WORLDLINE_REGISTRATION_DOCUMENT_2017

The Group’s business Investments

Investments C.6

Investments of 2017

C.6.1

In 2017, the Group’s total capital expenditures (purchases of tangible and intangible assets recorded on, the balance sheet) were € 113.4 million. These capital expenditures comprised principally: Capitalized production costs . Capitalized production costs, ● which relate to the applications developed specifically for clients or technology solutions provided to a group of clients, totaled € 46.6 million in 2017. Of this amount: € 34.1 million were invested in internal software development ● in four main areas: (i) rendering the Group’s processing platform compliant with SEPA Regulations and the development of new functionalities in lines with the DSP2, (ii) adapting the Sips Internet platform, (iii) developing Connected Living offers and (iv) developing new line of payment terminals,

€ 12.5 million were spent developing software for specific ● customers, Investments in shared infrastructure. The Group invested ● a total of € 43.4 million in 2017 in shared infrastructure – infrastructure that is not dedicated to a single client – which consists principally of network equipment and servers; Investments in infrastructure dedicated to specific ● clients. The Group invested a total of € 20.2 million in 2017 in dedicated equipment for specific clients (principally dedicated servers and terminals leased to clients). The following table shows capital expenditures (purchases of tangible and intangible assets) by type of expenditure for the periods indicated.

C

12 months ended December 31, 2016

12 months ended December 31, 2017

(in € million)

Capitalized production Development of new software platforms Development of software for specific customers

34.1 12.5

34.3 10.4

IT Platform

0.7

Total capitalized production

46.6

45.4

Other purchases of tangible and intangible assets Shared infrastructure

43.4 20.2

27.3

Dedicated infrastructure

9.8 0.8

Other

3.2

Total other purchases of tangible and intangible assets Total capital expenditures (purchases of tangible and intangible assets)

66.8

37.9

113.4

83.3

Gross Financial Investments In 2017, the Group’s cumulative gross financial investments (amounts paid for financial assets) amounted to € 220.1 million, corresponding to the acquisition of First Data Baltics, Digital River World Payment, MRL Posnet and Diamis, as well as the participation in “In touch”.

Principal Investments Currently Underway and Planned

C.6.2

The Group estimates that its capital expenditures in 2018 for maintaining and upgrading its IT equipment and its software platforms should stay steady in absolute value compared with 2017.

Including the investment derived from the Equens integration plan, the Group expects its average annual level of capital expenditure to be around 6% of revenue in the short term and between 5% and 6% of revenue in the medium term.

The Group self-finances the investments currently underway, and does not use financial borrowing.

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Worldline 2017 Registration Document