QUADIENT - 2020 Universal Registration Document

6

FINANCIAL STATEMENTS Quadient S.A. statements of financial position

31 January 2021

31 January 2020

(Provision)/reversal of impairment on investments in affiliates

(4.4)

(63.8)

(Provision)/reversal of impairment on loans

7.9

1.1

(Provision)/reversal of impairment on treasury shares

(0.3)

0.2

TOTAL

34.6

9.5

Extraordinary income 11-3:

Non-deductible tax expenses: In accordance with article 223 quater of the French general tax code, the financial statements for the financial year ended the 31 January 2021 contain 95,185 euros of non-deductible expenses for income tax (article 39-4 of the French general tax code), but do not contain overhead costs, which are non-deductible for tax purposes (article 39-5 of the French general tax code). The French tax consolidation group includes the following companies in 2020: Quadient France which has merged with Neopost ● Services Quadient Finance France; ● Quadient Industrie France S.A.; ● Quadient Technologies France; ● Quadient Shipping. ● For financial year 2020, the tax benefit coming from the tax consolidation is 6.3 million euros (6.4 million euros for 2019), the tax charge resulting from witholding tax is 0.2 million euros and the tax benefit resulting from an adjustment to the distribution of minority interests. Losses carried forward amount to 55.7 million euros as at 31 January 2021. As at 31 January 2021, the Group tax result submitted to ordinary tax rate is a loss. Net income amounts to 29.6 million euros (11.1 million euros as at 31 January 2020).

Quadient S.A.’s extraordinary loss amounts to 0.2 million euros compared with a loss of 0.5 million euros as at 31 January 2020. Treasury shares disposals under the liquidity contract generate extraordinary income from capital transactions for 1.0 million euros (0.2 million euros at 31 January 2020) and extraordinary expenses from capital transactions for 1.2 million euros (0.7 million euros at 31 January 2020).

Income tax 11-4:

Quadient S.A. is the parent company of an integrated tax group under the terms of article 223A of the French general tax code. In this context, Quadient S.A. is only liable for income tax due by its subsidiaries with a view to determining the whole Group’s earnings. The tax consolidation agreement used in the Group is based on the principle of neutrality and plan that the tax burden is borne by the Company as in the absence of tax consolidation. The tax is thus calculated on the Company’s own taxable income. The tax savings realized by the Group, through losses, adjustments or tax credits, are retained by the parent company and regarded as an immediate gain for the year (in a year in which the Company show some profits, the parent company will then bear a tax charge).

Income before tax

Theoretical tax

Net income

Current income

23.2

5.2

28.4

Extraordinary Income (loss)

(0.2)

0.1

(0.1)

Sub-total

23.0

5.3

28.3

Tax credits offsetting

-

1.8

1.8

Tax witholding impact

-

(0.2)

(0.2)

Tax adjustment on distributions

-

0.5

0.5

Effect of tax consolidation

-

(0.8)

(0.8)

TOTAL

23.0

6.6

29.6

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UNIVERSAL REGISTRATION DOCUMENT 2020