Worldline - 2020 Universal Registration Document

E

FINANCIALS Consolidated financial statements

Equity-based compensation Stocks options and performance shares are granted to management and certain employees at regular intervals. These equity-based compensations are measured at fair value at the grant date using the Black and Scholes option-pricing model. Changes in the fair value of options – taking into account assumptions such as personnel turnover and fulfillment of performance conditions – after the grant date have no impact on the initial valuation. The fair value of the instrument is recognized in “Other Operating Income”, on a straight-line basis over the period during which those rights vest, using the straight-line method, with the offsetting credit recognized directly in equity. Employee Share Purchase Plans offer employees the opportunity to invest in Group’s shares at a discounted price. Shares are subject to a lock-up period restriction. Fair values of such plans are measured taking into account: The exercise price based on the average opening share prices quoted over the 20 trading days preceding the date of grant; ● The percent discount granted to employees; ● The number of free shares granted linked to the individual subscriptions; ● The consideration of a lock-up restriction to the extent it affects the price that a knowledgeable, willing market participant ● would pay for that share; and, The grant date: date on which the plan and its term and conditions, including the exercise price, is announced to ● employees.

12 months ended December 31, 2020

12 months ended December 31, 2019

(In € million)

Staff reorganization

-10.0

-3.8 -3.3

Rationalization and associated costs Integration and acquisition costs

-2.2

-105.1 -42.1 -114.1

-39.6 -19.9 -75.9

Equity based compensation & associated costs Customer rela tionships and patents amortization

Other items

-2.1

-5.7

Total

-275.6

-148.3

Staff reorganization expenses of € 10.0 million increased by € 6.2 million compared to last year and corresponded mainly to the restructuring plan in the United Kingdom and to costs induced by the recent acquisitions. The € 2.2 million of rationalization and associated costs resulted mainly in administrative back office transformation. Those costs have decreased by € 1.1 million compared to 2019. Integration and acquisition costs reached € 105.1 million, increasing by € 65.5 million compared to the prior period, and corresponded mainly € 58.6 million of Ingenico acquisition-related costs (of which € 54.3 million of cash impact). Remaining costs correspond mainly to Six Payment Services post-acquisition and integration costs. The 2020 customer relationships and patents amortization of € 114.1 million corresponds mainly to: € 55.9 million of SIX Payment Services customer ● relationships, technologies and patents;

€ 40.9 million of Ingenico customer relationships, ● technologies and patents (for 2 months); € 10.0 million of Equens and Paysquare customer ● relationships; € 2.1 million of MRL Posnet customer relationships and ● technologies; € 2.1 million of Cataps (KB Smartpay) customer ● relationships. Equity-based compensation The € 42.1 million expenses recorded within “Others Operation Income” for equity-based compensation (€ 19.9 million in 2019) is mainly related to 2017, 2018, 2019 & 2020 free share plans, the 2018 & 2019 stock option plans, and some social charges linked to those plans. We also integrated 2018 and 2019 Ingenico free share plans (€ 7.4 million).

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Universal Registration Document 2020