Euronext // 2021 Universal Registration Document

Operating and Financial Review

Overview

Exceptional Items

2021

2020 (4,338) (8,828)

2019 (5,671) (11,730)

In thousands of euros Restructuring costs Acquisition costs

(11,127) (27,843) (1,833)

Relocation data centre Basildon Claims provisions / Settlements

—

— —

628

(1,500)

Settlement Algomi investment and related items

— —

—

(1,341) (2,245)

Termination of sales contract

(172)

Write-off / impairment intangible assets

(6,995)

(1,549)

— —

Litigation provisions/settlements

710 187

(770) (244)

Onerous contract costs

(857)

Separation cost

(1,640)

—

—

Other

107

72

(27)

TOTAL

(47,806)

(17,330)

(21,871)

For the year ended 31 December 2021: In 2021, exceptional items included:

n €0.8 million of litigation provisions attributable to individual legal cases; n €0.2 million of costs related to onerous commercial contracts.

n €11.1million of restructuring costs, mainly related to expenses for employee termination benefits in the various Euronext locations, with the main impacts in VP Securities and Borsa Italiana Group; n €27.8 million of M&A costs in 2021, primarily related to the Borsa Italiana Group acquisition of major significance; n €1.8 million of partial accelerated depreciation of the right of use asset related to the relocation of Euronext’s Core Data Centre; n €0.6 million of reversal of claims provision related to the trading platform outage on 19 October 2020; n €7.0 million of impact from write-offs / impairments. This primarily relates to the impairment of the VP Securities brand; n €0.7 of release of litigation provisions attributable to individual legal cases; n €0.2million of reversal of onerous commercial contract provisions, that were recognised last year; n €1.6 million of cost incurred by Borsa Italiana Group in relation to the separation from LSEG. n €4.3 million of restructuring costs mainly related to expenses for employee termination benefits in the various Euronext locations, with the main impacts in VP Securities, Euronext Amsterdam and Euronext Paris; n €8.8 million of costs incurred for contemplated acquisitions of major significance to the Group, potentially changing the Group’s form or character (transformational acquisitions), which primarily relate to the acquisition of the Borsa Italiana Group; n €1.5 million of claims provision related to the trading platform outage on 19 October 2020; n €1.5 million of impact from the write-off / impairment of software; n €0.2 million of costs related to termination of contracts in Oslo Børs VPS; For the year ended 31 December 2020: In 2020, exceptional items included:

For the year ended 31 December 2019: In 2019, exceptional items included:

n €5.7 million of restructuring costs mainly related to expenses for employee termination benefits in the various Euronext locations; n €11.7 million of costs incurred for contemplated acquisitions of major significance to the Group, potentially changing the Group’s form or character (transformational acquisitions), which primarily relate to the acquisition of Oslo Børs VPS; n €1.3 million of settlement payment related to the investment in Algomi Ltd.; n €2.2 million related to the early termination of various IT contracts within Oslo Børs VPS; n €0.9 million of costs related to onerous commercial contracts. Euronext operating profit for the year ended 31 December 2021 was €579.3 million, a +30.2% increase compared to 2020. This increase was impacted by higher revenue due to the consolidation of the Borsa Italiana Group, a strong performance of non-volume related businesses and a solid organic growth in clearing activities which offset lower trading volumes across all asset classes except fixed income, compared to 2020. The higher revenues were partly offset by a €249.5 million increase in operating expenses due to the consolidation of the Borsa Italiana Group, Euronext Securities Copenhagen (since 4 August 2020) and 3Sens (part of Corporate Services) for €185.4 million, as well as integration costs related to these acquisitions. For the year ended 31 December 2020: Euronext operating profit for the year ended 31 December 2020 was €444.9 million, compared to €333.9 million for the year ended 31 December 2019, an increase of €111.1million or 33%. This impact was caused by an increase of €205.2 million in revenues, which was Operating Profit For the year ended 31 December 2021:

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2021 UNIVERSAL REGISTRATION DOCUMENT