QUADIENT - 2020 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

The exchange rates for the main Group’s main currencies are as follows:

31 January 2021

31 January 2020

Period end

Average

Period end

Average

United States dollar (USD)

1.21

1.15

1.11

1.12

Pound sterling (GBP)

0.88

0.89

0.84

0.87

Canadian dollar (CAD)

1.55

1.54

1.46

1.48

Swiss franc (CHF)

1.08

1.07

1.07

1.11

Japanese yen (JPY)

127.05

122.19

120.35

121.87

Norwegian krone (NOK)

10.34

10.76

10.19

9.85

Swedish krone (SEK)

10.11

10.45

10.68

10.60

Danish krone (DKK)

7.44

7.45

7.47

7.47

Australian dollar (AUD)

1.58

1.65

1.65

1.61

Singapore dollar (SGD)

1.61

1.58

1.51

1.52

Indian rupee (INR)

88.43

85.40

78.91

78.77

Brazilian real (BRL)

6.66

6.05

4.72

4.44

Chinese yuan (CNY)

7.80

7.89

7.67

7.73

Czech koruna (CZK)

26.02

26.53

25.21

25.62

Hungarian florin (HUF)

358.39

353.27

337.05

326.45

Polish zloty (PLN)

4.53

4.47

4.30

4.30

New-Zealand dollar (NZD)

1.69

1.76

1.71

1.70

6

NOTE 3

SCOPE AND PRINCIPLES OF CONSOLIDATION

Accounting policies relating to the scope of consolidation

Changes in the scope of consolidation

3-1:

3-2:

The consolidated financial statements include the financial statements of Quadient S.A. and its subsidiaries. Unless otherwise stated, the subsidiaries are consolidated as from the date on which control is acquired by the Group and until the date on which control is transferred outside the Group. Control is the power to direct a company’s financial and operational policies in order to derive profit from its activities. Changes in the scope of consolidation for the 2020 financial year are the following: on 28 February 2020, Quadient divested the company ● ProShip Inc.; the company Cesar Holding Inc has been created on ● 13 July 2020. Quadient Holding USA Inc. helds 87 of the company which is fully consolidated at 100 as a result of the special status of minority shareholders; on 29 July 2020, Cesar Holding Inc acquired 100 of ● the company YayPay Inc., fully consolidated; the company Neopost Services has been merged with ● Quadient France retroactive to 1 February 2020; the company Francotech GmbH has been merged with ● Quadient Germany Gmbh effective 1 February 2020; on 21 January 2021, Quadient divested the company ● Quadient Oceania Pty Ltd.

The Group’s consolidated financial statements are pre- pared in accordance with generally accepted accounting principles in the country of operation. Financial statements of foreign companies have been restated to be compliant with Quadient Group’s accounting principles. The consolidated balance sheet incorporates all items of assets and liabilities along with the results of consolidated companies. Intra-Group transactions and profits relating to these operations as well as intra-Group capital gains are eliminated. Subsidiaries controlled directly by the parent company or indirectly through other subsidiaries are consolidated using the full consolidation method. Stakes in associated companies over which the investor exerts significant influence are consolidated using the equity method. Significant influence is assumed when the investor controls directly or indirectly through subsidiaries 20 or more of the voting rights in the Company in question.

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UNIVERSAL REGISTRATION DOCUMENT 2020