Exhibit 99.1

Consolidated Financial Statements

For the Year Ended December 31, 2015

MANAGEMENT’S REPORT TO THE SHAREHOLDERS

The management of DirectCash Payments Inc. is responsible for the accompanying consolidated financial statements.  The financial statements have been prepared by management in accordance with International Financial Reporting Standards, which recognize the necessity of relying on some best estimates and informed judgments. Management is responsible for the accuracy, integrity and objectivity of the consolidated financial statements within reasonable limits of materiality. All financial information in the Management’s Discussion and Analysis is consistent with the consolidated financial statements.

The Audit Committee is appointed by the Board of Directors, with all of its members being independent directors.  The Audit Committee meets with management, as well as with the external auditors, to satisfy itself that management is properly discharging its financial reporting responsibilities and to review the consolidated financial statements and the auditor’s report.

These consolidated financial statements and Management’s Discussion and Analysis have been approved by the Board of Directors based on the review and recommendation of the Audit Committee. The financial statements have been audited independently by KPMG LLP on behalf of the Company in accordance with generally accepted auditing standards.  Their report outlines the nature of their audit and expresses their opinion on the financial statements.

KPMG LLP

205 5th Avenue SW

Suite 3100

Calgary AB

T2P 4B9

Telephone (403) 691-8000

Fax (403) 691-8008

www.kpmg.ca

INDEPENDENT AUDITORS’ REPORT

The Board of Directors
DirectCash Payments Inc.:

We have audited the accompanying consolidated financial statements of DirectCash Payments Inc. and its subsidiaries, which comprise the consolidated statements of financial position as of December 31, 2015 and December 31, 2014, and the related consolidated statements of operations and comprehensive income, changes in equity and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of DirectCash Payments Inc. and its subsidiaries as of December 31, 2015 and December 31, 2014, and the results of their operations and their cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Chartered Professional Accountants

March 22, 2016

Calgary, Canada

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DirectCash Payments Inc.

Consolidated Statements of Financial Position

Canadian dollar in thousands

See accompanying notes to the consolidated financial statements

Subsequent events (Note 18)

Legal matters (Note 23)

DirectCash Payments Inc.

Consolidated Statements of Operations and Comprehensive Income

Canadian dollar in thousands (except per share amounts)

See accompanying notes to the consolidated financial statements

DirectCash Payments Inc.

Consolidated Statements of Cash Flows

Canadian dollar in thousands

See accompanying notes to the consolidated financial statements

DirectCash Payments Inc.

Consolidated Statements of Changes in Equity

Canadian dollar in thousands

See accompanying notes to the consolidated financial statements

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

1.              Corporate information

DirectCash Payments Inc. (“DCPayments” or the “Company”) is a publicly traded corporation incorporated and domiciled in Alberta, Canada.  The consolidated financial statements comprise those of DCPayments and its subsidiaries and wholly-owned limited and general partnerships. The Company’s registered head office is located at #6, 1420 — 28 Street N.E., Calgary, Alberta. DCPayments is a payments service business with operations in Canada, Australia, New Zealand, the United Kingdom, and Mexico. The Company’s focus is on building long term contracted recurring revenue in the merchant payments space.

The Company provides transaction switching and processing services on automated banking machines (“ATMs”) and for debit and credit cards and related services as well as processing and managing prepaid card programs and transactions. DCPayments deploys, operates and services ATMs in all its geographic segments. In Canada, the Company operates its Other Services business which includes payment, bank card processing and related services as well as other managed services to credit unions and financial institutions. The end-to-end payment solutions provided to credit unions and financial institutions enables these customers to outsource their payment and bank card and ATM processing and compete with services similar to those offered by larger banks.

On October 31, 2014 the Company, through its 100% owned subsidiary DC Payments Australasia Pty Ltd. completed an acquisition of the ATM business of Ezeatm Limited, an Australian listed public company. The acquisition included all of the assets comprising the ATM business of Ezeatm Limited (Note 4).

These consolidated financial statements have been prepared by management from the historical records of DCPayments and its subsidiaries.

2.              Basis of presentation

Statement of compliance

The consolidated financial statements for the years ended December 31, 2015 and 2014 have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

These consolidated financial statements were approved and authorized for issuance by the Board of Directors on March 17, 2016.

Basis of measurement

These consolidated financial statements are stated in Canadian dollars and were prepared on a going concern basis, under the historical cost basis, except for the interest rate swap and foreign exchange contracts which are measured at fair value.

Additional GAAP Measure

DCPayments has presented earnings before interest, taxes, depreciation and amortization (“EBITDA”) as a subtotal in its consolidated statement of operations and comprehensive income (loss). EBITDA is an important measure utilized by management in assessing the financial performance of the Company relative to its operating plans and budgets. It is also the measurement utilized by the holders of the Company’s long-term debt, as described in note 12, in calculating financial covenants. The Company has presented EBITDA prior to unrealized foreign exchange gains and losses and non-recurring other

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

gains (loss). The Company utilizes this presentation of EBITDA because it is consistent with the definitions under DCPayments’ credit facility agreement. DCPayments has also presented EBITDA prior to the deduction for acquisition-related expenses. These expenses relate only to business combinations which are complex, require the pre-approval of  the Company’s lenders and are financed utilizing long-term debt or the issue of equity or a combination thereof. Costs incurred on recurring asset acquisitions are not considered acquisition-related expenses and are included with other expenses in the consolidated statement of operations and comprehensive income.

Use of estimates and judgments

The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Although these estimates are based on management’s best approximation of the amount, event or actions, actual results ultimately may differ from those estimates.

The key sources of estimation uncertainty that have a significant risk of causing material adjustment to the amounts recognized in the consolidated financial statements are:

a.              Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash-generating unit (“CGU”) exceeds its recoverable amount, which is the higher of (a) its fair value less costs of disposal and (b) its value in use. The fair value less costs of disposal calculation is based on available data from sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the asset.  The value in use calculation is based on a discounted cash flow model. The cash flows are derived from internal budgets and do not include restructuring activities that DCPayments is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes. There is a certain amount of subjectivity and judgment in the CGUs determination and recoverable amount calculation. Judgments and assumptions are subject to measurement uncertainty and the impact of differences between actual and estimated amounts on the consolidated financial statements of future periods could be material.

b.              Income taxes

Provisions for taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors.  DCPayments reviews the adequacy of these provisions at the end of the reporting period.  However, it is possible that at some future date an additional liability could result from audits by taxing authorities.  Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made.

Deferred tax assets are recognized only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to be realized, and a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assessed when they do reverse. This requires assumptions regarding future

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

profitability and is therefore inherently uncertain. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognized in respect of deferred tax assets as well as in the amounts recognized in profit or loss in the period in which the change occurs.

c.               Useful lives of long-lived assets

DCPayments estimates the useful lives of equipment based on the period over which the assets are expected to be available for use.  The estimated useful lives of equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the relevant assets.  In addition, the estimation of the useful lives of equipment is based on internal technical evaluation and experience with similar assets.  It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above.  The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances.  A reduction in the estimated useful lives of equipment would increase the recorded expenses and decrease the non-current assets.

DCPayments estimates the useful lives of contracts included in intangible assets based on the average remaining primary term of the contracts acquired and assigns an estimated retention period based on the Company’s historical information in the applicable market. It is possible, however, that future regulatory or general economic changes, among other factors, could significantly impact the estimated retention period. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances.  A reduction in the estimated useful lives of contracts would increase the recorded expenses and decrease non-current assets.  The estimated useful lives of contracts for the Australian intangible assets acquired in July 2012 were reviewed by management in Q2 2015. Based upon the review, amortization expense changed from A$5.0 million to A$7.2 million per quarter, as the useful life was adjusted by 11 months.

d.              Other significant areas of judgments

The estimates of fair value for assets acquired and liabilities assumed through a business combination and/or asset acquisition involve certain assumptions and judgments that are subject to measurement uncertainty.

The estimates of net realizable value of inventory involve estimating future selling prices in the applicable market and accordingly, are subject to measurement uncertainty.

The estimates of derivative financial instruments involve estimating future foreign exchange rates and interest rates and associated volatility and accordingly, are subject to measurement uncertainty.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

3.              Significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.  These policies have been consistently applied to all the years presented, unless otherwise stated.

There were no new or amended standards to be adopted for the year ended December 31, 2015.

The amounts included in accumulated other comprehensive income (loss) include only foreign exchange translation gains and losses on entities whose functional currency is other than the Canadian dollar. Amounts will be recycled into net income (loss) upon the disposition or partial disposition of the foreign operation.

a.              Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by DCPayments. Control exists when DCPayments has power over an investee, exposure or right to variable returns from its involvement with the investee and the ability to use its power to affect its return.  In assessing control, potential voting rights that currently are exercisable are taken into account.  The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Transactions eliminated on consolidation

Intra-group income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements.  Intra-group debts and advances are eliminated the same way as intra-group income and expenses.

Business combinations

DCPayments uses the acquisition method to account for business combinations. Goodwill is measured as the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition date.  When the excess is negative, a bargain purchase gain is recognized immediately in the statement of operations and comprehensive income (loss).

DCPayments elects on a transaction-by-transaction basis whether to measure non-controlling interest at its fair value, or at its proportionate share of the recognized amount of the identifiable net assets, at the acquisition date.

Transaction costs, other than those associated with the issue of debt or equity securities, that DCPayments incurs in connection with a business combination are expensed as incurred.

b.              Revenue recognition

Revenue from processing transactions and other services is recognized at the time the transactions are processed and the services are provided. Revenue from technology projects is typically recognized on a percentage of completion basis. In certain arrangements with customers, the Company bills and

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

receives payment in advance of the product or service being delivered. In these situations, recognition of the revenue is deferred until the product or service is delivered.

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when strong evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably.  If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognized as a reduction of revenue as the sales are recognized.

c.               Leases

Agreements under which payments are made to owners in return for the right to use an asset for a period are accounted for as leases. Leases that transfer substantially all the risks and rewards of ownership are recognized at the commencement of the lease term as finance leases within property and equipment and liabilities at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Finance lease payments are apportioned between interest expense and a reduction of the liability.

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.  Payments made under operating leases (net of any incentives received from the lessor) are charged to income on a straight line basis over the term of the lease.

d.              Employee benefits

Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.  A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if DCPayments has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

Share-based payment plans

The Company has an Employee Profit Sharing Plan (“EPSP”) under which it receives services from employees as consideration for cash payments paid to the EPSP plan trustee (which in turn are later used by the trustee to purchase shares of DCPayments).

The EPSP are required to be reported as “equity settled” plans - therefore, the accounting of the EPSP has been recorded as equity settled although DCPayments does not dilute equity or issue treasury shares as part of the EPSP (i.e. DCPayments only pays cash which the EPSP trustee uses to buy units on the open market and not from treasury).  If an EPSP participant ceases to be employed within DCPayments, either the EPSP trustee sells the participant’s unvested shares back into the market and returns the proceeds to DCPayments or the unvested shares are reallocated to remaining participants.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

The Company records the cost of share-based payment plans to personnel expenses over the vesting period and credits contributed surplus. The related tax portion of the EPSP entitlements are expensed over the period until the tax payment is required pursuant to the terms of the plan.

Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in income in the periods during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employees render the service are discounted to their present value.

Other long-term employment benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Company’s obligations.

e.               Finance income and finance cost

Finance income comprises interest income on funds invested. Interest income is recognized as it accrues in profit or loss, using the effective interest method.

Finance costs comprise interest expense on borrowings (e.g. credit facilities), stamping fees, facility fees, accrual of differences between amounts advanced and the principal repayable (i.e. discounted obligations) and impairment losses recognized on certain financial assets and financial liabilities.  Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method. DCPayments also includes interest and penalties on income taxes in finance costs.

f.                Non-derivative financial instruments

Non-derivative financial instruments are recognized when DCPayments becomes a party to the contractual provisions of the instrument (i.e. at the date they are originated).  Financial assets are derecognized when the contractual rights to receive cash flows from the assets have expired or have been transferred and DCPayments has transferred substantially all risks and rewards of ownership.  Any interest in transferred financial assets that is created or retained by DCPayments is recognized as a separate asset or liability.  Non-derivative financial instruments are recognized initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, DCPayments has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

At initial recognition, all financial instruments are classified in one of the following categories depending on the purpose for which the instruments were acquired:

Financial assets

Cash and cash equivalents

Cash and cash equivalents includes cash in circulation and operating bank balances. Cash in circulation means the aggregate amount of vault cash (cash in ATM cassettes) plus cash inventory (cash in transit from settlement networks and from armoured car carriers). Cash and cash equivalents are measured at amortized cost which approximates fair value.

Cash in escrow

The current cash in escrow includes funds for contractual holdback amounts held by legal counsel. Cash in escrow is measured at amortized cost which approximates fair value.

Restricted cash

DCPayments provides services related to prepaid debit and credit cards. DCPayments requires cash and security under its agreements with these customers for utilizing DCPayments funds and to activate these cards on behalf of the customers. Restricted cash is measured at amortized cost which approximates fair value.

Loans and receivables

Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, less any impairment losses, with interest expense recognized on an effective yield basis. Assets in this category include trade and other receivables.

Financial liabilities

Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. Liabilities in this category include trade and other payables, long-term debt, restricted funds liability and dividends payable.  DCPayments derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.

Shareholders’ equity

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Share capital

Share capital is classified as equity.  Incremental costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

Shares held in trust by EPSP trustee (“Trustee”)

DCPayments shares acquired by the Trustee under the Company’s EPSP plan which have not been completely vested to the EPSP participants (“Participants”) are classified as shares held in trust by the Trustee and are presented as a separate category of equity.  Thereafter when either EPSP shares are fully vested to a Participant, the amount attributed to the Participant as a benefit upon vesting of the

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

shares is deducted from the balance of shares held in trust by Trustee and transferred to contributed surplus.

g.              Derivative financial instruments

The Company’s activities expose it to the financial risks of changes in foreign exchange rates and interest rates.

The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors, which provide principles on the use of financial derivatives consistent with the Company’s risk management strategy.

Derivative financial instruments are initially measured at fair value on the contract date and are subsequently re-measured to fair value at each reporting date with changes therein recognized in profit or loss. The Company does not apply hedge accounting to the derivative financial instruments.

h.              Inventories

Inventories consist primarily of ATMs, debit terminals, related spare parts and accessories held for sale, prepaid product vouchers and prepaid telecommunications as well as other prepaid products, debit and credit cards.  Inventories are measured at the lower of cost and net realizable value.  The cost of inventories is based on weighted average and includes expenditures incurred in acquiring the inventories, conversion costs and other costs incurred in bringing them to their existing location and condition.  Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

i.                 Property and equipment

Initial recognition and measurement

Property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

The cost of equipment includes expenditures that are directly attributable to the acquisition of the asset and direct costs of readying the asset for use.  When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.

Subsequent measurement

The cost of replacing part of an item of equipment is recognized as part of the carrying amount of such item, if it is probable that the future economic benefits embodied within the item will flow to DCPayments and the cost of the item can be measured reliably.  The carrying amount of the replaced part is derecognized.  The costs of the day-to-day servicing are recognized in the statement of operations as an expense as incurred.

Depreciation

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value and is provided on a straight-line basis over the estimated useful lives of each part of an item of property and equipment, since this most closely reflects the

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

expected pattern of consumption of the future economic benefits embodied in the asset.  The estimated useful lives for the current and comparatives period are as follows:

The residual values, useful lives and methods of depreciation are reviewed annually and adjusted if appropriate.  Any changes are accounted for prospectively as a change in accounting estimate.

Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of the item and are recognized in the statement of operations.

j.                 Intangible assets

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired business at the date of acquisition. Goodwill is tested at least annually for impairment and measured at cost less accumulated impairment losses.  Impairment losses on goodwill are not reversed.

Intangible assets

Intangible assets are primarily comprised of the cost of acquiring customer contracts and relationships. In business combinations, such contracts represent contractual rights that are separable from the entity acquired and are therefore measured separately from goodwill. Valuation of such contracts is only relevant in the case of contracts acquired by DCPayments pursuant to acquisition transactions.  The majority of the Company’s contracts arise from customers entering into the contracts directly with the Company in the first instance and have negligible costs associated with their acquisition.

With respect to DCPayments’ contracts, ATM and debit terminal processing contracts have an initial 5-7 year term and generally include an equivalent 5-7 year term renewal provision unless the customer terminates the contract within a specified period, and include a right of first refusal (“ROFR”) for any competing offer on renewal.  Prepaid card program management contracts have more customized provisions and have similar contract and renewal terms and ROFR provisions to those in the ATM and debit terminal processing contracts. Financial institution contracts, covering ATM management and the processing of ATM and payment card transactions, have customized provisions and typically have 5 — 7 year initial terms with renegotiation of terms upon renewal.

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

These intangibles assets are amortized on a straight-line basis over the expected life of the contract, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.

k.              Impairment

Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment.  If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal.  In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.  For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”, or “CGU”).  For the purposes of goodwill impairment testing, goodwill acquired in a business combination is allocated to the CGU, or the group of CGUs, that is expected to benefit from the synergies of the combination. The identified CGUs for impairment testing were determined according to the criteria under IAS 36, Impairment of Assets. The Company has determined that its CGUs for the goodwill impairment test are the Americas, Australasia and Europe which reflects the lowest level at which that goodwill is monitored for internal reporting purposes.

The Company’s corporate assets do not generate separate cash inflows.  If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.  Impairment losses are recognized in profit or loss.  Impairment losses recognized in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed.  In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.  An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.  An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Financial assets (including receivables)

DCPayments assesses, at the end of each reporting period, whether there is objective evidence that financial assets carried at amortized cost are impaired.  Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and default or delinquency in payments (i.e. loss events) are considered objective evidence of impairment.  A financial asset is

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Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

impaired when the loss event that had a negative effect on the estimated future cash flows of that asset can be estimated reliably.

DCPayments considers evidence of impairment for receivables at both a specific asset and collective level.  All individually significant receivables are assessed for specific impairment.  Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics.

In assessing collective impairment DCPayments uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.

The amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.  The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

l.                 Deferred rent

All tenant inducements are recorded as deferred rent and amortized against rent expense over the life of the initial term of the lease period.  The current portion is included in other current liabilities.

m.          Income tax

Income tax expense comprises current and deferred tax.  Income tax is recognized in the statement of operations except to the extent it relates to a business combination, to items recognized in foreign currency translation reserve or directly in equity.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future, and for taxable temporary differences arising on the initial recognition of goodwill.  Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.  Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they

11

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

can be utilized.  Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

n.              Foreign currency

Items included in the financial statements of each DCPayments entity are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in Canadian dollars, which is the Company’s functional and presentation currency.

Foreign currency transactions are translated into the appropriate functional currency using the exchange rates prevailing at the dates of the transactions.  Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of operations.  Non-monetary assets that are measured at fair value are translated using the exchange rate at the date that the fair value was determined.

The results and financial position of all DCPayments entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on the acquisition of a foreign entity, are translated into Canadian dollars at foreign exchange rates in effect at the balance sheet date.

The income and expenses of foreign operations are translated into Canadian dollars at average exchange rates unless these do not approximate the foreign exchange rates in effect at the dates of the transactions in which case income and expenses are translated at the dates of the transactions.

Foreign exchange differences arising on the translation of the net investment in foreign entities are recognized in foreign currency translation reserve and accumulated in a separate component of equity. DCPayments treats specific intercompany loan balances, which are not intended to be repaid in the foreseeable future, as part of its net investment. Foreign exchange gains or losses on these intercompany loan balances are included in foreign currency translation reserve, net of income taxes. Foreign exchange gains or losses arising from intercompany advances that are not part of the Company’s net investment are included in income.

When a foreign operation is disposed of, the relevant amount in the cumulative amount of foreign currency translation differences is transferred to profit or loss as part of the gain or loss on disposal.

Foreign currency gains and losses are reported on a net basis.

o.              Earnings per share

Basic earnings per share (“EPS”) is calculated by dividing profit or loss attributable to common shareholders (the numerator) by the weighted average number of common shares outstanding (the denominator) during the period.  The denominator is adjusted for EPSP shares purchased and held by the EPSP Trustee.

12

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding, adjusted for own shares held, and for the effects of all dilutive potential common shares.

p.              Segment reporting

An operating segment is a component of DCPayments that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components.  All operating segments’ operating results are reviewed regularly by the Company’s CEO to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

q.              Cash flow statement

The cash flow statement is prepared using the indirect method.  Changes in statement of financial position items that have not resulted in cash flows such as translation differences, equity settled share-based payments and other non-cash items, have been eliminated for the purpose of preparing this statement.  Assets and liabilities acquired as part of a business combination are included in investing activities.  Dividends paid to ordinary shareholders, interest paid and advances and repayments of long- term debt are included in financing activities. Long-term debt includes the senior secured facilities and unsecured senior notes (note 12(a) and 12(b)) and advances and repayments have been disclosed on a net basis.

r.               Recent accounting pronouncements

Accounting Pronouncements not yet adopted

The following pronouncements from the International Accounting Standards Board (“IASB”) are applicable to DCPayments and will become effective for future reporting periods, but have not yet been adopted:

·                  IFRS 15 Revenue from Contracts with Customers - On May 28, 2014 the IASB issued IFRS 15 Revenue from Contracts with Customers.  The new standard is effective for fiscal years ending on or after December 31, 2018 and is available for early adoption. IFRS 15 will replace IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers, and SIC 31 Revenue — Barter Transactions Involving Advertising Services. The Company intends to adopt IFRS 15 in its consolidated financial statements for the annual period beginning January 1, 2018.

·                  IFRS 9 Financial Instruments - On July 24, 2014 the IASB issued the complete IFRS 9. IFRS 9 introduces new requirements for the classification and measurement of financial assets. Under IFRS 9, financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. The standard introduces additional changes relating to financial liabilities. It also amends the impairment model by introducing a new ‘expected credit loss’ model for calculating impairment. The effective date for IFRS 9 is for annual periods beginning on or after January 1, 2018 and must be applied retrospectively with some exemptions.

13

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

·                  IFRS 16 Leases -  On January 13, 2016, the IASB issued IFRS 16 to replace IAS 17.  The effective date for IFRS 16 is for annual periods beginning on or after January 1, 2019 and the standard can be applied either retrospectively or prospectively. IFRS 16 will require lessees to recognize a lease liability that reflects future lease payments and a ‘right-of-use-asset’ for most lease contracts.

The Company does not intend to early adopt these amendments discussed above in its consolidated financial statements. The extent of the impact of adoption of these standards has not yet been determined and the Company is currently assessing the impact of adopting these pronouncements.

4.              Acquisition

a.              Business acquisitions

2015

For the year ended December 31, 2015, no business acquisition was completed by DCPayments.

2014

On October 31, 2014, DCPayments completed the acquisition of the ATM business of Ezeatm Limited in Australia (ASX:EZA). The Company acquired all of the outstanding shares of Ezeatm Services Pty Ltd. (“Eze”), a subsidiary of Ezeatm Limited together with all the ATM business assets for total consideration of A$12.8 million, subject to customary closing purchase price adjustments (the “Eze Acquisition”).

Eze operates ATMs across a diverse portfolio of ATM locations. A total of approximately 1,325 ATM sites and related contracts were acquired as well as the related business and staff.

The purchase was accounted for using the acquisition method, with DCPayments being the acquirer for accounting purposes, whereby the assets and liabilities are recorded at their fair values with the excess of the aggregate consideration over the fair value of the identifiable net assets allocated to goodwill.

The total purchase consideration was allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the date of acquisition. The allocation resulted in goodwill of approximately $3.2 million, which has been assigned to the Company’s Australasia reporting segment, and is primarily attributable to the value of synergies anticipated through the combination of the Eze business with the existing Australasian operations and offices. The final allocation was as follows:

14

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

On closing, Eze had outstanding purchase orders for US$3.5 million with ATM fleet equipment suppliers. The purchase of the ATMs was completed in order for the fleet to be replaced with Europay, MasterCard and VISA (“EMV”) compliant ATMs over the ensuring two year period, with the first delivery in January, 2015.  Pursuant to the acquisition, DCPayments assumed the commitment for these purchase orders. The total purchase consideration of $12.6 million does not include this commitment. ATMs acquired and included in property and equipment will be depreciated over an average 12 month remaining life.

Total costs incurred in connection with the Eze Acquisition and included in acquisition-related expenses were approximately $0.4 million.

For the year ended December 31, 2014, the business combination resulted in the following approximate contribution to DCPayments from the date of acquisition to December 31, 2014:

Pro-forma Results

Had the Eze Acquisition occurred on January 1, 2014, for the year ended December 31, 2014, DCPayments estimates that pro-forma revenue and net income before taxes would have been approximately $292 million and $1.3 million, respectively. The pro-forma net income before taxes  is calculated after giving effect to the impact of fair value assessments and certain pro-forma adjustments including amortization of the acquired intangible assets and depreciation of property and equipment, but does not include any pro-forma interest adjustments. The pro-forma financial results are not necessarily indicative of the actual results that would have occurred had the transactions been completed on January 1, 2014, nor does it reflect the impact of any potential operating efficiencies, savings from expected synergies, or costs to integrate the operations. The pro-forma financial results are based on the results of the acquired business as reported by the former owners and are not necessarily indicative of the future results to be expected for the consolidated operations.

b.              Asset acquisitions

During 2015, DCPayments acquired certain Canadian, Australian and European assets of several privately held corporations engaged in ATM services for consideration of $7.9 million, net of cash acquired, subject to customary performance holdbacks and normal course purchase adjustments.

During 2014, DCPayments acquired certain Canadian assets of several privately held corporations engaged in ATM services for consideration of $0.7 million, subject to customary performance holdbacks and normal course purchase adjustments.

The majority of the assets acquired consist of ATMs and the residual rights in contracts to operate and place ATM machines at certain locations. These contracts are valued based on the remaining term of each agreement and the expected net cash flow from that agreement value is allocated to intangible assets and amortized in accordance with the Company’s policy.

15

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

5.              Trade and other receivables

Trade and other receivables are unsecured, non-interest bearing and are generally on 30-90 day terms. The analysis of trade and other receivables is as follows:

In determining the recoverability of trade and other receivables, DCPayments performs a risk analysis considering the type and age of the outstanding receivables and the credit worthiness of the counterparties.

6.              Inventories

The amount of inventories recognized as an expense was approximately $9.1 million (2014: $7.9 million) which is recognized in cost of sales.

DCPayments’ entire inventory is pledged as security under a general security agreement with its secured lenders.

16

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

7.              Property and Equipment

17

Notes to the Consolidated Financial Statements

For the years ended December 31, 2015 and 2014

(Tabular amounts in thousands of Canadian dollars, except as noted)

8.              Intangibles and goodwill