Euronext - 2019 Universal Registration Document

Presentation of the Group 1 Description of the Business

1.3.2

STRENGTHS

representing 55% of cash equities trading average daily volume and 71% of derivatives trading average daily volume for the year ended 31 December 2019. A substantial portion of the flow from the United Kingdom is from global clients with headquarters based in the United States. While United States and Asian clients accounted for 42% and 3% respectively of Euronext’s cash equities trading average daily volume and 29% and 0% respectively of its derivatives trading average daily volume for the year ended 31 December 2019, the Group believes these geographic client segments are currently underexploited and offer potential for growth. Euronext’s sources of revenues are diversified across the businesses, markets and client segments. For the year ended 31 December 2019, approximately 50% of the Company’s revenues were generated by the non-volume related businesses. Non-volume related businesses include advanced data services, listings excluding IPOs, custody and settlement, and Euronext Technology Solutions & other. This helps to limit Euronext’s exposure to cyclicality in demand for particular products or services or in individual markets. Resilient Model Delivering Consistent Growth and Profitability

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focus on core European markets

resilient model delivering consistent

growth and profitability

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liquidity and transparency to all market participants through regulated exchanges

offering of a wide range of product

united in diversity’ with an open federal model

Focus on Core European Markets Euronext benefits from a diverse client base, both in terms of geographic distribution and type of trading flow. The Company has an established continental European and United Kingdom client base,

The following table sets out information relating to the sources of total revenue for the year ended 31 December 2019 and for the year ended 31 December 2018:

Year ended 31 December 2019

Year ended 31 December 2018

Revenue % of total revenues

Revenue % of total revenues

In thousands of euros

Listing

128,951

19.0%

106,490

17.3%

Trading revenue

272,810

40.2%

276,572

45.0%

of which:

n Cash trading

205,565

30.3%

210,947

34.3%

n Derivatives trading

44,324

6.5%

43,910

7.1%

n Spot FX trading

22,921

3.4%

21,715

3.5%

Investor services

5,735

0.8%

Advanced data services

128,756

19.0%

118,298

19.2%

Post-trade

104,831

15.4%

77,381

12.6%

of which:

n Clearing

55,237

8.1%

55,331

9.0%

n Custody and Settlement

49,594

7.3%

22,050

3.6%

Euronext Technology Solutions & other

37,805

5.6%

36,063

5.9%

Other income

220

0.0%

229

0.0%

TOTAL REVENUE

679,108

615,033

Liquidity and Transparency to all Market Participants Through Regulated Exchanges

Euronext’s businesses are characterised by recurring revenue streams which generate resilient and robust free cash flow and allow Euronext to operate and invest in its business with flexibility. The Group’s market expertise and proven, multi-asset class technology infrastructure allow Euronext to launch new products without substantial additional capital expenditure. Further, the Company’s trading businesses do not expose it to credit risk or counterparty risk, which is borne by the counterparties to the trade and not by the markets. Euronext believes that its capital-light business and resilient free cash flow generation provide a potential for attractive return for shareholders while observing its regulatory capital requirements.

Euronext’s cash equities markets have a diverse member base by geography and trading profile, making for a particularly rich and diversified order book. The combination of Euronext’s position as a leading pan-European trading venue, the quality of its markets and the expertise of the Company’s teams have enabled Euronext to increase its market share in cash equities trading of the securities listed on its markets from 60% in the in 2011 to more than 65% since 2018.

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www.euronext.com

2019 UNIVERSAL REGISTRATION DOCUMENT