QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

Year-end position The table below sets out Quadient’s position as at 31 January 2020 by maturity for the major currencies:

EUR

USD

1 to 5 years > 5 years

1 to 5 years > 5 years

Notional value

< 1 year

Total

< 1 year

Total

Debt

26.3

362.2

354.1

742.6

72.2

282.0

-

354.2

Of which fixed-rate debts

(5.4)

(193.2)

(349.1)

(547.7)

(2.1)

(64.9)

-

(67.0)

CORRESPONDING HEDGE MATURITIES

-

220.0

-

220.0

15.0 205.0

-

220.0

The corresponding interest flows (excluding margin impacts) were calculated based on constant debt forward interest rate conditions and exchange rate parity at year-end. The following schedule is obtained:

2020

2021

2022

2023

Interest on fixed rates

4.4

3.2

0.7

(0.4)

Interest on the variable rate position

5.6

4.3

4.0

4.5

Interest on hedging operations

(0.4)

0.8

1.2

0.1

TOTAL

9.6

8.3

5.9

4.2

Sensitivity of the financial results to interest rate changes is as follows:

6

2020

2021

2022

2023

Sensitivity to a +0.5 % increase in interest rates Sensitivity to a (0.5) % decrease in interest rates

0.7

1.2

2.0

2.6

(1.0)

(1.8)

(1.6)

(1.9)

For 2019, the Group’s policy was to protect its net financial to forward interest rates for the current financial year. income in advance. As a result, after hedging and on a Only 25 % of the debt remained exposed to forward rates fixed-debt basis, 75 % of the Group's debt was not exposed as at 31 January 2020.

Instrument details Quadient uses standard and liquid derivative instruments. The instruments used are as follows: firm derivatives: swaps and Forward Rate Agreement ● (FRA); plain vanilla options: buying and selling of caps and ● floors (used either alone or in combination); knock-in or knock-out barrier options: buying and ● selling of caps and floors (used either alone or in combination);

buying and selling of swaptions (used either alone or in ● combination). Management mandates, packaged bank hedging products and derivative instruments that introduce a reference other than the underlying asset ( quanto swaps for example) are strictly forbidden by internal procedures.

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UNIVERSAL REGISTRATION DOCUMENT 2019