QUADIENT - 2020 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

Off-balance sheet commitments related to operational activities 6-10:

Currency

31 January 2021

31 January 2020

Bank guarantee in favor of the British postal service

GBP

0.8

0.8

Bank guarantee in favor of the Irish postal service

EUR

1.7

1.7

NOTE 7

SEGMENT INFORMATION

Since the announcement of the Group’s strategy in January 2019, Quadient's activity is split into two big categories: the Major Operations and the Additional Operations. Major Operations ● Quadient focuses on four major solutions which are businesses where Quadient has already built strong legitimacy and that have the potential to reach a significant size and/or provide significant growth potential. These solutions are (1) the Mail-Related solutions, (2) the Business Process Automation, (3) the Customer Experience management and (4) the Parcel Locker Solutions. From a geographical standpoint, Quadient concentrates its efforts on twelve countries gathered in four segments: North America (NORAM), France - Benelux (FR-BNL), Germany, Austria, Switzerland, Italy (DACH-IT) and United Kingdom -Ireland (UK-IE).

At the beginning of 2020, a fifth segment has been created in the major operations, the International segment which groups two activities: the Parcel Lockers in Japan and Customer Experience Management solutions in the other regions of the world. These two activities have revealed a strong potential of growth for the future and a real complementarity with the rest of the major operations. Additional Operations ● The portfolio of additional operations includes operations outside the main geographies as well as other activities, in particular graphics activities, other shipping software solutions and the automated packing system (CVP). The segment “Innovation” includes in 2019 and in 2020 the charges linked to the development of new projects for Customer Experience management.

Quadient’s net income breaks down by segment as follows:

Major Operations

Additional Operations

31 January 2021

FR-BNL NORAM DACH-IT UK-IE International Innovation

Total sales

1,029.4

186.6 501.3

101.0

79.6

50.7

0.1

919.3

110.1

Segment income

151.6

42.2 93.1

12.5 9.5

4.5

(9.1)

152.7

(1.1)

n/a 16.6

(1.0)

14.7

22.6

18.6

12.4

11.9

8.9

in percentage

Expenses related to acquisitions

(19.5)

Current operating income

132.1

Structure optimization expenses

(16.4)

Proceeds from net assets sales

(0.2)

Other operational expenses and income

(19.6)

Operating income

95.9

Financial result

(31.6)

Share of results of associated companies

0.9

Income taxes

(23.8)

NET INCOME

41.4

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UNIVERSAL REGISTRATION DOCUMENT 2020