Euronext - 2020 Universal Registration Document

Financial Statements 8 Notes to the Consolidated Financial Statements

8.2 Contract Balances The Group has recognised the following assets and liabilities related to contracts with customers:

31 December 2020 31 December 2019

1 January 2019

In thousands of euros

Trade receivables (Note 21)

107,633

93,856

70,815

Contract receivables (Note 21)

24,926

19,878

21,996

Contract liabilities (Note 33)

106,874

108,620

96,948

caused by the impacts from Oslo Børs and Commcise Software Ltd. The amount of revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods was considered not significant (2019: not material). Performance Obligations Information about the Group’s performance obligations are described in Note 3 “Significant accounting policies and judgements”. The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) are as follows: 8.3

Trade receivables are non-interest bearing and are generally due on terms of 30 to 90 days and represent amounts in respect of billed revenue, for which the Group has an unconditional right to consideration (i.e. only the passage of time is required before payment of the consideration is due). Trade receivables increased by €13.8 million, which is almost fully attributable to the acquisitions of Nord Pool and VP Securities, partly offset by foreign exchange impacts in Oslo Børs. Contract receivables represent amounts in respect of unbilled revenue, for which the Group has an unconditional right to consideration (i.e. only the passage of time is required before payment of the consideration is due). Contract receivables increased by €5.0million, primarily caused by the acquisitions of Nord Pool and VP Securities for €2.8 million. In 2020, €3.4million (2019: €1.6million) was recognised as provision for expected credit losses on trade and contract receivables. The increase in loss allowance provision, was due to i) a higher customer base in general, ii) longer period of amounts outstanding, iii) adjustment of historical loss rates for non-trading customers to reflect increased risk in current economic environment and iv) increase of individually assessed customers at risk (see Notes 21 and 37.4). Contract liabilities primarily relate to received consideration (or an amount of consideration is due) from customers for the initial (or subsequent) listing of equity securities, bond lifetime fees, indices licenses, software maintenance & hosting and corporate services. In 2020, the newly acquired subsidiaries didn’t comprise substantial contract liabilities and therefore did not increase the contract liability position. The decrease of €1.7 million in contract liabilities was primarily attributable to foreign exchange impacts in Oslo Børs. Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period amounted to €55.4 million (2019: €47.1 million). This increase is primarily

31 December 2020 31 December 2019

In thousands of euros

Within one year

67,919

67,902

More than one year

57,772

61,384

TOTAL

125,691

129,286

The remaining performance obligations expected to be recognised in more than one year primarily relate to the initial (or subsequent) listing of equity securities and bond lifetime fees which are recognised over the related listing period. Other performance obligations included in this category are software maintenance & hosting contracts, Indices license contracts and corporate services license contracts. As less fees related to the initial or subsequent listing of equity securities were added to the long-term listing admission fees balance during the year than that were released to the income statement, the long- term listing admission fees balance decreased. The approach of the expiry date of certain long-term technology solutions contacts also contributed to a decrease in the remaining performance obligations expected to be recognised.

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2020 UNIVERSAL REGISTRATION DOCUMENT