WORLDLINE_REGISTRATION_DOCUMENT_2017

E

Financials Consolidated financial statements

Note 2

Other significant event of the year

Other acquisitions

Diamis On December 21 2017 the Group acquired 100% of the shares in Diamis SA from Atos Integration SA. The Company was consolidated as from December 31, 2017. The Group has elected to account for transactions between entities under common control at their historical value in the IFRS consolidated account of Worldline. Difference between the purchase price and the net assets at December 31 are recognized in retained earnings. In Touch Worldline and Total signed a binding technological, commercial, and financing agreement with African fintech InTouch. The Company is consolidated in financial statements under the equity method. Cheque Service Worldline has sold as of July 1, 2017 its cheque services business in France through a management buy-out, as there were low synergies with the other activities of Worldline and as this business was dilutive to the Group’s growth and profitability. This activity generated revenue of less than € 20 million and was dilutive to the Group’s OMDA margin in 2016. Disposal

KB SmartPay / Cataps This entity is fully consolidated in Worldline consolidated financial statements since October 1, 2016 and led to the recognition of customer relationships for € 23.6 million amortized over 11.3 years and a goodwill of € 30.4 million. The Group has recognized a financial liability of € 6.7 million as at December 31 th , 2016 corresponding to the fair value of the put option owned by Non-Controlling Interests on the outstanding 20% shares exercisable at any time from the date of the transaction. During the second half of 2017, Worldline completed acquisitions of First Data Baltics (“FDB”), Digital River World Payments (“DRWP”) and MRL Posnet (“MRL”). FDB is consolidated in financial statements since October 1, 2017 and DRWP and MRL since November 1, 2017. Those acquisitions led to the recognition of customer relationships for € 49.1 million amortized over between 14 and 16 years and a preliminary goodwill of € 126.0 million. The total consideration was € 218.8 million. Through those acquisitions, Worldline gains leading positions in fast-growing countries such as the Baltics countries or India and significant development perspectives in online payments. Numerous synergy levers with Worldline portfolio have also been identified allowing the acceleration of both revenue and profitability. First Data Baltics / Digital RiverWorld Payments / MRL Posnet According to IFRS 8, reported operating segments profits are based on internal management reporting information that is regularly reviewed by the chief operating decision maker, and is reconciled to Group profit or loss. The chief operating decision maker assesses segments profit or loss using a measure of operating profit. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the company CEO who makes strategic decisions. The internal management reporting is designed based on Global Business Lines (Merchant Services, Financial Services and Mobility & e-Transactional Services). Global Business Lines have Note 3

Segment information by Global Business Lines

been determined by the Group as key indicators by the Chief operating decision maker. As a result and for IFRS 8 requirements, the Group discloses Global Business Lines (GBL) as operating segments. Each GBL is managed by a dedicated member of the Executive Committee. The P&L indicators as well as the assets have been allocated according to these GBL segments. On OMDA, a part of the cost related to Global Structures has not been allocated by GBL. Regarding Group Assets, the shared assets not allocated by GBL primarily relate to shared infrastructure delivering mutualized services to those three GBL.

The geographical scope and the activities covered by each operating segment are as follows:

Operating segments

Business divisions

Geographical areas

Merchant Services

Commercial Acquiring, Terminal Services, Omnichannel Payment Acceptance, Private label Card & Loyalty Services, Digital Retail

Argentina, Belgium, Brazil, Czech Republic, France, Germany, India, Luxembourg, Malaysia, Poland, Spain, Sweden, The Netherlands, United Kingdom, USA Belgium, China,Estonia, Finland, France, Germany, Hong Kong, Indonesia, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Singapore, Spain, Taiwan, The Netherlands and the United Kingdom Argentina, Austria, Belgium, Chile, China, France, Germany, Spain, The Netherlands and United Kingdom

Financial Services

Issuing Processing , Acquiring Processing , Digital Banking , Account Payments

Mobility & e-Transactional Services

Trusted Digitization , e-Ticketing , Contact & consumer cloud, Connected Living & Mobility

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Worldline 2017 Registration Document