Worldline - 2019 Universal Registration Document

FINANCIALS Financial review [GRI 102-7]

Other operating income and expenses E.4.1.3 Other operating income and expenses relate to income and expenses that are unusual and infrequent. They represent a net cost € 148.3 million in 2019 with more than half corresponding to customer relationship amortization. The following table presents this amount by nature:

12 months ended December 31, 2019

12 months ended December 31, 2018

(In € million)

Staff reorganization

-3.8 -3.3

-3.6 -3.9

Rationalization and associated costs Integration and acquisition costs

-39.6 -19.9 -75.9

-39.8 -16.2 -20.9

Equity based compensation & associated costs Customer relationships and patents amortization

Other items

-5.7

-2.5

Total

-148.3

-86.9

Staff reorganization expenses of € 3.8 million increased by € 0.2 million compared to last year and correspond mainly to the restructuring costs induced by the recent acquisitions. The € 3.3 million of rationalization and associated costs resulted mainly from costs linked to the TEAM ² program, including administrative back office transformation. Those costs have decreased by € 0.6 million compared to 2018. Integration and acquisition costs reached € 39.6 million which represents a decrease of € 0.2 million compared to the prior period. SIX Payment Services integration costs represent a large part of this amount. The 2019 customer relationships amortization of € 75.9 million corresponds mainly to: € 59.0 million of SIX Payment Services customer ● relationships, technologies and patents; € 10.0 million of Equens and Paysquare customer ● relationships; € 2.3 million of MRL Posnet customer relationships and ● technologies; € 2.2 million of Cataps (KB Smartpay) customer ● relationships. Net financial expenses E.4.1.4 Net financial income amounted to € 121.7 million for the period (compared to an expense of € 20.4 million in 2018) and was made up of: A net cost of financial debt of € 5.5 million (€ 0.8 million in ● 2018); and A non-operational financial income of € 127.2 million ● (€-19.6 million in 2018).

Net cost of financial debt of € 5.5 million is made up of: € 6.3 million of cost of gross debt of the Group’s ● subsidiaries representing an average interest rate of 0.6%. Those costs include interest linked to convertible bonds for € 2.6 million and bond for € 0.6 million; € 0.8 million of remuneration of gross cash of the Group’s ● subsidiaries representing an average interest rate of 0.1%. The non-operational financial income was mainly composed of: The cancelation of contingent liability linked to the ● acquisition of SIX Payment Services representing an income of € 117.6 million (cf. Note 1 Main changes in the scope of consolidation); The recognition in the consolidated income statement of ● the variation of the fair value of the Visa preferred shares for a profit of € 24.2 million; Foreign exchange losses for € 9.7 million; ● IFRS 16 impacts for an expense of € 3.6 million; and ● Pension financial costs for € 2.3 million. The pension ● financial costs represent the difference between interest costs on defined benefit obligations and the interest income on plan assets for plans which are funded (cf. Note 10 Pensions and similar benefits). Corporate tax E.4.1.5 The tax charge at the end of December 2019 was € 75.0 million with a profit before tax of € 416.0 million. The annualized Effective Tax Rate (ETR) was 18.0% (24.4% in 2018). Excluding cancelation of contingent liability linked to the acquisition of SIX Payment Services representing an income of € 117.6 million, the ETR would have been 25.1%.

E

233 Universal Registration Document 2019