Worldline - 2019 Universal Registration Document

E

FINANCIALS Consolidated financial statements

Financial items Note 6

6.1 Net Financial Result 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; and € 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).

6.2 Cash and cash equivalents

Accounting policies/principles Cash and cash equivalents include cash at bank and financial instruments such as money market securities. Such financial instruments are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. They are held for the purpose of meeting short-term cash commitments and have a short maturity, in general three months or less from the date of acquisition. Some instruments, such as term deposits, that have at inception a longer maturity but provide for early withdrawal and a capital guarantee may also be classified as cash equivalents under certain circumstances. Money market securities are recognized at their fair value. Changes in fair value are recorded in the income statement under “Other financial income and expenses”. Cash and cash equivalents are measured at their fair value through profit and loss. For entities having subscribed to the Group cash pooling agreement, the cash/debt balance sheet positions which are linked to this agreement are mutualized and only the net position is presented in the consolidated balance sheet, it is a notional cash pool. The cash and cash equivalents are held with bank and financial institutions counterparties, majority of which are rated A- to AA-. Impairment on cash and cash equivalent is calculated based on S&P default probability.

As at December 31, 2019

As at December 31, 2018

(In € million)

499.8

Cash and cash equivalents

214.8

0.0 0.8

Current accounts with Atos entities – Assets

-2.6

Money market funds

0.5

Total cash and cash equivalents

500.6 -24.5

212.8 -98.4 -19.2 -117.6

Overdrafts

0.0

Current accounts with Atos entities – Liabilities

Total overdrafts and equivalents Total net cash and cash equivalents

-24.5 476.0

95.2

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Universal Registration Document 2019