QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

The retirement benefits of French employees are not covered by investments in pension funds except for Neopost France and Neopost Services, which have covered part of their retirement benefit obligations through investments in funds managed by insurance companies.

31 January 2020

31 January 2019

Change in value of obligations Present value of obligations at start of period

189.9

202.2

Service cost

1.2

2.1

Discounting cost

4.4

4.2

Actuarial (gains) or losses

21.2

(4.3)

Payments made

(10.9)

(15.9)

Scope variation

(0.2)

(0.5)

Other, including translation difference

8.4

2.1

Present value of liabilities at end of period

214.0

189.9

Change in hedging assets Fair value of hedging assets at beginning of period

204.9

213.8

Expected return on plan assets

4.6

4.6

Actuarial gains (losses)

22.5

(1.4)

Contributions paid by employer

1.1

1.2

Payments made by fund

(10.2)

(14.8)

Other, including translation difference

9.1

1.5

Fair value of hedging assets at end of period

232.0

204.9

Financial hedging Plans’ position

18.0

14.9

6

of which recognized in assets

43.0

37.2

of which recognized in liabilities

(25.0)

(22.3)

Amount recognized in the consolidated income statements Service cost

1.0

2.1

Discounting cost

4.4

4.2

Expected return on plan assets

( 4.6)

(4.6)

Total retirement benefit expense

0.8

1.7

Amount recognized in the consolidated statements of comprehensive income Actuarial (losses)/gains

(1.3)

(2.9)

On obligations

21.2

(4.3)

On hedging assets

(22.5)

1.4

Cumulated actuarial (losses)/gains

(5.3)

(4.0)

Actuarial assumptions Discount rate*

1.8 % 2.8 % 2.0 % 2.7 %

2.6 % 3.2 % 2.1 % 3.1 %

Expected long-term inflation rate – Retail Price Inflation (RPI)*

Expected long-term inflation rate – Consumer Price Index (CPI)*

Expected long-term rate of annuity increases*

Breakdown of hedging assets Equities

20 % 23 %

19 % 26 %

Bonds

4 %

4 %

Real estate

Other investments 51 % The above actuarial assumptions relate to the English subsidiary which alone accounts for more than 77 % of the Group’s retirement benefit * obligations. 53 %

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UNIVERSAL REGISTRATION DOCUMENT 2019