Worldline - Registration Document 2016

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Operation and financial review Critical accounting policies under IFRS

9.2

Critical accounting policies under IFRS

consolidated financial statements” of the consolidated financial statements andare essentially related to:

significant adjustment to the carrying amounts of assets and liabilities are detailed in the Note “Basis of preparation of that affect the reported amounts of assets and liabilities, income and expense in the financial statements and disclosures of contingent assets and liabilities at the closing date. The estimates, assumptions and judgments that may result in a The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions

Goodwill impairment tests;

●

contracts; Revenue recognition and associated costs on long-term ● Capitalization of development costs. ●

9.3

Significant event of the year

After the completion of the regulatory processes in the Netherlands, in Belgium and in the Czech Republic, the transactions with Equens, Paysquare and KB Smartpay were finalized on September 30, 2016.

Transactionwith Equens and Paysquare

9.3.1.

It is reminded that transaction with Equens and Paysquare was made of two components: Processing businesses of Worldline 1 have been merged with Equens. This merger resulted in the creation of equensWorldline, owned by Worldline at 63.6% and by the Regarding Financial Processing activities, the Financial ● former shareholders of Equens at 36.4%. The Company equensWorldline is consolidated within the Group’s Financial Services division from October 1, 2016; Regarding Merchant Services, Worldline has acquired from ● Equens its Commercial Acquiring subsidiary Paysquare for

an enterprise value of € 72 million in cash, funded by the existing available cash balance of the Group. Paysquare is fully consolidated in the Group’s Merchant Services &

Terminal division from October 1, 2016.

has been launched immediately and the objective of c.€ 40 million run-rate synergy on the Group’s OMDA in 2018 is fully confirmed, out of which c.€ 20 million in 2017. October 1, 2016 as an integrated company. The synergy plan equensWorldline was fully ready to start its operations on

Acquisition of Komercni banka (KB Smartpay)

9.3.2.

(KB), subsidiary of the Société Générale group and one of the leading banks in the Czech Republic, to further develop product and services for the Czech merchants. The group has completed the agreement with Komercni banka Under the terms of the agreement, Worldline has acquired, as a first stage, 80% of Cataps s.r.o. (“Cataps”), a 100% subsidiary of the Komercní banka banking group, based on an enterprise value of € 34 million for 100%. Cataps was established in 2014 Terminal division from October 1, 2016. and has assumed activities of Komercni banka in credit and debit card payment processing services (merchant acquiring). Cataps is fully consolidated in the Group’s Merchant Services &

Republic. As part of this agreement, Worldline and Komercni banka have in addition signed a 10 year commercial alliance for the development and the growth of these activities in the Czech Through these transactions, the enlarged Worldline Group benefits from a unique Pan-European footprint and has increased its revenue size on a full year basis by c.+25%, out of which c.+40% in Commercial Acquiring and c.+65% in Financial Processing. broaden with a significantly reinforced product portfolio, a larger geographical footprint and the additional expertise of c. 1,300 electronic payment experts. With these acquisitions, the business perspectives of Worldline

Except for Financial Processing businesses in Asia and in Spain. 1

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Worldline 2016 Registration Document