“Innovate for Growth 2027” targets the acceleration of Euronext's revenue growth through innovation and diversification.

Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris – 7 November 2024 – Euronext, the leading European capital market infrastructure, today released its new three-year strategic plan, “Innovate for Growth 2027”.

“Innovate for Growth 2027” sets out the Group's ambition to leverage Euronext's presence on the entire capital markets value chain in Europe to accelerate growth through innovation and efficiency. Euronext announces an updated capital allocation policy with a focus on shareholders' returns and strategic flexibility. In line with this new capital allocation policy, Euronext will launch a €300 million maximum share repurchase programme on 11 November 2024.

Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, said:

”Euronext today is fundamentally different from Euronext in 2020. And, for the past four years, Euronext has profoundly transformed capital markets in Europe. We have achieved our “Growth for Impact 2024” targets a full quarter in advance, thanks to strong integration capabilities, solid organic growth and continuous cost discipline. Euronext now covers the entire capital markets value chain in Europe, with a global outreach. We are fully equipped to take advantage of tailwinds and capture opportunities on both volume and non-volume businesses.

“Innovate for Growth 2027” frames Euronext's potential for the acceleration of our growth.

Our strategy relies on three priorities: (i) accelerate growth in non-volume business, (ii) expand the FICC1 trading and clearing franchise and (iii) build upon our leadership in trading. Our strategy will provide a stronger value proposition for investors, issuers and market participants globally.

ESG will continue to be embedded in all our businesses, and we will scale up our ESG ambition, with a Net Zero commitment to be set by 2027.

We have consolidated and offered best-in-class technology across European capital markets. Now, we will enhance our operational excellence and innovation capabilities through AI.

This plan is an inflection point for Euronext towards faster organic growth. Our financial guidance reflects our ambition to accelerate our growth and invest to seize future opportunities. Euronext’s organic revenue growth is expected to be above 5% on average per year between 2023 and 2027. Adjusted EBITDA growth is expected to be above 5% on average per year between 2023 and 2027. We will keep a strong focus on costs and will continue to invest for future growth.

The Group will continue to execute external growth opportunities, in line with its investment criteria of ROCE above WACC in years 3 to 5. We are announcing today an updated capital allocation policy with attractive returns for shareholders and strategic flexibility.

By 2027, Euronext will be larger, stronger and more diversified. Our leadership will be extended to new activities and asset classes in Europe. The Group will be positioned as the unique and most efficient gateway to European capital markets for listing, trading, clearing, settlement and custody. By 2027, Euronext will be the undisputed backbone of the European Savings and Investments Union.”

·2027 financial targets:

oRevenue and income is expected to grow above 5% CAGR2023-2027E;

oAdjusted EBITDA is expected to grow above 5% CAGR2023-2027E;

oCAPEX is expected to be between 4% to 6% of total revenue over the period.

·Updated capital allocation principles:

oEuronext will invest to enhance growth and strengthen its market position, and to sustain a strong cash flow generation profile;

oEuronext will maintain a strong balance sheet and targets a medium-term leverage ratio of 1.0x-2.0x net debt to adjusted EBITDA, with flexibility to pursue value-accretive M&A. Euronext will preserve an investment grade rating by S&P of at least BBB;

oEuronext will maintain a dividend pay-out at 50% of reported net income;

oEuronext will continue to pursue value-accretive M&A with ROIC>WACC in years 3 to 5, to reinforce and diversify its profile;

oEuronext will introduce a flexible approach to special returns, including share buybacks. Special returns will be periodically assessed considering Euronext’s leverage, market developments and strategic opportunities;

oIn line with its updated capital allocation policy, Euronext today announces the launch of a share buyback programme of a maximum of €300 million (representing around 3.0% of Euronext’s outstanding shares), starting on 11 November 2024 for a maximum duration of 12 months. This programme is enabled by Euronext’s strong cash generation capabilities and demonstrates Euronext’s rigorous capital allocation strategy. This programme is not expected to change Euronext’s credit rating.

· “Innovate for Growth 2027” strategic priorities:

oAccelerate growth in non-volume business;

oExpand the fixed income, currencies and commodities (FICC) trading and clearing franchise;

oBuild upon our leadership in trading.

·Transversal enablers of Euronext's superior growth:

oEmpower sustainable finance through ambitious ESG commitments;

oEnhance operational excellence, enabled by artificial intelligence and the scalability of Euronext’s model;

oDeliver value-creative M&A through external growth opportunities, in line with Euronext’s disciplined investment criteria.

·New reporting framework
In order to align with the evolved business structure and to facilitate the analysis of performance, Euronext will introduce a new, simplified revenue presentation. From Q1 2025, consolidated revenue will be broken down into the following categories, to distinguish non-volume and volume-related revenue:

oNon-volume related revenue and income

§Capital markets and data solutions;

§Securities services;

§Net treasury income;

oVolume-related revenue

oEquity markets;

oFixed income, currencies and commodities (FICC) markets.

Agenda

The Euronext Investor Day will be held on Friday 8 November 2024, in Paris.

·Live webcast (questions permitted from investors and analysts): To view the live webcast of the plenary session go to: Link to webcast

·The webcast will be available for replay after the call at the webcast link and on Euronext’s Investor Relations webpage at www.euronext.com/investors