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20
Financial Information concerning the Group’s Assets and Liabilities, Financial Condition andResults
Material Change in Financial or Commercial Position
235
Worldline
2016 Registration Document
consolidated financial statements and no provisions nor
This legal proceedings does not have an impact on the Group’s
liabilities have been recorded in connection therewith in the
Group’s consolidated financial statements.
Argentina Investigations
acquired by Atos in mid-2011.
conducted by Siemens and was included in the businesses
of their journeys and automatically calculate and process fare
mobile wallets to “touch in” and “touch out” at the start and finish
smartcard schemes for municipal transportation networks in
prices. The Group currently operates several contactless
SA (“Worldline Argentina”), including for the cities of Cordoba,
Argentina through its subsidiary Atos IT Solutions and Services
system in Buenos Aires. This business was originally started and
Mendoza, Salta, Tucuman and La Rioja, as well as for the SUBE
schemes for multi-modal transit platforms that, among other
The Group offers contactless “smart card” fare collection
things, allow passengers to use travel cards, payment cards and
(“LyD”), due to dissatisfaction with CBI’s service and in particular
another subcontractor, Logistica y Distribucion Cuyo Card SA
cash collected.
the inclusion in the funds flow of third party checks in lieu of
In September
2012, Worldline Argentina replaced CBI with
Ribelux Cordubensis, which included CBI Cordubensis SA (“CBI”).
(the “Red Bus” scheme) to a local association of companies, UTE
cash, which is then collected from the various points of sale and
Argentina operates, customers purchase or recharge cards with
Argentina has contracted to operate the schemes. Worldline
deposited in accounts of the municipalities with which Worldline
function
to
subcontractors.
Between
mid-2011
and
Argentina outsources the cash collection and transportation
services with respect to its fare collection scheme in Cordoba
September
2012, Worldline Argentina subcontracted such
In respect of some of the fare collection schemes that Worldline
commenced an internal investigation into the allegations. In
possibly illicit behavior on the part of LyD. The Group promptly
following the emergence of reports in the Argentine press
early 2014, the Group’s internal investigation was expanded
activities, including money laundering and corruption, in the
relaying further allegations of irregularities and possible illegal
functioning of the Red Bus scheme.
potential irregularities in connection with the Red Bus scheme
In late 2013, the Group’s management became aware of
source, which contained allegations about suspicious and
upon receipt of anonymous e-mails, apparently from an internal
Argentina promptly provided the information requested.
documentation relating to the Red Bus scheme. Worldline
further the possible involvement of various parties in acts of
PROCELAC has since then opened a case file to investigate
“criminal association” (asociación ilícita) and tax evasion.
Prosecutor’s Office to provide specified information and
Laundering (PROCELAC) of the Argentine National Public
the Office of the Prosecutor for Economic Crime and Money
On March
28, 2014, Worldline Argentina received a request from
proof that Worldline Argentina or any of its employees violated
The Group’s internal investigation into this matter, which has
departments assisted by external advisors, has not found any
been conducted through its Internal Audit and Finance
matter for the Group.
indicate at this stage the likely or probable consequences of this
PROCELAC investigation is ongoing. It is therefore impossible to
Argentine anti-corruption laws. The Group understands that the
Position
Material Change in Financial or Commercial
20.7
the first quarter 2017 revenue, TEAM2, integration and synergy
since December
31, 2016, other than the information related to Registration Document.
plan and commercial activity, described in Section
12.5 of this
change in the financial or commercial position of the Group
To the Company’s knowledge, there has been no material