Worldline - 2020 Universal Registration Document

E

FINANCIALS Operational review

Operational review E.1

Facing the Covid-19 pandemic, Worldline has been able to deliver a continuous delivery of its services, while putting in place strong health protection measures for its employees through remote working or, in exceptional cases on site presence with strict adherence to local recommendations and Group policies. Large sales engagements kept progressing as planned thanks to the constant dialogue maintained between Worldline’s sales force and its customers. As a result, the level of commercial opportunities is at its all-time high, thereby providing confidence for the mid-term commercial ambitions. Confinement, store lock-downs and strict distancing measures were sequentially implemented and eased in different intensity and pace in most of Worldline’s key markets. Thanks to its diversified business profile, Worldline’s revenue was globally resilient in the extraordinary context despites the strong impact of restricting measures on payment transaction volumes operated by the Group. While Account Payment s were not significantly impacted and have delivered a strong growth along the year, card transactions in issuing mirrored the effects of governemental constraints. Debit cards were quite resilient, reflecting domestic transaction, while credit cards sharply declined as they are mostly used for travels, restaurants and hospitality transactions. Acquiring transactions instore were strongly impacted in the second and fourth quarter in relation with

lockdowns implemented in Worldline’s core countries, while online activities remained dynamic, fueled by non-travel verticals such as digital goods and services or on market places, reflecting a change in consumer habits towards more e-commerce. reached € 2,747.8 million in 2020. All along the year, the activity of the Group was impacted by the Covid-19 related measures and their effects on the European economies, mainly during the second and, to a lesser extent, the fourth quarter of the year. Facing this unprecedented situation, the Group leveraged its resilient and diversified business model as well as its customer focused organization to implement an early response to the health situation. As a result, the revenue organic decline over the year has been limited to -4.6% . The Group’s Operating Margin before Depreciation and Amortization (OMDA) reached € 699.9 million or 25.5% of revenue representing an increase of +60 basis points compared to 2019 at constant scope and exchange rates. This solid performance compared to the 2020 objective to reach circa the same percentage than in 2019, reflects the ongoing transformation and synergy plans of the combined Group, as well as the strong actions taken to adapt the cost base in order to mitigate the impact of the Covid-19 on the combined Group’s profitability while continuing investing in strategic projects to feed future growth. As a result, 2020, Worldline’s revenue

E.1.1

Statutory to constant scope and foreign exchange rates

reconciliation

the analysis of the Group’s performance, revenue and Operating Margin before Depreciation and Amortization (OMDA) for 2020 are compared to 2019 revenue and OMDA at constant scope and exchange rates.

Reconciliation between the FY 2019 reported revenue and OMDA and the FY 2019 revenue and OMDA at constant scope and foreign exchange rates is presented below (per Global Business Lines):

Revenue

OMDA

Exchange rates effect

Exchange rates effect

Scope effects 2

Scope effects 2

FY 2019 1

FY 2019

FY 2019 1

FY 2019

(In € million)

Merchant Services Financial Services Terminals, Solutions & Services

1,119.4 229.3

0.5 1,349.2

265.3 307.2

49.2

1.3

315.8

918.4

-0.9

0.7

918.2

0.0

0.8 308.0

0.0 302.4

-23.4

279.1

0.0

74.4

-2.4

72.1

Mobility & e-Transactional Services

343.8

0.0

-9.0 334.8

53.4 -23.7 602.1

0.0

-1.5 0.0

51.9

Corporate costs

-

-

-

-

-7.6

-31.3

Worldline

2,381.6 530.9 -31.2 2,881.3

116.0

-1.7 716.5

At constant scope and December 2020 exchange rates. (1) At December 2019 exchange rates. (2)

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Universal Registration Document 2020