Euronext - 2020 Universal Registration Document

Operating and Financial Review 7 Overview

2020

2019

2018 (5,558)

In thousands of euros

Interest expense (effective interest method)

(17,043)

(11,632)

Interest in respect of lease liabilities

(525)

(555)

–

Other finance costs

306

336

77

Finance costs

(17,262)

(11,851)

(5,481) (1,200) (2,000) (3,200)

Contingent liabilities Redemption liabilities

394

(1,310)

(131)

(11,965) (13,275)

Change in fair value of financial liabilities Interest income (effective interest method) Interest income from interest rate swaps

263

1,029 4,949

1,879 4,971

487

3,534 (638) (220)

Hedging result

(27)

124 198 539

Gain/(loss) on disposal of treasury investments

84

Net foreign exchange gain/(loss)

(1,836)

258

Other net financing income/(expense)

4,199

7,711

3,421

(17,415)

(5,260)

TOTAL

(12,800)

Result From Equity Investments For the year ended 31 December 2020: In 2020, the €10.6 million of results from equity investments mainly related to the following items: n €1.6 million of dividends received from Sicovam Holding S.A.; n €8.9 million of result from investment in associates and joint ventures, mainly contributed by the investment in associate LCH SA. For the year ended 31 December 2019: In 2019, the €9.1 million of results from equity investments mainly related to the following items: n €7.3 million of dividends received from Euroclear S.A./N.V. and Sicovam Holding S.A.; n €1.8 million of result from investments in associates and joint ventures, comprising the impairment of EuroCCP stake sold in 2019, offset by €7.7 million of result contribution from investments in associate LCH SA. Euronext profit before income tax for the year ended 31 December 2020 was €442.7 million, compared to €325.6 million for the year ended 31 December 2019, an increase of €117.1 million or +36.0%. This impact was mainly caused by the €111.1 million increase in Operating Profit already described above, and a decrease of €4.6 million in net financing income/(expense). For the year ended 31 December 2019: Euronext profit before income tax for the year ended 31 December 2019 was €325.6 million, compared to €311.7 million for the year ended 31 December 2018, an increase of €13.9million or +4.4%. This impact was caused by the €24.5 million increase in Operating Profit already described above, and is partly offset by i) an increase of Profit Before Income Tax For the year ended 31 December 2020:

€6.4 million in finance costs, which relate to interest expense of the second Bond issued in June 2019, and ii) an increase of €10.1 million in negative changes in fair value of financial instruments, which relate to revaluation of the deferred payments and buy options linked to the acquisitions of Company Webcast and Insiderlog.

Income Tax Expense For the year ended 31 December 2020:

Euronext’s income tax expense for the year ended 31 December 2020 was €122.2 million, compared to €100.3 million for the year ended 31 December 2019, an increase of €21.9 million or 21.8%. Euronext’s effective tax rate was 27.6% for the year ended 31 December 2020 compared to 30.8% for the year ended 31 December 2019. The decrease of the effective tax rate in 2020 is primarily attributable to: n non-deductible acquisition costs; n the impact from statutory tax rate changes on deferred tax Euronext’s income tax expense for the year ended 31 December 2019 was €100.3 million, compared to €94.1 million for the year ended 31 December 2018, an increase of €6.2 million or 6.6%. Euronext’s effective tax rate was 30.8% for the year ended 31 December 2019 compared to 30.2% for the year ended 31 December 2018. The increase of the effective tax rate in 2019 is primarily attributable to: n non-deductible acquisition costs; n the impact of the rate decrease on the deferred tax assets in France and a tax rate increase in the Netherlands impacting the deferred liability; n non-deductible expenses linked to the recognition of earn out liabilities in connection with the buy out of Company Webcast and Insiderlog. positions in France and the Netherlands. For the year ended 31 December 2019:

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2020 UNIVERSAL REGISTRATION DOCUMENT