QUADIENT - 2019 Universal Registration Document

QUADIENT IN BRIEF

THREE QUESTIONS FOR THE CHIEF EXECUTIVE OFFICER

GEOFFREY GODET CHIEF EXECUTIVE OFFICER

“COMMITTED TO AN AMBITIOUS STRATEGY, WE ARE FACING THE COVID-19 CRISIS WITH A NEW ORGANIZATIONAL STRUCTURE THAT IS FULLY OPERATIONAL AND MANY STRENGTHS”

business, particularly in the United States, and our three other solutions posted strong double-digit growth. All the credit for this goes to our teams, who were able to galvanize our commercial performance by leveraging the investments made to advance our strategy. Finally, thanks to the improved profitability of our additional operations, our EBIT margin remained high despite our increased investments and the change in our business mix. Covid-19 has pushed the start of the 2020 financial year into uncharted territory. Are you well equipped to cope with this crisis? While our priority was first to protect our employees and the continuity of service for our customers and partners, we are entering this situation with many strengths on our side. We have a structurally resilient business model with a high proportion of recurring revenue. We also have a certain amount of flexibility since most of our equipment manufacturing is subcontracted, which creates a lot of variability in our cost base. I would also add that our balance sheet is utterly healthy and our liquidity is robust. Nevertheless, we are managing the situation as closely as possible. We are implementing cost-saving measures and undertaking investment arbitrage while remaining fully committed to our ambitious strategy. We believe that the crisis and the lockdown periods that have been instituted will reinforce the value of our solutions, particularly omnichannel management of customer interactions, paperless mail, the automation of invoicing procedures and parcel locker solutions.

How has Quadient changed since you announced your “Back to Growth” strategic plan in early 2019? Our choice to focus on four ma jor solutions led to an intense reorganization. We shifted from being a holding company uniting multiple businesses that were managed independently and in a decentralized way to being an integrated company. To implement this transformation, we restructured the management team. We hired new people, many of whom had international experience. Finally, we adopted a new identity: Quadient, a brand that is better suited to fulfill our ambitions. Our new organizational structure is now fully operational. In both North America and Europe, each of our regions handles the sales, implementation and maintenance of the solutions installed at our customers' sites. We are using our new organizational structure to enhance commercial and back-office synergies, pool our R&D efforts and take advantage of a streamlined supply and logistics chain. As for our additional operations grouped within a separate division, we have discontinued the operations of one nonstrategic subsidiary, we have divested three other subsidiaries, and overall, we have restored profitability to the whole entity.

How would you describe the Group's 2019 performance?

With organic growth of 1.6%, we recorded our best performance since 2013. This illustrates the relevance of our strategic choices. Thanks to our efforts, we continued to gain market share in our mail-related

3

UNIVERSAL REGISTRATION DOCUMENT 2019