Euronext - 2019 Universal Registration Document

Financial Statements 8

Consolidated Statement of Changes in Equity

NOTE 43 OTHER OPERATING EXPENSES

2019

2018 (148) (7,390) (6,187)

In thousands of euros

Systems and communications

(94)

Professional Services

(16,984)

Other expenses

(3,318)

TOTAL

(20,396)

(13,725)

In addition, other expenses contains €1.8 million of stamp duty taxes which were recognised at acquisition of the Irish Stock Exchange plc in 2018. Number of employees Euronext N.V. had no employees during 2019 and 2018. The remuneration of the Supervisory Board is included in other expenses.

In 2019, professional services expenses contained €11.7 million (2018: €2.1 million) of acquisition costs. In 2019, other expenses contained €1.3 million that is related to a settlement payment regarding the investment in Algomi Ltd. In 2018, other expenses is primarily due to €3.0 million of items that relate to the revaluation of the investment in Algomi Ltd. and the impairment of the investment in joint venture Algonext Ltd.

NOTE 44 FINANCIAL INCOME AND EXPENSES

2019 5,784 10,067 (10,944)

2018 4,101 7,292 (6,788) 4,361 8,966

In thousands of euros

Income from equity investments

Interest and similar income

Interest and similar expenses

Exchange differences

576

TOTAL

5,483

Unsecured Note #1 was issued in April 2018 (see Note 29 of the Consolidated Financial Statements). The exchange differences are mainly triggered by revaluations of the non-current related party loans with Euronext UK Holdings Ltd., Oslo Børs VPS, Euronext Nordics Holding AS and Euronext US Inc. (see Note 46). In 2018, exchange differences contained significant impacts resulting from revaluation of the $110 million non-current related party loan with Euronext US Inc.

The income from equity investments reflects the dividend received from Euroclear S.A./N.V. Interest and similar income was positively impacted by income of €5.0 million (2018: €3.5 million) from interest rate swaps entered into by the Group (see Note 23 of the Consolidated Financial Statements) and increased interest income on related party loans for €0.9 million in 2019. Interest and similar expenses increased, following the Senior Unsecured Note #2 issued in June 2019. In 2018, the Senior

NOTE 45 TAX

2019

2018 (4,759)

In thousands of euros

Result before tax

(14,913)

Corporate income tax current financial year Corporate income tax previous financial years

1,446

753

-

(265)

488

TOTAL

1,446

The effective tax rate mainly deviates from the applicable tax rate as a result of the non-deductible expenses. For the year 2020, the Netherlands have withdrawn the announced rate decrease and maintained the corporate income tax rate at 25%. For the year 2021,

the corporate income tax rate in the Netherlands will decrease to 21.7% instead of the rate of 20.5% announced in 2018. Reference is made to Notes 15 and 19 of the Consolidated Financial Statements for more information on the tax rate changes.

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2019 UNIVERSAL REGISTRATION DOCUMENT