QUADIENT - 2019 Universal Registration Document

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CORPORATE OVERVIEW Activities

1.1.3

MAIL-RELATED SOLUTIONS

Market

Mail-Related Solutions encompasses the legacy business of Quadient. Quadient supplies equipment, software and services to cover the entire process of managing incoming and outgoing mail. It provides expertise and training in organizing mailrooms and mailing processes, according to each customer’s business and operations requirements. Quadient offers a competitive range of folders/inserters for the office, mailroom and mail center segments. These systems, supplemented with intelligent software to interface with databases, make it possible to publish, prepare for insertion, combine and route documents (pay slips, invoices, marketing mail shots). Quadient also offers ongoing maintenance on these systems to ensure business continuity for customers. Since these systems are connected to the Internet, the maintenance can be performed remotely. Quadient is considered to be one of the world’s leading manufacturer of folders/inserters for offices and mailrooms. Furthermore, Quadient offers mailing solutions which combine franking machines, franking management software solutions, accessories like postal scales, ink cartridges and other supplies to operate them. Quadient offers maintenance of its equipment (which may be remote) and the update of postal tariffs. Finally, Quadient markets customized financing solutions for all equipment and services which it sells as well as long-term rentals in countries where regulation makes it mandatory, i.e. France for the entire franking machine, the United States and Canada for the meter. Quadient also has a financial service called postage financing. For businesses and people who need to manage a growing volume of deliveries and returns, Quadient provides and operates a smart and secure pick-up, drop-off solution that offers convenience and peace of mind. Quadient parcel lockers are an automated solution that securely stores packages for easy consumer retrieval – eliminating the need for multiple deliveries and re-delivery attempts and reduces the risk of lost packages, hence respecting delivery deadlines and lowering CO 2 emissions. Parcel volumes continue to increase. Due to the continued growth of e-commerce, smart parcel lockers are rapidly emerging as the most efficient and secure customer experience solution to solve the last mile delivery issue. PARCEL LOCKER SOLUTIONS 1.1.4

The size of the mail solutions’ market is estimated to be around 2.5 billion U.S. dollars of sales per year (1) . Quadient is ranked number 2 worldwide with a revenue of 790 million euros in 2019 in Mail-Related Solutions. Its two main competitors are Pitney Bowes and Francotyp Postalia with respective revenue of 1.5 billion U.S. dollars for Pitney Bowes’ Sending Technology Solutions division (formerly called SMB) and 134 million euros for Francotyp Postalia’s Franking and Inserting division in 2019. Quadient is no longer in a position to precisely give market shares in terms of installed base due to the lack of availability of the data from French and U.S. postal authorities.

Customers

Mail-Related Solutions’ customers are mainly small and medium sized enterprises across all industry sectors. However, thanks to its large range of products, Quadient also provides solutions to larger accounts, especially Print Service Providers.

Postal authorities’ role

Postal authorities govern production, distribution and maintenance of franking machines.

On the proven successful experience in building an installed base of parcel lockers, notably in Japan, Quadient aims at taking significant positions in key geographies, primarily in the United States. Additionally, Quadient, who has been deploying its French and Japan footprint through contracts with both carriers and retailers, sees a strong market opportunity in the residential sector. In January 2019, Quadient made a significant entry into the high-growth parcel locker market through the acquisition of Parcel Pending, the current leader in the residential market in the United States.

(1)

Quadient estimates excluding production mail.

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UNIVERSAL REGISTRATION DOCUMENT 2019