Worldline - 2019 Universal Registration Document

RISK ANALYSIS Risk factors

In the Compliance area, Worldline is subject to a wide array of stringent regulations, particularly in the following fields: competition law, corruption, controls on exports of dual-use goods, data protection, human rights, international sanctions, fraud, harassment and discrimination, money laundering and terrorist financing.

Worldline has established a specific Compliance risk mapping which is performed by the Global Business Lines and Management Units Compliance Coordinators, leading to a Compliance Risk Heat Map allowing the Compliance function to identify clearly the main compliance risks and define related mitigation actions to be put in place.

F.1.3

Insurance

Worldline Group identifies the principal insurable risks and quantifies their potential consequences for Worldline, and defines the policy with respect to insurances. The Worldline Group entities are covered by the master insurance policies maintained by Worldline, under which they are insured parties and which are centrally negotiated by the Worldline Group. The policies offer coverage for risks regarding property damage and business interruption, general and commercial liability and professional indemnity, cyber, crime, Directors & Officers liability, and others. As such, Worldline has set up a property damage and business interruption policy, valid until December 31, 2020, with a coverage limit of €180 million. Also, Worldline is covered for General and Commercial Liability and Professional Indemnity insurance with a coverage limit of €80 million.

The Group is insured under certain other policies covering other insurable risks for an amount adequate for the risks incurred, taking into account the size of, and risks incurred by the Worldline Group. Deductibles are set at a level intended to encourage good risk management and to control premium costs. The Group also maintains policies required for regulatory reasons. Worldline Group formed in 2019 a dedicated reinsurance company which it wholly owns, Worldline Ré. This reinsurance company covers the Worldline Group’s entities in respect of certain portions of the General and Commercial Liability and Professional Indemnity policy. The insured risks of the dedicated reinsurance company, are also monitored by the subscription committee of the reinsurance company, which ensures that capital and technical reserves are sufficient for the risks incurred and seeks a satisfactory level of diversity in reinsurers.

Risk factors F.2

F

The above-mentioned risk management activities allowed the Group management to select, and rank in priority order, the risk factors specific to the Group which are the most material. They are classified by importance (decreasing in magnitude after taking into account the mitigating measures taken by the Group). The Sections F.2.1 to F.2.4 describe the Group’s major risks i.e. which could have a material adverse impact on its business or results (or its ability to achieve its objectives) and/or a

significant likelihood to occur. The materiality of the risks has been assessed based on the probability of their occurrence and the expected magnitude of their negative impact. In addition, the Section F.2.5 describes the other risks that, if materialized, would affect the Group in its business, or results. However, their impact has been assessed as less significant compared to the risks described in Sections F.2.1 to F.2.4. The table below provides a summarized overview of the main risk

categories:

Challenges

Main Risks

Worldline action plans & KPIs

Build customer trust

F.2.1 Cyber-attack, security of systems and data protection. Refer to Section D. 2.3.

Being a responsible employer

F.2.2 People

Refer to Section D. 3. Refer to Section D. 2.2.

Build customer trust

F.2.2 Market challenges including: F.2.2.1 Innovative portfolio ● F.2.2.2 Competitors’ landscape ●

Build customer trust

F.2.4 Service delivery quality and business continuity

Refer to Section D. 2.3

331 Universal Registration Document 2019