Euronext // 2021 Universal Registration Document

Operating and Financial Review

Overview

Interest Rate Risk Substantially all interest-bearing financial assets and liabilities of the Group are either based on floating rates or based on fixed rates with an interest term of less than one year, except for the fixed rated Bonds #1 to #5 with an aggregated notional amount of €3,050 million, which have maturities between 5 and 20 years. The Group entered into interest rate swap contracts in order to hedge the interest rate risk inherent to the fixed rate Bond #1. As a result, the Group is exposed to fair value risk affecting fixed- rate financial assets and liabilities through its remaining fixed rate Bonds #2 to #5. As at 31 December 2021, the Group had an aggregated notional of €500 million fixed-to-floating interest rate swaps outstanding in relation to the fair value hedge of the €500 million Bond #1. The Group is exposed to cash flow risk arising fromnet floating-rate positions. The Group was a net borrower in Euros at 31 December 2021 and 2020. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would not have had a material impact on net interest income based on the positions at 31 December 2021 (2020: €0.7 million). The Group was a net lender in Pound Sterling at 31 December 2021 and 2020. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would not have had a material impact on the net interest income based on the positions at 31 December 2021 and 2020. The Group was a net lender in US Dollar at 31 December 2021 and 2020. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would not have had a material impact on net interest income based on the positions at 31 December 2021 and 2020. The Group was a net lender in Norwegian Kroner at 31 December 2021 and 2020. The sensitivity of net interest income to a parallel shift in the interest curves is that a 0.5% increase/decrease of the rate would have resulted in an increase/decrease of net interest income of €0.4 million based on the positions at 31 December 2021 (2020: €0.4 million). The fluctuation of the DKK against the EUR is set within the bandwidth +/-2.25% as an exchange rate mechanism established by the Denmark’s Nationalbank. Therefore, currency risk sensitivity inherent to the Group exposure to that currency is deemed to be irrelevant.

Interest rate risk – CCP clearing business The Group’s CCP faces interest rate exposure through the impact of changes in the reference rates used to calculate member liabilities versus the yields achieved through their predominantly secured investment activities. In the Group’s CCP, interest bearing assets are generally invested in secured instruments or structures and for a longer term than interest bearing liabilities, whose interest rate is reset daily. This makes investment revenue vulnerable to volatility in overnight rates and shifts in spreads between overnight and term rates. On daily basis the interest rate risk associated to investments is monitored via capital requirements. The Group’s CCP has an investment policy, mitigating market risks. The Group’s CCP investments generally have an average duration of less than one year and are held until maturity. Losses will not materialise unless the investment portfolio is liquidated before maturity or in an event of portfolio rebalancing before maturity. In case of a forced liquidation of the CCP’s financial investment portfolio before maturity to provide necessary liquidity, the CCP may face higher interest rate exposure on its financial investment portfolio. The interest rate exposure of the investment portfolio is predominantly at fixed rates (only a negligible part is at floating rates) at the amounts and maturities as disclosed in 7.1.14 - Liquidity Rick CCP clearing business . As per 31 December 2021, an increase/decrease of the rate by 100 basis points would have an increasing/decreasing impact on the investment portfolio market value of €47 million or 1.03%. Liquidity Risk The Group would be exposed to a liquidity risk in the case where its short-term liabilities become, at any date, higher than its cash, cash equivalents, short-term financial investments and available bank facilities and in the case where the Group is not able to refinance this liquidity deficit, for example, through new banking lines. Cash, cash equivalents and short-term financial investments are managed as a global treasury portfolio invested in non-speculative financial instruments, readily convertible to cash, such as bank balances, moneymarket funds, overnight deposits, termdeposits and other money market instruments, thus ensuring a very high liquidity of the financial assets. The Group’s policy is to ensure that cash, cash equivalents and available bank facilities allow the Group to repay its financial liabilities at all maturities, even disregarding incoming cash flows generated by operational activities, excluding the related party loans granted by the Group’s subsidiaries to its Parent.

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The net position of current financial assets, financial liabilities and available credit facilities, excluding working capital items, as of 31 December 2021 and 2020 is described in the table below:

2021

2020

In thousands of euros

Cash cash equivalents and short term investments

804,361

629,469

Available revolving credit facility (“RCF”)

600,000

400,000

Available bridge loan facility

—

4,400,000

Financial debt (long-term and short-term borrowings)

(3,061,750)

(1,280,753)

NET POSITION

(1,657,389)

4,148,716

to pre-finance the acquisition of the Borsa Italiana Group. In 2021, the Group repaid the bridge loan facility in full. References are made to Section 7.1.11 – Facilities Agreements and Bonds for more details on the Bridge Loan Facility.

The Group has a €600 million revolving credit facility (2020: €400 million) that can be used for general corporate or M&A purposes. As of 31 December 2021, the Group did not have any amounts drawn under the facility. In 2020, the Group had obtained the availability of a €4,400 million bridge loan facility, which it used

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2021 UNIVERSAL REGISTRATION DOCUMENT