QUADIENT - 2019 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

NOTE 7

SEGMENT INFORMATION

directly accounted for more than 85 % of the Group’s total sales in 2018. As part of its strategy, Quadient concentrates its efforts on these countries gathered on four segments: North America, France - Benelux, DACH-IT (Germany, Austria, Switzerland, Italy) and United Kingdom -Ireland. Additional Operations ● The portfolio of additional operations includes operations outside the main geographies as well as other activities, in particular graphics activities, other shipping software solutions and the automated packing system (CVP). The segment "Innovation" includes in 2018 and in 2019 the charges linked to the development of new projects for customer experience management.

Since the beginning of the financial year and after the implementation of the Group's strategy announced in January 2019, the activity of Quadient is split into two big categories: the major operations and the additional operations. Major Operations ● Quadient focuses on four major solutions which are businesses where Quadient has already built strong legitimacy and that have the potential to reach a significant size and/or provide significant growth potential. These solutions are (1) the Mail-Related Solutions, (2) the Business Process Automation, (3) the Customer Experience Management and (4) the Parcel Locker Solutions. From a geographical standpoint, twelve out of twenty-nine countries where Quadient operates

Quadient’s net income breaks down by segment as follows:

United Kingdom -Ireland Innovation

France- Benelux

North America DACH-IT

Major Operations

Additional Operations

31 January 2020

Total sales

1,142.7

208.3

523.6 117.2

95.1

0.1

944.3

198.4

Segment income

185.1

50.1

106.3

16.1

16.4

(8.3)

180.6

4.5

19.1 %

2.3 %

16.2 %

24.1 %

20.3 %

13.7 %

17.2 %

in percentage

n/a

Expenses related to acquisitions

(15.5)

Current operating income

169.6

Impairment of goodwill

(70.4)

Structure optimization expenses

(10.1)

Proceeds from net assets sales

(0.2)

Other operational expenses and income

(11.9)

Operating income

77.0

Financial result

(41.1)

Share of results of associated companies

0.8

Income taxes

(21.4)

NET INCOME

15.3

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UNIVERSAL REGISTRATION DOCUMENT 2019