Record Year for Euroclear Driven by Strategic Initiatives and Positive Market Conditions

Euroclear reports results for the year ending 31 December 2018

Euroclear will hold a presentation for investors today, March 11, with a video streaming service available on https://www.euroclear.com .

Financial Highlights

– Operating income increased 9%, compared to FY 2017, to EUR 1335 million

– Business Income rose 4% to EUR 1079 million as our open architecture

model and strategic initiatives captured the benefit of positive market

conditions

– Banking and Other Income increased by 39% to EUR 256 million, boosted by

higher US interest rates

– Operating costs were broadly stable at EUR 814 million as continued

investment in our customer proposition and regulatory-driven initiatives

were offset by tight control of costs

– Net profit was up 36% to EUR 322 million

– EPS was up 21% to EUR 102.3 per share, compared to EUR 84.6 per share in

2017

– Board indicates an interim dividend of EUR 55 per share. Dividend

expected to be paid in fourth quarter 2019 as a consequence of

successful corporate reorganisation

Key Operating Metrics

– Record number of netted transactions settled in the Euroclear group

equivalent to EUR 791 trillion by value, an increase of 8% compared to

2017, and approximately 10x Global GDP

– The average value of securities held on behalf of Euroclear clients

continued to grow in 2018 to EUR 28.8 trillion compared to EUR 28.4

trillion in 2017

– Euroclear’s Collateral Highway mobilised a yearly average of EUR 1.2

trillion, up 7%

– Number of fund orders routed by Euroclear increased 4% to 10.9 million

in 2018

Strategic Update

Remain focused on delivering our three strategic objectives to enhance our customer proposition: strengthening our network, growing our network and reshaping our network.

Highlights from 2018:

– Launch of Single CSD access to the ECB’s T2S platform, providing an

efficient gateway to Eurozone liquidity for international investors

– Continuing to invest in core systems, enhance cyber resilience and meet

the requirements of incoming regulations, including CSDR

– Client feedback on collateral management solutions remains positive and

Euroclear was awarded top honours in the Global Custodian Tri-Party

Securities Financing survey

– Strong pipeline of emerging markets who are attracted to

become ‘Euroclearable’ to facilitate international investment

– Exploring new opportunities to provide data services that support

clients in optimising collateral and liquidity

Corporate Evolutions

– Successfully completed the relocation of the ultimate holding company to

Belgium, following almost unanimous approval from our shareholders. This

guarantees that the Company’s legal seat is located inside the European

Union

– Shareholders also approved amendments to the articles of association,

meaning the Company now has a single class of ordinary shares

– The Board recognises the need to provide a long-term liquidity solution

available to all shareholders and is reviewing options to ensure this is

completed in an orderly manner

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