QUADIENT - 2020 Universal Registration Document

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FINANCIAL STATEMENTS Quadient S.A. statements of financial position

For each consolidated position that is managed, the Group implements a hedging strategy at the same time as it sets the reference exchange rate to be defended. The hedging strategy involves a combination of definite or optional forward currency purchases or sales, along with open positions protected by stop losses. These stop losses are predetermined exchange rates that trigger transactions when they are hit. As a result, through the use of mathematical models, the hedging strategy enables a reference exchange rate to be defended from the start for the entire position in the event of adverse exchange rate fluctuations. Quadient S.A. uses the services of an independent consultancy based in Paris. This company assists Quadient

in the Group’s exchange rate risk hedging policy and values its portfolios, thus ensuring continuity of methodology and providing an opinion independent of any financial institution. Quadient S.A., as the centralizing Company, grants foreign exchange contracts at guaranteed exchange rates to subsidiaries exposed to exchange rate risks, and reverses the resulting positions in the market.

YEAR-END POSITION

The tables below show Quadient S.A.’s year-end hedging positions and commitments to its subsidiaries.

2020 FINANCIAL YEAR – ASSETS AND LIABILITIES HEDGING: HEDGING POSITIONS COVERING ❚ FINANCIAL ASSETS OR LIABILITIES ON QUADIENT S.A.’S BALANCE SHEET AT 31 JANUARY 2021 AND EXPECTED TO BE REALIZED NO LATER THAN APRIL 2021

Notional value

USD GBP CAD NOK JPY SEK CHF DKK CZK SGD AUD PLN

Financial assets

7.3 0.8 0.2 0.7 25.6 0.8 1.4 0.7 0.1

0.1

0.3

-

Foreign exchange contract assets

42.1

6.5 2.1

6.2 135.4 5.6 13.7 3.8 8.2 0.6 1.5 0.1

Total assets exposure

49.4 7.3 2.3 6.9 161.0 6.4 15.1

4.5 8.3 0.7 1.8 0.1

Financial liabilities

2.8 1.2

-

-

0.2

-

0.1

-

0.3 0.1

-

-

Foreign exchange contract liabilities

10.0 6.5 0.5 0.3 84.9 1.7 15.2 0.5 60.4 0.6 0.3 0.1

Total liabilities exposure

12.8 7.7 0.5 0.3 85.1

1.7 15.3 0.5 60.7 0.7 0.3 0.1

Net exposure before hedging 36.6 (0.4)

1.8 6.6 75.9 4.7 (0.2)

4.0 (52.4)

-

1.5

-

Hedging

(36.2)

- 4.8 (4.0) 138.5 (4.8) (6.1) (3.6) 52.4 (2.6) (1.5) (0.3)

NET EXPOSURE AFTER HEDGING

0.4 (0.4)

6.6 2.6 214.4 (0.1) (6.3)

0.4

- (2.6)

- (0.3)

2021 BUDGET: HEDGING POSITIONS COVERING ANTICIPATED FINANCIAL ASSETS AND LIABILITIES ❚ IN FINANCIAL YEAR 2021 EXPECTED TO BE REALIZED NO LATER THAN APRIL 2022

Notional value

USD GBP CAD NOK JPY SEK CHF DKK CZK SGD AUD PLN

Projected financial assets

25.2 2.9 0.7 3.1

99.6 3.7 2.0 2.0 0.2

-

2.7 0.1

Foreign exchange contract assets

177.5 34.4 18.7 42.7 1,425.9 61.3 39.1

23.5 75.6 5.8 8.2 0.6

Total assets exposure

202.7 36.9 19.4 45.8 1,525.5 65.0 41.1

25.5 75.8 5.8 10.9 0.7

Projected financial liabilities

8.2 0.3 0.1

0.1

0.6

-

0.2 0.2

1.0 0.1

0.4

-

Foreign exchange contract liabilities

102.1

23.3 5.7 1.4 1,151.7 4.6 56.2 5.3 856.1

7.2

1.1

1.8

Total liabilities exposure

110.3 23.6 5.8 1.5 1,152.3 4.6 56.4 5.5 857.1

7.3 1.5 1.8

Net exposure before hedging 92.4 13.3 13.6 44.3 373.2 60.4 (15.3) 20.0 (781.3) (1.5)

9.4 (1.1)

Hedging

(46.5) (7.1) (4.0) (12.0) (145.0) (26.1)

4.8 (7.0) 255.9

- (3.8)

-

NET EXPOSURE AFTER HEDGING

45.9 6.2 9.6 32.3 228.2 34.3 (10.5) 13.0 (525.4) (1.5)

5.6 (1.1)

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UNIVERSAL REGISTRATION DOCUMENT 2020