QUADIENT - 2019 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Internal control and internal audit procedures

CONSOLIDATION The current electronic reporting and consolidation system, which is in place at all Group consolidated subsidiaries, delivers consistent monitoring of budget and management data, improves lead times for producing the data (through automatic task scheduling management, with a reminder system) and improves the accuracy of consolidation information. Using the analysis data which is provided by the subsidiaries’ management control departments via this system and reviewed by local management, the Group’s chief financial officer receives a permanent flow of data that explains any differences in the consolidated reporting. The number of access authorizations to the information system is limited to a certain number of people per subsidiary to ensure the reliability and integrity of the reporting and consolidation data. This system has made it possible to monitor management indicators; it also produces sales and marketing data for the subsidiaries.

CASH AND FINANCING Neopost S.A.’s financial team manages the Group’s cash centrally. In order to mitigate the Group’s risk exposure, the Company has developed procedures, including exchange rate and interest rate risk management, cash pooling and the optimization of the Group’s financing requirements. FORECASTS Quadient provides its shareholders with information on its medium-term forecasts. These forecasts are formulated based on the Group’s three-year plan and take into account market conditions at the beginning of 2020, namely the competitive environment and the economic conditions in the countries where the Group operates. Should there be a significant change in market conditions or the competitive environment, the Group cannot guarantee that it would be able to achieve its forecasts.

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UNIVERSAL REGISTRATION DOCUMENT 2019