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9
Operation and financial review
Overview
84
Worldline
2016 Registration Document
Geographic Footprint
9.1.2.7
global business lines structure and its increasingly integrated
and standardized IT platforms.
throughout the markets where it operates, leveraging its new
Although the Group provides services across the extended
payment services ecosystem, it currently does not generate
revenue from its full range of services across each of its
principal jurisdictions. As part of its strategy, the Group intends
to gradually expand the geographic footprint of its services
November 8, 2016.
payments are significantly higher in emerging markets, notably
in India, where the Government has put in place a strong policy
to promote non-cash payments, notably through the
demonetization of 500 and 1000 rupee bills decided on
further international growth. While penetration rates in the
Group’s core markets in Europe still show room for growth,
growth rates in adoption of card-based and other non-cash
the Group is earning an increasing proportion of its revenue
from emerging market countries in Latin America and Asia. The
percentage of the Group’s revenue generated in emerging
markets in Latin America and Asia was 9% in 2016, and this
Although most of the Group’s revenue is currently generated in
its core historical markets in Europe (approximately 91% in 2016),
percentage is expected to grow over time as the Group pursues
Seasonality and Period to Period
9.1.2.8
Variability
slowdown in some of the Group’s e-Government contracts that
have lower volumes during holiday periods.
of year holidays, is the Group’s highest revenue quarter, and the
first quarter of the year, when new projects are often in their
early phases, usually shows the lowest revenue. The effect of the
end of year holiday season is offset to some extent by a
Although the Group’s operations typically do not show strong
seasonal variations, the fourth quarter of the year, which is
favorably affected by higher shopping volumes during the end
contracts or the end of life of a terminal product.
While the Group’s results do not typically show strong seasonal
to period to period fluctuations, including non-renewals of
associated profitability of the build and early ramp phases of a
project, a greater or lesser proportion of build revenue from one
period to the next can have a significant impact on revenue and
profitability. A range of other factors could cause or contribute
variations,
the
Group
may
experience
significant
period-to-period fluctuations at the consolidated level or in a
particular global business line or business division. In particular,
given the front-end nature of build revenue and the lower
Changes in Scope
[GRI 102-45] and
9.1.2.9
[GRI
102-49]
2016, following the consolidation of Equens, Paysquare and KB
Smartpay as detailed in Section
9.3, “Significant events of the
year”. The Group’s scope of consolidation could further evolve
given its external growth strategy.
The Group’s scope of consolidation has evolved significantly in
TEAMand TEAM² projects
9.1.2.10
industries in which the Group operates, improve resource
allocation and standardization across its network, and take full
advantage of the Group’s size and global reach. Through TEAM,
the Group leveraged “continuous improvement” initiatives
the globalization of its business, and integrating and
standardizing the Group’s IT infrastructure.
already begun as part of Atos’ similar TOP Program, such as lean
management and improved purchasing efficiency, while
implementing new “efficiency through transformation” initiatives
aimed at increasing the Group’s production volumes, enhancing
In early 2014, the Group had launched “TEAM”, a four-year
the Group aims at improving its operating model, reducing costs
and leveraging its resources and strengths across the Group’s
business to benefit from the strong growth in the markets and
efficiency, industrialization, and standardization program whose
underlying objective was to extract the full value and potential of
the Group by improving the efficiency and integration of all of
its component activities, globally. Through the TEAM program,
million of cost saving by the end of 2017, was realized as soon as
in 2016, by capturing the productivity gains and by finding
additional leavers, which allowed compensating the price
decreases requested by clients.
The TEAM program, which had an objective to generate € 150
improvement opportunities, while introducing new workstreams
centered around transformation and innovation of our core
business.
workstreams. TEAM2 pursue the initiatives that have proven
successful over the long term and where there is still potential
similar to that of the first TEAM program, but incorporating news
Given the good results of this program and the strong internal
mobilization that it has created to deeply transform the
Company, a new TEAM2 program has been launched early 2017.
This new program covers the next 3 years with an ambition
The initiatives Lean, Purchasing, Real Estate, Contract
profitability and Workforce management have been taken into
consideration in the TEAM2 program for the next 3 years, with
the objective to continue progressing in terms of performance
and operational efficiency:
expert task forces to implement remediation processes
when necessary;
Contract profitability.
Further enhance the profitability of
●
existing projects and contracts through improved
monitoring of contract performance and by mobilizing