Worldline - 2019 Universal Registration Document

F

RISK ANALYSIS Internal Control

Systems related to accounting and financial information F.5.4

The financial governance of the Group relies on a set of global financial processes, that are part of the Internal Control system of the Group and for which a specific attention is paid due to their sensitivity: Finance processes: general accounting, budgeting and ● forecasting, consolidation and reporting, treasury management, credit risk management…; “Expert” functions processes: taxes, insurance, pensions ● and the like, real estate transactions; Operational processes: bidding, contract execution, ● financial business model. The management of the Finance function is performed through the Group Finance Committee (FICO) chaired by the Group CFO. This Committee is held on a bi-weekly basis gathering the managers of the main functions within the Finance organization, CFOs of the Global Business Lines (“GBL”) and CFOs from the Regional Business Units (“RBU”). This Committee deals with transversal topics critical for the Group and with operational topics and RBU specific issues. This organization is cascaded down at country level. Direct reporting to Group Function, as for the other support functions, reinforces the integration of the financial function and contributes to the full alignment of key processes and provides an appropriate support to operational entities of the Group. Group Finance department is in charge of piloting the financial processes, especially through the financial consolidation, the monitoring of financial compliance matters, the supply of expertise and the control of the reported financial information. It reviews accounting options, significant accounting items, as well as potential internal control weaknesses and initiates required corrective actions when needed. Local and Group financial F.5.4.1 organization

and processed in the subsidiaries. These policies and procedures were discussed with the statutory auditors before issuance and included the following main elements: Financial accounting policies cover Group reporting and ● accounting principles, guidelines on how financial information must be prepared, with common presentation and valuation standards. They also specify the accounting principles in order to prepare budgets, forecasts and submit actual financial reporting required for Group consolidation purposes. Group Reporting Definitions (GRDs), internal guidelines for IFRS and accounting rules applicable in the Operations, are regularly updated; Training and information sessions are organized regularly in ● order to circulate these policies and procedures within the Group. A dedicated intranet site is accessible to all accounting staff, which facilitates the sharing of knowledge and issues raised by members of the financial community; Instructions and timetable: Financial reporting including ● budget of the entities, revised budget and annual and half-yearly financial statements by subsidiary is carried out in a standard format and within a timetable defined by specific instructions and procedures. Group Finance liaised with statutory auditors to coordinate the annual and half-year closing processes. Information systems F.5.4.3 Information systems play a key role in the establishment and maintenance of the internal control system related to the accounting and financial information, enabling automated preventive controls, but also monitoring and analysis capabilities. An integrated ERP system supports the production of accounting and financial information in almost all the subsidiaries within the Group except for those recently acquired. A unified reporting and consolidation tool is used for financial information (operational reporting and statutory figures). Each subsidiary reports its financial statements on a standalone basis in order to be consolidated at Group level. There is no intermediary consolidation level and all accounting entries linked to the consolidation remain under the direct control of Group Finance. Off balance sheet commitments are reported as part of the mainstream financial information and are reviewed by Group Finance.

Group finance policies & F.5.4.2 procedures

Group Finance has drawn up a number of Group policies and procedures to control how financial information is recorded

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Universal Registration Document 2019