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4
Risk Factors
Market risks
24
Worldline
2016 Registration Document
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
Market risks
4.4
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.