Worldline - Registration Document 2016

Risk Factors Risks related to the Group’s business and industry

payment services. There is a risk that these services disrupts the (Samsung Pay) and Google (Google Wallet) propose mobile economics of other participants in the payment value chain. services to newmarkets. The Group may encounter difficulties expanding its existing new markets entered may make the Group’s products less that the regulatory frameworks or consumer preferences in the strategy involves a number of significant risks including the risk Group’s markets to other markets served by the Group. This services that have experienced success in one or more of the the geographic footprint for its services including by expanding One of the core elements of the Group’s strategy is to expand business, financial condition, results of operation and prospects. which, in turn could have a material adverse effect on its markets, the Group’s growth strategy may not be successful, not able to successfully expand its existing service to new providers of such services in these new countries. If the Group is particularly in light of the competition it faces from incumbent to expand its services into new markets will be successful, attractive. There can be no assurances that the Group’s efforts could adversely affect the Group’s revenue by reducing the Consolidation in the banking and financial services industry more dependent on a more limited number of clients. number of its existing or potential clients and making it the Group’s clients may sell business operations to entities that clients may merge with entities that are not the Group’s clients, existing contracts. Namely, the Group faces the risk that its adversely affect its revenue or lead to the non-renewal of number of the Group’s clients and potential clients, which could Mergers and consolidations of financial institutions reduce the consolidations in the banking and financial services industry. In recent years, there have been a number of mergers and or merge with or are acquired by other entities that are not the could be particularly affected. Further, if the Group’s clients fail comprises principally banks and other financial institutions, Software Licensing”) global business line, whose customer base of the Financial Services (previously “Financial Processing & agreements and projected revenue with these clients. Revenue internally, thereby adversely impacting the Group’s existing platforms operated by the Group’s competitors or managed clients may otherwise cease to exist or migrate to other are not the Group’s clients or the Group’s financial institution financial condition, results of operations and prospects. could have a material adverse effect on the Group’s business, currently provides or could provide. Any of these developments perform in-house some or all of the services which the Group leverage in negotiating terms with the Group or could decide to resulting from mergers or consolidations would have greater also possible that the larger banks or financial institutions may discontinue or reduce their use of the Group’s services. It is Group’s clients, or that use fewer of the Group’s services, they

effect on its business, financial condition, results of operations or services may materially decrease, which could have an adverse unable to effectively respond to competition, demand for its various markets in which the Group operates. If the Group is more effectively capitalize on potential consolidation trends the extent that the Group’s competitors or new industry players payment scheme to other commercial acquirers. Additionally, to in Belgium due to the opening of the Bancontact/Mister Cash In particular, the Group faces potentially increased competition business, financial condition, results of operations and prospects. services, which could also materially and adversely affect its Group faces significant price pressure on its products and contends with across the markets in which it operates, the prospects. Moreover, given the level of competition the Group such as financing, that the Group is unable to offer. financial institutions and able to offer clients additional services, disadvantage vis-à-vis its competitors that are fully licensed for a financial institution license, the Group may find itself at a the businesses in which it currently operates without the need from which it currently benefits. Furthermore, with respect to significantly, possibly reducing certain competitive advantages nature and scale of the Group’s competitors, may change particularly in Europe, the competitive landscape, including the within the currently fragmented payment services industry, services industry, are not yet subject to the same level of legal or regarded by consumers and, as new entrants to the payments considerable financial resources and robust networks, are highly based. Moreover, these non-traditional competitors have which much of the industry’s current business model is largely traditional interchange-based payment processing systems on “closed loop” payment methods that generally bypass the Samsung, and Google, which offer alternative peer-to-peer and emerging from non-traditional competitors, such as PayPal, The electronic payment industry is facing new competition rates comparable to those in the Group’s traditional card used to process the related transactions or cannot be offered at electronic payment market, and the Group’s services are not non-traditional competitors gain a greater share of the profitable than its role in traditional card processing. If these processing these payments is less extensive and may be less accommodate these new payment methods, the Group’s role in Although many of the Group’s services are designed to are the industry’s more traditional players such as the Group. regulatory scrutiny in terms of pricing and business practices as and prospects. on the Group’s business, financial condition, results of operation processing business, it could also have a material adverse effect payment using Apple’s iPhone’s devices. In addition, Samsung countries, based on NFC technology. This technology allows United States in 2014 and subsequently in several European services. Notably, Apple launched its Apple Pay service in the Also, major industry players have launched mobile payment

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Worldline 2016 Registration Document