Worldline - 2020 Universal Registration Document

FINANCIALS Consolidated financial statements

Non-personnel operating expenses 4.2

Glossary Subcontracting costs direct

Subcontracting costs consist of the cost for subcontracted services, roughly half of which is typically IT subcontracting, mostly on a time & materials basis. The other half comes from other outsourced services, which mainly include non-IT services such as printing, mailing and other statement preparation activity and ATM services. The level of these expenses in any given period is mainly driven by the number of projects in the project phase, some aspects of which the Group may decide to outsource rather than handle in-house, and customer volumes, which drive costs that are dependent on volume, such as printing, mailing and statement activity. Scheme fees Include the fees paid to Visa, MasterCard, Bancontact (Belgium debit card scheme) and other local card schemes as part of the Group’s Commercial Acquiring activities. Capitalized production costs Operating expenses are reported net of capitalized production costs. Costs of specific application development for clients or technology solutions made available to a group of clients with a useful life of the underlying asset greater than one year are capitalized. Their aggregate amount is offset in the profit and loss statement through this line item.

12 months ended December 31, 2020

% Revenue -14.2% -10.6% -8.2% -6.5% -2.4% -41.9%

12 months ended December 31, 2019

% Revenue

(In € million)

Subcontracting costs direct

-389.2 -292.2 -226.5 -177.3

-371.0 -15.6%

Operating costs

-284.4 -65.3 -181.4 -56.5

-11.9% -2.7% -7.6% -2.4% -6.0% 0.0% -0.2% -0.2%

Hardware and software purchase

Scheme fees

Maintenance costs Subtotal expenses Depreciation of assets

-66.1

E

-1,151.2

-958.6 -40.3%

-175.0

-6.4% -0.1% -0.1% -0.2%

-142.9

Net (charge)/release to provisions Gains/(Losses) on disposal of assets

-1.9 -3.3 -6.0 59.7

-0.2 -3.8 -5.4 42.1

Trade Receivables write-off Capitalized Production Subtotal other expenses

2.2%

1.8%

-126.5

-4.6%

-110.2

-4.6%

Total

-1,277.7

-46.5%

-1,068.8 -44.9%

Depreciation of assets represents amortization charges of intangible and tangible assets, excluding customer relationship and patent amortization recognized as fair value of assets acquired in a business combination which are presented in other operating income and expenses (see Note 5).

Trade payables and note payables 4.3

As at December 31, 2020

As at December 31, 2019

(In € million)

Trade payables and note payables Trade payables and note payables

678.2 678.2 -24.8 -85.9 567.5

318.4 318.4 -11,9 -50,6 255.9

Advance payments Prepaid expenses Net accounts payable

Number of days payable outstanding (DPO)

63.0

73.0

Trade payables and note payables are expected to be paid within one year.

Universal Registration Document 2020

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