WORLDLINE_REGISTRATION_DOCUMENT_2017

Financials Non-IFRS financial measures

E.7

Non-IFRS financial measures

OMDA

E.7.1

In addition to IFRS measures, the Group uses an additional the definition used by the Group may not correspond to the performance measure, operating margin before depreciation definitions given to the same term by other companies. OMDA and amortization (OMDA), which excludes from operating should not be used in lieu of IFRS measures.

margin the impact of depreciation and certain other expenses detailed in the table below. The following table provides a reconciliation of OMDA to operating margin. OMDA is a non-IFRS measure and has no standard definition. As a result,

The following table provides a reconciliation of OMDA to Operating Margin, on a consolidated basis.

12 months ended December 31, 2016

12 months ended December 31, 2017

Variation

(in € million)

Operating margin

253.1

196.6

56.4 35.9 -6.2

+ Depreciation of fixed assets

90.5

54.6

+ Net book value of assets sold/written off +/- Net charge/(release) of pension provisions

1,1

7.3 3.0

(10.1)

(13.1)

+/- Net charge/(release) of provisions

0.8

(2.8)

3.6

OMDA

335.4

258.7

76.6

Free Cash Flow

E.7.2

In addition to cash flow calculated in accordance with IFRS, the Group presents the non-IFRS indicators “Operating Cash Flow” and “Free Cash Flow”. These indicators are calculated based on OMDA, which is calculated as described above.

The following table sets forth a reconciliation of OMDA to Cash Flow from Operation, and then from Cash Flow from Operation to Free Cash Flow, for the periods indicated.

E

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 -85.3

Capital expenditures

Change in working capital requirement

33.8

33.4

Cash from operation (CFO)

262.2 -44.1

206.8 -39.1

Taxes paid

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

-20.1

Net financial investments

-2.0 -8.4

Other changes (*) Free Cash Flow

-10.1

176.0

136.5

Note: Figures have been restated from change in Wordline’s intermediation activities presentation (effect of € -3.9 million on 2016 Free Cash Flow), as detailed in “Basis of preparation of consolidated financial statements”

(*) “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.

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Worldline 2017 Registration Document