Euronext - 2020 Universal Registration Document

Operating and Financial Review 7 Overview

n €57.3 million of increase in the line Deferred tax liabilities, which was caused by deferred tax impact on valuation of certain intangible assets on acquisition of Oslo Børs VPS Holding ASA in 2019, as is further described in section 7.1.5;

n €23.7 million of increase in the line Other current financial liabilities, which was caused by the revaluation of deferred payments and buy option liabilities related to the acquisitions of Company Webcast (in 2017) and InsiderLog AB (in 2018). These liabilities will be paid in 2020.

7.1.10 CASH FLOW The table below summarises Euronext consolidated cash flow for the years ended 31 December 2020, 2019 and 2018:

Year ended 31 December 2020 31 December 2019 31 December 2018

In thousands of euros

Net cash generated by operating activities

277,988

253,771

223,512

Net cash (used in) investing activities

(104,725)

(607,307)

(215,152)

Net cash generated by financing activities

104,235

327,678

202,012

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

277,498

(25,858)

210,372

Net Cash Generated by Operating Activities Net cash generated by operating activities increased by €24.2million, to €278.0 million for year ended 31 December 2020, compared to €253.8 million for the year ended 31 December 2019. This increase was mainly attributable to: n the effect of an increase in profit before tax of €117.1 million, partly offset by €-71.6 million of impact from changes in working capital, almost fully attributable to the payment of suppliers that were included in the acquisition balance of Nord Pool in 2020; n the effect of a decrease of €-13.6million in adjustment for changes in fair value of financial instruments. This is attributable to the revaluation of deferred payments and buy option liabilities related to the acquisitions of Company Webcast and Insiderlog in 2019. The payment of these liabilities were made in 2020. Net cash generated by operating activities increased by €30.3million, to €253.8 million for year ended 31 December 2019, compared to €223.5 million for the year ended 31 December 2018. This increase was mainly attributable to: n the effect of an increase of €20.3 million in adjustment for D&A expenses, following the impact from amortisation of certain intangible assets that were identified on acquisition of subsidiaries. The increase comprises partial depreciation impact fromOslo Børs VPS and full year impacts from Commcise and the Irish Stock Exchange in 2019, compared to partial impact from The Irish Stock Exchange in 2018; n the effect of an increase of €10.1 million in adjustment for changes in fair value of financial instruments, which was caused by revaluation of deferred payments and buy option liabilities related to the acquisitions of Company Webcast and Insiderlog, for €13.3 million in 2019 compared to €3.2 million in 2018.

Net Cash (Used in) Investing Activities Net cash used in investing activities decreased by €-502.6 million, to €104.7 million for the year ended 31 December 2020, compared to €607.3 million for the year ended 31 December 2019. This decrease was mainly attributable to: n €-501.4 million of decreasing impact from acquisitions of subsidiaries, which is caused by the acquisitions of controlling stakes in Nord Pool and VP Securities in 2020, compared to the acquisitions of controlling stakes in Oslo Børs VPS and Finance Web Working SAS in 2019. These acquisitions are further described in section 7.1.5. Net cash used in investing activities increased by €392.2 million, to €607.3 million for the year ended 31 December 2019, compared to €215.2 million for the year ended 31 December 2018. This increase was mainly attributable to: n €405.7 million of increasing impact from acquisitions of subsidiaries, which is caused by the acquisitions of controlling stakes in Oslo Børs VPS and Finance Web Working SAS in 2019, compared to the acquisitions of controlling stakes in InsiderLog AB, The Irish Stock Exchange and Commcise in 2018. These acquisitions are further described in section 7.1.5; n offset by a decreasing impact of €-9.6 million from less purchases of financial assets at fair value through other comprehensive income, which was caused by the acquisition of a 3.1% minority stake in Oslo Børs VPS Holding ASA in 2019, compared to the acquisition of a 5.1% minority stake in Oslo Børs VPS in 2018. The acquisition is further described in section 7.1.5.

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2020 UNIVERSAL REGISTRATION DOCUMENT