Euronext - 2020 Universal Registration Document

Financial Statements

Notes to the Consolidated Financial Statements

NOTE 19 DEFERRED INCOME TAX

The analysis of deferred tax assets and deferred tax liabilities is as follows:

2020 20,844

2019 21,025

In thousands of euros

Deferred income tax assets (a)

(92,860)

(78,754)

Deferred income tax liabilities (a)

TOTAL NET DEFERRED TAX ASSETS (LIABILITIES)

(72,016)

(57,729)

(a) As shown in the balance sheet, after offsetting deferred tax assets and liabilities related to the same taxable entity.

2020

2019

In thousands of euros

Deferred tax assets/(liabilities): Property, plant and equipment

(2,461)

(2,571)

(93,673)

(78,419)

Intangible assets (a)

(20,789)

(16,435)

Investments (b)

Provisions and employee benefits

15,290

14,712

28,973

20,490

Other (c)

644

4,494

Loss carried forward (d)

DEFERRED TAX ASSETS (NET) (57,729) (a) The increase mainly relates to the recognition of a deferred tax liability resulting from the intangible assets recognised upon the acquisitions of Nord Pool and VP Securities in 2020. (b) The increase in investments mainly relates to the increase in the revaluation of assets measured at fair value through other comprehensive income (FVOCI) (Euroclear S.A./N.V. and Sicovam Holding S.A.). (c) The line “Other” primarily relates to the impact from contract liabilities (€17.8 million), currency movements on intercompany loans (€6.1 million [NOK and USD]) and intra Group and Group relief items (€3.8 million). (d) Losses carry forward mainly relate to losses carry forward recognised by investments in the USA, Singapore and the UK. (72,016)

For the year 2020, the Belgian corporate income tax rate has been decreased to 25% from 29.58% in 2019. The deferred tax assets and liabilities have been recognised at prevailing rates in the various countries.

For the year 2020, the Netherlands have withdrawn the announced rate decrease and maintained the corporate income tax rate at 25%. For the year 2021 the tax rate will remain 25%. For the year 2020, France has decreased the corporate income tax rate to 31% for turnover in excess of €250 million and as from the years 2021 and 2022, the corporate income tax rate will further decrease to 26.5% respectively 25%. The surcharge of 3.3% remains applicable.

2020

2019 (497)

In thousands of euros

Balance at beginning of the year Recognised in income statement

(57,729)

8

3,916

6,219

(23,827)

(61,208)

Reclassifications and other movements (a)

Exchange differences and other

2,952

139

Charge related to other comprehensive income

2,672

(2,382)

BALANCE AT END OF THE YEAR (57,729) (a) In 2020, the line “Reclassifications and other movements” was impacted by the acquisitions of Nord Pool and VP Securities for €24.1million. In 2019, the line “Reclassifications and other movements” was impacted by the acquisition of Oslo Børs VPS for €57.7 million. (72,016)

As per 31 December 2020 and 2019, no losses were unrecognised by the Group that can be carried forward against future taxable income. The majority of the net deferred tax asset is expected to be recovered or settled after more than twelve months.

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2020 UNIVERSAL REGISTRATION DOCUMENT