WORLDLINE_REGISTRATION_DOCUMENT_2017

E

Financials Introduction

Merchand Digital Services. This business line includes: The Group’s omni-commerce solutions are generally sold under mid- to long-term contracts that include fees for designing and implementing the service, and recurring fees generally with an assumed minimum number of transactions, and agreed per-transaction fees above the assumed minimum. Omni-commerce revenue also include revenue from the Group’s redspottedhanky.com e-Commerce site, from which the Group earns commission revenue for the sale of train tickets and other travel-related purchases generally based on a percentage of the value of the items sold, Private Label Cards & Loyalty Services. Revenue from the Group’s private label card and loyalty services are driven primarily by the number of cards or loyalty accounts managed, the level of transactions per account, and average fee per managed account and per transaction. When designing a new loyalty program the Group also typically receives “build” fees for the initial implementation of the program; Revenue of the Financial Services Global Business Line The Group’s Financial Services global business line generates revenue from four business lines: Issuing Processing: The Group earns most of its Issuing Processing revenue from the processing of transactions under long term contracts under which fees are primarily based on the number of credit cards managed and the number of transactions processed. The Group’s card issuing services revenue is therefore primarily a function of the number of cards managed, the average level of transaction activity and the average fee per managed card and per transaction. The Group typically offers volume discounts based on pre-determined bands of transaction volumes and cards managed. When the Group acquires a new client or helps implement new services such as electronic wallets, the Group typically earns a “build” fee for the initial set up of the service, then earns fees based on the number of business transactions processed, Part of Issuing Processing revenue comes from payment Software Licensing fees, paid at the time the software is sold and ongoing maintenance and thereafter support fees charged annually based on a percentage of the initial license fee as well as project revenue to help banks roll out and integrate the software into their existing systems; Acquiring Processing: The Group’s Acquiring Processing revenue is primarily driven by the number of acquiring transactions processed by the Group in countries where it is not itself the commercial acquirer and the average fee per transaction. The Group’s Acquiring Processing business also includes revenue from the processing of cheques (until June 30th, 2017, after which this activity was disposed), a business line that is experiencing a steady revenue decline as consumers increasingly pay for transactions using cards and other non-cash, non-cheque payment methods and whose profitability is adversely affected to the extent of any bad debt losses for which the Group indemnifies merchants,

Part of Acquiring Processing revenue comes from payment Software Licensing fees, as described above; Digital Banking. The Group’s Digital Banking revenue is generated from transaction fees for processing eBrokerage transactions, which are typically charged on a per transaction fee basis. The Group also generates revenue through this business line from projects such as enhancements to Online Banking and mobile banking sites, which are typically charged on a build and run project basis; Account Payments. The Group’s Account Payments division’s revenue is generated from transaction fees for processing OBeP transactions, SEPA credit transfer and direct debit transactions, which are typically charged on a per transaction fee basis. The Group also generates revenue through this business line from projects such as adaptation of client systems to accommodate SEPA transactions, to comply with new regulations. Revenue of theMobility&e-Transactional Services Global Business Line The Group’s Mobility & e-Transactional Services global business line generates revenue from three business lines: E-Ticketing. The Group’s e-Ticketing and journey management services are typically sold under mid- to long-term build to run project contracts. These include initial project implementation fees as well as ongoing fees over the life of the contract based on the number or value of tickets managed. This division’s revenue is largely driven by the number of contracts the Group wins, the mix between projects in the build phase and those in the run phase, the volume or value of transactions, and average pricing terms; Trusted digitization. The Group’s e-Government Collection business line offers a range of services, including large scale digitization services, road traffic enforcement, tax collection, healthcare information and reimbursement systems and other services to public sector entities under a range of contract types, often of significant size. Many of these services are provided on a build to run project basis where the Group earns an initial fee for the design and implementation of the project and thereafter earns ongoing fees for maintaining and running the program based on the system’s capacity. The Group also earns some fees based on the number of transactions or records processed and additional system capacity. After a service has begun operations, the Group may also earn new project revenue to further expand its capabilities; E-Consumer & Mobility. The Group’s e-Consumer & Mobility business line offers a large range of services. Consumer cloud services are typically priced based on the number of end users and the average usage per user. Revenue from these services may also include some project revenue in connection with implementing new services. Contact services are typically based on the number and duration of connections. Connected Living projects typically include build revenue and then an ongoing fee based on the number of connected devices managed.

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Worldline 2017 Registration Document