Euronext // 2021 Universal Registration Document

Operating and Financial Review

Material Contracts and Related Party Transactions

Estimating the Incremental Borrowing Rate The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (“IBR”) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

The IBR therefore reflects what the Group “would have to pay”, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using the observable inputs (such as market interest rates) when available and makes certain entity- specific estimates if needed.

7.2 Material Contracts and Related Party Transactions

7.2.1 MATERIAL CONTRACTS The major contracts for Euronext, entered into the ordinary course of business, but essential for its activity as a regulated markets operator and CSD, are: n the clearing agreements signed with LCH SA; n the clearing agreement (for Cash products) signed with SIX following OB VPS acquisition; n the clearing agreements signed with NASDAQ following OB VPS acquisition; n the post-trade services agreement signed with EuroCCP following the acquisition of Euronext Dublin; n the clearing agreements signed with EuroCCP following OB VPS acquisition; n the clearing agreements signed with LCH Ltd following OB VPS acquisition; n the clearing agreements signed between MTS and LCH SA; n the agreement related to the interoperability link between Euronext Clearing (CC&G) and LCH SA: Service agreement for Allied Clearing House of the LCH Clearnet SA System; n the Data Centre Services agreement signed with ICE; n the Cloud Enterprise agreement signed with Amazon Web Services; n the Disaster Recovery Enterprise agreement signed with Equinix; n the SOC Enterprise agreement signed with Cap Gemini; n the CSD mainframe Enterprise agreements signed with IBM following OB VPS and VP Securities acquisitions; n the Data Centre Services agreement signed with Aruba; n the IT Outsourced agreement signed with SIA in scope of the Borsa Italiana Group acquisition. The Clearing Agreements are referred to in Section 1.3.7 – Post Trade and Section 7.1.5 – Key Factors Affecting Businesses and Results of Operations .

7.2.2 RELATED PARTY TRANSACTIONS Euronext has related party relationships with its associates and joint ventures, as disclosed in Note 36 of the Consolidated Financial Statements. The other related parties disclosure relates entirely to the key management of Euronext. For the transactions with its key management personnel, refer to Section 4.4 – Remuneration Report of this Universal Registration Document. From the IPO on 20 June 2014, the transactions with ICE do not qualify as “related party transactions” under IAS 24. Nevertheless the agreements between Euronext and ICE were in force after the IPO. Some of them are long term agreements. Some of these services have been progressively terminated and replaced over the period 2014-2016. Over the year 2021, services received from or rendered to ICE include the use of Data centre service, Colocation, Connectivity, UTP and other intellectual property rights as well as ancillary services. As at 31 December 2021, the following agreements remain active n data Centre Services Agreement; n colocation Agreement; n connectivity Agreement; n UTP and Trading Technology Licence Deed; n intellectual Property Agreement; n Euronext Equity Index Trademark Licence Agreement. Data Centre Services Agreement ICE provides data centre services to Euronext from the Basildon site. Specifically, ICE houses the data centre equipment in the Data Centre and provides sub-services, such as power, access, physical security, environment, fire protection, connectivity, monitoring, support, remote hands, installation, receiving and warehouse space. The agreement will subsist for an initial term of five years, starting 1 April 2014, with automatic renewal for a further five-year period, unless notice of termination is provided by either party at least twelve months before expiry of the initial term but no earlier than 24 months before the end of the initial term. ICE will guarantee to continue providing the services for a further two-year period from the date on which notice of non-renewal is received. Accordingly,

7

209

2021 UNIVERSAL REGISTRATION DOCUMENT