Euronext // 2021 Universal Registration Document

Financial Statements

Notes to the Consolidated Financial Statements

F) Property, plant and equipment Property, plant and equipment is carried at historical cost, less accumulated depreciation and any impairment loss. The cost of purchased property, plant and equipment is the value of the consideration given to acquire the assets and the value of other directly attributable costs. All repairs and maintenance costs are charged to expense as incurred. Property, plant and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, except land and construction in process assets, which are not depreciated. The estimated useful lives, which are reviewed annually and adjusted if appropriate, used by the Group in all reporting periods presented are as follows: n buildings (including leasehold improvements) 5 to 40 years; n IT equipment 2 to 3 years; n other equipment 5 to 12 years; n fixtures and fittings 4 to 10 years. The Group recognises right-of-use assets at the commencement date of the lease ( i.e. , the date the underlying asset is available for use). Right-of-use assets are measured at cost less any accumulated depreciation and if necessary any accumulated impairment. The cost of a right-of-use asset comprise the present value of the outstanding lease payments, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs and an estimate of costs to be incurred in dismantling or removing the underlying asset. If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the right- of-use asset is depreciated to the end of the useful life of the underlying asset. Otherwise the right-of-use asset is depreciated to the end of the lease term. (ii) Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable payments that depend on an index or rate and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments for penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs. In this context, the Group also applies the practical expedient that the payments for non-lease components are generally recognised as lease payments. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. G) Leases (i) Right-of-use assets

with the most directly comparable IFRS measures. APMs do not have standardised meaning under IFRS and therefore may not be comparable to similar measures presented by other companies. The Group measures performance based on EBITDA1, as management believes that this measurement is most relevant in evaluating the operating results of the Group. This measure is included in the internal management reports that are reviewed by the CODM. Reference is made to one of the below definitions, whenever the term “EBITDA” is used throughout these Consolidated Financial Statements: n EBITDA1: Operating profit before (i) exceptional items and (ii) depreciation and amortisation, taking into account the lines described in the Consolidated Statement of Profit or Loss; n EBITDA2: Profit before (i) interest expense, (ii) tax, (iii) any share of the profit of any associated company or undertaking, except for dividends received in cash by any member of the Group, (iv) exceptional items; and (v) depreciation and amortisation; n EBITDA3: EBITDA as defined in the Share Purchase Agreements of the acquired companies involved. E) Foreign currency transactions and translation (i) Functional and presentation currency These Consolidated Financial Statements are presented in Euro (“EUR”), which is the Group’s presentation currency. The functional currency of each Group entity is the currency of the primary economic environment in which the entity operates. (ii) Transactions and balances Foreign currency transactions are converted into the functional currency using the rate ruling at the date of the transactions. Foreign exchange gains or losses resulting from the settlement of such transactions and from the translation at year-end rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement. Exceptions to this are where the monetary items form part of the net investment in a foreign operation or are designated as hedges of a net investment, in which case the exchange differences are recognised in Other Comprehensive Income. (iii) Group companies The results and financial position of Group entities that have a functional currency different from the presentation currency are converted into the presentation currency as follows: n assets and liabilities (including goodwill) are converted at the closing balance sheet rate; n income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and n all resulting exchange differences are recognised as currency translation adjustments within Other Comprehensive Income.

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2021 UNIVERSAL REGISTRATION DOCUMENT