Euronext Nv · EURONEXT:ENX
Euronext Nv — FY2002 Earnings Presentation
23 slides from Euronext Nv's earnings presentation, Mar 21, 2003
Slide 1: Press presentation: Annual results 2002
Press presentation Annual results 2002 Paris, 21 March 2003
Slide 2: Solid results in line with forecast
Solid results in line with forecast (in €mn) 2001 2002 Change Pro-Forma (%) Revenues 936.5 996.6 +6.4% Expenses 825.3 758.8 -8.1% EBIT before GW amortisation 111.2 237.8 +113.9% Margin (%) 12.0% 23.9% +99.3% Profit before tax 144.3 277.4 +92.2% Net profit 58.0 166.2 +186.6% Result before GW amortisa
Slide 3: Well balanced revenues stream
Well balanced revenues stream Other income : €24.3m Cash trading : €190.5m Sales of software : €148.5m EBIT Margin : 45.7% EBIT Margin : 21.0% 2.4% 14.9% 19.1% Info. services : €92.1m Listing : €38.4m EBIT Margin : 19.8% 3.9% EBIT Margin : 34.0% 9.2% Settlt & Custody : €29.1 2.9% EBIT Margin : 28.8%
Slide 4: Cash markets: Increase of volumes and of cross border trading
Cash markets : Increase of volumes and of cross border trading Paris market Amsterdam market Brussels market 7.9% 17.1% 23.5% 15.3% 1.6% 1.7% 97.3% 99.0% 89.0% 79.8% 81.4% 74.8% 0.7% 0.6% 0.3% 2.1% 3.1% 4.9% Jan. 2002 Dec. 2002 Jan. 2002 Dec. 2002 Jan. 2002 Dec. 2002 French and London Belgian member
Slide 5: Cash markets: Synergies pay: strong profitability
Cash markets : Synergies pay : strong profitability LISTING 2001 2002 Change In line with the market environment. Pro-Forma (%) IPO activity has been poor. Revenues 50 493 38 396 -24.0% Segmental revenues 34 419 Organisational structure optimised EBIT 11 714 ð EBIT margin : 34% EBIT margin 34.0% CAS
Slide 6: Strong activity in fixed-income derivatives (1/2)
Strong activity in fixed-income derivatives (1/2) All short term interest rates products 25 000 000 20 000 000 15 000 000 Volume Open Interest 10 000 000 5 000 000 0 2 3 2 3 02 2 2 se 2 02 2 2 02 2 02 -0 -0 -0 -0 r-0 -0 -0 -0 -0 t-0 v- c- s- il- vr vr nv nv in ût ai pt av oc no dé ju ar fé fé ju m a
Slide 7: Strong activity in fixed-income derivatives (2/2)
Strong activity in fixed-income derivatives (2/2) Promising recently launched products : EONIA futures 6000 5000 4000 3000 2000 1000 0 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 3 -fé 3 -fé 3 -fé 3 -fé 3 -fé 3 05 r-0 06 r-0 10 r-0 11 r-0 12 vr-0 13 r-0 14 r-0 19 r-
Slide 8: As well as in equity and index derivatives
As well as in equity and index derivatives 120 000 000 All equity and index products 100 000 000 80 000 000 60 000 000 40 000 000 20 000 000 01 02 01 se 1 se 2 2 3 1 1 01 2 2 02 0 0 -0 -0 -0 -0 -0 -0 s- s- v- il- il- v- v- nv nv pt pt ai ai ar ar n ju ju no no m m ja ja ja m m Volume Open Interest M
Slide 9: Derivatives markets
Derivatives markets 2001 2002 Change Pro-Forma (%) Number of contracts 619 148 198 697 006 243 12.6% Strong increase in volumes: Nb of trading days 253 255 11.7% • equity derivatives + 16 % Average daily nb of contracts 2 447 226 2 733 358 • interest rate futures +16% 2001 2002 Change ð Good growth
Slide 10: Derivatives migration update
Derivatives migration update Brussels and Paris migrations on target as already indicated Amsterdam migration to Clearing 21 planned for September 2003 We confirm Amsterdam Migration to LIFFE CONNECT™ for 2004 10
Slide 11: Integration progress: Update of technical migrations
Integration progress : Update of technical migrations Migration Clearing 21® Clearing 21® LIFFE NSC to/in Cash Derivatives CONNECTTM Achieved Achieved Brussels 24/03/03 24/03/03 (05/01) (03/02) Achieved Achieved Paris Achieved 14/04/03 (01/01) (10/00) London N/A N/A N/A Achieved Achieved Achieved Am
Slide 12: Clearing
Clearing 2001 2002 Change Good growth in volumes Pro-Forma (%) But value per trade decreased by Number of trades 122 811 125 137 949 264 +12.3% 6.6% Transaction value of trades (€ Mn) 1 716 008 1 603 093 -6.6% Number of derivatives contracts 619 148 198 697 006 243 +12.6% ðSolid revenues growth : +6
Slide 13: Sales of software: Diversified revenues stream
Sales of software Diversified revenues stream LMS GLTrade 13.2% 86.8% 2001 2002 Change Pro-Forma (%) Revenues 109 855 148 484 35.2% Segmental revenues 109 855 128 929 EBIT 27 125 EBIT margin 21.0% Excellent revenues growth : +35.2%. while maintaining a stable EBIT margin at 21% 13
Slide 14: Product developments
Product developments New European equity indices: • We are set to launch new tradable European indices. in co-operation with FTSE. • This new generation of European indices is developed according to customer demand. • The corresponding derivative contracts will follow. New European government bond i
Slide 15: Financials
Financials
Slide 16: Costs structure
Costs structure Depreciation Total costs 2002 : 9.8% €758.8mn Other 5.6% €74.1m Marketing costs 2.1% €42.5m Staff costs €16.1m €296.6m 39.1% €52.4m Accomodation 6.9% €276.9m ICT expenses. office & adm. advisory costs 36.5% 16
Slide 17: Costs are under control
Costs are under control: Total operating costs decreased by 8.1%. to €684.6m 350.0 - 6.5% - 4.5% 317.3 300.0 296.6 289.9 276.9 250.0 200.0 150.0 ì +18.8% - GL Trade’s growth 100.0 - Index increase for real estate - 39.2% 70.0 50.0 - 40.9% 44.1 52.4 42.5 27.3 16.1 - Staff costs ICT expenses. Accomoda
Slide 18: One-Offs after EBIT impacting the net profit
One-Offs after EBIT. impacting the net profit 2001 2002 Change Pro - forma (%) EBIT after GW am. 53 607 184 670 244.5% Atos Origin shares Net financial income 16 691 15 871 -4.9% reevaluation to fair value Gain on disposal 36 473 416 -98.9% (€16.4m) Reevaluation to fair value 1 515 - 17 459 ns Other
Slide 19: Conclusion - Forecast
Conclusion - Forecast
Slide 20: Conclusions: Dividend for the year 2002
Conclusions Dividend for the year 2002 Proposal of the Supervisory Board : • Dividend : 0.45€ : + 28.6% compared to 0.35€ in 2001 • Total amount : €54 millions • Pay-out ratio : 53% (after restatement of one-off items) The dividend is subject to the approval of annual accounts by the AGM (22nd of Ma
Slide 21: Conclusions: Forecast for 2003
Conclusions Forecast for 2003 Due to ongoing uncertain market environment: stable or slightly progressing revenues Ongoing strong cost controls è further improvement of our EBIT This includes nevertheless the following major developments : • Migration costs of derivatives from Brussels and Paris to
Slide 22: Appendix
Appendix
Slide 23: Appendix - Definitions
Appendix- Definitions •EBIT Operating Revenues (excluding net interests) – Operating Expenses (including depreciations and excluding Goodwill amortisation) •EBIT Margin •Business Line: BL’s EBIT (before goodwill amortisation) / Segment revenues •Group: EBIT (before goodwill amortisation)/total reven