Euronext - 2019 Universal Registration Document

Financial Statements

Consolidated Statement of Changes in Equity

NOTE 7

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

7.1 Interests in Associates and Joint Ventures Set out below are the associates and joint ventures of the Group as at 31 December 2019. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held.

Carrying amount (In thousands of euros)

% of ownership interest

Place of business/ country of Incorporation

Nature of relationship

Name of entity

2019

2018

2019

2018 14,364

European Central Counterparty N.V.

The Netherlands

20.0

20.0 Associate (a)

-

LCH SA

France

11.1

11.1 Associate (b)

59,957

57,401

Immaterial joint ventures

2,270

920

Immaterial associates

4,799

-

72,685

TOTAL EQUITY ACCOUNTED INVESTMENTS

67,025

(a) European Central Counterparty N.V. (“EuroCCP”) is a CCP for pan-European equity markets providing clearing and settlement services. (b) LCH SA is a Continental European clearing house, offering clearing services for a diverse range of asset classes. As described in Note 3, the Group has determined that it has significant influence over LCH SA even though it only holds 11.1% of the voting rights.

7.3

Summarised Financial Information For Associates and Joint Ventures

On 10 December 2019, the Group announced that it entered into binding agreements to sell its 20%minority stake in EuroCCP to CBOE Global Markets, alongside the other current EuroCCP shareholders. The transaction is expected to close in the first half of 2020. The Group expects to receive net proceeds of approximately €8.8 million from the sale of its minority stake. As a result of this agreement, the Group impaired the value of its investment by approximately €6.0 million and reclassified the remaining value of its investment in EuroCCP to the line “assets held for sale” (see Note 22). Commitments and Contingent Liabilities in Respect of Associates and Joint Ventures The Group has no outstanding contingent liabilities with respect to its associates or joint ventures. 7.2

The tables below provide summarised financial information for those associates and joint ventures that are material to the Group. The information disclosed reflects the amounts presented in the Financial Statements of the relevant associates or joint ventures and not Euronext’s share of those amounts. They have been amended to reflect adjustments made by the entity when using the equity method, including fair value adjustments and modifications for differences in accounting policy.

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2019 UNIVERSAL REGISTRATION DOCUMENT