Worldline - 2019 Universal Registration Document

FINANCIALS Consolidated financial statements

6.3 Non current financial Assets

Accounting policies/principles Investments in non-consolidated companies

The Group holds shares in companies without exercising significant influence or control. Investments in non-consolidated companies are recognized at their fair value. For listed shares, fair value corresponds to the share price at the closing date. Visa preferred shares Under IFRS 9, the analysis applied is the approach for debt instrument. The accounting treatment of debt instruments is determined by the business model of the financial instrument and the contractual characteristics of the incoming cash flows of the financial instruments. The understanding is that Visa’s Convertible preferred stock does not pass the SPPI (Solely Payment of Principal and Interests) test because the cash flows generated by those stock include an indexation to the value of the Visa shares, and such equity indexation gives rise to a variability that do not solely represent a payment of principal and interests. In this situation, the accounting treatment of the debt instruments is fair value through P&L.

As at December 31, 2019

As at December 31, 2018

(In € million)

16.4 76.6

Pension prepayments

Note 10

8.9

Fair value of non-consolidated investments

78.1

4.5 4.6

Investments in associates

2.9

Other Total

22.1

102.1

112.0

“Other” include loans, deposits and guarantees. *

Fair value variation of non-consolidated investments is mainly linked to: The Visa preferred shares for € 24.2 million; ● The Twint shares depreciation for € -26.5 million. ●

The decrease in other is mainly due to the deferred payment related to the disposal of Visa Europe share formerly owned by Worldline that had been paid during the 2019 first semester. Investments in associates relates to the investment in In-touch.

E

6.4 Borrowings

Accounting policies/principles Borrowings

Borrowings are recognized initially at fair value, net of directly attributable debt issuance costs. Borrowings are subsequently measured at amortized cost. The calculation of the effective interest rate takes into account interest payments and the amortization of the debt issuance costs. Debt issuance costs are amortized in financial expenses over the life of the loan through the use of amortized method with the effective interest method. The residual value of issuance costs for loans derecognized is fully expensed as soon as it is probable that the loan maturity is reduced, with respect to the intention to exercise the anticipated refund clause. Bank overdrafts are recorded in the current portion of borrowings.

265 Universal Registration Document 2019