Euronext - 2020 Universal Registration Document

GLOSSARY, CONCORDANCE TABLES & ANNEX

The discount rate used was calculated mainly on the basis of market benchmarks relating to the risk-free rate of 3.73%, the market premium of 6.3% and the equity beta of 0.91%.

The test performed at 31 st December 2019 used the following key assumptions:

Key assumptions Discount rate: 9.3% Long-term growth rate: 1.8% Effective tax rate:

26.8% -33.4%*

Capital Markets / Information Services

Technology services

LSEGH(I) group

Post trade

€m

€m

€m

€m

Value in use (€m)

1,604.5

77.1

878.8

2,560.5

Carrying value Tangible assets/liabilities

28.2

5.5 0.6 0.2

19.7

53.4

Purchased intangibles

289.3

74

363.9 107.7

Deferred tax on purchased intangibles

81.6

25.9

Goodwill

490.4 889.4

24

452.4

Carrying value attributable to LSEG

30.3

572

1,491.7

Notional MI goodwill

64.5

0

0

64.5

0.103 953.9 872.3 732.2

0

0

Carrying value (incl. MI goodwill)

30.3 30.1

572

1,556.2 1,448.5

Carrying value (incl. MI goodwill) excluding deferred tax

546.1 332.7

Excess/(impairment)

47

1,112

The outcome of the test at 31 st December 2019 was satisfactory so no impairment of the value of goodwill was carried out.

NOTE 14 INVESTMENT IN ASSOCIATES

The following table shows the movements in Investment in associates.

December 2020 Investment in associates

December 2019 Investment in associates

In thousands of euros

Opening balance Capital additions

1,197 1,029

1,820

-

Share of profit

-

(681)

FX Calculated

(56)

58

DECEMBER 2020

2,170

1,197

The investment was done through the conversion of the loan to equity for £915 thousand that at 31 December 2019 was classified under “non-current assets: Amount due from associates”

The investment in associates is related to (i) MTS Associated Markets S.A. and (ii) The Hub Exchange Limited. During the year, the Group made an additional investment of £1 million in The Hub Exchange Limited (2019: nil).

G

* Tax rates applied depend on CGU.

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2020 UNIVERSAL REGISTRATION DOCUMENT