EFTA01382608.pdf

X- I/A Table of Contents A weakening in the economy could also force some retailers to clog", resulting in exposure to potential credit losses and declines in transactions, and reduced earnings on transactions due to a potential shift to large discount merchants. Additionally, credit card issuers may reduce credit limits and become more selective in their card issuance practices. Changes in economic conditions could adversely impact our future revenues and profits and result in a downgrade of our debt ratings. which may lead to termination or modification of certain contracts and make it more difficult for us to obtain new business. Any of these developments could have a material adverse impact on our overall business and results of operations. Our ability to anticipate andrespond to changing industry trends and the needs andpreferences ofour clients and consumers may ig[ett our competitiveness or demandfor our products, which may adversely affect our operating results. Financial services. payments. and technology industries are subject to rapid technological advancements. new products and services, including mobile payment applications, evolving competitive landscape. developing industry standards, and changing client and consumer needs and preferences. We expect that new services and technologies applicable to the financial grnices, payments, and technology industries will continue to emerge. Thew changes in technology may limit the competitiveness of and demand for our services. Also. our clients and their customers continue to adopt new technology for business and personal uses. We must anticipate and respond to these changes in order to remain competitive within our relative markets. For example, our ability to provide innovative point-of-sale technology to our merchant clients could have an impact on our Global Business Solutions business. In addition, failure to develop value-added services that meet the needs and preferences of our clients could have an adverse effect on ow ability to compete effectively in our industry•. Furthermore. clients' and their customers' potential negative reaction to our products and services can spread quickly through social media and damage our reputation before we have the opportunity to nvond. If we are unable to anticipate or respond to technological changes or evolving industry• standards on a timely basis, our ability to remain competitive could be materially adversely affected. Substantial and increasingly intense competition worldwide in thefinancial services, payments, and technology industries mar materially and adversely affect our overall business and operations. Financial services, payments, and technology industries are highly competitive and our payment solutions compete against all forms of financial services and payment systems. including cash and checks, and eltxtronic, mobile, and eCommerce payment platforms. if we are unable to differentiate ourselves from our competitors. drive value for our clients and/or effectively align ow resources with our goals and objectives, we may not be able to compete effectively. Our competitors may introduce their own value-added or other services or solutions more effectively than we do, which could adversely impact our growth. We also compete against new entrants that have developed alternative payment system. °Commerce payment systems. and payment systems for mobile devices. Failure to compete effectively against any of these competitive threats could have a material adverse effect on us. In addition, the highly competitive nature of our industry could lead to increased pricing pressure which could have a material impact on our overall business and results of operations. Potential changes in the competitive landscape, including disintermediationfrom other participants in the payments value chain, could harm our business. We expect that the competitive landscape will continue to change. including: • Rapid and significant changes in technology, resulting in new and innovative payment methods and programs that could place us at a competitive disadvantage and that could reduce the use of our products. • Competitors, clients. governments, and other industry participants may develop products that compete with or replace our value-added products and services. 20 http://vanv.see.gov/Archi vecledgaddataht83980/000119312515334479/d31022dsla.htmi10/14/2015 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082036 CONFIDENTIAL SONY GM_00228220 EFTA01382608