WORLDLINE_REGISTRATION_DOCUMENT_2017

Risk Factors [GRI 102-15] and [GRI 102-11] Legal Proceedings

Legal Proceedings F.6

The Group is involved in legal, administrative and regulatory proceedings in the ordinary course of business. The Group records a provision in cases that it considers likely to result in financial loss to the Company or one of its subsidiaries, where the amount of such loss can reasonably be estimated. The low level of claims and litigation is attributable in part to self-insurance incentives and the vigorous promotion of the quality of the services performed by the Group and the intervention of a fully dedicated risk management department,

which effectively monitors contract management from offering through delivery and provides early warnings on potential issues. All potential and active significant claims and disputes are carefully monitored, reported and managed in an appropriate manner and are subject to legal reviews by the Group Legal department. Group management considers that sufficient provisions have been made.

Labor claims

F.6.1

There are approximately 9,400 employees in the Group and relatively few labor claims. In almost every jurisdiction there are no or very few claims. Latin America is the only area where there is a significant number of claims but such claims are often of low value and typical for companies operating in this region.

The Group is a respondent in a few labor claims (mainly in France, Spain and Germany), but in the Group’s opinion most of these claims have little or no merit and are provisioned appropriately. The labor claims have been provisioned for an overall amount of € 0,5 million as inscribed in the consolidated financial statements as at December 31, 2017.

Commercial claims

F.6.2

There are a small number of commercial claims across the Group. Litigations are handled by the Group Legal department. The Group is also facing a small number of IP or unfair practice cases which are, in the Group’s opinion, of a speculative nature in which the claims are inflated and not founded. The total amount of the provisions for commercial litigation risks in the consolidated accounts closed as of December 31, 2017, to cover for the identified commercial claims and litigations, added up to € 0.8 million.

that this patent was infringed by the five defendant companies and asks that they be ordered jointly and severally to pay damages in the amount of € 42.5 million. Pursuant to an agreement between the Company and the other defendants, any damages will be paid exclusively by the Company. On March 7, 2014, the court dismissed TrustSeed’s action for failure to state a claim, finding that TrustSeed had not shown that it had the patent rights that it claimed to have. On September 23, 2014, TrustSeed decided to file its appeal submissions asking the Court of Appeal to consider its claim admissible in order to have the case tried on the merits by the first instance judge. On October 27, 2015, the Paris Court of Appeal confirmed the Paris court’s judgement of March 7, 2014 and thus rejected TrustSeed’s claims. TrustSeed filed a final appeal (pourvoi en cassation) with the French civil Supreme Court (Cour de cassation) On June 14, 2017, the French Supreme Court dismissed TrustSeed’s final appeal. This legal proceeding is now closed. This legal proceeding did not and does not have an

F

TrustSeed Litigation

An action for patent infringement was brought before the regional court of Paris by TrustSeed (“TrustSeed”) against Banque Palatine and the Company, as well as three of the Company’s clients: La Caisse d’Epargne et de Prévoyance d’Ile de France, the Economic Interest Group IT-CE, and Natixis Paiements. TrustSeed claims that it holds a patent relating to a

impact on the Group’s consolidated financial statements and no procedure for authenticating a bankcard user who makes an provision nor liability have been recorded in connection online payment by sending a code by text message. It claims therewith in the Group’s consolidated financial statements.

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Worldline 2017 Registration Document