Worldline - Registration Document 2016

Business Procurement and suppliers

Procurement and suppliers 6.8

including Toshiba, Flex, and Connectronics, located principally in assembly to multiple contract manufacturing companies, that it does not design itself from Ingenico, Verifone and Pax. Asia and Eastern Europe. The Group procures the few terminals services, particularly in its e-Government business (and more The Group is also a substantial consumer of printing and postal solutions) and bank processing activities in Belgium. It has specifically its automated traffic and parking enforcement Poste, Docapost, Bpost and Pitney Bowes in this respect. subcontracting relationships or contracted partnerships with La The Group’s procurement strategy is to rationalize the volumes the total cost of ownership. So as to reduce the risks of supply necessary for its operations and optimize purchase prices and Group aims to identify critical points in the supply chain and shortages and over-dependency on any single supplier, the suppliers. The Group’s approach to sourcing products and develop plans to guarantee multiple component and service and use of the products and services it requires. services from third parties depends in large part on the nature Notwithstanding its multi-source policy, there is one important supplier: the innovative Samoa II application-specific integrated component used by the Group in its business that has a single payment terminals range. This chip is sourced from circuit (ASIC) chip used in all current models of the Group’s specifications in the context of a long-standing relationship and Faraday/UMC, which manufactures it to the Group’s continued production and supply of this critical chip, the Group pursuant to a long-term pricing agreement. To safeguard the sufficient to cover several months’ supply needs. Additionally, if ensures that Faraday/UMC at all times maintains a stock of chips necessary, Faraday/UMC has the ability to manufacture the chip within three months. at multiple factories, initiate production and deliver the chips

Atos, enabling it to benefit from scale effects (i.e., volume Atos level, while remaining focused on the specific requirements purchasing) through framework agreements negotiated at the procurement teams jointly conduct periodic analyses and of the Group and its client projects. The Group’s and Atos’ implement programs aimed at reducing supply costs through reassessments of procurement costs by category and specifications and demand volume management. negotiations with suppliers, standardization of contracts and conducts its procurement activities in coordination with those of needs for its business and internal requirements. The Group The Group’s procurement division analyses markets and then suppliers of the externally-sourced goods and services that it selects and manages the Group’s relationships with the The primary categories of products and services that the Group Group’s procurement costs, comprise the types of items that are sources externally, and which account for the majority of the particularly IT hardware and software, subcontracted services typically sourced by companies in the IT services sector, telecommunications services. The Group principally uses these such as software development and maintenance and project development needs. The Group’s main suppliers of IT products and services in connection with its data centers and Group’s business involves extensive data processing which itself hardware and software are HP, IBM, Dell, Oracle and SAP. The requires bandwidth intensive telecommunications services, its Other important categories of products and services that the main providers of which are Orange, Belgacom and Verizon. their component parts, printing and postal operator services Group sources from third parties include POS terminals and manufacture of the Group’s connected vehicles products and and, currently to a much lesser extent, hardware used for the other M2M and “connected” solutions. The Group designs most of its payment terminals and related products in-house and outsources their manufacture and

6

65

Worldline 2016 Registration Document

Made with