EURONEXT_Registration_Document_2017

PRESENTATION OF THE GROUP

Strategy: “Agility for Growth” Strategic Plan

1.2.6 SETTING AMBITIOUS FINANCIAL OBJECTIVES Euronext’s Agility for Growth strategy aims to translate into a set of financial objectives. In May 2016, based on the current trading environment and competitive landscape, Euronext has set a growth objective of 2% CAGR over the 2015-2019 period for its core business revenue. The revenue expected from the identified growth initiatives (2) would bring additional revenue of €70 million. As a result, Group revenue was expected to reach €575 million, vs . €467 million in 2015, excluding clearing revenue. These expectations relied both on factors that Euronext management can influence such as product and service launches and on factors that are outside its influence (global volume environment, macro trends, political uncertainty, Brexit, competition, …). Cost management remains a key pillar of Euronext’s strategy to 2019. A target of €22million of gross efficiencies has been identified, representing about €15 million net, taking into account an annual inflation rate of 1% over the period. The restructuring costs requested to deliver the additional cost efficiencies are estimated at 1.5 times the gross efficiencies, or €33 million. The completion of the strategic plan and the growth initiatives would induce about €35 million of additional operational expenses. On a net basis, the Company’s cost base would then increase by about 1% CAGR over the period (excluding clearing operations). Therefore

factoring in these revenue and cost assumptions, Euronext’s EBITDA margin was expected to range between 61% and 63% by 2019.

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Update in 2017 2017 has been a very active year for Euronext, with more than 8 investments in companies closed or committed, for more than €300 million. The acquisitions of FastMatch and of the Irish Stock Exchange (1) in 2017, not included in the initial targets, have led the management to allocate resources to highly value creating projects. As a result of these and of the delays related to the on-boarding of clients due to other focus of the industry, the management has also decided to refocus the Agility for Growth initiatives to the most promising projects among those announced in May 2016 (2) :  the Chequers collateral management is cancelled, following client feedbacks, while the inventory management platform is continued;  the specialist content provider on agricultural commodities is postponed, following the lack of acquisition opportunities that matches Euronext criteria;  the MTF for ETF opportunity is delayed to H2 2018. As a result, the 2019 incremental revenue contribution of Agility for Growth initiatives is refined to €55 million ( vs . €70 million in May 2016), while core business revenue 2019 targets are unchanged and 2019 revenue will also benefit from the full-year contribution of FastMatch and of the Irish Stock Exchange (1) .

Given the recent developments and the current outlook information on risks and opportunities Euronext has, the table below sums up the main 2019 targets:

2019 TARGETS

Core business revenue Excluding Clearing, FastMatch, ISE (after closing) and other future acquisitions

+2.0 % CAGR 15-19

( unchanged )

Core business costs savings

€22m costs gross savings between 1 April 2016 and 2019 ( unchanged ) Core business costs reduction expected to start in H2 2018, after the delivery of IT projects 61 to 63% of EBITDA margin excluding clearing (unchanged) , FastMatch and Irish Stock Exchange

EBITDA margin

Agility for Growth initiatives

+€55m revenue between 2015 and 2019 (vs. €70m in May 2016) At 50% EBITDA margin ( unchanged )

Acquisition criteria

ROCE>WACC in year 3 ( unchanged )

Dividend policy

50% of reported net income, with a floor at €1.42 per share ( unchanged )

(1) The closing of the Irish Stock Exchange acquisition occurred on 27 March 2018. (2) Please refer to Paragraph 1.2.4.

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2017 REGISTRATION DOCUMENT