Euronext - 2020 Universal Registration Document

Financial Statements 8 Notes to the Consolidated Financial Statements

NOTE 12 EXCEPTIONAL ITEMS

Year ended 31 December 2020 31 December 2019

In thousands of euros

Restructuring costs

(4,338)

(5,671)

Acquisition costs

(8,828)

(11,730)

Claims provisions/settlements

(1,500)

–

Write-off/impairment intangible assets

(1,549)

–

Settlement Algomi investment and related items

–

(1,341)

Termination of contracts

(172)

(2,245)

Litigation provisions/settlements

(770)

–

Onerous contract costs

(244)

(857)

Other

72

(27)

(21,871)

TOTAL

(17,330)

In 2019, exceptional items included: n €5.7 million of restructuring costs mainly related to expenses for employee termination benefits in the various Euronext locations; n €11.7 million of costs incurred for contemplated acquisitions of major significance to the Group, potentially changing the Group’s form or character (transformational acquisitions), which primarily relate to the acquisition of Oslo Børs VPS; n €1.3 million of settlement payment related to the investment in Algomi Ltd.; n €2.2 million related to the early termination of various IT contracts within Oslo Børs VPS; n €0.9 million of costs related to onerous commercial contracts. If the exceptional items were presented by nature, salaries and employee benefits would increase by €4.3 million (2019: €5.7 million), depreciation and amortization would increase by €1.5 million (2019: €0.0 million) and other operational expenses would increase by €11.5 million (2019: €16.2 million). They relate to both income and expenses.

In 2020, exceptional items included: n €4.3 million of restructuring costs mainly related to expenses for employee termination benefits in the various Euronext locations, with the main impacts in VP Securities, Euronext Amsterdam and Euronext Paris; n €8.8 million of costs incurred for contemplated acquisitions of major significance to the Group, potentially changing the Group’s form or character (transformational acquisitions), which primarily relate to the acquisition of the Borsa Italiana Group (see Note 2); n €1.5 million of claims provision related to the trading platform outage on 19 October 2020; n €1.5 million of impact from the write-off/impairment of software (see Note 18); n €0.2 million of costs related to termination of contracts in Oslo Børs VPS; n €0.8 million of litigation provisions attributable to individual legal cases; n €0.2 million of costs related to onerous commercial contracts.

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2020 UNIVERSAL REGISTRATION DOCUMENT