QUADIENT - 2020 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

Executive compensation 10-6:

The main role of the management team is to make strategic decisions for the Group and coordinate their implementation around the world. The gross remuneration of the management team amounted to 4.3 million euros in 2020, compared with 4.3 million euros in the previous year. Variable remuneration is determined on the basis of attaining Group sales, operating income and capital employed targets. The Group recognized an expense of 0.6 million euros in 2020 in respect of free shares allocation plans granted to the management team, compared with 0.7 million euros in 2019. 73,000 shares were granted to members of the management team during the 2020 financial year compared with 83,000 in the previous year.

With respect to pensions, the Chief Executive Officer, as well as a number of other Group executives, benefit from a defined contribution pension plan (article 83 of the French general tax code), into which is paid a total of 5 of their remuneration, within the limit of five times the social security ceiling. Some enjoy a defined benefit pension scheme (article 39 of the French general tax code) with an annuity obligation of 1.1 of pay per year of service for a minimum of eight years and a maximum of twenty years. This annuity is paid after the deduction of the annuities paid within the usual defined contribution plans. There are no new beneficiaries in the defined benefit pension scheme. The amount of these liabilities at the end of January 2021 totaled 0.6 million euros compared with 2.2 million euros as at 31 January 2020 and concerns the members of the management team. The cumulative payments stand at 6.8 million euros as at 31 January 2021.

OTHER PROVISIONS, CONTINGENT LIABILITIES NOTE 11 AND OTHER NON-CURRENT DEBTS

Other provisions

11-1:

11-1-1: ACCOUNTING PRINCIPLES

6

Provisions are recognized when the following conditions are met simultaneously at the end of the period in question: a current obligation (legal, regulatory, contractual or ● implied) resulting from past events;

a probability that an outflow of resources will be ● necessary to extinguish the obligation with no offset expected; an amount that can be reliably measured. ● Provisions are split on the balance sheet between current and non-current liabilities.

11-1-2: CHANGES IN OTHER PROVISIONS

31 January

31 January 2021

Current portion

Non-current portion

2020 Added Used Non-used Other

Other provisions Structure optimization

4.5

15.2 (13.9)

(0.6)

0.3

5.5

5.5

-

Business risk/customer guarantees

0.2

0.3 (0.0)

0.0 0.0

0.5

0.5

-

Dispute provisions

4.1

0.9 (0.7)

(0.1) (0.0)

4.2

1.9

2.3

Other

3.7

1.5 (1.2)

(0.2) (0.2)

3.6

2.3

1.3

12.5

17.9 (15.8)

(0.9)

0.1

13.8 10.2

3.6

Retirement benefit obligations – note 10-3 25.0 2.3 (3.8)

0.0 (0.3)

23.2

-

23.2

Long term incentives – note 10-5

1.4 0.0 (0.9)

(0.5) (0.0)

0.0 0.0

0.0

TOTAL

38.9 20.2 (20.5)

(1.4) (0.2)

37.0 10.2

26.8

181

UNIVERSAL REGISTRATION DOCUMENT 2020