WORLDLINE_REGISTRATION_DOCUMENT_2017

Financials Consolidated financial statements

Goodwill is allocated to Cash Generating Units (CGUs) which correspond to the three operating segments disclosed in Note 3 “Segment information by Global Business Lines”.

As at December 31, 2016

As at December 31, 2017

(In € million)

Merchant Services Financial Services

427.3 480.6

293.6 446.9

Mobility & e-Transactional Services

25.8

25.9

Total

933.8

766.4

The recoverable amount of a CGU is based on the following assumptions: terminal value is calculated after the three-year period, using ● an estimated perpetuity growth rate of 2.5%. This rate reflects specific perspectives of the payment sector, and; discount rates are applied by CGU based on the Group’s ● weighted average cost of capital and adjusted to take into account specific tax rates. The Group considers that the weighted average cost of capital should be determined based on a historical equity risk premium of 6.53%, in order to reflect the long-term assumptions factored in the impairment tests.

The discount rate of 7.8% is used for all the CGUs (Merchant Services, Financial Services and Mobility & e-Transactional Services). On the basis of impairment tests carried at year end, no loss of value has been identified as at December 31, 2017. A varying plus or minus 50 basis points of the key parameters (operating margin, discount rates and perpetual growth rate) did not reveal the existence of any risk on the Group’s CGUs.

Note 13

Intangible assets

Customer Relationships/Patent

Software & Licenses

Other assets

Total

(In € million)

Gross value As at January 1, 2017

333.2 11.4 46.6 -11.4

128.4

25.2

486.7

E

Additions

- -

0.1

11.5 46.6 54.1 -1.1 -3.4 -0.1

R&D capitalized

- - -

Impact of business combination

65.5

Disposals*

-1.1 -1.1 -0.1

-

Exchange differences

-1.1

-1.2 -0.1 24.1

Other

-

As at December 31, 2017 Accumulated depreciation As at January 1, 2017 Depreciation charge for the year

377.5

192.8

594.3

-122.0

-31.5 -14.2

-21.1

-174.6

-55.3

-0.4

-69.9

Disposals/reversals (*) Exchange differences

1.1 0.7 0.3

- - -

-

1.1 1.4 0.2

0.7

Other

-0.1

As at December 31, 2017 Net value As at January 1, 2017 As at December 31, 2017

-175.1

-45.7

-21.0

-241.7

211.2 202.4

96.9

4.1 3.1

312.2 352.6

147.1

*

Writte-off of fully depreciated assets.

221

Worldline 2017 Registration Document