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9
Operation and financial review
Overview
87
Worldline
2016 Registration Document
OperatingMargin
9.1.3.4
personnel costs and operating costs from revenue. The primary
drivers of the Group’s operating margin are the level of its
revenue and the average level of its personnel costs and
operating costs as a percentage of revenue.
The Group’s operating margin is calculated by subtracting
OMDA
9.1.3.5
reconciliation of OMDA to operating margin and further
information on its calculation.
Section
9.12, “Non-IFRS Financial Measures” below for a
The Group also presents OMDA, a non-IFRS measure that it
believes provides useful additional information to investors. See
Other operating income and
9.1.3.6
expenses
reorganizational costs related to the Reorganization
Transactions. The line item “other costs” under “other operating
costs and expenses” primarily includes gain or loss on the sale
of assets.
Other operating income and expenses relate to income and
expenses that are unusual and infrequent, and include staff
reorganization costs, rationalization and associated costs,
integration and acquisition costs, amortization of customer
relationships and other costs. These costs include transition and
Net financial expense
9.1.3.7
average rates paid.
other financial income (expense). The main driver of net
financial expense is the amount of outstanding net debt and the
Net financial expense consists of the cost of net financial debt,
gains (losses) on exchange rates and related instruments and
Income taxes
9.1.3.8
number of factors including the relative mix of the Group’s
pre-tax income, the tax rates applicable in the jurisdictions
where income is earned as well as factors such as the availability
and usability of deferred tax assets.
The Group’s income taxes are a function of pre-tax income and
the effective tax rate. The effective tax rate depends on a
Segment Reporting
9.1.4
reviewed by the chief operating decision maker. See Note
2 to
the Group’s consolidated financial statements.
In accordance with IFRS
8, the Group’s segment reporting is
based on its internal segment reporting, which is regularly
business line structure.
Since January
1, 2014, the internal segment reporting reviewed
by the chief operating decision maker is based on the global