Euronext - 2020 Universal Registration Document

Selected Historical Consolidated Financial Information, Other Financial Information and Unaudited Pro Forma Combined Financial Information 5 Other Financial Information

The below table summarises the various APMs used throughout this Universal Registration Document, as well as the Group’s rationale and purpose to use a specific APM.

Alternative Performance Measure Adjusted net income

Definition

Rationale/purpose of use

Net income adjusted for amortisation of intangible assets acquired in a business combination, exceptional items, impairments, revaluation of buy-options and deferred payments, less tax related to those items

Adjusted net income is used by the Group to provide to investors a better understanding of the true profitability of the Group for the applicable period

Adjusted EPS The adjusted net income of the Group divided by the total weighted average number of shares outstanding for the period Adjusted EPS is used by the Group to provide to investors a better understanding of the true profitability per share of the Group for the applicable period Free cash flow Net cash generated by operating activities minus capital expenditures Free cash flow represents the cash generating capability of the Group to pay dividends, repay providers of capital, or carry out acquisitions Capital expenditures Purchase of property, plant and equipment plus purchase of intangible assets Capital expenditures indicates the Group’s appetite to invest in existing and new fixed assets to maintain or grow the business Operating profit before exceptional items Total revenues minus salaries and employee benefits, minus depreciation and amortisation minus other operating expenses Operating profit before exceptional items is used by the Group to measure its profit generated from its core business functions

Exceptional items

Exceptional items includes clearly identifiable income and expense items which are infrequent and unusual by their size or by their nature

Exceptional items are presented separately in the Group’s Consolidated Statement of Profit or Loss in order to improve the understanding of the operating performance of the Group EBITDA is used by the Group to measure its operating performance, as management believes that this measurement is most relevant in evaluating the operating results of the Group. This measure is included in the internal management reports that are reviewed by the CODM EBITDA margin is used to show the ratio between the EBITDA and the revenue This ratio, also called cash conversion ratio, is used to assess the efficiency of the Group to turn the EBITDA into cash.

EBITDA

Operating profit before (i) exceptional items and (ii) depreciation and amortization, taking into account the lines described in the Consolidated Statement of Profit or Loss, and as defined in Chapter 5.1 of the URD

EBITDA margin The operating profit before exceptional items and depreciation and amortisation, divided by revenue

EBITDA to Net operating cash flow Net debt to EBITDA ratio

Net cash generated by operating activities, divided by EBITDA (as defined above)

The aggregated non-current and current borrowings of the Group less cash and cash equivalents of the Group, divided by EBITDA (as defined above) The combined pro forma operating profit of the Combined Group (1) before exceptional items and depreciation and amortisation The Pro Forma gross debt means the aggregate principal amount of all obligations of member of the Combined Group (1) in respect of any financial indebtedness owed to persons outside the Combined Group (1) The Pro Forma net debt means total gross debt (as defined above) less cash and cash equivalents with respect to the Combined Group (1) on a consolidated basis The combined pro forma net debt of the Combined Group (1) divided by the combined pro forma EBITDA of the Combined Group (1)

This ratio is used as a proxy to assess the Group’s solvency ( i.e. its ability to face its financial commitments in the long run).

Pro Forma EBITDA is used to show the hypothetical operating performance of the Combined Group, asmanagement believes that this measurement is most relevant in evaluating the hypothetical operating results of the Combined Group (1) Pro Forma gross debt is used to calculate the hypothetical leverage ratio of the Combined Group (1)

Pro Forma EBITDA

Pro Forma Gross Debt

Pro Forma Net Debt

Pro Forma net debt is used to calculate the hypothetical leverage ratio of the Combined Group (1)

Pro Forma Net Debt to Pro Forma EBITDA Leverage Ratio

Pro Forma Net Debt to Pro Forma EBITDA leverage ratio is used to calculate the hypothetical leverage ratio of the Combined Group (1) . Euronext is required to maintain in compliance with a maximum leverage ratio if the credit rating would drop below BBB.

(1) See section ‘5.3 Unaudited Pro Forma Combined Financial Information’, which has been prepared for illustrative purposes only to represent the pro forma effects of the contemplated acquisition of the Borsa Italiana Group by Euronext N.V.

The figures used in the reconciliation tables below have been derived from the Consolidated Financial Statements and the Pro Forma Financial information, as provided respectively in sections 8 and 5.3 of this Universal Registration Document.

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2020 UNIVERSAL REGISTRATION DOCUMENT