Worldline - 2020 Universal Registration Document

RISK ANALYSIS Risk factors

People [extra-financial risks – Responsible employer challenges] F.2.2

As part of its acquisition strategy, the Group’s ability to retain employees and key competences in the acquired companies is essential. Failing in those domains might impact the Company as it may limit the organization’s ability to provide high quality services as contractually agreed followed by penalties/claims, win opportunities or loss of customers and reputation damage. Risk management The Group has defined a set of programs and mitigating measures to address these people risks. Those measures are further detailed in Section D.3 “Being a responsible employer”. in offering new or updated services, failure to differentiate the Group’s services or to accurately predict and address market demand could render the Group’s services less desirable to its clients or even obsolete, which, in turn, could have a material adverse effect on the Group’s business, financial condition or results of operations. Moreover, the projects that the Group undertakes to enhance its technological infrastructure in response to evolving market trends require significant investment and no assurance can be given that the trends, products or services such enhancements are designed to address will develop as expected or whether such efforts will be successful. If the Group invests significantly in Research and Development efforts targeting new services and solutions for which a market does not develop as anticipated or at all, it could have difficulty recovering the costs it has incurred in developing these new services and solutions and, to the extent that such investments have been capitalized, incur significant write-offs. Risk management The Group is ensuring a continuous monitoring on market trends and new products, services as well as innovations, which allows the Group to continuously adapt its portfolio to accommodate the emerging new payment methods. Sales transformation streams are creating and extending networks between sales of various countries and organizations, which support cross fertilization and cross GBL value proposition. The Group has defined a set of programs and mitigating measures to address these innovation risks. Those measures are further detailed in Section D.2.2 “Spur sustainable innovation”.

All of the Group’s businesses functions are at the intersection of rapidly changing technological, social, economic and regulatory developments that requires a wide-ranging set of expertise and intellectual capital. For the Group to successfully compete and grow, it must retain, recruit and develop the necessary personnel who can provide the needed expertise across the entire spectrum of the Group’s intellectual capital needs. The market for qualified personnel, particularly in the area of information and payment technology, is highly competitive and is a factor contributing to increase the risk related to people retention and acquisition.

Market challenges F.2.3

The global payment and digital services industry as well as the e-consumer and mobility services area in which the Group operates is subject to rapid and significant technological change, new product and service introductions, evolving industry standards, changing customer needs and preferences and the entrance of non-traditional competitors.

Innovative portfolio F.2.3.1 [extra-financial risks –

Build customer trust/Spur sustainable innovation]

The global payment and digital services market in which the Group competes is subject to rapid and significant technological change, new product and service introductions, evolving industry standards, changing customer needs and preferences and the entrance of non-traditional competitors. In order to remain competitive, the Group must anticipate and respond to the fast-changing market environment, which requires significant investment in Research and Development. The Group must also optimize its technological infrastructure, including its payment processing and other IT platforms to best position it to profit from market growth and new services. While the Group expects innovative solutions developed to address the ongoing digital transformation of retailers and other businesses to comprise an important and increasing component of the Group’s services portfolio going forward, the Group may fail to keep pace with these changes, to continue to develop and introduce attractive and innovative services or re-align and rationalize offerings after acquisitions. Any delay

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