QUADIENT - 2020 Universal Registration Document

4 RISK FACTORS AND INTERNAL CONTROL

Internal control and internal audit procedures

Accounting and financial information

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 Quadient 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 2021, 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.

PREPARATION AND RELIABILITY CONTROL OF INFORMATION Each Group subsidiary has a team which reports to the local Chief Financial Officer who is a member of the subsidiary’s management committee. Each team includes a management control structure and is responsible for preparing accounting and management data as part of the monthly reporting process. The Group finance department is responsible for identifying changes in operating conditions in order to anticipate any possible impacts these may have on the Group’s accounting principles. Group management is also informed about significant local developments at regular operational reviews, and during other visits to subsidiaries. The Group financial controlling department has the role of coordinator in this domain. 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.

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UNIVERSAL REGISTRATION DOCUMENT 2020