EURONEXT_Registration_Document_2017

5

OPERATING AND FINANCIAL REVIEW

Overview

Result from Available-for-Sale Financial Assets In 2016, the €6.0 million of dividend income from available-for-sale financial assets mainly related to dividends received from Euroclear plc, LCH Group Ltd. and Sicovam Holding S.A. In the comparative period no dividends from LCH Group Ltd. was received, explaining the variance to the lower amount of €4.6 million in 2015. Profit before Income Tax Euronext profit before income tax for the year ended 31 December 2016 was €264.0 million, compared to €238.6 million for the year ended 31 December 2015, an increase of €+25.4 million or +11%. Income Tax Expense Euronext’s income tax expense for the year ended 31 December 2016 was €67.0million, compared to €65.9million for the year ended

31 December 2015, an increase of €+1.1 million or +2%. Euronext’s effective tax rate was 25.4% for the year ended 31 December 2016 compared to 27.6% for the year ended 31 December 2015:  the decrease of the effective tax rate in 2016 is primarily attributable to the release of a €16.3 million tax provision recognised in 2013, as a result of the lapse of the statute of limitation. The effective tax rate in 2015 was impacted by the release of a €13.9 million tax provision recognised in 2012, as a result of the lapse of the statute of limitation. Profit for the Year Euronext reported profit for the year ended 31 December 2016 was €197.0 million, compared to €172.7 million for the year ended 31 December 2015, an increase of €+24.3 million or +14%.

5.1.9 CASH FLOW The table below summarises Euronext consolidated cash flow for the years ended 31 December 2017, 2016 and 2015:

YEAR ENDED

31 DECEMBER 2017

31 DECEMBER 2016

31 DECEMBER 2015

In thousands of euros

Net cash provided by operating activities

213,108

181,127

139,972

Net cash (used in) investing activities

(191,198)

(29,572)

(5,277)

Net cash (used in) financing activities

(8,524)

(128,628)

(220,274)

Net increase/(decrease) in cash and cash equivalents

13,386

22,927

(85,579)

Net Cash Provided by Operating Activities Net cash provided by operating activities was €213.1 million in the year ended 31 December 2017, compared to €181.1 million in the year ended 31 December 2016, an increase of €32.0 million or 17.7%. The main drivers of this increase were:  operating profit before income tax, corrected for working capital changes, increased from €243.7 million in the year ended 31 December 2016 to €303.3 million in the year ended 31 December 2017;  in addition, the income tax paid decreased by €12.0 million in 2017 to €68.4 million from €80.4 million in 2016, mainly due to refunds made by French tax authorities. Net cash provided by operating activities was €181.1 million in the year ended 31 December 2016, compared to €140.0 million in the year ended 31 December 2015, an increase of €+41.1 million or +29.4%. The main drivers of this increase were:  operating profit before income tax, corrected for working capital changes, increased from €210.1 million in the year ended 31 December 2015 to €243.7 million in the year ended 31 December 2016. In addition the income tax paid decreased

by €-11.8 million or -12.8%, from €92.2 million in 2015 to €80.4 million in 2016, mainly due to refunds made by the French tax authorities in 2016. Net Cash (Used in) Investing Activities Net cash used in investing activities was €191.2 million in the year ended 31 December 2017, compared to net cash used in investing activities of €29.6 million in the year ended 31 December 2016. This increase of cash outflow of €161.6 million is mainly driven by the acquisitions of subsidiaries (net of cash acquired) in 2017 for €157.3 million, and increased capital expenditures, mainly related to the increased activity on the Optiq™ project. Net cash used in investing activities was €29.6 million in the year ended 31 December 2016, compared to net cash used in investing activities of €5.3 million in the year ended 31 December 2015. This increase of cash outflow of €+24.3million is driven by the investment in associates of €14.8 million in 2016, and the cash inflow impact of the return of short-term investments of €15.0 million in 2015. The cash outflows for purchase of property, plant and equipment and purchase of intangible assets amounted to €14.8 million in 2016, a decrease of €-5.5 million in comparison to the capital expenditure of €20.3 million in 2015.

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2017 REGISTRATION DOCUMENT