Euronext - 2019 Universal Registration Document

Operating and financial review

Overview

Total Revenue Euronext’s total revenue for the year ended 31 December 2019 was €679.1 million, an increase of €64.1 million compared to €615.0 million for the year ended 31 December 2018. The table below sets forth Euronext’s revenue for the years ended 31 December 2019, 2018 and 2017.

2019

2018

2017 84,247 237,854

In thousands of euros

Listing

128,951 272,810

106,490 276,572

Trading revenue

of which

n Cash trading

205,565 44,324 22,921

210,947 43,910 21,715

190,276 40,339

n Derivatives trading

n FX trading

7,239

Investor Services

5,735

Advanced data services

128,756 104,831

118,298 77,381

104,673 71,698

Post-trade

of which

n Clearing

55,237 49,594 37,805

55,331 22,050 36,063

51,132 20,566 33,465

n Custody & Settlement and other

Euronext Technology Solutions & other revenue

Other income

220

229

357

TOTAL REVENUE

679,108

615,033

532,294

Listing For the year ended 31 December 2019 (1) :

For the year ended 31 December 2018: Listing revenue was €106.5 million in 2018, an increase of 26.4% compared to 2017. This good performance was driven by the integration of Euronext Dublin (+€16.7 million) from Q2 2018 and incremental revenue from Corporate services (+€7.5 million). Excluding the adjustment on deferred revenue due to IFRS 15, listing revenue would have been €97.6 million in 2018. Primary equity issues activity was impacted by market volatility over 2018 and reduced investors’ appetite. However, Euronext value proposition notably attracted flagship innovative companies, such as Adyen and Neoen, for their listings. Euronext also welcomed on its markets listings of family businesses, such as Roche Bobois, and Tech SMEs, such as Acacia Pharma or Media Lab. In 2018, Euronext recorded 33 new listings, including 27 SME deals, compared to 29 listings (of which 18 SME deals) in 2017. This translated into €3.6bn raised in 2018, compared to €4.2bn last year. Activity on the secondary market was stable in 2018 vs . 2017, supported by SME projects raising financing for their development as well as large M&A activities in Europe, including the Unibail- Rodamco-Westfield, Worldline-SIX and Essilor-Luxottica deals. Over 2018, €60.7bn were raised in secondary equity issues, compared to €62.3bn in 2017. In total, €1.0 trillion in equity and debt were raised on Euronext’s markets in 2018, compared to €789.4 billion in 2017 (2) . Corporate services generated €16.6 million in revenue in 2018, compared to €9.1 million in 2017.

Listing revenue was €129.0 million in 2019, an increase of +21.1% compared to 2018, driven by the strong performance of Euronext’s Corporate Services (+€7.2 million) and the consolidation of Oslo Børs VPS for 6.5 months and Euronext Dublin for 3 months (Euronext Dublin was consolidated for 9 months in 2018) collectively contributing €18.3 million. On a like-for-like basis, listing revenue increased by +3.9%. Primary equity issuances were mixed over the year with a subdued activity in the first half followed by the return of large caps listings across Euronext markets in the second half of the year. This solid listing activity demonstrated the attractiveness of Euronext value proposition to both international and domestic large capitalisations from all sectors, such as Marel, la Française Des Jeux, Prosus, Verallia and Adevinta which altogether added 110 billion of market cap. In addition, Euronext welcomed 41 new listings on its markets in 2019, of which 39 SME listings. In 2019, €5.1 billion was raised on primary markets on Euronext, compared to €5.0 billion in 2018. The secondarymarket saw a similar trend over 2019, with follow-ons activity improving through the second half of 2019 reflecting a slight improvement in the economic environment. In 2019, €34.2 billion was raised in secondary equity issues, compared to €64.2 billion in 2018, which was marked by significant large-cap M&A activities in Europe. In total, €1.3 trillion in equity and debt was raised on Euronext’s markets in 2019, compared to €1.1 trillion in 2018. Corporate Services reported a strong performance throughout 2019, generating €24.4 million in revenue, including €0.6 million of contribution from Oslo Børs VPS, compared to €16.6 million in 2018, reflecting strong client traction across all the services offered.

7

(1) 2018 figures have been restated to include Oslo Bør VPS. (2) Historical data for 2017 differ due to the retroactive inclusion of Euronext Dublin data and reclassification to comply with updated FESE methodology.

155

2019 UNIVERSAL REGISTRATION DOCUMENT