Worldline - 2019 Universal Registration Document

FINANCIALS Parent company financial statements

Tangible assets The tangible fixed assets are evaluated at their acquisition value excluding any financial expenses. The depreciation calculation is based on a straight-line method over the useful life of the assets, as follows: Buildings: 20 years; ● Fixtures and fittings: 5 to 20 years; ● Computer hardware: 3 to 5 years; ● Vehicles: 4 years; ● Office furniture and equipment: 5 to 10 years. ● Financial assets Financial assets consist of participating interests and other financial investments (security deposit, loans). Financial assets are initially booked at their acquisition cost. Fees related to the acquired financial assets are expensed. The value-in-use takes in account net assets and earnings outlooks. An impairment loss is recognized when the acquisition cost exceeds the value-in-use. Profitability prospects are based on cash flow expectations which are established on Global Business Line Plans for three years approved by management, and a terminal value. Trade accounts and notes receivable Trade accounts and notes receivable are recorded at their nominal value. They are individually analysed and, if necessary, are subject to an impairment loss. In the balance sheet they are recorded under “trade accounts and notes receivables”. When invoicing exceeds the revenue recognition, this excess is presented under “deferred income”. Securities Securities are recorded at their acquisition cost. They are depreciated when the carrying amount is lower than the book value. Provisions Provisions are recognized when: Worldline has a present legal, regulatory, contractual or ● constructive obligation as a result of past events; It is probable that an outflow of resources embodying ● economic benefits will be required to settle the obligation; and The amount has been reliably quantified. ● Pensions Long-term staff benefits provisions are recognized in accordance with the ANC recommendation 2013-02.

Provision is accrued under the “corridor” method. Worldline only recognizes in its income statement, the cumulative actuarial gains and losses exceeding a normal fluctuation margin of 10% at year end. This amortization is made on the remaining working lives of the beneficiaries of each plan. Loans The Company has taken the option of spreading its debt issuance costs over the term of the loan as authorized by section 212-11 of the PCG. Revenue Services constitute the major part of the Group revenue. Revenues arising from transactional activities, particularly in the area of payments are recognized over the period during which the transaction has been completed. The proceeds from subscriptions are recognized on a straight line basis over the term of the contract. Revenues for development projects and/or migration of platform with customers are recognized as and when the service is performed, based on the stage of completion when the outcome can be determined reliably. The percentage of completion is determined by comparing the cumulative costs incurred, on a given date, with the expected total costs of the contract. Benefits from these contracts are recorded in the balance sheet under “trade accounts and notes receivables” for the share of proceeds to be received and under “other current liabilities” for the portion of deferred revenue. When the outcome of a fixed price contract cannot be estimated reliably, revenue is recognized only to the extent of contract costs incurred probably recoverable. Income relating to other services performed on behalf of clients is recognized at the completion of the service. The Group may sign in some cases service contracts with multiple elements, which may include a combination of different services. Revenue is recognized separately for each of the elements when they are separately identifiable. A set of contracts is combined and treated as a single contract when the group of contracts is negotiated as a single package, the contracts are so closely interrelated that they are, in fact, part of a single project with an overall margin and that the contracts are performed concurrently or following one another without interruption. The Group performs regularly and in special circumstances, profitability studies on service contracts to determine whether the latest estimates of revenue, costs and percentage of completion need to be revised. If these estimates indicate that the contract will be unprofitable, a provision for loss is recorded immediately covering the loss in its entirety. Other operating income and expenses “Other operating income and expenses” include exceptional items coming from ordinary activities and extraordinary items.

E

303 Universal Registration Document 2019