Worldline - 2020 Universal Registration Document

E

FINANCIALS Consolidated financial statements

The Group’s method for assessing own and counterparty credit risk is based on a calculation of the implied credit risk on senior fixed-rate bonds traded in the secondary market. Cash flow hedges When a derivative financial instrument is designated as a hedging instrument whose cash flows are expected to offset changes in the cash flows of a highly probable forecast transaction, the Group uses hedge accounting. The effective portion of any gain or loss on the hedging instrument is recognized directly in “Other comprehensive income” until the hedged item itself is recognized in profit or loss. The effective portion is then recognized in profit or loss. The ineffective portion of any gain or loss is recognized in profit and loss for the period If a hedging instrument is used to hedge risk arising from the Group’s operating activities or from the Group’s financing

activities, its impact on profit or loss is reported in “Net finance costs”. Premiums/discounts of hedging instruments are recognized in “Net finance costs”. Premiums/discounts of financial instrument are accounted for in financial result. Fair value hedges If a derivative financial instrument is used to hedge the foreign currency risk on a recognized monetary asset or liability, hedge accounting is not applied and the gains or losses on the financial instrument are recognized in profit or loss. If a hedging instrument is used to hedge risk arising from the Group’s operating activities or from the Group’s financing activities, its impact on profit or loss is reported in “Net finance costs”. Premiums/discounts of hedging instruments are recognized in “Net finance costs”. Premiums/discounts of financial instrument are accounted for in financial result.

FAIR VALUE OF DERIVATIVE INSTRUMENTS AT THE REPORTING DATE

As at December 31, 2020

As at December 31, 2019

(In € million)

Interest rate derivative instruments Current assets Current liabilities Foreign exchange derivative instruments Current assets

1.4

2.2

Current liabilities

-4.4 -0.8

Total

BREAKDOWN OF INSTRUMENTS BY HEDGING POLICY

As at December 31, 2020

As at December 31, 2019

(In € million)

Instruments designated as cash flow hedges Foreign exchange forward contracts

0.5 0.2

Foreign exchange swap

Instruments not designated as cash flow hedges Foreign exchange forward contracts

-0.1 -2.8

Foreign exchange swap

Interest rate swaps

1.4

Total

-0.8

276

Universal Registration Document 2020