Euronext - 2020 Universal Registration Document

Operating and Financial Review

Overview

Profit For the Year For the year ended 31 December 2020:

Total liabilities increased by €322.2 million, to €1,795.6 million for year ended 31 December 2020, compared to €1,473.4 million for the year ended 31 December 2019. This increase was mainly attributable to: n €261.0 million of increase in the line Non-current Borrowings, which was mainly caused by the €250 million tap offering on the Bond #2 that was issued in June 2020 (as described in section 7.1.11); n €14.0 million of increase in the line Deferred tax liability, which was caused by deferred tax impact on valuation of certain intangible assets on acquisition of Nord Pool and VP Securities in 2020; n €68.5 million of increase in the line Trade and other payables, which was mainly caused by the impact from the newly acquired subsidiaries in 2020; n €-30.2 million of decrease in the line Other current financial liabilities, which was caused by the payment of the deferred payments and buy option liabilities related to the acquisitions of Company Webcast and InsiderLog AB. For the year ended 31 December 2019 compared to the year ended 31 December 2018: Total assets increased by €808.8 million, to €2,407.2 million for year ended 31 December 2019, compared to €1,598.5 million for the year ended 31 December 2018. This increase was mainly attributable to: n €753.1 million of increase in the line Goodwill and other intangible assets, which was caused by the acquisitions of Oslo Børs VPS Holding ASA and Finance Web Working SAS in 2019, as is further described in section 7.1.5; n €51.8 million of increase in the line Right-of-use assets, which was caused by the impact from changes in accounting policies following adoption of IFRS 16. Total equity increased by €131.5 million, to €933.8 million for year ended 31 December 2019, compared to €802.3 million for the year ended 31 December 2018. This increase was mainly attributable to: n €116.1 million of increase in the line Retained earnings, which was primarily caused by €222.0 million of profit for the year, partly offset by the dividends paid to the shareholders of the Company for €-107.2 million. Total liabilities increased by €677.3 million, to €1,473.4 million for year ended 31 December 2019, compared to €796.1 million for the year ended 31 December 2018. This increase was mainly attributable to: n €506.6 million of increase in the line Non-current Borrowings, which was caused by €493.9 million of impact from the Bond that was issued on 4 June 2019 (as described in section 7.1.5) and €11.9 million of fair value adjustment following the interest rate hedge; n €55.2 million of increase in the line Lease liabilities (non-current and current), which was caused by changes in accounting policies following adoption of IFRS 16;

Euronext reported profit for the year ended 31 December 2020 was €320.5 million, compared to €225.3 million for the year ended 31 December 2019, an increase of €95.3 million or 42.3%. Of this profit, €315.5 million was attributable to the shareholders of the parent. For the year ended 31 December 2019: Euronext reported profit for the year ended 31 December 2019 was €225.3 million, compared to €217.6 million for the year ended 31 December 2018, an increase of €7.6 million or 3.5%. Of this profit, €222.0 million was attributable to the shareholders of the parent. The increase was caused by the €13.9 million increase in Operating Profit before tax already described above, partly offset by an increase in income tax expenses of €6.2 million. BALANCE SHEET For the figures used in the balance sheet review below, reference is made to the table containing the Consolidated Balance Sheet in Chapter 5 “Selected historical consolidated financial information and other financial information”. For the year ended 31 December 2020 compared to the year ended 31 December 2019: Total assets increased by €477.4 million, to €2,884.6 million for year ended 31 December 2020, compared to €2,407.2 million for the year ended 31 December 2019. This increase was mainly attributable to: n €77.3 million of increase in the line Goodwill and other intangible assets, which was caused by the goodwill included in the acquisitions of Nord Pool and VP Securities in 2020, as is further described in section 7.1.5; n €57.6 million of increase in the line Trade and other receivables, which was mainly related to the impact from the acquisition of Nord Pool and VP Securities in 2020; n €80.0 million of increase in the line other current financial assets, which was mainly caused by debt investments in listed bonds that were included in the acquisition of VP Securities; n €259.7 million of increase in the line cash and cash equivalents, which movement is further explained in section 7.1.10. Total equity increased by €155.2 million, to €1,089.0 million for year ended 31 December 2020, compared to €933.8 million for the year ended 31 December 2019. This increase was mainly attributable to: n €200.7 million of increase in the line Retained earnings, which was primarily caused by €315.5 million of profit for the year attributable to the shareholders of the Company, partly offset by the dividends paid to the shareholders of the Company for €-110.6 million; n €-55.5 million impact from foreign currency translation reserve, caused by the revaluation of investments in foreign currencies primarily in NOK. 7.1.9

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2020 UNIVERSAL REGISTRATION DOCUMENT