Worldline - Registration Document 2016

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Business Industry andmarket overview

As Forrester notes, “consumers are embracing mobile, social, tablets, and cross-touchpoint experiences like click-and-collect and no longer think in terms of channels, instead expecting seamless service on every touchpoint”. Challenge for retailers is to answer these omni-channel consumer expectations immediately, and in this context, retailers need to implement new services such as Drive solutions, as well as Digital Stores through virtual shelves, mobile seller, or dynamic brand content to engage shoppers in an innovative way and to improve store efficiency. This increased interaction creates new sales opportunities for retailers, while also providing rich customer data that can help companies better understand and anticipate consumer needs. At the same time, these new consumer preferences create significant IT challenges for retailers. Forrester notes that as customers continue to embrace multichannel services, retailers are finding that using manual workarounds for “siloed” systems can no longer support the growing volume of orders. This is forcing retailers to revisit their systems and reinvent the operations; this does include a unique cross-channel repository of data (product catalogue, prices, offers, etc.), innovative payment solutions such as wallet or mobile terminals to make the sales process easier, processing of big data and advanced data analytics, and implementation of contextual advanced services such as indoor location, interactive products, or proximity marketing. A similar process is underway in other sectors, creating new digital businesses with potential to create new markets and drive even further non cash payment transaction growth. Transport systems worldwide are pursuing “smart transport” solutions that make use of technology to improve fare collection, facilitate multi-modal transportation, improve traffic flows and provide better information to passengers on their travel options. Governments are increasingly relying on digital technology to make government services and recordkeeping more efficient, to enhance healthcare information systems, and to improve traffic and parking enforcement as well as tax collection. In parallel, the increasing universe of connected devices is creating a new “Internet of things” that is expected to enable a range of new services using connected vehicles, connected appliances and other Connected Living applications, to improve product performance (preventive maintenance, warranty cost, product launch reliability, etc.) or customer satisfaction (new and extended services, pay per use business model, advices on product use, etc.)

These trends are creating a range of new markets with significant growth potential: Forrester forecasts that European online retail sales will ● grow to € 191 billion by 2017; Markets and Markets forecasts that the market for ● machine-to-machine solutions will grow from € 15.79 billion in 2014 to € 32.34 billion by 2020, representing a CAGR of GSMA and SBD estimate that the global market for ● connected vehicles will increase from € 13 billion in 2012 to € 39 billion by 2018. SBD forecasts that nearly 36 million cars embedded with factory-fitted mobile connectivity systems will be shipped in 2018, up from 5.4 million in 2012. Markets and Markets estimates the connected vehicles market is expected to reach € 42.93 billion by 2020, at a CAGR of 10.82% from 2014 to 2020. connected cars or smart watches, have experienced dramatic growth in recent years, and this growth is expected to continue. According to CounterPoint Research, shipments of smartphones reached an all-time high in 2016, exceeding the 1.5 billion mark. This represents an annual growth of 3%, however in the fourth quarter of 2016 this growth accelerated to 9 percent. Smartphones, tablets and other mobile devices, such as The rise of the internet, 3G and 4G mobile connectivity means consumers are used to a world of always on connectivity. As a result, their expectations when engaging with the commercial world have increased, from the moment of initial engagement through the purchase and payment, consumers expect a smooth end-to-end experience, irrespective of whether this is on the internet, face-to-face or cross-channel. New Fintechs have often been quicker to exploit this than traditional incumbents, refining the customer-facing interaction to provide a seamless experience. 11.57% between 2015 and 2020;

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Worldline 2016 Registration Document