88 / 354
9
Operation and financial review
Critical accounting policies under IFRS
88
Worldline
2016 Registration Document
Critical accounting policies under IFRS
9.2
significant adjustment to the carrying amounts of assets and
liabilities are detailed in the Note “Basis of preparation of
consolidated financial statements” of the consolidated financial
statements andare essentially related to:
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.
●
Significant event of the year
9.3
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:
former shareholders of Equens at 36.4%. The Company
equensWorldline is consolidated within the Group’s Financial
Services division from October
1, 2016;
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
●
Regarding Merchant Services, Worldline has acquired from
●
Terminal division from October
1, 2016.
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 &
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
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 &
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
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
which c.+40% in Commercial Acquiring and c.+65% in Financial
Processing.
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
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