Euronext - 2019 Universal Registration Document

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CONTENTS	2
INTEGRATED PRESENTATION	4
1. PRESENTATION OF THE GROUP	15
1.1 Company Profile	16
1.1.1 HISTORY	17
1.1.2 AMBITION	17
1.1.3 BUSINESS ENVIRONMENT	18
1.2 Strategy: “Let’s grow together 2022” Strategic Plan	19
1.2.1 “LET’S GROW TOGETHER 2022”, MAPPING PATH TO BUILD THE LEADING PAN-EUROPEAN MARKET INFRASTRUCTURE	19
1.2.2 UPDATE IN 2019	20
1.2.3 STRATEGIC TARGETS AND PROSPECTS IN 2020	20
1.3 Description of the Business	21
1.3.1 BUSINESS OVERVIEW	21
1.3.2 STRENGTHS	22
1.3.3 LISTING	23
1.3.4 CASH, DERIVATIVES AND SPOT FX MARKETS	27
1.3.5 ADVANCED DATA SERVICES	33
1.3.6 POST TRADE	35
1.3.7 EURONEXT TECHNOLOGY SOLUTIONS & OTHER	38
1.4 Regulation	40
1.4.1 OVERVIEW	40
1.4.2 EUROPEAN REGULATION	40
1.4.3 OWNERSHIP LIMITATIONS AND ADDITIONAL NOTIFICATION REQUIREMENTS	42
2. RISK MANAGEMENT & CONTROL STRUCTURE	45
2.1 Risk Factors	46
STRATEGIC	46
OPERATIONAL RISKS	50
COMPLIANCE RISK	53
FINANCIAL RISK	54
2.2 Control Structure	55
RISK APPROACH AND INTERNAL CONTROL OBJECTIVES	55
ERM FRAMEWORK	55
ERM FRAMEWORK GOVERNANCE	56
2.1.1 SECOND LINE OF DEFENCE	57
2.1.2 INTERNAL AUDIT – THIRD LINE OF DEFENSE	59
3. EURONEXT, A SUSTAINABLE EXCHANGE	61
3.1 Value Creation by Euronext	62
3.2 Euronext’s Five ESG Impact Areas and the Sustainable Development Goals	66
3.2.1 OUR MARKETS	66
3.2.2 OUR PARTNERS	74
3.2.3 OUR ENVIRONMENT	79
3.2.4 OUR PEOPLE	83
3.2.5 OUR SOCIETY	91
3.3 ESG Risks Considerations	96
4. CORPORATE GOVERNANCE	99
4.1 Dutch Corporate Governance Code, “Comply or Explain”	100
4.2 Management Structure	101
4.2.1 GENERAL INFORMATION	101
4.2.2 SUPERVISORY BOARD	102
4.2.3 MANAGING BOARD	107
4.3 Report of the Supervisory Board	114
4.3.1 MEETINGS	114
4.3.2 SUPERVISORY BOARD ATTENDANCE RECORD	114
4.3.3 SUPERVISORY BOARD ACTIVITIES	115
4.3.4 BOARD EVALUATION	115
4.3.5 REPORT AUDIT COMMITTEE	115
4.3.6 REPORT REMUNERATION COMMITTEE	116
4.3.7 REPORT NOMINATION AND GOVERNANCE COMMITTEE	116
4.3.8 FINANCIAL STATEMENTS	116
4.4 Remuneration Report	116
4.4.1 REMUNERATION PRINCIPLES AND COMPONENTS	116
4.4.2 2019 REMUNERATION REPORT	118
5. SELECTED HISTORICAL CONSOLIDATED FINANCIAL INFORMATION AND OTHER FINANCIAL INFORMATION	129
6. GENERAL DESCRIPTION OF THE COMPANY AND ITS SHARE CAPITAL	135
6.1 Legal Information on the Company	136
6.1.1 GENERAL	136
6.1.2 CORPORATE OBJECTS	136
6.2 Share Capital	136
6.2.1 AUTHORISED AND ISSUED SHARE CAPITAL	136
6.2.2 ISSUE OF SHARES	136
6.2.3 PRE-EMPTION RIGHTS	137
6.2.4 ACQUISITION OF SHARES IN EURONEXT’S CAPITAL	137
6.2.5 REDUCTION OF SHARE CAPITAL	137
6.3 Shareholder Structure	138
6.4 Share Classes and Major Shareholders	138
6.4.1 REFERENCE SHAREHOLDERS	138
6.4.2 MAJOR SHAREHOLDINGS	140
6.5 General Meeting of Shareholders and Voting Rights	141
6.6 Anti-Takeover Provisions	142
6.7 Obligations of Shareholders and Members of the Managing Board to Disclose Holdings	142
6.8 Short Positions	143
6.9 Market Abuse Regime	143
6.10 Transparency Directive	144
6.11 Dutch Financial Reporting Supervision Act	144
6.12 Dividends and Other Distributions	145
6.13 2020 Financial Calendar	145
7. OPERATING AND FINANCIAL REVIEW	147
7.1 Overview	148
7.1.1 DEFINITIONS	148
7.1.2 ESTABLISHMENT OF EURONEXT AS AN INDEPENDENT, PUBLICLY TRADED COMPANY	148
7.1.3 SOURCES OF REVENUES	149
7.1.4 COMPONENTS OF EXPENSES	150
7.1.5 KEY FAC TORS AFFECTING BUSINESSES AND RESULTS OF OPERATIONS	151
7.1.6 GOODWILL	155
7.1.7 FINANCIAL AND TRADING POSITION	155
7.1.8 RESULTS OF OPERATIONS	156
7.1.9 CASH FLOW	163
7.1.10 FACILITIES AG REEMENT AND BONDS	163
7.1.11 CONTRACTUAL OBLIGATIONS	165
7.1.12 OFF-BALANCE SHEET ARRANGEMENTS	165
7.1.13 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	165
7.1.14 SIGNIFICANT ACCOUNTING POLICIES	168
7.1.15 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS	168
7.2 Material contracts and related party transactions	170
7.2.1 MATERIAL CONTRACTS	170
7.2.2 RELATED PARTY TRANSACTIONS	170
7.3 Legal Proceedings	172
7.3.1 EURONEXT AMSTERDAM PENSION FUND	172
7.4 Insurance	173
7.5 Liquidity and Capital Resources	174
7.5.1 LIQUIDITY	174
7.5.2 CONSOLIDATED REGULATORY CAPITAL REQUIREMENTS	174
7.6 Tangible Fixed Assets	176
7.6.1 PRINCIPAL PROPERTIES	176
8. FINANCIAL STATEMENTS	179
8.1 Consolidated Statement of Profit or Loss	180
8.2 Consolidated Statement of Comprehensive Income	181
8.3 Consolidated Balance Sheet	182
8.4 Consolidated Statement of Cash Flows	183
8.5 Consolidated Statement of Changes in Equity	184
Notes to the Consolidated Financial Statements	185
Euronext N.V. Company Financial Statements for the year ended 31 December 2019	247
Notes to the Company Financial Statements	249
9. OTHER INFORMATION	263
9.1 Profit Appropriation Section	264
9.2 Independent Auditor’s Report	264
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS 2019 INCLUDED IN THE UNIVERSAL REGISTRATION DOCUMENT	264
OUR AUDIT APPROACH	265
REPORT ON OTHER INFORMATION INCLUDED IN THE UNIVERSAL REGISTRATION DOCUMENT	268
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS	268
DESCRIPTION OF RESPONSIBILITIESFOR THE FINANCIAL STATEMENTS	269
GLOSSARY & CONCORDANCE TABLES	271

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