QUADIENT - 2020 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

4-1-3: BREAKDOWN OF GOODWILL BY CASH-GENERATING UNIT (CGU) OR GROUP OF CGUS According to IAS 36, the goodwill must be allocated to each CGU or group of CGUs expected to benefit from the synergies of the business combination. Each CGU or group of CGUs to which the goodwill is so allocated must represent the lowest level within the entity at which the goodwill is monitored for internal management purposes and not be larger than an operating segment as defined by the IFRS 8 – Operating Segments, before aggregation.

The value of goodwill determined by the Group is monitored at the level of operational segments, consisting of the geographical areas where Group activities are conducted. This level of test of the goodwill is based on organizational and strategic criteria (interdependance of flows, commercial synergies, integrated solutions in commercial offers...). The Group keeps monitoring separately the goodwill allocated to CGU or group of CGUs “Additional Operations”, Parcel Pending and YayPay.

The level of analysis at which Quadient determines the recoverable amount of the goodwill thus corresponds to the following CGUs or groups of CGUs:

31 January 2021

31 January 2020

North America (NORAM)

392.7

415.3

France - Benelux (FRBNL)

203.5

203.6

United Kingdom - Ireland (UK-IE)

149.1

149.0

Germany - Austria - Italy - Switzerland (DACH-IT)

146.3

146.5

Parcel Pending

83.6

91.9

International (a)

36.2

36.2

YayPay

12.3

-

Major Operations

1,023.7

1,042.5

Additional Operations (a)

2.3

2.8

6

GOODWILL NET BOOK VALUE

1,026.0

1,045.3

International and Additional Operations gathered several CGUs or group of CGUs. (a)

Intangible fixed assets 4-2:

4-2-1: ACCOUNTING PRINCIPLES

Intangible fixed assets acquired separately are recognized at acquisition cost. Intangible fixed assets acquired as part of a business combination are recognized at fair value on their acquisition date, separately from goodwill if they meet the two following conditions: they are identifiable, i.e. they result from legal or ● contractual rights; they are separable from the acquired entity. ● Intangible fixed assets include software, patents, lease rights and activated development expenses. Development expenses In accordance with IAS 38, development expenses meeting the following conditions are recognized as intangible fixed assets:

the project is clearly identified and the costs relating ● to it are individually identified and reliably monitored; the technical feasibility of the project has been ● demonstrated; there is a proven intention to complete the project ● and use or sell the products developed under it; the necessary resources for completing the project ● are available; the existence of a potential market for the ● production arising from this project or its internal usefulness has been demonstrated. Such development expenses are amortized over a period of four to ten years, reflecting the average useful life of marketed products. Other intangible fixed assets Other intangible fixed assets are amortized on a straight-line basis over a period representing the best estimate of the assets’ useful life.

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UNIVERSAL REGISTRATION DOCUMENT 2020