Euronext - 2019 Universal Registration Document

Operating and financial review 7 Overview

Depreciation and Amortisation For the year ended 31 December 2019:

n PPA and earn-out adjustment, related to the acquisitions mentioned above. Euronext operating expenses comprise salaries and employee benefits, depreciation and amortisation, and other operational expenses.

Depreciation and amortisation accounted for €43.7 million in 2019, up +86.6%, resulting primarily from the consolidation of Oslo Børs VPS PPA and one additional quarter of Euronext Dublin PPA accounting for €6.3 million and the adoption of IFRS 16. On a like-for-like basis, depreciation & amortisation was up +39.6% to €32.7 million, mainly due to the impact of IFRS 16. For the year ended 31 December 2018: Depreciation and Amortisation increased by €6.5 million, or 38.2%, to €23.4 million in 2018, compared to €16.9 million in 2017. This increase is mainly related to the acquisition of Company Webcast, iBabs and FastMatch in 2017, InsiderLog and Euronext Dublin in 2018, and their respective PPA.

Salaries and Employee Benefits For the year ended 31 December 2019:

Salaries and Employee Benefits increased by €34.7million, or 29.2%, to €153.1 million in 2019, compared to €118.5 million in 2018. This increase is mainly attributable to the increase in headcount following the incorporation of newly acquired businesses and to increased performance based payments. For the year ended 31 December 2018: Salaries and Employee Benefits increased by €14.1million, or 13.5%, to €118.5 million in 2018, compared to €104.4 million in 2017. This increase is attributable to the increase in headcount following the incorporation of newly acquired businesses.

Other Operational Expenses

2019

2018

2017

In thousands of euros

Systems and communications

(26,385) (37,070) (29,402)

(26,208) (47,011) (29,846) (10,430) (28,800)

(22,354) (45,545) (27,925)

Professional services Clearing expenses Accommodation Other expenses

(5,467)

(9,961)

(28,219)

(24,364)

TOTAL

(126,543)

(142,295)

(130,149)

For the year ended 31 December 2018: System and Communications increased by €3.9 million, or 17.2%, to €26.2 million in 2018, compared to €22.4 million in 2017. This increase is mainly attributable to the integration of Euronext Dublin. Professional Services increased by €1.5 million, or 3.2%, to €47.0 million in 2018, compared to €45.5 million in 2017. This increase is mainly attributable to the integration of Euronext Dublin and FastMatch. Clearing expenses increased by €1.9million, or 6.9%, to €29.8million in 2018, compared to €27.9 million in 2017. This increase is linked to the higher Clearing revenues in 2017. Accommodation increased by €0.5 million, or 4.7%, to €10.4 million in 2018, compared to €10.0 million in 2017. This increase is mainly attributable to additional accommodation costs resulting from the integration of Euronext Dublin and FastMatch. Other Expenses increased by €4.4 million, or 18.2%, to €28.8 million in 2018 when compared to €24.4 million in 2017. This increase mainly reflects the integration of Euronext Dublin, including €1.7 million of one-off stamp duty tax relating to the acquisition of Euronext Dublin in the second quarter of 2018.

For the year ended 31 December 2019: System and Communications increased by €0.2 million, or 0.7%, to €26.4million in 2019, compared to €26.2million in 2018. This increase is attributable to the integration of Oslo Børs VPS and Commcise, offsetting a decrease in licenses fees and the impact of IFRS 16. Professional Services decreased by €9.9 million, or 21.1%, to €37.1 million in 2019, compared to €47.0 million in 2018. This decrease is mainly attributable to a decrease in consulting and advisory costs and the impact of IFRS 16 Clearing expenses decreased by €0.4million, or 1.5%, to €29.4million in 2019, compared to €29.8 million in 2018. This decrease is linked to the lower Clearing revenues in 2019. Accommodation decreased by €5.0 million, or 47.6%, to €5.5 million in 2019, compared to €10.4 million in 2018. This decrease is attributable to the impact of IFRS 16. Other Expenses decreased by €0.6 million, or 2.0%, to €28.2 million in 2019 when compared to €28.8 million in 2018. This decrease mainly reflects a decrease in tax expenses, as 2018 was notably impacted by €1.7 million of one-off stamp duty tax relating to the acquisition of Euronext Dublin, and a decrease in other costs, offsetting the consolidation of costs from newly acquired businesses previously mentioned.

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2019 UNIVERSAL REGISTRATION DOCUMENT