Euronext - 2020 Universal Registration Document

Operating and Financial Review 7 Overview

Cash, cash equivalents and short-term financial investments are managed as a global treasury portfolio invested in non-speculative financial instruments, readily convertible to cash, such as bank balances, money market funds, overnight deposits, term deposits and other money market instruments, thus ensuring a very high liquidity of the financial assets. The Group’s policy is to ensure that cash, cash equivalents and available bank facilities allow the Group to repay its financial liabilities at all maturities, even disregarding incoming cash flows generated by operational activities, excluding the related party loans granted by the Group’s subsidiaries to its Parent.

Norwegian Kroner 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 €0.4 million based on the positions at 31 December 2020 (2019: €0.3 million). Liquidity Risk The Group would be exposed to a liquidity risk in the case where its short-term liabilities become, at any date, higher than its cash, cash equivalents, short-term financial investments and available bank facilities and in the case where the Group is not able to refinance this liquidity deficit, for example, through new banking lines.

The net position of current financial assets, financial liabilities and available credit facilities, excluding working capital items, as of 31 December 2020 and 2019 is described in the table below:

2020

2019

In thousands of euros

Cash cash equivalents and short term investments

629,469

369,822

Available revolving credit facility (RCF)

400,000

400,000

Available bridge loan facility

4,400,000

–

Financial debt (long-term and short-term borrowings)

(1,280,753)

(1,018,277)

(248,455)

NET POSITION

4,148,716

The increase in net position primarily relates to the €4.4 billion bridge loan facility dedicated solely for the acquisition of the Borsa Italiana Group. As of 31 December 2020, the Group did not have any amounts drawn under the facility.

Depending on closing of the Borsa Italiana Group transaction, the initial bridge loan facility financing will be replaced by long- term financing through a mix of (i) existing available cash, (ii) new debt and (iii) new equity to be issued, which comprises a private placement to long-term strategic investors CDP Equity S.p.A. and Intesa Sanpaolo S.p.A. and a rights offer to Euronext’s shareholders.

References are made to section 7.1.11 – Facilities Agreement and Bonds for more details on the Bridge Loan Facility. The table below summarises the maturity profile of the Group’s financial liabilities as of 31 December 2020 and 2019 based on contractual undiscounted payments, including principal - and interest amounts, expected throughout the life of the obligations:

Maturity between 1 and 5 years

Maturity < 1 year

Maturity > 5 years

Total

In thousands of euros

2020 Trade and other payables

185,837

–

–

185,837

521

–

–

521

Other current financial liabilities

Borrowings

13,548

553,750

783,750

1,351,048

Lease liabilities

15,900

33,468

1,583

50,951

Other non-current financial liabilities

–

–

–

–

2019 Trade and other payables

117,298

–

–

117,298

Other current financial liabilities

30,675

–

–

30,675

Borrowings

10,625

42,500

1,033,125

1,086,250

Lease liabilities

13,970

40,000

1,180

55,150

Other non-current financial liabilities

–

–

–

–

204

2020 UNIVERSAL REGISTRATION DOCUMENT