Euronext publishes Full Year 2017 Results

STRONG SET OF FINANCIALS THANKS TO STRENGTHENED POSITION ON KEY MARKETS AND FOCUSED ACQUISITIONS

Amsterdam, Brussels, Lisbon, London and Paris – 19 February 2018 – Today Euronext, the leading pan-European exchange in the Eurozone with nearly 1,300 listed issuers, announces its results for the full year 2017.

Strong operating performance for the full year 2017

Increase in revenue to €532.3 million (+7.2%^[1]):
- Despite low volatility, cash trading revenues at €190.3m up 5.3% , thanks to strong market share at 64.4% (67.1% in Q4) and improving volumes (ADV at €7.5bn up 6.7%). Strong growth in listing revenue
- Solid contribution from revenue diversification initiatives with FastMatch and Agility for Growth contributing respectively to the group’s revenue for €7.2m and €9.8m
Robust EBITDA, at €297.8m (+4.9%), with margin at 55.9% (-1.2pt), despite the costs of ramp-up of projects
- Continued core business cost discipline partially offsetting the impact of the change of perimeter, MIFID II compliance and Optiq® projects, and slowing the growth of operational expenses (€234.5 million, up 10.3%)
- €10.9 million of cumulated gross efficiencies achieved since Q2 2016, as part of the cost reduction programme announced in the Agility for Growth plan
Significant increase in EPS (basic): €3.47 (+22.4%). Adjusted EPS at €3.09^[2] (+4.8%)
- Net income, share of the Group, at €241.3m up 22.5%: combination of good operating performance, capital gain from LCH SA share swap^[3] (€40.6m) and non-recurring tax release in Q4 (€20.4m)
First components of Optiq® (cash and derivatives market data gateway) live in 2017, and confirmed delivery of the cash trading platform in H1 2018

Proactive and disciplined capital deployment strategy

Over €300m of capital invested or committed into 8 companies over the last 13 months
Proposed dividend of €121m (€1.73 per share, +21.8%), representing 50% of 2017 reported net income, including LCH SA share swap capital gain, to the AGM on 15 May 2018

Outlook for 2018 and 2019

Confirmed 2019 target of an EBITDA margin of 61% to 63% excluding clearing, with core business revenue growth at +2.0% CAGR 2015-2019 and cost gross savings of €22m
Core business costs reduction expected to start in H2 2018, after the delivery of IT projects
Agility for Growth initiatives expected to contribute to €55m revenue (vs. €70m in May 2016) at 50% EBITDA margin in 2019, due to re-allocation of resources on most value creating growth projects
2019 financials will also benefit from the full-year contribution of FastMatch and of the Irish Stock Exchange (after closing)

Key figures - in €m, unless stated otherwise	2017	2016	% change
Revenue	532.3	496.4	+7.2%
Operational expenses excluding D&A	-234.5	-212.5	+10.3%
EBITDA	297.8	283.9	+4.9%
EBITDA margin	55.9%	57.2%	-1.2pt
Net income, share of the Group	241.3	197.0	+22.5%
EPS (adjusted)²	3.09	2.95	+4.8%
DPS	1.73	1.42	+21.8%

Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:

“2017 was a strong year with key milestones reached for Euronext. We launched growth initiatives, resolved the uncertainties related to clearing, secured the first significant acquisitions since our IPO, delivered the first components of Optiq® and became MIFID II compliant. As a consequence, we are publishing today a strong set of results, showing the strength and growth profile of a profoundly transformed Euronext.

Our confidence is strong for the next two years. Core business revenue should grow in line with forecasts, and we will continue our cost control discipline to ensure the 61% to 63% EBITDA margin target is reached in 2019, excluding clearing activities. FastMatch and the Irish Stock Exchange at closing will further contribute to our 2019 performance. To reflect our active management of priorities, we now forecast €55m revenue at a 50% EBITDA margin for Agility for Growth initiatives in 2019. We will continue to deploy our capital through pertinent acquisitions and keep a 50% dividend pay-out ratio, showing our continued commitment to provide value creation to our shareholders.”

Please download the document attached to read the full press release

_{^[1] Unless stated otherwise, percentages compare 2017 data to 2016 data

^[2]Definition in appendix

^[3]Swap without cash settlement. Please refer to “Highlights of the period” paragraph}

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About Euronext
Euronext is the leading pan-European market infrastructure, connecting European economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. With nearly 1,900 listed issuers and around €6.3 trillion in market capitalisation as of end September 2024, it has an unmatched blue-chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets, one of Europe’s leading electronic fixed income trading markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. The Group provides a multi-asset clearing house through Euronext Clearing, and custody and settlement services through Euronext Securities central securities depositories in Denmark, Italy, Norway and Portugal. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, it also operates a number of junior markets, simplifying access to listing for SMEs.
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