WORLDLINE_REGISTRATION_DOCUMENT_2017

E

Financials Financial review [GRI 102-7]

Cash flow

E.3.2

12 months ended December 31, 2016

12 months ended December 31, 2017

(In € million)

Operating Margin before Depreciation and Amortization (OMDA)

335.4 -107.0

258.7

Capital expenditures

-85.3 33.4

Change in working capital requirement

33.8

Cash from operation

262.2

206.8

Taxes paid

-44.1

-39.1

Net cost of financial debt paid

-1.1 -6.5 -4.1

-0.6 -5.2 -4.1 -9.9 -1.3

Reorganization in other operating income

Rationalization & associated costs in other operating income

Integration and acquisition costs Net Long term financial investments

-20.1

-2.0 -8.4

Other changes* Free Cash Flow

-10.1

176.0 -220.1

136.5 -111.0

Net material (acquisitions)/disposals

Capital increase/(decrease)

10.7

7.5

Proceeds from the disposal of the Visa Share

0.0

35.6

Change in net cash/(debt) Opening net cash/(debt)

-33.5 347.7

68.6

276.0

Change in net cash/(debt)

-33.5

68.6

Foreign exchange rate fluctuation on net cash/(debt)

-5.1

3.0

Closing net cash/(debt) 347.7 Note: Figures have been restated from change in Worldline’s intermediation activities presentation (effect of €-47m on 2016 opening net cash, €-3,9m on 2016 FCF, and €-51m on 2017 opening net cash) detailed in “Accounting rules and policies”. “Other changes” include other operating income with cash impact (excluding reorganization, rationalization and associated costs, integration costs * and acquisition costs), dividends paid to non-controlling interests and other financial items with cash impact. 309.1

Free cash flow represented by the change in net cash or net debt, excluding equity changes, dividends paid to shareholders, disposal of Visa Share, purchase of shares, impact of foreign exchange rate fluctuation on opening net cash balance, and net acquisitions and disposals, reached € 176.0 million compared to € 136.5 million in 2016 corresponding to an increase of +28.9%. Cash From Operations amounted to € 262.2 million and increased by € 55.4 million compared to last year, including the following items: OMDA (€+76.7 million); ● Higher capital expenditures (€-21.7 million); ● Higher improvement in change in working capital ● requirement (€+0.4 million). OMDA of € 335.4 million, representing an increase of €+76.7 million compared to December 2016, reached 21.0% of revenues against 19.8% of revenues in 2016.

Capital expenditures amounted to € 107.0 million or 6.7% of revenue slightly above the level of 2016 at 6.5%. Main part is related to investment in software platforms through capitalized cost, in connection with the modernization of proprietary technological platforms for € 46.6 million. The positive change in working capital requirement was € 33.8 million. The DSO ratio reached 39 days at the end of December 2017, while the DPO was 78 days as of December 2017. Cash out related to taxes paid reached € 44.1 million increasing by € 5.0 million compared to 2016. Net outflow related to cost of net debt of € 1.1 million increased by € 0.5 million compared to the year 2016. Cash outflow linked to reorganization costs represented € 6.5 million. Integration costs linked to the acquisitions and post-acquisition integration costs realized in 2016 and in 2017 reached € 20.1 million. Net financial investments amounted to € 2.0 million and related mainly to investments in non-consolidated companies.

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Worldline 2017 Registration Document