Worldline to host today an Investor Day presenting the next milestone of its Pan-European leadership ambitions

All 2017-2019 objectives raised:

Revenue organic growth:

After 3.5% to 4% for 2017, 5% to 7% for 2018 and 6% to 8% for 2019

OMDA: Above 22.5% in 2019

Free cash Flow: €230m to €245m in 2019

Acquisition of MRL PosNet: reinforcement of Worldline’s presence in India

Paris, October 3rd, 2017

Atos today announces that its subsidiary Worldline [Euronext: WLN], European leader in the payments and transactional services industry, will present during its first Investor Day since the 2014 IPO, held in its Headquarters in Bezons (France), its upgraded ambitions for the 2017-2019 period reflecting the positive developments of its plans during the last 3 years and the increase of its business after the recent acquisitions of Digital River World Payments (announced in July 2017), First Data Baltics “FDB” (announced in July 2017) and lately, MRL PosNet in India, which is announced today.

During today’s Investor Day, the international management team of Worldline will present:

• Vision and strategic execution roadmap of Worldline;
• Business update from each of the three Worldline Global Business Lines;
• Worldline’s innovation roadmap and blockchain based technologies;
• HR assets, initiatives and policies;
• The competitiveness reinforcement through the TEAM² program; and
• Worldline’s leadership in corporate and social responsibility.

Gilles Grapinet, Worldline CEO said: “Since its IPO in June 2014, Worldline has robustly delivered its strategic journey towards becoming the recognized industrial leader of the payment industry in Europe and – in the longer term – one of the global brands of our industry. Worldline is a much stronger company than 3 years ago, with more growth, more profitability, a better and transformed organization and a significantly enlarged scope (+40%) primarily after a first wave of value creative acquisitions, notably with Equens last year, but also through many important other transactions in 2016 and in 2017, the last one being MRL PosNet in India announced today.

For the 2017-19 period, as revealed by the upgrade of its objectives, Worldline intends to pursue its growth by capturing opportunities created by regulation changes like PSD2 and Instant Payments, as well as by large new processing outsourcing opportunities and cross-border acquiring contracts. The Group will also take advantage of the six acquisitions done since 2016 and will fully leverage its enhanced operational scale. Based on its recognized track record, Worldline intends to reinforce its position as a premium brand for customers, employees and key talents and will more than ever position itself as the next generation strategic European bank partner. Last, thanks to a very strong balance sheet and intact multi-billion euro leverage capability, the Group reaffirms its commitment to actively participate through value–creative acquisitions to the intensifying European payment industry consolidation.”

2017 – 2019 upgraded Worldline objectives

Taking into account the acquisitions announced during the third quarter of 2017: First Data Baltics (that has been finalized on September 27, 2017), Digital River World Payments, and MRL PosNet, and their anticipated positive impact on Worldline 2019 financial profile, Worldline now ambitions to deliver:

• Revenue organic growth: after 3.5% to 4% for 2017, 5% to 7% for 2018 and 6% to 8% for 2019;
• OMDA margin: Above 22.5% in 2019, which corresponds to an improvement of above +400 basis points compared with 2016[1];
• Free cash flow: € 230 million to € 245 million in 2019.

To reach its 2019 Ambition Worldline will focus on the following levers:

• Take advantage of Worldline’s unique Pan-European reach and undisputed leadership in Financial Processing;
• Expand strongly Worldline’s Pan-European platform for Omni-Commerce Merchant Services;
• Bringing payment and regulation expertise to new markets in Mobility & e-Transactional Services.

Take advantage of Worldline’s unique Pan-European reach and undisputed leadership in Financial Services

Worldline Financial Services, through equensWorldline, is the largest financial processor in Europe, with a unique Pan-European reach and leading market positions in key countries, such as France, Belgium, the Netherlands, Germany, Italy, reinforced recently with the acquisition of First Data’s businesses in the Baltics “FDB” (Lithuania, Latvia, Estonia).

Beyond the benefit from structural volume growth, Worldline intends to leverage on its wide offering portfolio of innovative payment solutions, to fully capture the opportunities from new regulations and technologies, notably PSD2 and Instant Payments. Worldline will also develop cross selling opportunities between Equens and Worldline historical client bases, and intends to accelerate its expansion in the Nordics, through the leverage of FDB recent and successful penetration in the region beyond the Baltics.

Profitability of the Global Business Line is expected to strongly improve over the 2017 to 2019 period, thanks mainly to the delivery at equensWorldline of c. € 45 million OMDA run rate synergies in 2018 (versus c. €40 million provisional), of which c. €25 million are expected as soon as 2017 and to the profitability of FDB, which is materially above Worldline’s OMDA.

Expand strongly Worldline’s Pan-European platform for Omni-Commerce Merchant Services

The growth of merchant Services will rely during the period primarily on:

• Fast volume growth in commercial acquiring and e-payment acceptance;
• Revenue synergies from Digital River World Payments’ e-payment collecting capabilities, access to Tier1 e-Merchant client base and geographical reach;
• The strong development of digital payments in India and the synergies expected between Worldline’s India existing business and MRL PosNet’s product functionalities and client base;
• The expansion in higher growth geographical areas in Europe, such as Germany and Central & Eastern Europe following the recent acquisitions of PaySquare and KB SmartPay;
• The acceleration of sales of omni-commerce proven solutions, such as retailer’s wallet, digital retail and merchant data analytics.

The profitability of PaySquare, KB SmartPay and Digital River World Payments is expected to gradually reach the rest of Merchant Service’s OMDA levels, thanks to synergies starting in 2017, while the profitability of MRL Posnet is already above Worldline’s OMDA’s rate.

Bringing payment and regulation expertise to new markets in Mobility & e-Transactional Services

Leveraging on its strong technological assets, its know-how, and its track record in the design and operation of next-generation platforms, Worldline considers that Mobility & e-Transactional Services is in a position to benefit from the fast growing market trends for secured digital solutions, in particular for Trusted Digitization services, Internet of Payment Things and Digital Ticketing.

Mobility & e-Transactional Services’ OMDA is expected to gradually improve over the period thanks to volume growth on maturing platforms.

Global Business line contribution to Worldline’s 2017-2019 financial profile

Thanks to their specific business momentum, Worldline expects the following financial profile for each of its three Global Business Lines:

Financial services

• Revenue growth: a bit below Worldline’s average growth rate;
• Profitability: from a low-twenties OMDA percentage in 2016 to a high-twenties rate in 2019.

Merchant Services

• Revenue growth: Worldline expects Merchant Services to remain its first growth engine, with an organic growth rate expected above Worldline’s average;
• Profitability: low-twenties OMDA percentage over the period.

Mobility & e-Transactional Services

• Revenue growth: growth rate within the average of Worldline over the 2017-2019 period;
• Profitability: OMDA expected at mid-teens levels, improving over the 2017-2019 period.

Acquisition of MRL PosNet

Worldline today announces it has entered into a definitive agreement to acquire one of the fastest growing payment platforms in India – MRL PosNet, a technology-led, integrated merchant acquiring solutions provider, for a consideration up to c.€ 89 million representing a transaction multiple based on the 2017 estimated OMDA a bit below Worldline’s current trading OMDA multiple. The transaction is financed by the available cash of Worldline.

Founded in 2008 and headquartered in Chennai, India, MRL PosNet employs approximately 140 highly skilled engineers in Payment in India. Operating an innovative and state-of-the-art terminal management platform, enabling very cost efficient deployment and management of new terminals, MRL PosNet currently processes payment transactions on behalf of 18 Indian banks, through the management of c.100,000 payment terminals.

Presenting a very strong growth track record since incorporation and an OMDA rate above Worldline’s OMDA rate, the transaction is expected to be immediately margin accretive. In addition, numerous synergy levers with Worldline India have been identified allowing the acceleration of both revenue and profitability, in particular through MRL PosNet’s flexible modular platform architecture, its product functionalities and its reach to several major banks of Southern India.

European payment industry consolidation

Benefitting from its European intimacy, a very dense pipeline of short and medium term opportunities of various sizes, and from its particularly solid financial profile, Worldine maintains a considerable priority focus to take advantage of the structural changes in the European payment industry, as it has already done over the past two years in Financial Services with the acquisitions of Equens and First Data Baltics, and in Merchant Services with PaySquare, KB SmartPay, Digital River World Payments and MRL PosNet.

Webcast

The webcast of the presentations of Worldline 2017 Investor Day will be available on Worldline website (worldline.com, in the Investors section) after the event.

Presentation

The presentations will be posted after the event on our website, at worldline.com, in the Investors section.

Forthcoming event

Monday, October 23, 2017                   Revenue for the third quarter of 2017

Tuesday, February 20, 2018                2017 full year results

Contacts

Atos Investor Relations:

Gilles Arditti –  gilles.arditti@atos.net

Worldline Investors Contact

David Pierre-Kahn –  David.pierre-kahn@worldline.com

Worldline Communication Contact

Sandrine van der Ghinst – sandrine.vanderghinst@worldline.com

Worldline Press Contact

Teamfluence/Tiphaine Hecketsweiler – th@teamfluence.eu

About Atos

Atos is a global leader in digital transformation with approximately 100,000 employees in 72 countries and annual revenue of around € 12 billion. European number one in Big Data, Cybersecurity, High Performance Computing and Digital Workplace, the Group provides Cloud services, Infrastructure & Data Management, Business & Platform solutions, as well as transactional services through Worldline, the European leader in the payment industry. With its cutting-edge technologies, digital expertise and industry knowledge, Atos supports the digital transformation of its clients across various business sectors: Defense, Financial Services, Health, Manufacturing, Media, Energy & Utilities, Public sector, Retail, Telecommunications and Transportation. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos Consulting, Atos Worldgrid, Bull, Canopy, Unify and Worldline. Atos SE (Societas Europaea) is listed on the CAC40 Paris stock index.

About Worldline

Worldline [Euronext: WLN] is the European leader in the payments and transactional services industry. Worldline delivers new-generation services, enabling its customers to offer smooth and innovative solutions to the end consumer. Key actor for B2B2C industries, with over 40 years of experience, Worldline supports and contributes to the success of all businesses and administrative services in a perpetually evolving market. Worldline offers a unique and flexible business model built around a global and growing portfolio, thus enabling end-to-end support. Worldline activities are organized around three axes: Merchant Services, Mobility & e-Transactional Services, Financial Services including equensWorldline. Worldline employs more than 8,700 people worldwide, with estimated pro forma revenue of more than € 1.5 billion on a yearly basis. Worldline is an Atos company. www.worldline.com

Disclaimer

This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group’s expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors behaviors. Any forward-looking statements made in this document are statements about Worldline’ beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Worldline’ plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2016 Registration Document filed with the Autorité des Marchés Financiers (AMF) on April 28, 2017 under the registration number: R.17-032 and its update filed with the Autorité des Marchés Financiers (AMF) on August 3, 2017 under the registration number: D.17-0407-A01. Worldline does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.

This document does not contain or constitute an offer of Worldline’ shares for sale or an invitation or inducement to invest in Worldline’ shares in France, the United States of America or any other jurisdiction.

Revenue organic growth is presented at constant scope and exchange rates. Operating margin before amortization and depreciation (OMDA) is presented as defined in the 2016 Registration Document.

Global Business Lines include Merchant Services (in Belgium, Czech republic, France, Germany, India, Luxembourg, Poland, Spain, The Netherlands, Slovakia and United Kingdom), Financial Services (in Belgium, China, France, Germany, Finland, Hong Kong, India, Indonesia, Italy, Malaysia, Singapore, Spain, The Netherlands and Taiwan), and Mobility & e-Transactional Services (in Argentina, Austria, Belgium, Chile, France, Germany, Spain, and the United Kingdom).

[1] 18.5% OMDA margin, 2016 pro forma accounts