Worldline - Registration Document 2016

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Risk Factors Market risks

its merchant service charges to the levels of its competitors (leading to a reduced or negative margin) and re-position itself as a pan-European acquirer, which could have a material adverse effect on the Group’s business, financial condition, and results of operations.

As 4-party-schemes Visa Europe and MasterCard will fall within the scope of the Regulation and need to adapt their business models, fee models and offer portfolios within the given timelines accordingly. Consequently, the Group would be obliged to align with the International Card Schemes’ requirements in particular for Commercial Acquiring, i.e. adapt

4.4

Market risks

Exchange Rate Risk

4.4.1

expenses in the local currency. Since the Group’s financial statements are denominated in euros, its revenue are affected by the relative value of the euro versus the currency of the non-euro zone countries in which it generates revenue (currency translation exposure). In terms of currency transaction exposure (i.e., a mismatch between the currencies in which revenue is generated and costs are incurred), the Group considers it exposure to be limited as its costs in the euro zone are generally incurred in euros and its revenue is generated in euros and in non-eurozone countries it generally makes its sales and incurs the majority of its operating The bulk of the Group’s revenue, expenses and obligations are denominated in euro. In 2016, 78.8% of the Group’s revenue was generated in euro-zone countries whereas 21.2% was generated in non-euro zone countries, including 9.5% in pounds sterling.

The intercompany reinvoicing of Central costs are labelled in Euros. The variation of the balances linked to exchange rate fluctuations are booked in financial statements of each subsidiary and may impact positively or negatively the financial result of the Group. The Group maintains a policy for managing its foreign exchange position if and to the extent it enters into commercial or financial transactions denominated in currencies that differ from the relevant local currencies. Pursuant to this policy, any material foreign exchange rate exposure must be hedged as soon as it occurs using various financial instruments, including, principally, forward contracts and foreign currency swaps. As of December 31, 2015, the Group did not have any material foreign exchange rate exposure and did not have any such hedging instruments in place.

Interest Rate Risk

4.4.2

All of the Group’s borrowings, the vast majority of which are with Atos as lender, and deposits bear interest at floating interest rates mainly based on Euribor or EONIA plus or minus a margin as indicated in the table below. The Group considers that its

exposure to interest rate fluctuations is not material in light of its relatively low level of indebtedness (€ 26.3 million) and of its net cash position of € 398.9 million as of December 31, 2016.

Liquidity Risk

4.4.3

statements. Nearly all of the Group’s borrowings and cash consist of financing and cash deposits with maturities of less than two years provided by Atos through intercompany loans, current accounts and other financial instruments. As such, the Group currently benefits from the financial support of Atos for its liquidity requirements. For more information about the Group’s financial liabilities, see Note 20 of the consolidated financial

The Group benefit from a € 300 million revolving credit facility granted by Bull International, maturing on June 26, 2019, in order to cover the Group’s liquidity requirements, including temporary fluctuations in its working capital needs. For more information, see Chapter 10, “Liquidity and Capital Resources” of this Registration Document.

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Worldline 2016 Registration Document

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