Euronext - 2019 Universal Registration Document

Financial Statements 8

Consolidated Statement of Changes in Equity

NOTE 39 COMMITMENTS

39.1. Capital commitments As of 31 December, capital expenditures contracted but not yet incurred were as follows:

2019 10,740

2018

In thousands of euros

No later than one year

380

Later than 1 year and no later than 5 years

189

1,002

Later than 5 years

-

-

TOTAL

10,929

1,382

39.2. Non-cancellable operating leases As from 1 January 2019, following the adoption of IFRS 16 “Leases”, the Group has recognised right-of-use assets for its non-cancellable operating leases, except for short-term and low-value leases, see Notes 3 and 17 for further information. Consequently, this note only includes information on the comparative period. The minimum lease payments due under non-cancellable operating leases were as follows:

2019

2018 23,249 44,364

In thousands of euros

No later than one year

- - - -

Later than 1 year and no later than 5 years

Later than 5 years

6,875

TOTAL

74,488

alleged wrongful act performed by an account operator leading to a potential loss for a third party. The amount of the loss has not yet been identified, nor whether the potential loss is indeed the result of wrongful act. Under the terms of section 9.1 the Norwegian Securities Register Act of 5 July 2002, VPS is liable for losses that other parties may incur as a result of errors that occur in connection with registration activities. This does not apply if VPS is able to demonstrate that the error was outside VPS’ control. Errors on the side of the account operator are under the current law seen as being under the control of VPS. The statutory liability according to section 9.1, first paragraph, only applies to direct losses and is limited to kr500 million per claim. In case of gross negligence or willful misconduct these limitations do not apply. The Securities Register Act stipulates that VPS’ potential liability pursuant to section 9.1, first paragraph of the Act, must be covered through insurance, or by some other form of guarantee subject to approval by the FSA. Oslo Børs VPS Holding ASA has taken out errors and omissions insurance for the parent company and its subsidiaries, with an annual limit of kr1 billion and a deductible of kr10 million per claim. VPS shares this insurance with the other companies in the Group up to a limit of kr300 million and is the sole insured party for the balance of kr700 million. The insurance is subject to a limit of kr500 million for any one claim. VPS paid one compensation claimof kr12 thousand in 2019. A compensation claim of kr123 thousand was paid in 2018. No provision has been booked in connection with this case as any loss will be covered by insurance, with recourse on the account operator.

Expenses in 2018 for operating leases were €29.4 million.

39.3. Guarantees given As per 31 December 2019, Euronext N.V. participates in a number of guarantees within the Group (see Note 59). 39.4. Securities held as custodian In Portugal and Norway, the Group acts as a National Central Securities Depository, operated by respectively Interbolsa and Verdipapirsentralen ASA (“VPS”). Interbolsa As at 31 December 2019, the value of securities kept in custody by Interbolsa amounted to €347 billion (2018: €337 billion) based on the market value of shares and the nominal value of bonds. The procedures of this National Central Securities Depository are focused on the provision of notary services, central maintenance services and settlement securities services, according to the CSDR (Central Securities Depository Regulation). The settlement services, provided through T2S platform, have its risks mitigated mainly by early warning systems. The reconciliation procedures in place mitigate the major risks related to the registration of securities. VPS As at 31 December 2019, the value of securities kept in custody by VPS amounted to €615 billion based on the market value of shares and the nominal value of bonds. At the end of 2019, VPS received a notification of a potential claim. The notification refers to an

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2019 UNIVERSAL REGISTRATION DOCUMENT