QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

12-2-8: FAIR VALUE OF DEBTS

The book values of current loans and variable rate debts are close to their fair values. Fixed rate debts are analyzed as follows:

31 January 2020 Book value

Accrued interest

Fair value +50 bps

Fair value -50 bps

Fair value

Bonds issue Neopost S.A. 2.50 % EUR 350M

183.2

2.7

186.7

187.9

185.4

United States private placement USD 175M

30.5

0.1

27.6

27.8

27.3

Schuldschein EUR

130.4

1.8

132.1

138.7

134.6

Schuldschein USD

6.9

0.1

7.0

7.0

6.9

12-3: Financial income and expenses

12-3-1: ACCOUNTING PRINCIPLES

Effective interest rate The effective interest rate is the rate used to precisely discount future cash flows to maturity, so as to obtain the net value of the debt at the initial recognition date. To calculate the effective interest rate of a financial debt, the future cash flows are determined based on the contractual repayment dates.

Transaction costs Transaction costs are the marginal costs directly attributable to the arrangement of a credit facility. These include fees and commissions paid to brokers and advisers, levies charged by the market authorities, stock exchange fees and transfer taxes and duties. However they do not include issue premiums, the allocation of internal administrative expenses and head office expenses. For financial debt measured at amortized cost, transaction costs are included in the amortized costs calculation using the effective interest rate method and are amortized in the income statement over the life of the instrument.

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12-3-2: COST OF DEBT

The table below represents the gross cost of debt by calculated from the net cost of debt, i.e. 29.3 million euros, currency after exercise of the hedging instruments and the divided by the average net debt (average financial debt – effects of the valuation of portfolio interest rate average cash and cash equivalents) during the year, transactions for the financial year ended on equals 3.01 % . This interest rate calculation is not taking 31 January 2020. The calculation is based on the debt into account the 2021 bond public tender offer fees of detailed in the note 12-2-2. The net financing cost rate, 4.8 million euros.

Currency

Gross rate Amount in currency

2.45 % 2.46 %

Euros (EUR)

16.0

Financial costs before hedging impact

16.0

(0.01 % ) 4.00 % 4.00 %

Hedging impact

-

United States dollars (USD)

13.4

Financial costs before hedging impact

13.4

Hedging impact

-

-

12-3-3: CAPITALIZED/AMORTIZED DEBT COSTS

The costs related to the arrangement of the different debts amount to 3.5 million euros for the year 2019.

The difference between the straight-line amortization of these costs and the calculation of the amortized cost of capital is not material, therefore there has been no restatement for the IFRS financial statements.

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UNIVERSAL REGISTRATION DOCUMENT 2019