QUADIENT - 2020 Universal Registration Document

6

FINANCIAL STATEMENTS Quadient S.A. statements of financial position

NOTE 7

TRANSACTIONS IN FOREIGN CURRENCIES

A translation adjustment is determined for each asset or between assets and liabilities denominated in one liability denominated in a foreign currency, at the currency and having the same maturity, to determine closing exchange rate. Translation differences are offset the foreign exchange losses provision.

Assets and liabilities translation differences are offset between hedging financial instruments (exchange rate futures) and the appropriate receivables and payables, to determine the provision. This offset amounted to 16.8 million euros at 31 January 2021 and the provision is recorded for an amount of 0.8 million euros. As of 31 January 2021, the translation adjustment asset comes out at 4.8 million euros and the translation adjustment liability at 16.8 million euros.

The revaluation of the current accounts in foreign currencies, bank accounts in foreign currencies and associated hedges is accounted in the financial result of Quadient S.A. As at 31 january 2021 Quadient S.A. recognized in this respect, a foreign exchange gain of 28.0 million euros and a foreign exchange loss of 9.2 million euros.

SHAREHOLDERS’ EQUITY NOTE 8

Capital

Reserves and retained earnings 8-3:

8-1:

At 31 January 2021, the 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. There was no change during financial year 2020.

This item mainly comprises cumulated net income over the years and dividend payments.

Dividend per share 8-4:

Additional paid-in capital 8-2:

Retained earnings before appropriation of 2020 net income amount 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 euros and it was paid in cash the 9 September 2020.

Additional paid-in capital represents the net amount received by the Company in excess of the par value on issuance, fully distributable. At 31 January 2021, additional paid-in capital amounts to 52.9 million euros. There was no change during 2020 financial year.

CONTINGENCY AND LOSS PROVISIONS NOTE 9

Contingency and loss provisions, are intended to cover risks and expenses that are likely because of past or on-going events, and whose amount or maturity are uncertain.

The provision amount corresponds to the best estimate of the cash-out with no equivalent offset.

31 January 2020

31 January 2021

Added

Used

Non-used

Maturity

Contingency provisions Unrealized foreign exchange losses

9.5

-

(8.7)

-

0.8

n/a

Total contingency provisions

9.5

-

(8.7)

-

0.8

Loss provisions Retirement indemnities

0.8

-

-

-

0.8

n/c

Treasury shares

0.1

0.3

-

-

0.4 1 to 2 years

Phantom shares

0.1

-

-

(0.1)

-

closed

Others

-

2.3

-

-

2.3

n/a

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UNIVERSAL REGISTRATION DOCUMENT 2020