WORLDLINE_REGISTRATION_DOCUMENT_2017

E

Financials Consolidated financial statements

Note 7

Net Financial Result

Net financial expense amounted to € 8.1 million for the period (compared to € 5.9 million in 2016) and was made up of: A net cost of financial debt of € 1.1 million (€ 0.6 million in ● 2016) ; and A non-operational financial cost of € 7.0 million. ● Net cost of financial debt of € 1.1 million is made up of: € 1.9 million of cost of gross debt of the Group’s subsidiaries ● representing an average interest rate of 1.06%; and

€ 0.8 million of remuneration of gross cash of the Group’s ● subsidiaries representing an average interest rate of 0.28%. The other financial income / expenses were mainly composed of foreign exchange losses for € 4.1 million and pension financial costs for € 2.1 million. The pension financial costs represent the difference between interest costs on defined benefit obligations and the interest income on plan assets for funded plans (cf. Note 21 “Pensions and similar benefits”).

Note 8

Income tax expenses

CURRENTANDDEFERREDTAXES

12 months ended December 31, 2016

12 months ended December 31, 2017

(In € million)

Current taxes Deferred taxes

-52.0

-43.2 -10.5 -53.7

7.9

Total

-44.1

EFFECTIVETAXRATE The difference between the French standard tax rate and the Group Effective tax rate is explained as follows:

12 months ended December 31, 2016

12 months ended December 31, 2017

(In € million)

Profit before tax

177.4 34.4%

204.0 34.4%

French standard tax rate

Theoretical tax charge at French standard rate

-61.1

-70.3

Impact of permanent differences Differences in foreign tax rates

5.8

26.2

11.1

8.1

Movement on recognition of deferred tax assets

4.5

-9.6 -2.3 -0.6 -1.9 -3.2

Equity-based compensation Change in deferred tax rates

-2.4 -2.3 -1.1 -2.4

Withholding taxes CVAE net of tax French Tax credit

2.4 1.4

1.8

Other

-2.0

Group tax expense Effective tax rate

-44.1

-53.7

24.9%

26.3%

Note 9

Deferred taxes

12 months ended December 31, 2016

12 months ended December 31, 2016

(In € million)

Deferred tax assets Deferred tax liabilities Net deferred tax

52.4 57.4 -5.0

45.3 47.2 -1.9

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Worldline 2017 Registration Document