EURONEXT_Registration_Document_2017

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

a goodwill impairment. The sensitivity test on the key assumptions defined in 2017 would not result in a goodwill impairment. Possible correlations between each of these parameters were not considered. Given the recent nature of the acquisition of FastMatch Inc., the Group considers the purchase price in this transaction as the best proxy for fair value and recoverable amount of FastMatch Inc.

Recoverable amount is sensitive to key assumptions. As of 31 December 2017, a reduction to 0% per year of third party revenue growth during the explicit forecast period , a reduction to 1% per year of perpetual growth rate, or an increase by 1% per year in discount rate, which management believes are individually reasonably possible changes to key assumptions, would not result in

NOTE 18 DEFERRED INCOME TAX

The analysis of deferred tax assets and deferred tax liabilities is as follows:

2017 7,991

2016 5,021

In thousands of euros

Deferred income tax assets (a)

Deferred income tax liabilities (a)

(19,834)

(600)

TOTAL NET DEFERRED TAX ASSETS (LIABILITIES)

(11,843)

4,421

(a) As shown in the balance sheet, after offsetting deferred tax assets and liabilities related to the same taxable entity.

2017

2016

In thousands of euros

Deferred tax assets / (liabilities): Property, plant and equipment

(812)

1,203

(16,206)

(1,220)

Intangible assets (a)

(7,556)

(2,025)

Investments (b)

Provisions and employee benefits

6,650

5,328

Other

177

430

Loss carried forward c)

5,904

705

Deferred tax assets (net)

(11,843)

4,421

(a) The increase mainly relates to the recognition of a deferred tax liability resulting from the intangible assets recognised upon the acquisitions of Fastmatch Inc. and iBabs B.V. (b) The increase in investments mainly relates to the increase in the revaluation of assets available for sale (Euroclear plc. and Sicovam Holding S.A.S.). (c) The increase relates to losses carried forward recognized on carry forward losses of Fastmatch Inc and losses recognised on the closure of Euronext Technology Ltd in the UK.

2017 4,421

2016

In thousands of euros

6

Balance at beginning of the year Recognised in income statement

12,346

2,241

(6,994)

Reclassifications and other movements (a)

(11,851)

61

Exchange difference

2

(444)

Charge related to other comprehensive income

(6,656)

(548)

Balance at end of the year 4,421 (a) Reclassifications and other movements’s includess (i) a deferred tax asset of €2.9 million as part of the net assets acquired of FastMatch Inc. and (ii) deferred tax liabilities for FastMmatch Inc. (€8.9 million) and iBabs B.V. (€6.3 million) resulting from the intangible assets recognised upon acquisition of those subsidiaries in 2017. (11,843)

As per 31 December 2017, no losses were unrecognised by the Group that can be carried forward against future taxable income. In 2016, no losses were unrecognised by the Group that can be carried forward against future taxable income.

Themajority of the net deferred tax asset is expected to be recovered or settled after more than twelve months. Due to the implementation of new US federal corporate income tax rate (21%) as per 1 January 2018, the recognised deferred taxes have been calculated at these new rates.

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2017 REGISTRATION DOCUMENT