Euroclear group delivers another record year

Continued strategic progress while navigating an exceptional operating environment

Results for the Year Ending 31 December 2022

HIGHLIGHTS

RECORD PERFORMANCE IN AN EXCEPTIONAL OPERATING ENVIRONMENT

* Euroclear delivered a record business and financial performance in 2022, demonstrating its resilience against a challenging backdrop.
* In 2022, both equity and fixed-income valuations declined for the first time since 1969, with high levels of volatility, lower equity volumes, and lower funds market performance.
* High levels of inflation led to rising interest rates across major international markets and increased expense levels.

NEW STRATEGIC VISION WITH AMBITIOUS TARGETS TO GROW STAKEHOLDER VALUE

* Euroclear defined its corporate purpose as: „_We_ _innovate to bring safety, efficiency, and connections to financial markets for sustainable economic growth_.“
* Set out a long-term vision to become a digital and data-enabled financial market infrastructure: an open, shared platform providing services to all market players.
* Launched a new strategy with core client focus, while further developing ESG, data and digital capabilities, as well as expanding global business.
* Strategy is expected to further diversify the business model and generate value for clients, employees, shareholders, and society.

STRONG UNDERLYING BUSINESS AND FINANCIAL PERFORMANCE

* Business income (which is the income generated by fees) grew by 5% to EUR 1,607 million reflecting the resilience of the subscription-like model. Rising interest rates enhanced revenues generated through interest income, adding to the resilience of the model. Excluding earnings related to Russia sanctions, interest income rose by 289% to EUR 348 million.
* Total operating income grew by 21% underlying to EUR 1,955 million.
* Underlying operating expenses increased by 15% to EUR 1,133 million, reflecting inflationary pressures and increased investment to both implement the strategy and increase further business resilience.

IMPLICATIONS OF SANCTIONS RELATED TO RUSSIAN INVASION OF UKRAINE

* Resulted in market-wide application of international sanctions related to Russia, and as a financial market infrastructure Euroclear complied with those sanctions.
* Co-operating with clients and other involved stakeholders to address market challenges that Russian countermeasures continue to impose.
* Despite a material growth in Euroclear Banks balance sheet and additional interest income, normal business operations have been maintained.
* Euroclear remains prudent in its management of the sanctions and their implications. Russia sanction-related earnings are segregated from underlying performance and are not distributed while uncertainties persist.

GROWING SHAREHOLDER RETURNS THROUGH UNDERLYING BUSINESS PERFORMANCE

* Underlying EPS increased by 30% to EUR 191.7 per share, reflecting growth in net profit after adjusting for results related to the implementation of international sanctions.
* Proposed dividend per share of EUR 115.5, increased by 31%, maintaining the payout ratio at 60% of the underlying earnings, in line with last year.

FINANCIAL SUMMARY

Euroclear delivered a record financial performance in 2022. The underlying results benefited from continued delivery on the groups strategy and its diversified, resilient business model.

The group also reported higher interest earnings due to rising interest rates on cash balances. Cash balances increased materially as a consequence of the international sanctions on Russia.

Full year 2022 net profit increased 162% to EUR 1,201 million, of which EUR 603 million resulted from the underlying business performance.

Contact:
Craig MacDonald,
craig.macdonald@euroclear.com,
+44 207 849 0315

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