Euronext - 2019 Universal Registration Document

Financial Statements

Consolidated Statement of Changes in Equity

In 2019, exceptional items included: 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 (see Note 5); 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. In 2018, exceptional items included: 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; n €0.5 million of litigation provisions/settlements attributable to individual legal cases, including a $0.8 million settlement with former FastMatch CEO; n €0.9 million of onerous maintenance contract costs related to impaired intangible assets that were reflected in exceptional items of 2017. If the exceptional items were presented by nature, salaries and employee benefits would increase to €5.7million (2018: €8.1million), depreciation and amortization would increase to €0.0 million (2018: €1.7 million) and other operational expenses would increase to €16.2 million (2018: €11.7 million). They relate to both income and expenses.

NOTE 13 NET FINANCING INCOME/(EXPENSE)

Year ended 31 December 2019 31 December 2018

In thousands of euros

Interest expense (effective interest method)

(11,632)

(5,558)

Interest in respect of lease liabilities

(555)

-

Other finance costs

336

77

(5,481)

Finance costs

(11,851)

Contingent liabilities (see Note 35)

(1,310)

(1,200)

Redemption liabilities (see Note 35)

(11,965)

(2,000)

(3,200)

Change in fair value of financial liabilities Interest income (effective interest method)

(13,275)

1,879

487

4,971

3,534

Interest income from interest rate swaps

Hedging result

124

(638)

8

Gain/(loss) on disposal of treasury investments

198

(220)

Net foreign exchange gain/(loss)

539

258

3,421

Other net financing income/(expense)

7,711

TOTAL

(17,415)

(5,260)

Other net financing income was positively impacted by the full year impact of income from interest rate swaps, as a result of the Group entering into interest rate swap agreements in April 2018 (see Note 23) and interest income from newly acquired subsidiaries. Hedging result consists of gains or losses resulting from the ineffective part of the fair value hedge and net investment hedge (see Note 23).

Interest expense for the year comprises the full year impact of interest expenses related to the Bond issued in April 2018 (Bond #1) and the interest expenses following the Bond that was issued in June 2019 (Bond #2) (see Notes 2 and 29). In 2019, the contingent consideration payables recognised in current financial liabilities, which relate to Company Webcast B.V. and InsiderLog AB, were remeasured through profit or loss by €13.3 million (see Note 35).

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2019 UNIVERSAL REGISTRATION DOCUMENT