| | |
| | |
| | |
| | |
Purchases from related parties | | |
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group\u2019s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed
operation and the portion of the cash-generating unit
retained.
Goodwill
Goodwill represents the excess of the consideration
transferred in a business combination over the Group\u2019s
share in the fair value of the net identifiable assets and
liabilities of the acquired business at the date of acquisition.
Goodwill is not amortised but is tested at least annually for
impairment, or whenever an event or change in
circumstances indicate a potential impairment.
For the purpose of impairment testing, goodwill arising in a
business combination is allocated to the cash-generating
units (CGUs) or groups of CGUs that are expected to benefit
from the synergies of the combination. Each CGU or CGU
Group to which goodwill is allocated represents the lowest
level within the Group at which the goodwill is monitored for
internal management purposes.
The carrying value of a CGU Group is compared to its
recoverable amount, which is the higher of its value in use
and its fair value less costs of disposal. Impairment losses
on goodwill are not subsequently reversed. Value in use is
derived from the discounted future free cash flows of the
CGU Group. Fair value less costs of disposal is based on
discounted cash flows and market multiples applied to
forecasted earnings. Cash flow projections are based on
budget and business plan approved by management and
covering a 2-year period in total. Cash flows beyond the
business plan period are extrapolated using a perpetual
growth rate. Key assumptions used in goodwill impairment
test are described in Note 18.
Impairment of non-financial assets other
than goodwill
Assets that are subject to amortisation and depreciation are
reviewed for impairment whenever events or circumstances
indicate that the carrying amount may not be recoverable.
Assets that have an indefinite useful life are not subject to
amortisation nor depreciation and are tested at least
annually for impairment. An impairment loss is recognised
for the amount by which the asset\u2019s carrying amount
exceeds its recoverable amount. The recoverable amount is
the higher of an asset\u2019s fair value less costs to sell or value
in use. For purposes of assessing impairment, assets are
grouped into Cash Generating Units (CGUs). A CGU is the
smallest identifiable group of assets that generates cash
inflows that are largely independent from other groups of
assets. Non-financial assets, other than goodwill, that were
previously impaired are reviewed for possible reversal of
the impairment at each reporting date.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-575": {
"value": "Business combinations
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group\u2019s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed
operation and the portion of the cash-generating unit
retained.
Goodwill
Goodwill represents the excess of the consideration
transferred in a business combination over the Group\u2019s
share in the fair value of the net identifiable assets and
liabilities of the acquired business at the date of acquisition.
Goodwill is not amortised but is tested at least annually for
impairment, or whenever an event or change in
circumstances indicate a potential impairment.
For the purpose of impairment testing, goodwill arising in a
business combination is allocated to the cash-generating
units (CGUs) or groups of CGUs that are expected to benefit
from the synergies of the combination. Each CGU or CGU
Group to which goodwill is allocated represents the lowest
level within the Group at which the goodwill is monitored for
internal management purposes.
The carrying value of a CGU Group is compared to its
recoverable amount, which is the higher of its value in use
and its fair value less costs of disposal. Impairment losses
on goodwill are not subsequently reversed. Value in use is
derived from the discounted future free cash flows of the
CGU Group. Fair value less costs of disposal is based on
discounted cash flows and market multiples applied to
forecasted earnings. Cash flow projections are based on
budget and business plan approved by management and
covering a 2-year period in total. Cash flows beyond the
business plan period are extrapolated using a perpetual
growth rate. Key assumptions used in goodwill impairment
test are described in Note 18.
Impairment of non-financial assets other
than goodwill
Assets that are subject to amortisation and depreciation are
reviewed for impairment whenever events or circumstances
indicate that the carrying amount may not be recoverable.
Assets that have an indefinite useful life are not subject to
amortisation nor depreciation and are tested at least
annually for impairment. An impairment loss is recognised
for the amount by which the asset\u2019s carrying amount
exceeds its recoverable amount. The recoverable amount is
the higher of an asset\u2019s fair value less costs to sell or value
in use. For purposes of assessing impairment, assets are
grouped into Cash Generating Units (CGUs). A CGU is the
smallest identifiable group of assets that generates cash
inflows that are largely independent from other groups of
assets. Non-financial assets, other than goodwill, that were
previously impaired are reviewed for possible reversal of
the impairment at each reporting date.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-576": {
"value": "Business combinations
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group\u2019s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed
operation and the portion of the cash-generating unit
retained.
Goodwill and other intangible assetsFurthermore, no
indicators of impairment of intangible assets with a finite useful life were identified and as such no detailed impairment test
was performed. For intangible assets with an indefinite useful life the impairment test did not lead to an/any impairment.
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 acquisitions of Euronext FX (former
FastMatch Inc.) in 2017 and Nord Pool Holding AS in 2020
and the allocation of goodwill from those transactions to
respectively the \u201cFX Trading\u201d CGU and the \u201cNord Pool\u201d CGU,
the Group tests goodwill at the level of three CGUs (Groups):
\u201cEuronext\u201d, \u201cFX Trading\u201d and \u201cNord Pool\u201d. The acquisition
of Borsa Italiana Group is included in the Euronext CGU.
Euronext CGU (Group)
The recoverable value of the \u201cEuronext\u201d CGU Group is
based on its fair value less cost of disposal, applying a
discounted cash flow approach, and corroborated by
observation of Company\u2019s 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes of European equity markets, the
Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.4% (2021: 1.2%) after 2023. The weighted average
cost of capital applied was 7.2% (2021: 6.7%).
The annual impairment testing of the \u201cEuronext\u201d 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. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
FX Trading CGU
The recoverable value of the \u201cFX Trading\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on global Foreign Exchange trading
markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 2.0% (2021: 2.0%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cFX Trading\u201d CGU
performed at each year-end did not result in any instance
where the carrying value of the operating segment
exceeded its recoverable amount. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
Nord Pool CGU
The recoverable value of the \u201cNord Pool\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on day ahead and intraday physical
energy markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.3% (2021: 1.5%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cNord Pool\u201d CGU
performed at year-end did not result in any instance where
the carrying value of the operating segment exceeded its
recoverable amount. Recoverable amount is sensitive to key
assumptions. As of 31 December 2022, a reduction to 0%
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 a goodwill impairment.
The sensitivity test on the key assumptions defined in 2022
would not result in a goodwill impairment. Possible
correlations between each of these parameters were not
considered",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-577": {
"value": "Business combinations
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group\u2019s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed
operation and the portion of the cash-generating unit
retained.
Goodwill
Goodwill represents the excess of the consideration
transferred in a business combination over the Group\u2019s
share in the fair value of the net identifiable assets and
liabilities of the acquired business at the date of acquisition.
Goodwill is not amortised but is tested at least annually for
impairment, or whenever an event or change in
circumstances indicate a potential impairment.
For the purpose of impairment testing, goodwill arising in a
business combination is allocated to the cash-generating
units (CGUs) or groups of CGUs that are expected to benefit
from the synergies of the combination. Each CGU or CGU
Group to which goodwill is allocated represents the lowest
level within the Group at which the goodwill is monitored for
internal management purposes.
The carrying value of a CGU Group is compared to its
recoverable amount, which is the higher of its value in use
and its fair value less costs of disposal. Impairment losses
on goodwill are not subsequently reversed. Value in use is
derived from the discounted future free cash flows of the
CGU Group. Fair value less costs of disposal is based on
discounted cash flows and market multiples applied to
forecasted earnings. Cash flow projections are based on
budget and business plan approved by management and
covering a 2-year period in total. Cash flows beyond the
business plan period are extrapolated using a perpetual
growth rate. Key assumptions used in goodwill impairment
test are described in Note 18.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-578": {
"value": "Business combinations
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group\u2019s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed
operation and the portion of the cash-generating unit
retained.
Critical accounting estimates and
assumptions
In the application of the Group\u2019s accounting policies,
management is required to make estimates and
assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and other factors that are considered
to be relevant. Actual results may differ from these
estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or
in the period of the revision and future periods if the revision
affects both current and future periods.
The following critical assumptions concerning the future,
and other critical sources of estimation uncertainty at the
end of the reporting period, have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year:
(i)Impairment of goodwill
The Group performs goodwill impairment reviews in
accordance with the accounting policy described above in
Note 18. The recoverable amount of a CGU Group is
determined based on a discounted cash flow approach,
which requires the use of estimates. The critical
assumptions used and the related sensitivity analysis are
described in Note 18.
(ii)Income taxes
Due to the inherent complexities arising from the nature of
the Group\u2019s business, and from conducting business and
being taxed in a substantial number of jurisdictions, critical
assumptions and estimates are required to be made for
income taxes. The Group computes income tax expense for
each of the jurisdictions in which it operates. However,
actual amounts of income tax due only become final upon
filing and acceptance of the tax return by relevant
authorities, which may not occur for several years
subsequent to issuance of these Consolidated Financial
Statements.
The estimation of income taxes also includes evaluating the
recoverability of deferred income tax assets based on an
assessment of the ability to use the underlying future tax
deductions against future taxable income before they
expire. This assessment is based upon existing tax laws and
estimates of future taxable income. To the extent estimates
differ from the final tax return, earnings may be affected in
a subsequent period.
The Group operates in various countries with local tax
regulations. New tax legislation being issued in certain
territories as well as transactions that the Group enters into
regularly result in potential tax exposures. The calculation
of our tax liabilities involves uncertainties in the application
of complex tax laws. Our estimate for the potential outcome
of any uncertain tax treatment is highly judgmental.
However, the Group believes that it has adequately provided
for uncertain tax treatments. Settlement of these
uncertainties in a manner inconsistent with our
expectations could have a material impact on our results of
operations, financial condition and cash flows. The Group
recognises a liability for uncertain tax treatments when it is
not probable that a taxation authority will accept an
uncertain tax treatment.
(iii)Fair value of equity investments
The Group holds investments in unlisted equity securities
which are carried at fair value in the balance sheet. The
valuation methodology and critical assumptions are
described in Note 20 and 35.
(iv)Classification of investments in associates
The Group classifies the interest in LCH SA as an
investment in associate suggesting significant influence
even though it owns less than 20% of the voting rights (see
Note 7). The Group concluded that it has significant
influence over this investment, which is derived from the
governance structure that was put in place, the Group\u2019s
position as the largest customer and sole minority
shareholder of LCH SA.
(v)Contingent consideration and buy options
resulting from business combinations
The Group may structure its business combinations in a way
that leads to recognition of contingent consideration to
selling shareholders and/or buy options for equity held by
non-controlling interests. Contingent consideration and buy
options are recognised at fair value on acquisition date.
When the contingent consideration or buy option meets the
definition of a financial liability or financial instrument, it is
subsequently re-measured to fair value at each reporting
date. The determination of fair value is based on the
expected level of EBITDA3 over the last 12 months that
precede the contractual date (in case of contingent
consideration) or exercise date of the underlying call- and
put options (in case of buy option). The Group monitors the
expected EBITDA3 based on updated forecast information
from the acquired companies involved.
(vi)Purchase price allocation
The cost of other intangible assets that are acquired in the
course of business combinations, corresponds to their
acquisition date fair values. Depending on the nature of the
intangible asset, fair value is determined by application of:
\u25aaMarket approach (by reference to comparable
transactions)
\u25aaIncome approach (Relief-from-Royalty- or Multi-
period Excess Earnings Method)
\u25aaCost approach
Assets with a finite useful life are amortised using the
straight-line method over their expected useful life. Assets
with an indefinite useful life are tested for impairment at
least once a year.
(vii)Revenue from contracts with customers
The Group applied the following judgments that significantly
affect the determination of the amount and timing of
revenue from contracts with customers:
Identifying performance obligations and determining the
timing of revenue recognition of Listing admission fees
The Group provides services related to the initial (and
subsequent) listing of securities on its markets and hereto
directly related corporate action services, and ongoing
services related to the continuous listing.
The Group determined that the admission services around
initial (and subsequent) admission and its directly related
corporate action services do not transfer a good or service
to the customer, but are considered activities that the Group
needs to undertake to enable the customer to be listed. The
Group concluded that these activities should be combined
with the ongoing listing services and should be used as
inputs to produce the combined output, which is the service
of being listed. As the service of being listed is satisfied over
a period of time, as the customer simultaneously receives
and consumes the benefits from the service, the related
revenues are therefore recognised over a period of time.
The Group determined that the period of time that best
reflects the satisfaction of listing admission services is the
period over which the customer actually benefits from the
admission. An average lifetime of companies being listed on
Euronext markets would serve as best proxy for the period
that a listing customer benefits from an admission. Specific
local market characteristics can result and would justify
differences in amortisation terms. Based on historic
evidence, the Group has defined the following average
lifetimes for the relevant groupings of listed securities:
Equity admissions: 5-12 years
Bond- and fund admissions: 3 years
Equity subsequent admissions (follow-on\u2019s):3 years
Revenue from the listing admission services is therefore
recognised over those periods of time.
Cost to obtain or fulfil a contract related to listing
admission services
The Group has considered the type of cost that is directly
associated to a listing contract and that can be separately
identifiable. Such cost would typically concern staff cost
incurred by the Listings team involved in admission- and
subsequent listing of an issuer. There is no correlation
between number of listings and staff cost associated to the
Listings team.
The majority of the cost to obtain and fulfil the contract is
incurred in the period before the actual admission. The
remaining cost associated to an admission and subsequent
listing that is recorded post-admission, and its impact on
the Group\u2019s income statement, would be marginal,
therefore the Group has decided not to capitalise cost
incurred to obtain- or fulfil listing contracts.
Principal versus agent considerations
The Group entered into a clearing agreement with LCH SA
in respect of the clearing of trades on our continental
Europe derivatives markets (the \u201cDerivatives Clearing
Agreement\u201d). Under the terms of this Derivatives Clearing
Agreement Euronext agreed with LCH SA to share revenues
and receives clearing fee revenues based on the number of
trades on these markets cleared through LCH SA. In
exchange for that, we have agreed to pay LCH SA a fixed fee
plus a variable fee based on revenues.
The definition of the accounting treatment of this agreement
requires significant management judgment for the valuation
and weighting of the indicators leading the principal versus
agent accounting analysis. Based on all facts and
circumstances around this arrangement, management has
concluded that Euronext is \u2018principal\u2019 in providing
Derivatives clearing services to its trading members.
Therefore Euronext recognises (i) the clearing fees received
are classified as post trade revenues, and (ii) the fixed and
variable fees paid to LCH SA as other operational expenses.
(viii)Provision for expected credit losses of trade and
contract receivables
The Group uses a provision matrix to calculate ECLs for
trade and contract receivables. To measure expected credit
losses, trade and contract receivables have been grouped
based on shared credit risk characteristics and the days
past due. The historical loss rates are based on the payment
profiles of the sales over a period of 24 months before
reporting date and the corresponding historical credit loss
experience within this period. The historical loss rates are
adjusted to reflect current and forward-looking factors
specific to the debtors and economic environment.
The provision matrix is initially based on the Group\u2019s
historical observed default rates. The Group will calibrate
the matrix to adjust the historical credit loss experience
with forward-looking information. At every reporting date,
the historical observed default rates are updated and
changes in the forward-looking estimates are analysed.
The assessment of the correlation between historical
observed default rates, forecast economic conditions and
ECLs is a significant estimate. The amount of ECLs is
sensitive to changes in circumstances and of forecast
economic conditions. The Group\u2019s historical credit loss
experience and forecast of economic conditions may also
not be representative of customer\u2019s actual default in the
future. The information about the ECLs on the Group\u2019s trade
and contract receivables is disclosed in Note 37.5.1
(ix)Determining the lease term of contracts with
extension and termination options
In determining the lease term, management assesses the
period for which the contract is enforceable. It considers all
facts and circumstances that create an economic incentive
to exercise an extension option, or not exercise a
termination option. Extension options (or periods after
termination options) are only included in the lease term if
the lease is reasonably certain to be extended (or not
terminated). If the Group concludes that the contract is
enforceable beyond the notice period of a cancellable lease
(or the initial period of a renewable lease), it then need to
assess whether the Group is reasonably certain not to
exercise the option to terminate the lease. However in
general, the Group\u2019s lease portfolio contains very limited
leases that include renewal -or termination options.
(x)Estimating the incremental borrowing rate (IBR)
The Group cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is
the rate of interest that the Group would have to pay to
borrow over a similar term, and with a similar security, the
funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment. The
IBR therefore reflects what the Group \u2018would have to pay\u2019,
which requires estimation when no observable rates are
available or when they need to be adjusted to reflect the
terms and conditions of the lease. The Group estimates the
IBR using the observable inputs (such as market interest
rates) when available and makes certain entity-specific
estimates if needed.
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 acquisitions of Euronext FX (former
FastMatch Inc.) in 2017 and Nord Pool Holding AS in 2020
and the allocation of goodwill from those transactions to
respectively the \u201cFX Trading\u201d CGU and the \u201cNord Pool\u201d CGU,
the Group tests goodwill at the level of three CGUs (Groups):
\u201cEuronext\u201d, \u201cFX Trading\u201d and \u201cNord Pool\u201d. The acquisition
of Borsa Italiana Group is included in the Euronext CGU.
Euronext CGU (Group)
The recoverable value of the \u201cEuronext\u201d CGU Group is
based on its fair value less cost of disposal, applying a
discounted cash flow approach, and corroborated by
observation of Company\u2019s 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes of European equity markets, the
Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.4% (2021: 1.2%) after 2023. The weighted average
cost of capital applied was 7.2% (2021: 6.7%).
The annual impairment testing of the \u201cEuronext\u201d 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. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
FX Trading CGU
The recoverable value of the \u201cFX Trading\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on global Foreign Exchange trading
markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 2.0% (2021: 2.0%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cFX Trading\u201d CGU
performed at each year-end did not result in any instance
where the carrying value of the operating segment
exceeded its recoverable amount. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
Nord Pool CGU
The recoverable value of the \u201cNord Pool\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on day ahead and intraday physical
energy markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.3% (2021: 1.5%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cNord Pool\u201d CGU
performed at year-end did not result in any instance where
the carrying value of the operating segment exceeded its
recoverable amount. Recoverable amount is sensitive to key
assumptions. As of 31 December 2022, a reduction to 0%
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 a goodwill impairment.
The sensitivity test on the key assumptions defined in 2022
would not result in a goodwill impairment. Possible
correlations between each of these parameters were not
considered.
Fair value measurement
35.2.1Fair value hierarchy
The table below analyses financial instrument carried at fair
value, by valuation method. The different levels have been
defined as follows:
\u25aaLevel 1: quoted prices in active markets for
identical assets or liabilities
\u25aaLevel 2: inputs that are based on observable
market data, directly or indirectly
\u25aaLevel 3: unobservable inputs
| | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
Other derivative instruments (a) | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac19k in Nord Pool | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Hedging derivatives - interest rate swaps (a) | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac12k in Nord Pool | | | |
The Group\u2019s policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period. There were no transfers between the
levels of fair value hierarchy in 2022 and 2021. The Group
did not measure any financial assets or financial liabilities
at fair value on a non-recurring basis as at 31 December
2022.
35.2.2.Fair value measurements using quoted prices in
active markets for identical assets or liabilities (level 1)
The quoted debt instruments primarily relate to
investments in listed bonds held by Euronext Securities
Copenhagen and Euronext Clearing's own fund investments
in government bonds.
The quoted debt instruments of CCP clearing business
represent an investment portfolio in predominantly
government bonds funded by the margins and default funds
deposited by members of the CCP clearing business.
The derivative instruments of CCP clearing business
comprise open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The other instruments
of CCP clearing business include clearing member trading
balances for equity and debt instruments that are marked to
market on a daily basis.
Fair values of the instruments mentioned above are
determined by reference to published price quotations in an
active market.
35.2.3.Fair value measurements using observable
market data, directly or indirectly (level 2)
The fair value of interest rate swaps was calculated as the
present value of the estimated future net cash flows based
on observable yield curves at the reporting date.
35.2.4.Fair value measurements using unobservable
inputs (level 3)
The following table presents the changes in level 3 instruments for the period ended 31 December 2022:
| | | | |
| Unlisted equity securities | Contingent consideration payables | | |
|
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
2021:
| | | | | |
| Fair value at 31 December 2020 | | Range of inputs (probability-weighted average) | Relationship of unobservable inputs to fair value |
| | | | | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
Contingent consideration payables and redemption liability
The contingent consideration payable of \u20ac0.5 million related
to Black Woodpecker Software was paid in full in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-579": {
"value": "Business combinations
For the purpose of impairment testing, goodwill acquired in
a business combination is, from the acquisition date,
allocated to each of the Group\u2019s cash-generating units that
are expected to benefit from the combination, irrespective
of whether other assets or liabilities of the acquiree are
assigned to those units. Where goodwill has been allocated
to a cash-generating unit (CGU) and part of the operation
within that unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying amount of
the operation when determining the gain or loss on
disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed
operation and the portion of the cash-generating unit
retained.
Critical accounting estimates and
assumptions
In the application of the Group\u2019s accounting policies,
management is required to make estimates and
assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and other factors that are considered
to be relevant. Actual results may differ from these
estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or
in the period of the revision and future periods if the revision
affects both current and future periods.
The following critical assumptions concerning the future,
and other critical sources of estimation uncertainty at the
end of the reporting period, have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year:
(i)Impairment of goodwill
The Group performs goodwill impairment reviews in
accordance with the accounting policy described above in
Note 18. The recoverable amount of a CGU Group is
determined based on a discounted cash flow approach,
which requires the use of estimates. The critical
assumptions used and the related sensitivity analysis are
described in Note 18.
(ii)Income taxes
Due to the inherent complexities arising from the nature of
the Group\u2019s business, and from conducting business and
being taxed in a substantial number of jurisdictions, critical
assumptions and estimates are required to be made for
income taxes. The Group computes income tax expense for
each of the jurisdictions in which it operates. However,
actual amounts of income tax due only become final upon
filing and acceptance of the tax return by relevant
authorities, which may not occur for several years
subsequent to issuance of these Consolidated Financial
Statements.
The estimation of income taxes also includes evaluating the
recoverability of deferred income tax assets based on an
assessment of the ability to use the underlying future tax
deductions against future taxable income before they
expire. This assessment is based upon existing tax laws and
estimates of future taxable income. To the extent estimates
differ from the final tax return, earnings may be affected in
a subsequent period.
The Group operates in various countries with local tax
regulations. New tax legislation being issued in certain
territories as well as transactions that the Group enters into
regularly result in potential tax exposures. The calculation
of our tax liabilities involves uncertainties in the application
of complex tax laws. Our estimate for the potential outcome
of any uncertain tax treatment is highly judgmental.
However, the Group believes that it has adequately provided
for uncertain tax treatments. Settlement of these
uncertainties in a manner inconsistent with our
expectations could have a material impact on our results of
operations, financial condition and cash flows. The Group
recognises a liability for uncertain tax treatments when it is
not probable that a taxation authority will accept an
uncertain tax treatment.
(iii)Fair value of equity investments
The Group holds investments in unlisted equity securities
which are carried at fair value in the balance sheet. The
valuation methodology and critical assumptions are
described in Note 20 and 35.
(iv)Classification of investments in associates
The Group classifies the interest in LCH SA as an
investment in associate suggesting significant influence
even though it owns less than 20% of the voting rights (see
Note 7). The Group concluded that it has significant
influence over this investment, which is derived from the
governance structure that was put in place, the Group\u2019s
position as the largest customer and sole minority
shareholder of LCH SA.
(v)Contingent consideration and buy options
resulting from business combinations
The Group may structure its business combinations in a way
that leads to recognition of contingent consideration to
selling shareholders and/or buy options for equity held by
non-controlling interests. Contingent consideration and buy
options are recognised at fair value on acquisition date.
When the contingent consideration or buy option meets the
definition of a financial liability or financial instrument, it is
subsequently re-measured to fair value at each reporting
date. The determination of fair value is based on the
expected level of EBITDA3 over the last 12 months that
precede the contractual date (in case of contingent
consideration) or exercise date of the underlying call- and
put options (in case of buy option). The Group monitors the
expected EBITDA3 based on updated forecast information
from the acquired companies involved.
(vi)Purchase price allocation
The cost of other intangible assets that are acquired in the
course of business combinations, corresponds to their
acquisition date fair values. Depending on the nature of the
intangible asset, fair value is determined by application of:
\u25aaMarket approach (by reference to comparable
transactions)
\u25aaIncome approach (Relief-from-Royalty- or Multi-
period Excess Earnings Method)
\u25aaCost approach
Assets with a finite useful life are amortised using the
straight-line method over their expected useful life. Assets
with an indefinite useful life are tested for impairment at
least once a year.
(vii)Revenue from contracts with customers
The Group applied the following judgments that significantly
affect the determination of the amount and timing of
revenue from contracts with customers:
Identifying performance obligations and determining the
timing of revenue recognition of Listing admission fees
The Group provides services related to the initial (and
subsequent) listing of securities on its markets and hereto
directly related corporate action services, and ongoing
services related to the continuous listing.
The Group determined that the admission services around
initial (and subsequent) admission and its directly related
corporate action services do not transfer a good or service
to the customer, but are considered activities that the Group
needs to undertake to enable the customer to be listed. The
Group concluded that these activities should be combined
with the ongoing listing services and should be used as
inputs to produce the combined output, which is the service
of being listed. As the service of being listed is satisfied over
a period of time, as the customer simultaneously receives
and consumes the benefits from the service, the related
revenues are therefore recognised over a period of time.
The Group determined that the period of time that best
reflects the satisfaction of listing admission services is the
period over which the customer actually benefits from the
admission. An average lifetime of companies being listed on
Euronext markets would serve as best proxy for the period
that a listing customer benefits from an admission. Specific
local market characteristics can result and would justify
differences in amortisation terms. Based on historic
evidence, the Group has defined the following average
lifetimes for the relevant groupings of listed securities:
Equity admissions: 5-12 years
Bond- and fund admissions: 3 years
Equity subsequent admissions (follow-on\u2019s):3 years
Revenue from the listing admission services is therefore
recognised over those periods of time.
Cost to obtain or fulfil a contract related to listing
admission services
The Group has considered the type of cost that is directly
associated to a listing contract and that can be separately
identifiable. Such cost would typically concern staff cost
incurred by the Listings team involved in admission- and
subsequent listing of an issuer. There is no correlation
between number of listings and staff cost associated to the
Listings team.
The majority of the cost to obtain and fulfil the contract is
incurred in the period before the actual admission. The
remaining cost associated to an admission and subsequent
listing that is recorded post-admission, and its impact on
the Group\u2019s income statement, would be marginal,
therefore the Group has decided not to capitalise cost
incurred to obtain- or fulfil listing contracts.
Principal versus agent considerations
The Group entered into a clearing agreement with LCH SA
in respect of the clearing of trades on our continental
Europe derivatives markets (the \u201cDerivatives Clearing
Agreement\u201d). Under the terms of this Derivatives Clearing
Agreement Euronext agreed with LCH SA to share revenues
and receives clearing fee revenues based on the number of
trades on these markets cleared through LCH SA. In
exchange for that, we have agreed to pay LCH SA a fixed fee
plus a variable fee based on revenues.
The definition of the accounting treatment of this agreement
requires significant management judgment for the valuation
and weighting of the indicators leading the principal versus
agent accounting analysis. Based on all facts and
circumstances around this arrangement, management has
concluded that Euronext is \u2018principal\u2019 in providing
Derivatives clearing services to its trading members.
Therefore Euronext recognises (i) the clearing fees received
are classified as post trade revenues, and (ii) the fixed and
variable fees paid to LCH SA as other operational expenses.
(viii)Provision for expected credit losses of trade and
contract receivables
The Group uses a provision matrix to calculate ECLs for
trade and contract receivables. To measure expected credit
losses, trade and contract receivables have been grouped
based on shared credit risk characteristics and the days
past due. The historical loss rates are based on the payment
profiles of the sales over a period of 24 months before
reporting date and the corresponding historical credit loss
experience within this period. The historical loss rates are
adjusted to reflect current and forward-looking factors
specific to the debtors and economic environment.
The provision matrix is initially based on the Group\u2019s
historical observed default rates. The Group will calibrate
the matrix to adjust the historical credit loss experience
with forward-looking information. At every reporting date,
the historical observed default rates are updated and
changes in the forward-looking estimates are analysed.
The assessment of the correlation between historical
observed default rates, forecast economic conditions and
ECLs is a significant estimate. The amount of ECLs is
sensitive to changes in circumstances and of forecast
economic conditions. The Group\u2019s historical credit loss
experience and forecast of economic conditions may also
not be representative of customer\u2019s actual default in the
future. The information about the ECLs on the Group\u2019s trade
and contract receivables is disclosed in Note 37.5.1
(ix)Determining the lease term of contracts with
extension and termination options
In determining the lease term, management assesses the
period for which the contract is enforceable. It considers all
facts and circumstances that create an economic incentive
to exercise an extension option, or not exercise a
termination option. Extension options (or periods after
termination options) are only included in the lease term if
the lease is reasonably certain to be extended (or not
terminated). If the Group concludes that the contract is
enforceable beyond the notice period of a cancellable lease
(or the initial period of a renewable lease), it then need to
assess whether the Group is reasonably certain not to
exercise the option to terminate the lease. However in
general, the Group\u2019s lease portfolio contains very limited
leases that include renewal -or termination options.
(x)Estimating the incremental borrowing rate (IBR)
The Group cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is
the rate of interest that the Group would have to pay to
borrow over a similar term, and with a similar security, the
funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment. The
IBR therefore reflects what the Group \u2018would have to pay\u2019,
which requires estimation when no observable rates are
available or when they need to be adjusted to reflect the
terms and conditions of the lease. The Group estimates the
IBR using the observable inputs (such as market interest
rates) when available and makes certain entity-specific
estimates if needed.
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 acquisitions of Euronext FX (former
FastMatch Inc.) in 2017 and Nord Pool Holding AS in 2020
and the allocation of goodwill from those transactions to
respectively the \u201cFX Trading\u201d CGU and the \u201cNord Pool\u201d CGU,
the Group tests goodwill at the level of three CGUs (Groups):
\u201cEuronext\u201d, \u201cFX Trading\u201d and \u201cNord Pool\u201d. The acquisition
of Borsa Italiana Group is included in the Euronext CGU.
Euronext CGU (Group)
The recoverable value of the \u201cEuronext\u201d CGU Group is
based on its fair value less cost of disposal, applying a
discounted cash flow approach, and corroborated by
observation of Company\u2019s 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes of European equity markets, the
Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.4% (2021: 1.2%) after 2023. The weighted average
cost of capital applied was 7.2% (2021: 6.7%).
The annual impairment testing of the \u201cEuronext\u201d 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. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
FX Trading CGU
The recoverable value of the \u201cFX Trading\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on global Foreign Exchange trading
markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 2.0% (2021: 2.0%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cFX Trading\u201d CGU
performed at each year-end did not result in any instance
where the carrying value of the operating segment
exceeded its recoverable amount. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
Nord Pool CGU
The recoverable value of the \u201cNord Pool\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on day ahead and intraday physical
energy markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.3% (2021: 1.5%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cNord Pool\u201d CGU
performed at year-end did not result in any instance where
the carrying value of the operating segment exceeded its
recoverable amount. Recoverable amount is sensitive to key
assumptions. As of 31 December 2022, a reduction to 0%
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 a goodwill impairment.
The sensitivity test on the key assumptions defined in 2022
would not result in a goodwill impairment. Possible
correlations between each of these parameters were not
considered.
Fair value measurement
35.2.1Fair value hierarchy
The table below analyses financial instrument carried at fair
value, by valuation method. The different levels have been
defined as follows:
\u25aaLevel 1: quoted prices in active markets for
identical assets or liabilities
\u25aaLevel 2: inputs that are based on observable
market data, directly or indirectly
\u25aaLevel 3: unobservable inputs
| | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
Other derivative instruments (a) | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac19k in Nord Pool | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Hedging derivatives - interest rate swaps (a) | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac12k in Nord Pool | | | |
The Group\u2019s policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period. There were no transfers between the
levels of fair value hierarchy in 2022 and 2021. The Group
did not measure any financial assets or financial liabilities
at fair value on a non-recurring basis as at 31 December
2022.
35.2.2.Fair value measurements using quoted prices in
active markets for identical assets or liabilities (level 1)
The quoted debt instruments primarily relate to
investments in listed bonds held by Euronext Securities
Copenhagen and Euronext Clearing's own fund investments
in government bonds.
The quoted debt instruments of CCP clearing business
represent an investment portfolio in predominantly
government bonds funded by the margins and default funds
deposited by members of the CCP clearing business.
The derivative instruments of CCP clearing business
comprise open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The other instruments
of CCP clearing business include clearing member trading
balances for equity and debt instruments that are marked to
market on a daily basis.
Fair values of the instruments mentioned above are
determined by reference to published price quotations in an
active market.
35.2.3.Fair value measurements using observable
market data, directly or indirectly (level 2)
The fair value of interest rate swaps was calculated as the
present value of the estimated future net cash flows based
on observable yield curves at the reporting date.
35.2.4.Fair value measurements using unobservable
inputs (level 3)
The following table presents the changes in level 3 instruments for the period ended 31 December 2022:
| | | | |
| Unlisted equity securities | Contingent consideration payables | | |
|
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
2021:
| | | | | |
| Fair value at 31 December 2020 | | Range of inputs (probability-weighted average) | Relationship of unobservable inputs to fair value |
| | | | | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
Contingent consideration payables and redemption liability
The contingent consideration payable of \u20ac0.5 million related
to Black Woodpecker Software was paid in full in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-580": {
"value": "Segment reporting
Segments are reported in a manner consistent with how the
business is operated and reviewed by the chief operating
decision maker (CODM), who is responsible for allocating
resources and assessing performance of the operating
segments. The chief operating decision maker of the Group
is the Extended Managing Board. The organisation of the
Group reflects the high level of mutualisation of resources
across geographies and product lines. Operating results are
monitored on a group-wide basis and, accordingly, the
Group represents one operating segment and one
reportable segment. Operating results reported to the
Extended Managing Board are prepared on a measurement
basis consistent with the reported Consolidated Statement
of Profit or Loss.
In presenting and discussing the Group\u2019s financial position,
operating results and net results, management uses certain
Alternative performance measures not defined by IFRS.
These Alternative performance measures (APMs) should
not be viewed in isolation as alternatives to the equivalent
IFRS measures and should be used as supplementary
information in conjunction with the most directly
comparable IFRS measures. APMs do not have
standardised meaning under IFRS and therefore may not be
comparable to similar measures presented by other
companies. The Group measures performance based on
EBITDA1, as management believes that this measurement
is most relevant in evaluating the operating results of the
Group. This measure is included in the internal
management reports that are reviewed by the CODM.
Reference is made to one of the below definitions, whenever
the term \u2018EBITDA\u2019 is used throughout these Consolidated
Financial Statements:
\u25aaEBITDA1: 'Underlying' operating profit before
'underlying' depreciation and amortisation, taking
into account the lines described in the
Consolidated Statement of Profit or Loss;
\u25aaEBITDA2: Profit before (i)interest expense, (ii)tax,
(iii)any share of the profit of any associated
company or undertaking, except for dividends
received in cash by any member of the Group,
(iv)exceptional items; and (v) depreciation and
amortisation;
\u25aaEBITDA3: EBITDA as defined in the Share Purchase
Agreements of the acquired companies involved.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-581": {
"value": "Foreign currency transactions and
translation
(i)Functional and presentation currency
These Consolidated Financial Statements are presented in
Euro (EUR), which is the Group\u2019s presentation currency. The
functional currency of each Group entity is the currency of
the primary economic environment in which the entity
operates.
(ii)Transactions and balances
Foreign currency transactions are converted into the
functional currency using the rate ruling at the date of the
transactions. Foreign exchange gains or losses resulting
from the settlement of such transactions and from the
translation at year-end rates of monetary assets and
liabilities denominated in foreign currencies are recognised
in the Income Statement.
Exceptions to this are where the monetary items form part
of the net investment in a foreign operation or are
designated as hedges of a net investment, in which case the
exchange differences are recognised in Other
Comprehensive Income.
(iii)Group companies
The results and financial position of Group entities that have
a functional currency different from the presentation
currency are converted into the presentation currency as
follows:
\u25aaassets and liabilities (including goodwill) are
converted at the closing balance sheet rate.
\u25aaincome and expenses are translated at average
exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case
income and expenses are translated at the dates of
the transactions); and
\u25aaall resulting exchange differences are recognised
as currency translation adjustments within Other
Comprehensive Income.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-582": {
"value": "Functional and presentation currency
These Consolidated Financial Statements are presented in
Euro (EUR), which is the Group\u2019s presentation currency. The
functional currency of each Group entity is the currency of
the primary economic environment in which the entity
operates.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-583": {
"value": "Property, plant and equipment
Property, plant and equipment is carried at historical cost,
less accumulated depreciation and any impairment loss.
The cost of purchased property, plant and equipment is the
value of the consideration given to acquire the assets and
the value of other directly attributable costs. All repairs and
maintenance costs are charged to expense as incurred.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-584": {
"value": "Property, plant and equipment
Property, plant and equipment is carried at historical cost,
less accumulated depreciation and any impairment loss.
The cost of purchased property, plant and equipment is the
value of the consideration given to acquire the assets and
the value of other directly attributable costs. All repairs and
maintenance costs are charged to expense as incurred.
Property, plant and equipment is depreciated on a straight-
line basis over the estimated useful lives of the assets,
except land and construction in process assets, which are
not depreciated. The estimated useful lives, which are
reviewed annually and adjusted if appropriate, used by the
Group in all reporting periods presented are as follows:
\u25aaBuildings (including leasehold improvements) 5 to
40 years
\u25aaIT equipment2 to 3 years
\u25aaOther equipment 5 to 12 years
\u25aaFixtures and fittings4 to 10 years
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-585": {
"value": "Property, plant and equipment
Property, plant and equipment is depreciated on a straight-
line basis over the estimated useful lives of the assets,
except land and construction in process assets, which are
not depreciated. The estimated useful lives, which are
reviewed annually and adjusted if appropriate, used by the
Group in all reporting periods presented are as follows:
\u25aaBuildings (including leasehold improvements) 5 to
40 years
\u25aaIT equipment2 to 3 years
\u25aaOther equipment 5 to 12 years
\u25aaFixtures and fittings4 to 10 years
Internally generated intangible assets
Capitalised software development costs are amortised on a
straight-line basis over their useful lives, generally from 2
to 7 years. Other development expenditures that do not
meet these criteria, as well as software maintenance and
minor enhancements, are expensed as incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-586": {
"value": "Leases
(i)Right-of-use assets
The Group recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets
are measured at cost less any accumulated depreciation
and if necessary any accumulated impairment. The cost of a
right-of-use asset comprise the present value of the
outstanding lease payments, any lease payments made at or
before the commencement date less any lease incentives
received, any initial direct costs and an estimate of costs to
be incurred in dismantling or removing the underlying
asset. If the lease transfers ownership of the underlying
asset to the lessee at the end of the lease term or if the cost
of the right-of-use asset reflects that the lessee will
exercise a purchase option, the right-of-use asset is
depreciated to the end of the useful life of the underlying
asset. Otherwise the right-of-use asset is depreciated to the
end of the lease term.
(ii)Lease liabilities
At the commencement date of the lease, the Group
recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance
fixed payments) less any lease incentives receivable,
variable payments that depend on an index or rate and
amounts expected to be paid under residual value
guarantees. The lease payments also include the exercise
price of a purchase option reasonably certain to be
exercised by the Group and payments for penalties for
terminating a lease, if the lease term reflects the Group
exercising the option to terminate. Variable lease payments
that do not depend on an index or a rate are recognised as
expense in the period on which the event or condition that
triggers the payment occurs. In this context, the Group also
applies the practical expedient that the payments for non-
lease components are generally recognised as lease
payments. In calculating the present value of lease
payments, the Group uses the incremental borrowing rate
at the lease commencement date if the interest rate implicit
in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the in-
substance fixed lease payments or a change in the
assessment to purchase the underlying asset.
(iii)Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition
exemption to leases that have a lease term of 12 months or
less from the commencement date and do not contain a
purchase option. It also applies the lease of low-value
assets recognition exemption to leases of office IT
equipment and other staff equipment that are of low value.
Lease payments on short-term leases and leases of low-
value assets are recognised as expense on a straight-line
basis over the lease term.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-587": {
"value": "Goodwill and other intangible assets
(i)Goodwill
Goodwill represents the excess of the consideration
transferred in a business combination over the Group\u2019s
share in the fair value of the net identifiable assets and
liabilities of the acquired business at the date of acquisition.
Goodwill is not amortised but is tested at least annually for
impairment, or whenever an event or change in
circumstances indicate a potential impairment.
For the purpose of impairment testing, goodwill arising in a
business combination is allocated to the cash-generating
units (CGUs) or groups of CGUs that are expected to benefit
from the synergies of the combination. Each CGU or CGU
Group to which goodwill is allocated represents the lowest
level within the Group at which the goodwill is monitored for
internal management purposes.
The carrying value of a CGU Group is compared to its
recoverable amount, which is the higher of its value in use
and its fair value less costs of disposal. Impairment losses
on goodwill are not subsequently reversed. Value in use is
derived from the discounted future free cash flows of the
CGU Group. Fair value less costs of disposal is based on
discounted cash flows and market multiples applied to
forecasted earnings. Cash flow projections are based on
budget and business plan approved by management and
covering a 2-year period in total. Cash flows beyond the
business plan period are extrapolated using a perpetual
growth rate. Key assumptions used in goodwill impairment
test are described in Note 18.
(ii)Internally generated intangible assets
An intangible asset is an identifiable non-monetary asset
without physical substance. Such an asset is identifiable
when it is separable, or when it arises from contractual or
other legal rights.
Software development costs are capitalised only from the
date when all of the following conditions are met:
\u25aaThe technical feasibility of the development project
is demonstrated
\u25aaIt is probable that the project will be completed
and will generate future economic benefits; and
\u25aaThe project development costs can be reliably
measured.
Capitalised software development costs are amortised on a
straight-line basis over their useful lives, generally from 2
to 7 years. Other development expenditures that do not
meet these criteria, as well as software maintenance and
minor enhancements, are expensed as incurred.
(iii)Other intangible assets
Other intangible assets, which are acquired by the Group,
are stated at cost less accumulated amortisation and
impairment losses (if applicable). The estimated useful lives
are as follows:
\u25aaPurchased software and licenses:2-8 years
\u25aaCustomer relationships:11-40 years
\u25aaBrand names: Generally for brand names an
indefinite useful life is assumed. For brand names
with finite useful lives the expected useful life is up
to 3 years.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-588": {
"value": "Internally generated intangible assets
An intangible asset is an identifiable non-monetary asset
without physical substance. Such an asset is identifiable
when it is separable, or when it arises from contractual or
other legal rights.
Software development costs are capitalised only from the
date when all of the following conditions are met:
\u25aaThe technical feasibility of the development project
is demonstrated
\u25aaIt is probable that the project will be completed
and will generate future economic benefits; and
\u25aaThe project development costs can be reliably
measured.
Capitalised software development costs are amortised on a
straight-line basis over their useful lives, generally from 2
to 7 years. Other development expenditures that do not
meet these criteria, as well as software maintenance and
minor enhancements, are expensed as incurred.
(iii)Other intangible assets
Other intangible assets, which are acquired by the Group,
are stated at cost less accumulated amortisation and
impairment losses (if applicable). The estimated useful lives
are as follows:
\u25aaPurchased software and licenses:2-8 years
\u25aaCustomer relationships:11-40 years
\u25aaBrand names: Generally for brand names an
indefinite useful life is assumed. For brand names
with finite useful lives the expected useful life is up
to 3 years.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-589": {
"value": "Internally generated intangible assets
Software development costs are capitalised only from the
date when all of the following conditions are met:
\u25aaThe technical feasibility of the development project
is demonstrated
\u25aaIt is probable that the project will be completed
and will generate future economic benefits; and
\u25aaThe project development costs can be reliably
measured.
Capitalised software development costs are amortised on a
straight-line basis over their useful lives, generally from 2
to 7 years. Other development expenditures that do not
meet these criteria, as well as software maintenance and
minor enhancements, are expensed as incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-590": {
"value": "Derivative financial instruments and hedging
activities
(i)Initial recognition and measurement
The Group uses derivative financial instruments, such as
forward currency contracts and interest rate swaps, to
hedge its foreign currency risk and interest rate risks. Such
derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair
value is negative.
For the purpose of hedge accounting, hedges are classified
as fair value hedges when hedging the exposure to changes
in the fair value of a recognised asset or liability or an
unrecognised firm commitment.
At the inception of a hedge relationship, the Group formally
designates and documents the hedge relationship to which
it wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the
hedge.
The documentation includes identification of the hedging
instrument, the hedged item, the nature of the risk being
hedged and how the Group will assess whether the hedging
relationship meets the hedge effectiveness requirements
(including the analysis of sources of hedge ineffectiveness
and how the hedge ratio is determined). A hedging
relationship qualifies for hedge accounting if it meets all of
the following effectiveness requirements:
\u2022There is \u2018an economic relationship\u2019 between the
hedged item and the hedging instrument.
\u2022The effect of credit risk does not \u2018dominate the
value changes\u2019 that result from that economic
relationship.
\u2022The hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the Group actually hedges and
the quantity of the hedging instrument that the
Group actually uses to hedge that quantity of
hedged item.
The hedges relevant to the Group, that meet all the
qualifying criteria for hedge accounting are accounted for,
as described below:
Fair value hedges
The change in the fair value of a hedging instrument is
recognised in the statement of profit or loss. The change in
the fair value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value of the
hedged item and is also recognised in the statement of
profit or loss.
For fair value hedges relating to items carried at amortised
cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using
the Effective Interest Rate (EIR) method. The EIR
amortisation may begin as soon as an adjustment exists and
no later than when the hedged item ceases to be adjusted
for changes in its fair value attributable to the risk being
hedged.
If the hedged item is derecognised, the unamortised fair
value is recognised immediately in profit or loss.
When an unrecognised firm commitment is designated as a
hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged
risk is recognised as an asset or liability with a
corresponding gain or loss recognised in profit or loss.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including
a hedge of a monetary item that is accounted for as part of
the net investment, are accounted for as follows:
Gains or losses on the hedging instrument relating to the
effective portion of the hedge are recognised as Other
Comprehensive Income while any gains or losses relating to
the ineffective portion are recognised in the statement of
profit or loss. On disposal of the foreign operation, the
cumulative value of any such gains or losses recorded in
equity is transferred to the statement of profit or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-591": {
"value": "Derivative financial instruments and hedging
activities
(i)Initial recognition and measurement
The Group uses derivative financial instruments, such as
forward currency contracts and interest rate swaps, to
hedge its foreign currency risk and interest rate risks. Such
derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair
value is negative.
For the purpose of hedge accounting, hedges are classified
as fair value hedges when hedging the exposure to changes
in the fair value of a recognised asset or liability or an
unrecognised firm commitment.
At the inception of a hedge relationship, the Group formally
designates and documents the hedge relationship to which
it wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the
hedge.
The documentation includes identification of the hedging
instrument, the hedged item, the nature of the risk being
hedged and how the Group will assess whether the hedging
relationship meets the hedge effectiveness requirements
(including the analysis of sources of hedge ineffectiveness
and how the hedge ratio is determined). A hedging
relationship qualifies for hedge accounting if it meets all of
the following effectiveness requirements:
\u2022There is \u2018an economic relationship\u2019 between the
hedged item and the hedging instrument.
\u2022The effect of credit risk does not \u2018dominate the
value changes\u2019 that result from that economic
relationship.
\u2022The hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the Group actually hedges and
the quantity of the hedging instrument that the
Group actually uses to hedge that quantity of
hedged item.
The hedges relevant to the Group, that meet all the
qualifying criteria for hedge accounting are accounted for,
as described below:
Fair value hedges
The change in the fair value of a hedging instrument is
recognised in the statement of profit or loss. The change in
the fair value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value of the
hedged item and is also recognised in the statement of
profit or loss.
For fair value hedges relating to items carried at amortised
cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using
the Effective Interest Rate (EIR) method. The EIR
amortisation may begin as soon as an adjustment exists and
no later than when the hedged item ceases to be adjusted
for changes in its fair value attributable to the risk being
hedged.
If the hedged item is derecognised, the unamortised fair
value is recognised immediately in profit or loss.
When an unrecognised firm commitment is designated as a
hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged
risk is recognised as an asset or liability with a
corresponding gain or loss recognised in profit or loss.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including
a hedge of a monetary item that is accounted for as part of
the net investment, are accounted for as follows:
Gains or losses on the hedging instrument relating to the
effective portion of the hedge are recognised as Other
Comprehensive Income while any gains or losses relating to
the ineffective portion are recognised in the statement of
profit or loss. On disposal of the foreign operation, the
cumulative value of any such gains or losses recorded in
equity is transferred to the statement of profit or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-592": {
"value": "Derivative financial instruments and hedging
activities
(i)Initial recognition and measurement
The Group uses derivative financial instruments, such as
forward currency contracts and interest rate swaps, to
hedge its foreign currency risk and interest rate risks. Such
derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair
value is negative.
For the purpose of hedge accounting, hedges are classified
as fair value hedges when hedging the exposure to changes
in the fair value of a recognised asset or liability or an
unrecognised firm commitment.
At the inception of a hedge relationship, the Group formally
designates and documents the hedge relationship to which
it wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the
hedge.
The documentation includes identification of the hedging
instrument, the hedged item, the nature of the risk being
hedged and how the Group will assess whether the hedging
relationship meets the hedge effectiveness requirements
(including the analysis of sources of hedge ineffectiveness
and how the hedge ratio is determined). A hedging
relationship qualifies for hedge accounting if it meets all of
the following effectiveness requirements:
\u2022There is \u2018an economic relationship\u2019 between the
hedged item and the hedging instrument.
\u2022The effect of credit risk does not \u2018dominate the
value changes\u2019 that result from that economic
relationship.
\u2022The hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the Group actually hedges and
the quantity of the hedging instrument that the
Group actually uses to hedge that quantity of
hedged item.
The hedges relevant to the Group, that meet all the
qualifying criteria for hedge accounting are accounted for,
as described below:
Fair value hedges
The change in the fair value of a hedging instrument is
recognised in the statement of profit or loss. The change in
the fair value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value of the
hedged item and is also recognised in the statement of
profit or loss.
For fair value hedges relating to items carried at amortised
cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using
the Effective Interest Rate (EIR) method. The EIR
amortisation may begin as soon as an adjustment exists and
no later than when the hedged item ceases to be adjusted
for changes in its fair value attributable to the risk being
hedged.
If the hedged item is derecognised, the unamortised fair
value is recognised immediately in profit or loss.
When an unrecognised firm commitment is designated as a
hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged
risk is recognised as an asset or liability with a
corresponding gain or loss recognised in profit or loss.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including
a hedge of a monetary item that is accounted for as part of
the net investment, are accounted for as follows:
Gains or losses on the hedging instrument relating to the
effective portion of the hedge are recognised as Other
Comprehensive Income while any gains or losses relating to
the ineffective portion are recognised in the statement of
profit or loss. On disposal of the foreign operation, the
cumulative value of any such gains or losses recorded in
equity is transferred to the statement of profit or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-593": {
"value": "Derivative financial instruments and hedging
activities
(i)Initial recognition and measurement
The Group uses derivative financial instruments, such as
forward currency contracts and interest rate swaps, to
hedge its foreign currency risk and interest rate risks. Such
derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair
value is negative.
For the purpose of hedge accounting, hedges are classified
as fair value hedges when hedging the exposure to changes
in the fair value of a recognised asset or liability or an
unrecognised firm commitment.
At the inception of a hedge relationship, the Group formally
designates and documents the hedge relationship to which
it wishes to apply hedge accounting and the risk
management objective and strategy for undertaking the
hedge.
The documentation includes identification of the hedging
instrument, the hedged item, the nature of the risk being
hedged and how the Group will assess whether the hedging
relationship meets the hedge effectiveness requirements
(including the analysis of sources of hedge ineffectiveness
and how the hedge ratio is determined). A hedging
relationship qualifies for hedge accounting if it meets all of
the following effectiveness requirements:
\u2022There is \u2018an economic relationship\u2019 between the
hedged item and the hedging instrument.
\u2022The effect of credit risk does not \u2018dominate the
value changes\u2019 that result from that economic
relationship.
\u2022The hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the Group actually hedges and
the quantity of the hedging instrument that the
Group actually uses to hedge that quantity of
hedged item.
The hedges relevant to the Group, that meet all the
qualifying criteria for hedge accounting are accounted for,
as described below:
Fair value hedges
The change in the fair value of a hedging instrument is
recognised in the statement of profit or loss. The change in
the fair value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value of the
hedged item and is also recognised in the statement of
profit or loss.
For fair value hedges relating to items carried at amortised
cost, any adjustment to carrying value is amortised through
profit or loss over the remaining term of the hedge using
the Effective Interest Rate (EIR) method. The EIR
amortisation may begin as soon as an adjustment exists and
no later than when the hedged item ceases to be adjusted
for changes in its fair value attributable to the risk being
hedged.
If the hedged item is derecognised, the unamortised fair
value is recognised immediately in profit or loss.
When an unrecognised firm commitment is designated as a
hedged item, the subsequent cumulative change in the fair
value of the firm commitment attributable to the hedged
risk is recognised as an asset or liability with a
corresponding gain or loss recognised in profit or loss.
Hedges of a net investment
Hedges of a net investment in a foreign operation, including
a hedge of a monetary item that is accounted for as part of
the net investment, are accounted for as follows:
Gains or losses on the hedging instrument relating to the
effective portion of the hedge are recognised as Other
Comprehensive Income while any gains or losses relating to
the ineffective portion are recognised in the statement of
profit or loss. On disposal of the foreign operation, the
cumulative value of any such gains or losses recorded in
equity is transferred to the statement of profit or loss.
Financial instruments
(i)Classification and initial recognition
The Group classifies its financial instruments in the
following measurement categories:
\u25aaAmortised cost
\u25aaFair value through Other Comprehensive Income
(FVOCI)
\u25aaFair value through profit or loss (FVPL)
The classification depends on the Group\u2019s business model
for managing the financial instruments and the contractual
terms of the cash flows. For instruments measured at fair
value, gains and losses will either be recorded in profit or
loss or Other Comprehensive Income. For investments in
equity instruments that are not held for trading, this will
depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the
equity investment at fair value through Other
Comprehensive Income (FVOCI).
Financial assets and financial liabilities are initially
recognised on their settlement date. Except for trade
receivables, at initial recognition the Group measures a
financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL),
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or
loss. Financial assets with embedded derivatives are
considered in their entirety when determining whether their
cash flows are solely payment of principal and interest.
Trade receivables are initially measured at their transaction
price if they do not contain a significant financing
component in accordance with IFRS 15.
(ii)Subsequent measurement
Financial assets at amortised cost
Assets that are held for collection of contractual cash flows
where those cash flows represent solely payments of
principal and interest are measured at amortised cost.
Interest income from these financial assets is measured
using the effective interest rate method and is shown in
finance income. Any gain or loss arising on de-recognition is
recognised directly in profit or loss and presented in other
gains/(losses), together with foreign exchange gains and
losses. Impairment losses are presented as separate line
item in the statement of profit or loss.
The Group\u2019s financial assets at amortised cost include the
Group\u2019s trade and other receivables, loans and deposits
included under (non-current) Financial assets at amortised
cost, short-term deposits with a maturity of more than three
months included under other current financial assets and
cash and cash equivalents.
Financial assets at amortised cost - CCP clearing business
For financial assets from CCP clearing business all
measurement effects are shown in net treasury income
through CCP business.
This category includes clearing member trading balances
relating to certain collateralised transactions, other
receivables from clearing members of the CCP business
and clearing member cash an cash equivalents,
representing amounts received from the clearing members
to cover initial and variation margins and default fund
contributions that are not invested in bonds.
Financial assets at fair value through Other Comprehensive
Income (FVOCI)
Debt instruments that are held for collection of contractual
cash flows and for selling the financial assets, where the
assets\u2019 cash flows represent solely payments of principal
and interest, are measured at FVOCI. Movements in the
carrying amount are taken through Other Comprehensive
Income, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and
losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss
previously recognised in Other Comprehensive Income is
reclassified from equity to profit or loss and recognised in
other gains/(losses). Interest income from these financial
assets is included in finance income using the effective
interest rate method. Foreign exchange gains and losses
are presented in other gains/(losses) and impairment
expenses are presented as separate line item in the
statement of profit or loss. The Group\u2019s debt instruments at
FVOCI include the Group's investments in short-term listed
bonds and government bonds (long-term and short-term)
linked to Euronext Clearing's own funds.
Where the Group\u2019s management has elected to present fair
value gains and losses on equity investments in Other
Comprehensive Income, there is no subsequent
reclassification of fair value gains and losses to profit or
loss following the de-recognition of the investment.
Dividends from such investments will be recognised in profit
or loss as results from equity investments when the Group\u2019s
right to receive payments is established, except when the
Group benefits from such proceeds as a recovery of part of
the cost of the financial asset, in which case, such gains are
recorded in Other Comprehensive Income. The Group
elected to classify irrevocably its unlisted equity securities
that are held as long-term strategic investments that are
not expected to be sold in the foreseeable future in this
category.
Financial assets at fair value through Other Comprehensive
Income (FVOCI) - CCP clearing business
This category includes the investments made in
(predominantly) government bonds, that are funded by the
margins and default funds deposited by members of the
CCP clearing business. These investments are recognised
in 'CCP clearing business assets'. Interest income and
reclassified fair value gains/(losses) from these financial
assets are shown in net treasury income through CCP
business.
Financial assets at fair value through Profit or Loss (FVPL)
Assets that do not meet the criteria for amortised cost or
FVOCI are measured at FVPL. Changes in the fair value of
financial assets at FVPL are recognised in other gains/
(losses) in the statement of profit or loss as applicable.
Financial assets at fair value through Profit or Loss (FVPL) -
CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
Financial liabilities at fair value through Profit or Loss (FVPL)
Liabilities that are held for trading are measured at FVPL.
Changes in the fair value of financial liabilities at FVPL are
recognised in other gains/(losses) in the statement of profit
or loss as applicable.
Financial liabilities at fair value through Profit or Loss (FVPL)
- CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
Financial liabilities at amortised cost
Financial liabilities that are not held for trading are
generally accounted for at amortised cost. These
instruments are measured using the effective interest rate
method and interest expense is shown in finance costs. The
Group\u2019s financial liabilities at amortised cost include the
Group\u2019s trade and other payables, borrowings and lease
liabilities.
Financial liabilities at amortised cost - CCP clearing business
For financial liabilities from CCP clearing business all
measurement effects are shown in net treasury income
through CCP business. This category includes as well CCP
repurchase agreements and other payables to clearing
members related to initial and variation margins and default
fund contributions.
(iii)Impairment of financial assets
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to
receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life
of the exposure, irrespective of the timing of the default (a
lifetime ECL).
For trade and contract receivables, the Group applies a
simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors
and the economic environment.
Impairment losses (and reversal of impairment losses) on
equity investments measured at FVOCI are not reported
separately from other changes in fair value.
Further disclosures relating to impairment of financial
assets are also provided in Note 37.4. The Group considers
a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may
also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely
to receive the outstanding contractual amounts. A financial
asset is written off when there is no reasonable expectation
of recovering the contractual cash flows.
(iv)Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and only the net
amount is presented in the consolidated balance sheet
when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a
net basis or to realise the asset and settle the liability
simultaneously.
Trade receivables
Trade receivables are amounts due from customers for
services performed in the ordinary course of business. They
are generally due for settlement within 30 days and
therefore are all classified as current. Trade receivables are
recognised initially at the amount of consideration that is
unconditional unless they contain significant financing
components, when they are recognised at fair value. The
Group holds the trade receivables with the objective to
collect the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective
interest method, less loss allowance.
At Nord Pool all trades are settled on the day of trading or
on the following business day, with invoices and credit notes
being dispatched in the afternoon. Financial settlement is
due one working day after trading for net buyers and two
working days after trading for net sellers. Variations in
settlement cycle following variations in working days
combined with variations in physical power prices traded on
Nord Pool markets can give rise to significant fluctuations
in trade receivables from period to period.
M).Cash and cash equivalents
Cash and cash equivalents comprise cash at banks, highly
liquid investments with original maturities of three months
or less and investments in money market funds that are
readily convertible to known amounts of cash and are
subject to insignificant risk of changes in value.
N).Borrowings
Borrowings are initially recorded at the fair value of
proceeds received, net of transaction costs. Subsequently,
these liabilities are carried at amortised cost, and interest is
charged to profit or loss over the period of the borrowings
using the effective interest method. Accordingly, any
difference between the proceeds received, net of
transaction costs, and the redemption value is recognised in
profit or loss over the period of the borrowings using the
effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Trade and other payables
Trade payables are obligations to pay for goods or services
that have been acquired in the ordinary course of business.
Trade and other payables are recognised initially at fair
value and subsequently measured at amortised cost using
the effective interest method.
At Nord Pool all trades are settled on the day of trading or
on the following business day, with invoices and credit notes
being dispatched in the afternoon. Financial settlement is
due one working day after trading for net buyers and two
working days after trading for net sellers. Variations in
settlement cycle following variations in working days
combined with variations in physical power prices traded on
Nord Pool markets can give rise to significant fluctuations
in trade payables from period to period.
Contract balances
Receivables
A receivable represents the Group\u2019s right to an amount of
consideration that is unconditional (i.e., only the passage of
time is required before payment of the consideration is due
from the customer). The Group refers to billed receivables
as trade receivables, whereas unbilled receivables are
referred to as contract receivables by the Group.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-594": {
"value": "Financial instruments
(i)Classification and initial recognition
The Group classifies its financial instruments in the
following measurement categories:
\u25aaAmortised cost
\u25aaFair value through Other Comprehensive Income
(FVOCI)
\u25aaFair value through profit or loss (FVPL)
The classification depends on the Group\u2019s business model
for managing the financial instruments and the contractual
terms of the cash flows. For instruments measured at fair
value, gains and losses will either be recorded in profit or
loss or Other Comprehensive Income. For investments in
equity instruments that are not held for trading, this will
depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the
equity investment at fair value through Other
Comprehensive Income (FVOCI).
Financial assets and financial liabilities are initially
recognised on their settlement date. Except for trade
receivables, at initial recognition the Group measures a
financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL),
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or
loss. Financial assets with embedded derivatives are
considered in their entirety when determining whether their
cash flows are solely payment of principal and interest.
Trade receivables are initially measured at their transaction
price if they do not contain a significant financing
component in accordance with IFRS 15.
(ii)Subsequent measurement
Financial assets at amortised cost
Assets that are held for collection of contractual cash flows
where those cash flows represent solely payments of
principal and interest are measured at amortised cost.
Interest income from these financial assets is measured
using the effective interest rate method and is shown in
finance income. Any gain or loss arising on de-recognition is
recognised directly in profit or loss and presented in other
gains/(losses), together with foreign exchange gains and
losses. Impairment losses are presented as separate line
item in the statement of profit or loss.
The Group\u2019s financial assets at amortised cost include the
Group\u2019s trade and other receivables, loans and deposits
included under (non-current) Financial assets at amortised
cost, short-term deposits with a maturity of more than three
months included under other current financial assets and
cash and cash equivalents.
Financial assets at amortised cost - CCP clearing business
For financial assets from CCP clearing business all
measurement effects are shown in net treasury income
through CCP business.
This category includes clearing member trading balances
relating to certain collateralised transactions, other
receivables from clearing members of the CCP business
and clearing member cash an cash equivalents,
representing amounts received from the clearing members
to cover initial and variation margins and default fund
contributions that are not invested in bonds.
Financial assets at fair value through Other Comprehensive
Income (FVOCI)
Debt instruments that are held for collection of contractual
cash flows and for selling the financial assets, where the
assets\u2019 cash flows represent solely payments of principal
and interest, are measured at FVOCI. Movements in the
carrying amount are taken through Other Comprehensive
Income, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and
losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss
previously recognised in Other Comprehensive Income is
reclassified from equity to profit or loss and recognised in
other gains/(losses). Interest income from these financial
assets is included in finance income using the effective
interest rate method. Foreign exchange gains and losses
are presented in other gains/(losses) and impairment
expenses are presented as separate line item in the
statement of profit or loss. The Group\u2019s debt instruments at
FVOCI include the Group's investments in short-term listed
bonds and government bonds (long-term and short-term)
linked to Euronext Clearing's own funds.
Where the Group\u2019s management has elected to present fair
value gains and losses on equity investments in Other
Comprehensive Income, there is no subsequent
reclassification of fair value gains and losses to profit or
loss following the de-recognition of the investment.
Dividends from such investments will be recognised in profit
or loss as results from equity investments when the Group\u2019s
right to receive payments is established, except when the
Group benefits from such proceeds as a recovery of part of
the cost of the financial asset, in which case, such gains are
recorded in Other Comprehensive Income. The Group
elected to classify irrevocably its unlisted equity securities
that are held as long-term strategic investments that are
not expected to be sold in the foreseeable future in this
category.
Financial assets at fair value through Other Comprehensive
Income (FVOCI) - CCP clearing business
This category includes the investments made in
(predominantly) government bonds, that are funded by the
margins and default funds deposited by members of the
CCP clearing business. These investments are recognised
in 'CCP clearing business assets'. Interest income and
reclassified fair value gains/(losses) from these financial
assets are shown in net treasury income through CCP
business.
Financial assets at fair value through Profit or Loss (FVPL)
Assets that do not meet the criteria for amortised cost or
FVOCI are measured at FVPL. Changes in the fair value of
financial assets at FVPL are recognised in other gains/
(losses) in the statement of profit or loss as applicable.
Financial assets at fair value through Profit or Loss (FVPL) -
CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
Impairment of financial assets
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to
receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life
of the exposure, irrespective of the timing of the default (a
lifetime ECL).
For trade and contract receivables, the Group applies a
simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors
and the economic environment.
Impairment losses (and reversal of impairment losses) on
equity investments measured at FVOCI are not reported
separately from other changes in fair value.
Further disclosures relating to impairment of financial
assets are also provided in Note 37.4. The Group considers
a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may
also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely
to receive the outstanding contractual amounts. A financial
asset is written off when there is no reasonable expectation
of recovering the contractual cash flows.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and only the net
amount is presented in the consolidated balance sheet
when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a
net basis or to realise the asset and settle the liability
simultaneously.
Trade receivables
Trade receivables are amounts due from customers for
services performed in the ordinary course of business. They
are generally due for settlement within 30 days and
therefore are all classified as current. Trade receivables are
recognised initially at the amount of consideration that is
unconditional unless they contain significant financing
components, when they are recognised at fair value. The
Group holds the trade receivables with the objective to
collect the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective
interest method, less loss allowance.
At Nord Pool all trades are settled on the day of trading or
on the following business day, with invoices and credit notes
being dispatched in the afternoon. Financial settlement is
due one working day after trading for net buyers and two
working days after trading for net sellers. Variations in
settlement cycle following variations in working days
combined with variations in physical power prices traded on
Nord Pool markets can give rise to significant fluctuations
in trade receivables from period to period.
Cash and cash equivalents
Cash and cash equivalents comprise cash at banks, highly
liquid investments with original maturities of three months
or less and investments in money market funds that are
readily convertible to known amounts of cash and are
subject to insignificant risk of changes in value.
Contract balances
Receivables
A receivable represents the Group\u2019s right to an amount of
consideration that is unconditional (i.e., only the passage of
time is required before payment of the consideration is due
from the customer). The Group refers to billed receivables
as trade receivables, whereas unbilled receivables are
referred to as contract receivables by the Group.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-595": {
"value": "Financial instruments
(i)Classification and initial recognition
The Group classifies its financial instruments in the
following measurement categories:
\u25aaAmortised cost
\u25aaFair value through Other Comprehensive Income
(FVOCI)
\u25aaFair value through profit or loss (FVPL)
The classification depends on the Group\u2019s business model
for managing the financial instruments and the contractual
terms of the cash flows. For instruments measured at fair
value, gains and losses will either be recorded in profit or
loss or Other Comprehensive Income. For investments in
equity instruments that are not held for trading, this will
depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the
equity investment at fair value through Other
Comprehensive Income (FVOCI).
Financial assets and financial liabilities are initially
recognised on their settlement date. Except for trade
receivables, at initial recognition the Group measures a
financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL),
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or
loss. Financial assets with embedded derivatives are
considered in their entirety when determining whether their
cash flows are solely payment of principal and interest.
Trade receivables are initially measured at their transaction
price if they do not contain a significant financing
component in accordance with IFRS 15.
Subsequent measurement
Financial assets at fair value through Other Comprehensive
Income (FVOCI)
Debt instruments that are held for collection of contractual
cash flows and for selling the financial assets, where the
assets\u2019 cash flows represent solely payments of principal
and interest, are measured at FVOCI. Movements in the
carrying amount are taken through Other Comprehensive
Income, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and
losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss
previously recognised in Other Comprehensive Income is
reclassified from equity to profit or loss and recognised in
other gains/(losses). Interest income from these financial
assets is included in finance income using the effective
interest rate method. Foreign exchange gains and losses
are presented in other gains/(losses) and impairment
expenses are presented as separate line item in the
statement of profit or loss. The Group\u2019s debt instruments at
FVOCI include the Group's investments in short-term listed
bonds and government bonds (long-term and short-term)
linked to Euronext Clearing's own funds.
Where the Group\u2019s management has elected to present fair
value gains and losses on equity investments in Other
Comprehensive Income, there is no subsequent
reclassification of fair value gains and losses to profit or
loss following the de-recognition of the investment.
Dividends from such investments will be recognised in profit
or loss as results from equity investments when the Group\u2019s
right to receive payments is established, except when the
Group benefits from such proceeds as a recovery of part of
the cost of the financial asset, in which case, such gains are
recorded in Other Comprehensive Income. The Group
elected to classify irrevocably its unlisted equity securities
that are held as long-term strategic investments that are
not expected to be sold in the foreseeable future in this
category.
Financial assets at fair value through Other Comprehensive
Income (FVOCI) - CCP clearing business
This category includes the investments made in
(predominantly) government bonds, that are funded by the
margins and default funds deposited by members of the
CCP clearing business. These investments are recognised
in 'CCP clearing business assets'. Interest income and
reclassified fair value gains/(losses) from these financial
assets are shown in net treasury income through CCP
business.
Financial assets at fair value through Profit or Loss (FVPL)
Assets that do not meet the criteria for amortised cost or
FVOCI are measured at FVPL. Changes in the fair value of
financial assets at FVPL are recognised in other gains/
(losses) in the statement of profit or loss as applicable.
Financial assets at fair value through Profit or Loss (FVPL) -
CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
Financial liabilities at fair value through Profit or Loss (FVPL)
Liabilities that are held for trading are measured at FVPL.
Changes in the fair value of financial liabilities at FVPL are
recognised in other gains/(losses) in the statement of profit
or loss as applicable.
Financial liabilities at fair value through Profit or Loss (FVPL)
- CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-596": {
"value": "Financial instruments
(i)Classification and initial recognition
The Group classifies its financial instruments in the
following measurement categories:
\u25aaAmortised cost
\u25aaFair value through Other Comprehensive Income
(FVOCI)
\u25aaFair value through profit or loss (FVPL)
The classification depends on the Group\u2019s business model
for managing the financial instruments and the contractual
terms of the cash flows. For instruments measured at fair
value, gains and losses will either be recorded in profit or
loss or Other Comprehensive Income. For investments in
equity instruments that are not held for trading, this will
depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the
equity investment at fair value through Other
Comprehensive Income (FVOCI).
Financial assets and financial liabilities are initially
recognised on their settlement date. Except for trade
receivables, at initial recognition the Group measures a
financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL),
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or
loss. Financial assets with embedded derivatives are
considered in their entirety when determining whether their
cash flows are solely payment of principal and interest.
Trade receivables are initially measured at their transaction
price if they do not contain a significant financing
component in accordance with IFRS 15.
Subsequent measurement
Financial assets at fair value through Profit or Loss (FVPL)
Assets that do not meet the criteria for amortised cost or
FVOCI are measured at FVPL. Changes in the fair value of
financial assets at FVPL are recognised in other gains/
(losses) in the statement of profit or loss as applicable.
Financial assets at fair value through Profit or Loss (FVPL) -
CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
Financial liabilities at fair value through Profit or Loss (FVPL)
Liabilities that are held for trading are measured at FVPL.
Changes in the fair value of financial liabilities at FVPL are
recognised in other gains/(losses) in the statement of profit
or loss as applicable.
Financial liabilities at fair value through Profit or Loss (FVPL)
- CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-597": {
"value": "Financial instruments
(i)Classification and initial recognition
The Group classifies its financial instruments in the
following measurement categories:
\u25aaAmortised cost
\u25aaFair value through Other Comprehensive Income
(FVOCI)
\u25aaFair value through profit or loss (FVPL)
The classification depends on the Group\u2019s business model
for managing the financial instruments and the contractual
terms of the cash flows. For instruments measured at fair
value, gains and losses will either be recorded in profit or
loss or Other Comprehensive Income. For investments in
equity instruments that are not held for trading, this will
depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the
equity investment at fair value through Other
Comprehensive Income (FVOCI).
Financial assets and financial liabilities are initially
recognised on their settlement date. Except for trade
receivables, at initial recognition the Group measures a
financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss (FVPL),
transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of
financial assets carried at FVPL are expensed in profit or
loss. Financial assets with embedded derivatives are
considered in their entirety when determining whether their
cash flows are solely payment of principal and interest.
Trade receivables are initially measured at their transaction
price if they do not contain a significant financing
component in accordance with IFRS 15.
Subsequent measurement
Financial liabilities at fair value through Profit or Loss (FVPL)
Liabilities that are held for trading are measured at FVPL.
Changes in the fair value of financial liabilities at FVPL are
recognised in other gains/(losses) in the statement of profit
or loss as applicable.
Financial liabilities at fair value through Profit or Loss (FVPL)
- CCP clearing business
This category includes clearing member trading balances
comprising derivatives, equity and debt instruments that are
marked to market on a daily basis. In particular these
include open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The fair valuation of
such positions is determined on the market price of each
individual financial instrument at closing of the reporting
period.
As the amounts of clearing member trading assets and
liabilities at FVPL are equally entered in both assets and
liabilities, the fair valuation of both items does not lead to
any net profit or loss in the income statement of the Group.
Financial liabilities at amortised cost
Financial liabilities that are not held for trading are
generally accounted for at amortised cost. These
instruments are measured using the effective interest rate
method and interest expense is shown in finance costs. The
Group\u2019s financial liabilities at amortised cost include the
Group\u2019s trade and other payables, borrowings and lease
liabilities.
Financial liabilities at amortised cost - CCP clearing business
For financial liabilities from CCP clearing business all
measurement effects are shown in net treasury income
through CCP business. This category includes as well CCP
repurchase agreements and other payables to clearing
members related to initial and variation margins and default
fund contributions.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and only the net
amount is presented in the consolidated balance sheet
when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a
net basis or to realise the asset and settle the liability
simultaneously.
Borrowings
Borrowings are initially recorded at the fair value of
proceeds received, net of transaction costs. Subsequently,
these liabilities are carried at amortised cost, and interest is
charged to profit or loss over the period of the borrowings
using the effective interest method. Accordingly, any
difference between the proceeds received, net of
transaction costs, and the redemption value is recognised in
profit or loss over the period of the borrowings using the
effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Trade and other payables
Trade payables are obligations to pay for goods or services
that have been acquired in the ordinary course of business.
Trade and other payables are recognised initially at fair
value and subsequently measured at amortised cost using
the effective interest method.
At Nord Pool all trades are settled on the day of trading or
on the following business day, with invoices and credit notes
being dispatched in the afternoon. Financial settlement is
due one working day after trading for net buyers and two
working days after trading for net sellers. Variations in
settlement cycle following variations in working days
combined with variations in physical power prices traded on
Nord Pool markets can give rise to significant fluctuations
in trade payables from period to period.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-598": {
"value": "Financial instruments
(i)Classification and initial recognition
The Group classifies its financial instruments in the
following measurement categories:
\u25aaAmortised cost
\u25aaFair value through Other Comprehensive Income
(FVOCI)
\u25aaFair value through profit or loss (FVPL)
The classification depends on the Group\u2019s business model
for managing the financial instruments and the contractual
terms of the cash flows. For instruments measured at fair
value, gains and losses will either be recorded in profit or
loss or Other Comprehensive Income. For investments in
equity instruments that are not held for trading, this will
depend on whether the group has made an irrevocable
election at the time of initial recognition to account for the
equity investment at fair value through Other
Comprehensive Income (FVOCI).
Subsequent measurement
Financial assets at fair value through Other Comprehensive
Income (FVOCI)
Debt instruments that are held for collection of contractual
cash flows and for selling the financial assets, where the
assets\u2019 cash flows represent solely payments of principal
and interest, are measured at FVOCI. Movements in the
carrying amount are taken through Other Comprehensive
Income, except for the recognition of impairment gains or
losses, interest revenue and foreign exchange gains and
losses which are recognised in profit or loss. When the
financial asset is derecognised, the cumulative gain or loss
previously recognised in Other Comprehensive Income is
reclassified from equity to profit or loss and recognised in
other gains/(losses). Interest income from these financial
assets is included in finance income using the effective
interest rate method. Foreign exchange gains and losses
are presented in other gains/(losses) and impairment
expenses are presented as separate line item in the
statement of profit or loss. The Group\u2019s debt instruments at
FVOCI include the Group's investments in short-term listed
bonds and government bonds (long-term and short-term)
linked to Euronext Clearing's own funds.
Where the Group\u2019s management has elected to present fair
value gains and losses on equity investments in Other
Comprehensive Income, there is no subsequent
reclassification of fair value gains and losses to profit or
loss following the de-recognition of the investment.
Dividends from such investments will be recognised in profit
or loss as results from equity investments when the Group\u2019s
right to receive payments is established, except when the
Group benefits from such proceeds as a recovery of part of
the cost of the financial asset, in which case, such gains are
recorded in Other Comprehensive Income. The Group
elected to classify irrevocably its unlisted equity securities
that are held as long-term strategic investments that are
not expected to be sold in the foreseeable future in this
category.
Financial assets at fair value through Other Comprehensive
Income (FVOCI) - CCP clearing business
This category includes the investments made in
(predominantly) government bonds, that are funded by the
margins and default funds deposited by members of the
CCP clearing business. These investments are recognised
in 'CCP clearing business assets'. Interest income and
reclassified fair value gains/(losses) from these financial
assets are shown in net treasury income through CCP
business.
Impairment of financial assets
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to
receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life
of the exposure, irrespective of the timing of the default (a
lifetime ECL).
For trade and contract receivables, the Group applies a
simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors
and the economic environment.
Impairment losses (and reversal of impairment losses) on
equity investments measured at FVOCI are not reported
separately from other changes in fair value.
Further disclosures relating to impairment of financial
assets are also provided in Note 37.4. The Group considers
a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may
also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely
to receive the outstanding contractual amounts. A financial
asset is written off when there is no reasonable expectation
of recovering the contractual cash flows.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-599": {
"value": "Impairment of financial assets
The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to
receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the
next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in
credit risk since initial recognition, a loss allowance is
required for credit losses expected over the remaining life
of the exposure, irrespective of the timing of the default (a
lifetime ECL).
For trade and contract receivables, the Group applies a
simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors
and the economic environment.
Impairment losses (and reversal of impairment losses) on
equity investments measured at FVOCI are not reported
separately from other changes in fair value.
Further disclosures relating to impairment of financial
assets are also provided in Note 37.4. The Group considers
a financial asset in default when contractual payments are
90 days past due. However, in certain cases, the Group may
also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely
to receive the outstanding contractual amounts. A financial
asset is written off when there is no reasonable expectation
of recovering the contractual cash flows.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-600": {
"value": "Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and only the net
amount is presented in the consolidated balance sheet
when there is a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a
net basis or to realise the asset and settle the liability
simultaneously.
Financial instruments",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-601": {
"value": "Trade receivables
Trade receivables are amounts due from customers for
services performed in the ordinary course of business. They
are generally due for settlement within 30 days and
therefore are all classified as current. Trade receivables are
recognised initially at the amount of consideration that is
unconditional unless they contain significant financing
components, when they are recognised at fair value. The
Group holds the trade receivables with the objective to
collect the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective
interest method, less loss allowance.
At Nord Pool all trades are settled on the day of trading or
on the following business day, with invoices and credit notes
being dispatched in the afternoon. Financial settlement is
due one working day after trading for net buyers and two
working days after trading for net sellers. Variations in
settlement cycle following variations in working days
combined with variations in physical power prices traded on
Nord Pool markets can give rise to significant fluctuations
in trade receivables from period to period.
Contract balances
Receivables
A receivable represents the Group\u2019s right to an amount of
consideration that is unconditional (i.e., only the passage of
time is required before payment of the consideration is due
from the customer). The Group refers to billed receivables
as trade receivables, whereas unbilled receivables are
referred to as contract receivables by the Group.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-602": {
"value": "Cash and cash equivalents
Cash and cash equivalents comprise cash at banks, highly
liquid investments with original maturities of three months
or less and investments in money market funds that are
readily convertible to known amounts of cash and are
subject to insignificant risk of changes in value.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-603": {
"value": "Borrowings
Borrowings are initially recorded at the fair value of
proceeds received, net of transaction costs. Subsequently,
these liabilities are carried at amortised cost, and interest is
charged to profit or loss over the period of the borrowings
using the effective interest method. Accordingly, any
difference between the proceeds received, net of
transaction costs, and the redemption value is recognised in
profit or loss over the period of the borrowings using the
effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-604": {
"value": "Borrowings
Borrowings are initially recorded at the fair value of
proceeds received, net of transaction costs. Subsequently,
these liabilities are carried at amortised cost, and interest is
charged to profit or loss over the period of the borrowings
using the effective interest method. Accordingly, any
difference between the proceeds received, net of
transaction costs, and the redemption value is recognised in
profit or loss over the period of the borrowings using the
effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-605": {
"value": "Borrowings
Borrowings are initially recorded at the fair value of
proceeds received, net of transaction costs. Subsequently,
these liabilities are carried at amortised cost, and interest is
charged to profit or loss over the period of the borrowings
using the effective interest method. Accordingly, any
difference between the proceeds received, net of
transaction costs, and the redemption value is recognised in
profit or loss over the period of the borrowings using the
effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised as
a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-606": {
"value": "Provisions
Provisions are recognised when the Group has a present
legal or constructive obligation as a result of past events; it
is probable that an outflow of resources will be required to
settle the obligation; and the amount can be reliably
estimated. Restructuring provisions primarily comprise
employee termination payments. Provisions are not
recognised for future operating losses, unless there is an
onerous contract. Provisions are measured at the present
value of the expenditures expected to be required to settle
the obligation using a pre-tax risk-free discount rate. The
increase in the provision due to passage of time is
recognised as interest expense.
An onerous contract is a contract in which the unavoidable
costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it. The
unavoidable costs under a contract reflect the least net cost
of exiting from the contract, which is the lower of the cost of
fulfilling it or any compensation or penalties arising from
failure to fulfil it.
Post-employment benefits
The Group operates defined benefit pension schemes and
defined contribution pension schemes. When the Group
pays fixed contributions to a pension fund or pension
insurance plan and the Group has no legal or constructive
obligation to make further contributions, if the fund\u2019s assets
are insufficient to pay all pension benefits, the plan is
considered to be a defined contribution plan. In that case,
contributions are recognised as employee expense when
they become due.
For the defined benefit schemes, the net asset or liability
recognised on the balance sheet comprises the difference
between the present value of the defined benefit pension
obligation and the fair value of plan assets. A net asset is
recognised only to the extent the Group has the right to
effectively benefit from the plan surplus. The service cost,
representing benefits accruing to employees in the period,
and the net interest income or expense arising from the net
defined benefit asset or liability are recorded within
operating expenses in the Statement of Profit or Loss.
Actuarial gains and losses arising from experience
adjustments, changes in actuarial assumptions or
differences between actual and expected returns on assets
are recognised in equity as a component of Other
Comprehensive Income. The impact of a plan amendment,
curtailment or settlement is recognised immediately when
it arises in profit or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-607": {
"value": "Trade and other payables
Trade payables are obligations to pay for goods or services
that have been acquired in the ordinary course of business.
Trade and other payables are recognised initially at fair
value and subsequently measured at amortised cost using
the effective interest method.
At Nord Pool all trades are settled on the day of trading or
on the following business day, with invoices and credit notes
being dispatched in the afternoon. Financial settlement is
due one working day after trading for net buyers and two
working days after trading for net sellers. Variations in
settlement cycle following variations in working days
combined with variations in physical power prices traded on
Nord Pool markets can give rise to significant fluctuations
in trade payables from period to period.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-608": {
"value": "Post-employment benefits
The Group operates defined benefit pension schemes and
defined contribution pension schemes. When the Group
pays fixed contributions to a pension fund or pension
insurance plan and the Group has no legal or constructive
obligation to make further contributions, if the fund\u2019s assets
are insufficient to pay all pension benefits, the plan is
considered to be a defined contribution plan. In that case,
contributions are recognised as employee expense when
they become due.
For the defined benefit schemes, the net asset or liability
recognised on the balance sheet comprises the difference
between the present value of the defined benefit pension
obligation and the fair value of plan assets. A net asset is
recognised only to the extent the Group has the right to
effectively benefit from the plan surplus. The service cost,
representing benefits accruing to employees in the period,
and the net interest income or expense arising from the net
defined benefit asset or liability are recorded within
operating expenses in the Statement of Profit or Loss.
Actuarial gains and losses arising from experience
adjustments, changes in actuarial assumptions or
differences between actual and expected returns on assets
are recognised in equity as a component of Other
Comprehensive Income. The impact of a plan amendment,
curtailment or settlement is recognised immediately when
it arises in profit or loss.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-609": {
"value": "Share-based compensation
Certain employees of the Group participate in Euronext\u2019s
share-based compensation plans. Awards granted by
Euronext under the plans are restricted stock units (RSUs).
Under these plans, Euronext receives services from its
employees as consideration for equity instruments of the
group. As the awards are settled in shares of Euronext N.V.,
they are classified as equity settled awards.
The share-based compensation reflected in the Statement
of Profit or Loss relates to the RSUs granted by Euronext to
the Group\u2019s employees. The equity instruments granted do
not vest until the employee completes a specified period of
service, typically three years. The grant-date fair value of
the equity settled RSUs is recognised as compensation
expense over the required vesting period, with a
corresponding credit to equity.
Euronext has performance share plans, under which shares
are conditionally granted to certain employees. The fair
value of awards at grant date is calculated using market-
based pricing, i.e. the fair value of Euronext shares. This
value is expensed over their vesting period, with a
corresponding credit to equity. The expense is reviewed and
adjusted to reflect changes to the level of awards expected
to vest, except where this arises from a failure to meet a
market condition or a non-vesting condition in which case
no adjustment applies.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-610": {
"value": "Treasury shares
The Group reacquires its own equity instruments. Those
instruments (\u2018treasury shares\u2019) are deducted from equity.
No gain or loss is recognised in profit or loss on the
purchase, sale, issue or cancellation of an entity\u2019s own
equity instruments. Such treasury shares may be acquired
and held by the entity or by other members of the
consolidated group. Consideration paid or received is
recognised directly in equity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-611": {
"value": "Revenue (from contracts with customers)
and income
The Group is in the business of providing a diverse range of
products and services combining transparent and efficient
equity, fixed income securities and derivatives markets. The
Group\u2019s main businesses comprise listing, cash trading,
derivatives trading, fixed income trading, spot FX trading,
power trading, market data and indices, post-trade and
market solutions & other. Revenue from contracts with
customers is recognised when control of the good and
services are transferred to the customer at an amount that
reflects the consideration to which the Group expects to be
entitled in exchange for those goods or services. The Group
has generally concluded that, except for the revenue
sharing agreement with Intercontinental Exchange (ICE), it
is principal in its revenue arrangements because it typically
controls the goods or services before transferring them to
the customer.
The disclosures of significant accounting judgements,
estimates and assumptions relating to revenue from
contracts with customers are provided in section \u2018Critical
accounting estimates and assumptions\u2019.
(i)Listing and Corporate services
Listing fees primarily consist of original listing fees paid by
issuers to list securities on the various cash markets
(admission fees), subsequent admission fees for other
corporate actions (such as admission of additional
securities) and annual listing fees paid by companies whose
financial instruments are listed on the cash markets. The
admission services around initial (and subsequent)
admission and its directly related corporate action services
are considered activities that the Group needs to undertake
to enable the customer to be listed. These activities are
combined with the ongoing listing services and are used as
inputs to produce the combined output, which is the service
of being listed. Consequently, revenue generated from this
combined performance obligation is recognised based on
time elapsed over the listing period, as this best reflects the
continuous transfer of the listing services.
Corporate services revenues are earned from webcast
solutions, board portal solutions, insider list management
solutions and investor relationship management solutions.
For corporate services that are provided to customers
under an access license, revenue is recognised evenly over
the contractual period of the license, as this best reflects
the continuous benefit from the license by the customer
throughout this period. For corporate services that are
provided to customers on an event basis or under a \u2018right-
to-use\u2019 license, revenue will be recognised at the point in
time of the event or acceptance of the license.
(ii)Trading
The Group earns cash trading fees for customer orders of
equity securities and other cash instruments on the Group\u2019s
cash markets, earns derivative trading fees for the
execution of trades of derivative contracts on the Group\u2019s
derivative markets and earns fixed income trading fees for
the execution of trades of debt securities on the Group\u2019s
fixed income markets. Spot FX trading fees are earned for
execution of trades of foreign exchange contracts on the
FastMatch markets. Power trading fees are earned for
execution of trades on Nord Pool\u2019s day ahead and intraday
physical energy markets. Customers obtain control over the
service provided at execution of the trade. Revenue is
recognised at that point in time.
Membership and subscription fees for the Borsa Italiana
Group markets are generally paid in advance on the first day
of the membership or subscription period. The Group
recognises revenue on a straight-line basis over the period
to which the fee relates, as this best reflects the extent of
the Group\u2019s progress towards completion of the
performance obligation under the contract.
(iii)Advanced data services
The Group charges clients on a per-user basis for the
access to its real-time and proprietary market data
information services. The Group also collects periodic
license fees from clients for the right to distribute the Group
data to third parties. Customers obtain control over the
market data service provided during the period over which it
has access to the data. Consequently revenue is recognised
based on time elapsed over the market data access period,
as the Group meets its obligation to deliver data
consistently throughout this period.
The Group generates indices revenues from Index licensing
fees, which gives customers the right to apply Euronext
Index Trademark names in their products and ETFs. The
nature of an index-license is considered a distinct \u2018right-to-
access\u2019 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
evenly over the contractual period of the license, as this
best reflects the continuous benefit from the license by the
customer throughout this period.
(iv)Post trade
Post-trade revenue primarily include clearing, settlement
and custody fees. Clearing fees are recognised when the
clearing of the trading transaction is completed. Customers
obtain control over the service provided at completion of
clearing the securities, which is the only performance
obligation. Revenue is recognised at that point in time. The
Group earns clearing fees through the activities from its
own clearing house CC&G and through an agreement with
LCH S.A. in which the latter is providing clearing service as
a service provider, executing the service under control of
the Group. The nature of the promise is the execution of a
cleared trade on the Group\u2019s trading platforms. The Group
controls the 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 clearing
services to its customers and consequently the Group
recognises its clearing revenue on a gross basis.
Settlement fees are recognised when the settlement of the
trading transaction is completed. Customers obtain control
over the service provided at completion of the settlement of
the securities, which is the only performance obligation.
Revenue is recognised at that point in time. Custody fees
are recognised as the service of holding the customer\u2019s
securities in custody is performed. Revenue is recognised
based on time elapsed over that period of time, as this best
reflects the continuous transfer of services.
(v)Euronext Technologies & Other revenue
Euronext Technologies and other revenue include software
license and maintenance services, IT (hosting) services
provided to third-party market operators, connection
services and data centre colocation services provided to
market participants, and other revenue.
Software licenses that are distinct can be considered a
\u2018right-to-use\u2019 license, given the significant stand-alone
functionality of the underlying intellectual property.
Consequently revenue will be recognised at the point in time
of acceptance of the software and the source code by the
customer. For software licenses that are combined with a
significant modification service revenues are recognised
over time, using the input method of labor hours spend
during the significant modification period, as the Group has
no alternative use for these combined performance
obligations and would have an enforceable right to payment
for performance completed to date. Revenue from software
maintenance services are recognised evenly over the
maintenance agreement period, as this best reflects the
continuous transfer of maintenance services throughout the
contract period.
The Group delivers hosting services to customers that are
using the software installed in the Euronext data centre to
use the Group\u2019s trading platforms. Installation services
provided before the start of a hosting service do not include
significant client customisation of the software installed in
the Euronext data centre. The installation service itself does
not transfer a good or service to the customer, but are
required to successfully transfer the only performance
obligation for which the customer has contracted, which is
the hosting service. Revenue generated from this
performance obligation is recognised evenly over the full
service period of the hosting contract, as this best reflects
the continuous transfer of hosting services to the customer.
Part of the connection services and data centre colocation
services are provided under a revenue sharing agreement
with Intercontinental Exchange (ICE). Euronext is providing
ICE the right to provide services directly to Euronext
customers, to which Euronext provides a continuous
customer access to the relevant Euronext Group markets
and as such, Euronext is arranging for the specified services
to be provided by another party as an agent. Euronext
customers connect to its markets via the ICE SFTI\u00ae network
or rent colocation space in the ICE data centres that house
Euronext\u2019s trading platforms. ICE receives fees from
Euronext customers over the period of access to the SFTI\u00ae
network and over the colocation rental period. The Group
recognises its revenue share over that same period of time,
using the practical expedient provided in IFRS 15.B16 that
allows an entity to recognise revenue in the amount to
which it has the right to invoice. The entitled amount that
Euronext invoices to ICE corresponds directly with the value
that Euronext\u2019s performance obligation has to ICE, which
equals to the agreed commission.
As from the data centre migration in June 2022, revenues
for connection services and data centre colocation services
are also generated from Euronext's core data centre facility
in Bergamo. Fees received for these services are
recognised evenly over the customer's access period and
colocation rental period, as this best reflects the continuous
transfer of these services.
The Group also generates revenue from other connection
services that trading members are using primarily for the
purpose of placing their cash and derivatives trading orders.
Members enter into contracts that generate access
availability for placing trading orders (the active logon
session). Customers obtain control over the service
provided during the period of access to their active logon
session. Revenue is recognised evenly over that period of
time, as this best reflects the continuous transfer of
technology services.
(vi)Net treasury income through CCP business
Income recognised in the CCP clearing businesses includes
net treasury income earned on margin and default funds,
held as part of the risk management process. Net treasury
income is the result of interest earned on cash assets
lodged with the clearing house, less interest paid to the
members on their margin and default fund contributions.
Net treasury income is shown separately from the Group\u2019s
revenues on the face of the income statement to distinguish
this income stream from revenues arising from other
activities and provide a greater understanding of the
operating activities of the Group. Where negative interest
rates apply, the Group recognises interest paid on cash
assets as a treasury expense and interest received on
clearing members\u2019 margin as treasury income.
(vi)Other income
Other income is income not attributable to the typical
business model of the Group. Other income primarily
consists of transitional income from services provided by
Borsa Italiana Group to London Stock Exchange Group
(LSEG) to facilitate the transition of ownership following the
acquisition of Borsa Italiana Group.
(vii)Contract balances
Receivables
A receivable represents the Group\u2019s right to an amount of
consideration that is unconditional (i.e., only the passage of
time is required before payment of the consideration is due
from the customer). The Group refers to billed receivables
as trade receivables, whereas unbilled receivables are
referred to as contract receivables by the Group.
Contract assets
A contract asset is the conditional right to consideration in
exchange for goods or services transferred to the customer.
Contract assets are transferred to receivables when the
entitlement to consideration becomes unconditional and
only the passage of time is required before payment is due.
Contract liabilities
A contract liability is the obligation to transfer goods or
services to a customer for which the Group has received
consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before the
Group transfers goods or services to the customer, a
contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Group performs under
the contract.
(viii)Significant financing component\u00a0
Generally, 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. The primary exception
considers contracts containing listing services. As the
payment for listing admission services appears upfront the
start of the contract, the period between revenue
recognition from listing admission services and payment by
the customer can exceed one year. However the Group
determined that the payment terms were structured not
with the primary purpose of obtaining financing from the
customer, but to minimise the risk of non-payment as there
is not a stated duration of the period of the listing. As a
consequence, the Group does not adjust any of the
transaction prices for the time value of money.
(viv)Cost to obtain or fulfil a contract
The Group does not incur material costs to obtain contracts
such as sales commissions. Costs to fulfil a contract are
costs that relate directly to a contract or a specifically
anticipated contract, generate or enhance resources of the
Group that will be used to satisfy future performance
obligations, and are recoverable. Costs to fulfil a contract
are capitalised and amortised on a straight line basis over
the term of the specific contract it relates to, consistent with
the pattern of recognition of the associated revenue.
Revenue from contracts with customers
The Group applied the following judgments that significantly
affect the determination of the amount and timing of
revenue from contracts with customers:
Identifying performance obligations and determining the
timing of revenue recognition of Listing admission fees
The Group provides services related to the initial (and
subsequent) listing of securities on its markets and hereto
directly related corporate action services, and ongoing
services related to the continuous listing.
The Group determined that the admission services around
initial (and subsequent) admission and its directly related
corporate action services do not transfer a good or service
to the customer, but are considered activities that the Group
needs to undertake to enable the customer to be listed. The
Group concluded that these activities should be combined
with the ongoing listing services and should be used as
inputs to produce the combined output, which is the service
of being listed. As the service of being listed is satisfied over
a period of time, as the customer simultaneously receives
and consumes the benefits from the service, the related
revenues are therefore recognised over a period of time.
The Group determined that the period of time that best
reflects the satisfaction of listing admission services is the
period over which the customer actually benefits from the
admission. An average lifetime of companies being listed on
Euronext markets would serve as best proxy for the period
that a listing customer benefits from an admission. Specific
local market characteristics can result and would justify
differences in amortisation terms. Based on historic
evidence, the Group has defined the following average
lifetimes for the relevant groupings of listed securities:
Equity admissions: 5-12 years
Bond- and fund admissions: 3 years
Equity subsequent admissions (follow-on\u2019s):3 years
Revenue from the listing admission services is therefore
recognised over those periods of time.
Cost to obtain or fulfil a contract related to listing
admission services
The Group has considered the type of cost that is directly
associated to a listing contract and that can be separately
identifiable. Such cost would typically concern staff cost
incurred by the Listings team involved in admission- and
subsequent listing of an issuer. There is no correlation
between number of listings and staff cost associated to the
Listings team.
The majority of the cost to obtain and fulfil the contract is
incurred in the period before the actual admission. The
remaining cost associated to an admission and subsequent
listing that is recorded post-admission, and its impact on
the Group\u2019s income statement, would be marginal,
therefore the Group has decided not to capitalise cost
incurred to obtain- or fulfil listing contracts.
Principal versus agent considerations
The Group entered into a clearing agreement with LCH SA
in respect of the clearing of trades on our continental
Europe derivatives markets (the \u201cDerivatives Clearing
Agreement\u201d). Under the terms of this Derivatives Clearing
Agreement Euronext agreed with LCH SA to share revenues
and receives clearing fee revenues based on the number of
trades on these markets cleared through LCH SA. In
exchange for that, we have agreed to pay LCH SA a fixed fee
plus a variable fee based on revenues.
The definition of the accounting treatment of this agreement
requires significant management judgment for the valuation
and weighting of the indicators leading the principal versus
agent accounting analysis. Based on all facts and
circumstances around this arrangement, management has
concluded that Euronext is \u2018principal\u2019 in providing
Derivatives clearing services to its trading members.
Therefore Euronext recognises (i) the clearing fees received
are classified as post trade revenues, and (ii) the fixed and
variable fees paid to LCH SA as other operational expenses.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-612": {
"value": "Revenue (from contracts with customers) and incomeNet treasury income through CCP business
Income recognised in the CCP clearing businesses includes
net treasury income earned on margin and default funds,
held as part of the risk management process. Net treasury
income is the result of interest earned on cash assets
lodged with the clearing house, less interest paid to the
members on their margin and default fund contributions.
Net treasury income is shown separately from the Group\u2019s
revenues on the face of the income statement to distinguish
this income stream from revenues arising from other
activities and provide a greater understanding of the
operating activities of the Group. Where negative interest
rates apply, the Group recognises interest paid on cash
assets as a treasury expense and interest received on
clearing members\u2019 margin as treasury income.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-613": {
"value": "Non-underlying items
Non-underlying items are items of income and expense that
are material by their size and/or that are infrequent and
unusual by their nature or incidence are not considered to
be incurred in the normal course of business and are
classified as non-underlying items on the face of the income
statement within their relevant category in order to provide
further understanding of the ongoing sustainable
performance of the Group.
Non-underlying items include:
\u2022 Operating income and expense items which are material
by their size and/or are infrequent and unusual by their
nature, such as integration or double run costs of significant
projects (one side of the cost to resource both the old and
the new services within the project), restructuring costs and
costs related to acquisitions that change the perimeter of
the Group.
\u2022 Non-operating income and expense items which are
material by their size and/or are infrequent and unusual by
their nature, such as one-off finance costs, gains or losses
on sale of subsidiaries and impairments of investments.
\u2022 Amortisation and impairment of intangible assets which
are recognised as a result of acquisitions. These intangible
assets mostly comprise customer relationships, brand
names and software that were identified during purchase
price allocation (PPA). This amortisation is presented as a
non-underlying item in order to provide more meaningful
information regarding the Group\u2019s sustainable
performance.
\u2022 Tax related to non-underlying items.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForExceptionalItemsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-614": {
"value": "Non-underlying items
Non-underlying items are items of income and expense that
are material by their size and/or that are infrequent and
unusual by their nature or incidence are not considered to
be incurred in the normal course of business and are
classified as non-underlying items on the face of the income
statement within their relevant category in order to provide
further understanding of the ongoing sustainable
performance of the Group.
Non-underlying items include:
\u2022 Operating income and expense items which are material
by their size and/or are infrequent and unusual by their
nature, such as integration or double run costs of significant
projects (one side of the cost to resource both the old and
the new services within the project), restructuring costs and
costs related to acquisitions that change the perimeter of
the Group.
\u2022 Non-operating income and expense items which are
material by their size and/or are infrequent and unusual by
their nature, such as one-off finance costs, gains or losses
on sale of subsidiaries and impairments of investments.
\u2022 Amortisation and impairment of intangible assets which
are recognised as a result of acquisitions. These intangible
assets mostly comprise customer relationships, brand
names and software that were identified during purchase
price allocation (PPA). This amortisation is presented as a
non-underlying item in order to provide more meaningful
information regarding the Group\u2019s sustainable
performance.
\u2022 Tax related to non-underlying items.
",
"dimensions": {
"concept": "eur:DescriptionOfAccountingPolicyForNonUnderlyingItemsTextBlock",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-615": {
"value": "Taxation
The income tax expense for the fiscal year is comprised of
current and deferred income tax. Income tax expense is
recognised in the Income Statements, except to the extent
that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the income tax
impact is also recognised in other comprehensive income or
directly in equity.
(i)Current income tax
The current income tax expense is calculated on the basis of
the tax laws enacted or substantively enacted at the balance
sheet date in the countries where the Group operates and
generates taxable income. The Group recognises liabilities
for uncertain tax treatment when it is not probable that the
tax authorities will accept the tax treatment. The liabilities
are measured through one of the following methods
depending on which method is expected to best predict the
resolution of the tax uncertainty:
a)The most likely amount \u2013 the single most likely
amount in a range of possible outcomes. The most likely
amount may better predict the resolution of the uncertainty
if the possible outcomes are binary or are concentrated on
one value.
b)The expected value \u2013 the sum of the probability-
weighted amounts in a range of possible outcomes. The
expected value may better predict the resolution of the
uncertainty if there is a range of possible outcomes that are
neither binary nor concentrated on one value.
Estimated liabilities for uncertain tax treatments, along with
estimates of interest and penalties, are presented within
income taxes payable on the Balance Sheet and are
included in current income tax expense in the Statement of
Profit or Loss.
(ii)Deferred income tax
Deferred income tax is recognised on temporary differences
arising between the tax basis of assets and liabilities and
their carrying amounts in these Consolidated Financial
Statements. However, deferred income tax liabilities are not
recognised if they arise from the initial recognition of
goodwill. Deferred income tax is not accounted for if it
arises from initial recognition of an asset or liability in a
transaction, other than a business combination, that at the
time of the transaction affects neither accounting nor
taxable profit or loss and at the time of the transaction, does
not give rise to equal amounts of taxable and deductible
temporary differences. If a transaction that is not a business
combination gives rise to equal amounts of taxable and
deductible differences, deferred taxation on the taxable\u00a0
temporary difference and the deductible temporary
differences will be accounted for, which at initial recognition
are equal and offset to zero (i.e. leases).
Deferred income tax is determined using tax rates that have
been enacted or substantively enacted at the balance sheet
date and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax
liability is settled. Deferred income tax assets are
recognised only to the extent that it is probable that future
taxable profit will be available against which the temporary
differences or tax losses can be utilised. Deferred income
tax is provided on temporary differences arising from
investments in subsidiaries and associates, except where
the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the
temporary difference will not reverse in the foreseeable
future. Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when they
relate to income taxes levied by the same taxation authority
on the same taxable entity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-616": {
"value": "Deferred income tax
Deferred income tax is recognised on temporary differences
arising between the tax basis of assets and liabilities and
their carrying amounts in these Consolidated Financial
Statements. However, deferred income tax liabilities are not
recognised if they arise from the initial recognition of
goodwill. Deferred income tax is not accounted for if it
arises from initial recognition of an asset or liability in a
transaction, other than a business combination, that at the
time of the transaction affects neither accounting nor
taxable profit or loss and at the time of the transaction, does
not give rise to equal amounts of taxable and deductible
temporary differences. If a transaction that is not a business
combination gives rise to equal amounts of taxable and
deductible differences, deferred taxation on the taxable\u00a0
temporary difference and the deductible temporary
differences will be accounted for, which at initial recognition
are equal and offset to zero (i.e. leases).
Deferred income tax is determined using tax rates that have
been enacted or substantively enacted at the balance sheet
date and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax
liability is settled. Deferred income tax assets are
recognised only to the extent that it is probable that future
taxable profit will be available against which the temporary
differences or tax losses can be utilised. Deferred income
tax is provided on temporary differences arising from
investments in subsidiaries and associates, except where
the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the
temporary difference will not reverse in the foreseeable
future. Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when they
relate to income taxes levied by the same taxation authority
on the same taxable entity.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-617": {
"value": "Non-current assets held for sale
The Group classifies non-current assets and disposal
groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather than
through continuing use. Non-current assets and disposal
groups classified as held for sale are measured at the lower
of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable
to the disposal of an asset (disposal group), excluding
finance costs and income tax expense.
The criteria for held for sale classification is regarded as
met only when the sale is highly probable and the asset or
disposal group is available for immediate sale in its present
condition. Actions required to complete the sale should
indicate that it is unlikely that significant changes to the sale
will be made or that the decision to sell will be withdrawn.
Management must be committed to the plan to sell the
asset and the sale expected to be completed within one year
from the date of the classification.
Property, plant and equipment and intangible assets are not
depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are
presented separately as current items in the statement of
financial position.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-618": {
"value": "Non-current assets held for sale
The Group classifies non-current assets and disposal
groups as held for sale if their carrying amounts will be
recovered principally through a sale transaction rather than
through continuing use. Non-current assets and disposal
groups classified as held for sale are measured at the lower
of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable
to the disposal of an asset (disposal group), excluding
finance costs and income tax expense.
The criteria for held for sale classification is regarded as
met only when the sale is highly probable and the asset or
disposal group is available for immediate sale in its present
condition. Actions required to complete the sale should
indicate that it is unlikely that significant changes to the sale
will be made or that the decision to sell will be withdrawn.
Management must be committed to the plan to sell the
asset and the sale expected to be completed within one year
from the date of the classification.
Property, plant and equipment and intangible assets are not
depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are
presented separately as current items in the statement of
financial position.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-619": {
"value": "Classification of investments in associates
The Group classifies the interest in LCH SA as an
investment in associate suggesting significant influence
even though it owns less than 20% of the voting rights (see
Note 7). The Group concluded that it has significant
influence over this investment, which is derived from the
governance structure that was put in place, the Group\u2019s
position as the largest customer and sole minority
shareholder of LCH SA.
Group information
The following table provides an overview of the Group\u2019s subsidiaries, associates, joint-ventures and non-current investments:
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| | | |
| | | |
Euronext Brussels S.A./N.V. | | | |
Euronext IP & IT Holding B.V. | | | |
Euronext Hong Kong Limited | | | |
| | | |
| | | |
| | | |
Euronext Technologies S.A.S. | | | |
Euronext Technologies Unipessoal Lda. | | | |
Euronext Technologies S.r.l. | | | |
| | | |
The Irish Stock Exchange Plc. (d) | | | |
Euronext Corporate Services B.V. | | | |
| | | |
| | | |
Euronext Corporate Services UK Ltd. | | | |
Euronext Corporate Services Sweden AB | | | |
| | | |
Euronext Market Services LLC | | | |
Euronext Markets Americas LLC | | | |
| | | |
Euronext Markets Singapore Pte Ltd. | | | |
Euronext UK Holdings Ltd. | | | |
| | | |
Euronext India Private Limited | | | |
| | | |
Verdipapirsentralen ASA (\"VPS\") (c) | | | |
| | | |
| | | |
Euronext Nordics Holding AS | | | |
Finance Web Working SAS (e) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nord Pool European Market Coupling Operator AS | | | |
Nord Pool European Market Coupling Operator AB | | | |
Nord Pool European Market Coupling Operator OY | | | |
Euronext Corporate Services Finland Oy | | | |
Euronext Corporate Services France S.A.S. | | | |
| | | |
Euronext Italy Merger S.r.l. | | | |
Euronext Holding Italia S.p.A. | | | |
| | | |
| | | |
Bit Market Services S.p.A. (h) | | | |
| | | |
| | | |
Cassa di Compensazione e Garanzia S.p.A. (f) | | | |
| | | |
| | | |
MTS Markets International Inc. (g) | | | |
Marche de Titres France SAS | | | |
| | | |
| | | |
| | | |
| | | |
Euronext Corporate Services GmbH (i) | | | |
Euronext Corporate Services S.r.l. | | | |
Stichting Euronext Foundation (j) | | | |
| | | |
| | | |
| | | |
| | | |
ATS Advanced Technology Solutions S.p.A. (k) | | | |
MTS Associated Markets SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Euroclear Holding S.A./N.V. | | | |
| | | |
Association of National Numbering Agencies | | | |
Investor Compensation Company Designated Activity Company | | | |
(a)Legal name of Euronext Lisbon S.A. is Euronext Lisbon - Sociedade Gestora de Mercados Regulamentados, S.A.
(b)Legal name of Interbolsa S.A. is Interbolsa - Sociedade Gestora de Sistemas de Liquida\u00e7ao e de Sistemas Centralizados de Valores Mobili\u00e1rios,
S.A.
(c)Interbolsa S.A., Verdipapirsentralen ASA, VP Securities AS and Monte Titoli S.p.A. respectively operate under the business names \"Euronext
Securities Porto\", \"Euronext Securities Oslo\", \"Euronext Securities Copenhagen\" and \"Euronext Securities Milan\".
(d)The Irish Stock Exchange plc. operates under the business name Euronext Dublin.
(e)On 3 March 2022, the Group sold its 60% ownership in Finance Web Working (\"Euronext Funds360\").
(f)Cassa di Compensazione e Garanzia S.p.A.operates under the business name \"Euronext Clearing\".
(g)On 15 December 2022, the Group finalised the sale of MTS Markets International Inc. (see Note 2 ).
(h)Bit Market Services S.p.A., Elite Club Deal Limited and LiquidShare S.A. are under liquidation.
(i)Euronext Corporate Services GmbH was incorporated on 5 August 2022.
(j)Stichting Euronext Foundation is not owned by the Group but included in the scope of consolidation.
(k)On 1 December 2022, the Group acquired a 30% interest in ATS Advanced Technology Solutions S.p.A. (see Note 7).
Investments in associates and joint ventures
7.1.Interests in associates and joint ventures
Set out below are the associates and joint ventures of the
Group as at 31 December 2022. The country of incorporation
or registration is also their principal place of business, and
the proportion of ownership interest is the same as the
proportion of voting rights held.
| | | | | | |
| Place of business / country of Incorporation | | | Carrying amount (In thousands of euros |
| | | |
| | | | | | |
| | | | | | |
Immaterial joint ventures | | | | | | |
| | | | | | |
Total equity accounted investments | | | | | | |
(a)LCH SA is a Continental European clearing house, offering clearing services for a diverse range of asset classes. As described in Note 3, the
Group has determined that it has significant influence over LCH SA\u00a0 even though it only holds 11.1% of the voting rights.
7.2Commitments and contingent liabilities in
respect of associates and joint ventures
The Group has no outstanding contingent liabilities with
respect to its associates or joint ventures.
7.3Summarised financial information for
associates and joint ventures
The tables below provide summarised financial information
for those associates and joint ventures that are material to
the Group. The information disclosed reflects the amounts
presented in the financial statements of the relevant
associates or joint ventures and not Euronext\u2019s share of
those amounts. They have been amended to reflect
adjustments made by the entity when using the equity
method, including fair value adjustments and modifications
for differences in accounting policy.
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
Reconciliation to carrying amounts: | | |
Opening net assets 1 January | | |
| | |
Profit/(loss) for the year (a) | | |
Other comprehensive income | | |
| | |
| | |
| | |
Group's share in thousands of euros | | |
| | |
| | |
(a)In 2022, LCH SA contributed a \u20ac10.4 million profit (2021: \u20ac12.0 million) to the line \u2018Share of net profit/(loss) of associates and joint ventures
accounted for using the equity method, and impairments thereof\u2019 in the Consolidated Statement of Profit or Loss.
| | |
Summarised statement of comprehensive income | |
| | |
| | |
Profit from continuing operations | | |
Profit from discontinued operations | | |
| | |
Other comprehensive income | | |
Total comprehensive income | | |
Dividends received from associates | | |
7.4Individually immaterial associates and joint
ventures
In addition to the interest in material associates and joint
ventures disclosed above, the Group also has interests in
individually immaterial associates and individually
immaterial joint ventures, that are all accounted for using
the equity method.
Individually immaterial associates
The Group has an 18.93% interest in Tokeny Solutions, a
tokenisation platform that provides users end-to-end
solutions to issue, manage and transfer tokenised
securities on public blockchain. In the first half of 2021,
following indications of a deteriorated future cash flow
situation, the investment in associate Tokeny Solutions was
impaired by \u20ac4.3 million to zero value.
The Group also has an interest of 23.0% in MTS Associated
Markets S.A., offering an electronic trading platform for
sovereign securities (e.g. government bonds). On 1
December 2022, the Group acquired a 30% interest in ATS
Advanced Technology Solutions S.p.A. (which line of
business includes designing, developing, and producing
prepackaged computer software) at consideration of\u00a0 \u20ac0.7
million.
| | |
| | |
Aggregate carrying amount of individually immaterial associates | | |
Aggregate amounts of the group's share of: | | |
Profit/(loss) from continuing operations | | |
Post-tax profit or loss from discontinued operations | | |
Other comprehensive income | | |
Total comprehensive income | | |
(a)Cash trading, Derivatives trading, Clearing and Advanced data services revenues are attributed to the country where the exchange is
domiciled. Revenues from other categories are attributed to the billing entity.
8.1.2Contract balances
The Group has recognised the following assets and liabilities related to contracts with customers:
| | | |
| | | |
Trade receivables (Note 21) | | | |
Contract receivables (Note 21) | | | |
Contract liabilities (Note 33) | | | |
Trade receivables are non-interest bearing and are
generally due on terms of 30 to 90 days and represent
amounts in respect of billed revenue, for which the Group
has an unconditional right to consideration (i.e. only the
passage of time is required before payment of the
consideration is due). Trade receivables decreased by \u20ac18.9
million, which is mainly attributable to lower outstanding
power sales positions at Nord Pool, as a result of lower
energy prices at the end of 2022 when compared to last
year.
Contract receivables represent amounts in respect of
unbilled revenue, for which the Group has an unconditional
right to consideration (i.e. only the passage of time is
required before payment of the consideration is due).
Contract receivables increased by \u20ac7.4 million, which is
almost fully attributable to accrued income at Borsa Italiana
Group.
In 2022, \u20ac7.4 million (2021: \u20ac4.9 million) was recognised as
provision for expected credit losses on trade and contract
receivables. The increase in loss allowance provision, was
primarily due to increased risk on specific debtors.
Contract liabilities primarily relate to received consideration
(or an amount of consideration is due) from customers for
the initial (or subsequent) listing of equity securities, bond
lifetime fees, indices licenses, software maintenance &
hosting and corporate services. In 2022, contract liabilities
decreased by \u20ac11.8 million, which primarily related to a
drop in new IPOs and subsequent listings pipeline, as a
result of negative sentiment caused by the current
uncertain economic environment.
Revenue recognised in the reporting period that was
included in the contract liability balance at the beginning of
the period amounted to \u20ac74.8 million (2021: \u20ac55.4 million).
The increase is mainly explained by a higher balance at the
beginning of the period, due to the inclusion of Borsa
Italiana Group. The amount of revenue recognised in the
reporting period from performance obligations satisfied (or
partially satisfied) in previous periods was considered not
material (2021: not material).
8.1.3Performance obligations
Information about the Group\u2019s performance obligations are
described in Note 3 \u2018Significant accounting policies and
judgements\u2019.
The transaction price allocated to the remaining
performance obligations (unsatisfied or partially
unsatisfied) are as follows:
The remaining performance obligations expected to be
recognised in more than one year primarily relate to the
initial (or subsequent) listing of equity securities and bond
lifetime fees which are recognised over the related listing
period. Other performance obligations included in this
category are software maintenance & hosting contracts,
market data and Indices license contracts and corporate
services license contracts. In 2022, the number of listing
admissions (IPO's) significantly decreased when compared
to prior year, causing a declining impact to the remaining
performance obligations that are still to be satisfied in the
upcoming years.
8.2Net treasury income through CCP business
Income recognised in the CCP clearing business executed
by Euronext Clearing includes net treasury income earned
on margin and default funds, held as part of the risk
management process.
For the year ended 31 December 2022, 'underlying' net
treasury income through CCP business amounted to \u20ac44.0
million (2021: \u20ac35.4 million) and is the result of gross
interest income of \u20ac60.9 million (2021: \u20ac123.2 million), less
gross interest expense of \u20ac16.8 million (2021: \u20ac87.8 million)
(see Note 35). Where negative interest rates apply, the
Group recognises interest paid on financial assets as a
treasury expense, which amounted to \u20ac43.6 million (2021:
\u20ac86.5 million), and interest received on clearing members\u2019
margin as treasury income, which amounted to \u20ac27.2
million (2021: \u20ac91.1 million).
In July 2022, the Group partially disposed of the debt
investment portfolio held at Euronext Clearing. The related
revaluation loss of \u20ac48.9 million was recycled from Other
Comprehensive Income to 'non-underlying' net treasury
income (see Note 12).
8.3Other income
Other income primarily consists of transitional income from
services provided by Borsa Italiana Group to London Stock
Exchange Group (LSEG) to facilitate the transition of
ownership following the acquisition of Borsa Italiana Group.
Transitional Service Agreements (\u201cTSAs\u201d) were established,
providing for temporary services rendered to or received
from LSEG. Each individual service is priced separately,
generally on a fixed fee basis, based on actual usage or
mutually agreed service level. The agreement was
established on arm's length basis.
Services rendered to LSEG primarily include technology and
various ancillary services. All such services to LSEG are
transitional and, accordingly, the related income from LSEG
is expected to be phased out after fiscal year 2023.
Expenses for services received from LSEG under this
agreement are recognised in other operational expenses
(see Note 11).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-621": {
"value": "Revenue from contracts with customers
The Group applied the following judgments that significantly
affect the determination of the amount and timing of
revenue from contracts with customers:
Identifying performance obligations and determining the
timing of revenue recognition of Listing admission fees
The Group provides services related to the initial (and
subsequent) listing of securities on its markets and hereto
directly related corporate action services, and ongoing
services related to the continuous listing.
The Group determined that the admission services around
initial (and subsequent) admission and its directly related
corporate action services do not transfer a good or service
to the customer, but are considered activities that the Group
needs to undertake to enable the customer to be listed. The
Group concluded that these activities should be combined
with the ongoing listing services and should be used as
inputs to produce the combined output, which is the service
of being listed. As the service of being listed is satisfied over
a period of time, as the customer simultaneously receives
and consumes the benefits from the service, the related
revenues are therefore recognised over a period of time.
The Group determined that the period of time that best
reflects the satisfaction of listing admission services is the
period over which the customer actually benefits from the
admission. An average lifetime of companies being listed on
Euronext markets would serve as best proxy for the period
that a listing customer benefits from an admission. Specific
local market characteristics can result and would justify
differences in amortisation terms. Based on historic
evidence, the Group has defined the following average
lifetimes for the relevant groupings of listed securities:
Equity admissions: 5-12 years
Bond- and fund admissions: 3 years
Equity subsequent admissions (follow-on\u2019s):3 years
Revenue from the listing admission services is therefore
recognised over those periods of time.
Revenue and income
8.1Revenue from contracts with customers
8.1.1Disaggregation of revenue from contracts with
customers
Substantially all of the Group\u2019s revenues are considered to
be revenues from contracts with customers. At 31
December 2022 and 2021, there were no customers that
individually exceeded 10% of the Group\u2019s revenue.
Set out below is the disaggregation of the Group\u2019s revenue from contracts with customers:
| | | | | | |
| | Timing of revenue recognition | | Timing of revenue recognition |
| Product or service transferred | Product or service transferred |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Primary listing services and other | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Custody & Settlement and other | | | | | | |
Euronext Technology solutions & other revenue | | | | | | |
Total revenue from contracts with customers | | | | | | |
(a)Cash trading, Derivatives trading, Clearing and Advanced data services revenues are attributed to the country where the exchange is
domiciled. Revenues from other categories are attributed to the billing entity.
8.1.2Contract balances
The Group has recognised the following assets and liabilities related to contracts with customers:
| | | |
| | | |
Trade receivables (Note 21) | | | |
Contract receivables (Note 21) | | | |
Contract liabilities (Note 33) | | | |
Trade receivables are non-interest bearing and are
generally due on terms of 30 to 90 days and represent
amounts in respect of billed revenue, for which the Group
has an unconditional right to consideration (i.e. only the
passage of time is required before payment of the
consideration is due). Trade receivables decreased by \u20ac18.9
million, which is mainly attributable to lower outstanding
power sales positions at Nord Pool, as a result of lower
energy prices at the end of 2022 when compared to last
year.
Contract receivables represent amounts in respect of
unbilled revenue, for which the Group has an unconditional
right to consideration (i.e. only the passage of time is
required before payment of the consideration is due).
Contract receivables increased by \u20ac7.4 million, which is
almost fully attributable to accrued income at Borsa Italiana
Group.
In 2022, \u20ac7.4 million (2021: \u20ac4.9 million) was recognised as
provision for expected credit losses on trade and contract
receivables. The increase in loss allowance provision, was
primarily due to increased risk on specific debtors.
Contract liabilities primarily relate to received consideration
(or an amount of consideration is due) from customers for
the initial (or subsequent) listing of equity securities, bond
lifetime fees, indices licenses, software maintenance &
hosting and corporate services. In 2022, contract liabilities
decreased by \u20ac11.8 million, which primarily related to a
drop in new IPOs and subsequent listings pipeline, as a
result of negative sentiment caused by the current
uncertain economic environment.
Revenue recognised in the reporting period that was
included in the contract liability balance at the beginning of
the period amounted to \u20ac74.8 million (2021: \u20ac55.4 million).
The increase is mainly explained by a higher balance at the
beginning of the period, due to the inclusion of Borsa
Italiana Group. The amount of revenue recognised in the
reporting period from performance obligations satisfied (or
partially satisfied) in previous periods was considered not
material (2021: not material).
8.1.3Performance obligations
Information about the Group\u2019s performance obligations are
described in Note 3 \u2018Significant accounting policies and
judgements\u2019.
The transaction price allocated to the remaining
performance obligations (unsatisfied or partially
unsatisfied) are as follows:
The remaining performance obligations expected to be
recognised in more than one year primarily relate to the
initial (or subsequent) listing of equity securities and bond
lifetime fees which are recognised over the related listing
period. Other performance obligations included in this
category are software maintenance & hosting contracts,
market data and Indices license contracts and corporate
services license contracts. In 2022, the number of listing
admissions (IPO's) significantly decreased when compared
to prior year, causing a declining impact to the remaining
performance obligations that are still to be satisfied in the
upcoming years.
Contract liabilities
(a)Includes contract liabilities related to Indices licenses, software maintenance & hosting and corporate services
The contract liabilities primarily relate to received
consideration (or an amount of consideration is due) from
customers for the initial (or subsequent) listing of equity
securities and bond lifetime fees. Contract liabilities are
recognised as revenue when the Group performs under the
contract.
The significant changes in contract liabilities are disclosed
in Note 8.1.2.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-622": {
"value": "Provision for expected credit losses of trade and
contract receivables
The Group uses a provision matrix to calculate ECLs for
trade and contract receivables. To measure expected credit
losses, trade and contract receivables have been grouped
based on shared credit risk characteristics and the days
past due. The historical loss rates are based on the payment
profiles of the sales over a period of 24 months before
reporting date and the corresponding historical credit loss
experience within this period. The historical loss rates are
adjusted to reflect current and forward-looking factors
specific to the debtors and economic environment.
The provision matrix is initially based on the Group\u2019s
historical observed default rates. The Group will calibrate
the matrix to adjust the historical credit loss experience
with forward-looking information. At every reporting date,
the historical observed default rates are updated and
changes in the forward-looking estimates are analysed.
The assessment of the correlation between historical
observed default rates, forecast economic conditions and
ECLs is a significant estimate. The amount of ECLs is
sensitive to changes in circumstances and of forecast
economic conditions. The Group\u2019s historical credit loss
experience and forecast of economic conditions may also
not be representative of customer\u2019s actual default in the
future. The information about the ECLs on the Group\u2019s trade
and contract receivables is disclosed in Note 37.5.1
Trade and other receivables
Set out below is the movement in the allowance for
expected credit losses of trade and contract receivables:
| | |
| | |
| | |
Provision for expected credit losses | | |
Receivables written off during the year | | |
| | |
Borrowings
Extension of Revolving Credit Facility Agreement
On 12 October 2022, the Group executed its two-year
extension option to the revolving credit facility agreement
(RCF) of \u20ac600.0 million. The RCF allows the Group to apply
all amounts borrowed by it towards (i) general corporate
and/or working capital purposes of the Group, (ii)
satisfaction of the consideration payable for an acquisition
and/ or (iii) the payment of fees, costs and expense incurred
in relation to an acquisition. The revolving credit facility has
a remaining maturity of 5 years and bears an interest rate of
EURIBOR plus a margin dependent on rating. As per 31
December 2022, the facility remained undrawn.
In case of a downgrading event of Euronext, below BBB- or
equivalent by rating agencies, Euronext shall ensure that
the leverage ratio (Euronext total gross debt to EBITDA2) as
defined in the Revolving Credit Facility Agreement would not
be greater than 4x.
Financial risk management
As a result of its operating and financing activities, the
Group is exposed to market risks such as interest rate risk,
currency risk and credit risk. The Group has implemented
policies and procedures designed to measure, manage,
monitor and report risk exposures, which are regularly
reviewed by the appropriate management and supervisory
bodies. The Group\u2019s central treasury team is charged with
identifying risk exposures and monitoring and managing
such risks on a daily basis. To the extent necessary and
permitted by local regulation, the Group\u2019s subsidiaries
centralise their cash investments, report their risks and
hedge their exposures in coordination with the Group\u2019s
central treasury team. The Group performs sensitivity
analyses to determine the effects that may result from
market risk exposures. The Group uses derivative
instruments solely to hedge financial risks related to its
financial position or risks that are otherwise incurred in the
normal course of its commercial activities. The Group does
not use derivative instruments for speculative purposes.
37.1Liquidity risk
The Group would be exposed to a liquidity risk in the case
where its short-term liabilities become, at any date, higher
than its cash, cash equivalents, short-term financial
investments and available bank facilities and in the case
where the Group is not able to refinance this liquidity deficit,
for example, through new banking lines.
Cash, cash equivalents and short-term financial
investments are managed as a global treasury portfolio
invested in non-speculative financial instruments, readily
convertible to cash, such as bank balances, money market
funds, overnight deposits, term deposits and other money
market instruments, thus ensuring a very high liquidity of
the financial assets. The Group\u2019s policy is to ensure that
cash, cash equivalents and available bank facilities allow
the Group to repay its financial liabilities at all maturities,
even disregarding incoming cash flows generated by
operational activities, excluding the related party loans
granted by the Group\u2019s subsidiaries to its Parent.
The net position of current financial assets, financial
liabilities and available credit facilities, excluding working
capital items, as of 31 December, 2022 and 2021 is
described in the table below:
| | |
| | |
Cash cash equivalents and short term investments | | |
Available revolving credit facility (RCF) | | |
Financial debt (long term and short term borrowings) | | |
| | |
The Group has a \u20ac600 million revolving credit facility (2021:
\u20ac600 million) that can be used for general corporate or M&A
purposes (see Note 29). As of 31 December 2022, the Group
did not have any amounts drawn under the facility.
The Group reviews its liquidity and debt positions on an
ongoing basis, and subject to market conditions and
strategic considerations, may from time to time re-examine
the debt structure of its debt and modify the maturity profile
and the sources of financing. The Group is able to support
short term liquidity and operating needs through existing
cash balance and its strong ability to generate adequate
cash flow. The Group has generally access to debts
markets, including bank facilities, and may be able to obtain
additional debt or other sources of financing to finance its
strategic development, provided that its financial risk profile
allows it to do so.
The table below summarises the maturity profile of the
Group\u2019s financial liabilities based on contractual
undiscounted payments, including principal - and interest
amounts, expected throughout the life of the obligations:
| | | | |
| | Maturity between 1 and 5 years | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
commercial banks to manage intraday and overnight
liquidity.
In line with the investment policy and the regulatory
requirements, the Group\u2019s CCP has partially invested the
default funds and margin in government bonds, with an
average maturity of around 12 months as per 31 December
2022. Even though these financial assets are generally held
to maturity, a forced liquidation of the investment portfolio
could lead to losses and lack of required liquidity.
| | | | |
| | Maturity between 1\u00a0and 2 years | Maturity between 2\u00a0and 3 years | |
| | | | |
| | | | |
| | | | |
| | | | |
37.2Interest rate risk
Substantially all interest-bearing financial assets and
liabilities of the Group are either based on floating rates or
based on fixed rates with an interest term of less than one
year, except for the fixed rated Bonds #1 to #5, which have
maturities between 5 and 20 years (see Note 29). The Group
entered into interest rate swap contracts in order to hedge
the interest rate risk inherent to the fixed rate Bond #1. As
a result, the Group is exposed to fair value risk affecting
fixed-rate financial assets and liabilities through its
remaining fixed rate Bonds #2 to #5. On 3 May 2022, the
Group terminated its fixed-to-floating interest rate swap
agreements (at an aggregated notional of \u20ac500 million) in
relation to the fair value hedge of the \u20ac500 million Bond #1
(see Note 23).
As at 31 December 2022 and 2021 the interest rate exposure
of the Company was as follows:
| | | | | | | | | | |
| | | | | |
Type of rate and maturity In thousands of euro | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | |
Type of rate and maturity In thousands of euro | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
currency risk sensitivity inherent to the Group exposure to
that currency is deemed to be irrelevant.
Interest rate risk - CCP clearing business
The Group\u2019s CCP faces interest rate exposure through the
impact of changes in the reference rates used to calculate
member liabilities versus the yields achieved through their
predominantly secured investment activities.
In the Group\u2019s CCP, interest bearing assets are generally
invested in secured instruments or structures and for a
longer term than interest bearing liabilities, whose interest
rate is reset daily. This makes investment revenue
vulnerable to volatility in overnight rates and shifts in
spreads between overnight and term rates. On daily basis
the interest rate risk associated to investments is monitored
via capital requirements.
The Group's CCP has an investment policy, mitigating
market risks. The Group's CCP investments have an
average duration of around one year and are generally held
until maturity. Losses will not materialise unless the
investment portfolio is liquidated before maturity or in an
event of portfolio rebalancing before maturity. In case of a
forced liquidation of the CCP's financial investment portfolio
before maturity to provide necessary liquidity, the CCP may
face higher interest rate exposure on its financial
investment portfolio. The interest rate exposure of the
investment portfolio is predominantly at fixed rates (only a
negligible part is at floating rates) at the amounts and
maturities as disclosed in Note 37.1. As per 31 December
2022, an increase/decrease of the rate by 100 basis points
would have an increasing/decreasing impact on the
investment portfolio market value of \u20ac3.8 million or 0.20%
(2021: \u20ac47 million or 1.03%).
37.3Currency risk
Foreign currency translation risk:
The Group\u2019s net assets are exposed to the foreign currency
risk arising from the translation of assets and liabilities of
subsidiaries with functional currencies other than the euro.
The following table summarises the assets and liabilities
recorded in respectively GBP, USD and NOK functional
currency and the related impact of a 10% in/decrease in the
currency exchange rate on balance sheet:
| | |
| | |
| | |
| | |
| | |
Net currency position after hedge | | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
| | |
| | |
| | |
| | |
| | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
| | |
| | |
| | |
| | |
| | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
risk related to its net investments in foreign currency.
However, the Group may use derivatives instruments
designated as hedge of net investment or foreign
denominated debt to manage its net Investment exposures.
The decision to hedge the exposure is considered on a case
by case basis since the Group is generally exposed to major,
well established and liquid currencies. The Group would, by
the same token, hedge transaction risk arising from cash
flows paid or received in a currency different from the
functional currency of the group contracting entity on a case
by case basis.
37.4.Equity Market risk
The Group\u2019s investment in publicly traded equity securities
was insignificant in 2022 and 2021. The Group's investments
in non-publicly traded equity securities are disclosed in
Note 20.
37.5.Credit risk
The Group is exposed to credit risk in the event of a
counterparty\u2019s default. The Group is exposed to credit risk
from its operating activities (primarily trade receivables),
from its financing activities and from the investment of its
cash and cash equivalents and short-term financial
investments. The Group limits its exposure to credit risk by
rigorously selecting the counterparties with which it
executes agreements. Most customers of the Group are
leading financial institutions that are highly rated.
Investments of cash and cash equivalents in bank current
accounts and money market instruments, such as short-
term fixed and floating rate interest deposits, are governed
by rules aimed at reducing credit risk: maturity of deposits
strictly depends on credit ratings, counterparties' credit
ratings are permanently monitored and individual
counterparty limits are reviewed on a regular basis. In
addition to the intrinsic creditworthiness of counterparties,
the Group's policies also prescribe the diversification of
counterparties (banks, financial institutions, funds) so as to
avoid a concentration of risk. Derivatives are negotiated with
leading high-grade bank.
Credit risk - CCP clearing business
In its role as CCP clearer to financial market participants,
the Group\u2019s CCP guarantees final settlement of transactions
acting as buyer towards each seller and as seller towards
each buyer. It manages substantial credit risks as part of its
operations including unmatched risk positions that might
arise from the default of a party to a cleared transaction.
Clearing membership selection is based upon supervisory
capital, technical and organisational criteria. Each member
must pay margins, computed and collected at least daily, to
cover the exposures and theoretical costs which the CCP
might incur in order to close out open positions in the event
of the member\u2019s default. Margins are calculated using
established and internationally acknowledged risk models
and are debited from participants\u2019 accounts through central
bank accounts and via commercial bank payment systems.
Minimum levels of cash collateral are required. Non-cash
collateral is revalued daily but the members retain title of
the asset and the Group only has a claim on these assets in
the event of a default by the member.
Clearing members also contribute to default funds
managed by the CCP to guarantee the integrity of the
markets in the event of multiple defaults in extreme market
circumstances. Amounts are determined on the basis of the
results of periodic stress testing examined by the risk
committees of the CCP. Furthermore, the Group\u2019s CCP
reinforces its capital position to meet the most stringent
relevant regulatory requirements applicable to it, including
holding a minimum amount of dedicated own resources to
further underpin the protective credit risk framework in the
event of a significant market stress event or participant
failure.
An analysis of the aggregate clearing member contributions
of margin and default funds across the CCP is shown below:
| | |
| | |
|
| | |
| | |
| | |
Margin received by title transfer | | |
| | |
Total on balance sheet collateral (a) | | |
Total member collateral pledged | | |
(a)The counterbalance of the total on balance sheet collateral is included in the line 'other payables to clearing members' in the table at Note
35.1
Investment counterparty risk for CCP margin and default
funds is managed by investing the cash element in
instruments or structures deemed \u2018secure\u2019, including
through direct investments in highly rated, \u2018regulatory
qualifying\u2019 sovereign bonds and supra-national debt,
investments in tri-party and bilateral reverse repos
(receiving high-quality government securities as collateral)
in certain jurisdictions and deposits with the central bank of
Italy. The small proportion of cash that is invested
unsecured is placed for short durations with highly rated
counterparties where strict limits are applied with respect
to credit quality, concentration and tenor.
| | |
| | |
|
| | |
| | |
| | |
CCP other financial assets (a) | | |
| | |
Clearing member cash equivalents - short term deposits | | |
Clearing member cash\u00a0 - central bank deposits | | |
Clearing member cash\u00a0 - other banks | | |
Total clearing member cash (b) | | |
(a) The CCP other financial assets are included in the line 'Debt instruments at fair value through other comprehensive income' in the table at Note
35.1.
(b) The total clearing member cash is included in the line 'Cash and cash equivalents of clearing members'' in the table at Note 35.1.
Distress can result from the risk that certain governments
may be unable or find it difficult to service their debts. This
could have adverse effects, particularly on the Group\u2019s CCP,
potentially impacting cleared products, margin collateral,
investments, the clearing membership and the financial
industry as a whole.
Specific risk frameworks manage country risk for both fixed
income clearing and margin collateral and all clearing
members\u2019 portfolios are monitored regularly against a suite
of sovereign stress scenarios. Investment limits and
counterparty and clearing membership monitoring are
sensitive to changes in ratings and other financial market
indicators, to ensure the Group\u2019s CCP is able to measure,
monitor and mitigate exposures to sovereign risk and
respond quickly to anticipated changes. Risk Committees
maintain an ongoing watch over these risks and the
associated policy frameworks to protect the Group against
potentially severe volatility in the sovereign debt markets.
The Group\u2019s sovereign exposures at the end of the financial
reporting period were:
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total for all countries (b) | | |
(a)'EU Central' consists of supra-national debts.
(b)The total sovereign investments include the investment portfolio of CCP clearing business assets as disclosed in the line 'Debt instruments
at fair value through other comprehensive income' in the table at Note 35.1.
37.5.1Impairment of financial assets
The Group\u2019s trade and contract receivables and other debt
financial assets at amortised cost or FVOCI (including CCP
clearing business) are subject to the expected credit loss
model. While cash and cash equivalents are also subject to
the impairment requirements of IFRS 9, the identified
impairment loss was considered immaterial.
Trade and contract receivables
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade and contract
receivables.
To measure expected credit losses, trade and contract
receivables have been grouped based on shared credit risk
characteristics and the days past due. The historical loss
rates are based on the payment profiles of the sales over a
period of 24 months before reporting date and the
corresponding historical credit losses experience within this
period. The historical loss rates are adjusted to reflect
current and forward-looking factors specific to the debtors
and economic environment. Generally trade receivables are
written-off if past due more than one year, or when there is
no reasonable expectation of recovery. The maximum
exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 21.
The Group evaluates the concentration of credit risk with
respect to trade and contract receivables as low, as most of
its customers are leading financial institutions that are
highly rated.
Set out below is the information about the credit risk
exposure on the Group\u2019s trade and contract receivables
using a provision matrix as at 31 December 2022 and 2021:
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
In 2022, the increase in loss allowance provision was due to
a higher customer base in the highest category of days
outstanding, which is partly offset by a mathematical
reduction in historical loss rates (caused by a decrease in
historical credit losses, relative to a higher amount of sales
following the inclusion of the full year impact of Borsa
Italiana Group). The increase of individually assessed
customers related to specific debtors, which showed a
significant increase in credit risk.
Other debt financial assets at amortised cost or FVOCI
(including CCP clearing business)
The other debt financial assets comprise i) debt investments
at amortised cost, which include short-term deposits with a
maturity over three months, ii) debt investments at FVOCI,
which include investments in listed bonds and government
bonds and iii) CCP clearing business financial assets at
amortised cost or FVOCI.
The other debt financial assets at amortised cost or FVOCI
(including CCP clearing business) are considered to have
low credit risk, as the issuers of the instruments have a low
risk of default evidenced by their strong capacity to meet
their contractual cash flow obligations in the near term. The
Group closely monitors its CCP investment portfolio and
invests only in government debt and other collateralised
instruments where the risk of loss is minimal. There was no
increase in credit risk in the year and none of the assets are
past due. The loss allowance recognised during the period
was therefore limited to 12 months expected credit losses.
The Group did not recognise any material provision for
expected credit losses on its other debt financial assets at
amortised cost or FVOCI (including CCP clearing business)
as per 31 December 2022 (2021: not material). The amount
of credit-impaired financial assets is considered not
significant.
37.6Capital management
The Group\u2019s objectives when managing capital are to
safeguard the Group\u2019s ability to continue as a going
concern, to comply with regulatory requirements and to
maintain an optimal capital structure to reduce the cost of
capital and provide return to shareholders. Certain entities
of the Group are regulated as Exchanges, as Central
Securities Depository (CSD) or as Clearing House and are
subject to certain statutory regulatory requirements based
on their local statutory financial statements and risks. In
general, the financial ratios of the Group\u2019s subsidiaries
significantly exceed the regulatory requirements and they
maintain a safety cushion in order to avoid any concern from
the regulators.
Euronext N.V. must comply with prudential requirements,
as a result of an agreement reached with the Dutch Finance
Ministry in May 2016, which are set forth in three pillars:
\u25a0A minimum Total Equity level equal of at least \u20ac
250 million; and
\u25a0The Group shall take care of stable financing.
Long-term assets of the Group will be financed
with shareholders equity and long term liabilities,
to the satisfaction of the AFM; and
\u25a0The Group shall have a positive regulatory capital
on a consolidated basis. The regulatory capital is
calculated according to the following formula: the
paid up share capital plus the freely available
reserves less the items listed in section 36 of
Regulation (EU) no. 575/201. In deviation to
mentioned formula, the value of the intangible
fixed assets in connection with Mergers and
Acquisitions will be deducted in 10 (default) or
more (20 for Oslo B\u00f8rs ASA) equal instalments
(grow in period) from the regulatory capital.
Considering a consistent dividend policy, the grow
in period can be extended if the P/E ratio would
exceed 10 times. If the grow in period and the
related dividend policy provide for a negative a
regulatory capital for a limited number of years of
the gown-in period, then this fact will not prevent
the execution of the consistent and prudent
dividend policy\u00a0 of the Group in those years.
As per 31 December 2022, Euronext N.V. complied with
these requirements.
Euronext Amsterdam N.V. is subject to a minimum statutory
capital requirement of \u20ac730 thousand, shall have a
regulatory capital in the amount of 50% of the direct fixed
cost of Euronext Amsterdam N.V. during the preceding
financial year and in addition the cash and cash equivalents
shall be higher than the required minimum regulatory
capital to operate as an exchange in the Netherlands. As per
31 December 2022, Euronext Amsterdam N.V. was in
compliance with these requirements.
Euronext Brussels SA/NV shall maintain adequate financial
resources at its disposal to ensure orderly functioning of the
market. The law mentions that FSMA may, by a regulation,
set financial ratios for market operators and determine
which financial information they are required to provide. At
this date, no quantitative requirements has ever been set
either by a regulation or by the Financial Authority FSMA.
Euronext Dublin shall at all time hold a minimum level of
capital based on the Basic Capital Requirement and the
Systematic Capital Add-on and maintain liquid financial
assets at least equal to the sum of these two amounts of
required capital. As per 31 December 2022, Euronext Dublin
complied with these requirements.
Euronext Lisbon S.A. shall maintain minimum statutory
share capital of \u20ac3.0 million and shall maintain minimum
statutory equity of \u20ac6.0 million. In addition, Euronext
Lisbon's liabilities must not exceed its own funds (basically
the amount of equity). As per 31 December 2022, Euronext
Lisbon\u00a0 complied with these requirements.
Euronext Paris S.A. shall maintain statutory regulatory
equity at no less than 50% of its yearly expenses and a
solvency ratio on operational risks at no less than 8%. As
per 31 December 2022, Euronext Paris S.A. complied with
these requirements.
Interbolsa S.A. shall maintain minimum statutory share
capital of \u20ac2.75 million and shall maintain minimum
statutory equity of \u20ac5.5 million. In addition, as a CSD,
Interbolsa S.A. shall hold an amount of capital, including
retained earnings and reserves, higher or equal to the sum
of CSD\u2019S capital requirements. As per 31 December 2022,
Interbolsa S.A. complied with these requirements.
VPS ASA shall comply with the capital requirement
regulation for CSDs. As such, it shall hold an amount of
capital, including retained earnings and reserves, higher or
equal to the sum of CSD's capital requirements. As per 31
December 2022, VPS ASA complied with this requirement.
Oslo B\u00f8rs ASA must maintain an adequate level of primary
capital. In this context, primary capital comprises equity
after deducting items including intangible assets such as
system development costs and deferred tax assets.
Although the Norwegian legislation does not stipulate any
specific quantitative level of capital requirements, Oslo B\u00f8rs
ASA maintains at all times sufficient liquid assets and
capital resources. As per 31 December 2022, Oslo B\u00f8rs ASA
complied with these requirements.
Euronext Markets Singapore Pte Ltd. shall maintain a
minimum regulatory capital requirement (a) 18% of its
annual operating revenue, (b) 50% of its annual operating
costs, and (c) $500,000 restricted cash deposit. As per 31
December 2022, Euronext Markets Singapore Pte Ltd.
complied with these requirements.
VP Securities AS shall comply with the capital requirement
regulation for CSDs. As such, it shall hold an amount of
capital, including retained earnings and reserves, higher or
equal to the sum of CSD's capital requirements. As per 31
December 2022, VP Securities AS complied with this
requirement.
Borsa Italiana S.p.A\u00a0 must comply with Article 3 of the
Italian CONSOB Markets Regulation. As such, it shall
maintain 1) a net equity (share capital, reserves and
undistributed profits) at least equal to operating costs
necessary to cover six months based on the latest audited
Financial statements and 2) an amount of liquid assets
sufficient to cover estimated potential losses in stressed but
plausible market conditions calculated using a risk-based
approach which considers operational risks as well as other
risks to which the regulated operator might be exposed to.
As per 31 December 20212 Borsa Italiana S.p.A. complied
with these requirements.
Monte Titoli S.p.A. shall comply with article 47 of the CSDR
regulation. As such, it shall hold capital (inclusive of
undistributed profits and \u201cTotal Capital Requirement\u201d
reserves) which, at any time, is sufficient to guarantee that
the CSD is adequately protected against operational, legal,
custody, investment and commercial risks, so that it may
continue to provide services; ensure a liquidation or an
orderly restructuring of the activities of the CSD in an
adequate period of at least 6 months, in the context of a
series of stress scenarios. The capital thus identified must
be invested in secured assets in order to comply with the
provisions of Article 46 paragraph 4 of the CSDR Regulation.\u00a0
As per 31 December 2022, Monte Titoli S.p.A. complied with
this requirement.
Cassa di Compensazione e Garanzia S.p.A. must comply
with Article 2 of EMIR based on which it must have capital
(including undistributed profits and reserves) which at all
times is sufficient to cover the total exposure to the
following risks:
\u25aarisks relating to the liquidation or restructuring of
assets,
\u25aacredit, counterparty's and market risks,
\u25aaoperational and legal risks, and
\u25aabusiness risks.
The capital thus identified must be invested in secured
assets for the purpose of complying with Article 47 of EMIR.
As per 31 December 2022, Cassa di Compensazione e
Garanzia S.p.A. complied with these requirements.
MTS S.p.A.\u00a0 must comply with Article 3 of the Italian
CONSOB Markets Regulation. As such, it shall maintain 1) a
net equity (share capital, reserves and undistributed profits)
at least equal to operating costs necessary to cover six
months based on the latest audited Financial statements
and 2) an amount of liquid assets sufficient to cover
estimated potential losses in stressed but plausible market
conditions calculated using a risk-based approach which
considers operational risks as well as other risks to which
the regulated operator might be exposed to. As per 31
December 2022, MTS S.p.A. complied with these
requirements.
37.7 Changes in liabilities arising from financing
activities
The changes in liabilities arising from the Group\u2019s financing
activities in 2022 and 2021 were as follows:
| | | | | |
| Borrowings due within 1 year | Borrowings due after 1 year | | | Total liabilities from financing activity |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Amortisation and transfer of issue costs | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Amortisation and transfer of issue costs | | | | | |
| | | | | |
| | | | | |
| | | | | |
The line \u2018Other\u2019 includes the effect of reclassification of non-current portion of lease liabilities to current due to the passage of
time.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-623": {
"value": "Provision for expected credit losses of trade and
contract receivables
The Group uses a provision matrix to calculate ECLs for
trade and contract receivables. To measure expected credit
losses, trade and contract receivables have been grouped
based on shared credit risk characteristics and the days
past due. The historical loss rates are based on the payment
profiles of the sales over a period of 24 months before
reporting date and the corresponding historical credit loss
experience within this period. The historical loss rates are
adjusted to reflect current and forward-looking factors
specific to the debtors and economic environment.
The provision matrix is initially based on the Group\u2019s
historical observed default rates. The Group will calibrate
the matrix to adjust the historical credit loss experience
with forward-looking information. At every reporting date,
the historical observed default rates are updated and
changes in the forward-looking estimates are analysed.
The assessment of the correlation between historical
observed default rates, forecast economic conditions and
ECLs is a significant estimate. The amount of ECLs is
sensitive to changes in circumstances and of forecast
economic conditions. The Group\u2019s historical credit loss
experience and forecast of economic conditions may also
not be representative of customer\u2019s actual default in the
future. The information about the ECLs on the Group\u2019s trade
and contract receivables is disclosed in Note 37.5.1
Trade and other receivables
Set out below is the movement in the allowance for
expected credit losses of trade and contract receivables:
| | |
| | |
| | |
Provision for expected credit losses | | |
Receivables written off during the year | | |
| | |
Impairment of financial assets
The Group\u2019s trade and contract receivables and other debt
financial assets at amortised cost or FVOCI (including CCP
clearing business) are subject to the expected credit loss
model. While cash and cash equivalents are also subject to
the impairment requirements of IFRS 9, the identified
impairment loss was considered immaterial.
Trade and contract receivables
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade and contract
receivables.
To measure expected credit losses, trade and contract
receivables have been grouped based on shared credit risk
characteristics and the days past due. The historical loss
rates are based on the payment profiles of the sales over a
period of 24 months before reporting date and the
corresponding historical credit losses experience within this
period. The historical loss rates are adjusted to reflect
current and forward-looking factors specific to the debtors
and economic environment. Generally trade receivables are
written-off if past due more than one year, or when there is
no reasonable expectation of recovery. The maximum
exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 21.
The Group evaluates the concentration of credit risk with
respect to trade and contract receivables as low, as most of
its customers are leading financial institutions that are
highly rated.
Set out below is the information about the credit risk
exposure on the Group\u2019s trade and contract receivables
using a provision matrix as at 31 December 2022 and 2021:
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
In 2022, the increase in loss allowance provision was due to
a higher customer base in the highest category of days
outstanding, which is partly offset by a mathematical
reduction in historical loss rates (caused by a decrease in
historical credit losses, relative to a higher amount of sales
following the inclusion of the full year impact of Borsa
Italiana Group). The increase of individually assessed
customers related to specific debtors, which showed a
significant increase in credit risk.
Other debt financial assets at amortised cost or FVOCI
(including CCP clearing business)
The other debt financial assets comprise i) debt investments
at amortised cost, which include short-term deposits with a
maturity over three months, ii) debt investments at FVOCI,
which include investments in listed bonds and government
bonds and iii) CCP clearing business financial assets at
amortised cost or FVOCI.
The other debt financial assets at amortised cost or FVOCI
(including CCP clearing business) are considered to have
low credit risk, as the issuers of the instruments have a low
risk of default evidenced by their strong capacity to meet
their contractual cash flow obligations in the near term. The
Group closely monitors its CCP investment portfolio and
invests only in government debt and other collateralised
instruments where the risk of loss is minimal. There was no
increase in credit risk in the year and none of the assets are
past due. The loss allowance recognised during the period
was therefore limited to 12 months expected credit losses.
The Group did not recognise any material provision for
expected credit losses on its other debt financial assets at
amortised cost or FVOCI (including CCP clearing business)
as per 31 December 2022 (2021: not material). The amount
of credit-impaired financial assets is considered not
significant.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-624": {
"value": "Provision for expected credit losses of trade and
contract receivables
The Group uses a provision matrix to calculate ECLs for
trade and contract receivables. To measure expected credit
losses, trade and contract receivables have been grouped
based on shared credit risk characteristics and the days
past due. The historical loss rates are based on the payment
profiles of the sales over a period of 24 months before
reporting date and the corresponding historical credit loss
experience within this period. The historical loss rates are
adjusted to reflect current and forward-looking factors
specific to the debtors and economic environment.
The provision matrix is initially based on the Group\u2019s
historical observed default rates. The Group will calibrate
the matrix to adjust the historical credit loss experience
with forward-looking information. At every reporting date,
the historical observed default rates are updated and
changes in the forward-looking estimates are analysed.
The assessment of the correlation between historical
observed default rates, forecast economic conditions and
ECLs is a significant estimate. The amount of ECLs is
sensitive to changes in circumstances and of forecast
economic conditions. The Group\u2019s historical credit loss
experience and forecast of economic conditions may also
not be representative of customer\u2019s actual default in the
future. The information about the ECLs on the Group\u2019s trade
and contract receivables is disclosed in Note 37.5.1
Trade and other receivables
Set out below is the movement in the allowance for
expected credit losses of trade and contract receivables:
| | |
| | |
| | |
Provision for expected credit losses | | |
Receivables written off during the year | | |
| | |
Credit risk
The Group is exposed to credit risk in the event of a
counterparty\u2019s default. The Group is exposed to credit risk
from its operating activities (primarily trade receivables),
from its financing activities and from the investment of its
cash and cash equivalents and short-term financial
investments. The Group limits its exposure to credit risk by
rigorously selecting the counterparties with which it
executes agreements. Most customers of the Group are
leading financial institutions that are highly rated.
Investments of cash and cash equivalents in bank current
accounts and money market instruments, such as short-
term fixed and floating rate interest deposits, are governed
by rules aimed at reducing credit risk: maturity of deposits
strictly depends on credit ratings, counterparties' credit
ratings are permanently monitored and individual
counterparty limits are reviewed on a regular basis. In
addition to the intrinsic creditworthiness of counterparties,
the Group's policies also prescribe the diversification of
counterparties (banks, financial institutions, funds) so as to
avoid a concentration of risk. Derivatives are negotiated with
leading high-grade bank.
Credit risk - CCP clearing business
In its role as CCP clearer to financial market participants,
the Group\u2019s CCP guarantees final settlement of transactions
acting as buyer towards each seller and as seller towards
each buyer. It manages substantial credit risks as part of its
operations including unmatched risk positions that might
arise from the default of a party to a cleared transaction.
Clearing membership selection is based upon supervisory
capital, technical and organisational criteria. Each member
must pay margins, computed and collected at least daily, to
cover the exposures and theoretical costs which the CCP
might incur in order to close out open positions in the event
of the member\u2019s default. Margins are calculated using
established and internationally acknowledged risk models
and are debited from participants\u2019 accounts through central
bank accounts and via commercial bank payment systems.
Minimum levels of cash collateral are required. Non-cash
collateral is revalued daily but the members retain title of
the asset and the Group only has a claim on these assets in
the event of a default by the member.
Clearing members also contribute to default funds
managed by the CCP to guarantee the integrity of the
markets in the event of multiple defaults in extreme market
circumstances. Amounts are determined on the basis of the
results of periodic stress testing examined by the risk
committees of the CCP. Furthermore, the Group\u2019s CCP
reinforces its capital position to meet the most stringent
relevant regulatory requirements applicable to it, including
holding a minimum amount of dedicated own resources to
further underpin the protective credit risk framework in the
event of a significant market stress event or participant
failure.
An analysis of the aggregate clearing member contributions
of margin and default funds across the CCP is shown below:
| | |
| | |
|
| | |
| | |
| | |
Margin received by title transfer | | |
| | |
Total on balance sheet collateral (a) | | |
Total member collateral pledged | | |
(a)The counterbalance of the total on balance sheet collateral is included in the line 'other payables to clearing members' in the table at Note
35.1
Investment counterparty risk for CCP margin and default
funds is managed by investing the cash element in
instruments or structures deemed \u2018secure\u2019, including
through direct investments in highly rated, \u2018regulatory
qualifying\u2019 sovereign bonds and supra-national debt,
investments in tri-party and bilateral reverse repos
(receiving high-quality government securities as collateral)
in certain jurisdictions and deposits with the central bank of
Italy. The small proportion of cash that is invested
unsecured is placed for short durations with highly rated
counterparties where strict limits are applied with respect
to credit quality, concentration and tenor.
| | |
| | |
|
| | |
| | |
| | |
CCP other financial assets (a) | | |
| | |
Clearing member cash equivalents - short term deposits | | |
Clearing member cash\u00a0 - central bank deposits | | |
Clearing member cash\u00a0 - other banks | | |
Total clearing member cash (b) | | |
(a) The CCP other financial assets are included in the line 'Debt instruments at fair value through other comprehensive income' in the table at Note
35.1.
(b) The total clearing member cash is included in the line 'Cash and cash equivalents of clearing members'' in the table at Note 35.1.
Distress can result from the risk that certain governments
may be unable or find it difficult to service their debts. This
could have adverse effects, particularly on the Group\u2019s CCP,
potentially impacting cleared products, margin collateral,
investments, the clearing membership and the financial
industry as a whole.
Specific risk frameworks manage country risk for both fixed
income clearing and margin collateral and all clearing
members\u2019 portfolios are monitored regularly against a suite
of sovereign stress scenarios. Investment limits and
counterparty and clearing membership monitoring are
sensitive to changes in ratings and other financial market
indicators, to ensure the Group\u2019s CCP is able to measure,
monitor and mitigate exposures to sovereign risk and
respond quickly to anticipated changes. Risk Committees
maintain an ongoing watch over these risks and the
associated policy frameworks to protect the Group against
potentially severe volatility in the sovereign debt markets.
The Group\u2019s sovereign exposures at the end of the financial
reporting period were:
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total for all countries (b) | | |
(a)'EU Central' consists of supra-national debts.
(b)The total sovereign investments include the investment portfolio of CCP clearing business assets as disclosed in the line 'Debt instruments
at fair value through other comprehensive income' in the table at Note 35.1.
37.5.1Impairment of financial assets
The Group\u2019s trade and contract receivables and other debt
financial assets at amortised cost or FVOCI (including CCP
clearing business) are subject to the expected credit loss
model. While cash and cash equivalents are also subject to
the impairment requirements of IFRS 9, the identified
impairment loss was considered immaterial.
Trade and contract receivables
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade and contract
receivables.
To measure expected credit losses, trade and contract
receivables have been grouped based on shared credit risk
characteristics and the days past due. The historical loss
rates are based on the payment profiles of the sales over a
period of 24 months before reporting date and the
corresponding historical credit losses experience within this
period. The historical loss rates are adjusted to reflect
current and forward-looking factors specific to the debtors
and economic environment. Generally trade receivables are
written-off if past due more than one year, or when there is
no reasonable expectation of recovery. The maximum
exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 21.
The Group evaluates the concentration of credit risk with
respect to trade and contract receivables as low, as most of
its customers are leading financial institutions that are
highly rated.
Set out below is the information about the credit risk
exposure on the Group\u2019s trade and contract receivables
using a provision matrix as at 31 December 2022 and 2021:
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
In 2022, the increase in loss allowance provision was due to
a higher customer base in the highest category of days
outstanding, which is partly offset by a mathematical
reduction in historical loss rates (caused by a decrease in
historical credit losses, relative to a higher amount of sales
following the inclusion of the full year impact of Borsa
Italiana Group). The increase of individually assessed
customers related to specific debtors, which showed a
significant increase in credit risk.
Other debt financial assets at amortised cost or FVOCI
(including CCP clearing business)
The other debt financial assets comprise i) debt investments
at amortised cost, which include short-term deposits with a
maturity over three months, ii) debt investments at FVOCI,
which include investments in listed bonds and government
bonds and iii) CCP clearing business financial assets at
amortised cost or FVOCI.
The other debt financial assets at amortised cost or FVOCI
(including CCP clearing business) are considered to have
low credit risk, as the issuers of the instruments have a low
risk of default evidenced by their strong capacity to meet
their contractual cash flow obligations in the near term. The
Group closely monitors its CCP investment portfolio and
invests only in government debt and other collateralised
instruments where the risk of loss is minimal. There was no
increase in credit risk in the year and none of the assets are
past due. The loss allowance recognised during the period
was therefore limited to 12 months expected credit losses.
The Group did not recognise any material provision for
expected credit losses on its other debt financial assets at
amortised cost or FVOCI (including CCP clearing business)
as per 31 December 2022 (2021: not material). The amount
of credit-impaired financial assets is considered not
significant.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-625": {
"value": "Correction of misstatements
(i)Non-controlling interests
In November 2022, following reassessment of its non-
controlling interests position, the Group discovered a
computational error in calculating non-controlling interest
related to the acquisition of Borsa Italiana Group on 28 April
2021.
Based on the reassessment, the Group determined that it
had understated non-controlling interests and understated
the amount of goodwill in the balance sheet for the year
ended 31 December 2021. Because the measurement
period for the business combination ended on 28 April 2022
and therefore the one-year window for adjustments to the
PPA no longer applies, the Group has restated the balance
sheet retrospectively in accordance with IFRS 3.50, as the
item comprises an error in accordance with IAS 8.
The following tables summarizes the impact on the Group\u2019s
consolidated financial statements.
Impact on balance sheet (Increase /(decrease)):
| | | |
| |
| | | 31 December 2021 (Restated) |
| | | |
| | | |
Goodwill and other intangible assets | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Non-controlling interests | | | |
| | | |
Total equity and liabilities | | | |
Liabilities as Current or Non-current' on how an entity
classifies debt and other financial liabilities as current or
non-current in particular circumstances: Only covenants
with which an entity is required to comply on or before the
reporting date affect the classification of a liability as
current or non-current. In addition, an entity has to disclose
information in the notes that enables users of financial
statements to understand the risk that non-current
liabilities with covenants could become repayable within
twelve months.
\u2022 Defer the effective date of the 2020 amendments to 1
January 2024.
The amendments are effective for reporting periods
beginning on or after 1 January 2024. The amendments are
applied retrospectively and earlier application is permitted.
The Group is currently assessing the impact the
amendments will have on current practice.
Amendments to IAS 8 - Definition of Accounting Estimates
In February 2021, the IASB issued amendments to IAS 8, in
which it introduces a definition of \u2018accounting estimates\u2019.
The amendments clarify the distinction between changes in
accounting estimates and changes in accounting policies
and the correction of errors. Also, they clarify how entities
use measurement techniques and inputs to develop
accounting estimates. The amendments are effective for
annual reporting periods beginning on or after 1 January
2023 and apply to changes in accounting policies and
changes in accounting estimates that occur on or after the
start of that period. Earlier application is permitted as long
as this fact is disclosed. The amendments are not expected
to have a material impact on the Group.
Amendments to IAS 1 and IFRS Practice Statement 2 -
Disclosure of Accounting Policies
In February 2021, the IASB issued amendments to IAS 1 and
IFRS Practice Statement 2 Making Materiality Judgements,
in which it provides guidance and examples to help entities
apply materiality judgements to accounting policy
disclosures. The amendments aim to help entities provide
accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their
\u2018significant\u2019 accounting policies with a requirement to
disclose their \u2018material\u2019 accounting policies and adding
guidance on how entities apply the concept of materiality in
making decisions about accounting policy disclosures. The
amendments to IAS 1 are applicable for annual periods
beginning on or after 1 January 2023 with earlier application
permitted. Since the amendments to the Practice Statement
2 provide non-mandatory guidance on the application of the
definition of material to accounting policy information, an
effective date for these amendments is not necessary. The
Group is assessing the impact of the amendments to
determine the impact they will have on the Group\u2019s
accounting policy disclosures.
Amendment to IAS 12 - Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendments clarify that the initial recognition
exemption does not apply to transactions in which equal
amounts of deductible and taxable temporary differences
arise on initial recognition. The amendments are effective
for annual reporting periods beginning on or after 1 January
2023. The Group is currently assessing the impact of these
amendments on the Group\u2019s consolidated financial
statements.
There are no other IFRS\u2019s or IFRIC interpretations not yet
effective, that would be expected to have a material impact
on the Group in the current or future reporting periods and
on foreseeable future transactions.
Correction of an error
In the second half of 2022, management discovered that in
prior periods some of the Dutch subsidiaries of Euronext
N.V. had incorrectly applied article 365, Book 2 of the Dutch
Civil Code, and as a result did not recognise a legal reserve
for the carrying amount of capitalised development costs.
As the legal reserve for capitalised development costs is
restricted for distribution, this can impact the reserve for
\u201cnon-distributable retained earnings and other reserves
regarding subsidiaries\u201d in the company financial statements
of Euronext N.V.
Management recalculated the legal reserve for \u201cnon-
distributable retained earnings and other reserves
regarding subsidiaries\u201d and concluded that the reserve was
understated for the 2021 and prior financial years.
The error has been corrected by restating each of the
affected financial statement line items for the prior periods,
as follows:
Impact on company balance sheet (Increase /(decrease)):
| | | | | | |
| 31 December 2021 (Originally reported) | | 31 December 2021 (Restated) | 31 December 2020 (Originally reported) | | 1 January 2021 (Restated) |
| | | | | | |
| | | | | | |
Total shareholders' equity | | | | | | |
Impact on company statement of changes in equity (Increase /(decrease))
| | | |
| | Non-distributable retained earnings and other reserves by subsidiaries | |
As at 31 December 2020 (originally reported) | | | |
| | | |
As at 1 January 2021 (restated) | | | |
As at 31 December 2021 (originally reported) | | | |
| | | |
As at 31 December 2021 (restated) | | | |
In 2022:
| | | | |
| | Sell Euronext N.V. shares | | Total value transaction including commissions |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total as at 31 December 2022 | | | | |
(ii)Share Repurchase Programme
The Group has entered into a discretionary management
agreement with a bank to repurchase Euronext shares
within the limits of relevant laws and regulations (in
particular EC regulation 2273/2003) and the Group\u2019s articles
of association to cover the Group\u2019s outstanding obligations
resulting from employee shares plans for 2019, 2020, 2021
and 2022. The share repurchase programme aims to hedge
price risk arising for granted employee share plans. In 2022,
the Group repurchased no shares. In 2021, the Group
repurchased 350,000 shares for a total consideration of
\u20ac31.8 million.
The movement schedule for the reported years are as
follows:
In 2021:
| | | |
| | | Total value transaction including commissions |
| | | |
| | | |
| | | |
Total as at 31 December 2021 | | | |
In 2022:
| | | |
| | | Total value transaction including commissions |
| | | |
| | | |
| | | |
Total as at 31 December 2022 | | | |
(iii)Share-based payments vesting
In 2022, the Group delivered 146,098 shares with a cost of
\u20ac9.7 million to employees for whom share plans had vested
(2021: 154,836 shares with a cost of \u20ac8.9 million). This
movement is disclosed on the line \u2018Other\u2019 in the
Consolidated Statement of Changes in Equity.
26.2Legal reserve
Retained earnings are not freely available for distribution
for an amount of \u20ac59.8 million (2021: \u20ac40.3 million) relating
to legal reserves (see Note 52). The amount related to prior
period was subject to restatement, as further disclosed in
Note 41.
Correction of an error
In the second half of 2022, management discovered that in
prior periods some of the Dutch subsidiaries of Euronext
N.V. had incorrectly applied article 365, Book 2 of the Dutch
Civil Code, and as a result did not recognise a legal reserve
for the carrying amount of capitalised development costs.
As the legal reserve for capitalised development costs is
restricted for distribution, this can impact the reserve for
\u201cnon-distributable retained earnings and other reserves
regarding subsidiaries\u201d in the company financial statements
of Euronext N.V.
Management recalculated the legal reserve for \u201cnon-
distributable retained earnings and other reserves
regarding subsidiaries\u201d and concluded that the reserve was
understated for the 2021 and prior financial years.
The error has been corrected by restating each of the
affected financial statement line items for the prior periods,
as follows:
Impact on company balance sheet (Increase /(decrease)):
| | | | | | |
| 31 December 2021 (Originally reported) | | 31 December 2021 (Restated) | 31 December 2020 (Originally reported) | | 1 January 2021 (Restated) |
| | | | | | |
| | | | | | |
Total shareholders' equity | | | | | | |
Impact on company statement of changes in equity (Increase /(decrease))
| | | |
| | Non-distributable retained earnings and other reserves by subsidiaries | |
As at 31 December 2020 (originally reported) | | | |
| | | |
As at 1 January 2021 (restated) | | | |
As at 31 December 2021 (originally reported) | | | |
| | | |
As at 31 December 2021 (restated) | | | |
In 2022:
| | | | |
| | Sell Euronext N.V. shares | | Total value transaction including commissions |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total as at 31 December 2022 | | | | |
(ii)Share Repurchase Programme
The Group has entered into a discretionary management
agreement with a bank to repurchase Euronext shares
within the limits of relevant laws and regulations (in
particular EC regulation 2273/2003) and the Group\u2019s articles
of association to cover the Group\u2019s outstanding obligations
resulting from employee shares plans for 2019, 2020, 2021
and 2022. The share repurchase programme aims to hedge
price risk arising for granted employee share plans. In 2022,
the Group repurchased no shares. In 2021, the Group
repurchased 350,000 shares for a total consideration of
\u20ac31.8 million.
The movement schedule for the reported years are as
follows:
In 2021:
| | | |
| | | Total value transaction including commissions |
| | | |
| | | |
| | | |
Total as at 31 December 2021 | | | |
In 2022:
| | | |
| | | Total value transaction including commissions |
| | | |
| | | |
| | | |
Total as at 31 December 2022 | | | |
(iii)Share-based payments vesting
In 2022, the Group delivered 146,098 shares with a cost of
\u20ac9.7 million to employees for whom share plans had vested
(2021: 154,836 shares with a cost of \u20ac8.9 million). This
movement is disclosed on the line \u2018Other\u2019 in the
Consolidated Statement of Changes in Equity.
26.2Legal reserve
Retained earnings are not freely available for distribution
for an amount of \u20ac59.8 million (2021: \u20ac40.3 million) relating
to legal reserves (see Note 52). The amount related to prior
period was subject to restatement, as further disclosed in
Note 41.
Correction of an error
In the second half of 2022, management discovered that in
prior periods some of the Dutch subsidiaries of Euronext
N.V. had incorrectly applied article 365, Book 2 of the Dutch
Civil Code, and as a result did not recognise a legal reserve
for the carrying amount of capitalised development costs.
As the legal reserve for capitalised development costs is
restricted for distribution, this can impact the reserve for
\u201cnon-distributable retained earnings and other reserves
regarding subsidiaries\u201d in the company financial statements
of Euronext N.V.
Management recalculated the legal reserve for \u201cnon-
distributable retained earnings and other reserves
regarding subsidiaries\u201d and concluded that the reserve was
understated for the 2021 and prior financial years.
The error has been corrected by restating each of the
affected financial statement line items for the prior periods,
as follows:
Impact on company balance sheet (Increase /(decrease)):
| | | | | | |
| 31 December 2021 (Originally reported) | | 31 December 2021 (Restated) | 31 December 2020 (Originally reported) | | 1 January 2021 (Restated) |
| | | | | | |
| | | | | | |
Total shareholders' equity | | | | | | |
Impact on company statement of changes in equity (Increase /(decrease))
| | | |
| | Non-distributable retained earnings and other reserves by subsidiaries | |
As at 31 December 2020 (originally reported) | | | |
| | | |
As at 1 January 2021 (restated) | | | |
As at 31 December 2021 (originally reported) | | | |
| | | |
As at 31 December 2021 (restated) | | | |
and introduced a columnar format for the presentation of
'underlying' and 'non-underlying' items. This change has
been established in order to provide the reader with
supplemental data relating to the Group's financial
condition and results of operations. The Group presents
profit for the year before any 'non-underlying' items as this
highlights more clearly trends in the Group\u2019s business and
gives an indication of the Group\u2019s ongoing sustainable
performance.
Accordingly, the exceptional items accounting policy, as
presented in the consolidated financial statements for the
year ended 31 December 2021, has been replaced by an
updated accounting policy to reflect the extension to 'non-
underlying' items. The updated accounting policy is
reflected at section U). above.
The above changes resulted in the following re-presentation
of exceptional items to their respective categories for the
comparative period:
| | | |
| |
| Reported 31 December 2021 | | Re-presented 31 December 2021 |
Statement of Profit or Loss (extract) | | | |
Salaries and employee benefits | | | |
Depreciation and amortisation | | | |
Other operational expenses | | | |
Operating profit before exceptional items | | | |
| | | |
| | | |
| | | |
Statement of Cash Flows (extract) | | | |
| | | |
\u2022 Depreciation and amortisation | | | |
\u2022 Changes in working capital and provisions | | | |
Cash flow from operating activities | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-629": {
"value": "Changes in accounting policies and
disclosures
The International Accounting Standards Board (IASB)
continues to issue new standards and interpretations, and
amendments to existing standards. The Group applies these
new standards when effective and endorsed by the
European Union. The Group has not opted for early adoption
for any of these standards.
(i)New and amended standards and interpretations
The Group has applied the following standards and
amendments for the first time for their annual reporting
period commencing 1 January 2022.
Amendments to IFRS 3 \u2013 References to the conceptual
framework
The amendments replaced the reference to an old version
of the IASB\u2019s Conceptual Framework (the 1989 Framework)
with a reference to the current version issued in March 2018
(the Conceptual Framework). The amendments further
added an exception to the recognition principle in IFRS 3.
That is, for liabilities and contingent liabilities that would be
within the scope of IAS 37 or IFRIC 21, if incurred
separately, an acquirer would apply IAS 37 or IFRIC 21,
respectively, instead of the Conceptual Framework, to
identify the obligations it has assumed in a business
combination. The amendment further added an explicit
statement in the standard that an acquirer cannot recognise
contingent assets acquired in a business combination.
These amendments had no impact on the consolidated
financial statements of the Group, as there were no
contingent assets, liabilities or contingent liabilities within
the scope of these amendments that arose during the
period.
Amendments to IAS 16 \u2013 Proceeds before intended use
The amendments address the accounting for any proceeds
received from selling items produced while bringing that
asset to the location and condition necessary for it to be
capable of operating in the manner intended by
management. The amendments specify that an entity would
recognise the proceeds from selling such items, and the
costs of producing those items, in profit or loss.
These amendments had no impact on the consolidated
financial statements of the Group, as there were no sales of
such items produced by property, plant and equipment
made available for use on or after the beginning of the
earliest period presented.
Amendments to IAS 37\u00a0 \u2013 onerous contracts \u2013 cost of
fulfilling a contract
The amendments specify which costs an entity needs to
include when assessing whether a contract is onerous or
loss-making. The amendments specify that the cost of
fulfilling a contract comprises the costs that relate directly
to the contract. Costs that relate directly to a contract
consist of both:
\u25aathe incremental costs of fulfilling that contract\u2014
for example, direct labour and materials; and
\u25aaan allocation of other costs that relate directly to
fulfilling contracts\u2014for example, an allocation of
the depreciation charge for an item of property,
plant and equipment used in fulfilling that contract
among others.
The amendments further specify that before a separate
provision for an onerous contract is established, an entity
recognises any impairment loss that has occurred on assets
used in fulfilling the contract. The amendments had no
impact on the Group\u2019s consolidated financial statements, as
the Group had not identified any contracts as being onerous
in accordance with IAS 37. The onerous lease contract of the
Basildon Data Centre is accounted for in accordance with
IFRS 16, hence these amendments are not applicable for
this contract.
Annual Improvements Cycle - 2018-2020
The IASB issued the 2018-2020 cycle improvements to its
standards and interpretations. These improvements
include:
\u2022 IFRS 9 Financial instruments \u2013 The amendment
clarifies the fees that an entity includes when
assessing whether the terms of a new or modified
financial liability are substantially different from
the terms of the original financial liability, when
determining whether to derecognise a financial
liability that has been modified or exchanged.
There is no similar amendment proposed for IAS
39. In accordance with the transitional provisions,
the Group applies the amendments to financial
liabilities that are modified or exchanged on or
after the beginning of the annual reporting period
in which the entity first applies the amendment.
The amendments had no impact on the
consolidated financial statements of the Group, as
there were no modifications of the Group\u2019s
financial instruments during the period.
\u2022 IFRS 1 First-time adoption of IFRS. These
amendments had no impact on the consolidated
financial statements of the Group.
\u2022 IAS 41 Agriculture. These amendments had no
impact on the consolidated financial statements of
the Group.
(ii)Future implications of new and amended
standards and interpretations not yet adopted
The new and amended standards and interpretations that
are issued, but not yet effective, up to the date of issuance of
the Group\u2019s financial statements are disclosed below. The
Group intends to adopt these new and amended standards
and interpretations, if applicable, when they become
effective.
IFRS 17 - Insurance Contracts
In May 2017, the IASB issued IFRS 17 Insurance Contracts
(IFRS 17), a comprehensive new accounting standard for
insurance contracts covering recognition and
measurement, presentation and disclosure. IFRS 17 is
effective for reporting periods beginning on or after 1
January 2023, with comparative figures required. This
standard does not affect the Group.
Amendments to IAS 1 - Classification of Liabilities as
Current or Non-current
In January 2020, the IASB issued amendments to
paragraphs 69 to 76 of IAS 1 to specify the requirements for
classifying liabilities as current or non-current. The
amendments clarify:
\u2022 What is meant by a right to defer settlement
\u2022 That a right to defer must exist at the end of the reporting
period
\u2022 That classification is unaffected by the likelihood that an
entity will exercise its deferral right
\u2022 That only if an embedded derivative in a convertible
liability is itself an equity instrument would the terms of a
liability not impact its classification
The amendments are effective for annual reporting periods
beginning on or after 1 January 2024 and must be applied
retrospectively. The Group is currently assessing the impact
the amendments will have on current practice.
Amendments to IAS 1 - Non-current Liabilities with
Covenants
In October 2022, the IASB issued Non-current Liabilities
with Covenants, which amended IAS 1 Presentation of
Financial Statements. The amendments:
\u2022 Modify the requirements introduced by 'Classification of
Liabilities as Current or Non-current' on how an entity
classifies debt and other financial liabilities as current or
non-current in particular circumstances: Only covenants
with which an entity is required to comply on or before the
reporting date affect the classification of a liability as
current or non-current. In addition, an entity has to disclose
information in the notes that enables users of financial
statements to understand the risk that non-current
liabilities with covenants could become repayable within
twelve months.
\u2022 Defer the effective date of the 2020 amendments to 1
January 2024.
The amendments are effective for reporting periods
beginning on or after 1 January 2024. The amendments are
applied retrospectively and earlier application is permitted.
The Group is currently assessing the impact the
amendments will have on current practice.
Amendments to IAS 8 - Definition of Accounting Estimates
In February 2021, the IASB issued amendments to IAS 8, in
which it introduces a definition of \u2018accounting estimates\u2019.
The amendments clarify the distinction between changes in
accounting estimates and changes in accounting policies
and the correction of errors. Also, they clarify how entities
use measurement techniques and inputs to develop
accounting estimates. The amendments are effective for
annual reporting periods beginning on or after 1 January
2023 and apply to changes in accounting policies and
changes in accounting estimates that occur on or after the
start of that period. Earlier application is permitted as long
as this fact is disclosed. The amendments are not expected
to have a material impact on the Group.
Amendments to IAS 1 and IFRS Practice Statement 2 -
Disclosure of Accounting Policies
In February 2021, the IASB issued amendments to IAS 1 and
IFRS Practice Statement 2 Making Materiality Judgements,
in which it provides guidance and examples to help entities
apply materiality judgements to accounting policy
disclosures. The amendments aim to help entities provide
accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their
\u2018significant\u2019 accounting policies with a requirement to
disclose their \u2018material\u2019 accounting policies and adding
guidance on how entities apply the concept of materiality in
making decisions about accounting policy disclosures. The
amendments to IAS 1 are applicable for annual periods
beginning on or after 1 January 2023 with earlier application
permitted. Since the amendments to the Practice Statement
2 provide non-mandatory guidance on the application of the
definition of material to accounting policy information, an
effective date for these amendments is not necessary. The
Group is assessing the impact of the amendments to
determine the impact they will have on the Group\u2019s
accounting policy disclosures.
Amendment to IAS 12 - Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendments clarify that the initial recognition
exemption does not apply to transactions in which equal
amounts of deductible and taxable temporary differences
arise on initial recognition. The amendments are effective
for annual reporting periods beginning on or after 1 January
2023. The Group is currently assessing the impact of these
amendments on the Group\u2019s consolidated financial
statements.
There are no other IFRS\u2019s or IFRIC interpretations not yet
effective, that would be expected to have a material impact
on the Group in the current or future reporting periods and
on foreseeable future transactions.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-630": {
"value": "Business combinations
The acquisitions that occurred during the year are set out
below.
5.1Acquisition of Spafid's Issuer Services
Business
On 1 April 2022, the Group acquired the Issuer Services
Business of Spafid S.p.A., which operates as an investment
advisory firm and is a fully owned subsidiary of Mediobanca
S.p.A. The purchase consideration for this business
acquisition amounted to \u20ac12.0 million.
The acquisition is an important step to further develop local
added-value services to issuers, and to deliver on Euronext
Securities\u2019 ambition to converge issuers services across all
its locations (Denmark, Norway, Portugal and Italy). The
agreement includes the transfer of business relationships
with over 200 trusted customers, hardware, technical
software tools and experienced personnel who will oversee
and manage all operational aspects of the services.
The initial book values of the net assets acquired were
considered not material from a Euronext Group perspective.
The Group identified \u20ac5.6 million of customer relationships
and \u20ac0.5 million of software intangible assets as part of the
purchase price allocation. The related goodwill amounted to\u00a0
\u20ac5.9 million.
Acquisition related costs of \u20ac0.4 million were expensed and
recognised as non-underlying other operational expenses.
5.2Acquisition of the technology businesses
from Nexi\u2019s capital markets activities
On 1 December 2022, the Group acquired the technology
businesses of Nexi S.p.A., an Italian bank specialised in
payment systems, currently powering MTS and Euronext
Securities Milan. The purchase price for this business
acquisition approximates \u20ac57 million (on a debt free, cash
free basis).
This acquisition is a new step in the Group\u2019s strategy to
leverage its integrated value chain as it further enhances
the Group\u2019s technology competencies and capabilities in
trading and post trade. The acquisition will also strengthen
the core operations of MTS and Euronext Securities Milan.
With this acquisition, the Group internalises the core trading
platform of MTS and its largest IT contract. It enables
Euronext to become more agile and efficient by fully owning
the technology powering MTS and Euronext Securities
Milan.
As the initial book values of the net assets acquired were
considered not material from a Euronext Group perspective,
the preliminary goodwill equals the purchase consideration
pending final valuation outcomes of the net identifiable
assets acquired (including software and customer
relationships), which had not been completed by the date
these consolidated financial statements were authorised for
issuance by Euronext N.V.\u2019s Supervisory Board.
Consequently, the goodwill is subject to subsequent
purchase price allocation adjustments.
Depreciation and amortisation
| | |
| |
| | |
Depreciation of tangible fixed assets | | |
Amortisation of intangible fixed assets | | |
Amortisation of right-of-use assets | | |
Underlying depreciation and amortisation | | |
Non-underlying depreciation and amortisation | | |
| | |
\u20ac4.5 million respectively from 'Purchased software' to 'Internally developed software', as this classification better reflects the nature of these
assets. Related amortisation was reclassified consistently in the line 'Amortisation charge'\u00a0 for an amount of \u20ac4.2 million.
b) As per 31 December 2022, brand names include brands with a finite useful live for an amount of \u20ac3.6 million (2021: \u20ac4.2 million).
In 2022, the increase in internally developed software investments primarily related to the ongoing implementation of Borsa
Italiana Group to Euronext's trading platform Optiq\u00ae, the expansion of clearing activities to all Euronext markets by Euronext
Clearing, the pan-Europeanisation of Euronext CSDs, and several digital ambition projects within the Group. Furthermore, no
indicators of impairment of intangible assets with a finite useful life were identified and as such no detailed impairment test
was performed. For intangible assets with an indefinite useful life the impairment test did not lead to an/any impairment.
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 acquisitions of Euronext FX (former
FastMatch Inc.) in 2017 and Nord Pool Holding AS in 2020
and the allocation of goodwill from those transactions to
respectively the \u201cFX Trading\u201d CGU and the \u201cNord Pool\u201d CGU,
the Group tests goodwill at the level of three CGUs (Groups):
\u201cEuronext\u201d, \u201cFX Trading\u201d and \u201cNord Pool\u201d. The acquisition
of Borsa Italiana Group is included in the Euronext CGU.
Euronext CGU (Group)
The recoverable value of the \u201cEuronext\u201d CGU Group is
based on its fair value less cost of disposal, applying a
discounted cash flow approach, and corroborated by
observation of Company\u2019s 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes of European equity markets, the
Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.4% (2021: 1.2%) after 2023. The weighted average
cost of capital applied was 7.2% (2021: 6.7%).
The annual impairment testing of the \u201cEuronext\u201d 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. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
FX Trading CGU
The recoverable value of the \u201cFX Trading\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on global Foreign Exchange trading
markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 2.0% (2021: 2.0%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cFX Trading\u201d CGU
performed at each year-end did not result in any instance
where the carrying value of the operating segment
exceeded its recoverable amount. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
Nord Pool CGU
The recoverable value of the \u201cNord Pool\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on day ahead and intraday physical
energy markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.3% (2021: 1.5%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cNord Pool\u201d CGU
performed at year-end did not result in any instance where
the carrying value of the operating segment exceeded its
recoverable amount. Recoverable amount is sensitive to key
assumptions. As of 31 December 2022, a reduction to 0%
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 a goodwill impairment.
The sensitivity test on the key assumptions defined in 2022
would not result in a goodwill impairment. Possible
correlations between each of these parameters were not
considered.
Geographical information
The geographical information of the Group\u2019s revenue from
contracts with customers is disclosed in Note 8.1.1. Other
geographical information is disclosed below.
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Property, plant and equipment | | | | | | | | | | | | | |
Intangible assets other than Goodwill (a) | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Property, plant and equipment | | | | | | | | | | | | | |
Intangible assets other than Goodwill (a) | | | | | | | | | | | | | |
(a)Goodwill is monitored at the Group level and therefore not allocated by country.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-631": {
"value": "Business combinations
The acquisitions that occurred during the year are set out
below.
5.1Acquisition of Spafid's Issuer Services
Business
On 1 April 2022, the Group acquired the Issuer Services
Business of Spafid S.p.A., which operates as an investment
advisory firm and is a fully owned subsidiary of Mediobanca
S.p.A. The purchase consideration for this business
acquisition amounted to \u20ac12.0 million.
The acquisition is an important step to further develop local
added-value services to issuers, and to deliver on Euronext
Securities\u2019 ambition to converge issuers services across all
its locations (Denmark, Norway, Portugal and Italy). The
agreement includes the transfer of business relationships
with over 200 trusted customers, hardware, technical
software tools and experienced personnel who will oversee
and manage all operational aspects of the services.
The initial book values of the net assets acquired were
considered not material from a Euronext Group perspective.
The Group identified \u20ac5.6 million of customer relationships
and \u20ac0.5 million of software intangible assets as part of the
purchase price allocation. The related goodwill amounted to\u00a0
\u20ac5.9 million.
Acquisition related costs of \u20ac0.4 million were expensed and
recognised as non-underlying other operational expenses.
5.2Acquisition of the technology businesses
from Nexi\u2019s capital markets activities
On 1 December 2022, the Group acquired the technology
businesses of Nexi S.p.A., an Italian bank specialised in
payment systems, currently powering MTS and Euronext
Securities Milan. The purchase price for this business
acquisition approximates \u20ac57 million (on a debt free, cash
free basis).
This acquisition is a new step in the Group\u2019s strategy to
leverage its integrated value chain as it further enhances
the Group\u2019s technology competencies and capabilities in
trading and post trade. The acquisition will also strengthen
the core operations of MTS and Euronext Securities Milan.
With this acquisition, the Group internalises the core trading
platform of MTS and its largest IT contract. It enables
Euronext to become more agile and efficient by fully owning
the technology powering MTS and Euronext Securities
Milan.
As the initial book values of the net assets acquired were
considered not material from a Euronext Group perspective,
the preliminary goodwill equals the purchase consideration
pending final valuation outcomes of the net identifiable
assets acquired (including software and customer
relationships), which had not been completed by the date
these consolidated financial statements were authorised for
issuance by Euronext N.V.\u2019s Supervisory Board.
Consequently, the goodwill is subject to subsequent
purchase price allocation adjustments.
Goodwill and other intangible assets
| | | | | | | |
| | | | Fair value adjustment Intangible assets recognised on acquisition of subsidiaries | |
| | Internally developed software | Purchased softw. Constr. in Pr. Patents & TrMr | | | | |
| | | | | | | |
| | | | | | | |
Accumulated amortisation and impairment | | | | | | | |
| | | | | | | |
| | | | | | | |
As at 1 January 2021 net book amount | | | | | | | |
| | | | | | | |
| | | | | | | |
Impairment charge / write off | | | | | | | |
| | | | | | | |
Acquisitions of subsidiaries (a) | | | | | | | |
| | | | | | | |
Amortisation charge (Note 10) (a) | | | | | | | |
As at 31 December 2021 net book amount | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Accumulated amortisation and impairment | | | | | | | |
| | | | | | | |
| | | | | | | |
As at 1 January 2022 net book amount | | | | | | | |
| | | | | | | |
| | | | | | | |
Impairment charge / write off | | | | | | | |
| | | | | | | |
Acquisitions of subsidiaries (Note 5) | | | | | | | |
| | | | | | | |
Amortisation charge (Note 10) | | | | | | | |
As at 31 December 2022 net book amount | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Accumulated amortisation and impairment | | | | | | | |
| | | | | | | |
\u20ac4.5 million respectively from 'Purchased software' to 'Internally developed software', as this classification better reflects the nature of these
assets. Related amortisation was reclassified consistently in the line 'Amortisation charge'\u00a0 for an amount of \u20ac4.2 million.
b) As per 31 December 2022, brand names include brands with a finite useful live for an amount of \u20ac3.6 million (2021: \u20ac4.2 million).
In 2022, the increase in internally developed software investments primarily related to the ongoing implementation of Borsa
Italiana Group to Euronext's trading platform Optiq\u00ae, the expansion of clearing activities to all Euronext markets by Euronext
Clearing, the pan-Europeanisation of Euronext CSDs, and several digital ambition projects within the Group. Furthermore, no
indicators of impairment of intangible assets with a finite useful life were identified and as such no detailed impairment test
was performed. For intangible assets with an indefinite useful life the impairment test did not lead to an/any impairment.
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 acquisitions of Euronext FX (former
FastMatch Inc.) in 2017 and Nord Pool Holding AS in 2020
and the allocation of goodwill from those transactions to
respectively the \u201cFX Trading\u201d CGU and the \u201cNord Pool\u201d CGU,
the Group tests goodwill at the level of three CGUs (Groups):
\u201cEuronext\u201d, \u201cFX Trading\u201d and \u201cNord Pool\u201d. The acquisition
of Borsa Italiana Group is included in the Euronext CGU.
Euronext CGU (Group)
The recoverable value of the \u201cEuronext\u201d CGU Group is
based on its fair value less cost of disposal, applying a
discounted cash flow approach, and corroborated by
observation of Company\u2019s 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes of European equity markets, the
Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.4% (2021: 1.2%) after 2023. The weighted average
cost of capital applied was 7.2% (2021: 6.7%).
The annual impairment testing of the \u201cEuronext\u201d 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. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
FX Trading CGU
The recoverable value of the \u201cFX Trading\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on global Foreign Exchange trading
markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 2.0% (2021: 2.0%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cFX Trading\u201d CGU
performed at each year-end did not result in any instance
where the carrying value of the operating segment
exceeded its recoverable amount. Recoverable amount is
sensitive to key assumptions. As of 31 December 2022, a
reduction to 0% 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 a goodwill
impairment. The sensitivity test on the key assumptions
defined in 2022 would not result in a goodwill impairment.
Possible correlations between each of these parameters
were not considered.
Nord Pool CGU
The recoverable value of the \u201cNord Pool\u201d CGU is based on
its fair value less cost of disposal, applying a discounted
cash flow approach. 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 2023 budget and
the business plan for 2024. Key assumptions used by
management include third party revenue growth, which
factors future volumes on day ahead and intraday physical
energy markets, the Group\u2019s 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 2022,
revenues have been extrapolated using a perpetual growth
rate of 1.3% (2021: 1.5%) after 2023. The discount rate
applied was 7.5% (2021: 7.2%).
The annual impairment testing of the \u201cNord Pool\u201d CGU
performed at year-end did not result in any instance where
the carrying value of the operating segment exceeded its
recoverable amount. Recoverable amount is sensitive to key
assumptions. As of 31 December 2022, a reduction to 0%
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 a goodwill impairment.
The sensitivity test on the key assumptions defined in 2022
would not result in a goodwill impairment. Possible
correlations between each of these parameters were not
considered.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-632": {
"value": "Non-controlling interests (NCI)
Financial information of subsidiaries that have material non-controlling interest is provided below.
Proportion of equity interest held by non-controlling interests:
| | | |
| Place of business / country of Incorporation | % of ownership interest held by NCI |
| |
| | | |
| | | |
| | | |
The summarised financial information of these subsidiaries is provided below. This information is based on amounts before
inter-company eliminations.
(a) As from acquisition date.
| | | | |
Summarised cash flow information | | |
| | | | |
Cash flow from operating activities | | | | |
Cash flow from investing activities | | | | |
Cash flow from financing activities | | | | |
Non-cash exchange gains/ (losses) | | | | |
Net increase / (decrease) in cash and cash equivalents | | | | |
(a) As from acquisition date",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-633": {
"value": "Investments in associates and joint ventures
7.1.Interests in associates and joint ventures
Set out below are the associates and joint ventures of the
Group as at 31 December 2022. The country of incorporation
or registration is also their principal place of business, and
the proportion of ownership interest is the same as the
proportion of voting rights held.
| | | | | | |
| Place of business / country of Incorporation | | | Carrying amount (In thousands of euros |
| | | |
| | | | | | |
| | | | | | |
Immaterial joint ventures | | | | | | |
| | | | | | |
Total equity accounted investments | | | | | | |
(a)LCH SA is a Continental European clearing house, offering clearing services for a diverse range of asset classes. As described in Note 3, the
Group has determined that it has significant influence over LCH SA\u00a0 even though it only holds 11.1% of the voting rights.
7.2Commitments and contingent liabilities in
respect of associates and joint ventures
The Group has no outstanding contingent liabilities with
respect to its associates or joint ventures.
7.3Summarised financial information for
associates and joint ventures
The tables below provide summarised financial information
for those associates and joint ventures that are material to
the Group. The information disclosed reflects the amounts
presented in the financial statements of the relevant
associates or joint ventures and not Euronext\u2019s share of
those amounts. They have been amended to reflect
adjustments made by the entity when using the equity
method, including fair value adjustments and modifications
for differences in accounting policy.
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
Reconciliation to carrying amounts: | | |
Opening net assets 1 January | | |
| | |
Profit/(loss) for the year (a) | | |
Other comprehensive income | | |
| | |
| | |
| | |
Group's share in thousands of euros | | |
| | |
| | |
(a)In 2022, LCH SA contributed a \u20ac10.4 million profit (2021: \u20ac12.0 million) to the line \u2018Share of net profit/(loss) of associates and joint ventures
accounted for using the equity method, and impairments thereof\u2019 in the Consolidated Statement of Profit or Loss.
| | |
Summarised statement of comprehensive income | |
| | |
| | |
Profit from continuing operations | | |
Profit from discontinued operations | | |
| | |
Other comprehensive income | | |
Total comprehensive income | | |
Dividends received from associates | | |
7.4Individually immaterial associates and joint
ventures
In addition to the interest in material associates and joint
ventures disclosed above, the Group also has interests in
individually immaterial associates and individually
immaterial joint ventures, that are all accounted for using
the equity method.
Individually immaterial associates
The Group has an 18.93% interest in Tokeny Solutions, a
tokenisation platform that provides users end-to-end
solutions to issue, manage and transfer tokenised
securities on public blockchain. In the first half of 2021,
following indications of a deteriorated future cash flow
situation, the investment in associate Tokeny Solutions was
impaired by \u20ac4.3 million to zero value.
The Group also has an interest of 23.0% in MTS Associated
Markets S.A., offering an electronic trading platform for
sovereign securities (e.g. government bonds). On 1
December 2022, the Group acquired a 30% interest in ATS
Advanced Technology Solutions S.p.A. (which line of
business includes designing, developing, and producing
prepackaged computer software) at consideration of\u00a0 \u20ac0.7
million.
| | |
| | |
Aggregate carrying amount of individually immaterial associates | | |
Aggregate amounts of the group's share of: | | |
Profit/(loss) from continuing operations | | |
Post-tax profit or loss from discontinued operations | | |
Other comprehensive income | | |
Total comprehensive income | | |
| | Profit/(loss) from continuing operations | | |
Post-tax profit or loss from discontinued operations | | |
Other comprehensive income | | |
Total comprehensive income | | |
The decrease in capital expenditures contracted was
primarily due to the fact that the previous period was
impacted by investments made for the data centre in
Bergamo and investments made for improvements to the
Oslo B\u00f8rs building.
39.2Guarantees given
As per 31 December 2022, Euronext N.V. participates in a
number of guarantees within the Group (see Note 58).
39.3Securities held as custodian
In Portugal, Norway, Denmark and Italy, the Group acts as a
National Central Securities Depository, operated by
respectively Interbolsa, Verdipapirsentralen ASA (VPS), VP
Securities AS and Monte Titoli S.p.A.
Interbolsa
As at 31 December 2022, the value of securities kept in
custody by Interbolsa amounted to \u20ac386 billion (2021: \u20ac397
billion) based on the market value of shares and the
nominal value of bonds. The procedures of this National
Central Securities Depository are focused on the provision
of notary services, central maintenance services and
settlement securities services, according to the CSDR
(Central Securities Depository Regulation). The settlement
services, provided through T2S platform, have its risks
mitigated mainly by early warning systems. The
reconciliation procedures in place mitigate the major risks
related to the registration of securities.
VPS
As at 31 December 2022, the value of securities kept in
custody by VPS amounted to \u20ac744 billion (2021: \u20ac762 billion)
based on the market value of shares and the nominal value
of bonds.
Under the terms of Section 9-1 the Norwegian Central
Securities Depository Act of 15 March 2019, VPS is liable for
losses that other parties may incur as a result of errors that
occur in connection with registration activities. This does
not apply if VPS is able to demonstrate that the error was
outside VPS\u2019 control. The statutory liability according to
Section 9-1, first Paragraph, only applies to direct losses
and is limited to NOK 500 million for the same error. In case
of gross negligence or wilful misconduct these limitations
do not apply. For losses that can be attributed to an account
operator, VPS is jointly and severally liable with the account
operator for NOK 50 million per error. Above this amount,
the central securities depository is not liable for losses that
can be attributed to an account operator.\u00a0
Euronext Nordics Holding AS has taken out errors and
omissions insurance for the parent company and its
subsidiaries, with an annual limit of NOK 1 billion and a
deductible of NOK 10 million per claim. VPS shares this
insurance with the other companies in the Group up to a
limit of NOK 300 million and is the sole insured party for the
balance of NOK 700 million. The insurance is subject to a
limit of NOK 500 million for any one claim.
VP Securities
As at 31 December 2022, the value of securities kept in
custody by VP Securities amounted to \u20ac1,443 billion (2021:
\u20ac1,638 billion) based on the market value of shares and the
nominal value of bonds. The procedures of this National
Central Securities Depository are focused on the provision
of notary services, central maintenance services and
settlement securities services, according to the CSDR
(Central Securities Depository Regulation). The settlement
services, provided through T2S platform, have its risks
mitigated mainly by early warning systems. The
reconciliation procedures in place mitigate the major risks
related to the registration of securities.
Monte Titoli
As at 31 December 2022, the value of securities kept in
custody by Monte Titoli amounted to \u20ac3,730 billion (2021:
\u20ac3,635 billion) based on the market value of shares and the
nominal value of bonds. The procedures of this National
Central Securities Depository are focused on the provision
of notary services, central maintenance services and
settlement securities services, according to the CSDR
(Central Securities Depository Regulation). The settlement
services, provided through T2S platform, have its risks
mitigated mainly by early warning systems. The
reconciliation procedures in place mitigate the major risks
related to the registration of securities.
Commitments and contingencies not included in the balance sheet
Tax group
The Company is the head of a fiscal unity with Euronext
Amsterdam N.V., Euronext IP & IT B.V. and Euronext
Corporate Services B.V.. Under the standard conditions, the
members of the tax group are jointly and severally liable for
any taxes payable by the fiscal unity. Each company within
the fiscal unity recognises its own tax position on its
company balance sheet.
The financial statements of Euronext N.V., Euronext
Amsterdam N.V., Euronext IP & IT B.V. and Euronext
Corporate Services B.V. recognise a tax liability based on
their taxable profit.
Guarantees
The Company participates in a number of guarantees.
Within the Group, the Company act in the guarantor for
certain liabilities of its subsidiary up to an amount of \u20ac7.6
million (2021: \u20ac7.7 million). In addition, the Company has
provided a 403 statement for the benefit of Euronext
Amsterdam N.V. It should be noted that the Group
consistently waives guarantee fees for intergroup
guarantees, meaning these transactions are not at arm\u2019s
length.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-636": {
"value": "Commitments and contingent liabilities in
respect of associates and joint ventures
The Group has no outstanding contingent liabilities with
respect to its associates or joint ventures.
Contingencies
The Group is involved in a number of legal proceedings that
have arisen in the ordinary course of our business. Other
than as discussed below, management does not expect
these pending or threatening legal proceedings to have a
significant effect on the Group\u2019s financial position or
profitability. The outcome of legal proceedings, however,
can be extremely difficult to predict and the final outcome
may be materially different from managements\u2019
expectation.
Euronext Amsterdam Pension Fund
In the court case between Euronext Amsterdam and
approximately 120 retired and/or former Euronext
Amsterdam employees, united in an association (\"VPGE\"),
the Higher Court ordered Euronext to restore the pension
reduction to the VPGE members and to pay for indexation of
the VPGE member\u2019s pensions on 28 July 2020. Euronext
lodged an appeal in Cassation before the Supreme Court on
23 October 2020.
On 29 October 2021, the Attorney General (\"Advocaat-
Generaal\") advised the Supreme Court to annul the decision
of the Higher Court and to reject the cross-appeal filed by
VPGE. On 23 September 2022, the Supreme Court has
overturned the verdict of the Higher Court. The Supreme
Court agreed with Euronext\u2019s position on all points raised.
In accordance with Dutch procedural rules, the case will
now be reverted back to the Higher Court that has to take
the final decision, taking into account the verdict of the
Supreme Court. The date of this hearing has not yet been
announced.
No provision has been booked in connection with this case.
Commitments
39.1Capital commitments
As of 31 December, capital expenditures contracted but not
yet incurred were as follows:
| | |
| | |
| | |
Later than 1 year and no later than 5 years | | |
| | |
| | |
The decrease in capital expenditures contracted was
primarily due to the fact that the previous period was
impacted by investments made for the data centre in
Bergamo and investments made for improvements to the
Oslo B\u00f8rs building.
39.2Guarantees given
As per 31 December 2022, Euronext N.V. participates in a
number of guarantees within the Group (see Note 58).
39.3Securities held as custodian
In Portugal, Norway, Denmark and Italy, the Group acts as a
National Central Securities Depository, operated by
respectively Interbolsa, Verdipapirsentralen ASA (VPS), VP
Securities AS and Monte Titoli S.p.A.
Interbolsa
As at 31 December 2022, the value of securities kept in
custody by Interbolsa amounted to \u20ac386 billion (2021: \u20ac397
billion) based on the market value of shares and the
nominal value of bonds. The procedures of this National
Central Securities Depository are focused on the provision
of notary services, central maintenance services and
settlement securities services, according to the CSDR
(Central Securities Depository Regulation). The settlement
services, provided through T2S platform, have its risks
mitigated mainly by early warning systems. The
reconciliation procedures in place mitigate the major risks
related to the registration of securities.
VPS
As at 31 December 2022, the value of securities kept in
custody by VPS amounted to \u20ac744 billion (2021: \u20ac762 billion)
based on the market value of shares and the nominal value
of bonds.
Under the terms of Section 9-1 the Norwegian Central
Securities Depository Act of 15 March 2019, VPS is liable for
losses that other parties may incur as a result of errors that
occur in connection with registration activities. This does
not apply if VPS is able to demonstrate that the error was
outside VPS\u2019 control. The statutory liability according to
Section 9-1, first Paragraph, only applies to direct losses
and is limited to NOK 500 million for the same error. In case
of gross negligence or wilful misconduct these limitations
do not apply. For losses that can be attributed to an account
operator, VPS is jointly and severally liable with the account
operator for NOK 50 million per error. Above this amount,
the central securities depository is not liable for losses that
can be attributed to an account operator.\u00a0
Euronext Nordics Holding AS has taken out errors and
omissions insurance for the parent company and its
subsidiaries, with an annual limit of NOK 1 billion and a
deductible of NOK 10 million per claim. VPS shares this
insurance with the other companies in the Group up to a
limit of NOK 300 million and is the sole insured party for the
balance of NOK 700 million. The insurance is subject to a
limit of NOK 500 million for any one claim.
VP Securities
As at 31 December 2022, the value of securities kept in
custody by VP Securities amounted to \u20ac1,443 billion (2021:
\u20ac1,638 billion) based on the market value of shares and the
nominal value of bonds. The procedures of this National
Central Securities Depository are focused on the provision
of notary services, central maintenance services and
settlement securities services, according to the CSDR
(Central Securities Depository Regulation). The settlement
services, provided through T2S platform, have its risks
mitigated mainly by early warning systems. The
reconciliation procedures in place mitigate the major risks
related to the registration of securities.
Monte Titoli
As at 31 December 2022, the value of securities kept in
custody by Monte Titoli amounted to \u20ac3,730 billion (2021:
\u20ac3,635 billion) based on the market value of shares and the
nominal value of bonds. The procedures of this National
Central Securities Depository are focused on the provision
of notary services, central maintenance services and
settlement securities services, according to the CSDR
(Central Securities Depository Regulation). The settlement
services, provided through T2S platform, have its risks
mitigated mainly by early warning systems. The
reconciliation procedures in place mitigate the major risks
related to the registration of securities.
Commitments and contingencies not included in the balance sheet
Tax group
The Company is the head of a fiscal unity with Euronext
Amsterdam N.V., Euronext IP & IT B.V. and Euronext
Corporate Services B.V.. Under the standard conditions, the
members of the tax group are jointly and severally liable for
any taxes payable by the fiscal unity. Each company within
the fiscal unity recognises its own tax position on its
company balance sheet.
The financial statements of Euronext N.V., Euronext
Amsterdam N.V., Euronext IP & IT B.V. and Euronext
Corporate Services B.V. recognise a tax liability based on
their taxable profit.
Guarantees
The Company participates in a number of guarantees.
Within the Group, the Company act in the guarantor for
certain liabilities of its subsidiary up to an amount of \u20ac7.6
million (2021: \u20ac7.7 million). In addition, the Company has
provided a 403 statement for the benefit of Euronext
Amsterdam N.V. It should be noted that the Group
consistently waives guarantee fees for intergroup
guarantees, meaning these transactions are not at arm\u2019s
length.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-637": {
"value": "Contract balances
The Group has recognised the following assets and liabilities related to contracts with customers:
| | | |
| | | |
Trade receivables (Note 21) | | | |
Contract receivables (Note 21) | | | |
Contract liabilities (Note 33) | | | |
Trade receivables are non-interest bearing and are
generally due on terms of 30 to 90 days and represent
amounts in respect of billed revenue, for which the Group
has an unconditional right to consideration (i.e. only the
passage of time is required before payment of the
consideration is due). Trade receivables decreased by \u20ac18.9
million, which is mainly attributable to lower outstanding
power sales positions at Nord Pool, as a result of lower
energy prices at the end of 2022 when compared to last
year.
Contract receivables represent amounts in respect of
unbilled revenue, for which the Group has an unconditional
right to consideration (i.e. only the passage of time is
required before payment of the consideration is due).
Contract receivables increased by \u20ac7.4 million, which is
almost fully attributable to accrued income at Borsa Italiana
Group.
In 2022, \u20ac7.4 million (2021: \u20ac4.9 million) was recognised as
provision for expected credit losses on trade and contract
receivables. The increase in loss allowance provision, was
primarily due to increased risk on specific debtors.
Trade and other receivables
| | |
| | |
| | |
| | |
| | |
Allowance for expected credit losses | | |
Trade and contract receivables net | | |
Tax receivables (excluding income tax) | | |
| | |
| | |
Trade receivables are non-interest bearing and generally on
terms of 30 to 90 days. Contract receivables represent
amounts in respect of unbilled revenue, for which the Group
has an unconditional right to consideration (i.e. only the
passage of time is required before payment of the
consideration is due).
The significant changes in trade and contract receivables
are disclosed in Note 8.1.2.
Set out below is the movement in the allowance for
expected credit losses of trade and contract receivables:
| | |
| | |
| | |
Provision for expected credit losses | | |
Receivables written off during the year | | |
| | |
Management considers the fair value of the trade and other
receivables to approximate their carrying value. The
significant changes in loss allowance provision are
disclosed in Note 8.1.2. The information about the credit
exposures of trade and other receivables are disclosed in
Note 37.5.1.
Impairment of financial assets
The Group\u2019s trade and contract receivables and other debt
financial assets at amortised cost or FVOCI (including CCP
clearing business) are subject to the expected credit loss
model. While cash and cash equivalents are also subject to
the impairment requirements of IFRS 9, the identified
impairment loss was considered immaterial.
Trade and contract receivables
The Group applies the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade and contract
receivables.
To measure expected credit losses, trade and contract
receivables have been grouped based on shared credit risk
characteristics and the days past due. The historical loss
rates are based on the payment profiles of the sales over a
period of 24 months before reporting date and the
corresponding historical credit losses experience within this
period. The historical loss rates are adjusted to reflect
current and forward-looking factors specific to the debtors
and economic environment. Generally trade receivables are
written-off if past due more than one year, or when there is
no reasonable expectation of recovery. The maximum
exposure to credit risk at the reporting date is the carrying
value of each class of financial assets disclosed in Note 21.
The Group evaluates the concentration of credit risk with
respect to trade and contract receivables as low, as most of
its customers are leading financial institutions that are
highly rated.
Set out below is the information about the credit risk
exposure on the Group\u2019s trade and contract receivables
using a provision matrix as at 31 December 2022 and 2021:
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
| | | | | | |
| | | | | | |
| | |
| | | | | | |
| | | | | | |
Expected credit loss rate | | | | | | |
Collectively assessed receivables | | | | | | |
Expected credit loss collective basis | | | | | | |
Expected credit loss rate | | | | | | |
Individually assessed receivables | | | | | | |
Expected credit loss individual basis | | | | | | |
Total expected credit loss | | | | | | |
In 2022, the increase in loss allowance provision was due to
a higher customer base in the highest category of days
outstanding, which is partly offset by a mathematical
reduction in historical loss rates (caused by a decrease in
historical credit losses, relative to a higher amount of sales
following the inclusion of the full year impact of Borsa
Italiana Group). The increase of individually assessed
customers related to specific debtors, which showed a
significant increase in credit risk.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-638": {
"value": "Contract balances
The Group has recognised the following assets and liabilities related to contracts with customers:
| | | |
| | | |
Trade receivables (Note 21) | | | |
Contract receivables (Note 21) | | | |
Contract liabilities (Note 33) | | | |
Contract liabilities primarily relate to received consideration
(or an amount of consideration is due) from customers for
the initial (or subsequent) listing of equity securities, bond
lifetime fees, indices licenses, software maintenance &
hosting and corporate services. In 2022, contract liabilities
decreased by \u20ac11.8 million, which primarily related to a
drop in new IPOs and subsequent listings pipeline, as a
result of negative sentiment caused by the current
uncertain economic environment.
Revenue recognised in the reporting period that was
included in the contract liability balance at the beginning of
the period amounted to \u20ac74.8 million (2021: \u20ac55.4 million).
The increase is mainly explained by a higher balance at the
beginning of the period, due to the inclusion of Borsa
Italiana Group. The amount of revenue recognised in the
reporting period from performance obligations satisfied (or
partially satisfied) in previous periods was considered not
material (2021: not material).
Contract liabilities
(a)Includes contract liabilities related to Indices licenses, software maintenance & hosting and corporate services
The contract liabilities primarily relate to received
consideration (or an amount of consideration is due) from
customers for the initial (or subsequent) listing of equity
securities and bond lifetime fees. Contract liabilities are
recognised as revenue when the Group performs under the
contract.
The significant changes in contract liabilities are disclosed
in Note 8.1.2.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-639": {
"value": "Net treasury income through CCP business
Income recognised in the CCP clearing business executed
by Euronext Clearing includes net treasury income earned
on margin and default funds, held as part of the risk
management process.
For the year ended 31 December 2022, 'underlying' net
treasury income through CCP business amounted to \u20ac44.0
million (2021: \u20ac35.4 million) and is the result of gross
interest income of \u20ac60.9 million (2021: \u20ac123.2 million), less
gross interest expense of \u20ac16.8 million (2021: \u20ac87.8 million)
(see Note 35). Where negative interest rates apply, the
Group recognises interest paid on financial assets as a
treasury expense, which amounted to \u20ac43.6 million (2021:
\u20ac86.5 million), and interest received on clearing members\u2019
margin as treasury income, which amounted to \u20ac27.2
million (2021: \u20ac91.1 million).
In July 2022, the Group partially disposed of the debt
investment portfolio held at Euronext Clearing. The related
revaluation loss of \u20ac48.9 million was recycled from Other
Comprehensive Income to 'non-underlying' net treasury
income (see Note 12).
Net financing income / (expense)
| | |
| |
| | |
Interest expense (effective interest method) | | |
Interest in respect of lease liabilities | | |
| | |
| | |
Non-underlying finance costs | | |
| | |
| | |
Interest income (effective interest method) | | |
Interest income from interest rate swaps | | |
| | |
Gain / (loss) on disposal of treasury investments | | |
Net foreign exchange gain/(loss) | | |
Other net financing income/(expense) | | |
| | |
Underlying finance costs for the year, includes the full year
impact of interest expenses on the Senior Unsecured Notes
#3, #4 and #5, that were issued in May 2021 for the purpose
of repayment of the bridge loan facility.
Non-underlying finance costs comprises fees related to the
bridge loan facility, that was used to pre-finance the
acquisition of Borsa Italiana Group in 2021.
Interest income from short-term financial investments
increased, as a result of rising interest rates during 2022.
Interest income from interest rate swaps decreased,
following the termination of the interest rate swap
agreements in May 2022.
The interest income and interest expenses from CCP
clearing business assets and liabilities are shown in net
treasury income through CCP business (see Note 8.2)Net Treasury Income through CCP business
by classification
For the year ended 31 December 2022, net treasury income
through CCP clearing business is earned from instruments
held at amortised cost or fair value as follows:
\u25aaA total \u20ac55.3 million gain was earned from
financial assets and financial liabilities held at
amortised cost (\u20ac28.6 million from interest income
on liabilities held at amortised cost and \u20ac26.7
million on interest expenses on assets held at
amortized cost). In 2021, a net \u20ac43.6 million was
earned from financial assets and financial
liabilities held at amortised cost ( \u20ac93.1 million
income and \u20ac49.5 million expense).
\u25aaA net \u20ac11.3 million loss (2021: \u20ac8.2 million loss)
was incurred from assets held at fair value (\u20ac32.3
million income and \u20ac43.6 million expense (2021:
\u20ac30.1 million income and \u20ac38.3 million expense)).
\u25aaIn addition, a revaluation loss of \u20ac48.9 million was
incurred, following a one\u2013off partial disposal of the
debt investment portfolio held at Euronext
Clearing. The Group recycled the related loss from
Other Comprehensive Income to net treasury
income.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-640": {
"value": "Other income
Other income primarily consists of transitional income from
services provided by Borsa Italiana Group to London Stock
Exchange Group (LSEG) to facilitate the transition of
ownership following the acquisition of Borsa Italiana Group.
Transitional Service Agreements (\u201cTSAs\u201d) were established,
providing for temporary services rendered to or received
from LSEG. Each individual service is priced separately,
generally on a fixed fee basis, based on actual usage or
mutually agreed service level. The agreement was
established on arm's length basis.
Services rendered to LSEG primarily include technology and
various ancillary services. All such services to LSEG are
transitional and, accordingly, the related income from LSEG
is expected to be phased out after fiscal year 2023.
Expenses for services received from LSEG under this
agreement are recognised in other operational expenses
(see Note 11).
Other operational expenses
| | |
| |
| | |
Systems and communications | | |
| | |
| | |
| | |
| | |
Underlying other operating expenses | | |
Non-underlying other operational expenses | | |
| | |
(a)Clearing expenses consist of the fees paid to LCH SA for services received under the Derivatives Clearing Agreement.
(b)Other expenses include marketing, taxes, insurance, travel, professional membership fees, corporate management and other expenses.
Underlying other operational expenses increased, as 2022
includes the full year impact from Borsa Italiana Group,
whereas the comparative period only includes the impact
from Borsa Italiana Group as from the date of control, i.e. 29
April 2021. Furthermore, the increase in other expenses is
due to higher travel costs and higher costs for corporate
events, following the end of the COVID restrictions in 2022.
In addition, underlying other operational expenses include
expenses for services received from LSEG under the TSA
agreements, which include the use of operational systems
and infrastructure, as well as certain market data, hosting,
connectivity and other services. The services received from
LSEG are expected to be transitional. For the year ended 31
December 2022, approximately \u20ac10.4 million of transitional
costs were recognised (2021: approximately \u20ac12.1 million).
Non-underlying other operational expenses primarily
comprises cost incurred to integrate the Borsa Italiana
Group activities with those of the Group and costs related to
acquisitions that change the perimeter of the Group (see
Note 12).
Non-underlying items
| | |
| |
| | |
Non-underlying revenues and income | | |
Realisation of fair value changes upon disposal of debt investments a) | | |
| | |
Non-underlying salaries and employee benefits | | |
Integration -and double run costs b) | | |
| | |
| | |
Non-underlying depreciation and amortisation | | |
Integration -and double run costs b) | | |
Amortisation and impairment of acquired intangible assets (PPA) c) | | |
Amortisation and impairment of other assets | | |
| | |
Non-underlying other operational expenses | | |
Integration -and double run costs b) | | |
| | |
Litigation (provisions)/settlements | | |
| | |
| | |
Non-underlying non-operating items e) | | |
| | |
Gain/(loss) on sale of subsidiaries | | |
Impairment of associates and joint ventures | | |
| | |
Non-underlying items before tax | | |
Tax on non-underlying items f) | | |
| | |
Non-underlying profit / (loss) for the period attributable to the shareholders of the Company | | |
a)Following a one\u2013off partial disposal of the debt investment portfolio held at Euronext Clearing, the Group recycled the related revaluation
loss of \u20ac48.9 million from Other Comprehensive Income to net treasury income.
b)The total integration- and double run costs amounted to \u20ac30.1 million (2021: \u20ac27.5 million) and were attributable to significant projects and
activities to integrate the Borsa Italiana Group businesses with those of the Group.
c)Amortisation of intangible assets that were recorded as a result of acquisitions amounted to \u20ac83.7 million (2021: \u20ac70.3 million).
d)The acquisition costs of \u20ac3.4 million mainly related to the acquisitions of Spafid's Issuer Services Business and the technology businesses
of Nexi S.p.A.. In the comparative period, the acquisition costs of \u20ac27.8 million related to the acquisition of Borsa Italiana Group.
e)The non-underlying non-operating items comprised a \u20ac2.3 million gain/(loss) on sale of the interest in subsidiaries Finance Web Working
SAS and MTS Markets International Inc. and a \u20ac1.5 million impairment of investment in joint venture LiquidShare. The comparative period
included \u20ac9.9 million of fees related to the bridge loan facility, a \u20ac2.7 million gain on sale of the interests in subsidiaries Centevo AB and
Oslo Market Solutions AS and a \u20ac4.3 million impairment of investment in associate Tokeny Solutions.
f)After the determination that an item is taxable, the tax impact of the Group\u2019s non-underlying items of the individual entities of the Group to
which the non-underlying items relate, is computed based on the tax rates applicable to the respective territories in which the entity
operates.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-641": {
"value": "Other income
Other income primarily consists of transitional income from
services provided by Borsa Italiana Group to London Stock
Exchange Group (LSEG) to facilitate the transition of
ownership following the acquisition of Borsa Italiana Group.
Transitional Service Agreements (\u201cTSAs\u201d) were established,
providing for temporary services rendered to or received
from LSEG. Each individual service is priced separately,
generally on a fixed fee basis, based on actual usage or
mutually agreed service level. The agreement was
established on arm's length basis.
Services rendered to LSEG primarily include technology and
various ancillary services. All such services to LSEG are
transitional and, accordingly, the related income from LSEG
is expected to be phased out after fiscal year 2023.
Expenses for services received from LSEG under this
agreement are recognised in other operational expenses
(see Note 11).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-642": {
"value": "Salaries and employee benefits
| | |
| |
| | |
| | |
Salaries and other short term benefits | | |
Social security contributions | | |
Share-based payment costs | | |
Pension cost - defined benefit plans | | |
Pension cost - defined contribution plans | | |
Underlying salaries and employee benefits | | |
Non-underlying salaries and employee benefits | | |
| | |
Underlying salaries and employee benefits increased, as
2022 includes the full impact from Borsa Italiana Group,
whereas the comparative period only includes the impact
from Borsa Italiana Group as from the date of control, i.e. 29
April 2021. Non-underlying salaries and employee benefits
mainly related to termination expenses linked to the
integration of the Borsa Italiana Group activities with those
of the Group and termination expenses in the various other
Euronext entities (see Note 12).
At the end of the year, the number of employees, based on
full-time equivalents (FTE) stood at 2,203 (2021: 2,108). The
increase in FTE was the result of additional employees from
the acquired Spafid and Nexi businesses in 2022.
In 2022, \u2018Share based payments costs\u2019 primarily contain
costs related to the LTI Plans 2019, 2020, 2021 and 2022.
Details of these plans are disclosed in Note 28.
Non-underlying items
| | |
| |
| | |
Non-underlying revenues and income | | |
Realisation of fair value changes upon disposal of debt investments a) | | |
| | |
Non-underlying salaries and employee benefits | | |
Integration -and double run costs b) | | |
| | |
| | |
Non-underlying depreciation and amortisation | | |
Integration -and double run costs b) | | |
Amortisation and impairment of acquired intangible assets (PPA) c) | | |
Amortisation and impairment of other assets | | |
| | |
Non-underlying other operational expenses | | |
Integration -and double run costs b) | | |
| | |
Litigation (provisions)/settlements | | |
| | |
| | |
Non-underlying non-operating items e) | | |
| | |
Gain/(loss) on sale of subsidiaries | | |
Impairment of associates and joint ventures | | |
| | |
Non-underlying items before tax | | |
Tax on non-underlying items f) | | |
| | |
Non-underlying profit / (loss) for the period attributable to the shareholders of the Company | | |
a)Following a one\u2013off partial disposal of the debt investment portfolio held at Euronext Clearing, the Group recycled the related revaluation
loss of \u20ac48.9 million from Other Comprehensive Income to net treasury income.
b)The total integration- and double run costs amounted to \u20ac30.1 million (2021: \u20ac27.5 million) and were attributable to significant projects and
activities to integrate the Borsa Italiana Group businesses with those of the Group.
c)Amortisation of intangible assets that were recorded as a result of acquisitions amounted to \u20ac83.7 million (2021: \u20ac70.3 million).
d)The acquisition costs of \u20ac3.4 million mainly related to the acquisitions of Spafid's Issuer Services Business and the technology businesses
of Nexi S.p.A.. In the comparative period, the acquisition costs of \u20ac27.8 million related to the acquisition of Borsa Italiana Group.
e)The non-underlying non-operating items comprised a \u20ac2.3 million gain/(loss) on sale of the interest in subsidiaries Finance Web Working
SAS and MTS Markets International Inc. and a \u20ac1.5 million impairment of investment in joint venture LiquidShare. The comparative period
included \u20ac9.9 million of fees related to the bridge loan facility, a \u20ac2.7 million gain on sale of the interests in subsidiaries Centevo AB and
Oslo Market Solutions AS and a \u20ac4.3 million impairment of investment in associate Tokeny Solutions.
f)After the determination that an item is taxable, the tax impact of the Group\u2019s non-underlying items of the individual entities of the Group to
which the non-underlying items relate, is computed based on the tax rates applicable to the respective territories in which the entity
operates.
Post-employment benefits
The Group operates defined benefit pension plans for its
employees, with the most significant plans being in France,
Portugal, Norway and Italy. The Group\u2019s plans are funded by
contributions from the employees and the relevant Group
entities, taking into account applicable government
regulations and the recommendations of independent,
qualified actuaries. The majority of plans have plan assets
held in trusts, foundations or similar entities, governed by
local regulations and practice in each country. The assets
for these plans are generally held in separate trustee
administered funds. The benefits provided to employees
under these plans are based primarily on years of service
and compensation levels.
The French plans relate almost completely to retirement
indemnities. French law stipulates that employees are paid
retirement indemnities in form of lump sums on the basis of
the length of service at the retirement date and the amount
is prescribed by collective bargaining agreements.
The Portuguese plan is for both Euronext Lisbon and
Interbolsa and is managed by CGD Pensoes \u2013 Sociedade
Gestora de Fundos de Pensoes SA. The plan was defined
benefit based on final pay. The funds covered payment of
pensions to employees with a minimum of 5 year service.
Annual contributions were based on actuarial calculations.
In 2017, the Portuguese defined benefit plan was frozen and
replaced by a new defined contribution plan, with an
retroactive impact as from 1 January 2017. The old
arrangement remains a defined benefit plan, and is
disclosed as such in this Note.
The Norwegian plans relate to Oslo B\u00f8rs VPS and Nord
Pool. The plan in Oslo B\u00f8rs VPS comprises both defined
benefit schemes and defined contribution schemes. The
general pension plan for employees in Norway is a defined
contribution scheme. The defined benefit schemes are
mainly related to lifetime pensions for former CEOs of Oslo
B\u00f8rs and VPS, as well as a voluntary early retirement
scheme for Oslo B\u00f8rs which was closed in 2003. Nord Pool
has a defined benefit pension plan involving two former
employees for which contributions are made in accordance
with actuarial calculations. The Norwegian pension plans
are in compliance with the Mandatory Occupational
Pensions Act.
The Italian plan relates to the Borsa Italiana Group.
Following the entry into force of the 2007 Finance Act and
related decrees, the severance indemnity (TFR), maturing
1st January 2007 can no longer be retained by the
companies that employ more than 50 employees but must
be paid to a pension fund or, alternatively, into an open
treasury fund opened at the 'National Institute for Social
Security' (INPS), according to the option exercised by the
employees themselves. This implies that accruals
calculated after 1st January 2007 are part of a defined
contribution plan because the company\u2019s obligation is
satisfied by the payment of contributions to pension funds or
INPS. The liability regarding the severance indemnity prior
to the date mentioned above shall instead continue to
represent a defined benefit plan to be valued applying the
actuarial method based on the provisions set forth in IAS 19
and is disclosed as such in this Note.
The movement in the defined obligation over the years
presented is as follows:
| | | |
| Present value of obligation | Fair value of plan assets | |
| | | |
| | | |
| | | |
| | | |
Interest expense / (income) | | | |
| | | |
| | | |
\u2013Return on plan assets, excluding amounts included in interest expense / (income) | | | |
\u2013(Gain) / loss from change in financial assumptions | | | |
\u2013 Experience (gains) / losses | | | |
\u2013Effect of changes in foreign exchange rates and other | | | |
| | | |
| | | |
\u2013Employer contributions | | | |
| | | |
\u2013Acquired in business combination | | | |
\u2013Reclassifications and other | | | |
| | | |
| | | |
| | | |
| | | |
Interest expense / (income) | | | |
| | | |
| | | |
\u2013Return on plan assets, excluding amounts included in interest expense / (income) | | | |
\u2013(Gain) / loss from change in financial assumptions | | | |
\u2013Experience (gains) / losses | | | |
\u2013Effect of changes in foreign exchange rates and other | | | |
| | | |
| | | |
\u2013Employer contributions | | | |
| | | |
\u2013Acquired in business combination | | | |
\u2013Reclassifications and other | | | |
| | | |
| | | | | | |
| |
| | | | | | |
Present value of obligation | | | | | | |
Fair value of plan assets | | | | | | |
| | | | | | |
The significant actuarial assumptions were as follows:
The Group derives the discount rate used to determine the defined benefit obligation from yields on high quality corporate
bonds of the duration corresponding to the liabilities.
As of 31 December 2022, the sensitivity of the defined benefit obligation to changes in the weighted principal assumptions were:\u00a0
| | | |
| | Impact on defined benefit obligation | |
| | | |
| | | |
| | | |
| | | |
The pension plan assets allocation differs per plan. On a weighted average basis, the allocation was as follows:
The weighted average duration of the defined benefit obligation for retirement plans is 14 years at 31 December 2022.
For 2023, the expected obligations contributions are approximately \u20ac2.4 million.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-643": {
"value": "Salaries and employee benefits
| | |
| |
| | |
| | |
Salaries and other short term benefits | | |
Social security contributions | | |
Share-based payment costs | | |
Pension cost - defined benefit plans | | |
Pension cost - defined contribution plans | | |
Underlying salaries and employee benefits | | |
Non-underlying salaries and employee benefits | | |
| | |
Underlying salaries and employee benefits increased, as
2022 includes the full impact from Borsa Italiana Group,
whereas the comparative period only includes the impact
from Borsa Italiana Group as from the date of control, i.e. 29
April 2021. Non-underlying salaries and employee benefits
mainly related to termination expenses linked to the
integration of the Borsa Italiana Group activities with those
of the Group and termination expenses in the various other
Euronext entities (see Note 12).
At the end of the year, the number of employees, based on
full-time equivalents (FTE) stood at 2,203 (2021: 2,108). The
increase in FTE was the result of additional employees from
the acquired Spafid and Nexi businesses in 2022.
In 2022, \u2018Share based payments costs\u2019 primarily contain
costs related to the LTI Plans 2019, 2020, 2021 and 2022.
Details of these plans are disclosed in Note 28.
Depreciation and amortisation
| | |
| |
| | |
Depreciation of tangible fixed assets | | |
Amortisation of intangible fixed assets | | |
Amortisation of right-of-use assets | | |
Underlying depreciation and amortisation | | |
Non-underlying depreciation and amortisation | | |
| | |
(a)Clearing expenses consist of the fees paid to LCH SA for services received under the Derivatives Clearing Agreement.
(b)Other expenses include marketing, taxes, insurance, travel, professional membership fees, corporate management and other expenses.
Underlying other operational expenses increased, as 2022
includes the full year impact from Borsa Italiana Group,
whereas the comparative period only includes the impact
from Borsa Italiana Group as from the date of control, i.e. 29
April 2021. Furthermore, the increase in other expenses is
due to higher travel costs and higher costs for corporate
events, following the end of the COVID restrictions in 2022.
In addition, underlying other operational expenses include
expenses for services received from LSEG under the TSA
agreements, which include the use of operational systems
and infrastructure, as well as certain market data, hosting,
connectivity and other services. The services received from
LSEG are expected to be transitional. For the year ended 31
December 2022, approximately \u20ac10.4 million of transitional
costs were recognised (2021: approximately \u20ac12.1 million).
Non-underlying other operational expenses primarily
comprises cost incurred to integrate the Borsa Italiana
Group activities with those of the Group and costs related to
acquisitions that change the perimeter of the Group (see
Note 12).
Non-underlying items
| | |
| |
| | |
Non-underlying revenues and income | | |
Realisation of fair value changes upon disposal of debt investments a) | | |
| | |
Non-underlying salaries and employee benefits | | |
Integration -and double run costs b) | | |
| | |
| | |
Non-underlying depreciation and amortisation | | |
Integration -and double run costs b) | | |
Amortisation and impairment of acquired intangible assets (PPA) c) | | |
Amortisation and impairment of other assets | | |
| | |
Non-underlying other operational expenses | | |
Integration -and double run costs b) | | |
| | |
Litigation (provisions)/settlements | | |
| | |
| | |
Non-underlying non-operating items e) | | |
| | |
Gain/(loss) on sale of subsidiaries | | |
Impairment of associates and joint ventures | | |
| | |
Non-underlying items before tax | | |
Tax on non-underlying items f) | | |
| | |
Non-underlying profit / (loss) for the period attributable to the shareholders of the Company | | |
a)Following a one\u2013off partial disposal of the debt investment portfolio held at Euronext Clearing, the Group recycled the related revaluation
loss of \u20ac48.9 million from Other Comprehensive Income to net treasury income.
b)The total integration- and double run costs amounted to \u20ac30.1 million (2021: \u20ac27.5 million) and were attributable to significant projects and
activities to integrate the Borsa Italiana Group businesses with those of the Group.
c)Amortisation of intangible assets that were recorded as a result of acquisitions amounted to \u20ac83.7 million (2021: \u20ac70.3 million).
d)The acquisition costs of \u20ac3.4 million mainly related to the acquisitions of Spafid's Issuer Services Business and the technology businesses
of Nexi S.p.A.. In the comparative period, the acquisition costs of \u20ac27.8 million related to the acquisition of Borsa Italiana Group.
e)The non-underlying non-operating items comprised a \u20ac2.3 million gain/(loss) on sale of the interest in subsidiaries Finance Web Working
SAS and MTS Markets International Inc. and a \u20ac1.5 million impairment of investment in joint venture LiquidShare. The comparative period
included \u20ac9.9 million of fees related to the bridge loan facility, a \u20ac2.7 million gain on sale of the interests in subsidiaries Centevo AB and
Oslo Market Solutions AS and a \u20ac4.3 million impairment of investment in associate Tokeny Solutions.
f)After the determination that an item is taxable, the tax impact of the Group\u2019s non-underlying items of the individual entities of the Group to
which the non-underlying items relate, is computed based on the tax rates applicable to the respective territories in which the entity
operates.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-644": {
"value": "Salaries and employee benefits
At the end of the year, the number of employees, based on
full-time equivalents (FTE) stood at 2,203 (2021: 2,108). The
increase in FTE was the result of additional employees from
the acquired Spafid and Nexi businesses in 2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-645": {
"value": "Depreciation and amortisation
| | |
| |
| | |
Depreciation of tangible fixed assets | | |
Amortisation of intangible fixed assets | | |
Amortisation of right-of-use assets | | |
Underlying depreciation and amortisation | | |
Non-underlying depreciation and amortisation | | |
| | |
a)Following a one\u2013off partial disposal of the debt investment portfolio held at Euronext Clearing, the Group recycled the related revaluation
loss of \u20ac48.9 million from Other Comprehensive Income to net treasury income.
b)The total integration- and double run costs amounted to \u20ac30.1 million (2021: \u20ac27.5 million) and were attributable to significant projects and
activities to integrate the Borsa Italiana Group businesses with those of the Group.
c)Amortisation of intangible assets that were recorded as a result of acquisitions amounted to \u20ac83.7 million (2021: \u20ac70.3 million).
d)The acquisition costs of \u20ac3.4 million mainly related to the acquisitions of Spafid's Issuer Services Business and the technology businesses
of Nexi S.p.A.. In the comparative period, the acquisition costs of \u20ac27.8 million related to the acquisition of Borsa Italiana Group.
e)The non-underlying non-operating items comprised a \u20ac2.3 million gain/(loss) on sale of the interest in subsidiaries Finance Web Working
SAS and MTS Markets International Inc. and a \u20ac1.5 million impairment of investment in joint venture LiquidShare. The comparative period
included \u20ac9.9 million of fees related to the bridge loan facility, a \u20ac2.7 million gain on sale of the interests in subsidiaries Centevo AB and
Oslo Market Solutions AS and a \u20ac4.3 million impairment of investment in associate Tokeny Solutions.
f)After the determination that an item is taxable, the tax impact of the Group\u2019s non-underlying items of the individual entities of the Group to
which the non-underlying items relate, is computed based on the tax rates applicable to the respective territories in which the entity
operates.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-646": {
"value": "Depreciation and amortisation
| | |
| |
| | |
Depreciation of tangible fixed assets | | |
Amortisation of intangible fixed assets | | |
Amortisation of right-of-use assets | | |
Underlying depreciation and amortisation | | |
Non-underlying depreciation and amortisation | | |
| | |
(a)Goodwill is monitored at the Group level and therefore not allocated by country.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-647": {
"value": "Depreciation and amortisation
| | |
| |
| | |
Depreciation of tangible fixed assets | | |
Amortisation of intangible fixed assets | | |
Amortisation of right-of-use assets | | |
Underlying depreciation and amortisation | | |
Non-underlying depreciation and amortisation | | |
| | |
\u20ac4.5 million respectively from 'Purchased software' to 'Internally developed software', as this classification better reflects the nature of these
assets. Related amortisation was reclassified consistently in the line 'Amortisation charge'\u00a0 for an amount of \u20ac4.2 million.
b) As per 31 December 2022, brand names include brands with a finite useful live for an amount of \u20ac3.6 million (2021: \u20ac4.2 million).
In 2022, the increase in internally developed software investments primarily related to the ongoing implementation of Borsa
Italiana Group to Euronext's trading platform Optiq\u00ae, the expansion of clearing activities to all Euronext markets by Euronext
Clearing, the pan-Europeanisation of Euronext CSDs, and several digital ambition projects within the Group. Furthermore, no
indicators of impairment of intangible assets with a finite useful life were identified and as such no detailed impairment test
was performed. For intangible assets with an indefinite useful life the impairment test did not lead to an/any impairment.
Geographical information
The geographical information of the Group\u2019s revenue from
contracts with customers is disclosed in Note 8.1.1. Other
geographical information is disclosed below.
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Property, plant and equipment | | | | | | | | | | | | | |
Intangible assets other than Goodwill (a) | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Property, plant and equipment | | | | | | | | | | | | | |
Intangible assets other than Goodwill (a) | | | | | | | | | | | | | |
(a)Goodwill is monitored at the Group level and therefore not allocated by country.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-648": {
"value": "Other operational expenses
| | |
| |
| | |
Systems and communications | | |
| | |
| | |
| | |
| | |
Underlying other operating expenses | | |
Non-underlying other operational expenses | | |
| | |
(a)Clearing expenses consist of the fees paid to LCH SA for services received under the Derivatives Clearing Agreement.
(b)Other expenses include marketing, taxes, insurance, travel, professional membership fees, corporate management and other expenses.
Underlying other operational expenses increased, as 2022
includes the full year impact from Borsa Italiana Group,
whereas the comparative period only includes the impact
from Borsa Italiana Group as from the date of control, i.e. 29
April 2021. Furthermore, the increase in other expenses is
due to higher travel costs and higher costs for corporate
events, following the end of the COVID restrictions in 2022.
In addition, underlying other operational expenses include
expenses for services received from LSEG under the TSA
agreements, which include the use of operational systems
and infrastructure, as well as certain market data, hosting,
connectivity and other services. The services received from
LSEG are expected to be transitional. For the year ended 31
December 2022, approximately \u20ac10.4 million of transitional
costs were recognised (2021: approximately \u20ac12.1 million).
Non-underlying other operational expenses primarily
comprises cost incurred to integrate the Borsa Italiana
Group activities with those of the Group and costs related to
acquisitions that change the perimeter of the Group (see
Note 12).
Non-underlying items
| | |
| |
| | |
Non-underlying revenues and income | | |
Realisation of fair value changes upon disposal of debt investments a) | | |
| | |
Non-underlying salaries and employee benefits | | |
Integration -and double run costs b) | | |
| | |
| | |
Non-underlying depreciation and amortisation | | |
Integration -and double run costs b) | | |
Amortisation and impairment of acquired intangible assets (PPA) c) | | |
Amortisation and impairment of other assets | | |
| | |
Non-underlying other operational expenses | | |
Integration -and double run costs b) | | |
| | |
Litigation (provisions)/settlements | | |
| | |
| | |
Non-underlying non-operating items e) | | |
| | |
Gain/(loss) on sale of subsidiaries | | |
Impairment of associates and joint ventures | | |
| | |
Non-underlying items before tax | | |
Tax on non-underlying items f) | | |
| | |
Non-underlying profit / (loss) for the period attributable to the shareholders of the Company | | |
a)Following a one\u2013off partial disposal of the debt investment portfolio held at Euronext Clearing, the Group recycled the related revaluation
loss of \u20ac48.9 million from Other Comprehensive Income to net treasury income.
b)The total integration- and double run costs amounted to \u20ac30.1 million (2021: \u20ac27.5 million) and were attributable to significant projects and
activities to integrate the Borsa Italiana Group businesses with those of the Group.
c)Amortisation of intangible assets that were recorded as a result of acquisitions amounted to \u20ac83.7 million (2021: \u20ac70.3 million).
d)The acquisition costs of \u20ac3.4 million mainly related to the acquisitions of Spafid's Issuer Services Business and the technology businesses
of Nexi S.p.A.. In the comparative period, the acquisition costs of \u20ac27.8 million related to the acquisition of Borsa Italiana Group.
e)The non-underlying non-operating items comprised a \u20ac2.3 million gain/(loss) on sale of the interest in subsidiaries Finance Web Working
SAS and MTS Markets International Inc. and a \u20ac1.5 million impairment of investment in joint venture LiquidShare. The comparative period
included \u20ac9.9 million of fees related to the bridge loan facility, a \u20ac2.7 million gain on sale of the interests in subsidiaries Centevo AB and
Oslo Market Solutions AS and a \u20ac4.3 million impairment of investment in associate Tokeny Solutions.
f)After the determination that an item is taxable, the tax impact of the Group\u2019s non-underlying items of the individual entities of the Group to
which the non-underlying items relate, is computed based on the tax rates applicable to the respective territories in which the entity
operates.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-649": {
"value": "Non-underlying items
| | |
| |
| | |
Non-underlying revenues and income | | |
Realisation of fair value changes upon disposal of debt investments a) | | |
| | |
Non-underlying salaries and employee benefits | | |
Integration -and double run costs b) | | |
| | |
| | |
Non-underlying depreciation and amortisation | | |
Integration -and double run costs b) | | |
Amortisation and impairment of acquired intangible assets (PPA) c) | | |
Amortisation and impairment of other assets | | |
| | |
Non-underlying other operational expenses | | |
Integration -and double run costs b) | | |
| | |
Litigation (provisions)/settlements | | |
| | |
| | |
Non-underlying non-operating items e) | | |
| | |
Gain/(loss) on sale of subsidiaries | | |
Impairment of associates and joint ventures | | |
| | |
Non-underlying items before tax | | |
Tax on non-underlying items f) | | |
| | |
Non-underlying profit / (loss) for the period attributable to the shareholders of the Company | | |
a)Following a one\u2013off partial disposal of the debt investment portfolio held at Euronext Clearing, the Group recycled the related revaluation
loss of \u20ac48.9 million from Other Comprehensive Income to net treasury income.
b)The total integration- and double run costs amounted to \u20ac30.1 million (2021: \u20ac27.5 million) and were attributable to significant projects and
activities to integrate the Borsa Italiana Group businesses with those of the Group.
c)Amortisation of intangible assets that were recorded as a result of acquisitions amounted to \u20ac83.7 million (2021: \u20ac70.3 million).
d)The acquisition costs of \u20ac3.4 million mainly related to the acquisitions of Spafid's Issuer Services Business and the technology businesses
of Nexi S.p.A.. In the comparative period, the acquisition costs of \u20ac27.8 million related to the acquisition of Borsa Italiana Group.
e)The non-underlying non-operating items comprised a \u20ac2.3 million gain/(loss) on sale of the interest in subsidiaries Finance Web Working
SAS and MTS Markets International Inc. and a \u20ac1.5 million impairment of investment in joint venture LiquidShare. The comparative period
included \u20ac9.9 million of fees related to the bridge loan facility, a \u20ac2.7 million gain on sale of the interests in subsidiaries Centevo AB and
Oslo Market Solutions AS and a \u20ac4.3 million impairment of investment in associate Tokeny Solutions.
f)After the determination that an item is taxable, the tax impact of the Group\u2019s non-underlying items of the individual entities of the Group to
which the non-underlying items relate, is computed based on the tax rates applicable to the respective territories in which the entity
operates.
",
"dimensions": {
"concept": "eur:DisclosureOfNonUnderlyingItemsTextBlock",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-650": {
"value": "Net financing income / (expense)
| | |
| |
| | |
Interest expense (effective interest method) | | |
Interest in respect of lease liabilities | | |
| | |
| | |
Non-underlying finance costs | | |
| | |
| | |
Interest income (effective interest method) | | |
Interest income from interest rate swaps | | |
| | |
Gain / (loss) on disposal of treasury investments | | |
Net foreign exchange gain/(loss) | | |
Other net financing income/(expense) | | |
| | |
Underlying finance costs for the year, includes the full year
impact of interest expenses on the Senior Unsecured Notes
#3, #4 and #5, that were issued in May 2021 for the purpose
of repayment of the bridge loan facility.
Non-underlying finance costs comprises fees related to the
bridge loan facility, that was used to pre-finance the
acquisition of Borsa Italiana Group in 2021.
Interest income from short-term financial investments
increased, as a result of rising interest rates during 2022.
Interest income from interest rate swaps decreased,
following the termination of the interest rate swap
agreements in May 2022.
The interest income and interest expenses from CCP
clearing business assets and liabilities are shown in net
treasury income through CCP business (see Note 8.2).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-651": {
"value": "Net financing income / (expense)
| | |
| |
| | |
Interest expense (effective interest method) | | |
Interest in respect of lease liabilities | | |
| | |
| | |
Non-underlying finance costs | | |
| | |
| | |
Interest income (effective interest method) | | |
Interest income from interest rate swaps | | |
| | |
Gain / (loss) on disposal of treasury investments | | |
Net foreign exchange gain/(loss) | | |
Other net financing income/(expense) | | |
| | |
Underlying finance costs for the year, includes the full year
impact of interest expenses on the Senior Unsecured Notes
#3, #4 and #5, that were issued in May 2021 for the purpose
of repayment of the bridge loan facility.
Non-underlying finance costs comprises fees related to the
bridge loan facility, that was used to pre-finance the
acquisition of Borsa Italiana Group in 2021.
Interest income from short-term financial investments
increased, as a result of rising interest rates during 2022.
Interest income from interest rate swaps decreased,
following the termination of the interest rate swap
agreements in May 2022.
The interest income and interest expenses from CCP
clearing business assets and liabilities are shown in net
treasury income through CCP business (see Note 8.2).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-652": {
"value": "Net financing income / (expense)
| | |
| |
| | |
Interest expense (effective interest method) | | |
Interest in respect of lease liabilities | | |
| | |
| | |
Non-underlying finance costs | | |
| | |
| | |
Interest income (effective interest method) | | |
Interest income from interest rate swaps | | |
| | |
Gain / (loss) on disposal of treasury investments | | |
Net foreign exchange gain/(loss) | | |
Other net financing income/(expense) | | |
| | |
Underlying finance costs for the year, includes the full year
impact of interest expenses on the Senior Unsecured Notes
#3, #4 and #5, that were issued in May 2021 for the purpose
of repayment of the bridge loan facility.
Non-underlying finance costs comprises fees related to the
bridge loan facility, that was used to pre-finance the
acquisition of Borsa Italiana Group in 2021.
Interest income from short-term financial investments
increased, as a result of rising interest rates during 2022.
Interest income from interest rate swaps decreased,
following the termination of the interest rate swap
agreements in May 2022.
The interest income and interest expenses from CCP
clearing business assets and liabilities are shown in net
treasury income through CCP business (see Note 8.2).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-653": {
"value": "Net financing income / (expense)
| | |
| |
| | |
Interest expense (effective interest method) | | |
Interest in respect of lease liabilities | | |
| | |
| | |
Non-underlying finance costs | | |
| | |
| | |
Interest income (effective interest method) | | |
Interest income from interest rate swaps | | |
| | |
Gain / (loss) on disposal of treasury investments | | |
Net foreign exchange gain/(loss) | | |
Other net financing income/(expense) | | |
| | |
Underlying finance costs for the year, includes the full year
impact of interest expenses on the Senior Unsecured Notes
#3, #4 and #5, that were issued in May 2021 for the purpose
of repayment of the bridge loan facility.
Non-underlying finance costs comprises fees related to the
bridge loan facility, that was used to pre-finance the
acquisition of Borsa Italiana Group in 2021.
Interest income from short-term financial investments
increased, as a result of rising interest rates during 2022.
Interest income from interest rate swaps decreased,
following the termination of the interest rate swap
agreements in May 2022.
The interest income and interest expenses from CCP
clearing business assets and liabilities are shown in net
treasury income through CCP business (see Note 8.2)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-654": {
"value": "Net financing income / (expense)
| | |
| |
| | |
Interest expense (effective interest method) | | |
Interest in respect of lease liabilities | | |
| | |
| | |
Non-underlying finance costs | | |
| | |
| | |
Interest income (effective interest method) | | |
Interest income from interest rate swaps | | |
| | |
Gain / (loss) on disposal of treasury investments | | |
Net foreign exchange gain/(loss) | | |
Other net financing income/(expense) | | |
| | |
Underlying finance costs for the year, includes the full year
impact of interest expenses on the Senior Unsecured Notes
#3, #4 and #5, that were issued in May 2021 for the purpose
of repayment of the bridge loan facility.
Non-underlying finance costs comprises fees related to the
bridge loan facility, that was used to pre-finance the
acquisition of Borsa Italiana Group in 2021.
Interest income from short-term financial investments
increased, as a result of rising interest rates during 2022.
Interest income from interest rate swaps decreased,
following the termination of the interest rate swap
agreements in May 2022.
The interest income and interest expenses from CCP
clearing business assets and liabilities are shown in net
treasury income through CCP business (see Note 8.2)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-655": {
"value": "Results from equity investments and gain/(loss) on disposal of subsidiaries
Gain/(loss) on disposal of subsidiaries
| | |
| |
| | |
Gain/(loss) on disposal of subsidiaries | | |
| | |
During the year, the Group disposed its interests in
subsidiaries Finance Web Working SAS and MTS Markets
International Inc., the latter being classified as a disposal
group held for sale as per 31 December 2021 (see Note 22).
The proceeds from the sale of Finance Web Working SAS
were \u20ac0.8 million (net of cash), which resulted in a loss on
disposal of \u20ac0.8 million. The proceeds from the sale of MTS
Markets International Inc. were \u20ac7.8 million, whereas the
combined net assets disposed of amounted to \u20ac4.7 million.
This resulted in a gain on disposal of \u20ac3.1 million.
In the comparative period, the Group disposed its interests
in subsidiaries Centevo AB and Oslo Market Solutions AS.
The combined proceeds from these disposals amounted to
\u20ac5.9 million (net of cash), whereas the combined net assets
disposed of amounted to \u20ac3.2 million (net of cash). This
resulted in a combined result from disposal of \u20ac2.7 millionOther current assets and disposal groups held for sale
Disposal groups held for sale
| | |
| | |
Assets from disposal groups | | |
Liabilities from disposal groups | | |
| | |
In 2022, the Group disposed its interests in subsidiaries that
were classified as held for sale as per 31 December 2021.
Substantially all the balances were related to MTS Markets
International Inc. The proceeds from the sale were \u20ac7.8
million, whereas the combined net assets disposed of
amounted to \u20ac4.7 million. This resulted in a gain on
disposal of \u20ac3.1 million (see Note 14).
In 2021, the Group assessed some individually immaterial
investments in subsidiaries, acquired as part of the
acquisition of Borsa Italiana Group, as disposal groups held
for sale on acquisition. Substantially all of the balances
related to subsidiary MTS Markets International Inc. The
assets from disposal groups held for sale included cash and
cash equivalents for \u20ac5.0 million as per 31 December 2021",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-656": {
"value": "Results from equity investments and gain/(loss) on disposal of subsidiaries
Gain/(loss) on disposal of subsidiaries
| | |
| |
| | |
Gain/(loss) on disposal of subsidiaries | | |
| | |
During the year, the Group disposed its interests in
subsidiaries Finance Web Working SAS and MTS Markets
International Inc., the latter being classified as a disposal
group held for sale as per 31 December 2021 (see Note 22).
The proceeds from the sale of Finance Web Working SAS
were \u20ac0.8 million (net of cash), which resulted in a loss on
disposal of \u20ac0.8 million. The proceeds from the sale of MTS
Markets International Inc. were \u20ac7.8 million, whereas the
combined net assets disposed of amounted to \u20ac4.7 million.
This resulted in a gain on disposal of \u20ac3.1 million.
In the comparative period, the Group disposed its interests
in subsidiaries Centevo AB and Oslo Market Solutions AS.
The combined proceeds from these disposals amounted to
\u20ac5.9 million (net of cash), whereas the combined net assets
disposed of amounted to \u20ac3.2 million (net of cash). This
resulted in a combined result from disposal of \u20ac2.7 million.
Other current assets and disposal groups held for sale
Disposal groups held for sale
| | |
| | |
Assets from disposal groups | | |
Liabilities from disposal groups | | |
| | |
In 2022, the Group disposed its interests in subsidiaries that
were classified as held for sale as per 31 December 2021.
Substantially all the balances were related to MTS Markets
International Inc. The proceeds from the sale were \u20ac7.8
million, whereas the combined net assets disposed of
amounted to \u20ac4.7 million. This resulted in a gain on
disposal of \u20ac3.1 million (see Note 14).
In 2021, the Group assessed some individually immaterial
investments in subsidiaries, acquired as part of the
acquisition of Borsa Italiana Group, as disposal groups held
for sale on acquisition. Substantially all of the balances
related to subsidiary MTS Markets International Inc. The
assets from disposal groups held for sale included cash and
cash equivalents for \u20ac5.0 million as per 31 December 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-657": {
"value": "Income tax expense
(a)De-recognition of tax losses relates to tax losses in the UK, US, Hong Kong and Singapore as it is not considered probable at this moment
that these deferred tax assets can be used to offset future taxable income.
(b)In 2022 and 2021, non-deductible expenses mainly relate to non-deductible M&A expenses.
(c)In 2022 and 2021, other tax exempt income mainly relates to dividends and sales proceeds from investments.
(d)In 2022, \u2018over/(under) provided in prior years\u2019 relates to adjustments to tax following the filing of tax returns. In 2021, \u2018over provided in prior
years\u2019 relates to release of tax following the filing of tax returns.
(e)As from 2014, the Company applies the statutory tax rates without surcharges (in Portugal. Italy and France) to the profit before income tax
to calculate tax at domestic rates. The surcharges (\u20ac11.5 million) have been included in the line \u2018Other\u2019. Furthermore, the line 'Other'
includes, amongst others,,Italian tax on dividends (\u20ac3.1m), the Italian notional interest deduction (\u20ac2.3m) and an R&D credit (\u20ac1m).
The effective tax rate decreased from 27.3% for the year
ended 31 December 2021 to 26.6% for the year ended 31
December 2022.
Deferred income tax
The analysis of deferred tax assets and deferred tax liabilities is as follows:
| | |
| | |
| | |
Deferred income tax assets (a) | | |
Deferred income tax liabilities (a) | | |
Total net deferred tax assets (liabilities) | | |
(a)As shown in the balance sheet, after offsetting deferred tax assets and liabilities related to the same taxable entity.
| | |
| | |
| | |
Deferred tax assets / (liabilities): | | |
Property, plant and equipment | | |
| | |
| | |
Provisions and employee benefits | | |
| | |
| | |
Deferred tax assets (net) | | |
(a)In 2021, the line \u2018Reclassifications and other movements\u2019 was impacted by the acquisition of Borsa Italiana Group for \u20ac512.9 million and in
2022 the line relates to rate impacts thereon.
As per 31 December 2022, tax losses totalling \u20ac29.8 million
(2021: \u20ac27.7 million) were not recognised in the UK, US,
Hong Kong and Singapore since it is not considered
probable, at this moment, that these deferred tax assets
can be used to offset future taxable income.
The majority of the net deferred tax asset is expected to be
recovered or settled after more than twelve months.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-658": {
"value": "Deferred income tax
The analysis of deferred tax assets and deferred tax liabilities is as follows:
| | |
| | |
| | |
Deferred income tax assets (a) | | |
Deferred income tax liabilities (a) | | |
Total net deferred tax assets (liabilities) | | |
(a)As shown in the balance sheet, after offsetting deferred tax assets and liabilities related to the same taxable entity.
| | |
| | |
| | |
Deferred tax assets / (liabilities): | | |
Property, plant and equipment | | |
| | |
| | |
Provisions and employee benefits | | |
| | |
| | |
Deferred tax assets (net) | | |
(a)In 2021, the line \u2018Reclassifications and other movements\u2019 was impacted by the acquisition of Borsa Italiana Group for \u20ac512.9 million and in
2022 the line relates to rate impacts thereon.
As per 31 December 2022, tax losses totalling \u20ac29.8 million
(2021: \u20ac27.7 million) were not recognised in the UK, US,
Hong Kong and Singapore since it is not considered
probable, at this moment, that these deferred tax assets
can be used to offset future taxable income.
The majority of the net deferred tax asset is expected to be
recovered or settled after more than twelve months.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-659": {
"value": "Other current assets and disposal groups held for sale
Other current assets
The increase in prepayments mainly relates to deferred charges in Technologies S.A.S.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-660": {
"value": "Other current assets and disposal groups held for sale
Other current assets
The increase in prepayments mainly relates to deferred charges in Technologies S.A.S.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-661": {
"value": "Other current assets and disposal groups held for sale
Other current assets
The increase in prepayments mainly relates to deferred charges in Technologies S.A.S.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-662": {
"value": "Derivatives financial instruments
The Group may use derivative instruments to manage
financial risks relating to its financial positions or risks
relating to its ongoing business operations. The Group\u2019s risk
management strategy and how it is applied to manage risk
is further explained in Note 37.
Derivatives designed as hedging instruments
Fair value hedge
Until 3 May 2022, the Group had three interest rate swap
agreements in place with a total notional amount of \u20ac500.0
million whereby the Group received an annual fixed interest
rate of 1% and paid a variable rate of six-month EURIBOR,
plus a weighted average spread of 0.3825%. The rate
applicable to the floating leg of the swap for the aggregated
notional amount of \u20ac500.0 million was -0.141%. The swaps
were being used to reduce the variability of the fair value of
the 1% fixed rate Bond (Senior Unsecured note #1)
attributable to the change in interest rate, allowing it to
transform the fixed rate exposure to floating rate.
There was an economic relationship between the hedged
item and the hedging instrument as the terms of the
interest rate swaps matched the terms of the fixed rate
Bond (i.e., notional amount, maturity, payment and reset
dates). The Group had established a hedge ratio of 1:1 for
the hedging relationships as the underlying risk of the
interest rate swap was identical to the hedged risk
component. To assess the hedge effectiveness, the Group
compared the changes in the fair value of the hedging
instrument against the changes in fair value of the hedged
item attributable to the hedged risk.
The hedge ineffectiveness could arise from:
\u25aaDifferent interest rate curve applied to discount the
hedged item and hedging instrument
\u25aaDifferences in timing of cash flows of the hedged
item and hedging instrument
\u25aaThe counterparties\u2019 credit risk differently
impacting the fair value movements of the hedging
instrument and hedged item
On 3 May 2022, the Group terminated its interest rate swap
agreements. On termination, the Group cash settled the
swap agreements at a carrying amount of \u20ac8.9 million and
the hedge relationship was discontinued. The accumulated
fair value adjustments of \u20ac7.7 million will be amortised over
the remaining term of the Senior Unsecured Note #1. As a
result, approximately \u20ac1.8 million was amortised during the
remainder of the year, reducing the amount of accumulated
fair value adjustments to \u20ac5.9 million as at 31 December
2022 (see Note 29).
The impact of respectively the hedging instrument and the
hedged item on the balance sheet immediately before
termination of the interest rate swap agreements was as
follows:
| | | | |
| | | Line item in the balance sheet | Change in fair value used for measuring ineffectiveness for the period |
| | | Derivative financial instruments | |
| | | | |
| | Accumulated fair value adjustments | Line item in the balance sheet | Change in fair value used for measuring ineffectiveness for the period |
| | | | |
The impact of respectively the hedging instrument and the hedged item on the balance sheet as at 31 December 2021 was as
follows:
| | | | |
| | | Line item in the balance sheet | Change in fair value used for measuring ineffectiveness for the period |
| | | Derivative financial instruments | |
| | | | |
| | Accumulated fair value adjustments | Line item in the balance sheet | Change in fair value used for measuring ineffectiveness for the period |
| | | | |
As the hedge was effective, no amounts for ineffectiveness
were recognised in \u2018hedging result\u2019 in the Statement of
Profit or Loss (2021: loss of \u20ac0.7 million)\u00a0 (see Note 13).
Borrowings
| | |
| | |
| | |
| | |
Senior Unsecured note #1 (a) | | |
| | |
| | |
| | |
| | |
Discount, premium and issue costs | | |
Amortisation discount, premium and issue costs | | |
| | |
| | |
| | |
| | |
| | |
| | |
Short-term investments are presented as cash and cash
equivalents if they have a maturity of three months or less
from the date of acquisition and are repayable with 24
hours\u2019 notice with no loss of interest. Cash and cash
equivalents included an amount of \u20ac47.6 million\u00a0 (2021:
\u20ac100.1 million) for the purpose of the settlement of power
purchases at Nord Pool.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-664": {
"value": "Shareholders\u2019 equity
Under the Articles of Association, the Company\u2019s authorised
share capital amounts to \u20ac200,000,001.60 and is divided into
125,000,000 Ordinary Shares and one Priority Share, each
with a nominal value of \u20ac1.60 per share. All of Euronext\u2019s
shares have been or will be created under Dutch law.
As of 31 December 2022, the Company\u2019s issued share
capital amounts to \u20ac171,370,070 and is divided into
107,106,294 Ordinary Shares. The Priority Share is currently
not outstanding. The fully paid ordinary shares carry one
vote per share and rights to dividends, if declared. The
Group\u2019s ability to declare dividends is limited to
distributable reserves as defined by Dutch law.
Number of shares outstanding:
| | |
| | |
| | |
| | |
Treasury shares as at 1 January | | |
| | |
| | |
From share-based payments vesting | | |
Treasury shares as at 31 December | | |
Outstanding as at 31 December | | |
In 2022:
| | | | |
| | Sell Euronext N.V. shares | | Total value transaction including commissions |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total as at 31 December 2022 | | | | |
(ii)Share Repurchase Programme
The Group has entered into a discretionary management
agreement with a bank to repurchase Euronext shares
within the limits of relevant laws and regulations (in
particular EC regulation 2273/2003) and the Group\u2019s articles
of association to cover the Group\u2019s outstanding obligations
resulting from employee shares plans for 2019, 2020, 2021
and 2022. The share repurchase programme aims to hedge
price risk arising for granted employee share plans. In 2022,
the Group repurchased no shares. In 2021, the Group
repurchased 350,000 shares for a total consideration of
\u20ac31.8 million.
The movement schedule for the reported years are as
follows:
In 2021:
| | | |
| | | Total value transaction including commissions |
| | | |
| | | |
| | | |
Total as at 31 December 2021 | | | |
In 2022:
| | | |
| | | Total value transaction including commissions |
| | | |
| | | |
| | | |
Total as at 31 December 2022 | | | |
(iii)Share-based payments vesting
In 2022, the Group delivered 146,098 shares with a cost of
\u20ac9.7 million to employees for whom share plans had vested
(2021: 154,836 shares with a cost of \u20ac8.9 million). This
movement is disclosed on the line \u2018Other\u2019 in the
Consolidated Statement of Changes in Equity.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-666": {
"value": "Dividend
On 18 May 2022, the Annual General Meeting of
shareholders voted for the adoption of the proposed \u20ac1.93
dividend per ordinary share, representing a 50% pay-out
ratio of net profit. On 25 May 2022, the dividend of \u20ac206.0
million was paid to the shareholders of Euronext N.V.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-667": {
"value": "1.93",
"decimals": 2,
"dimensions": {
"concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f-668": {
"value": "Earnings per Share (EPS)
Basic earnings per share is calculated by dividing the profit
for the period attributable to the shareholders of the
Company by the weighted average number of ordinary
shares outstanding during the period.
Diluted earnings per share is calculated by dividing the
profit for the period attributable to the shareholders of the
Company by the weighted average number of ordinary
shares outstanding during the period plus the weighted
average number of ordinary shares that would be issued on
conversion of all the dilutive potential ordinary shares into
ordinary shares.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-669": {
"value": "Earnings per Share (EPS)
Basic earnings per share is calculated by dividing the profit
for the period attributable to the shareholders of the
Company by the weighted average number of ordinary
shares outstanding during the period.
Diluted earnings per share is calculated by dividing the
profit for the period attributable to the shareholders of the
Company by the weighted average number of ordinary
shares outstanding during the period plus the weighted
average number of ordinary shares that would be issued on
conversion of all the dilutive potential ordinary shares into
ordinary shares.
The following table reflects the income and share data used
in the basic and diluted EPS calculations:
| | |
| | |
| | |
Profit attributable to the shareholders of the Company | | |
| | |
| | |
Weighted average number of ordinary shares for basic EPS (a) | | |
Effects of dilution from: | | |
| | |
Weighted average number of ordinary shares adjusted for the effect of dilution (a) | | |
(a) The weighted average number of shares takes into account the weighted average effect of changes in treasury shares during the year.
The impact of share plans is determined by the number of
shares that could have been acquired at fair value
(determined as the average quarterly market price of
Euronext\u2019s shares) based on the fair value (measured in
accordance with IFRS 2) of any services to be supplied to
Euronext in the future under these plans.
There have been no other transactions involving ordinary
shares or potential ordinary shares between the reporting
date and the date of authorisation of these financial
statements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-670": {
"value": "Borrowings
Extension of Revolving Credit Facility Agreement
On 12 October 2022, the Group executed its two-year
extension option to the revolving credit facility agreement
(RCF) of \u20ac600.0 million. The RCF allows the Group to apply
all amounts borrowed by it towards (i) general corporate
and/or working capital purposes of the Group, (ii)
satisfaction of the consideration payable for an acquisition
and/ or (iii) the payment of fees, costs and expense incurred
in relation to an acquisition. The revolving credit facility has
a remaining maturity of 5 years and bears an interest rate of
EURIBOR plus a margin dependent on rating. As per 31
December 2022, the facility remained undrawn.
In case of a downgrading event of Euronext, below BBB- or
equivalent by rating agencies, Euronext shall ensure that
the leverage ratio (Euronext total gross debt to EBITDA2) as
defined in the Revolving Credit Facility Agreement would not
be greater than 4x.
Liquidity risk
The Group would be exposed to a liquidity risk in the case
where its short-term liabilities become, at any date, higher
than its cash, cash equivalents, short-term financial
investments and available bank facilities and in the case
where the Group is not able to refinance this liquidity deficit,
for example, through new banking lines.
Cash, cash equivalents and short-term financial
investments are managed as a global treasury portfolio
invested in non-speculative financial instruments, readily
convertible to cash, such as bank balances, money market
funds, overnight deposits, term deposits and other money
market instruments, thus ensuring a very high liquidity of
the financial assets. The Group\u2019s policy is to ensure that
cash, cash equivalents and available bank facilities allow
the Group to repay its financial liabilities at all maturities,
even disregarding incoming cash flows generated by
operational activities, excluding the related party loans
granted by the Group\u2019s subsidiaries to its Parent.
The net position of current financial assets, financial
liabilities and available credit facilities, excluding working
capital items, as of 31 December, 2022 and 2021 is
described in the table below:
| | |
| | |
Cash cash equivalents and short term investments | | |
Available revolving credit facility (RCF) | | |
Financial debt (long term and short term borrowings) | | |
| | |
The Group has a \u20ac600 million revolving credit facility (2021:
\u20ac600 million) that can be used for general corporate or M&A
purposes (see Note 29). As of 31 December 2022, the Group
did not have any amounts drawn under the facility.
The Group reviews its liquidity and debt positions on an
ongoing basis, and subject to market conditions and
strategic considerations, may from time to time re-examine
the debt structure of its debt and modify the maturity profile
and the sources of financing. The Group is able to support
short term liquidity and operating needs through existing
cash balance and its strong ability to generate adequate
cash flow. The Group has generally access to debts
markets, including bank facilities, and may be able to obtain
additional debt or other sources of financing to finance its
strategic development, provided that its financial risk profile
allows it to do so.
The table below summarises the maturity profile of the
Group\u2019s financial liabilities based on contractual
undiscounted payments, including principal - and interest
amounts, expected throughout the life of the obligations:
| | | | |
| | Maturity between 1 and 5 years | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
commercial banks to manage intraday and overnight
liquidity.
In line with the investment policy and the regulatory
requirements, the Group\u2019s CCP has partially invested the
default funds and margin in government bonds, with an
average maturity of around 12 months as per 31 December
2022. Even though these financial assets are generally held
to maturity, a forced liquidation of the investment portfolio
could lead to losses and lack of required liquidity.
| | | | |
| | Maturity between 1\u00a0and 2 years | Maturity between 2\u00a0and 3 years | |
| | | | |
| | | | |
| | | | |
| | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-671": {
"value": "Provisions
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Additional provisions charged to income statement | | | | | | | |
| | | | | | | |
| | | | | | | |
Acquisition of subsidiary | | | | | | | |
Reclassifications and other | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Composition of provisions | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
scheme in Oslo, that gives employees compensation for a
change in their historical DB pension arrangements. The
decrease for the year mainly related to a release of
provision for interbank fees in Euronext Securities
Copenhagen.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-672": {
"value": "Provisions
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Additional provisions charged to income statement | | | | | | | |
| | | | | | | |
| | | | | | | |
Acquisition of subsidiary | | | | | | | |
Reclassifications and other | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Composition of provisions | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
scheme in Oslo, that gives employees compensation for a
change in their historical DB pension arrangements. The
decrease for the year mainly related to a release of
provision for interbank fees in Euronext Securities
Copenhagen.
Contingencies
The Group is involved in a number of legal proceedings that
have arisen in the ordinary course of our business. Other
than as discussed below, management does not expect
these pending or threatening legal proceedings to have a
significant effect on the Group\u2019s financial position or
profitability. The outcome of legal proceedings, however,
can be extremely difficult to predict and the final outcome
may be materially different from managements\u2019
expectation.
Euronext Amsterdam Pension Fund
In the court case between Euronext Amsterdam and
approximately 120 retired and/or former Euronext
Amsterdam employees, united in an association (\"VPGE\"),
the Higher Court ordered Euronext to restore the pension
reduction to the VPGE members and to pay for indexation of
the VPGE member\u2019s pensions on 28 July 2020. Euronext
lodged an appeal in Cassation before the Supreme Court on
23 October 2020.
On 29 October 2021, the Attorney General (\"Advocaat-
Generaal\") advised the Supreme Court to annul the decision
of the Higher Court and to reject the cross-appeal filed by
VPGE. On 23 September 2022, the Supreme Court has
overturned the verdict of the Higher Court. The Supreme
Court agreed with Euronext\u2019s position on all points raised.
In accordance with Dutch procedural rules, the case will
now be reverted back to the Higher Court that has to take
the final decision, taking into account the verdict of the
Supreme Court. The date of this hearing has not yet been
announced.
No provision has been booked in connection with this case.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-673": {
"value": "Trade and other payables
| | |
| | |
| | |
Social security and other taxes (excluding income tax) | | |
Employees' entitlements (a) | | |
| | |
| | |
| | |
(a)Amounts include salaries payable, bonus accruals, severance (signed contracts) and vacation accruals.
The carrying values of current trade and other payables are
reasonable approximations of their fair values. These
balances do not bear interest.
Trade payables included an impact of \u20ac116.3 million (2021:
\u20ac188.6 million) related to Nord Pool power purchases",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-674": {
"value": "Financial instruments
35.1Financial instruments by category
The financial instruments held by the Group are set out below.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The nature and composition of the CCP clearing business assets and liabilities are explained in the accounting policies section
in Note 3.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The Group\u2019s exposure to various risks associated with the
financial instruments is discussed in Note 37. The maximum
exposure to credit risk at the end of the reporting period is
the carrying amount of each class of financial assets
mentioned above.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-675": {
"value": "Financial instruments
35.1Financial instruments by category
The financial instruments held by the Group are set out below.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The nature and composition of the CCP clearing business assets and liabilities are explained in the accounting policies section
in Note 3.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The Group\u2019s exposure to various risks associated with the
financial instruments is discussed in Note 37. The maximum
exposure to credit risk at the end of the reporting period is
the carrying amount of each class of financial assets
mentioned above.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-676": {
"value": "Financial instruments
35.1Financial instruments by category
The financial instruments held by the Group are set out below.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The nature and composition of the CCP clearing business assets and liabilities are explained in the accounting policies section
in Note 3.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The Group\u2019s exposure to various risks associated with the
financial instruments is discussed in Note 37. The maximum
exposure to credit risk at the end of the reporting period is
the carrying amount of each class of financial assets
mentioned above.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialLiabilitiesHeldForTradingExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-677": {
"value": "Financial instruments
35.1Financial instruments by category
The financial instruments held by the Group are set out below.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The nature and composition of the CCP clearing business assets and liabilities are explained in the accounting policies section
in Note 3.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The Group\u2019s exposure to various risks associated with the
financial instruments is discussed in Note 37. The maximum
exposure to credit risk at the end of the reporting period is
the carrying amount of each class of financial assets
mentioned above.
35.2 Fair value measurement
35.2.1Fair value hierarchy
The table below analyses financial instrument carried at fair
value, by valuation method. The different levels have been
defined as follows:
\u25aaLevel 1: quoted prices in active markets for
identical assets or liabilities
\u25aaLevel 2: inputs that are based on observable
market data, directly or indirectly
\u25aaLevel 3: unobservable inputs
| | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
Other derivative instruments (a) | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac19k in Nord Pool | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Hedging derivatives - interest rate swaps (a) | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac12k in Nord Pool | | | |
The Group\u2019s policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period. There were no transfers between the
levels of fair value hierarchy in 2022 and 2021. The Group
did not measure any financial assets or financial liabilities
at fair value on a non-recurring basis as at 31 December
2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-678": {
"value": "Financial instruments
35.1Financial instruments by category
The financial instruments held by the Group are set out below.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The nature and composition of the CCP clearing business assets and liabilities are explained in the accounting policies section
in Note 3.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The Group\u2019s exposure to various risks associated with the
financial instruments is discussed in Note 37. The maximum
exposure to credit risk at the end of the reporting period is
the carrying amount of each class of financial assets
mentioned above.
Offsetting within clearing member balances
CCP clearing business financial assets and liabilities are
offset and only the net amount is presented in the
consolidated balance sheet when there is a legally
enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or to realise the
asset and settle the liability simultaneously.
The following table shows the offsetting breakdown by
products:
| | | |
| As at\u00a0 31 December 2022 |
| | | |
|
| | | |
Derivative financial asset | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
Derivative financial liabilities | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| | | |
Derivative financial asset | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
Derivative financial liabilities | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-679": {
"value": "Financial instruments
35.1Financial instruments by category
The financial instruments held by the Group are set out below.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The nature and composition of the CCP clearing business assets and liabilities are explained in the accounting policies section
in Note 3.
| | | | | |
| |
| | | | | |
| | | | | |
| | | | | |
CCP trading assets at fair value | | | | | |
Assets under repurchase transactions | | | | | |
Other financial assets traded but not yet settled | | | | | |
Debt instruments at fair value through OCI | | | | | |
Other instruments held at fair value | | | | | |
Other receivables from clearing members | | | | | |
Cash and cash equivalents of clearing members | | | | | |
Total financial assets of the CCP clearing business | | | | | |
| | | | | |
Financial assets at fair value through OCI | | | | | |
Financial assets at amortised cost | | | | | |
Trade and other receivables | | | | | |
Derivative financial instruments | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
CCP trading liabilities at fair value | | | | | |
Liabilities under repurchase transactions | | | | | |
Other financial liabilities traded but not yet settled | | | | | |
Other payables to clearing members | | | | | |
Total financial liabilities of the CCP clearing business | | | | | |
| | | | | |
| | | | | |
Lease liabilities (non-current) | | | | | |
| | | | | |
Derivative financial instruments | | | | | |
Lease liabilities (current) | | | | | |
Other current financial liabilities | | | | | |
| | | | | |
| | | | | |
The Group\u2019s exposure to various risks associated with the
financial instruments is discussed in Note 37. The maximum
exposure to credit risk at the end of the reporting period is
the carrying amount of each class of financial assets
mentioned above.
35.2 Fair value measurement
35.2.1Fair value hierarchy
The table below analyses financial instrument carried at fair
value, by valuation method. The different levels have been
defined as follows:
\u25aaLevel 1: quoted prices in active markets for
identical assets or liabilities
\u25aaLevel 2: inputs that are based on observable
market data, directly or indirectly
\u25aaLevel 3: unobservable inputs
| | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
Other derivative instruments (a) | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac19k in Nord Pool | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Hedging derivatives - interest rate swaps (a) | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac12k in Nord Pool | | | |
The Group\u2019s policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period. There were no transfers between the
levels of fair value hierarchy in 2022 and 2021. The Group
did not measure any financial assets or financial liabilities
at fair value on a non-recurring basis as at 31 December
2022.
35.2.2.Fair value measurements using quoted prices in
active markets for identical assets or liabilities (level 1)
The quoted debt instruments primarily relate to
investments in listed bonds held by Euronext Securities
Copenhagen and Euronext Clearing's own fund investments
in government bonds.
The quoted debt instruments of CCP clearing business
represent an investment portfolio in predominantly
government bonds funded by the margins and default funds
deposited by members of the CCP clearing business.
The derivative instruments of CCP clearing business
comprise open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The other instruments
of CCP clearing business include clearing member trading
balances for equity and debt instruments that are marked to
market on a daily basis.
Fair values of the instruments mentioned above are
determined by reference to published price quotations in an
active market.
35.2.3.Fair value measurements using observable
market data, directly or indirectly (level 2)
The fair value of interest rate swaps was calculated as the
present value of the estimated future net cash flows based
on observable yield curves at the reporting date.
35.2.4.Fair value measurements using unobservable
inputs (level 3)
The following table presents the changes in level 3 instruments for the period ended 31 December 2022:
| | | | |
| Unlisted equity securities | Contingent consideration payables | | |
|
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
2021:
| | | | | |
| Fair value at 31 December 2020 | | Range of inputs (probability-weighted average) | Relationship of unobservable inputs to fair value |
| | | | | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
Contingent consideration payables and redemption liability
The contingent consideration payable of \u20ac0.5 million related
to Black Woodpecker Software was paid in full in 2021.
35.2.5.Fair values of other financial instruments
The Group also has a number of financial instruments which
are not measured at fair value in the balance sheet. For
these instruments the fair values approximate their
carrying amounts.
As per 31 December 2022, trade and other receivables
included \u20ac70.3 million (2021: \u20ac116.5 million) of Nord Pool
power sales positions and trade and other payables
included \u20ac116.3 million (2021: \u20ac188.6 million) of Nord Pool
power purchases positions.
35.3.Net Treasury Income through CCP business
by classification
For the year ended 31 December 2022, net treasury income
through CCP clearing business is earned from instruments
held at amortised cost or fair value as follows:
\u25aaA total \u20ac55.3 million gain was earned from
financial assets and financial liabilities held at
amortised cost (\u20ac28.6 million from interest income
on liabilities held at amortised cost and \u20ac26.7
million on interest expenses on assets held at
amortized cost). In 2021, a net \u20ac43.6 million was
earned from financial assets and financial
liabilities held at amortised cost ( \u20ac93.1 million
income and \u20ac49.5 million expense).
\u25aaA net \u20ac11.3 million loss (2021: \u20ac8.2 million loss)
was incurred from assets held at fair value (\u20ac32.3
million income and \u20ac43.6 million expense (2021:
\u20ac30.1 million income and \u20ac38.3 million expense)).
\u25aaIn addition, a revaluation loss of \u20ac48.9 million was
incurred, following a one\u2013off partial disposal of the
debt investment portfolio held at Euronext
Clearing. The Group recycled the related loss from
Other Comprehensive Income to net treasury
income.
35.4.Offsetting within clearing member balances
CCP clearing business financial assets and liabilities are
offset and only the net amount is presented in the
consolidated balance sheet when there is a legally
enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or to realise the
asset and settle the liability simultaneously.
The following table shows the offsetting breakdown by
products:
| | | |
| As at\u00a0 31 December 2022 |
| | | |
|
| | | |
Derivative financial asset | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
Derivative financial liabilities | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| | | |
Derivative financial asset | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
Derivative financial liabilities | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-680": {
"value": "Financial instrumentsOffsetting within clearing member balances
CCP clearing business financial assets and liabilities are
offset and only the net amount is presented in the
consolidated balance sheet when there is a legally
enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or to realise the
asset and settle the liability simultaneously.
The following table shows the offsetting breakdown by
products:
| | | |
| As at\u00a0 31 December 2022 |
| | | |
|
| | | |
Derivative financial asset | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
Derivative financial liabilities | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| | | |
Derivative financial asset | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
Derivative financial liabilities | | | |
Reverse repurchase agreements | | | |
| | | |
| | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-681": {
"value": "Fair value measurement
35.2.1Fair value hierarchy
The table below analyses financial instrument carried at fair
value, by valuation method. The different levels have been
defined as follows:
\u25aaLevel 1: quoted prices in active markets for
identical assets or liabilities
\u25aaLevel 2: inputs that are based on observable
market data, directly or indirectly
\u25aaLevel 3: unobservable inputs
| | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
Other derivative instruments (a) | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac19k in Nord Pool | | | |
| | | | |
| | | | |
| | | | |
Financial assets at FVOCI | | | | |
Unlisted equity securities | | | | |
| | | | |
Quoted debt instruments of CCP clearing business | | | | |
| | | | |
Hedging derivatives - interest rate swaps (a) | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
| | | | |
Financial liabilities at FVPL | | | | |
Derivative instruments of CCP clearing business | | | | |
Other instruments of CCP clearing business | | | | |
| | | | |
(a) Including foreign exchange spot transactions of \u20ac12k in Nord Pool | | | |
The Group\u2019s policy is to recognise transfers into and
transfers out of fair value hierarchy levels at the end of the
reporting period. There were no transfers between the
levels of fair value hierarchy in 2022 and 2021. The Group
did not measure any financial assets or financial liabilities
at fair value on a non-recurring basis as at 31 December
2022.
35.2.2.Fair value measurements using quoted prices in
active markets for identical assets or liabilities (level 1)
The quoted debt instruments primarily relate to
investments in listed bonds held by Euronext Securities
Copenhagen and Euronext Clearing's own fund investments
in government bonds.
The quoted debt instruments of CCP clearing business
represent an investment portfolio in predominantly
government bonds funded by the margins and default funds
deposited by members of the CCP clearing business.
The derivative instruments of CCP clearing business
comprise open transactions not settled at the reporting date
on the derivatives market in which Euronext Clearing
operates as a central counterparty. The other instruments
of CCP clearing business include clearing member trading
balances for equity and debt instruments that are marked to
market on a daily basis.
Fair values of the instruments mentioned above are
determined by reference to published price quotations in an
active market.
35.2.3.Fair value measurements using observable
market data, directly or indirectly (level 2)
The fair value of interest rate swaps was calculated as the
present value of the estimated future net cash flows based
on observable yield curves at the reporting date.
35.2.4.Fair value measurements using unobservable
inputs (level 3)
The following table presents the changes in level 3 instruments for the period ended 31 December 2022:
| | | | |
| Unlisted equity securities | Contingent consideration payables | | |
|
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
| | | | |
Revaluations recognised in OCI | | | | |
Revaluations recognised in P&L | | | | |
| | | | |
| | | | |
Acquisitions / (incurrences) | | | | |
Exchange differences and other | | | | |
| | | | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
2021:
| | | | | |
| Fair value at 31 December 2020 | | Range of inputs (probability-weighted average) | Relationship of unobservable inputs to fair value |
| | | | | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
| | | | | |
| | | | | |
| | | |
| | Expected dividend growth rate | |
*) There were no significant inter-relationships between unobservable inputs that materially affect fair value
Contingent consideration payables and redemption liability
The contingent consideration payable of \u20ac0.5 million related
to Black Woodpecker Software was paid in full in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-682": {
"value": "Liquidity risk
| | | | |
| | Maturity between 1\u00a0and 2 years | Maturity between 2\u00a0and 3 years | |
| | | | |
| | | | |
| | | | |
| | | | |
Interest rate risk
Substantially all interest-bearing financial assets and
liabilities of the Group are either based on floating rates or
based on fixed rates with an interest term of less than one
year, except for the fixed rated Bonds #1 to #5, which have
maturities between 5 and 20 years (see Note 29). The Group
entered into interest rate swap contracts in order to hedge
the interest rate risk inherent to the fixed rate Bond #1. As
a result, the Group is exposed to fair value risk affecting
fixed-rate financial assets and liabilities through its
remaining fixed rate Bonds #2 to #5. On 3 May 2022, the
Group terminated its fixed-to-floating interest rate swap
agreements (at an aggregated notional of \u20ac500 million) in
relation to the fair value hedge of the \u20ac500 million Bond #1
(see Note 23).
As at 31 December 2022 and 2021 the interest rate exposure
of the Company was as follows:
| | | | | | | | | | |
| | | | | |
Type of rate and maturity In thousands of euro | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year | Floating rate with maturity < 1 year | Floating rate with maturity > 1 year |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | |
Type of rate and maturity In thousands of euro | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year | Fixed rate with maturity < 1 year | Fixed rate with maturity > 1 year |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Interest bearing financial assets (a) | | | | | | | | | | |
Interest bearing financial liabilities | | | | | | | | | | |
Net position before hedging | | | | | | | | | | |
Net position after hedging | | | | | | | | | | |
| | | | | | | | | | |
currency risk sensitivity inherent to the Group exposure to
that currency is deemed to be irrelevant.
Interest rate risk - CCP clearing business
The Group\u2019s CCP faces interest rate exposure through the
impact of changes in the reference rates used to calculate
member liabilities versus the yields achieved through their
predominantly secured investment activities.
In the Group\u2019s CCP, interest bearing assets are generally
invested in secured instruments or structures and for a
longer term than interest bearing liabilities, whose interest
rate is reset daily. This makes investment revenue
vulnerable to volatility in overnight rates and shifts in
spreads between overnight and term rates. On daily basis
the interest rate risk associated to investments is monitored
via capital requirements.
The Group's CCP has an investment policy, mitigating
market risks. The Group's CCP investments have an
average duration of around one year and are generally held
until maturity. Losses will not materialise unless the
investment portfolio is liquidated before maturity or in an
event of portfolio rebalancing before maturity. In case of a
forced liquidation of the CCP's financial investment portfolio
before maturity to provide necessary liquidity, the CCP may
face higher interest rate exposure on its financial
investment portfolio. The interest rate exposure of the
investment portfolio is predominantly at fixed rates (only a
negligible part is at floating rates) at the amounts and
maturities as disclosed in Note 37.1. As per 31 December
2022, an increase/decrease of the rate by 100 basis points
would have an increasing/decreasing impact on the
investment portfolio market value of \u20ac3.8 million or 0.20%
(2021: \u20ac47 million or 1.03%).
37.3Currency risk
Foreign currency translation risk:
The Group\u2019s net assets are exposed to the foreign currency
risk arising from the translation of assets and liabilities of
subsidiaries with functional currencies other than the euro.
The following table summarises the assets and liabilities
recorded in respectively GBP, USD and NOK functional
currency and the related impact of a 10% in/decrease in the
currency exchange rate on balance sheet:
| | |
| | |
| | |
| | |
| | |
Net currency position after hedge | | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
| | |
| | |
| | |
| | |
| | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
| | |
| | |
| | |
| | |
| | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
risk related to its net investments in foreign currency.
However, the Group may use derivatives instruments
designated as hedge of net investment or foreign
denominated debt to manage its net Investment exposures.
The decision to hedge the exposure is considered on a case
by case basis since the Group is generally exposed to major,
well established and liquid currencies. The Group would, by
the same token, hedge transaction risk arising from cash
flows paid or received in a currency different from the
functional currency of the group contracting entity on a case
by case basis.
37.4.Equity Market risk
The Group\u2019s investment in publicly traded equity securities
was insignificant in 2022 and 2021. The Group's investments
in non-publicly traded equity securities are disclosed in
Note 20.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-683": {
"value": "Currency risk
Foreign currency translation risk:
The Group\u2019s net assets are exposed to the foreign currency
risk arising from the translation of assets and liabilities of
subsidiaries with functional currencies other than the euro.
The following table summarises the assets and liabilities
recorded in respectively GBP, USD and NOK functional
currency and the related impact of a 10% in/decrease in the
currency exchange rate on balance sheet:
| | |
| | |
| | |
| | |
| | |
Net currency position after hedge | | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
| | |
| | |
| | |
| | |
| | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
| | |
| | |
| | |
| | |
| | |
Absolute impact on equity of 10% in/decrease in the currency exchange rate | | |
(a) The CCP other financial assets are included in the line 'Debt instruments at fair value through other comprehensive income' in the table at Note
35.1.
(b) The total clearing member cash is included in the line 'Cash and cash equivalents of clearing members'' in the table at Note 35.1.
",
"dimensions": {
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"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-685": {
"value": "Credit risk
Credit risk - CCP clearing business
In its role as CCP clearer to financial market participants,
the Group\u2019s CCP guarantees final settlement of transactions
acting as buyer towards each seller and as seller towards
each buyer. It manages substantial credit risks as part of its
operations including unmatched risk positions that might
arise from the default of a party to a cleared transaction.
Clearing membership selection is based upon supervisory
capital, technical and organisational criteria. Each member
must pay margins, computed and collected at least daily, to
cover the exposures and theoretical costs which the CCP
might incur in order to close out open positions in the event
of the member\u2019s default. Margins are calculated using
established and internationally acknowledged risk models
and are debited from participants\u2019 accounts through central
bank accounts and via commercial bank payment systems.
Minimum levels of cash collateral are required. Non-cash
collateral is revalued daily but the members retain title of
the asset and the Group only has a claim on these assets in
the event of a default by the member.
Clearing members also contribute to default funds
managed by the CCP to guarantee the integrity of the
markets in the event of multiple defaults in extreme market
circumstances. Amounts are determined on the basis of the
results of periodic stress testing examined by the risk
committees of the CCP. Furthermore, the Group\u2019s CCP
reinforces its capital position to meet the most stringent
relevant regulatory requirements applicable to it, including
holding a minimum amount of dedicated own resources to
further underpin the protective credit risk framework in the
event of a significant market stress event or participant
failure.
An analysis of the aggregate clearing member contributions
of margin and default funds across the CCP is shown below:
| | |
| | |
|
| | |
| | |
| | |
Margin received by title transfer | | |
| | |
Total on balance sheet collateral (a) | | |
Total member collateral pledged | | |
(a)The counterbalance of the total on balance sheet collateral is included in the line 'other payables to clearing members' in the table at Note
35.1
",
"dimensions": {
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-686": {
"value": "Capital management
The Group\u2019s objectives when managing capital are to
safeguard the Group\u2019s ability to continue as a going
concern, to comply with regulatory requirements and to
maintain an optimal capital structure to reduce the cost of
capital and provide return to shareholders. Certain entities
of the Group are regulated as Exchanges, as Central
Securities Depository (CSD) or as Clearing House and are
subject to certain statutory regulatory requirements based
on their local statutory financial statements and risks. In
general, the financial ratios of the Group\u2019s subsidiaries
significantly exceed the regulatory requirements and they
maintain a safety cushion in order to avoid any concern from
the regulators.
Euronext N.V. must comply with prudential requirements,
as a result of an agreement reached with the Dutch Finance
Ministry in May 2016, which are set forth in three pillars:
\u25a0A minimum Total Equity level equal of at least \u20ac
250 million; and
\u25a0The Group shall take care of stable financing.
Long-term assets of the Group will be financed
with shareholders equity and long term liabilities,
to the satisfaction of the AFM; and
\u25a0The Group shall have a positive regulatory capital
on a consolidated basis. The regulatory capital is
calculated according to the following formula: the
paid up share capital plus the freely available
reserves less the items listed in section 36 of
Regulation (EU) no. 575/201. In deviation to
mentioned formula, the value of the intangible
fixed assets in connection with Mergers and
Acquisitions will be deducted in 10 (default) or
more (20 for Oslo B\u00f8rs ASA) equal instalments
(grow in period) from the regulatory capital.
Considering a consistent dividend policy, the grow
in period can be extended if the P/E ratio would
exceed 10 times. If the grow in period and the
related dividend policy provide for a negative a
regulatory capital for a limited number of years of
the gown-in period, then this fact will not prevent
the execution of the consistent and prudent
dividend policy\u00a0 of the Group in those years.
As per 31 December 2022, Euronext N.V. complied with
these requirements.
Euronext Amsterdam N.V. is subject to a minimum statutory
capital requirement of \u20ac730 thousand, shall have a
regulatory capital in the amount of 50% of the direct fixed
cost of Euronext Amsterdam N.V. during the preceding
financial year and in addition the cash and cash equivalents
shall be higher than the required minimum regulatory
capital to operate as an exchange in the Netherlands. As per
31 December 2022, Euronext Amsterdam N.V. was in
compliance with these requirements.
Euronext Brussels SA/NV shall maintain adequate financial
resources at its disposal to ensure orderly functioning of the
market. The law mentions that FSMA may, by a regulation,
set financial ratios for market operators and determine
which financial information they are required to provide. At
this date, no quantitative requirements has ever been set
either by a regulation or by the Financial Authority FSMA.
Euronext Dublin shall at all time hold a minimum level of
capital based on the Basic Capital Requirement and the
Systematic Capital Add-on and maintain liquid financial
assets at least equal to the sum of these two amounts of
required capital. As per 31 December 2022, Euronext Dublin
complied with these requirements.
Euronext Lisbon S.A. shall maintain minimum statutory
share capital of \u20ac3.0 million and shall maintain minimum
statutory equity of \u20ac6.0 million. In addition, Euronext
Lisbon's liabilities must not exceed its own funds (basically
the amount of equity). As per 31 December 2022, Euronext
Lisbon\u00a0 complied with these requirements.
Euronext Paris S.A. shall maintain statutory regulatory
equity at no less than 50% of its yearly expenses and a
solvency ratio on operational risks at no less than 8%. As
per 31 December 2022, Euronext Paris S.A. complied with
these requirements.
Interbolsa S.A. shall maintain minimum statutory share
capital of \u20ac2.75 million and shall maintain minimum
statutory equity of \u20ac5.5 million. In addition, as a CSD,
Interbolsa S.A. shall hold an amount of capital, including
retained earnings and reserves, higher or equal to the sum
of CSD\u2019S capital requirements. As per 31 December 2022,
Interbolsa S.A. complied with these requirements.
VPS ASA shall comply with the capital requirement
regulation for CSDs. As such, it shall hold an amount of
capital, including retained earnings and reserves, higher or
equal to the sum of CSD's capital requirements. As per 31
December 2022, VPS ASA complied with this requirement.
Oslo B\u00f8rs ASA must maintain an adequate level of primary
capital. In this context, primary capital comprises equity
after deducting items including intangible assets such as
system development costs and deferred tax assets.
Although the Norwegian legislation does not stipulate any
specific quantitative level of capital requirements, Oslo B\u00f8rs
ASA maintains at all times sufficient liquid assets and
capital resources. As per 31 December 2022, Oslo B\u00f8rs ASA
complied with these requirements.
Euronext Markets Singapore Pte Ltd. shall maintain a
minimum regulatory capital requirement (a) 18% of its
annual operating revenue, (b) 50% of its annual operating
costs, and (c) $500,000 restricted cash deposit. As per 31
December 2022, Euronext Markets Singapore Pte Ltd.
complied with these requirements.
VP Securities AS shall comply with the capital requirement
regulation for CSDs. As such, it shall hold an amount of
capital, including retained earnings and reserves, higher or
equal to the sum of CSD's capital requirements. As per 31
December 2022, VP Securities AS complied with this
requirement.
Borsa Italiana S.p.A\u00a0 must comply with Article 3 of the
Italian CONSOB Markets Regulation. As such, it shall
maintain 1) a net equity (share capital, reserves and
undistributed profits) at least equal to operating costs
necessary to cover six months based on the latest audited
Financial statements and 2) an amount of liquid assets
sufficient to cover estimated potential losses in stressed but
plausible market conditions calculated using a risk-based
approach which considers operational risks as well as other
risks to which the regulated operator might be exposed to.
As per 31 December 20212 Borsa Italiana S.p.A. complied
with these requirements.
Monte Titoli S.p.A. shall comply with article 47 of the CSDR
regulation. As such, it shall hold capital (inclusive of
undistributed profits and \u201cTotal Capital Requirement\u201d
reserves) which, at any time, is sufficient to guarantee that
the CSD is adequately protected against operational, legal,
custody, investment and commercial risks, so that it may
continue to provide services; ensure a liquidation or an
orderly restructuring of the activities of the CSD in an
adequate period of at least 6 months, in the context of a
series of stress scenarios. The capital thus identified must
be invested in secured assets in order to comply with the
provisions of Article 46 paragraph 4 of the CSDR Regulation.\u00a0
As per 31 December 2022, Monte Titoli S.p.A. complied with
this requirement.
Cassa di Compensazione e Garanzia S.p.A. must comply
with Article 2 of EMIR based on which it must have capital
(including undistributed profits and reserves) which at all
times is sufficient to cover the total exposure to the
following risks:
\u25aarisks relating to the liquidation or restructuring of
assets,
\u25aacredit, counterparty's and market risks,
\u25aaoperational and legal risks, and
\u25aabusiness risks.
The capital thus identified must be invested in secured
assets for the purpose of complying with Article 47 of EMIR.
As per 31 December 2022, Cassa di Compensazione e
Garanzia S.p.A. complied with these requirements.
MTS S.p.A.\u00a0 must comply with Article 3 of the Italian
CONSOB Markets Regulation. As such, it shall maintain 1) a
net equity (share capital, reserves and undistributed profits)
at least equal to operating costs necessary to cover six
months based on the latest audited Financial statements
and 2) an amount of liquid assets sufficient to cover
estimated potential losses in stressed but plausible market
conditions calculated using a risk-based approach which
considers operational risks as well as other risks to which
the regulated operator might be exposed to. As per 31
December 2022, MTS S.p.A. complied with these
requirements.
",
"dimensions": {
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"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-687": {
"value": "Changes in liabilities arising from financing
activities
The changes in liabilities arising from the Group\u2019s financing
activities in 2022 and 2021 were as follows:
| | | | | |
| Borrowings due within 1 year | Borrowings due after 1 year | | | Total liabilities from financing activity |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Amortisation and transfer of issue costs | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Amortisation and transfer of issue costs | | | | | |
| | | | | |
| | | | | |
| | | | | |
The line \u2018Other\u2019 includes the effect of reclassification of non-current portion of lease liabilities to current due to the passage of
time.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f-688": {
"value": "Events after the reporting period
The significant events that occurred between 31 December
2022 and the date of this report that could have a material
impact on the economic decisions made based on these
financial statements are listed below:
Termination of Derivatives Clearing Contract with LCH SA
During the first weeks of January 2023, Euronext local
boards decided to terminate the Derivatives Clearing
Agreement with LCH SA. On 16 January 2023, a termination
notice was sent to LCH SA.
The event creates a present obligation based on conditions
that arose after the end of the reporting period and
therefore qualifies as a non-adjusting subsequent event.
Therefore, the Group will recognise a provision for the
termination fees and migration fees (including indexation)
indicated in the agreement of approximately \u20ac36.0 million,
in the first quarter of 2023. The amount will be due in 2024.
Following the notification of the early termination of the
Agreement, LCH Group has the option to buy back
Euronext's 11.1% stake in LCH SA. Further communication
related to the stake owned by Euronext in LCH SA will be
made when appropriate.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
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"entity": "scheme:724500QJ4QSZ3H9QU415",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}