EURONEXT_Registration_Document_2017

6

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

NOTE 17 GOODWILL AND OTHER INTANGIBLE ASSETS

PURCHASED SOFTWARE CONSTR. IN PR.PATENTS & TRADEMARK

INTANGIBLE ASSETS RECOGNISED ON ACQUISITION OF SUBSIDIARIES

INTERNALLY DEVELOPED SOFTWARE

CUSTOMER RELATIONS

BRAND NAMES

GOODWILL

SOFTWARE

TOTAL

In thousands of euros

As at 31 December 2015 Cost

354,759

54,673

34,130

-

-

-

443,562

Accumulated amortisation and impairment

(53,341)

(43,096)

(25,768)

-

-

-

(122,205)

Net book amount

301,418

11,577

8,362

-

-

-

321,357

As at 1 January 2016 net book amount

301,418

11,577

8,362

-

-

-

321,357

Exchange differences

-

-

(416)

-

-

-

(416)

Additions

-

7,340

1,888

-

-

-

9,228

Amortisation charge (Note 10)

-

(5,087)

(3,926)

-

-

-

(9,013)

As at 31 December 2016 net book amount

301,418

13,830

5,908

-

-

-

321,156

As at 31 December 2016 Cost

354,759

62,013

34,839

-

-

-

451,611

Accumulated amortisation and impairment

(53,341)

(48,183)

(28,931)

-

-

-

(130,455)

Net book amount

301,418

13,830

5,908

-

-

-

321,156

AS AT 1 JANUARY 2016 NET BOOK AMOUNT

301,418

13,830

5,908

-

-

-

321,156

Exchange differences

(1,857)

(44)

(71)

(66)

(605)

(110)

(2,753)

Additions

-

13,277

4,497

-

-

-

17,774

Impairment charge

-

(523)

(2,621)

-

-

-

(3,144)

Transfers and other

-

(608)

608

-

-

-

-

Acquisitions of subsidiaries (Note 5)

122,052

2,334

339

7,789

52,826

7,009

192,349

Amortisation charge (Note 10)

-

(5,136)

(2,757)

(1,152)

(1,203)

-

(10,248)

AS AT 31 DECEMBER 2017 NET BOOK AMOUNT

421,613

23,130

5,903

6,571

51,018

6,899

515,134

AS AT 31 DECEMBER 2017 Cost

474,953

80,365

43,689

7,708

52,208

6,899

665,822

Accumulated amortisation and impairment

(53,340)

(57,235)

(37,786)

(1,137)

(1,190)

-

(150,688)

Net book amount

421,613

23,130

5,903

6,571

51,018

6,899

515,134

Goodwill Impairment Test Goodwill is monitored and tested for impairment at the lowest CGU group level of the Group to which goodwill acquired in a business combination is allocated (see Note 3). Following the acquisition of FastMatch Inc. in 2017 and the allocation of goodwill from this transaction to the “FX Trading” CGU, the Group tests goodwill at the level of two CGU (group)’s: “Euronext” and “FX Trading”. The recoverable value of the “Euronext” CGU group is based on its fair value less cost of disposal, applying a discounted cash flow approach, and corroborated by observation of Company’s market capitalisation. The fair value measurement uses significant unobservable inputs and is therefore categorised as a Level 3 measurement under IFRS 13.

Cash flow projections are derived from the 2018 budget and the business plan for 2019. Key assumptions used by management include third party revenue growth, which factors future volumes of European equity markets, the Group’s market share, average fee per transaction, and the expected impact of new product initiatives. These assumptions are based on past experience, market research and management expectation of market developments. For the impairment test performed as of 31 December 2017, revenues have been extrapolated using a perpetual growth rate of 2.3% (2016: 1.5%) after 2019. The weighted average cost of capital applied was 8.6% (2016: 8.5%). The annual impairment testing of the “Euronext” CGU group performed at each year-end did not result in any instance where the carrying value of the operating segment exceeded its recoverable amount.

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2017 REGISTRATION DOCUMENT