Euronext - 2019 Universal Registration Document

Risk Management & Control Structure

Risk Factors

Risk Control & Mitigation Market Fragmentation

technology sector as well as in the corporate services market, where Euronext provides support to newly listed and existing companies. Furthering Euronext’s geographical reach in Europe, the Company has established a sales presence in several European locations building proximity and intimacy with private companies in Europe this has translated into increased new listing flow from non-Euronext markets. Euronext actively seeks to identify unlisted companies that require additional financing to meet their ambitions, to encourage them to view financial markets as a source of financing, a governance and transmission tool, a way to enhance their visibility and a mean of raising their profile with investors. As a result, Euronext maintains targeted pre-IPO programmes (TechShare, FamilyShare and IPOready) to help CEOs familiarise themselves with capital markets.

Transformation The Company is exposed to transformation risks (risk of loss or failure resulting from change/transformation) given the current levels of change and alignment activity taking place across the Company. Technology Euronext operates in a business environment that continues to experience significant and rapid technological change. To remain competitive, the Company must continue to transform in order to enhance and improve the functionality, capacity, accessibility and reliability of its technology. The Company is ambitious in its drive for constant innovation and technological transformation in order to maintain its place in the exchange landscape. Strategic Acquisitions Euronext is undergoing companywide transformation programs, such as the integration of new acquisitions, including Euronext Oslo and VPS. If these programs are not completed, or do not operate as intended, identified synergies may not be delivered and the marketplace may be questioned. The Company has entered andmay continue to enter into business combination transactions. The market for acquisition targets and strategic alliances is highly competitive. Risk Control & Mitigation Euronext mitigates its exposure to transformation risk through the close monitoring of transformation programs including set up of governance bodies to organize implement and follow the integration of recently acquired entities. With the growth of the Group size, there has also been an increase in its capacity, competence and experience in integrating new companies into the Group and deliver synergies. Innovation in the sector and movements in the competitive landscape are closely monitored and actions are taken to protect market share and develop new offerings to attract additional flow. Further, Euronext is focused on delivering the highest quality liquidity management to ensure its position as the deepest pool of liquidity. Euronext actively seeks the diversification of its business through the acquisition of non-volume-based businesses, reducing the Group’s overall exposure to this risk. The Group has several initiatives and projects in order to offer superior products and services to clients and issuers alike. Listing Business While Euronext is subject to competition from our peers in our local markets Euronext competes with peers on their home markets – in particular in respect of global companies and SMEs in the Risk Identification and Description

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Potential Impacts on the Group

Technology is changing rapidly and given the time to market to develop and implementation changes, Euronext may be impacted if technology is no longer relevant. Pursuing strategic transactions requires substantial time and attention of the management team, which could prevent them from successfully overseeing other initiatives. Similarly, if acquisitions ambitions are publicly disclosed but not closed, this may impact our reputation and our strategic growth plan. Completing and recognising benefits of potential transactions takes time and can impact the Company’s business, and financial results. In relation to the expansion of the Group’s business, Euronext invests time in developing new products, improving current product offerings or increase its presence in other markets. If these product offerings are not successful, a potential market opportunity may be missed and Euronext may not be able to offset the cost of such initiatives, which may have a material impact on the Company’s financial results.

Euronext continuously seeks to find, acquire, and innovate products and services that either enhance current performance and capacity or drive Group evolution and growth. Euronext’s strategy 2022, Let’s Grow Together supports the transformation effort.

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2019 UNIVERSAL REGISTRATION DOCUMENT