Euronext // 2021 Universal Registration Document

Financial Statements

Notes to the Consolidated Financial Statements

In 2021, dividend income relates to dividends received from the Group’s non-current equity investments at FVOCI in Euroclear S.A./ N.V. and Sicovam Holding S.A.

In 2020, dividend income relates to dividends received from the Group’s non-current equity investments at FVOCI in Sicovam Holding S.A.

Gain on disposal of subsidiaries

Year ended 31 December 2021 31 December 2020

In thousands of euros

Gain on disposal of subsidiaries

2,681

—

TOTAL

2,681

—

During the year, the Group disposed its interests in subsidiaries Centevo AB and Oslo Market Solutions AS.

The combined proceeds from these disposals amounted to €5.9 million (net of cash), whereas the combined net assets disposed of amounted to €3.2 million (net of cash). This resulted in a combined result from disposal of €2.7 million.

NOTE 15 INCOME TAX EXPENSE

2021

2020

In thousands of euros

Current tax expense

(195,448)

(126,073)

Deferred tax expense

36,804

3,916

TOTAL

(158,644)

(122,157)

The actual tax charge incurred on the Group’s profit before income tax differs from the theoretical amount that would arise using the weighted average tax rates applicable to profit before income tax of the consolidated entities as follows:

Reconciliation of effective tax charge

2021

2020

In thousands of euros

Profit before income tax

580,732

442,704

Income tax calculated at domestic tax rates applicable to profits in the respective countries

(143,371)

(118,302)

Tax effects of: (De) recognition tax losses (a)

(5,596)

—

Non-deductible expenses (b)

(5,259)

(3,021)

8

Other tax exempt income (c)

2,035

1,135

Over provided in prior years (d)

1,903

—

Other(e)

(8,356)

(1,969)

TOTAL (122,157) (a) Derecognition of tax losses relates to tax losses in the UK, US, France, Hong Kong and Singapore as it is not considered probable at this moment that these deferred tax assets can be used to offset future taxable income. (b) In 2021 and 2020, non-deductible expenses mainly relate to non-deductible M&A expenses. (c) In 2021 and 2020, other tax exempt income mainly relates to dividends and sales proceeds from investments. (d) In 2021, “over provided in prior years” relates to release of tax following the filing of tax returns. In 2020, “over provided in prior years” and “under provided” were balanced. (e) As from 2014, the Company applies the statutory tax rates without surcharges (in Portugal. Italy and France) to the profit before income tax to calculate tax at domestic rates. The surcharges (€11.9 million) have been included in the line “Other” Furthermore the line “Other” includes, amongst others, the impacts of statutory tax rate changes in the Netherlands, France and the UK (see Note 19) on deferred tax positions (€0.4 million) and tax credits of €2.5 million. (158,644)

The effective tax rate decreased from 27.6% for the year ended 31 December 2020 to 27.3% for the year ended 31 December 2021.

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2021 UNIVERSAL REGISTRATION DOCUMENT