Euronext - 2020 Universal Registration Document

Other Information 9 Independent auditor’s report

MEASUREMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Risk

Euronext holds a direct interest in Euroclear S.A. and an indirect minority interest in Euroclear S.A. through Sicovam Holding S.A. As described in note 20 to the financial statements this investment is classified as a financial asset at fair value through other comprehensive income.

As Euroclear is a non-listed company, Euronext applies an internally developed model to estimate the fair value, as disclosed in note 35 to the financial statements. Since 2018, a weighted approach is applied which is based on the return on equity, expected dividend growth rate (non-observable parameters) and cost of capital of comparable regulated entities and market observable transactions less a discount for illiquidity. In 2020, Euronext revalued its interest by EUR 7 million, increasing the fair value to EUR 204 million. The determination of the fair value of the interest in Euroclear involves significant management judgment and assumptions as certain unobservable inputs are used. The use of different valuation techniques and assumptions could produce significantly different estimate of fair value. Given the inherent subjectivity we determined this a key matter for our audit. Our audit approach Our audit procedures comprised, among others, an evaluation of the methodology and the appropriateness of the valuation model

for consistency and an assessment against generally accepted market practice and inputs used to value the investments. Further, we used our valuation specialists to independently evaluate the valuation performed. As part of these audit procedures we tested the reasonability of key inputs used in the valuation such as the market observable transfers, and the non-observable parameters, the return on equity and expected dividend growth rates. Finally, we evaluated the completeness and appropriateness of the disclosures related to financial assets at fair value through other comprehensive income. We found the valuation techniques used to be adequate, and the key inputs and fair value of the financial assets at fair value through other comprehensive income reasonable. The disclosures are in accordance with the requirements under EU-IFRS.

Key observations

RELIABILITY, AVAILABILITY AND CONTINUITY OF THE IT ENVIRONMENT Risk

The activities and financial reporting of Euronext N.V. are highly dependent on the reliability and continuity of the IT environment. Effective general IT controls with respect to change management, logical access, infrastructure and operations, secure to a large extent the integrity and continuity of the IT systems as well as the operating effectiveness of the automated controls. Furthermore, the increased granularity of financial and non-financial data are important to stakeholders and supervisors and require processing of high quality data. As described in the risk management section 2 in the universal registration document, the IT environment and the IT organization of Euronext N.V. are constantly changing in the context of process improvement, digitization and occasional incident repair and remediation. During these changes there is a risk that the generic IT control measures may not always operate as intended which could impact the reliability, availability and continuity of Euronext’s systems relevant for our audit of the financial statements. Therefore we identified this as a key audit matter. Our audit approach With the assistance of our IT audit specialists, we assessed the reliability, availability and continuity of the IT environment, to the extent necessary for the scope of our audit of the financial statements. In this context, we evaluated design and implementation of the IT processes and tested the operating effectiveness of the general IT controls. In some areas we performed additional substantive procedures on access management, cyber security, security event monitoring and segregation of duties for the related systems. We also assessed the possible impact of changes during the year resulting from the internal transformation activities and remedial measures on the operating effectiveness of general IT controls and the automated controls.

Key observations

Our testing of the general IT controls and the other tests performed, provided sufficient evidence to enable us to rely on the adequate and continued operation of the IT systems relevant for our audit of the financial statements.

REPORT ON OTHER INFORMATION INCLUDED IN THE UNIVERSAL REGISTRATION DOCUMENT In addition to the financial statements and our auditor’s report thereon, the universal registration document contains other information that consists of: n the managing board report within the meaning of section 2:391 of the Dutch Civil Code, consisting of sections 1, 2, 3, 4.1, 4.2, 5.1, 5.2, 6 and 7; n the Report of the supervisory board (section 4.3); n the remuneration report (section 4.4); n the Pro Forma Combined financial information (section 5.3 and 5.4); n other information as required by Part 9 of Book 2 of the Dutch Civil Code.

Based on the following procedures performed, we conclude that the other information: n is consistent with the financial statements and does not contain material misstatements; n contains the information as required by Part 9 of Book 2 and Sections 2:135b and 2:145 sub-section 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 and Section 2:135b sub-Section 7 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements.

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2020 UNIVERSAL REGISTRATION DOCUMENT