euroclear investor day...euroclear investor day march 2019 2 disclaimer the information, statements...
TRANSCRIPT
1
Euroclear Investor Day
March 2019
2
Disclaimer
The information, statements and opinions expressed in this presentation (the “Content”) do notconstitute and shall not be deemed to constitute: (i) any offer, invitation or inducement to sell asecurity or engage in investment, financial or other similar activity; or (ii) a solicitation of an offer to buyany security; or (iii) any recommendation or advice in relation to any investment, financial or otherdecision. Persons considering making any investment or financial decision should contact theirqualified financial adviser. The Content may include forward looking statements, in particular, in
relation to future events, growth, future financial performance, plans, strategies, expectations, aims,prospects, competitive environment, regulation and supply and demand. Such statements containinherent risks and uncertainties and actual outcomes may differ materially from those expressed orimplied by forward looking statements. To the maximum extent permitted by law, no warranty orrepresentation including, but not limited to, accuracy or completeness (express or implied) is made inrelation to the Content, including, but not limited to, any projections or statements about the prospectsof Euroclear. Euroclear makes no commitment to update Content and expressly disclaims, to theextent lawful, liability for any errors or omissions in it. The Content is not directed at, or intended fordistribution to, or use by any person or entity where such distribution or use is restricted by law orregulation. Persons into whose possession the Content comes should inform themselves about andobserve any such restrictions. Past performance, historic financial information and/or historicdistributions should not be taken as an indication of current or future performance, results ordistributions.
The 2018 consolidated financial information included in this presentation is audited and based onEuroclear Holding SA/NV consolidated figures as of 31 December 2018. The audited consolidatedfinancial statements of Euroclear Holding SA/NV for the year ended 31 December 2018 will besubmitted for approval to the annual general meeting of shareholders of Euroclear Holding in May2018 and will be filed in accordance with applicable requirements under Belgian law.
3
Excellent 2018 performance; strategy is
delivering; increased dividend
2018 corporate evolutions delivered successfully
Governance reforms underway
Shareholder liquidity initiatives progressing
Chairman’s Introduction
4
Agenda
1. Annual Performance Update
• Revenue growth driven by strategy & market conditions
• Costs stable, as planned, despite ongoing investments
• Full year profit ahead of expectations
2. Business & Strategic Highlights
• Uniquely positioned at centre of global financial markets
• Low risk business model with AA/AA+ rating and consistent through the cycle
performance
• Well placed to take advantage of secular growth, rising interest rates and create
value for shareholders
3. Questions & Answers
Annual Performance Update
6
Excellent 2018 Performance - Highlights
Record Financial Performance
Enhanced Customer Proposition
Launched Single CSD service as gateway to Eurozone securities
Investing in core systems, enhanced resilience and meeting CSDR
requirements
Collateral: Growth and First Place in Global Custodian Tri-Party Securities
Financing survey
Strengthened Financial Position
Successfully completed debt issuances
Capital and liquidity position enhanced
Prepares Euroclear ahead of incoming regulatory needs
EPS
+21%1
Revenue growth driven by strategy & market conditions
Costs stable, as planned, despite ongoing investments
Full year profit ahead of expectations
€3.7 BillionShareholders’
Equity
1 Based on EPS for 2018 and adjusted EPS for 2017. Refer to slide 33 for further details on adjustments
7
€814m Operating Expensesstable
Record Financial Performance in 2018
Financial Highlights
• Open-architecture model and
strategic initiatives driving solid
business income growth
• USD interest rate rises resulting in 39%
yoy growth in Banking and Other
income
• Operating costs stable versus 2017,
despite ongoing regulatory-driven,
cyber security, growth investment and
cost of group restructuring
• Business Income Operating margin1
increased 3 ppts, to 25%
€ 1,079m Business Income €102.3 Earnings Per Share
+4% +21%
€m 2018 2017 Y-o-Y
Net Operating Income 1,335 1,223 9%
Business Income 1,079 1,039 4%
Interest, Banking & Other Income 256 184 39%
Operating Expenses (814) (809) -1%
Share of Results (7) (10) 32%
Operating Profit Before Impairment* 514 403 27%
Provisions 0 5
Operating Profit Before Impairment 514 408
Impairment (29) (1)
Tax (163) (171)
Net Profit 322 236 36%
*excl. Provisions
EPS (€) 102.3 84.6 21%
Note: Based on audited 2018 Euroclear Holding SA/NV consolidated figures; all full year 2018 figures are compared to the full year 2017 figures of Euroclear Plc (unless otherwise indicated).
1. Operating margin (excl. Interest, Banking & Other income) defined as (Business Income less Operating Expenses) / Business Income.
8
1,032
1,150
1,229
2016 2017 2018
196
215
230
2016 2017 20182016 2017 2018
Debt Equities
Business Income Growth Following Strong Market Activity
Across Business Drivers
Assets under Custody
€ Trillion – Yearly Average
28.427.1 28.8
Netted Transactions
Number of transactions (million)
Collateral Outstanding
€ Billion – Yearly Average
• Fixed income resilience combined
with volatility on the equity side
• Record level of transactions settled
in 2018 equivalent to €791 trillion:
approximately 10 x Global GDP
• Regulatory / industry requirements
driving a strong evolution of
collateral outstanding
9
Transaction
Volumes
31%
Equities
Value
19%
Fixed Income Value 50%
794 795814
95 113 126110 131 139
2016 2017 2018
Core Global & Emerging Markets Collateral Management
Progress on Strategic Initiatives
Business Income Growth Across Core and Growth Areas
2018 Business Income
Eurobond
and
European
assets
63%
Funds 12%
Collateral
13%
Global &
emerging
markets 12%
Core – 75%
Business Lines
Core
Global &
Emerging Markets
Collateral Management
• Launch of Single CSD access to T2S, a gateway
to Eurozone liquidity for international investors
• Continue to invest in core systems, enhance
cyber resilience and meet the requirements of
CSDR
• International ETF structure continues to gain
traction
• Strong pipeline of emerging markets who are
attracted by being ‘Euroclearable’ to facilitate
international investment
• Client feedback on collateral management
solutions highly positive
• Strong position in the OTCD business and further
expanding on Triparty repo
19%
19%
0%
9991,039
1,079
Business Lines Track Record
6%
12%
2%
Str
en
gth
en
N
etw
ork
Gro
w N
etw
ork
4% Total Growth p.a.
Market Drivers
10
• Interest rate rises in USD combined with increased
deposit balances underpinned strong cyclical growth in
Banking Income
• Interest rates in Eurozone remain negative
• Interest income up despite additional charges linked to
new liquidity lines required in light of CSDR compliance
Interest Rate Evolution
USD Rate Rises Led to Increase in Net Interest Income
102
133
163184
256
0
50
100
150
200
250
300
2014 2015 2016 2017 2018
Interest, Banking & Other Income
+39%
-0.36% -0.40% -0.40% -0.40% -0.40%
-0.40%
0.30% 0.25% 0.33%0.50%
0.71%0.50%0.52%
0.92%
1.27%
1.66%
2.15%
H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018
Average central bank's interest rate
EUR (ECB) GBP (BOE) USD (FED)
20.1 25.3 18.1 17.1 20.1Average Deposits (€bn)
Deposits Currency Split
USD
48%
EUR
27%
GBP
7%
Other
18%
11
Operating Expenses Growth Slowed in 2018
• Costs stable compared to 2017, as previously
anticipated, including those related to the
group restructuring
• Investments represent 20% of cost base and will
continue at this level
2018 Operating Expenses In-line with 2017, Despite Continued Investments
(€million)
678
722
778
809 814
2014 2015 2016 2017 2018
12
Strong balance sheet with good liquidity
• Debt Securities Issued & Funds borrowed reached€4,956 million of which €3.7 billion debt securities
raised in the group in the course of 2018
• Euroclear Investments completed a dual
tranche debt issuance of €700 million in April
2018, on top of €600 million issued in 2016
• Out of this total €1.3 billion, €900 million was
used to provide additional recovery
capacity, ahead of increasing regulatory
requirements
• Euroclear Bank established Medium TermNote and Certificate of Deposits programs
during 2018. Out of such programs, the Bank
issued a total of €3 billion equivalent. These
funds enhanced liquidity as required by
incoming regulations
• Shareholders' equity up to €3,839 million on
accumulated profit, before 2019 interim dividend
payment
Euroclear’s Strong Balance Sheet Ahead of New Regulatory Requirements
Euroclear Holding Balance Sheet (€m) 2018 2017
Cash and balances with central banks 4,536 3,583
Loans and advances 14,540 11,493
Financial Assets 7,434 5,363
Goodwill and intangible assets 992 1,012
Other assets 632 557
Total assets / Liabilities 28,134 22,008
Deposits from central banks 540 900
Deposits from banks and customers 17,944 15,986
Debt securities issued and funds borrowed 4,956 595
Shareholders' equity 3,839 3,671
Other Liabilities 855 856
13
Delivering Increasing Returns for Shareholders
€/share
Earnings per share1
1 Based on EPS for 2018 and adjusted EPS for 2017 - conservative as the 2018 EPS of 102 is not adjusted for the negative impact of an IT write-down which would have increased the EPS to an adjusted 109.
Refer to slide 33 for further details on adjustments. 2. Return on Equity is calculated as the net profit of the year divided by the average shareholder equity pre dividend distributions, as reported in the year-end
financial statements. 3. Indicative dividend. As a consequence of the group restructuring, this year the Board is not recommending to shareholders to approve the payment of a dividend at the Annual
General Meeting as part of the usual yearly profit allocation process. Instead, the Board envisages approving the payment of such a dividend in the fourth quarter of 2019 under the form of an interim
distribution, in accordance with the Belgian Companies Code and Euroclear Holding SA/NV's Articles of Association.
€/share
Dividend per share3
%
Return on equity2
78.6
87.083.7 84.6
102.3
2014 2015 2016 2017 2018
31.5
36.3 37.039.0
55.0
40% 40% 40%
52%54%
30%
40%
50%
60%
70%
80%
2014 2015 2016 2017 2018
Dividend per share
Dividend payout (DPS/Net Profit Per Share)
8.7% 8.7%
7.7%
7.5%
8.6%
2014 2015 2016 2017 2018(Indicative)
Business & Strategic Highlights
15
Business & Strategic Highlights
Expect to maintain Business Income growth trajectory and expand
operating margin over next 5 years whilst maintaining AA / AA+ rating
Low risk business model with AA/AA+ rating and consistent through
the cycle performance
Well placed to take advantage of secular growth, interest rates evolution
and create value for shareholders
Uniquely positioned at centre of global financial markets
16
Venue neutral and
open architecture
Regulated as
systemically important
market infrastructure
Global collateral and liquidity optimisation
Risk reduction
Cost & process efficiency Investment banks
Custodians
Central banks
Exchanges
CentralCounterparty
Clearing
Issuers
Central
Securities
Depositories
A Virtuous Circle of Value that Creates a Self-
Reinforcing Global Collateral and Liquidity Hub
Open model, positioned at the centre of
the global financial market
ecosystem
Unique Position
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Uniquely Positioned at the Centre of the Global Post-
trade Market
1. Industry positioning
A trusted leader in post-
trade services
Creating a global network
with strong industry
positions
Facilitating efficient
financing in the capital
markets
• Systemically important infrastructure, at centre of global markets
• Global provider of asset servicing, transaction settlement and collateral management across all asset types
• Single access point to post-trade services
• International Central Securities Depository (€13tn of assets) and 6 Central Securities Depositories (€15tn of assets)
• Focus on risk reduction while increasing process efficiency, optimising collateral mobility, and providing access to liquidity
• Operating understrong regulatoryoversight
• Supporting financial market participants in meeting evolving
regulatory requirements
• Open architecture approach serving global network of issuers, intermediaries and investors
• International client base includes:
2,000 financial institutions
100+ central banks
• 54% of clients headquartered in Europe, 32% in Americas and 14% in Asia
Unique Position
Connecting
2,000financial institutions
€ 791tnturnover
50%
European capital market securities1
60%
Eurobond holdings1
Connected to
50+major markets
€ 28.2tn assets held in custody
230m transactions processed
€ 1.2tn collateral posted
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Low Risk Business Model with AA / AA+ Rating
1. Adjusted for Interim dividend expected in 2019, Tier 1 and Total solvency ratio should reached respectively 36.3% and 40.4% in Euroclear SA/NV. Eurobank figures are reported post profit allocation.
Importance of AA / AA+ RatingStrong Capital Position (2018)
Low Leverage
S&PAA
FitchAA+
1.5x
Euroclear
• Rating is a key element for our clients including such as Central
Banks
• Consistently strong and stable credit ratings
• Low operational, credit and market risk profile:
— No credit losses and de minimis operational losses through
the cycle
— >99% of credit extended to clients on a very short term,
secured basis
— Committed to business continuity and operational risk
management
Combination of high credit rating, low risk profile and solid capital ratio are critical to resilient and sustainable performance
2018 Net Debt / EBITDA
Low Risk
Debt issued with the sole
purpose to meet recovery
regulatory requirement
39.3% 42.0%43.4% 46.9%
Consolidated Euroclear SA/NV¹ Euroclear Bank
Tier 1 Ratio Total Solvency Ratio
• Strong ICAAP framework set at 99.98% confidence level
• Capital above ICAAP threshold providing additional buffer
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Eurobond
and
European
assets
63%
Funds 12%
Collateral
13%
Global &
emerging
markets
12%
Diversified and Resilient Business Model with Strong
Performance Through the Cycle
1. Revenues, concerns securities depot.
Custodians
49%Investment
banks 42%
Central
banks 9%
EUR 64%
USD 14%
GBP 13%
Other 9%
Market DriversBusiness lines
Client segments Currency1
Consistent Business Income GrowthDiversified Business Model (2018 Business Income Split)
Equities
Value
19%
Fixed Income
Value
50%
Transaction
Volumes
31%
Low Risk
772
842 892 901 893
938
997 999 1,039
1,079
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
20
Well Placed to Take Advantage of Secular Growth
Trends and Interest Rates
Strengthen
Network
Reshape
NetworkGrow Network
• Safe, reliable,
independent market
infrastructure
• Well-positioned for a
changing regulatory
environment
• Ability to meet evolving
client needs
• Investment in cyber
• Bringing international
standards to local markets
• Connects issuers to large
international investor pool
• Addresses demand for
emerging markets
exposure
• Opportunities to
accelerate with emerging
technologies
• Ability to transform data
into valuable market
insights
• Potential to drive
operational efficiency
and processing power
ValueCreation
A B C
Eurobond, Euro assets and funds
Global & emerging markets Collateral Management Data & insights
• Regulation driving
demand for collateral
efficiency
• DTCC partnership
connects two important
global pools
Revenue Mix Outlook
Growth Outlook
~25%~75%
High Single Digit GrowthEuropean GDP
New Opportunity
Customer Focus Supporting Customers Growth in Financial Markets
Proven Customer Retention
Growing Customers Share of Wallet
Attracting New Customers
Client Proximity as a Driver of Steady Growth
21
Funds 12%
Eurobond
and
European
assets
63%
Plans to Strengthen Existing Network to Deliver
Growth in Core Business
Current Revenue Growth Drivers Positioning
Eurobonds and
EuropeanAssets
GDP led
• Cost pressure on industry
participants
• Robust growth driven by European and
global macro outlook
• Strong and stable position across equities
and fixed income
• Single-point of access with open
architecture model
• Ability to provide transparency and safety
in-line with evolving regulations
• Meet growing demand from clients for
automated, low cost solutions
Funds
GDP led
Fragmented market looking for
end-to-end efficiency
Increasing Pension Fund
growth
Fund distributors desire to
target global investor base
• Unregulated competition
• Cost pressure on industry
participants
• Provide centralised infrastructure model in
fragmented and inefficient industry
— New added value services
— New geographies
— Connectivity
• Industry growth driven by pension needs
• Benefits from open architecture model
• Unlock potential from supporting custodians’
evolving needs
Strengthen
Network
ValueCreation
22
Global &
emerging
markets 12%
Collateral
13%
With Increasing Contribution to Growth from New
Markets
Current Revenue Growth Drivers Positioning
Global and Emerging Markets
Emerging markets GDP
growth
Pipeline of new Euroclear
markets
• Geopolitical uncertainty
• Targeting higher growth markets
• Benefit from strong track record
• Global footprint, including Asia operations
hub
Collateral Management
Regulatory requirements
Increased complexity
drives industry need for
efficient solutions
Opportunity to expand
outside Europe
• Market fragmentation
reduces collateral
mobility
• Regulatory and industry requirements driving
demand for high quality collateral and
global collateral efficiency
• Growth in OTC collateral
• Customer desires to mobilise collateral across
geographic silos
Grow
Network
ValueCreation
23
Growth Drivers Positioning
Technology
• Opportunity to enhance cost efficiency
and quality of service
• Potential to deliver significant benefits in processing
• Currently at exploratory phase
• Potential to improve quality of service and offering through APIs and cloud based solutions
• Emerging technologies could accelerate operational efficiency
• Currently testing Robotics and Artificial Intelligence (AI) in Operations
Data &
Insights
Focus on transparency
Ability to bring insights from data
• Currently at exploratory phase
• Unlock potential in vast amounts of data which Euroclear currently manages
Reshape
Network
While Developing our Business with Data, Analytics
Emerging Technologies and InsightsValueCreation
24
Robust Strategic Plan
to Deliver Efficiency Improvements
(1) Excludes Interest and Banking income.
• Margin expansion driven by cost base
stabilisation
• Cost base expected to grow at inflation
• Efficiency initiatives and investments
expected to deliver margin expansion
• Stable level of investment at 20% of
total cost base going forward
ValueCreation
Investments in regulatory
infrastructure & cyber
security elevated cost base
Costs plateau in 2018,
leading to Business Income
Margin Improvement
Maintain Slower
Expense Growth
Business Income
Margin expansion
Maintain Business
Income(1) Growth
Trajectory +4%
Investment requirements led to
Margin Compression
2013 2017 2018 2023
Business
Income
Costs
Delivery of Strategic Plan Evidenced
in 2018
Expect to Further Improve
Operating Margin
Low to
Mid Thirties
26%
25%
22%Business
Income
Margin
Consistent Business Income
Growth Trajectory
25
Additional Revenues from Net Interest Income
1. Based on average deposit balance 2. Based on average yearly rate
Key DriversInterest and Banking Income
• Rates: Interest income cyclical in nature and highly correlated with interest rates
• Volumes: Larger balance sheet increases potential for Interest and Banking income, albeit clients are expected to manage closely their deposits in a higher interest rate environment
2007Euroclear Bank
Deposits – €7.5bn
2018Euroclear Bank
Deposits – €20.1bn
• +25bps USD increase impacts interest income by c.+€25m
• +25bps EUR increase impacts interest income by c.+€12m
Interest Rate Sensitivity
2.7x Increase
ValueCreation
Deposits Currency Split
USD
48%
EUR
27%
GBP
7%
Other
18%
Interest Rates
0
50
100
150
200
250
300
350
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Interest and Banking Income (€m) EB Deposit Balance (€bn)¹
(1.0)%
0.0 %
1.0 %
2.0 %
3.0 %
4.0 %
5.0 %
6.0 %
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
USA - Fed Funds Rate (%)²
GBP - Bank Rate (%)²
EUR - Deposit Rate (%)²
26
Resilient Historical Delivery and Dividend Growth
1. Indicative dividend. As a consequence of the group restructuring, this year the Board is not recommending to shareholders to approve the payment of a dividend at the Annual General Meeting as part of the
usual yearly profit allocation process. Instead, the Board envisages approving the payment of such a dividend in the fourth quarter of 2019 under the form of an interim distribution, in accordance with the
Belgian Companies Code and Euroclear Holding SA/NV's Articles of Association.
Earnings Per Share Dividend Per Share
31.536.3 37.0
39.0
55.040% 40% 40%
52%54%
2014 2015 2016 2017 2018
Dividend per share
Dividend payout ratio (DPS/Net Profit Per Share)
€/share€/share
78.6
87.083.7 84.6
102.3
2014 2015 2016 2017 2018 1
ValueCreation
(Indicative)
27
Expect to be Able to Continue to Deliver Attractive
Growth, Whilst Retaining AA / AA+ Rating
1. Excludes Interest and Banking income.
Business
income
Interest,
Banking and
Other Income
Business
Income
Operating
margin1
2018 5-Yr growth
€1,079m
€256m
25%
Maintain Historic
Growth Trajectory
Driven by
Balances and
Interest Rates
Low to Mid
Thirties
Rating AA / AA+Maintain
AA/ AA+ Rating
Questions & Answers
Appendix
30
Euroclear Holds a Unique Position in Financial Market
Infrastructure
.1 2018A y-o-y operating income growth. 2 2018A administrative expenses expected to be flat on 2017A. 3 2018A total payout ratio of 54% as an indicative proposal. As a consequence of the group restructuring, this year the Board is not
recommending to shareholders to approve the payment of a dividend at the Annual General Meeting as part of the usual yearly profit allocation process. Instead, the Board envisages approving the payment of such a dividend in the fourth
quarter of 2019 under the form of an interim distribution, in accordance with the Belgian Companies Code and Euroclear Holding SA/NV's Articles of Association.
Strategic and financial positioning as well as business outlook Makes Euroclear an attractive investment opportunity for a number of different constituencies
60 % €28.2trn
42 %
Bank:
AA/AA+
Investments:
AA-/AA
Eurobond
HoldingsAuC
CET1
Rating
Collateral management solutions
Funds servicing
Global Emerging Markets (LatAm, China)
Data and information solutions
A leader in global post-trade industry with
international client franchise
Well-positioned for future growth
Strong top-line, bottom-line and cash generation financial
profile
Low-risk and resilient balance sheet
underpinning business
6 CSDs serving 7 markets + 1 ICSD
Strengthen network
Expand growth initiatives
Explore innovation
Ability to further enhance efficiencies
and operations
Supported by robust levels of capital and
cash
230m
Transactions
Processed
€791trn
Turnover
Disciplined risk management
Limited leverage
Strong liquidity position
+ 9 %Growth
Stable
~ 54 % of Post-Tax
Profit
Operating Income¹ Expenses² Distribution³
31
Euroclear Leadership Team
Bernard Frenay
Chief Financial Officer
Frederic Hannequart
Chief Business Officer
Lieve Mostrey
Chief Executive Officer
Yves Dupuy
Chief Information Officer
Peter Sneyers
Chief Risk Officer
Marc Antoine Autheman
Chairman
32
Market and Industry Trends Provide Tailwinds for Growth
Trend Description
Regulations• ECB harmonisation agenda• Push for collateralisation of non-cleared OTC derivatives• Other ongoing regulatory initiatives (e.g. CRD IV, MiFID II, SDRT, EMIR)
Economic
drivers
• End of quantitative easing will reduce liquidity in EU financial
markets and increase demand for HQLA for collateral purposes
• Increased demand from investors for emerging market exposure• Low interest rates / higher growth in EU
Cost pressure
from clients
• Regulatory burden on clients (e.g. capital constraints)• Need for global collateral efficiency• Complexity requiring further automation
Issuers• Emerging market issuers increasingly interested in tapping
international investor pool to reduce borrowing costs
Demand for
transparency
and data
• MiFID II and Shareholder Rights Directive to increase transparency• Demand for data to increase liquidity and support business decisions
Emerging
technologies
• Cloud and API• Robotics and AI• Crypto currencies• Distributed ledger technology
Risk reduction
Cost and process
efficiency
Global collateral and
liquidity optimisation
33
Reported and Adjusted EPS Reconciliation
2014 2015 2016 2017 2018
Net Profit 281 293 298 236.0 322.1
Adjustments
License Termination - - (28.0) - -
DTA - - - 33.6 -
Adjusted Net Profit 281 293 270 269.6 322.1
Avg. Number of Shares 3.6 3.4 3.2 3.2 3.1
Adjusted EPS 79 87 84 84.6 102.3
34
Euroclear Investments – Summary Income Statement
2018 2017 Y-o-Y
Net Operating Income 134.0 2.6 5060%
Net Interest Income -2.4 1.7 -241%
Other Income 0.2 0.9 -76%
Div idend Income 136.2 0.0 n.a.
Operating Expenses (0.9) (1.7) -45%
Share of Results 0.0 0.0 n.a.
Operating profit before Impairment* 133.1 0.9 14678%
Prov isions 0.0 0.0 n.a.
Operating profit before Impairment 133 0.9
Impairment (56) 0.0 n.a.
Tax 15 (0.3) n.a.
Net Profit 92.4 0.6 14927%
*excl. Prov isions
(€ m)
35
Euroclear Investments – Summary Balance Sheet
(€ million) 2018 2017Variance
Actuals
Loans & Advances 71.2 323.3 -78%
Intercompany Loans 980.5 247.9 296%
Available-for-sale financial assets 173.8 0.0 n.a.
Current & Deferred income tax assets 6.9 0.0 68640%
Other Assets & Accruals 0.3 0.2 57%
Property Plant & Equipement 0.0 0.0 40%
Participations in group companies 637.2 637.2 0%
Total Assets 1,869.9 1,208.6 55%
Long Term Debt -1,300.8 -595.1 119%
Intercompany Borrowings 0.0 0.0 n.a.
Financial Liabilities held for trading 0.0 0.0 n.a.
Income & deferred tax liabilities 0.0 0.0 -100%
Other liabilities & Accruals 0.3 -0.3 -199%
Shareholders' Equity -569.4 -613.2 -7%
Total Liabilities -1,869.9 -1,208.6 55%
36
Euroclear Bank - Summary Income Statement
2018 2017 Y-o-Y
Net Operating Income 944 857 10%
Business Income 699 651 7%
Interest & Banking Income 239 161 48%
Other & Group Income 6 45 -86%
Operating Expenses -514 -513 0%
Share of Results 0 0 0%
Operating profit before Impairment* 431 345 25%
Prov isions 0 0
Operating profit before Impairment 431 345
Impairment (4) (4)
Tax (127) (103)
Net Profit 299 238 26%
*excl. Prov isions
(€ m)
37
Euroclear Bank – Summary Balance Sheet
€ million
end of year balance
Loans and advnaces to banks and customers 18,638 14,112 32%
Financial assets 6,521 5,076 28%
Goodwill and (in)tangible fixed assets 5 5 0%
Other assets/accrued income 242 220 10%
Total assets 25,406 19,413 31%
Deposits by banks and customers accounts 18,491 16,937 9%
Debt instruments issued 4,258 - n.a.
Other libilities/provisions 560 547 2%
Intercompany Borrowings - 200 -100%
Subordinated liabilities 202 - n.a.
Shareholders' equity 1,894 1,729 10%
Total liabilities and shareholders' equity 25,406 19,413 31%
2018 2017 %
38
Disclaimer
© 2018 Euroclear SA/NV, 1 Boulevard du Roi Albert II, 1210 Brussels, Belgium – Tel: +32 (0)2 326 1211 –RPM Brussels number 0423 747 369. Euroclear is the marketing name for the Euroclear System, EuroclearHolding SA/NV, Euroclear SA/NV and their affiliates. All rights reserved. The information and materialscontained in this document are protected by intellectual property or other proprietary rights. Allinformation contained herein is provided for information purposes only and does not constitute anyrecommendation, offer or invitation to engage in any investment, financial or other activity. We
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