QUADIENT - 2020 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

SHAREHOLDERS’ EQUITY AND EARNINGS PER SHARE NOTE 14

Shareholders’ equity 14-1:

14-1-1: SHARE CAPITAL

exchange rate for balance sheet items and at average rate over the period for income statement and cash-flow items. The resulting translation difference is recognized in the translation adjustment under shareholders’ equity. Cumulative translation adjustments as at 31 January 2021 amounted to (33.1) million euros compared with (3.8) million euros at 31 January 2020. Parent company retained earnings before appropriation of 2020 net income of the parent company amounted to 314.2 million euros as at 31 January 2021 compared with 315.1 million euros as at 31 January 2020. A dividend of 0.50 euros should be paid, subject to the 1 July 2021 General Meeting's approval in relation to the 2020 financial results. If approved, the dividend will be paid in cash and in one instalment. The dividend distributed in relation to the 2019 financial results was 0.35 euro, paid in cash on 9 September 2020. 14-1-5: DIVIDEND PER SHARE

At 31 January 2021, the parent company share capital totaled 34.6 million euros divided into 34,562,912 ordinary shares with a par value of 1 euro each. The share capital is fully released.

14-1-2: ADDITIONAL PAID-IN CAPITAL

Additional paid-in capital represents the net amount received by the Company in excess of the par value on issuance, fully distributable. As at 31 January 2021, additional paid-in capital amounted to 52.9 million euros, unchanged from 31 January 2020.

14-1-3: RESERVES AND RETAINED EARNINGS

This item mainly comprises cumulative net income over each financial year, as well as dividend payments and the delivery of free shares.

14-1-4: CUMULATIVE TRANSLATION ADJUSTMENTS

Financial statements of subsidiaries established in local currencies are translated into euros at the year-end

6

14-1-6: LIQUIDITY CONTRACT AND SHARE BUYBACK PROGRAM

Equity instruments acquired by the Company are deducted from shareholders’ equity. No gain or loss is recognized in the income statement on the purchase, sale, issue or cancellation of instruments representing Group shareholders’ equity.

Under the liquidity contract, shares cannot be sold freely by Quadient unless the contract is cancelled. This contract was signed in accordance with the French association of investment companies (AFEI) code of ethics, with Exane BNP Paribas.

31 January 2020

Free shares delivery

31 January 2021

Number of shares

Bought

Sold

Liquidity contract

132,468 643,259 (621,864)

-

153,863

Share-based payments

5,968

40,000

-

(26,464)

19,504

As at 31 January 2021, the Group held 153,863 shares within stock-option and free share allocation programs reserved the framework of the liquidity contact and 19,504 shares for employees and Group executives. This compares with for the purposes of fulfilling the commitments on the 132,468 and 5,968 respectively as at 31 January 2020.

201

UNIVERSAL REGISTRATION DOCUMENT 2020