WORLDLINE_REGISTRATION_DOCUMENT_2017

E

Financials Financial review [GRI 102-7]

E.3.1.2

Operatingmargin before depreciation and amortization

Operating margin before depreciation and amortization (OMDA) represents the underlying operational performance of the current business and is analysed in the operational review.

12 months ended December 31, 2016

12 months ended December 31, 2017

Variation

(In € million)

Operating margin

253.1

196.6

56.4 35.9 -6.2 -13.1

+ Depreciation of fixed assets

90.5

54.6

+ Net book value of assets sold/written off +/- Net charge/(release) of pension provisions

1.1

7.3 3.0

-10.1

+/- Net charge/(release) of provisions

0.8

-2.8

3.6

OMDA

335.4

258.7

76.6

E.3.1.3

Other operating income and expenses

Other operating income and expenses relate to income and expenses that are unusual and infrequent. They represent a net cost € 67.6 million in 2017. The following table presents this amount by nature:

12 months ended December 31, 2016

12 months ended December 31, 2017

(In € million)

Staff reorganization

-4.9 -4.3

-4.5 -4.5 -9.9 -6.8 -6.1 45.0

Rationalization and associated costs Integration and acquisition costs

-25.6

Equity based compensation

-7.9

Customer relationships and patents amortization

-14.2 -10.8 -67.6

Other items

Total

13.3

Staff reorganization expenses of € 4.9 million increased by € 0.4 million compared to last year and correspond mainly to the restructuring costs induced following the acquisition of Equens and Paysquare, and are also related to the adaptation of the organization mainly in France and in Belgium. The € 4.3 million of rationalization and associated costs resulted mainly from costs linked to the continuation of the TEAM program and to the reorganization of office premises in France and in Belgium. Those costs have decreased by € 0.2 million compared to 2016. Integration and acquisition costs reached € 25.6 million (increase of €+15.7 million compared to the prior period) and correspond to the costs related to the execution of the Equens and Paysquare post-acquisition integration costs. They also included the costs linked to the acquisitions of First Data Baltics, Digital River World Payment and MRL Posnet for a total amount of €2.7 million. The 2017 customer relationships amortization of € 14.2 million corresponds to:

€ 10.0 million of Equens and Paysquare customer ● relationships; € 2.6 million of Cataps (KB Smartpay) customer ● relationships; € 0.7 million related to the portion of the consideration paid ● allocated to the value of the customer relationships and backlog brought by Quality Equipements and Siemens IT Solutions & Services; € 0.4 million of MRL Posnet customer relationships and ● technologies amortization starting November 1, 2017 € 0.3 million of First Data Baltics customer relationships ● amortization starting October 1, 2017 € 0.2 million of Digital River World Payment customer ● relationships and technologies amortization starting November 1, 2017

The €-10.8 million of other items mainly consisted on non-recurring costs. In 2016 the other items included the gain on the Visa Share disposal for € 51.2 million.

188

Worldline 2017 Registration Document