WORLDLINE_REGISTRATION_DOCUMENT_2017

Financials Parent company financial statements

Worldline has a present legal, regulatory, contractual or ● constructive obligation as a result of past events, it is probable that an outflow of resources embodying ● economic benefits will be required to settle the obligation, and the amount has been reliably quantified. ● Pensions Long-term staff benefits provisions are recognized in accordance with the ANC recommendation 2013-02. Provision is accrued under the “corridor” method. Worldline only recognizes in its income statement, the cumulative actuarial gains and losses exceeding a normal fluctuation margin of 10% at year end. This amortization is made on the remaining working lives of the beneficiaries of each plan. Revenue Services constitute the major part of the revenue of the Group. Revenues arising from transactional activities, particularly in the area of payments are recognized over the period during which the treatment has been completed. The proceeds from subscriptions are recognized on a straight line basis over the term of the contract. Revenues for development projects and/or migration of platform with customers are recognized as and when the service is performed, based on the stage of completion when the outcome can be determined reliably. The percentage of completion is determined by comparing the cumulative costs incurred, on a given date, with the expected total costs of the contract. Benefits from these contracts are recorded in the balance sheet under “trade accounts and notes receivables” for the share of proceeds to be received and under “other current liabilities” for the portion of deferred revenue. When the outcome of a fixed price contract cannot be estimated reliably, revenue is recognized only to the extent of contract costs incurred probably recoverable. Income relating to other services performed on behalf of clients is recognized at the completion of the service. The Group may sign in some cases service contracts with multiple elements, which may include a combination of different services. Revenue is recognized separately for each of the elements ● when they are separately identifiable. A set of contracts is combined and treated as a single ● contract when the Group of contracts is negotiated as a single package, the contracts are so closely interrelated that they are, in fact, part of a single project with an overall margin and that the contracts are performed concurrently or following one another without interruption.

The Group performs regularly and in special circumstances, profitability studies on service contracts to determine whether the latest estimates of revenue, costs and percentage of completion need to be revised. If these estimates indicate that the contract will be unprofitable, a provision for loss is recorded immediately covering the loss in its entirety. Other operating income and expenses “Other operating income and expenses” include exceptional items coming from ordinary activities and extraordinary items. Exceptional items from ordinary activities are those whose achievement is not related to the current operation of the business either because they are unusual in amount or impact or because they rarely occur. Tax consolidation agreement As per article 223-a of the French Fiscal Code, Worldline signed a group tax consolidation agreement with its french subsidiaries with effect as of January 1, 2015. Subsidiaries which are part of this tax consolidation are: Worldline participations 1 ● Similo ● Santeos ● Worldline Bourgogne ● Following Equens’s operation, the subsidiaries Mantis and Arabor are not part of the tax consolidation anymore. Worldline as parent company of the Group is designated as the only entity liable for the corporate tax of the Group tax consolidation. The main features of the agreement are: the result of the consolidated companies is determined as if ● they had been taxed individually; tax savings related to the use of the tax losses of the tax ● consolidation members will be only temporary since the subsidiaries concerned will still be able to use them. The agreement uses the same neutrality principples to the extend that each entity have to report in their accounts, during the integration period within the Group, a tax income or expense equal to what it would report if it was not integrated to the Group. Tax credit for competitiveness and employment (CICE) The relative income to CICE is € 3.1 million for 2017. Cice is reported as a reduction in staff costs. During 2017, this CICE was used to invest in different projects, to develop new features which reinforce offers to our customers.

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Worldline 2017 Registration Document