Euronext - 2019 Universal Registration Document

Financial Statements

Consolidated Statement of Changes in Equity

were amounts received or due from customers related to investor services business (Commcise), Indices licenses and corporate services, following growing activity in those businesses. Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period amounted to €47.1 million (2018: €39.3 million). The amount of revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods was considered not significant (2018: not material). Performance obligations Information about the Group’s performance obligations are described in Note 3 “Significant accounting policies and judgements”. The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) are as follows: 8.3

Trade receivables are non-interest bearing and are generally due on terms of 30 to 90 days and represent amounts in respect of billed revenue, for which the Group has an unconditional right to consideration (i.e. only the passage of time is required before payment of the consideration is due). Trade receivables increased by €23.0 million, which is mainly attributable to the acquisitions of new subsidiaries (primarily Oslo Børs VPS) for €13.9 million (see Note 5) and increased invoicing in listing business of €4.3 million, following new IPO’s in the fourth quarter of 2019. Furthermore, a reclassification was made from contract receivables to trade receivables for €2.5 million related to connectivity fees. Contract receivables represent amounts in respect of unbilled revenue, for which the Group has an unconditional right to consideration (i.e. only the passage of time is required before payment of the consideration is due). Contract receivables decreased by €2.1 million, primarily caused by last year’s contract receivable positions for market data – and connectivity revenues, which were reclassified to trade receivables in 2019. This effect was partly offset by the increasing impact from the acquisitions of new subsidiaries for €1.2 million (see Note 5). In 2019, €1.6 million (2018: €1.5 million) was recognised as provision for expected credit losses on trade and contract receivables (see Notes 21 and 37.4). Contract liabilities primarily relate to received consideration (or an amount of consideration is due) from customers for the initial (or subsequent) listing of equity securities, bond lifetime fees, indices licenses, software maintenance & hosting and corporate services. The increase of €11.7 million in contract liabilities, was primarily attributable to the acquisition of Oslo Børs VPS (see Note 5), which included contract liabilities related to initial and subsequent listing. Other impacts contributing to the increase in contract liabilities

31 December 2019 31 December 2018

In thousands of euros

Within one year

65,528

57,617

More than one year

61,384

63,873

TOTAL

126,912

121,490

The remaining performance obligations expected to be recognised in more than one year primarily relate to the initial (or subsequent) listing of equity securities and bond lifetime fees which are recognised over the related listing period. Other performance obligations included in this category are software maintenance & hosting contracts, Indices license contracts and corporate services license contracts.

NOTE 9

SALARIES AND EMPLOYEE BENEFITS

Year ended 31 December 2019 31 December 2018

In thousands of euros

Salaries and other short term benefits

(108,443)

(86,420)

Social security contributions

(32,993)

(24,851)

Share-based payment costs

(6,943)

(3,979)

8

Pension cost – defined benefit plans

(1,292)

(1,310)

Pension cost – defined contribution plans

(3,474)

(1,928)

(118,488)

TOTAL

(153,145)

At the end of the year, the number of employees, based on full-time equivalents (FTE) stood at 1,070.7 (2018: 809.1). The increase in FTE was primarily caused by the newly acquired companies during the year.

Salaries, other short term benefits, social security contributions and pension cost (defined contribution plans) primarily increased due to newly acquired subsidiaries in 2019. In 2019, “Share based payments costs” primarily contain costs related to the LTI Plans 2016, 2017, 2018 and 2019. Details of these plans are disclosed in Note 28.

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2019 UNIVERSAL REGISTRATION DOCUMENT