WORLDLINE_REGISTRATION_DOCUMENT_2017

Financials Introduction

From App to Product portfolio: Structure our product portfolio through better management, pricing calculation and identification of new solutions to be included in the portfolio. Roll out portfolio management across all Worldline activities to push further their usability, to avoid duplication of solutions and accelerate the sales process towards customers. In addition to the cost cutting initiatives, TEAM also includes a sales effectiveness initiative designed to enhance sales by increasing the amount of time spent by sales teams on pure marketing and client-facing activities, establishing commercial action plans to ensure clear sales priorities, address clients’ needs, and pursue cross-selling opportunities to bring a fuller range of Worldline products to its existing clients, and incentivizing Worldline’s sales force by further optimizing variable compensation schemes.

these services, see Section E.8, “Related party Transaction” and Note 27 to the Consolidated Financial Statements. The principal categories of expenses billed to the Group by Atos include: Rental costs. The Group pays Atos for its share of the rental cost of shared facilities. This charge is recorded under “Operating Expenses” under the line item “rent and lease expense”; Subcontracting costs. Atos rebills the Group, at a price based on Atos’ actual costs plus an agreed margin, for the cost of Atos personnel that provide IT services and maintenance services to the Group. These expenses are recorded under the line item “subcontracting costs”; General and administrative expenses. Atos also provides the Group with support services for corporate office functions, including accounting and HR related services. These costs are recorded under the line item “Operating Expenses” under “other charges”; Financing charges. The Atos group provides the Group with funding on an arm’s length basis. These costs are recorded under “financial expenses”.

Atos Services

Atos provides the Group with a number of support and IT services on an arm’s length basis. The amount paid to Atos for these services was € 108.4 million and 104.8 million in 2017 and 2016 respectively. For a description of the agreements related to

Summary Description of Principal Income Statement Line Items

Revenue

Operating Expenses

The Group generates revenue from its three global business lines as described below.

The Group’s operating expenses include the following categories of expenses: Subcontracting costs direct. Subcontracting costs consist of the cost for subcontracted services, roughly half of which is typically IT subcontracting, mostly on a time & materials basis. The other half comes from other outsourced services, which mainly include non-IT services such as printing, mailing and other statement preparation activity and ATM services. The level of these expenses in any given period is mainly driven by the number of projects in the project phase, some aspects of which the Group may decide to outsource rather than handle in-house, and customer volumes, which drive costs that are dependent on volume, such as printing, mailing and statement activity.

E

Personnel Expenses

The Group’s personnel expenses primarily consist of wages and salaries, social security charges, taxes, training and profit sharing expense and differences between pension contributions and net pension expenses. These charges are generally driven by the average number of employees and average compensation levels. Over the period under review, these charges have been reduced from 41.0% of revenue in 2016 to 38.4% of revenue in 2017.

175

Worldline 2017 Registration Document