EURONEXT_Registration_Document_2017

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FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

Revenues – Market Data & Indices For contracts with customers in which providing an index-license is generally expected to be the only performance obligation, adoption of IFRS 15 is not expected to have any impact on the Group’s revenue and profit or loss. The nature of an index-license is considered a ‘right-to-access’ license as the customer can reasonably expect the Group to undertake ongoing activities to support and maintain the value of its trademark names. Revenue generated from these licenses are therefore recognised over time being the contractual period, as the customer simultaneously receives and consumes the benefit from the license. Outstanding contract balances flowing over the period-end will be recognised as ‘contract liabilities’ under IFRS 15. On transition the ‘contract liabilities’ related to index license revenues amounted to €0.1 million. Revenues – Market Solutions & Other For contracts with customers containing software licenses that are distinct or combined with a significant modification service, adoption of IFRS 15 is not expected to have any impact on the Group’s revenue and profit or loss. Given the significant stand-alone functionality of the underlying intellectual property, a distinct software license can be considered a ‘right-to-use’ license and consequently revenue will be recognised at the point in time of acceptance of the software and the source Code by the customer. Software licenses that are combinedwith a significant modification service are recognised over time, being the significant modification period, as the Group has no alternative use for thesecombinedperformanceobligationsandwouldhaveanenforceable right to payment for performance completed to date. Outstanding contract balances flowing over the period-end will be recognised as ‘contract liabilities’ under IFRS 15. On transition the ‘contract liabilities’ related to software license revenues amounted to €1.9 million. For contracts with customers that reflect hosting services, the adoption of IFRS 15 will have an impact on the Group’s revenue and profit or loss. The service applied by the Group for installing software in Euronext’s data centre in Basildon before starting the hosting service are currently recognised at the moment the installation service is finalised. Under IFRS 15 however, as the installation service itself does not transfer a good or service to the customer, these installation services will be combined with the hosting services and are used as inputs to produce the combined output specified in the contract. Consequently revenue will be recognised over time, being the full service period of the combined hosting contract. During 2017, €0.1 million of such installation service revenues were recognised in profit or loss. On transition this change in recognition would have an impact of €0.1 million on retained earnings. Outstanding contract balances flowing over the period-end will be recognised as ‘contract liabilities’ under IFRS 15. On transition the ‘contract liabilities’ related to combined hosting revenues amounted to €1.1 million. Principle Versus Agent Considerations IFRS 15 requires assessment of whether the Group controls a specified good or service before it is transferred to the customer. Customers of the Group that are willing to trade on Euronext’s markets are obliged to obtain clearing service for that trade. The promise that the Group makes to its customers is to execute the trade and arrange for the clearing of that trade. As the Group does not own its own clearing operation, it has put in place an agreement

with LCH SA in which the latter is providing clearing service as a sub-contractor, executing the service under control of the Group. The nature of the promise is the execution of a cleared trade on the Group’s derivatives platform. The Group controls this services that are derived from that promise, before it is transferred to the customer. This makes the Group the principal in the transaction of providing derivative clearing services to its customers. Consequently, the adoption of IFRS 15 is not expected to have any impact on the Group’s revenue and profit or loss, as the Group will still recognises revenue for the gross amount of consideration to which it expects to be entitled in exchange for the derivatives service transferred. Cost incurred for Obtaining a Contract The Group does not incur material costs to obtain contracts such as sales commissions. Financing components The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money. Presentation and Disclosure Requirements The presentation and disclosure requirements in IFRS 15 are more detailed than under current IFRS. The presentation requirements present a significant change from current practice and significant increase the volumes of disclosure required in the Group’s Consolidated Financial Statements. The Group will disaggregate revenue recognised from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. It will also disclose information to illustrate the relationship between the revenue recognised and changes in the overall balances of the total contract assets and liabilities during a particular reporting period. In addition, extended disclosure are expected on significant judgements made and descriptive information of performance obligations. As the Group is still assessing the impact of IFRS 15 on its listing revenues, quantitative information on the impact of the adoption of IFRS 15 on the Group’s total assets, total liabilities and equity can’t be disclosed yet. IFRS 16, “Leases” IFRS 16 replaces the current IAS 17 guidance on the subject of accounting for lease contracts. The new standard will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases is removed. Under the new standard an asset (right to use the leased item ) and a financial liability to pay rentals are recognised. The only exceptions are short-term ( i.e ., leases with a lease term of 12 months or less) and low value leases (e.g., personal computers). The standard will affect the accounting of the Group’s operating leases. As at reporting date, the Group has non-cancellable operating lease commitments of €61.4 million (see Note 34). The Group estimates that approximately 10% of these relate to payments

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2017 REGISTRATION DOCUMENT