QUADIENT - 2020 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

31 January 2020

Breakdown by instrument category

Loans and receivables/ debts

Debts at amortized costs

Fair value through P&L

Derivative instruments

Book value

Fair value

Non-current financial assets

61.0

61.0

9.2

47.7

-

4.1

Lease receivables (a)

698.4

717.2

-

698.4

-

-

Other long term receivables

3.8

3.8

-

3.8

-

-

Receivables (b)

233.2

233.2

-

233.2

-

-

Other receivables (b)

6.2

6.2

-

6.2

-

-

Derivative financial instruments (c)

1.3

1.3

-

-

-

1.3

Cash and cash equivalents (d)

498.3

498.3

-

498.3

-

-

ASSETS

1,502.2

1,521.0

9.2

1,487.6

-

5.4

Financial debts and bank overdrafts (e)

1,085.5

1,091.0

158.6

-

926.9

-

Other long-term debts

1.3

1.3

-

1.3

-

-

Accounts payable (b)

79.5

79.5

-

79.5

-

-

Other operating liabilities (b)

201.4

201.4

-

201.4

-

-

Derivative financial instruments (c)

2.0

2.0

-

-

-

2.0

LIABILITIES

1,369.7

1,375.2

158.6

282.2

926.9

2.0

Due to the large number of deals handled by the leasing entities, the Group did not perform an individual valuation for each deal. The assumptions (a) used are the following: average maturity of three years for the portfolio, yield curve ending on 31 January 2020 and constant exchange rate. The valuation is performed excluding credit spread. The British and American postage financing portfolios are comprised of very short-term maturities (less than one month) and renewable credits, the fair value considered is the same as the one booked in the balance sheet. Historical cost valuation. (b) Valuation method described in note 12–4. (c) Valuation based on realizable value. (d) The fair value of the debt includes the portion of the 2.50 Quadient S.A. bond that was swapped for 125 million euros and the portion of (e) the Schuldschein debt that was swapped for 29.5 million euros. Swaps and debt are recognized at their fair value as mentioned in note 12–4. Concerning the debt accounted for at amortized cost, the main amounts are broken down as follows: - for all floating-rate debt described in note 12-2-6, the drawdown is performed on a one-month, three-month and six-month basis and with a variable rate (EURIBOR and USD LIBOR); there is no difference between the fair value and the value in the balance sheet which represents an amount of 531.1 million euros; - concerning fixed rate debts, the fair value has been calculated from the yield curve as at 31 January 2020. The difference between the fair value

and the value as appearing in the balance sheet is 12.5 million euros. Debts in foreign currencies are valued at constant exchange rates.

Financial debt analysis 12-2:

12-2-1: ACCOUNTING PRINCIPLES

Interest-bearing loans Interest-bearing loans are initially recognized at their fair value less directly attributable transaction costs. After initial recognition, interest-bearing loans are measured at amortized cost: any difference between the nominal value (net of transaction costs) and the repayment value is taken in the income statement over the life of the loan, using the effective interest rate method.

Net financial debt Net financial debts include interest-bearing loans and interest payables, net of cash and cash equivalents.

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UNIVERSAL REGISTRATION DOCUMENT 2020