QUADIENT - 2020 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

31 January

31 January 2020

Current portion

Non-current portion

2019 Added Used Non-used Other

Other provisions Structure optimization

5.1

11.3 (10.9)

(1.2)

0.2

4.5

4.5

-

Business risk/customer guarantees

0.3

0.0 (0.1)

-

-

0.2

0.2

-

Dispute provisions

4.4

1.0 (0.7)

(0.4) (0.2)

4.1

1.9

2.2

Other

2.8

2.9 (5.6)

(0.1)

3.7

3.7

2.3

1.4

12.6 15.2 (17.3)

(1.7)

3.7

12.5

8.9

3.6

Retirement benefit obligations – note 10-3 22.3

3.4 (1.2)

-

0.5

25.0 0.0

25.0

Long term incentives – note 10-5

1.6

0.5 (0.6)

(0.1)

-

1.4

1.4

-

TOTAL

36.5

19.1

(19.1)

(1.8)

4.2

38.9 10.3

28.6

Structure optimization The Group pursues the optimization of its operations. Provisions totaling 4.5 million euros were booked as at 31 January 2020. In 2020, additional expenses of 15.2 million euros were booked and (13.9) million euros were used.

As at 31 January 2021, the balance of these provisions is 5.5 million euros.

Other As at 31 January 2021, a total 3.6 million euros (3.7 million euros as at 31 January 2020) is booked under “Other provisions”.

Contingent liabilities 11-2:

11-2-1: ACCOUNTING PRINCIPLES

Unlike the definition of provision given in note 11-1-1, a contingent liability is: either a possible obligation that arises from past ● events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or a present obligation that arises from past events ● but not recognized because it is unlikely that an

outflow of resources embodying economic benefits will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized and are described in the notes when they are material, except in the case of business combinations where they are identifiable items that are backed by present obligations and can be estimated reliably.

11-2-2: CONTINGENT LIABILITIES IDENTIFIED

In their everyday activities, Quadient entities in France and abroad are regularly subject to tax investigations. Tax adjustments or uncertain tax positions not yet subject to tax adjustment, are covered by appropriate provisions.

The amount of these provisions is regularly reviewed. The Group has not identified any significant contingent liability as at 31 January 2021.

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UNIVERSAL REGISTRATION DOCUMENT 2020