QUADIENT - 2019 Universal Registration Document

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FINANCIAL STATEMENTS Neopost S.A. statements of financial position

SHORT-TERM INVESTMENTS AND CASH & CASH EQUIVALENTS NOTE 6

Short-term investments and cash & cash equivalents are made up of treasury shares, short term securities and cash & cash equivalents. Short-term securities are valued using the First In First Out (FIFO) method. When the realizable value is lower than the acquisition cost, depreciation is recorded in the financial result for the amount of that difference. The Group applies the CRC 2008-15 rules relative to accounting, repealed and amended by ANC regulation 2014-03, for stock-options and free share attributions. As soon as it is likely that the entity will deliver existing shares to the plan beneficiaries, a liability should be accounted for, on the basis of a probability that an outflow of resources will be necessary. The value of the outflow of resources is estimated on the basis of the probable cost of buying back the shares if they are not already held or of their entry cost on the date of plan allocation, determined in accordance with the following principles:

if the allocation of options and free shares is subject ● to the fact that the beneficiary is still in the Company’s staff during a certain period of time, the accounting method for this liability is spread over the vesting period. The free shares attribution expenses are recorded in the income statement on the line employees expenses; the treasury shares allocated to specific plans ● remain measured at the acquisition cost and will not be depreciated. The booking cost is the acquisition cost (if the shares have been allocated to a specific plan since their acquisition) or their net book value at the plan allocation date in the case of a future allocation. The shares acquired with a view to be attributed to employees and that are not attached to a determined plan remain measured according to general rules that apply to marketable securities.

31 January 2020

31 January 2019

Short-term investments and cash & cash equivalents Treasury shares

2.9

4.1

Short-term securities

-

-

Cash & cash equivalents

405.2

150.6

TOTAL

408.1

154.7

Treasury shares

The number of treasury shares at 31 January 2020 is 138,436 of which 132,468 are held for the liquidity contract and 5,968 with the aim of fulfilling the obligations of the stock-option and free share plans attributed to employees and directors of the Group. Under the liquidity contract, shares cannot be sold freely except if the contract is cancelled. This contract was

signed with Exane BNP Paribas on 2 November 2005 for one year and is renewable by tacit agreement. The amount allocated to this contract was initially 8 million euros. The purpose is to reduce excessive volatility of the Quadient share and to improve liquidity.

Transactions in 2019 are the following:

31 January 2019 31 January 2020 Number Amount Number Amount Number Amount Number Amount Number Amount Bought Sold Transferred

Liquidity contract

152,142

3.7 488,343

9.8 (508,017)

(10.7)

-

- 132,468

2.8

Coverage of obligations

8,349

0.3 10,000

0.2

-

- (12,381)

(0.4)

5,968

0.1

TOTAL

160,491

4.0 498,343

10.0 (508,017)

(10.7) (12,381)

(0.4) 138,436

2.9

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UNIVERSAL REGISTRATION DOCUMENT 2019