Euronext - 2019 Universal Registration Document

Operating and financial review

Overview

Profit for the Year For the year ended 31 December 2019:

For the year ended 31 December 2018: Euronext reported profit for the year ended 31 December 2018 was €217.6 million, compared to €242.2 million for the year ended 31December 2017, an decrease of €24.6million or 10.1%. Of this profit, €216.0 million was attributable to the shareholders of the parent.

Euronext reported profit for the year ended 31 December 2019 was €225.3 million, compared to €217.6 million for the year ended 31 December 2018, an increase of €7.6 million or 3.5%. Of this profit, €222.0 million was attributable to the shareholders of the parent.

7.1.9 CASH FLOW The table below summarises Euronext consolidated cash flow for the years ended 31 December 2019, 2018 and 2017:

Year ended 31 December 2019 31 December 2018 31 December 2017

In thousands of euros

Net cash provided by operating activities Net cash (used in) investing activities

253,771

223,512

207,003

(607,307) 327,678 (25,858)

(215,152) 202,012 210,372

(185,093)

Net cash provided by/(used in) financing activities

(8,524) 13,386

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

Net Cash Provided by Operating Activities Net cash provided by operating activities increased by €30.3 million, to €253.8 million for year ended 31 December 2019, compared to €223.5 million for the year ended 31 December 2018. This increase was mainly attributable to: n an increase of profit before tax for the period; n an increase in D&A expenses, following the adoption of IFRS 16 “Leases” and the impact of PPA amortisation from newly acquired companies during the last twelve months; n the impact from revaluation of financial instruments, related to earn-out provisions for Company Webcast and InsiderLog. Net cash provided by operating activities increased by €16.5 million, to €223.5 million for year ended 31 December 2018, compared to €207.0 million for the year ended 31 December 2017. This increase was mainly attributable to: n an increase of profit before tax for the period; n an increase in D&A expenses, following the impact of PPA amortisation from newly acquired companies during the last twelve months; n the impact from gain on disposal of the investment in LCH Group in 2017, following the share swap of 2.31% interest in LCH Group for an interest of 11.1% in LCH SA. Net Cash (Used in) Investing Activities Net cash used in investing activities increased by €392.2 million, to €607.3 million for the year ended 31 December 2019, compared to €215.2 million for the year ended 31 December 2018. This increase was mainly attributable to the impact from the acquisition of the majority stake in Oslo Børs VPS. Net cash used in investing activities increased by €30.1 million, to €215.2 million for the year ended 31 December 2018, compared to €191.2 million for the year ended 31 December 2017. This increase was mainly attributable to the impact from the acquisition of 5.1% stake in Oslo Børs VPS.

Net Cash Provided by/(Used in) Financing Activities Net cash provided by financing activities increased by €125.7million, to €327.7 million for the year ended 31 December 2019, compared to a net cash provided by financing activities of €202.0 million for the year ended 31 December 2018. The main financing activity that led to cash inflows in 2019 was the proceed of the Bond issued in June 2019. The main financing activity that led to cash outflows in 2018 was the repayment of the Bank Loan facility agreement to fund the acquisitions of iBabs and FastMatch. Net cash provided by financing activities increased by €210.5million, to €202.0 million for the year ended 31 December 2018, compared to a net cash used in financing activities of €-8.5 million for the year ended 31 December 2017. The main financing activities that led to cash inflows in 2018 was the proceed of the Bond issued in April 2018. The main financing activity that led to cash inflow in 2017 was the proceed of the new Bank Loan facility agreement to fund the acquisitions of iBabs and FastMatch. 7.1.10 FACILITIES AGREEMENT AND BONDS On 12 April 2017, the Group entered into a new revolving loan facility agreement (“the Facility”) amounting to €250 million, with BNP Paribas and ABN AMRO BANK N.V. as Lead Arrangers. This new Facility has replaced the revolving credit facility of €390 million. On 18 July 2017, the Group entered into a syndicated bank loan facility (“the Bank Loan”) with BNP Paribas and ABN AMRO BANK N.V. as Lead Arrangers, providing for €175 million. The Bank Loan has been drawn in the amount of €165 million on 9 August 2017 in order to (i) fund the acquisition of 89.8% of the shares and voting rights in FastMatch Inc. and (ii) refinance the acquisition of 60% of the shares and voting rights in iBabs B.V. previously financed through the Facility. The Bank Loan and Facility are together referred to as Instruments. As per 31 December 2017 a non-current borrowing of €165.0 million was recognised related to the Bank Loan.

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2019 UNIVERSAL REGISTRATION DOCUMENT