPS Corporate Services reported a strong performance, generating €6.8 million in Revenue (€m) Money raised (€bn) revenue in Q1 2020, including €0.2 million of contributi
Slide 11: Trading revenue up 73.3% to €111.8m (1/2)
TRADING REVENUE UP +73.3% TO €111.8 IN Q1 2020 (1/2) High volatility supporting cash and derivatives trading volumes and revenue Cash trading Strong combined market share at 69.9%, in a highly volatile environment €80.8m €12.6 bn 0.50 bps 69.9 % Strong organic yield at 0.53bps (vs 0.53bps in Q1
Slide 12: Trading revenue up 73.3% to €111.8m (2/2)
TRADING REVENUE UP +73.3% TO €111.8 IN Q1 2020 (2/2) FX driven by higher volatility and first contribution of Nord Pool trading activities FX trading Solid results thanks to a strong volatility environment through €8.0m $25.9 bn the quarter and improved fee scheme offsetting less favourable revenu
Slide 13: Post-trade revenue up 109.3% to €39.2m
POST-TRADE REVENUE UP +109.3% TO €39.2 M Consolidation of the Norwegian VPS CSD revenue and higher clearing revenue. Clearing in €m €19.2m Higher derivatives trading volumes over the quarter supported by revenue high volatility +45.1% Higher treasury income 19.2 13.2 (organic) Q1 2019 Q1 2020 Cu
Slide 14: Advanced Data Services, Investor Services and Technology Solutions
ADVANCED DATA SERVICES, INVESTOR SERVICES AND TECHNOLOGY SOLUTIONS Consolidation of Oslo Børs VPS and Nord Pool, and resilient performance of the core business. Advanced Data Services in €m Contribution of recent acquisitions Contribution of Nord Pool for +€0.2m €34.9 m 30.8 34.9 Resilient cor
Slide 15: Q1 2020 Financial Review
3 Q1 2020 FINANCIAL REVIEW i ew EURONEXT
Slide 16: Q1 2020 EBITDA up 68.1% to €150m
Q1 2020 EBITDA UP +68.1% TO €150 M Strong performance of core trading business and consolidation of acquisitions in €m +68.1% 63.4% Oslo Børs VPS EBITDA margin -20.8 Nord Pool 38.9 -2.5 150.0 +4.9pts OPCVM360 0.1 66.7% 45.1 Oslo Børs VPS Organic1) Nord Pool 89.3 OPCVM360 EBITDA margin +8
Slide 17: Q1 2020 net income up 71.2% to €96.1m, adjusted EPS up 65.3%
Q1 2020 NET INCOME UP +71.2% TO €96.1M, ADJUSTED EPS UP +65.3% TO €1.44 PER SHARE in €m +71.2% -4.0 -2.8 0.1 2.2 -15.1 -1.1 96.1 €100.7m Q1 Adjusted 60.8 net income1) Interest expenses for the second bond issued in Q2’19 56.1 €1.44 Q1 Adjusted Consolidation of acquisitions EPS1) D&A and PPA +65.
Slide 18: Solid cash flow generation and liquidity position
SOLID CASH FLOW GENERATION AND LIQUIDITY POSITION EBITDA to net operating cash flow For illustrative purpose Debt and leverage in €m 150.0 150.0 in €m 1,018 1,021 116.5 EBITDA 89.3 648 602 Net debt to EBITDA1) 59.5 ratio at 1.3x 51.0 Net operating Gross Net (vs 1.5x in Q4 2019) cash flow Q4 2019 Q1
Slide 19: Euronext
i EURONEXT
Slide 20: Q&A - Speakers
Q&A - SPEAKERS Stéphane Boujnah Giorgio Modica Anthony Attia CEO and Chairman of the Chief Financial Officer Managing Board Managing Board Member │ 20
Slide 21: Appendix
APPENDIX ‘i I EURONEXT
Slide 22: 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 23: Q1 2020 income statement
Q1 2020 INCOME STATEMENT Unaudited, In €m Q1 2020 Q1 2019 % var Organic (like for like at constant currency) Revenue 236.8 152.6 +55.2% +29.5% Listing 35.4 28.0 +26.7% +5.4% Trading revenue 111.8 64.5 +73.3% +54.9% Cash trading 80.8 48.3 +67.3% +59.6% Derivatives trading 15.7 10.4 +51.0% +44.5% Spot
Slide 24: Balance sheet as at 31 March 2020
BALANCE SHEET AS AT 31 MARCH 2020 Unaudited, In €m As at 31 Mar 2020 As at 31 Dec 2019 Unaudited, In €m As at 31 Mar 2020 As at 31 Dec 2019 Non-current assets Shareholders' equity Property, plant and equipment 56.7 58.9 Shareholders' equity 898.1 918.1 Right-of-use assets 48.9 51.8 Non-controlling i
Slide 25: Q1 2020 cash flow and liquidity position
Q1 2020 CASH FLOW AND LIQUIDITY POSITION Unaudited, In €m Q1 2020 Q1 2019 Unaudited, In €m Q1 2020 Q1 2019 Profit before tax 136.2 80.0 Cash beginning of period 369.8 398.0 Investments (incl. subsidiaries net of cash acquired & associates) 61.3 -27.1 Adjustments for: Cash accumulation, net of others
Slide 26: 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 27: Investor Relations
INVESTOR RELATIONS Aurélie Cohen, Head of Investor Relations Clément Kubiak, Investor Relations officer ir@euronext.com +33 1 70 48 24 27 www.euronext.com/en/investor-relations