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BRUSSELS, April 27, 2021 /PRNewswire/ —

Business Income growth up 12%, offsetting reduction of Interest Income

— Business Income rose 12% to EUR 358 million driven by strategic progress, sustained settlement activity, higher equity valuations and new issuance by governments and corporations — Banking and Other Income decreased 61% to EUR 24 million as expected, given the lower interest rate environment compared to Q1 2020 — Resulting total Q1 revenues of EUR 382 million were flat year-on-year, despite the reduction of interest-related income — Operating costs were up 2% to EUR 218 million, in line with expectations, despite the strong growth in business activity — Business Income Operating Margin, which excludes the effect of interest income, up 5.7 percentage points to 39.2%, considerably above our strategic target range of mid 30% — EBITDA margin of 49.1% is higher than FY 2020 average of 46.6%, however remains down 1.2 percentage points year-on-year due to pre-Covid-19 prior year Q1 comparator for interest income — Net profit was down 4% to EUR 123 million — Balance sheet and liquidity position remains strong with AA/AA+ ratings confirmed post MFEX acquisition — Outlook: given the strong business income growth, we expect full year 2021 financial performance at similar or higher level compared to 2020

Operating metrics reach very high levels

— Settlement volumes increased by 6% year-on-year to 76 million netted transactions processed by Euroclear’s resilient infrastructure — Assets under Custody increased 16% to EUR 34.1 trillion, boosted by equity market recovery, combined with new issuances and business strategy progress. Double-digit increases in strategic growth areas:- Fund assets under custody reached EUR 2.7 trillion, growth of 28% reflecting the appeal of Euroclear FundsPlace- Attractiveness of Euroclearability to international issuers and investors supported 19% increase in Global Reach assets under custody to EUR 1.4 trillion- Collateral outstanding increased 12% year on year with Euroclear’s Collateral Highway mobilising EUR 1.7 trillion
Progressing strategic plans

Euroclear continues to progress its strategy to strengthen, grow and reshape its global network

— Acquisition of MFEX group- Acquired MFEX Group, a leading global digital fund distribution platform, creating a new funds market utility and leading global provider of fund services — Strengthening our network- Successfully completed the migration of Irish corporate securities from Euroclear UK & Ireland to Euroclear Bank as Issuer CSD- Launched a new settlement model in the UK allowing for continued central bank money settlement in Euros — Growing our network- Euroclear Bank partnered with the Singapore Exchange to launch the Orchid bond structure combining domestic bond issuance with global distribution channels- The Bank of China became the first issuer to utilise Euroclear Bank’s recently launched Yulan bond structure — Reshaping our network- Rolling out InvestorInsight solution for issuers, including shareholder identification services to support issuers’ efforts to enhance corporate governance
Our business continuity plan continues to work well, supporting our customers as well as our colleagues. Almost everyone continues to work remotely as protecting the health and safety of our people remains our priority. The group intends to explore new ways of working, including a hybrid model combining office presence and remote working in the future.

Lieve Mostrey, Chief Executive Officer, said: “We have seen a strong start to the year, a testament to the resilience of our team and robustness of our business model as well the continuation of very high levels of activity across our markets. We remain focused on delivering on our long term strategic priorities for all our stakeholders.”

Abridged Financial Statements

Euroclear Holding

Q1 2020 Q1 2021 vs

(EUR m) 2020

Operating Income 383 382 0 0%

Business Income 321 358 37 11.7%

Interests, banking & other inc 62 24 -38 -61%

Operating Expenses -213 -218 -4 -2.1%

Operating Profit before impairment 169 164 -5 -3%

Impairment -1 0 0

Pre tax profit 169 164 -5 -3%

Tax -41 -41 0 0%

Net profit 127 123 -5 -4%

EPS 40.4 39.0 -4%

Business income operating margin 33.5% 39.2%

EBITDA margin (EBITDA/op.Inc) 50.3% 49.1%

Operating leverage 9.6%

1st Var 1st quarter 2021- quarter 2021 2020 2020

(in EUR million)

Euroclear Bank Income Statement

Net interest income 26.0 -45.2 71.2

Net fee and commission income 221.9 22.6 199.3

Other income 3.3 3.8 -0.5

Total operating income 251.2 -18.8 270.0

Administrative expenses (147.5) (11.7) (135.8)

Operating profit before impairment and taxation 103.7 -30.5 134.2

Result for the period 77.4 -22.3 99.7

Euroclear Bank Balance Sheet

Shareholders’ equity 1,883.0 -98.3 1,981.2

Long term debt 5,553.7 -175.3 5,729.0

Total assets 29,401.8 -3,182.1 32,583.9

Key performance ratios

Business Income Operating Margin (%) 36% 1% 35%

CET1 ratio (%)* 41% n/a 36%

* Figures for Q1 2021 are based on estimation

Euroclear Investments Income Statement

Dividend 270.0 270.0 0.0

Net gains/(losses) on non trading financial assets at FVPL (12.0) 376.9 (388.9)

Other income 0.9 -0.1 1.1

Total operating income 258.9 646.7 (387.8)

Administrative expenses (0.2) (0.0) (0.2)

Operating profit after impairment and before taxation 258.7 646.7 (388.0)

Result for the period 261.4 552.6 (291.3)

Euroclear Investments Balance Sheet

Shareholders’ equity 781.1 309.8 471.3

Long term debt 1,308.7 1.1 1,307.5

Total assets of which 2,136.3 356.8 1,779.5

Loans and advances 78.6 21.3 57.3

Available-for-sale financial assets 311.4 64.7 246.6

Intercompany loans 1,164.8 376.5 788.3

About Euroclear

Euroclear group is the financial industry’s trusted provider of post trade services. Euroclear provides settlement and custody of domestic and cross- border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.

The Euroclear group includes Euroclear Bank – which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s – as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 897 trillion in securities transactions in 2020, representing 276 million domestic and cross-border transactions, and held EUR 32.8 trillion in assets for clients by end 2020. For more information about Euroclear, please visit www.euroclear.com.

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CONTACT: Media contacts: Craig MacDonald, +44 (0)207 849 0315, craig.macdonald@euroclear.com; Sabine Leclercq, +32 473 33 08 33, sabine.leclercq@euroclear.com

Web site: https://www.euroclear.com/

ANP