Worldline - Registration Document 2016

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

activities. the Group’s merchant clients or others engage in fraudulent chargebacks resolved in favor of their customers, and when Commercial Acquiring business refuse or cannot reimburse The Group incurs liability when its merchant clients in its cardholder. In the context of the Group’s Commercial Acquiring purchase price is credited or otherwise refunded to the transaction is normally “charged back” to the merchant and the merchant is not resolved in favor of the merchant, the In the event that a dispute between a cardholder and a operations, particularly with respect to its e-Commerce services. on the Group’s business, financial condition and results of by the Group’s merchants could have a material adverse effect chargebacks in the future. Any increase in chargebacks not paid cardholder. The Group may experience significant losses from Group bears the loss for the amount of the refund paid to the any other reason, to reimburse the Group for a chargeback, the the merchant refuses or is unable, due to closure, bankruptcy or the merchant’s account or reserve account (if applicable), or if business, if the Group is unable to collect such amounts from approved by the Group are not paid. services, the Group pays indemnities to customers when checks Similarly, in the context of the Group’s check processing fraud could increase in the future. to incur other liabilities. Moreover, it is possible that incidents of clients and card management organizations, or cause the Group Group’s reputation and jeopardize its relationships with its bank could increase the Group’s chargeback liability, damage the and fraud. Failure to effectively manage risk and prevent fraud methods to engage in illegal activities such as counterfeiting services sold. Criminals are using increasingly sophisticated invalid card, or intentionally fails to deliver the merchandise or credentials to record a false sales or credit transaction, uses an counterfeit credit or debit card, card number, or other a merchant or other party knowingly uses a stolen or merchants or others. Examples of merchant fraud include when electronic payment transactions or credits initiated by Additionally, the Group has potential liability for fraudulent

assurances can be given that insurance coverage to protect business, results of operations and financial condition. No obligations could have a material adverse effect on the Group’s Defaults by the Group’s merchants on their reimbursement business, financial condition, results of operations and prospects. merchants could have a material adverse effect on the Group’s future. Any increase in chargebacks not paid by the Group’s may experience significant losses from chargebacks in the requesting collateral and setting caps for monthly processing, it merchant-related credit risk by establishing reserve accounts, against certain such losses will be effective and adequate. Although the Group has put in place policies to manage financial condition and results of operations. have a materially adverse effect on the Group’s business, respect to the payment processing industry in general could mechanism for consumers or adverse developments with A decline in the use of credit or debit cards as a payment cards and other payment forms which is adverse to the Group, it change in the mix of payments between cash, credit and debit payment mechanism for their transactions or if there is a If consumers do not continue to use credit or debit as a the Group’s revenue could be significantly affected. Also, if payments effected through digital and data processing services, outstrips or occurs faster than the increase in the market for card-based payment market decreases and such decrease digital and data processing areas. To the extent that the overall to cashless payments by means other than cards using other A smaller, but growing, portion of the Group’s business is linked the Group’s business is linked to credit and debit card payments. financial condition and results of operations. A substantial part of could have a material adverse effect on the Group’s business, operations and prospects may be adversely affected. do business, the Group’s business, financial condition, results of regulation that makes it more difficult for the Group’s clients to payments industry in general, such as new legislation or absorbed. Moreover, if there is an adverse development in the higher maturity levels and the initial development expenses are profitability could decrease, at least temporarily until they reach margins are lower in these new areas, then the Group’s terms could harm the Group’s business, particularly in Failure to renew agreements with customers on acceptable high. segments of its business where customer concentration is to provide the same or similar services or cease outsourcing the increase or decrease its scope, seek out the Group’s competitors choice to either renegotiate their contract with the Group, years. At the end of a contract’s term, the Group’s clients have a public sector clients in Latin America have terms of up to 10 length from three to five years, while certain of its contracts with Group’s business. The Group’s client contracts typically vary in Failure to renew client contracts could negatively impact the adversely affected. business, results of operations and financial condition may be rates and contract terms that are favorable to it, the Group’s customer. If the Group is unsuccessful in retaining high renewal economic needs or pressures being experienced by the agreed with the Group due to pricing competition or other Further, certain clients may seek to lower prices previously clients’ business experiences significant volume changes. Group when seeking to renew or extend contracts, or when the relevant activity. Customers may seek price reductions from the

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Worldline 2016 Registration Document