Worldline - 2020 Universal Registration Document

FINANCIALS Financial review

Cash flow E.4.2

12 months ended December 31, 2020

12 months ended December 31, 2019

(In € million)

Operating Margin before Depreciation and Amortization (OMDA)

699.9 -155.3 -47.6

602.1 -113.9 -41.6 -46.3 400.3

Capital expenditures

Lease expenditures (Lease under IFRS16) Change in working capital requirement

46.0

Cash from operation

543.0

Taxes paid

-93.1 -12.1 -10.3

-57.4

Net cost of financial debt paid

-2.8 -5.4 -3.3

Reorganization in other operating income

Rationalization & associated costs in other operating income

-2.2

Integration and acquisition costs Net Long term financial investments

-103.5

-39.6

-1.6

14.9

Other changes* Free Cash Flow

-25.6 294.5

-19.2 287.6

Net material acquisitions

-2,873.1

-1,094.8

Contingent liability at fair value

117.6 10.9 79.4 -11.8

Capital increase

-4.3 77.4

Portion of convertible bonds in equity/debt

Dividends paid

Change in net cash/(debt) Opening net cash/(debt) Change in net cash/(debt)

-2,505.5

-611.2 -35.0 -611.1

-641.3

-2,505.5

E

Foreign exchange rate fluctuation on net cash/(debt) Excl. Of former Finance lease (Post IFRS 16 effect)

-18.3

2.1 2.8

Closing net cash/(debt) -641.3 “Other changes” include other operating income and expense with cash impact (excluding reorganization, rationalization and * associated costs, integration costs and acquisition costs), and other financial items with cash impact, net long term financial investments excluding acquisitions and disposals -3,165.1

Free cash flow represented by the change in net cash or net debt, excluding equity changes (notably cash received from the exercise of stock options), dividends paid, impact of foreign exchange rate fluctuations on opening net cash balance, and net acquisitions and disposals, reached € 294.5 million compared to € 287.6 million in 2019, corresponding to an increase of +2.4%. In 2020, free cash flow was impacted by the transaction costs related to the acquisition of Ingenico for an amount of € 54.3 million. Excluding this impact the free cash flow reached € 348.8 million representing an increase of 21.3% compared with 2019. OMDA conversion rate for 2020 is 42.1%. Excluding acquisition cost, it would have reached 49.8% compared to 47.8% in 2019, exceeding the target set for the year. Cash from operations amounted to € 543.0 million and increased by € 142.7 million compared to last year, including the following items: OMDA (€+97.8 million); ● Higher capital expenditures (€-41.4 million); ●

Higher lease expenditures (€-6.0 million); ● Improvement in change in working capital requirement ● (€+92.3 million). OMDA of € 699.9 million, representing an increase of € 97.8 million compared to 2019, reached 25.5% of revenue versus 25.3% of revenue in 2019. Capital expenditures amounted to € 155.3 million or 5.7% of revenue, in line with Group investment policy of 5-6% of revenue. The part related to investments in software platforms through capitalized cost, in connection with the modernization of proprietary technological platforms amounted to € 59.7 million. Despite the Covid-19 situation, the level of expenditures remained strong. The positive change in working capital requirement was € 46.0 million, confirming the improvement already recorded during the first semester of the year of € 27.5 million. The Group may factor part of its account receivables in the normal course of its day to day treasury management. Amount of receivables factored as at December 30, 2020 is non-significant and slightly below the level of December 30, 2019.

Universal Registration Document 2020

237