Worldline - 2020 Universal Registration Document

RISK ANALYSIS Internal Control

Training and information sessions are organized regularly in ● order to circulate these policies and procedures within the Group. A dedicated intranet site is accessible to all accounting staff, which facilitates the sharing of knowledge and issues raised by members of the financial community; Instructions and timetable: Financial reporting including ● budget of the entities, revised budget and annual and half-yearly financial statements by subsidiary is carried out in a standard format and within a timetable defined by specific instructions and procedures. Group Finance liaised with statutory auditors to coordinate the annual and half-year closing processes. Information systems F.4.4.3 Information systems play a key role in the establishment and maintenance of the internal control system related to the accounting and financial information, enabling automated preventive controls, but also monitoring and analysis capabilities. An integrated ERP system supports the production of accounting and financial information in almost all the subsidiaries within the Group except for those recently acquired. A unified reporting and consolidation tool is used for financial information (operational reporting and statutory figures). Each subsidiary reports its financial statements on a standalone basis in order to be consolidated at Group level. There is no intermediary consolidation level and all accounting entries linked to the consolidation remain under the direct control of Group Finance. Off balance sheet commitments are reported as part of the mainstream financial information and are reviewed by Group Finance.

information complies with all the defined policies, rules and instructions. The Closing File (which is integrated in the Book of Internal Controls) is updated periodically and has been deployed at local level. It requires the main subsidiaries to complete a standard electronic closing file on a quarterly basis in order to formalize key internal controls performed over financial cycles and provide appropriate back up to support closing positions. Templates created by Group Finance illustrate the expected level of control for the main items. Functional reviews are performed by Group Central Finance and Controlling on significant matters relating to financial reporting, such as tax issues, pensions, litigations, off balance sheet items or operational performance. Operational and financial reviews: Group Central Finance and Controlling supports operations and general management in the decision-making process through monthly reviews and by establishing a strong link with country management in terms of financial analysis & monitoring, enhancing control & predictability of operations and improving the accuracy & reliability of information reported to the Group; Representation letters: During the annual and half-year accounts preparation, the management and head of finance of each subsidiary are required to certify in writing: They have complied with the Group’s accounting rules and ● policies; They are not aware of any cases of proven or potential ● fraud that may have an impact on the financial statements; The estimated amounts resulting from the assumptions ● made by management enable the Company to execute the corresponding actions; and That, to the best of their knowledge, there has been no ● major dysfunctions in the control systems in place within their respective subsidiaries. Internal Audit department: The review of the internal control procedures linked to the processing of financial information is a component of the reviews conducted by the Group Internal Audit department. The Group Internal Audit department works together with Group Finance to identify the main risks and to focus its audit plan accordingly.

F

Monitoring and control F.4.4.4

In addition to the financial processes defined, monitoring and control processes aims to ensure that accounting and financial

Outlook and related new procedures to be implemented F.4.5

In 2021, financial, commercial and social performance improvement programs, as well as other transformation initiatives, will continue their effects to improve and streamline processes, with resulting benefits for the Internal Control System. In particular, entities recently acquired will be fully integrated within the Internal Control System. Initiatives and corresponding action plans identified through the risk mapping exercice will continue to be controlled and

monitored to ensure that proper attention is given to those topics, jointly with internal control activities to ensure that management control of risks remain satisfying. The Internal Audit department will pursue the internal review program updated following the risk assessment performed in 2020 and will monitor the implementation of its recommendations.

Universal Registration Document 2020

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