Worldline - 2020 Universal Registration Document

E

FINANCIALS Consolidated financial statements

Translation of financial statements denominated in foreign currencies The balance sheets of companies based outside the euro zone are translated at closing exchange rates. Income statement items are translated based on average exchange rate for the period. Balance sheet and income statement translation adjustments arising from a change in exchange rates are recognized as a separate component of equity under “Translation adjustments”. Goodwill and fair value adjustments arising on the acquisition of a foreign entity have been treated as assets and liabilities of that foreign entity and translated into euro at the closing date. The Group does not consolidate any entity operating in a hyperinflationary economy except in Argentina. Argentina is a hyperinflationary Economy since July 1, 2018. As such, Profit & Loss items from Argentinian entity have been restated from inflation in accordance with IAS 29. Correction has been calculated month by month applying inflation since January 1 to end of each month until the end of year. This led to a gross up of Profit and Loss items in pesos. Those flows have been converted at the euros vs. pesos rate as end of December 2020. Impact of this restatement on the Group net result is not material. Translation of transactions denominated in foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities

denominated in foreign currencies are recognized in the income statement under the heading “Other financial income and expenses”, except where hedging accounting is applied.

Operating margin and Operating Margin before Depreciation and Amortization (OMDA)

underlying operating performance on the Group ongoing business is presented within operating margin, while unusual operating income/expenses are separately itemized and presented below the operating margin, in line with the ANC ( Autorité des normes comptables ) recommendation No. 2013-03 (issued on November 7, 2013) regarding the financial statements presentation. The Operating Margin before Depreciation and Amortization is based on Operating Margin minus items without impact on the cash flows from operations and excluding amortization and depreciation. Following Ingenico integration and considering payment terminal significance in Worldline’s financial statement, it was decided to include inventory terminals depreciations into OMDA. This change allows a fair view of economic and operational activities of the Group. Rounding These consolidated financial statements are presented in euro, which is the Group’s functional currency. All figures are presented in € million with one decimal. This may in certain circumstances lead to non-material differences between the sum of the figures and the subtotals that appear in the tables. The policies set out above have been applied in consistency with all years presented.

254

Universal Registration Document 2020