EURONEXT_Registration_Document_2017

1

PRESENTATION OF THE GROUP

Description of the Business

Resilient Model Delivering Consistent Growth and Profitability Euronext’s sources of revenues are diversified across the businesses, markets and client segments. For the year ended 31 December 2017, approximately 44% of the Company’s revenues were generated by the non-volume related businesses. Non-volume related businesses include market data and indices, listings excluding IPOs, custody and settlement, and market solutions & other. This helps to limit Euronext’s exposure to cyclicality in demand for particular products or services or in individual markets. The following table sets out information relating to the sources of total revenue for the year ended 31 December 2017 and for the year ended 31 December 2016:

YEAR ENDED 31 DECEMBER 2017

YEAR ENDED 31 DECEMBER 2016

% OF TOTAL REVENUES 15.8% 15.8%

% OF TOTAL REVENUES

REVENUE

REVENUE

In thousands of euros

Listing

84,247

68,708

13.8% 44.5%

Trading revenue

237,854

44.7%

220,835

of which:

 Cash trading

190,276

35.7%

180,727

36.4%

 Derivatives trading

40,339

7.6% 1.4%

40,108

8.1%

 Spot FX trading

7,239

-

n/a

Market Data and Indices

104,673

19.7% 13.5%

105,697

21.3% 13.7%

Post-trade

71,698

67,627

of which:

 Clearing

51,132 20,566 33,465

9.6% 3.9% 6.3% 0.1%

47,992 19,635 33,009

9.7% 4.0% 6.6% 0.1%

 Custody and Settlement

Market solutions & other

Other income

357

560

TOTAL REVENUE

532,294

496,436

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. Euronext offers superior market quality to competitors: in December 2017 Euronext provided for blue-chips on average 80% presence at EBBO (European Best Bid and Offer), of which 65% was the first to set the EBBO. This ability to make the EBBO demonstrates the leading role of Euronext in the price forming of its listed securities and in ensuring the best execution for its investors. In addition the average displayed market depth at the Euronext best limit is equivalent to seven times – or 58,289 euros – the average order size, thus demonstrating the ability to absorb large orders in full transparency and at minimal cost, as Euronext’s average spread was 3.72 basis points.

MARKET QUALITY, DEPTH AND LIQUIDITY OF EURONEXT COMPARED TO MTF

PRESENCE TIME AT EBBO (%)

EBBO WITH GREATEST SIZE (%)

EBBO SETTER (%)

RELATIVE SPREAD (bps)

DISPLAYED MARKET DEPTH (€)

BLUE CHIPS (December 2017)

EURONEXT

80% 34% 55%

43%

65%

3.72 8.01 6.29 61.8 7.33

58,289 14,620 18,375 23,984 16,737

BATS EU

0% 2% 0% 0%

3%

Chi-X

10%

Equiduct

2%

0% 5%

Turquoise

41%

The table above is indicative of five metrics allowing to compare Euronext order book liquidity against the most active MTF on the Euronext securities.

22

www.euronext.com

2017 REGISTRATION DOCUMENT