Euronext - 2019 Universal Registration Document

Financial Statements

Consolidated Statement of Changes in Equity

respect to trade and contract receivables as low, as most of its customers are leading financial institutions that are highly rated. Set out below is the information about the credit risk exposure on the Group’s trade and contract receivables using a provision matrix as at 31 December 2019 and 2018:

and forward-looking factors specific to the debtors and economic environment. Generally trade receivables are written-off if past due more than one year, or when there is no reasonable expectation of recovery. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 21. The Group evaluates the concentration of credit risk with

31 DECEMBER 2019

Trade receivables

Contract Receivables

30–60 days past due

61–90 days past due

> 91 days past due

Current

Total

In thousands of euros

Expected credit loss rate

0.09% 19,878

0.09% 43,787

0.24% 28,314

0.63% 7,597

1.75% 12,938

Collectively assessed receivables Expected credit loss collective basis

112,513

17

38

68

48

226

397

Expected credit loss rate

- - -

- - -

- - -

- - -

100.0%

Individually assessed receivables Expected credit loss individual basis TOTAL EXPECTED CREDIT LOSS

1,221 1,221 1,447

1,221 1,221 1,618

17

38

68

48

31 DECEMBER 2018

Trade receivables

Contract Receivables

30–60 days past due

61–90 days past due

> 91 days past due

Current

Total

In thousands of euros

Expected credit loss rate

0.08% 21,996

0.08% 44,041

0.27% 14,505

0.79% 6,337

3.44% 4,706

Collectively assessed receivables Expected credit loss collective basis

91,584

18

37

39

50

162

307

Expected credit loss rate

- - -

- - -

- - -

- - -

100.0%

Individually assessed receivables Expected credit loss individual basis TOTAL EXPECTED CREDIT LOSS

1,226 1,226 1,388

1,226 1,226 1,533

18

37

39

50

Other debt financial assets at amortised cost The other debt financial assets at amortised cost primarily consist of other current financial assets, which include short-term deposits with a maturity over three months. In 2018, non-current financial assets included two loans with a total amount of €6.0million, bearing an interest rate of Euribor 6 months plus an average margin of 4.5%. In 2019, these loans were fully repaid before the maturity date. The other debt financial assets at amortised cost are considered to have low credit risk, as the issuers of the instruments have a low risk of default evidenced by their strong capacity to meet their contractual cash flow obligations in the near term. The loss allowance recognised during the period was therefore limited to 12 months expected credit losses. The Group did not recognise any material provision for expected credit losses on its other debt financial assets at amortised cost as per 31 December 2019 (2018: not material). The amount of credit-impaired financial assets is considered not significant. Equity Market risk The Group’s investment in publicly traded equity securities was insignificant in 2019 and 2018. 37.5.

37.6. Capital management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, to comply with regulatory requirements and tomaintain an optimal capital structure to reduce the cost of capital and provide return to shareholders. Certain entities of the Group are regulated as Exchanges or as Central Securities Depository (“CSD”) and are subject to certain statutory regulatory requirements based on their local statutory Financial Statements and risks. In general, the financial ratios of the Group’s subsidiaries significantly exceed the regulatory requirements and they maintain a safety cushion in order to avoid any concern from the regulators. Euronext N.V. must comply with prudential requirements, as a result of an agreement reached with the Dutch Finance Ministry in May 2016, which are set forth in three pillars: n a minimum Total Equity level equal of at least €250 million; and n the Group shall take care of stable financing. Long-term assets of the Group will be financed with shareholders equity and long term liabilities, to the satisfaction of the AFM; and n the Group shall have a positive regulatory capital on a consolidated basis. The regulatory capital is calculated according to the following formula: the paid up share capital plus the

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2019 UNIVERSAL REGISTRATION DOCUMENT