Euronext - 2020 Universal Registration Document

Operating and Financial Review

Overview

7.1.12 CONTRACTUAL OBLIGATIONS The table below summarises Euronext debt, future minimum payment lease obligations under non-cancellable leases and capital expenditure commitments as at 31 December 2020:

Payments due by year

Notes of the Consolidated Financial Statements

Total

2021 2022-2025 Thereafter

In thousands of euros

500,000

Debt (principal and accrued interest obligations)

1,258,243

8,243

750,000

Note 37.1 – Liquidity risk

Debt (future interest obligations)

92,805

5,305

53,750

33,750

Note 37.1 – Liquidity risk

Lease liabilities – minimum payments

50,951

15,900

33,468

1,583

Note 37.1 – Liquidity risk

Capital expenditure commitments

1,272

931

341

– Note 39.1 – Capital Commitments

TOTAL

1,403,271

30,379

587,559

785,333

Capital Expenditures Euronext’s capital expenditures were €19.2 million and €26.1 million for the years ended 31 December 2020 and 2019, respectively. Capital expenditures decreased in 2020 when compared to 2019, which is primarily driven by investments done last year for the Armoury building in Dublin. Euronext’s capital expenditure requirements depend on many factors, including the rate of its trading volume growth, strategic plans and acquisitions, required technology initiatives, regulatory requirements, the timing and introduction of new products and enhancements to existing products, the geographic mix of Euronext’s business, and the continuing market acceptance of its electronic platform. For the year ending 31 December 2020, Euronext has made operational capital expenditures as well as incurred capitalised software development costs. These expenditures were aimed at enhancing Euronext technology and supporting the continued expansion of Euronext’s businesses. In 2020, Euronext spent €6.6 million on hardware and investments in properties and €12.6 million on development efforts and acquisition of third party licenses. Euronext is not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on Euronext’s financial condition, results of operations, liquidity, capital expenditure or capital resources, other than the €400 million revolving credit facility under the Facilities Agreement and the commitments described in Note 39 of the Consolidated Financial Statements. 7.1.14 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK As a result of its operating and financing activities, the Group is exposed to market risks such as interest rate risk, currency risk and credit risk. The Group has implemented policies and procedures designed to measure, manage, monitor and report risk exposures, which are regularly reviewed by the appropriate management and 7.1.13 OFF-BALANCE SHEET ARRANGEMENTS

supervisory bodies. The Group’s central treasury team is charged with identifying risk exposures and monitoring and managing such risks on a daily basis. To the extent necessary and permitted by local regulation, the Group’s subsidiaries centralise their cash investments, report their risks and hedge their exposures in coordination with the Group’s central treasury team. The Group performs sensitivity analyses to determine the effects that may result from market risk exposures. The Group uses derivative instruments solely to hedge financial risks related to its financial position or risks that are otherwise incurred in the normal course of its commercial activities. The Group does not use derivative instruments for speculative purposes. Interest Rate Risk Substantially all interest-bearing financial assets and liabilities of the Group are either based on floating rates or based on fixed rates with an interest term of less than one year, except for the fixed-rated Bonds #1 and #2 with an aggregated notional amount of €1,250 million, which have maturities of respectively seven and ten years. The Group entered into interest rate swap contracts in order to hedge the interest rate risk inherent to the fixed-rate Bond #1. As a result, the Group is exposed to fair value risk affecting fixed- rate financial assets and liabilities only through its fixed-rate Bond #2. As at 31 December 2020, the Group had an aggregated notional of €500 million fixed-to-floating interest rate swaps outstanding in relation to the fair value hedge of the €500 million Bond #1. The Group is exposed to cash-flow risk arising from net floating-rate positions. The Group was a net borrower in Euros at 31 December 2020 and 2019. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would have resulted in an increase/decrease of net interest income of €0.7 million based on the positions at 31 December 2020 (2019: €1.5 million). The Group was a net lender in Pound Sterling at 31 December 2020 and 2019. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would not have had a material impact on the net interest income based on the positions at 31 December 2020 and 2019. The Group was a net lender in US Dollar at 31 December 2020 and 2019. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would not have had a material impact on net interest income based on the positions at 31 December 2020 and 2019. The Group was a net lender in

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2020 UNIVERSAL REGISTRATION DOCUMENT