Worldline - Registration Document 2016

Operation and financial review Executive Summary

Executive Summary 9.4

To very dynamic e-Ticketing activities, with increased project ● delivery with railways companies in the UK and higher activity in Latin America; To solid e-Government Collection business activity, notably ● in healthcare and tax collection services in Latin America, and more project work delivered with French and European government agencies. Revenue grew in all geographies except the United Kingdom (-13.8%), which was impacted by the termination as planned of the VOSA contract aforementioned. Revenue in Emerging the termination of the Radar contract in June 2016. markets (Latin America and Asia) increased by +16.1%, followed by Belgium (+9.2%), Rest of Europe (Finland, the Netherlands, Italy and Spain) by +8.5%, and Germany & Central and Eastern Europe (+4.5%). Revenue in France was stable (+0.3%) despite As a percentage of revenue, Worldline’s Operating Margin before Depreciation and Amortization (“ OMDA ”) increased by was generated with a lower operating margin (-240 basis points). the new Equens perimeter. Mobility & e-Transactional Services new revenue, that almost offset the two terminated contracts, margin improvement, while the division continued to invest in security infrastructure and exercised effective cost control over (+340 basis points), thanks to growing volumes and favorable pricing mix mainly in Belgium as well as a margin improvement in the UK on private label cards contracts. In Financial Services (+160 basis points), increasing volumes in card processing led to The backlog at the end of December 2016 amounted to € 2.6 billion . It includes the backlog acquired from Equens on +90 basis points (“bp”) or €+20.0 million and reached € 258.7 million ( 19.8% of revenue ) compared with 2015, exceeding the objectives of the year. This improvement was recorded mainly in the Merchant Services & Terminals division October 1, 2016 for € 889 million, reflecting mainly the application of the Group’s reporting definitions to the commercial contracts with equensWorldline’s banking shareholders. The total number of employees was 8,725 at the end of December 2016 compared with 7,354 at the end of December 2015, representing an increase of +1371 employees low at 5.9%, slightly reducing compared to last year. over the year, out of which +1279 employees joining from Equens, Paysquare and KB Smartpay on October 1, 2016. The Direct hirings amounted to 808 employees, out of which 80% aged 35 or younger. Attrition rate (voluntary leavers) remained

compared with 2015. The Global Business Lines Merchant Services & Terminals and Financial Services contributed to the revenue growth, while Mobility & e-Transactional Services was impacted by the termination of two historical contracts. At constant scope and exchange rates, Worldline revenue stood at € 1,309.2 million representing an organic growth of +3.5% Merchant Services & Terminals , which represented 33.6% of Worldline’s revenue in 2016, grew by +7.3% organically and reached € 439.6 million . This performance was mostly due to a double digit growth in Commercial Acquiring driven by higher transaction volumes, good operational performances, and positive price/volume mix effects in Benelux as well as by the good dynamism of the Group’s business in India. Sales of Service kiosks sales in the UK. Payment Terminals grew very satisfactorily as well, thanks to commercial successes in the Netherlands, in Germany and with resellers on international markets. Revenue in Private Label Cards & Loyalty Services was impacted by lower Digital Self Representing 38.2% of Worldline revenue in 2016, Financial Services revenue reached € 500.0 million growing by +4.9% was offset by less project activity compared with last year. good volume growth on core card issuing activities. Digital banking benefited from the new contract signed with NS&I in the UK. In the Account Payments division, the solid volume growth of SEPA transactions, in particular on the iDEAL platform, at constant scope and exchange rates. This performance was mainly driven by Acquiring Processing activities, thanks to increased run revenue. Sales in Issuing Processing increased as well, driven by Authentication and Fraud services, as well as by represented 28.2% of Worldline’s revenue in 2016, was € 369.6 million , declining by -2.5% organically. As previously communicated, e-Government Collection was impacted by the termination of both the automated traffic offence management system (the RADAR contract) in France in June 2016 and of the Revenue in Mobility & e-Transactional Services , which could be achieved thanks: VOSA contract in the UK public sector, which occurred at end of Q3 2015. Excluding the negative comparison effect arising from those contract terminations, the growth rate of Mobility & e-Transactional Services was above +15%. This performance To a double digit growth in e-Consumer & Mobility activities, ● with several new contracts signed and projects ramp-up mainly in France and in Germany;

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Worldline 2016 Registration Document