Worldline - 2019 Universal Registration Document

FINANCIALS Consolidated financial statements

Goodwill and fixed assets Note 8

8.1 Goodwill

Accounting policies/principles Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, of the amount of any non-controlling interests in the acquiree and of the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. Goodwill is allocated to Cash Generating Units (CGU) for the purpose of impairment testing. Goodwill is allocated to those CGUs that are expected to benefit from synergies of the related business combination and represent the lowest level within the Group at which management monitors goodwill. A CGU is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. CGUs correspond to Global Business Lines defined by IFRS 8. The recoverable value of a CGU is based on the higher of its fair value less costs to sell and its value in use determined using the discounted cash-flows method. When this value is less than its carrying amount, an impairment loss is recognized in the operating income. The impairment loss is first recorded as an adjustment of the carrying amount of the goodwill allocated to the CGU and remainder of the loss, if any, is allocated pro rata to the other long-term asset of the unit. Goodwill is not amortized and is subject to an impairment test performed at least annually by comparing its carrying amount to its recoverable amount at the closing date based on December actuals and latest 3-year plan, or more often whenever events or circumstances indicate that the carrying amount could not be recoverable. Such events and circumstances include but are not limited to: Significant deviance of economic performance of the asset when compared with budget; ● Significant worsening of the asset’s economic environment; ● Loss of a major client; ● Significant increase in interest rates. ● Impairment tests The Group tests at least annually whether goodwill has suffered any impairment, in accordance with the accounting policies. The recoverable amounts of Cash Generating Units are determined based on value-in-use calculations or on their fair value reduced by the costs of sales. These calculations require the use of estimates.

E

As at December 31, 2019

As at December 31, 2018

Impact of business combination

Disposals Depreciations

Exchange rate fluctuations

(In € million)

3,115.1

Gross value

3,013.6

-  - 

47.9

53.5

-0.6

Impairment loss Carrying amount

-0.6

- 

- 

3,013.0

-

47.9

53.5

3,114.5

As at December 31, 2017

Impact of business combination

As at December 31, 2018

Disposals Depreciations

Exchange rate fluctuations

(In € million) Gross value

934.4

-  -  - 

2,087.4

-8.2

3,013.6

Impairment loss Carrying amount

-0.6

- 

- 

-0.6

933.8

2,087.4

-8.2

3,013.0

As of December 31, 2019, goodwill mainly corresponds to: € 2,178.4 million related to acquisitions of SIX Payment ● Services (see Note 1 for more details); € 437.9 million related to acquisitions of Equens/Paysquare ● and Cataps;

€ 243.3 million related to Banksys acquisition; ● € 50.2 million related to the acquisition of MRL Posnet; ● € 41.3 million related to the acquisition of First Data Baltics; ● € 33.2 million related to the acquisition of Digital River ● World Payment.

271 Universal Registration Document 2019