QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

6-8: Structure optimization expenses - net of reversals

6-9: Disposals of fixed assets

As of 31 January 2019, revenues from the disposal of fixed assets amounted to 6.2 million euros and were mainly related to the disposal of a building in Clichy (France) for approximately 8.0million euros, offset by the release of the net book value of tangible assets as part of relocations.

The Group pursued the optimization of its structure. An expense of 10.1 million euros, net of an unused provision reversal of 1.2 million euros, is recorded in this regard in 2019, compared with an expense of 13.1 million euros in 2018. This expense is mainly related to the costs incurred by the implementation of certain initiatives related to reorganizations within the Group and to expenses related to workforce reduction.

6-10: Other operational expenses and income

31 January 2020

31 January 2019

Capital gain on the sale of Quadient Data USA

-

39.4

Assets held for sale depreciation

(3.1)

(6.6)

Fixed assets depreciation

(5.3)

(24.9)

Impairment of goodwill

-

(19.8)

Other

(3.5)

(5.8)

OTHER OPERATIONAL (EXPENSES) INCOME

(11.9)

(17.7)

In 2019, the recognition under IFRS 5 of the disposal of ProShip, which occurred at the beginning of 2020 financial year, leads to an expense of 3.1 million euros. Following the decision to shutdown the Temando businesses, the net value of the intangible assets recognized as part of the purchase price allocation has been scrapped from the balance sheet. This leads to an expense of 5.3 million euros. After the change of the name of the group Quadient, some costs have incurred as part of the change of the visual identity for an amount of approximately 3.0 million euros, presented in the line "Other". In 2018, the sale of the subsidiary Quadient Data USA (former Satori Software) lead to a capital gain of 39.4 million euros.

The disclosure of Quadient Data Netherlands (former Human Inference) sale which occurred at the beginning of February 2019 in compliance with IFRS 5 lead to an expense of 6.6 million euros (see note 5). Fixed assets depreciations were recorded for 24.9 million euros. They were related to the overhaul of different projects, out of which the most significant was the roll-out of common IT tools in Europe. The line Other included in particular an exceptional depreciation of irrecoverable assets related to the leasing activity. In 2018, the goodwill depreciation was related to Temando and detailed in the note 4–5.

6

6-11: Off-balance sheet commitments related to operational activities

Currency 31 January 2020 31 January 2019

Bank guarantee in favor of the British postal service

GBP

0.8

0.8

Bank guarantee in favor of the Irish postal service

EUR

1.7

1.7

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UNIVERSAL REGISTRATION DOCUMENT 2019