QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

Software maintenance Software maintenance is included in most software license contracts and is generally priced as a percentage of the initial software license fees. Maintenance provides customers with rights to non-critical software upgrades, maintenance enhancements and access to the help desk during the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract. Professional services Software implementation and support services represent revenue from consulting and implementation

services sold separately under professional service contracts. Professional service contracts are accounted for on a percentage-of-completion basis based on the number of hours incurred over the period as a proportion of the total number of hours provided for in the contract. These estimates are continually re-evaluated and revised, when necessary, at each reporting date. Any adjustments to revenue and margins due to changes in estimates are accounted for in the period in which the change in estimates occurs. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the

loss becomes evident.

6-1-2: SALES BREAKDOWN

By business - Group sales ● Group sales are composed of five revenue categories: (1) Mail-Related Solutions, (2) Business Process Automation,

comprise revenues that are not part of the four major

solutions and include in particular graphics activities, other (3) Customer Experience Management, (4) Parcel Locker shipping software solutions and the automated packing Solutions and (5) Other activities. The other activities systems (CVP).

31 January 2020

31 January 2019

Mail-Related Solutions

789.5

792.4

Business Process Automation

64.9

53.8

6

Customer Experience Management

140.1

121.6

Parcel Locker solutions

64.8

21.6

Other activities

83.4

102.5

TOTAL

1,142.7

1,091.9

By business - Major Operations ● Major operations have been defined around the four major activities that are not included in the four major solutions, solutions defined above, in the two main geographic areas in all geographic areas, as well as on the four major of North America and Europe, including twelve countries. solutions outside the main geographic areas. The revenues of additional operations are realized on

31 January 2020

31 January 2019

Mail-Related solutions

728.1

727.5

Business Process Automation

63.2

52.3

Customer Experience Management

109.5

100.3

Parcel Locker Solutions

43.5

6.0

Major Operations

944.3

886.1

Additional Operations

198.4

205.8

TOTAL

1,142.7

1,091.9

149

UNIVERSAL REGISTRATION DOCUMENT 2019