QUADIENT - 2020 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

12-2-8: FAIR VALUE OF DEBTS

The book values of current loans and variable rate debts are close to their fair values. Fixed rate debts are analyzed as follows:

31 January 2021

Accrued interest

Fair value +50 bps

Fair value -50 bps

Book value

Fair value

Bond issue – Quadient S.A. 2.50 350 MEUR Bond issue – Quadient S.A. 2.25 325 MEUR

163.9

2.5

164.2

164.2

164.1

323.5

7.5

327.8

334.4

321.1

Schuldschein EUR

279.0

2.6

288.0

276.8

274.0

Schuldschein USD

131.4

0.7

131.5

131.6

131.5

Financial income and expenses 12-3:

12-3-1: ACCOUNTING PRINCIPLES

Effective interest rate The effective interest rate is the rate used to precisely discount future cash flows to maturity, so as to obtain the net value of the debt at the initial recognition date. To calculate the effective interest rate of a financial debt, the future cash flows are determined based on the contractual repayment dates. Transaction costs Transaction costs are the marginal costs directly attributable to the arrangement of a credit facility.

These include fees and commissions paid to brokers and advisers, levies charged by the market authorities, stock exchange fees and transfer taxes and duties. However they do not include issue premiums, the allocation of internal administrative expenses and head office expenses. For financial debt measured at amortized cost, transaction costs are included in the amortized costs calculation using the effective interest rate method and are amortized in the income statement over the life of the instrument.

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12-3-2: COST OF DEBT

The table below represents the gross cost of debt by currency after exercise of the hedging instruments and the effects of the valuation of portfolio interest rate transactions for the financial year ended on 31 January 2021. The calculation is based on the debt detailed in the note 12-2-2.

The net financing cost rate, calculated from the net cost of debt, i.e. 27.4 million euros, divided by the average net debt (average financial debt – average cash and cash equivalents) during the year, equals 2.99 .

Currency

Gross rate

Amount in currency

2.27 2.27

Euros (EUR)

16.6

Financial costs before hedging impact

16.6

Hedging impact

-

-

4.16 4.23

United States dollars (USD)

12.3

Financial costs before hedging impact

12.5

(0.07)

Hedging impact

(0.2)

12-3-3: CAPITALIZED/AMORTIZED DEBT COSTS

The costs related to the arrangement of the different debts amount to 0.2 million euros for the year 2020.

The difference between the straight-line amortization of these costs and the calculation of the amortized cost of capital is not material, therefore there has been no restatement for the IFRS financial statements.

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UNIVERSAL REGISTRATION DOCUMENT 2020