Q2’2014 RESULTS PRESENTATION 7 AUGUST 2014 DISCLAIMER This presentation is for information purposes only and is not a recommendation to engage in investment activities. The information and materials contained in this presentation are provided ‘as is’ and Euronext does not warrant the accuracy, adequacy or completeness of the information and materials and expressly disclaims liability for any errors or omissions. This presentation is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal obligation on Euronext. All proprietary rights and interest in or connected with this publication shall vest in Euronext. No part of it may be redistributed or reproduced without the prior written permission of Euronext. This presentation may include forward-looking statements, which are based on Euronext’s current expectations and projections about future events. By their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of Euronext. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no undue reliance should be placed on any forward-looking statements. Forward-looking statements speak only as at the date at which they are made. Euronext expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this presentation to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law. Euronext refers to Euronext N.V. and its affiliates. Information regarding trademarks and intellectual property rights of Euronext is located at https://www.euronext.com/terms-use. © 2014, Euronext N.V. - All rights reserved. 2 #417362300 EURONEXT PRESENTING TEAM Dominique Cerutti Group Chief Executive Officer Amaury Dauge Lee Hodgkinson Head of Markets & Group Chief Financial Global Sales Officer CEO of Euronext London 3 I Positioning Euronext 4 EXECUTIVE SUMMARY Independence Completion of separation of Euronext from ICE and its IPO on June 20th has enabled 1 enables focus the management to start delivering on its strategy Robust listing performance with a total of €57.6 billion raised on our markets in H1 Healthy trading activity : cash average daily volumes up 13% H1’14/H1’13 (+5% Q2’14/Q2’13) Strong Q2 and H1’14 Derivatives aligned with peers, ongoing lower volatility impacted volumes in 2 performance with financial derivatives while commodities average daily volumes rose 17.4% over the positive momentum first six months of the year Market data and indices revenues +16.4% vs. Q2’13 due to price increases, index constituent weights and an increase in index licence revenues from new leveraged products First efficiencies First efficiencies kicking in, reinforcing our capacity to deliver on our financial 3 kicking in objectives, targeted efficiencies to be delivered quicker than announced EBITDA margin of Revenue increased 5.2% adjusted. Costs under tight control decreased by 8.5% 4 46.3% adjusted in Q2’14 vs Q2’13 5 KEY INVESTMENT HIGHLIGHTS Leading pan-European equities and derivatives platform creating unrivalled depth and liquidity A strong company Established and diversified sources of revenues 1 profile Unique single order book model using a state-of-the-art multi-product and low latency technology platform A favourable European economy on the cusp of recovery with favourable environment 2 environment and increasing market activity Independence allows new strategy to be executed, increasing potential for A focused strategy product innovation, asset class diversification, operating optimisation and that aims to optimise efficiencies 3 an underexploited franchise Low capital intensity, resilient free cash flow generation and strong dividend potential An experienced 4 team, focused on Experienced management team with a deep bench of talent delivering 6 LEADING PAN-EUROPEAN EQUITIES AND DERIVATIVES PLATFORM CREATING UNRIVALLED DEPTH AND LIQUIDITY Trading: Leading cash equities trading venue and established derivatives platform Cash trading volume1 (€bn, LTM total as per 30 June 2014) Derivatives – open interest2 (lots in mm, as of 30 June 2014) 2,677 79 1 394 36 1 072 983 571 526 14 278 10 205 113 58 7 3 1 0 0 0 LSEG DB1 BME OMX SIX Istanbul MOEX Oslo WSE DB1 LIFFE BME OMX LME Oslo Istanbul Athens WSE Superior market quality, depth and liquidity 3 Blue Chips Presence time at EBBO with greatest Relative spread Displayed market EBBO setter (%) (30 June 2014) EBBO (%) size (%) (bps) depth (€) Euronext 81% 46% 65% 5.44 69,431 BATS Europe 26% 0% 2% 12.84 15,350 Chi-X 64% 3% 16% 5.93 27,283 Equiduct 5% 0% 1% 52.05 38,650 Turquoise 62% 4% 15% 6.95 23,594 Stable equity market share thanks to superior market quality, depth and liquidity 90% Euronext market share 65% 60% 30% MTF market share4 35% 0% janv.-12 mars-12 mai-12 juil.-12 sept.-12 nov.-12 janv.-13 mars-13 mai-13 juil.-13 sept.-13 nov.-13 janv.-14 mars-14 mai-14 Source: WFE for non-Euronext data, TAG Audit; Note: For derivatives open interest data, ICE Europe was excluded due to unavailability of data from WFE 1 Excluding reported trades; 2 Excluding Moscow Exchange, due to small contract size of derivatives transactions; 3 Blue Chips are classified as those securities that belong to the AEX- Index, AMX-Index, BEL 20, CAC 40, PSI 20, and SBF 120 indices 4 In Euronext’s markets, including BATS-Chi-X and Turquoise 7 A HIGHLY DIVERSIFIED COMPANY Diversity of: Market solutions & other Listing 8% H1’2014 third Clearing 5% 15% 5% party revenues by Settlement 1 Revenues product 20% Cash trading 37% €223mm Market data & indices 10% Derivatives trading Retail Other Other Retail Own Account 2% Agency Broker 8% 2 Agency Broker 4%2% 1% Multi-type Cash 5% 5% HFT 34% Derivatives 10% trading Institutional 15% trading Multi-type2 Client flows ADV 51% ADV (as of 17% (as of 30/06/14)3 Institutional 30/06/14)3 HFT 20% 25% Own Account The only pan-European exchange in multiple countries on a single order book with a common Geographies technology (UTP) and a harmonised regulatory framework Source: TAG Audit 1 The revenues are not audited. They may not be indicative of future revenues 2 These flows are across a variety of clients; 3 Both legs of the transaction are counted (double counted). YTD 30/06/14 cash ADV = €13bn; YTD 30/06/14 derivatives ADV = 1.1mm 8 EUROPEAN ECONOMY ON THE CUSP OF RECOVERY WITH FAVOURABLE ENVIRONMENT AND INCREASING MARKET ACTIVITY Nominal GDP (2013, €trn) Euronext countries average real GDP growth 1.6% 2.9% 2.6% 1.3% 0.9% 1.1% 1.3% 1.4% 1.5% 13,0 12,6 1,8% 1,8% 1,9% Recovery of 1,6% 1,5% 1,7% the world 1st 6,9 1,0% economic 3,7 area (0,4%) (0,0%) UE US CHN JPN 2010 2011 2012 2013 2014 2015 2016 2017 2018 . Euronext countries (BEL, FRA, NLD, POR) nominal GDP: €3,2trn Inflation IMF estimates Positive . Global regulatory reform to increase transparency, reduce systemic risk and reappraise capital usage regulatory . MiFID 2 and EMIR favoring on-exchange trading environment . Potential growth opportunities in cash products post MiFID 2 Great rotation to equities starting Stock market recovery Disintermediation in progress 140% 15 Global net cash flow into equity (€bn) Global net cash flow into bond (€bn) 10 130% PSI 20: +17% BEL 20: +24.3% 5 Favorable CAC 40: +18,5% 120% sector 0 AEX: +17.9% (5) 110% dynamics (10) (15) 100% (20) 90% Prudential rules 02/01/13 01/10/13 30/06/14 Search diversified sources of funding juil.-13 mai-13 mai-14 juin-14 avr.-13 oct.-13 déc.-13 févr.-13 janv.-13 janv.-14 sept.-13 mars-14 Source: Bloomberg, IMF as of April 2014, WFE for non-Euronext data, FactSet (USD/EUR exchange rate of 0.7521 for nominal GDP conversion; weekly USD/EUR exchange rates for net cash flow into equity/bond). For Euronext, GDP is the total GDPs of France, the Netherlands, Belgium and Portugal 9 INDEPENDENCE ALLOWS NEW STRATEGY TO BE EXECUTED, INCREASING POTENTIAL FOR PRODUCT INNOVATION, DIVERSIFICATION, OPERATING OPTIMISATION AND EFFICIENCIES Boost existing core businesses by further improving transparency, liquidity, technology and customer service . Aggressively driving growth in our listing franchise, with emphasis on providing issuers with a Reinvigoration positive alternative to traditional bank financing of core business . Accelerating delivery of a wide range of service innovations in our core cash franchise, to maximise its full potential . Re-energising client engagement, to exploit potential in the US, emerging Europe and Asia Strategically remix business profile, expand businesses, and accelerate product innovation . Grow underexploited derivatives business through new product expansion in listed equity Reprioritizing options and futures, index and commodity derivatives and ETFs management of . Diversify revenue stream through derivatives clearing arrangement with LCH.Clearnet SA and underexploited new services in the post trade segment businesses . Implement commercial opportunities from regulatory-driven change . Focus on non-transaction related revenue streams Optimise Euronext as an independent entity Achievement of . Streamline processes, enhance operational efficiency and achieve cost savings operating . Optimize our inherited footprint to fit with core businesses synergies . Euronext has identified potential for operating optimisation and efficiencies of c.€60mm1 1 Before tax. The expected operating efficiencies and cost savings were prepared on the basis of a number of assumptions, projections and estimates, many of which depend on factors that are beyond the Company’s control.