Euronext - 2020 Universal Registration Document

Financial Statements

Notes to the Consolidated Financial Statements

Set out below is the movement in the allowance for expected credit losses of trade and contract receivables:

2020 1,618 2,133

2019 1,533

In thousands of euros

As at 1 January

Provision for expected credit losses

407

Receivables written off during the year

(373)

(322)

AT 31 DECEMBER

3,378

1,618

Management considers the fair value of the trade and other receivables to approximate their carrying value. The significant changes in loss allowance provision are disclosed in Note 8.2. The information about the credit exposures of trade and other receivables are disclosed in Note 37.4.

NOTE 22 OTHER CURRENT ASSETS AND ASSETS HELD FOR SALE

Other current assets

2020 13,810

2019 12,057

In thousands of euros

Prepayments

Other

–

–

TOTAL

13,810

12,057

The increase in prepayments is primarily due to the acquisition of subsidiaries in 2020.

Assets held for sale

2020

2019 8,760 8,760

In thousands of euros

Investment in associate held for sale

– –

TOTAL

In 2019, the Group entered into a binding agreement to sell its 20% minority stake in EuroCCP. As a result of this agreement, the Group classified the investment at its expected proceeds of approximately €8.8 million as an asset held for sale as per 31 December 2019.

On 1 July 2020, the Group sold its 20% minority stake in associate EuroCCP to CBOE Global Markets, alongside the other EuroCCP shareholders, for a cash consideration of €8.8 million. Following the sale, the investment was derecognised.

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NOTE 23 DERIVATIVES FINANCIAL INSTRUMENTS

notional amount of €500.0million was -0.115%. The swaps are being used to reduce the variability of the fair value of the 1% fixed rate Bond (Senior Unsecured Note #1) attributable to the change in interest rate, allowing it to transform the fixed rate exposure to floating rate. There is an economic relationship between the hedged item and the hedging instrument as the terms of the interest rate swaps match the terms of the fixed rate Bond (i.e., notional amount, maturity, payment and reset dates). The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the interest rate swap is identical to the hedged risk component. To assess the hedge effectiveness, the Group compares the changes in the fair value of the hedging instrument against the changes in fair value of the hedged item attributable to the hedged risk.

The Group may use derivative instruments to manage financial risks relating to its financial positions or risks relating to its ongoing business operations. The Group’s risk management strategy and how it is applied to manage risk is further explained in Note 37. Derivatives designed as hedging instruments Fair value hedge At 31 December 2020, the Group had three interest rate swap agreements in place with a total notional amount of €500.0 million (2019: €500.0 million) whereby the Group receives an annual fixed interest rate of 1% and pays a variable rate of six-month EURIBOR, plus a weighted average spread of 0.3825%. At 31 December 2020, the rate applicable to the floating leg of the swap for the aggregated

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2020 UNIVERSAL REGISTRATION DOCUMENT