EURONEXT_Registration_Document_2017

5

OPERATING AND FINANCIAL REVIEW

Overview

 Confirmed €6m of expected pre-tax run-rate cost synergies, to be fully delivered in 2020, primarily driven by: — the migration to OptiqTM, Euronext’s new state-of-the-art proprietary trading platform; — the aggregation of a pan-European offering on market data by migrating Euronext Dublin’s current offering onto Euronext’s platform; — Euronext Dublin benefitting from the Group’s support functions;

— Immediate start of the integration work to meet the 2020 target date.  Expected return on capital employed above the cost of capital within year three, in line with Euronext’s disciplined M&A approach, and EPS accretive from year one. Euronext Dublin to be consolidated in Euronext financials starting 1 April 2018. As a reminder, Euronext Dublin generated (4) €32.3 million revenue at an EBITDA margin of 31.9% in 2017.

5.1.8

RESULTS OF OPERATIONS

YEAR ENDED 31 DECEMBER 2017 COMPARED TO YEAR ENDED 31 DECEMBER 2016 The table below sets forth Euronext’s results of operations for the years ended 31 December 2017 and 2016.

YEAR ENDED

31 DECEMBER 2017

31 DECEMBER 2016

In thousands of euros

Revenue

532,294

496,436

TOTAL REVENUE

532,294

496,436

Salaries and employee benefits

(104,363)

(99,776)

Depreciation and amortisation

(16,932)

(15,088)

Other operational expenses

(130,149)

(112,766)

Operating profit before exceptional items

280,850

268,806

Exceptional items

(14,787)

(10,038)

Operating profit

266,063

258,768

Finance costs

(3,553)

(2,142)

Other net financing income/(expense)

(47)

1,336

Result from available-for-sale financial assets

48,325

6,032

Share of net (loss) of associates and joint ventures accounted for using the equity method

287

(19)

Profit before income tax

311,075

263,975

Income tax expense

(68,886)

(66,962)

Profit for the year

242,189

197,013

Profit attributable to:  Owners of the parent

241,297

197,013

 Non-controlling interests

892

-

(1) Unaudited figures

112

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2017 REGISTRATION DOCUMENT