Euronext - 2019 Universal Registration Document

Risk Management & Control Structure 2 Risk Factors

HIERARCHY OF RISK FACTORS

Strategic Risks

Global Economy and Regional Economy Regulatory Evolution and Enhanced Regulatory Scrutiny Competition Transformation

Cyber Security Technology

Operational Risks

Change and Integration Management Clearing Settlement and Custodial Risk Employees Health and Safety Ownership and Intellectual Property Potential Litigation and Other Liabilities

Compliance Risks

n Market Risk n Capital Risk n Liquidity Risk n Credit Risk

Financial Risks

None of the above mentioned risks had a significant impact on the Company over the course of the past fiscal year. Note that the summary table is not an exhaustive inventory of the of the risks and control processes. Internal control actions are integrated into the

concerned departments operations. The risk considerations related to Environmental, Social and Governance (ESG) are presented in Chapter 3 of this Universal Registration Document.

2.1 Risk Factors

STRATEGIC

Global and Regional Economy

Risk Identification and Description

Potential Impacts on the Group

Operations and performance depend on global and local market and economic trends. Several macro-economic factors including concerns around market correction and sluggish threaten the economic growth generate risks regarding economic activity. The impact of these risks is considered as increasing in international institutions economic outlook. In particular in Europe, the uncertainties stemming from Brexit as well as the emerging Covid-19 virus epidemic that affects global demand and disrupts global production and supply chains may discourage investment. 2020 growth projections have been reviewed downward and are lower than 2019’s projections given that risks threatening the global economy have remain stable or became more pronounced. Amongst those, the ongoing trade tension between the United States and China impacts international trade, and the inverted US yield curve could be pointing to heightened risks of a recession. More locally,the uncertainties regarding the UK-EU trade relationship impact investors’ confidence in the area. The emerging Covid-19 situation is causing high market uncertainty which has led to high volumes in the first quarter of 2020. However, if the situation continues to deteriorate, the impact of the pandemic on the markets could be detrimental. While the current focus remains on the Covid-19 situation, Covid-19, Brexit and trade tensions may have a negative impact on the global and regional economies in which Euronext operates. Ultimately these factors potentially affect Euronext, through reduced volumes and/or reduced listing activity as well as lower opportunities for growth.

n GDP Growth slowdown is reflected in trading volume and may impact revenue and growth target of the Group. n A weaker local economy may become a competitive disadvantage with respect to global competitors given that Euronext activity is mostly concentrated in Western Europe. n Currently the market sentiment has led to high volatility and volumes on the market positively impacting Euronext’s trading revenues. However, the consequences of unprecedented actions to protect public health as offset by the monetary and fiscal policy measures taken by governments and central banks makes the severity of the economic impact of the Covid-19 pandemic very uncertain. The Covid-19 pandemic may push the global economy into recession in the longer term, trading revenues may suffer from loss of volume. The uncertainty may also impact other business lines, notably the Listing business, which may see a decrease in IPOs.

44

www.euronext.com

2019 UNIVERSAL REGISTRATION DOCUMENT