QUADIENT - 2019 Universal Registration Document

FINANCIAL STATEMENTS Statutory auditors’ report on the financial statements

Financial assets in subsidiaries

Risk identified

Our response

Financial assets in subsidiaries amounted to 1,376 million euros net as at January 31, 2020. As described in Note 4 to the annual financial statements (“Financial assets”), financial assets are valued at their acquisition cost or at their contribution value. An impairment test is carried out at least once a year through the projection of future cash flows. These cash flows are based on revenue and operating income growth assumptions over five years. Impairment is recorded when the assets’ recoverable value is lower than their carrying value. The impairment test carried out as at January 31, 2020 resulted in a depreciation of 64 million euros. The result of this test relies on the judgments and estimates of management, on which these assumptions are based. Assumptions change could lead to material differences in the estimated recoverable amount, impacting both potential impairment charges and also potential reversals of impairment recorded in prior years.

We have assessed compliance of the methodology used by the Company for test indicators and the estimate of the recoverable value of each investment with accounting standards. We have analyzed the consistency of forecasts of future cash flows prepared by Management and compared the assumptions with available data on the market. We have compared the carrying amounts of the Company’s investments in subsidiaries with the recoverable amount of the asset resulting from future cash flows of all subsidiaries. In addition, we have also compared these book values of investments in subsidiaries with the share of equity of all subsidiaries restated of dividends paid over the last 3 years. We have also examined the appropriateness of the information provided in the notes to the annual financial statements.

SPECIFIC VERIFICATIONS

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations.

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Information given in the management report and in the other documents with respect to the financial position and the financial statements provided to the shareholders

We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors, as approved on March 27, 2020, and in the other documents with respect to the financial position and the financial statements provided to the shareholders. Regarding the events that occurred, and the elements known after the date of approval of the financial statements relating to the effects of the Covid-19 crisis, Management has informed us that such events and elements will be communicated to the annual general meeting called to decide on these financial statements. We attest the fair presentation and the consistency with the financial statements of the information relating to payment deadlines mentioned in Article D. 441-4 of the French Commercial Code ( Code de commerce ). We attest that the Board of Directors’ Report on Corporate Governance sets out the information required by Articles L. 225-37-3 and L. 225-37-4 of the French Commercial Code ( Code de commerce ). Concerning the information given in accordance with the requirements of Article L. 225-37-3 of the French Commercial Code (Code de commerce) relating to remunerations and benefits received by, or allocated to the directors and any other commitments made in their favor, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your Company from companies controlled thereby, included in the consolidation scope. Based on these procedures, we attest the accuracy and fair presentation of this information. With respect to the information relating to items that your Company considered likely to have an impact in the event of a takeover bid or exchange offer, provided pursuant to Article L. 225-37-5 of the French Commercial Code ( Code de commerce ), we have agreed this information to the source documents communicated to us. Based on these procedures, we have no observations to make on this information. Report on Corporate Governance

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UNIVERSAL REGISTRATION DOCUMENT 2019