QUADIENT - 2019 Universal Registration Document

CORPORATE OVERVIEW Organizational structure

1.3.5

INVESTMENTS

1

Excluding acquisitions, Quadient invested 109.3 million euros in 2019 compared with 87.9 million euros in 2018 and 98.8 million euros in 2017. This amount includes 13.5 million euros related to the implementation of IFRS 16. Details of investments are shown in the table below:

31 January 2020

31 January 2019

31 January 2018

(In millions of euros)

Acquisition of software

1.8

2.6

3.8

Capitalisation of development expenses

31.1

29.2

27.9

Acquisition of machinery and equipment

1.7

4.3

3.6

Rented equipment

49.7

37.0

52.4

IT implementation costs

0.0

0.0

1.4

Other investments

11.5

14.8

9.7

Assets right of use IFRS 16

13.5

-

-

TOTAL

109.3

87.9

98.8

The breakdown of investments by geographical area is the following:

31 January 2020

31 January 2019

(In millions of euros)

Main european countries (1)

21.0

19.6

North America

30.5

22.0

Additional operations

24.7

20.4

Other

33.1

25.9

TOTAL

109.3

87.9

The main European countries are: Germany, Austria, Benelux, France, Ireland, Italy, United-Kingdom and Switzerland. (1)

Regarding acquisitions, the Group invested, net of divestments, 11.9 million euros in 2019, compared with 26.3 million euros in 2018, mainly linked to the investment in Parcel Pending and the divestment of Satori Software. These investments and acquisitions were financed either with Group cash or with existing credit lines.

Quadient is setting an envelope dedicated to bolt-on acquisitions amounting to 100 million euros, net of divestments, on average per year over the 2019-2022 period. In addition, Quadient aims at spending on average 100 million euros per year in capital expenditure which would be mostly allocated to Major Operations.

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UNIVERSAL REGISTRATION DOCUMENT 2019