Worldline - Registration Document 2016

Financial Information concerning the Group’s Assets and Liabilities, Financial Condition andResults Group Consolidated Financial Statements

Credit and/or CounterpartyRisk counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group believes that it has limited exposure to concentrations of credit risk due to its large and diverse customer base. The Group’s greatest credit risk Credit and/or counterparty risk refers to the risk that position is borne with respect to its financial institution customers. The Group manages this credit risk by consistently selecting leading financial institutions as clients and by using several banking partners. The Group is also exposed to some credit risk in connection with its commercial acquiring and checks services businesses: provides a performance guarantee to the merchant in respect the cardholder’s payment. Therefore, the Group is Commercial acquiring. For each transaction, the Group ● cardholder. Additionally, the Group offers a guarantee of “service rendered” to the cardholder. Accordingly, in the exposed to a credit risk in the event of non-payment by the

event a merchant goes bankrupt (or ceases to operate) before delivering the product or rendering the service time that they are actually rendered (e.g., ticket purchases purchased by a cardholder, the cardholder can require the Group to reimburse it for the amount of the transaction. This credit risk exposure is especially significant where services are purchased through e-Commerce well in advance of the through travel agencies). The Group monitors these risks by selecting financially sound clients, requesting guarantees (collateral build up, delegation of insurance, etc.) and checking daily transaction flows to avoid excessive exposure to these risks; merchants accordingly. bad Cheques, the activity can become loss-making. The Group manages this risk by analysing bad debt levels for each type of merchant business and adjusts fees charged to Group pays its merchant clients indemnities for unpaid Cheques that have been approved by the Group based on a credit scoring system. To the extent that fees received from merchants for this service are less than the average levels of Cheque services. Under its Cheque Service business, the ●

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Worldline 2016 Registration Document