Euronext - 2019 Universal Registration Document

Financial Statements 8

Consolidated Statement of Changes in Equity

Oslo Børs VPS Holding ASA (“Oslo Børs VPS”) As per 31 December 2018, following share purchases made by the Group at end of 2018, the Group held a 5.1% ownership interest in Oslo Børs VPS. The Group irrevocably elected to classify the 5.1% investment in Oslo Børs VPS as an equity investment at fair value through other comprehensive income. The Group considered the purchase price of NOK 145 per share to be best proxy for fair value as per 31 December 2018, supported by prices of Oslo Børs VPS shares traded at the end of December 2018 and beginning of 2019. During 2019, the Group made additional share purchases for €22.1 million, increasing its ownership in Oslo Børs VPS to 8.3%, before acquiring the majority stake on 14 June 2019 (see Note 5). Immediately before obtaining the majority stake and as part of the total purchase consideration, the equity investment was revaluated to its acquisition-date fair value of €57.4 million (at NOK 158 per share plus interest payments) resulting in a gain of €3.6 million, which was recognised in other comprehensive income. As a consequence

of the transaction, the equity investment in Oslo Børs VPS was fully derecognised and its historical revaluation gain, recognised in other comprehensive income, was transferred to retained earnings on the date of acquiring the majority stake. Algomi Ltd. As of 31 December 2019, the Group holds a 7.74% ownership interest in Algomi Ltd. (31 December 2018: 7.74%), a fixed income technology provider and the Group’s joint venture partner of Algonext Ltd. During 2018, Algomi Ltd. decided to change its strategic course of direction, leading to expectations of adverse impact on Algomi Ltd’s financial situation. Based on the companies’ going-concern outlook, the Group considered the fair value of its investment in Algomi Ltd to be zero, and revaluated this investment downwards by €9.6 million accordingly, as per 31 December 2018. In 2019, fair value did not change for this investment.

NOTE 21 TRADE AND OTHER RECEIVABLES

2019 93,856 19,878 (1,618)

2018 70,815 21,996 (1,533) 91,278

In thousands of euros

Trade receivables

Contract receivables

Allowance for expected credit losses Trade and contract receivables net Tax receivables (excluding income tax)

112,116

8,145 5,115

7,650 2,154

Other receivables

TOTAL

125,376

101,082

Trade receivables are non-interest bearing and generally on terms of 30 to 90 days. 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).

The significant changes in trade and contract receivables are disclosed in Note 8.2. Set out below is the movement in the allowance for expected credit losses of trade and contract receivables:

2019 1,533

2018 1,256

In thousands of euros

As at 1 January

Provision for expected credit losses

407

624

Receivables written off during the year

(322)

(347)

AT 31 DECEMBER

1,618

1,533

Management considers the fair value of the trade and other receivables to approximate their carrying value. The information about the credit exposures of trade and other receivables are disclosed in Note 37.4.

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2019 UNIVERSAL REGISTRATION DOCUMENT