Euronext - 2020 Universal Registration Document

Financial Statements 8 Notes to the Consolidated Financial Statements

NOTE 20 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

As at 31 December 2020

As at 31 December 2019

In thousands of euros

Euroclear S.A./N.V.

145,252

140,401

Sicovam Holding S.A.

58,913

57,061

Algomi Ltd.

–

–

Other

341

359

TOTAL

204,506

197,821

In 2020, the Group considered twomost recent transactions observed in 2019 and 2018, while two transactions observed in 2018 were considered in 2019 for the determination of the fair value in addition to its primary valuation technique. The Group applied a weighted approach taking into account an illiquidity discount accounting for the limited number of transactions. This resulted in a total valuation of Euroclear S.A./N.V. of €4.1 billion (2019: €3.9 billion), and to an increase in fair value of Euronext N.V./S.A.’s direct- and indirect investments of €6.7 million (2019: €9.1 million) in 2020. This revaluation was recorded in Other Comprehensive Income. Algomi Ltd. On 6 March 2020, the Group sold its 7.74% minority stake in Algomi Ltd. to BGC Partners for a consideration of €2.6 million, comprising €1.9 million of cash receipt and €0.7 million of deferred receivable, pending any post-transaction settlements. In Q1 2020, the investment was remeasured to fair value through Other Comprehensive Income at €2.6 million. Subsequently, the investment was derecognised and the realised portion of the historical revaluation gain (equal to the cash receipt of €1.9 million) was transferred within equity from FVOCI reserve to retained earnings.

The Group’s financial assets at fair value through other comprehensive income primarily include long-term investments in unlisted equity securities, which the Group has irrevocably elected at initial recognition to recognise in this category. The classification of the measurement within the fair value hierarchy is presented in Note 35. Euroclear S.A./N.V. and Sicovam Holding S.A. As of 31 December 2020, the Group holds a 3.53% ownership interest in Euroclear S.A./N.V. (31 December 2019: 3.53%), an unlisted company involved in the settlement of securities transaction and related banking services. The Group also holds a 9.60% ownership interest in Sicovam Holding S.A. (31 December 2019: 9.60%), resulting in an indirect 1.53% interest in Euroclear S.A./N.V. (31 December 2019: 1.53%). The common stock of Sicovam Holding S.A. and Euroclear S.A./N.V. are not listed. The Group established a standardised multi-criteria approach valuation for financial institutions based on the Gordon Growth Model valuation technique as its primary valuation method and the regression valuation technique (P/BV and ROE) and tradingmultiples as control methods.

NOTE 21 TRADE AND OTHER RECEIVABLES

2020

2019 93,856 19,878 (1,618)

In thousands of euros

Trade receivables

107,633 24,926 (3,378) 129,181

Contract receivables

Allowance for expected credit losses Trade and contract receivables net Tax receivables (excluding income tax)

112,116

39,311 12,669

8,145 5,115

Other receivables

TOTAL

181,161

125,376

Trade receivables are non-interest bearing and generally on terms of 30 to 90 days. 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).

The significant changes in trade and contract receivables are disclosed in Note 8.2.

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2020 UNIVERSAL REGISTRATION DOCUMENT