WORLDLINE_REGISTRATION_DOCUMENT_2017

The Group’s business Description of the Group’s three Business Lines services [GRI 102-2]

MRL Posnet, besides reinforcing our position in India with complementary asset, gives Merchant Services access to low cost Terminals solutions adapted to Indian market, to new market segment (small & medium banks) and brings opportunity to lower cost base by gaining extra scale. Since January 1, 2017, to respond to the needs of each business and provide merchants with solutions to help transform and grow their business, the Group as grouped its services in two divisions. Payment services (Commercial Acquiring, Omni-channel ● Payment Acceptance, Terminal Solutions) have been grouped under the name “Merchand Payment Services”. Digitals Services (Digital retail, Private Label Cards and ● Loyalty Services) have been grouped under the name “Merchand Digital Services”. In addition to those identified above, principal clients of the Group for this global business line include Tesco, Sainsbury’s, SNCF, BP, Indian Oil Corporation, Bharat Petroleum, Hero Cycle, Hindustan Unilever, Paypal, Spotify, Airbnb. The Merchant Services business generated a revenue of € 535.5 million in 2017, with an OMDA margin of 21.0 % (€112.3 millions) The Merchand Payment Services are organized around three central department: Product and project; ● Commercial Strategy; ● Operations. ● While the commercial department is managed either at the local level or at the global level depending on the type of merchands. “Merchand Payment Services” mainly operate in Belgium, Luxembourg, Netherlands, Germany, Poland, Czech Republic, United Kingdom, France, Spain, Slovakia, Sweden and India The Group expects Merchant Payment Services to remain its first growth engine, with an organic growth rate expected at mid- to high- single digit, thanks to fast volume growth in Commercial Acquiring and e-payment acceptance, expansion in fast growing geographical areas such as Germany, Central & Eastern Europe and India following the recent acquisitions of MRL Posnet, and acceleration of sales of omni-channel proven solutions (supported by recent acquisition of DRWP), such as retailer’s wallet, digital retail and merchant data analytics, central acceptance, payment facilitator and collecting solutions. C.1.1.1.1 The Group, which is a licensed payment institution in The Netherlands, Sweden and Belgium, where it is the leading commercial acquirer, conducts Commercial Acquiring activities principally in the following countries: Belgium, the Netherlands, Luxembourg, Germany, Czech Republic, Slovakia and India. In order to accept payment cards through international card schemes such as Visa and MasterCard and local debit card schemes such as Bancontact, a merchant must contract with a Commercial Acquiring Merchant Payment Services C.1.1.1

payment institution (or bank) that is a member of the card scheme network. Acquiring is the business of contracting merchants for payment card acceptance. The key role of the acquirer is to transfer the funds received during a card transaction from the cardholder’s issuing bank to the merchant’s bank account. A commercial acquirer also effectively underwrites the credit quality and integrity of the Merchant Services, because the acquirer is required to refund to the issuing bank the amounts paid if a merchant does not deliver the goods to the end customer. To be an acquirer, a company must hold a license as a payment institution. See Section C.5, “Regulation” of this Registration Document. Through its ability to offer end-to-end solutions, the Group provides merchants with a one-stop-shop for Commercial Acquiring services. The Group manages and ensures the quality, reliability and availability of payment services, allowing merchants to focus on their business. In all the mentioned countries earlier the Group provides merchants with a contractual relationship that covers all major international payment schemes (Visa, MasterCard, Diners, UnionPay, JCB), while in Belgium, the Belgian national debit card scheme (Bancontact) is also offered to its merchant base. The Group has an attractive combination of solutions and capabilities, both in the front and back office, to deliver cutting edge, seamless multi-device payment related services. The Group’s acquiring platform is built around several modules that manage all types of payments (EMV, contactless, telephone order, 3-D secure, recurring payments, unattended, etc….) across multiple channels (point of sale, e-Commerce, mobile commerce) and from different acceptance solutions. The Group’s solution includes the delivery of consolidated enhanced reporting to merchants and supports a wide range of currencies for card transactions. The Group’s solutions also incorporate robust fraud prevention services to help merchants and cardholders reduce fraudulent transactions. Beyond simply connecting merchants to the payment scheme network, the Group supports merchants at every step of their relationship with their customers, allowing them to significantly increase the number of payment transactions generated by their business. The turn-key solutions that the Group offers to its merchant clients cover all aspects of the electronic payment chain (Commercial Acquiring, payment Terminals, payment processing, point-of-sale marketing campaigns, etc.). The Group offers a number of payment-related value-added services, such as DCC, fraud detection, customer feedback surveys, loyalty services as well as end-to-end solutions for implementing company-specific gift and loyalty card programs. Building on its strong historical position in Belgium as the leading commercial acquirer, Worldline has successfully expanded (both organically and via several acquisitions and alliances) its Commercial Acquiring business initially to the Netherlands, Luxembourg and Slovakia and during the course of 2016 to Germany and Poland (via the acquisition of Paysquare) and Czech Republic (via KB SmartPay). 2017 was the year of product expansion from Belgium (strong historical position) to other countries in portfolio, out of which, packs (bundled commercial offer including transaction, Terminals, VAS and support for mass market) is a significant success, in Belgium and other countries

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Worldline 2017 Registration Document