QUADIENT - 2019 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

The exchange rates for the main Group’s main currencies are as follows:

31 January 2020

31 January 2019

Period end

Average

Period end

Average

United States dollar (USD)

1.1052

1.1174

1.1488

1.1750

Pound sterling (GBP)

0.8418

0.8741

0.8758

0.8850

Canadian dollar (CAD)

1.4627

1.4797

1.5109

1.5305

Swiss franc (CHF)

1.0668

1.1078

1.1409

1.1514

Japanese yen (JPY)

120.3500

121.8742

124.8100

129.5042

Norwegian krone (NOK)

10.1893

9.8490

9.6623

9.6103

Swedish krone (SEK)

10.6768

10.5950

10.3730

10.2941

Danish krone (DKK)

7.4731

7.4666

7.4657

7.4549

Australian dollar (AUD)

1.6494

1.6112

1.5787

1.5853

Singapore dollar (SGD)

1.5092

1.5232

1.5459

1.5875

Indian rupee (INR)

78.9055

78.7749

81.6860

80.9892

Brazilian real (BRL)

4.7157

4.4413

4.2041

4.3383

Chinese yuan (CNY)

7.6664

7.7269

7.7010

7.7999

Czech koruna (CZK)

25.2100

25.6248

25.7600

25.6602

Hungarian florin (HUF)

337.0500

326.4475

315.8800

319.7147

Polish zloty (PLN)

4.3009

4.2956

4.2736

4.2714

New-Zealand dollar (NZD)

1.7083

1.6957

1.6607

1.7062

NOTE 3

SCOPE AND PRINCIPLES OF CONSOLIDATION

3-1: Accounting policies relating to the scope of consolidation The Group’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the country of operation. Financial statements of foreign companies have been restated to be compliant with Quadient group’s accounting principles. The consolidated balance sheet incorporates all items of assets and liabilities along with the results of consolidated companies. Intra-Group transactions and profits relating to these operations as well as intra-Group capital gains are eliminated. Subsidiaries controlled directly by the parent company or indirectly through other subsidiaries are consolidated using the full consolidation method. Stakes in associated companies over which the investor exerts significant influence are consolidated using the equity method. Significant influence is assumed when the investor controls directly or indirectly through subsidiaries 20 % or more of the voting rights in the company in question.

and operational policies in order to derive profit from its activities. Main change in the scope of consolidation for the 2019 financial year is the following: On 8 February 2019, Mailroom Holding BV sold 100 % of ● the shares held in its subsidiary Quadient Data Netherlands BV (former Human Inference). The effective exit date from the scope of consolidation is 1 st February 2019. 3-3: Other information relating to the scope of consolidation INFORMATION ON RELATED PARTIES Quadient owns a 35 % stake in Docapost BPO IS and a 24 % stake in AMS Investissement. The transactions with these companies, consolidated using the equity method, are not significant. Quadient also holds a 7.80 % stake in X’Ange 2 and a 6.23 % stake in Partech Entrepreneur II, all non-consolidated companies. The transactions with these companies are not significant. OFF-BALANCE SHEET COMMITMENTS RELATING TO THE SCOPE OF CONSOLIDATION Neopost S.A. has an investment commitment with Partech Entrepreneur II for an amount of 0.1 million euros as at 31 January 2020 compared with 0.6 million euros as at 31 January 2019.

3-2: Changes in the scope of consolidation

The consolidated financial statements include the financial statements of Neopost S.A. and its subsidiaries. Unless otherwise stated, the subsidiaries are consolidated as from the date on which control is acquired by the Group and until the date on which control is transferred outside the Group. Control is the power to direct a company’s financial

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UNIVERSAL REGISTRATION DOCUMENT 2019