Euronext - 2020 Universal Registration Document

Financial Statements 8 Notes to the Consolidated Financial Statements

Notes to the Company Financial Statements

NOTE 41 BASIS OF PREPARATION

Valuation of investments in consolidated subsidiaries

Euronext N.V. is a Dutch public company with limited liability ( naamloze Vennootschap ) which has its registered office in Amsterdam under Chamber of Commerce number 60234520. The Company Financial Statements of Euronext N.V. (hereafter: the Company) have been prepared in accordance with Part 9, Book 2 of the Dutch Civil Code. In accordance with sub 8 of article 362, Book 2 of the Dutch Civil Code, the Company’s Financial Statements are prepared based on the accounting principles of recognition, measurement and determination of profit, as applied in the Consolidated Financial Statements. These principles also include the classification and presentation of financial instruments, being equity instruments or financial liabilities. In case no other policies arementioned, refer to the accounting policies as described in the accounting policies in the Consolidated Financial Statements of this annual report. For an appropriate interpretation, the Company Financial Statements of Euronext N.V. should be read in conjunction with the Consolidated Financial Statements.

Investments in consolidated subsidiaries are presented at net asset value. Net asset value is based on the measurement of assets, provisions and liabilities and determination of profit based on the principles applied in the Consolidated Financial Statements. If the valuation of a consolidated subsidiary based on the net asset value is negative, it will be stated at nil. If and insofar the Company can be held fully or partially liable for the debts of the consolidated subsidiary, or has the firm intention of enabling the consolidated subsidiary to settle its debts, a provision is recognised for this. In determining the value of consolidated subsidiaries with a negative equity, any non-current loans, issued to the consolidated subsidiary, that should be seen as part of the net investment are taken into account. Non-current loans are considered to be part of the net investment if these loans are not expected to be settled in the near future nor planned to be settled in the near future.

NOTE 42 NET TURNOVER

2020

2019

In thousands of euros

Market Data revenues

125,868

117,184

Recharge of Market Data revenues

(125,868)

(117,184)

TOTAL

–

–

Euronext N.V. receives market data revenues. The subsidiaries charge Euronext N.V. as market data providers. Euronext N.V. does not charge its subsidiaries a fee for its role of administering the

sale of market data to third parties and as such does not recognise a margin on the sales.

NOTE 43 OTHER OPERATING EXPENSES

2020 (267)

2019

In thousands of euros

Systems and communications

(94)

Professional Services

(14,620)

(16,984)

Other expenses

(1,762)

(3,318)

TOTAL

(16,649)

(20,396)

Number of employees Euronext N.V. had no employees during 2020 and 2019. The remuneration of the Supervisory Board is included in other expenses.

In 2020, professional services expenses contains €8.8 million of acquisition costs (2019: €11.7 million). In 2019, other expenses contains €1.3 million that is related to a settlement payment regarding the investment in Algomi Ltd..

288

2020 UNIVERSAL REGISTRATION DOCUMENT