Euronext's diversified revenue sources (1)

Listing
Listing fees consist of fees paid by issuers of securities when their securities are first admitted to listing on the cash market to raise capital, annual fees paid by companies whose financial instruments are already listed, and other fees derived from financial operations or tender offers. Revenues from Listing amounted of €43.3 million in 2004.

€43.3 m

Derivatives trading
Income from Derivatives trading consists of fixed per-contract fees charged for the execution of trades on the derivatives markets. The main products in this market are equity options, index options, interest-rate futures and options, and commodity derivatives. Revenues from Derivatives trading amounted of €324.9 million in 2004, of which €317.5 million from Derivatives trading and €7.4 million from clearing fee retrocession.

€324.9 m

Information Services
Euronext charges financial professionals, including data vendors such as Reuters and Bloomberg, for the use of its market data. Income from Information Services includes fixed fees and variable charges based on the number of terminals that use Euronext data. Revenues from Information Services amounted of €87.3 million in 2004.

€87.3 m

Sale of software
Euronext's consolidated financial statements include the revenues of GL TRADE, the leading international provider of access solutions for market participants, and revenues generated by Euronext.liffe Market Solutions (Euronext.liffe's technology division), which is responsible for the development and sale of the LIFFE CONNECT® trading platform. Revenues from Sale of software amounted of €186 million in 2004.

€186 m

Settlement and custody
Fees charged for Settlement and custody relate primarily to securities settlement via Euronext Brussels (CIK) and Euronext Lisbon (Interbolsa). Revenues from Settlement and custody amounted of €33.1 million in 2004.

€33.1 m

(1) Including €22.5 million of Other income.
(2) This fee calculation was changed as of 1 February 2005 (see section 3.2.1.2).

Company profile

Euronext N.V. is the first genuinely cross-border exchange organization in Europe. It provides services for regulated stock and derivatives markets in Belgium, France, the Netherlands and Portugal, as well as in the UK (derivatives only). It is Europe's leading stock exchange based on trading volumes on the central order book.

Euronext is integrating its markets across Europe to provide users with a single market that is very broad, highly liquid and extremely cost-effective. In 2004, it completed a four-year project in which it migrated its markets to harmonized IT platforms for cash trading (NSC), derivatives (LIFFE CONNECT®) and clearing. Euronext's development and integration model generates synergies by incorporating the individual strengths and assets of each local market, proving that the most successful way to merge European exchanges is to apply global vision at a local level.

Euronext provides financial market participants with a comprehensive range of integrated services to meet their needs. These services range from facilitating public offerings and providing trading facilities for cash and derivatives products to supplying market data. Euronext's users also benefit from clearing services provided by LCH.Clearnet, and settlement and custody through local CSDs (central securities depositories), Group subsidiaries in Belgium and Portugal, and its partnership with Euroclear. The sale of software and IT solutions complete Euronext's range of services.

Euronext's customers include:
- members and financial institutions that have direct access to trading on its markets;
- companies whose securities are listed on its markets, enabling them to raise capital;
- institutional and retail investors who trade on Euronext's markets;
- other organizations that use Euronext's technologies and services;
- users of financial information.

Euronext has diversified sources of revenues, which protect it against fluctuations in the financial markets. Developments such as the acquisition of LIFFE (the London-based derivatives market) in 2002 and the merger of Euronext's subsidiary Clearnet with the London Clearing House in 2003 have made the Group's derivatives markets and European clearing activities more efficient, providing benefits for the entire European financial community.