Worldline - 2020 Universal Registration Document

FINANCIALS Consolidated financial statements

RECONCILIATIONWITH CASH FLOWMOVEMENTS:

Allocation of convertible bonds

Equity component

Financial liability

New borrowings

(In € million)

Convertible bonds

84.8

774.4

Bonds

993.0 373.0

Commercial papers

Total

1,366.0

84.8

774.4

Comparison between carrying value and fair value of borrowings are presented below:

Carrying value

Fair value 1,538.4 2,607.5 4,145.9

(In € million)

Convertible bonds*

1,339.9 2,551.4 3,891.3

Straight bonds

Total borrowings

Fair value of convertible bonds includes both the liability component and the equity component. *

BORROWINGS IN CURRENCIES

Other currencies

EUR

USD 23.2

Total

(In € million)

December 31, 2020 December 31, 2019

4,521.1 1,141.8

2.2

4,546.5

-

1,141.8

E

NON-CURRENT BORROWINGSMATURITY

Total

2022

2023

2024

2025 580.6

>2025

(In € million)

Convertible bonds

- -

-

-

759.3 1,339.9 495.0 2,087.5

Bonds

498.7

1,093.8

-

Other borrowings

26.1 26.1

-

-

55.3

-

81.3

As at December 31, 2020 long-term debt

498.7 1,093.8 635.9 1,254.3 3,508.7

2021

2022

2023

2024

>2024 557.4

Total 557.4 496.7

(In € million)

Convertible bonds Other borrowings

- - -

- - -

- - -

-

496.7 496.7

-

As at December 31, 2019 long-term debt

557.4 1,054.2

Derivative financial instruments The Group uses derivative financial instruments to hedge its foreign exchange and interest rate exposure arising from its operating, financing and investing activities. Those instruments are initially measured at fair value, i.e. the price that would be received when selling an asset or paid when transferring a liability in an orderly transaction between market participants at the measurement date. The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the reporting date, considering current interest rates and the risk of default by the counterparties to the swap.

The fair value of forward exchange contracts is their quoted market price at the reporting date ( i.e. the present value of the quoted forward price). Initial recognition of foreign exchange and interest rate hedging instruments and subsequent accounting for changes in their value are carried out in accordance with IFRS 9. In accordance with IFRS 13, the Group takes default risk into account when measuring its derivative hedging instruments. That involves the following: the risk of default by the Group on a derivative that is a ● liability (own credit risk); the risk of counterparty default on a derivative that is an ● asset (counterparty credit risk).

275 Universal Registration Document 2020