QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

Concessions, rights

Development expenses

IT implementation costs

Software

Other

Total

Amortization at 31 January 2018

30.9

99.0

138.0

24.1

33.5 325.5

Charges

0.6

12.8

25.7

0.3

5.1

44.5

Scope variation

-

(6.5)

(9.9)

(0.5)

(9.9) (26.8)

Disposals

-

(0.5)

-

(0.1)

(0.0)

(0.6)

Other changes

-

-

-

21.7

1,0 22.7

Translation difference

-

2.8

0.7

0.1

1.0 4.6

Amortization at 31 January 2019

31.5

107.6

154.5

45.6 30.7 369.9

Charges

0.6

8.3

27.3

2.8

3.9 42.9

Scope variation

(0.3)

(2.5)

-

-

(1.2)

(4.0)

Disposals

(0.9)

(5.9)

0.4

-

(0.1)

(6.5)

Other changes

-

(2.8)

-

2.8

-

0.0

Translation difference

0.1

2.7

2.2

0.2

1.0 6.2

AMORTIZATION AT 31 JANUARY 2020

31.0

107.4

184.4

51.4 34.3 408.5

In 2018, a depreciation of 21.7 million euros was recorded following the overhaul of the project of common IT tools roll-out in Europe. This depreciation was part of the line “Other changes”.

As of 31 January 2020, no evidence of impairment has been noted on the intangible fixed assets.

4-3: Tangible fixed assets

6

4-3-1: ACCOUNTING PRINCIPLES

Tangible fixed assets acquired separately are initially measured at acquisition cost in accordance with IAS 16. This cost includes expenses directly attributable to the acquisition of the asset. Tangible fixed assets acquired as part of a business combination are recognized at fair value on their acquisition date, separately from goodwill. The value of tangible fixed assets is then reduced by the amount of accumulated depreciation and impairment losses. Demonstration equipment Demonstration equipment recognized under tangible fixed assets is depreciated using the straight line method over four years, which is generally considered to be its useful life. Spare parts Spare parts and maintenance parts that are used over more than one fiscal year or which can only be used with a fixed asset are recognized under tangible fixed assets and depreciated over their useful life. Rented equipment Rented franking machines other than IS-280 consist of two distinct components with different useful lives: a meter and a base. The depreciation periods, which correspond to the useful life of the asset in question, are as follows:

IS-280: three years in North America and five years ● in France; meter: five years; ● base: six years, in France only. ● The intra-Group margin generated by industrial subsidiaries on equipment sold to the distribution subsidiaries that rent this equipment is eliminated, and depreciation is recalculated on the basis of the new value thus obtained. Depreciation periods Depreciation uses the straight-line method and is over the useful life of the asset: land and buildings: twenty to forty years; ● equipment: five to ten years; ● tools: three years; ● office furniture: ten years; ● research equipment: five years; ●

rented equipment: three, five or six years; ● demonstration equipment: four years; ● spare parts: four years; ● refurbished machinery: three years. ●

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UNIVERSAL REGISTRATION DOCUMENT 2019