QUADIENT - 2020 Universal Registration Document

QUADIENT IN BRIEF

MESSAGE FROM THE CHAIRMAN

DIDIER LAMOUCHE CHAIRMAN OF THE BOARD

"AFTER THE SUCCESSFUL COMPLETION OF THE FIRST

PHASE OF THE TRANSFORMATION, THE BOARD HAS FULL CONFIDENCE IN THE SUCCESS OF THE SECOND PHASE OF THE BACK TO GROWTH PLAN."

To the Shareholders,

To this end, the Board supervised the preparation of the second phase of Back to Growth. After reviewing the various options available to us, we set a bold new target for the next three years, with the aim of creating sustainable value for Shareholders. In keeping with our deleveraging objectives and maintaining our dividend policy, we will allocate excess cash between organic investments, acquisition opportunities and share buybacks. By becoming a signatory of the United Nations Global Compact, Quadient also confirmed its CSR commitments. As a responsible company, the Board is very proud of the recognition granted to the Company by non-financial rating agencies, with the renewal of the “Prime” status by ISS ESG, the “Gold” medal awarded by EcoVadis or its sixth place in the overall ranking of Gaïa Research. Lastly, the Board is very pleased with the closer dialogue engaged with our shareholders, especially during the “Governance” roadshow organized at the end of the year: this increased communication, which is ever more necessary in this turbulent time, enabled us to explain the relevance of our strategic choices and address topics representing ma jor areas of concern for some of our shareholders. After the successful completion of the first phase of the transformation, the Board has full confidence in the success of the second phase of the Back to Growth plan.

The health crisis suddenly interrupted a series of seven consecutive quarters of organic revenue growth. From the very start of the pandemic, every effort was immediately made to protect our employees while ensuring business continuity. In this dramatic and unprecedented context, the Board of Directors promoted and recognized the outstanding agility demonstrated by the Company in order to mitigate the financial impact from the crisis as much as possible. Beyond the resilience of the business, Quadient maintained strong profitability through cost control, generated strong free cash flow and preserved its solid financial position. In parallel, Quadient continued to invest in the future and implement its Back to Growth strategic plan. The Board supported a number of initiatives aimed at continuing the transformation of the Company and taking full advantage of the acceleration of the shift to digital and booming e-commerce: divestments, acquisition of two North American FinTechs, implementation of new distribution partnerships and further development of the parcel locker business. The first phase of the plan enabled to conduct an in-depth transformation of the organisation, refocus the business portfolio and implement a number of synergies. However, half-way through this plan, it was necessary to review our ma jor orientations and take into account the effects from COVID-19.

Didier LAMOUCHE

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UNIVERSAL REGISTRATION DOCUMENT 2020