Euronext - 2019 Universal Registration Document

Operating and financial review

Overview

Operating Profit Before Exceptional Items For the year ended 31 December 2019:

For the year ended 31 December 2018: Euronext operating profit before exceptional items for the year ended 31 December 2018 was €330.9 million, compared to €280.9 million for the year ended 31 December 2017, an increase of €50.0 million.

Euronext operating profit before exceptional items for the year ended 31 December 2018 was €355.7 million, compared to €330.9 million for the year ended 31 December 2018, an increase of €24.9 million.

Exceptional Items

2019 (5,671)

2018 (8,126)

2017 (2,159) (5,000) (5,280)

In thousands of euros Restructuring costs

ICE Clear Netherlands termination fee

-

-

Acquisition costs

(11,730)

(2,088) (4,752) (3,226) (2,000)

DB contract termination

-

- - -

Impairment Algomi

(1,341) (2,245)

Termination of sales contract

Portuguese pension plan settlement Refund pre-retirement plan Paris Litigation provisions/settlements Impairment w/o intangible assets

- - -

- -

(1,565)

2,208 (388)

(520) (893)

(857)

(2,621)

Other

(27)

131

18

TOTAL

(21,871)

(21,474)

(14,787)

For the year ended 31 December 2019: In 2019, exceptional items included:

n €0.5 million of litigation provisions/settlements attributable to individual legal cases, including the $0.8 million settlement with former FastMatch CEO; n €0.9 million of onerous maintenance contract costs related to the impaired intangible assets that were reflected in last year’s exceptional items.

n €5.7 million of restructuring costs mainly related to expenses for employee termination benefits in the various Euronext locations; n €11.7 million of costs incurred for contemplated acquisitions of major significance to the Group, potentially changing the Group’s form or character (transformational acquisitions), which primarily relate to the acquisition of Oslo Børs VPS; n €1.3 million of settlement payment related to the investment in Algomi Ltd.; n €2.2 million related to the early termination of various IT contracts within Oslo Børs VPS; n €0.9 million of costs related to onerous commercial contracts. n €8.1 million of restructuring costs mainly related to expenses for employee termination benefits in the various Euronext locations; n €2.1 million of costs incurred for contemplated acquisitions of major significance to the Group, potentially changing the Group’s form or character (transformational acquisitions); n €4.8 million of impact related to the early termination of the trading services contract provided by Deutsche Börse AG to the Irish Stock Exchange; n €3.2 million of items related to the revaluation of the investment in Algomi Ltd., of which €1.5 million related to impaired intangible assets in 2018; n €2.0 million of costs related to the termination of contract with a reseller within corporate services business; For the year ended 31 December 2018: In 2018, exceptional items included:

Operating Profit For the year ended 31 December 2019:

Euronext operating profit for the year ended 31 December 2019 was €333.9 million, compared to €309.4 million for the year ended 31 December 2018, an increase of €24.5 million or 7.9%. For the year ended 31 December 2018: Euronext operating profit for the year ended 31 December 2018 was €309.4 million, compared to €266.1 million for the year ended 31 December 2017, an increase of €43.3 million or 17.8%. Change in fair value of financial liabilities In 2019, change in fair value of financial liabilities resulted from the CompanyWebcast and InsiderLog deferred payment and buy options that were revaluated, resulting in a €13.3 million expense (see note 35 of the Consolidated Financial Statements).

7

Net Financing Income/(Expense) For the year ended 31 December 2019:

Euronext’s net financing income/(expense) for the year ended 31 December 2019 was a net expense of €17.4 million, compared to a net expense of €5.3 million for the year ended 31 December 2018, an increase in net expense of €12.2million. In details, in 2019, interest expenses increased following the second Bond issued in June 2019

159

2019 UNIVERSAL REGISTRATION DOCUMENT