QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Analysis of Neopost S.A.'s annual results

Analysis of Neopost S.A.'s annual results 6.3

Unless otherwise indicated, all the amounts stated hereafter are in million of euros, rounded to one decimal place.

6.3.1

2019 FINANCIAL YEAR SIGNIFICANT EVENTS

SHUTDOWN OF THE ACTIVITY OF TEMANDO

In September 2019, Quadient decided a phased shutdown of the activity of its subsidiary Temando (shipping software dedicated to e-commerce) which was part of its Additional Operations. The business is subject to an orderly shutdown over time, subject to Temando’s legal obligations to its customers and other stakeholders. At the end of financial year 2019, the shutdown was substantially progressed and is now almost completed. As a consequence, Neopost S.A. has recorded a full depreciation of its loans and advances accorded to Temando’s subsidiaries for respectively 24.9 million euros and 22.0 million euros (respectively 26.0 million euros and 9.4 million euros as at 31 January 2019). As at 31 January 2019, Neopost S.A. had also fully depreciated its investment in Neopost Shipping Holding Pty Ltd for an amount of 20.5 million euros. Following the goodwill impairment, Neopost S.A. also depreciates its invesments in the Additional Operations in Australia and the Nordics countries for an amount of 63.8 million euros as at 31 January 2020. These depreciations are described in note 4. CONCLUSION OF THE FRENCH TAX CONTROL AND THE MUTUAL AGREEMENT PROCEDURE BETWEEN FRANCE AND THE NETHERLANDS The Company obtained the conclusions of the tax control covering the period from 1 February 2012 to 31 January 2018, which led to a 22.9 million euros increase of its tax loss carryforwards for the french tax consolidation and to a 0.5 million euros payment of corporate tax for the year 2016, the purpose of which was to reintegrate financial expenses, The Company also obtained the reimbursement of 9.1 million euros from the French public finance department, following the conclusion of the mutual agreement procedure between France and the Netherlands, open as at 31 January 2007, in favour of Neopost Technologies SA. IMPAIRMENT ON INVESTMENTS

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CHANGE OF THE NAME AND THE VISUAL IDENTITY

The Group announced in September 2019 its decision to change the name Neopost to become Quadient. This choice of an unified and modern brand is the concretization of the implementation of the new Group organization, moving from entities operating independent businesses into a unique entity provided with a portfolio of integrated solutions. The change of the name of the holding from Neopost S.A. to Quadient S.A. will be submitted to the approval of the Annual General Meeting on 6 July 2020.

6.3.2

OPERATING INCOME

Neopost S.A.’s operating loss amounts to 4.3 million euros compared with a loss of 0.1 million euros as at 31 January 2019.

6.3.3

FINANCIAL INCOME

Net financial income amounts to 9.5 million euros, down from 50.5 million euros as at 31 January 2019. Dividends received by the Company totalled 75.6 million euros as at 31 January 2020 compared with 116.6 million euros as at 31 January 2019. Net interest income from Group subsidiaries is 17.0 million euros (19.8 million as at 31 January 2019). Interest expenses for external borrowings are 41.3 million euros (34.8 million euros as at 31 January 2019). Net financial depreciation are recorded for 81.3 million euros as at 31 January 2020 (43.0 million euros as at 31 January 2019).

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UNIVERSAL REGISTRATION DOCUMENT 2019