EURONEXT_Registration_Document_2017

5

OPERATING AND FINANCIAL REVIEW

Overview

2017 (2,373)

2016 (2,142)

In thousands of euros

Interest expense

Other finance costs

(1,180)

-

Finance costs

(3,553)

(2,142)

Interest income

314

572

Gain/ (loss) on disposal of treasury investments

(5)

-

Net foreign exchange (loss)/gain

(356)

764

Other net financing income/(expense)

(47)

1,336

TOTAL

(3,600)

(806)

Result from Available-for-Sale Financial Assets In 2017, the €48.3 million of results from available-for-sale financial assets mainly related to the following items:  €40.6 million capital gain from the swap of the 2.31% stake in LCH group for 11.1% stake into LCH S.A.;  €1.7 million of deferred consideration of the sale of some LCH. Clearnet Ltd share to LSE in 2013;  €6.1 million of dividends received from Euroclear plc, LCH Group Ltd. and Sicovam Holding S.A. Profit before Income Tax Euronext profit before income tax for the year ended 31 December 2017 was €311.1 million, compared to €264.0 million for the year ended 31 December 2016, an increase of €47.1 million or +17.8%.

Income Tax Expense Euronext’s income tax expense for the year ended 31 December 2017 was €68.9million, compared to €67.0million for the year ended 31 December 2016, an increase of €1.9 million or 2.9%. Euronext’s effective tax rate was 22.1% for the year ended 31 December 2017 compared to 25.4% for the year ended 31 December 2016. The decrease of the effective tax rate in 2017 is primarily attributable to:  the release of a €20.4 million tax provision due to the lapse of the statute of limitations;  a positive tax impact from the partially exempt capital gain recognized on the LCH swap in December 2017. Profit for the Year Euronext reported profit for the year ended 31 December 2017 was €242.2 million, compared to €197.0 million for the year ended 31 December 2016, an increase of €45.2million or 22.9%. Of this profit, €241.3 million was attributable to the shareholders of the parent.

YEAR ENDED 31 DECEMBER 2016 COMPARED TO YEAR ENDED 31 DECEMBER 2015. The table below sets forth Euronext’s results of operations for the years ended 31 December 2016 and 2015.

YEAR ENDED 31 DECEMBER 2016 31 DECEMBER 2015

In thousands of euros

Revenue

496,436

518,547

TOTAL REVENUE

496,436

518,547

Salaries and employee benefits

(99,776)

(112,218)

Depreciation and amortisation

(15,088)

(17,071)

Other operational expenses

(112,766)

(122,487)

Operating profit before exceptional items

268,806

266,771

Exceptional items

(10,038)

(28,659)

Operating profit

258,768

238,112

Finance costs

(2,142)

(2,906)

Other net financing income/(expense)

1,336

(1,238)

Result from available-for-sale financial assets

6,032

4,634

Share of net (loss) of associates and joint ventures accounted for using the equity method

(19)

-

Profit before income tax

263,975

238,602

Income tax expense

(66,962)

(65,948)

Profit for the year

197,013

172,654

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2017 REGISTRATION DOCUMENT