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Financial Information concerning the Group’s Assets and Liabilities, Financial Condition andResults
Group Consolidated Financial Statements
187
Worldline
2016 Registration Document
MARGINFORTHEYEARENDEDDECEMBER
31, 2016
NOTE 2.1 PROFORMARECLASSIFICATIONS REFLECTED INTHEPROFORMAREVENUE, OMDAANDOPERATING
September
30, 2016 were reclassified in order to align with the Group’s accounting principles and policies:
There are certain differences between the manner in which Worldline and the Acquired Companies present their respective IFRS
income statements. Therefore, the items below in the Acquired companies’ income statement for the 9 month period ended
(in € million)
interchange fees
1
Pass-through
accounting for
accounting
2
terminals instead
of pass-through
Recognition of
sale of payment
infrequent items
3
treatment for
unusual and
accounting
Harmonization of
pension
4
the accounting
treatment for
Harmonization of
amortization
booked as OOI
5
Cust.
Relationship
Total
pro forma
reclassification
Revenue
-28.3
6.5
-21.8
OMDA
17.0
0.9
17.9
Operating margin
17.0
4.4
21.4
2016 by Paysquare and KB Smartpay as revenue.
Accordingly, pass-through accounting has been applied to the interchange bank commissions that were booked during the first nine months of
the Group presents its revenue for Commercial Acquiring net of interchange bank commissions received on behalf of card issuing banks.
1
recognized gross according to the Group accounting policies.
Revenue for sale of payment terminals was recorded net of purchasing costs, as pass-through revenue by Equens. Revenue from these sales is
2
below the Operating Margin. These costs consist mainly in consultancy and acquisition expenses related to the transaction between Equens and
Worldline.
the Group presents income or expense that are unusual and infrequent as “Other Operating Income and Expense” or (“OOI”), below the OMDA and
3
The non-cash part of the pension expense has been excluded from the OMDA computation, in compliance with the Group’s accounting principle for
4
pension.
Amortization expense for customer relationships has been presented as other operating expense in compliance with the Group’s accounting
5
principle.
NOTE 2.2 PROFORMAADJUSTMENTS REFLECTED INTHE PROFORMAREVENUE, OMDAANDOPERATINGMARGIN
FORTHEYEARENDEDDECEMBER
31, 2016
The following pro forma adjustments were recorded:
(in € million)
transaction
eliminations
1
Intra-group
adjustments
2
Prospective
revenue
contracts
3
methods for
long-term
Harmonization
of accounting
contract
4
scope in a
long-term
Change in
completion
5
provision
for loss at
Unusual and
infrequent
adjustments
Other
pro forma
adjustments
Total
Revenue
-19.5
-7.6
-1.8
5.1
-23.8
OMDA
-5.5
2.3
6.5
1.5
4.8
Operating margin
-5.5
3.2
13.1
18.0
-1.2
27.6
Consolidation elimination of transactions between Worldline, Equens and Paysquare during the first nine months of 2016.
1
Restatement of first nine-month revenue, OMDA and OM to reflect the economic model of one specific commercial contract.
2
Harmonization of accounting methods (revenue recognition and asset capitalization) for long-term contracts.
3
Adjustment to reflect of scope evolution of one specific commercial contract.
4
Unusual and infrequent provision for loss at completion on one long-term customer contract.
5