Worldline - 2020 Universal Registration Document

E

FINANCIALS Consolidated financial statements

As at December 31,

As at December 31,

Business combination

Release used

Release unused

2018 Charge

Other*

2019 CurrentNon-currents

(En millions d’euros)

Project commitments Litigations and contingencies Reorganization Rationalization Total provisions

2.7

0.2

-0.4

-0.1

0.0

-0.2

2.1

1.3

0.8

30.7

2.9 1.7

-0.5 -2.7

-3.9 -1.7

24.5

0.7

54.5

18.2

36.3

4.7

1.3

-0.2

3.

2.4

0.7

-

-

-

-

-

0.1

-

-

-

38.1

4.8

-3.7

-5.8

25.9

0.4

59.7

21.9

37.8

Other movements mainly consist of currency translation adjustments. *

The closing position of contingency provisions of € 112.8 million included a number of litigation issues, such as tax contingencies and social disputes, guarantees given on disposals and other disputes with clients and suppliers. The Legal department and the lawyers of the Group closely monitor these situations with a view to minimize the ultimate liability. As communicated by Ingenico in its 2019 Universal Registration Document, the tax assessment procedures in respect of a Brazilian subsidiary (Ingenico do Brasil Ltda) are still in progress. They relate to the ICMS tax, and the sum in question amounted to approximately € 50 million as of December 31, 2020 (covering principal, interest and penalties from 2004 to 2010). The “Tax War” pitting Brazilian states against one another affected Ingenico as well as a large number of foreign and domestic companies. The tax Tax disputes in Brazil

authorities of the state of São Paulo have contested the deduction by Ingenico do Brasil of a portion of the ICMS tax on the sales invoices of one of its suppliers (Jabil do Brasil Indústria Eletroeletrônica Ltda) on the grounds that the state of Minas Gerais, in which the supplier operates, had granted the supplier a tax incentive which was not duly approved by the Brazilian National Council for Treasury Policy (“CONFAZ”), therefore violating federal tax law. In June 2019, the taxation authority of the state of São Paulo issued a resolution on the measures that taxpayers must take to benefit from an amnesty. In July 2019, Ingenico do Brasil presented a request which suspended the administrative proceedings until the tax authorities conclude its analysis on the recognition of the amnesty. As of February 2021, Ingenico do Brasil is awaiting analysis of its request and the recognition of the amnesty, and considers success in this case as probable. Based on an analysis of the risks involved and on the criteria set out in IAS 37, no provision has been recognized in the consolidated

financial statements as at December 31, 2020.

Shareholder equity Note 12

Equity attributable to the owners of the parent 12.1

Accounting policies/principles Treasury stock

Worldline shares held by the parent company are recorded at their acquired cost as a deduction from consolidated shareholders’ equity. In the event of a disposal, the gain or loss and the related tax impacts are recorded as a change in consolidated shareholders’ equity.

During this year 2020 96,371,047 new shares were created following the exercise of The Ingenico acquisition (95,680,108 shares) ; ● the stock-options plans (205,056 shares) : ● the free shares plans (485,883 shares). ●

At the end of December 2020, the total of shares reached at 279,135,504 with a nominal value of € 0.68 Common stock was increased from € 124,279,830.76 as of January 1, 2020 to € 189,812,142.72 at the end of December 2020.

Non-controlling Interests 12.2

Accounting policies/principles The share of profit or loss attributable to non-controlling shareholders is recognized in equity attributable to non-controlling interests. Similarly, the share of dividends payable is recognized in equity attributable to “Non-controlling interests”.

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Universal Registration Document 2020