QUADIENT - 2019 Universal Registration Document

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FINANCIAL STATEMENTS Consolidated financial statements

10-4-4: CHANGES IN SHARE-BASED PAYMENTS VALUATION

Expenses recorded with respect to the profit-sharing, incentive plans and share-based payments are as follows:

31 January 2020

31 January 2019

31 January 2018

31 January 2017

31 January 2016

Free share granted valuation

0.7

0.7

(0.6)

0.4

1.9

10-5: Long term incentives (phantom shares)

As regards to the ongoing plans, the liability is phantom shares attributed at the last share price recognized when the phantom shares are attributed before the end of financial year. At each closing date, and the expense, spread out over the acquisition the provision is revaluated based on the last share period (four years for 2016 plan and three years for price and the changes in headcount. 2017 plan), represents the valuation of the number of

No new phantom shares plans were set up since 1 February 2018.

Number of shares originally granted

Number ofout-standing shares

Short term portion

Long term portion

31 January

Non- used

31 January 2020

Plan

2019 Added Used

July 2016

147,600

51,250

1.1

0.2 (0.6) (0.1)

0.6

0.6

-

March 2017

98,020

71,340

0.5

0.3

-

-

0.8

0.8

-

LONG TERM INCENTIVES

1.6

0.5 (0.6) (0.1)

1.4

1.4

-

The July 2016 and March 2017 plans are subject to the cumulative conditions of employee presence and Group performance.

10-6 : Executive compensation

The main role of the management team is to make strategic decisions for the Group and coordinate their implementation around the world. The gross remuneration of the management team amounted to 4.3 million euros in 2019, compared with 7.2 million euros in the previous year. Variable remuneration is determined on the basis of attaining Group sales, operating income and capital employed targets. The Group recognized an expense of 0.7 million euros in 2019 in respect of free shares allocation plans granted to the management team, compared with 0.8 million euros in 2018. 83,000 shares were granted to members of the management team during the 2019 financial year compared with 86,000 in the previous year.

With respect to pensions, the Chief Executive Officer, as well as a number of other Group executives, benefit from a defined contribution pension plan (article 83 of the French general tax code), into which is paid a total of 5 % of their remuneration, within the limit of five times the social security ceiling. Some enjoy a defined benefit pension scheme (article 39 of the French general tax code) with an annuity obligation of 1.1 % of pay per year of service for a minimum of eight years and a maximum of twenty years. This annuity is paid after the deduction of the annuities paid within the usual defined contribution plans. There are no new beneficiaries in the defined benefit pension scheme. The amount of these liabilities at the end of January 2020 totaled 2.2 million euros compared with 2.0 million euros as at 31 January 2019 and concerns the members of the management team. The cumulative payments stand at 0.1 million euros as at 31 January 2020.

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UNIVERSAL REGISTRATION DOCUMENT 2019