Worldline - Registration Document 2016

Operation and financial review Financial Review

organization mainly in the United Kingdom, France and the Netherlands. Staff reorganization expenses of € 4.5 million decreased by restructuring costs induced by the adaptation of the € 2.1 million compared to last year and correspond to the the TEAM program and to the reorganization of office premises resulted mainly from external costs linked to the continuation of € 1.7 million compared to 2015. in France and Belgium. Those costs have decreased by The € 4.5 million of rationalization and associated costs (increase of €+2.7 million compared to the prior year) and Integration and acquisition costs reached € 9.9 million correspond to the costs related to the execution of the Equens costs. and Paysquare transactions and post acquisition integration corresponds to: The 2016 customer relationships amortization of € 6.1 million allocated to the value of the customer relationships and € 3.5 million related to the portion of the consideration paid ● Services; backlog brought by Banksys and Siemens IT Solutions & relationships amortized over 6.5 to 9.5 years starting € 2.5 million of Equens and Paysquare customer ● October 1, 2016; starting October 1, 2016. € 0.1 million of Cataps (KB Smartpay) customer relationships ● The €+38.4 million of other items mainly consisted of: Note 3 “Other significant events of the year”); The gain on the Visa share disposal for € 51.2 million (refer to ●

€-6.8 million (refer to Note 7 “Other Operating Income”); The charge of equity based compensation (IFRS 2) for ● Other non recurring costs for €-6.0 million. ●

9.11.1.4

Net financial expense

2015 and was composed of a net cost of financial debt of Net financial expense amounted to € 5.9 million in 2016 and in € 0.6 million and non-operational financial costs of € 5.3 million. compared to € 1.4 million in 2015. The net cost of financial debt amounted to € 0.6 million in 2016 The other financial income/expenses were mainly composed of costs for € 2.0 million. The pension financial costs represent the foreign exchange losses for € 2.9 million and pension financial difference between interest costs on defined benefit obligations funded (cf. Note 21, “Pensions and similar benefits”). and the interest income on plan assets for plans which are

9.11.1.5

Corporate tax

Effective Tax Rate (ETR) was 26.3% (27.3% in 2015). with a profit before tax of € 204.0 million. The annualized The tax charge at the end of December 2016 was € 53.7 million

9.11.1.6

Normalized net income

The normalized net income excluding unusual and infrequent items (net of tax) is € 129.2 million.

December 31, 2016 12 months ended

December 31, 2015* 12 months ended

(in € million)

Net income – Attributable to owners of the parent

144.2

103.4 -29.8 13.3 -16.5 119.9

Other operating income and expenses

13.3

9

Tax impact on unusual items

1.6

Total unusual items – Net of tax

15.0

Normalized net income – Attributable to owners of the parent

129.2

December 31, 2015 adjusted to reflect change in presentation disclosed in Note “Accounting Rules and policies”. *

101

Worldline 2016 Registration Document