Euronext - 2020 Universal Registration Document

GLOSSARY, CONCORDANCE TABLES & ANNEX G

The fair value of the LTIP shares allocated during the period was determined using a probability evaluation model. The principal evaluation assumptions used in the model are as follows: 2020: The fair value of share awards and share options granted during the year was determined using a stochastic valuation model. The key assumptions used in the valuation were as follow:

SAYE Sharesave

LSEG LTIP Matching Shares

Deferred Bonus Plan

Plan LSEG LTIP Performance Shares

Restricted Share Award Plan

Date of grant

28-Apr-20 22-Apr-20 14-Sep-20 24-Nov-20 16-Mar-20

16-Mar-20

22-Apr-20

14-Sep-20

24-Nov-20

Grant date share price

£74.88 £76.22 £89.60 £76.16

£63.12

£63.12

£76.22

£89.60

£89.60

2 years to 3

0.9 year to 4.9

1.8 years to 3.8 years

Expected life

3.3 years 3 years 3 years 3.4 years

years 1 year to 3 years

years 0. 5 year to 3.5 years

Exercise price £56.00 to £58.09

nil

nil

nil

nil

nil

nil

nil

nil

Dividend yield

1.15% 1.12% 0.92% 0.96%

n.a.

1.11%

1.12%

0.92%

0.96%

Risk-free interest rate

0.09% to 0.10% 0.09% to 0.11% 0.11% to 0.21% -0.11% to 0.03% -0.02% to 0% 26.6% to 23.7% 23.7% to 32.1% 25.8% to 38.5% 25.8% to 41.2% 26.0% to 33.1%

0.09% 0.11% -0.12% 0.00%

Volatility

25% 29.10% 27.10% 26.80%

Fair value £20.18 to £21.45

n.a.

n.a.

n.a.

63.12 £61.05 to £62.42 £72.15 to £75.46 £86.76 to £89.19 £0.96 to £0.97

Fair value TSR

n.a.

£65.64 £76.80 £29.64

n.a.

n.a.

n.a.

n.a.

n.a.

Fair value EPS

n.a.

£73.71 £87.16 £74.01

n.a.

n.a.

n.a.

n.a.

n.a.

IFRS 2 – paragraphs 46 and 47 46: An entity shall disclose information that enables users of the Financial Statements to understand how the fair value of the goods or services received, or the fair value of the equity granted, during the period was determined. 47: If the entity has measured the fair value of goods or services received as consideration for equity instruments of the entity indirectly, by reference to the fair value of the equity instrument granted, to give effect to the principle in paragraph 46, the entity shall disclose at least the following: i. the option pricing model used and the inputs to that model, including the weighted-average share price, exercise price, expected volatility, option life, expected dividends, the risk-free interest rate and any other inputs to the model, including the method used and the assumptions made to incorporate the effects of expected early exercise; ii. how expected volatility was determined, including an explanation of the extent to which expected volatility was based on historical volatility; and iii. whether and how any other features of the option grant were incorporated into the measurement of fair value, such as a market condition. The volatility was calculated by a weekly analysis of the LSEG share price since its listing in July 2001. The fair value of the shares allocated during the period takes into account the vesting conditions linked to TSR. The employees who are allocated shares linked to the LTIP do not have the right to receive dividends declared by LSE during the vesting period. CONSOLIDATED FINANCIAL STATEMENTS APPROVAL The draft consolidated financial statements has been approved from the Board of Directors on 25 March 2021 and it has been authorized for publication on the same date (IAS 10). These consolidated financial statements as at 31 December 2020 represent in a true and correct way the equity and financial situation as well as the economic result at the aforesaid date.

Milan, 25 th March 2021 For the Board of Directors Chairman Andrea Sironi

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2020 UNIVERSAL REGISTRATION DOCUMENT