QUADIENT - 2019 Universal Registration Document

4 RISK FACTORS AND INTERNAL CONTROL Insurance

EXCHANGE RATE RISK

Impact on net income before tax on 2020 budget

Impact on equity as at 31 January 2020

Increase of 5 %

Decrease of 5 %

Increase of 5 %

Decrease of 5 %

(In million euros)

USD

4.1

(4.1)

(18.5)

18.5

GBP

0.5

(0.5)

(3.1)

3.1

INTEREST RATE RISK

31 January 2020

Impact on USD denominated debt

Impact on EUR denominated debt

Impact on net income before tax

Impact on equity

(In millions euros)

Impact of a rise of + 0.5 % in interest rates Impact of a decrease of (0.5) % in interest rates

(1.2)

0.2

0.1

(1.1)

1.2

1.0

-

2.2

Insurance 4.2

All Group companies are covered by a worldwide insurance program which covers operating damage and loss, liability, and transport risks. All Group subsidiaries adhere to the guarantees set up and negotiated at Group level, subject to local regulatory restrictions or specific geographic exclusions. Quadient’s risks include a high level of geographic dispersion, which substantially dilutes the consequences of any claim. The cover negotiated by the Group is high and is above all aimed at insuring the largest risks which might have a material impact on the Group’s financial position. The operating damage and loss insurance cover was renegotiated for two years on February 1, 2019 with an increase of kick-back in exchange for an extended commitment to January 31, 2021. The insurance covering transport risks was renewed on February 1, 2020 under the same conditions.

The insurance policy covering “liability” was renegotiated and renewed for two years period ending on 31 January 2021. Given the development of Quadient in software activities, it was decided in 2014 to cover the risk of possible claims from third parties against Quadient for infringement of copyright and intellectual property. The policy was renewed on February 1, 2019 for two years. Finally, it has been decided to cover cyber risks in June 2019. Total cost of insurance amounted to 0.7 million euros in 2019. The Group’s insurance policies are regularly updated to reflect changes in the Group’s scope of consolidation and to cover industrial risks within the global insurance market framework. The Group’s guarantees are placed with leading insurers with worldwide reputations.

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UNIVERSAL REGISTRATION DOCUMENT 2019