Worldline - 2020 Universal Registration Document

FINANCIALS Consolidated financial statements

Further sale by Atos of c. 13.1% of Worldline share capital on February 4, 2020 On February 4, 2020, Atos has completed the sale of ca. 23.9 million Worldline shares, representing ca. 13.1% of the Worldline share capital. Following this operation Atos holds ca. 7.0 million Worldline shares, representing ca. 2.5% of the Worldline share capital, which are underlying the exchangeable bonds. In case of exchange in full of the bonds, Atos would no longer hold any Worldline shares and voting rights. Alliance with ANZ Bank in Australia On December 14, 2020, Worldline announced the acquisition of 51% of the commercial acquiring business of ANZ for a cash consideration of c. AUD 485 million. This operation will allow Worldline to operate and develop commercial acquiring services in Australia with ANZ Bank. The key financial impacts on the Group are estimated below: Additional annual revenue of c. € 180 million with expected ● double-digit organic growth CAGR over the next 5 years; OMDA margin of c. 20% expected at closing to catch-up ● with Worldline’s Merchant Services profitability, fueled by operating leverage and expected synergies of € 25 million by 2025; Estimated implementation costs at c. € 25 million; and ● Estimated cash-out of c. € 300 million (for the 51%) at ● closing, preserving Worldline’s financial flexibility for further developments. Closing is expected during the last 2021 quarter.

Strong actions to adapt the cost base to Covid-19 consequences were also taken (holidays & restricted hours policy, freeze on new hirings, salary increase were postponed, supplier contracts were renegotiated, project reviews were conducted, and all discretionary expenses, including travel costs, were stopped). A tight monitoring of merchant risks was also implemented. In that respect, Worldline’s high quality risk management teams were reinforced with new members and new tools. Impact of Brexit As a No-deal Brexit would have impacted relationships between UK-based entities and entities based in the remaining European states ( e.g. PIN entry devices with Worldline SA/NV, passported services for several EU based Worldline entities, transfer of data…), the Group has engaged mitigation actions to limit the risk as well as to adapt to the new applicable rules. During the temporary permission period from January 31 to December 31, 2020 introduced by the Brexit, Worldline applied for special authorizations and to ensure compliance to the UK regulatory framework post-Brexit. The Group exposure to GBP fluctuation is limited, as revenue in GBP have corresponding costs in GBP and Indian Rupee. Though the exposure of GBP/Euro fluctuations is limited, it is increasing through enlarged cooperation between UK-based entities and entities based in the remaining EU states.

E

Revenue, segment information and trade accounts Note 3

Accounting policies/principles Revenue is recognized if a contract exists between Worldline and its customer. A contract exists if collection of consideration is probable, rights to goods or services and payment terms can be identified, and parties are committed to their obligations. Revenue from contracts with customers is recognized either against a contract asset or receivable, before effective payment occurs. Multiple arrangements services contracts The Group may enter into multiple-element arrangements, which may include combinations of different goods or services. Revenue is recognized for each distinct performance obligation which is separately identifiable from other items in the arrangement and if the customer can benefit from it. When a single contract contains multiple distinct performance obligations, the total transaction price is allocated between the different performance obligations based on their stand-alone selling prices. The stand-alone selling prices including usual discounts granted are determined based on the list prices at which the Group sells the goods or services separately. Otherwise, the Group estimates stand-alone selling prices using a cost-plus margin approach and/or the residual approach. Worldline applies the practical expedient of IFRS 15 and recognize revenue when invoiced as invoicing is phased with delivery to the customer. In some specific contracts, invoicing of the run embeds performance obligation which are not fully phased with the invoicing flow. In that case, revenue allocated to this dedicated performance obligation is recognized as soon as the performance obligation is achieved. As Worldline is providing stand-alone value to its customers as part of the build phases, build phases will be considered as a separate obligation under IFRS 15 and revenue will be recognized with respect to contract costs.

Universal Registration Document 2020

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