QUADIENT - 2019 Universal Registration Document

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FINANCIAL STATEMENTS Consolidated financial statements

Since there is no contractual obligation to repay the nominal or to pay coupons to holders of the bonds, the ODIRNANE was initially recognized as an equity instrument, for an amount of 261.5 million euros, net of issue costs.

Following the 0.53 euro dividend distribution that occurred at the beginning of August 2019, the conversion ratio was adjusted to 1.340 with effect from 2 August 2019. As at 31 January 2020, the amount of unmatured accrued coupons represents 1.1 million euros and is booked as current debt.

14-3: Earnings per share

14-3-1: ACCOUNTING PRINCIPLES

Basic earnings per share are calculated by dividing earnings for the period attributable to ordinary shareholders of the parent company by the weighted average number of outstanding ordinary shares during the period. It is restated with the payment of the coupons related to the ODIRNANE issue. Diluted earnings per share are calculated by dividing earnings for the period attributable to ordinary equity holders of the parent company by the weighted average number of ordinary shares outstanding during the year, plus the weighted average number of ordinary shares that would have been issued on conversion of all potential dilutive ordinary shares. For stock options, the share buyback method is used. In calculating diluted earnings per share, dilutive options are assumed to have been exercised. The income from these instruments is assumed to have been received when the ordinary shares are issued, at the average

market price during the period. The difference between the number of ordinary shares issued and the number of ordinary shares that might have been issued at the average market price is treated as an issue of ordinary shares without offset. In this way, options only have a dilutive effect when the average market price of ordinary shares during the period exceeds the strike price of the options. The potentially dilutive instruments correspond to the free shares attributions (Note 10-4-3) and the ODIRNANE (Note 14-2). These instruments are included if and only if their dilutive effect reduces the earning per share or increases the loss per share. According to the IAS 33, if the diluted earnings per share are higher than the earning per share, they are considered as non representative and reduced to the basic earnings per share.

14-3-2: EARNINGS PER SHARE CALCULATION

The table below sets out the earnings figures used to calculate basic and fully-diluted earnings per share for all activities:

31 January 2020

31 January 2019

Net income – attributable to equity holders of the parent company

14.1

91.5

ODIRNANE dividends

(8.9)

(8.9)

Restated basic earnings (A)

5.2

82.6

Effect of dilutive instruments: Dilutive free shares • ODIRNANE conversion •

-

0.7

-

8.9

Diluted net income (B)

5.2

92.2

Number of outstanding shares

34,282

34,402

Effect on a prorata time basis of dividend payments in shares, the exercise of stock options, share buybacks for cancellation and liquidity contract

(21)

12

Weighted average number of shares outstanding (in thousands)* (C)

34,261

34,414

Weighted average number of outstanding free shares, prorata temporis

-

229

Number of shares related to the ODIRNANE conversion, prorata temporis

-

5,968

Number of shares fully diluted (in thousands)* (D)

34,261

40,611

NET EARNINGS PER SHARE (IN EUROS) (A)/(C)

0.15

2.40

DILUTED NET EARNINGS PER SHARE (IN EUROS) (B)/(D)

0.15

2.27

* Weighted average over the period

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UNIVERSAL REGISTRATION DOCUMENT 2019