QUADIENT - 2020 Universal Registration Document

FINANCIAL STATEMENTS Quadient S.A. statements of financial position

HEDGING INSTRUMENTS

The Group uses symmetric options tunnels in particular. These option instruments are unlikely to be exercised in a reciprocal manner in terms of the spot exchange rate or expiry date. As a result, for each tunnel only one of the two options is reported in the table above. The value of the commitment in these symmetric options is 20.5 million United States dollars sold, 1.8 million British pounds sold, 1.5 million Canadian dollars sold, 2.0 million Norwegian krona sold, 30.0 million Japanese yen sold, 5.0 million Swedish krona sold, 0.8 million Australian dollars sold, and 75,0 million Czech krona purchased. The Group also makes use of asymmetric options tunnels. The asymmetric part by currency is as follows: 18.5 million United States dollars sold.

The Group hedges its exchange rate risk using over-the-counter derivative instruments contracted with external counterparties. The derivative instruments used by the treasury department in its hedging strategies are as follows: firm derivatives such as forward currency purchases ● and sales; plain vanilla options such as puts and calls; ● second generation options (knock-in or knock-out ● barrier options).

INSTRUMENT DETAILS

The instruments in the portfolio have a maturity of less than twelve months at 31 January 2021. These instruments are listed below by type and by currency for the period to which they relate.

2020 FINANCIAL YEAR – DERIVATIVES INTRUMENTS HEDGING POSITIONS AND COMMITMENTS ❚ TO SUBSIDIARIES HEDGING

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

Notional value – Cash flow hedging

USD

-

36.2

-

-

-

-

GBP

-

-

-

-

-

-

6

CAD

6.4

1.6

-

-

-

-

NOK

-

4.0

-

-

-

-

JPY

138.5

-

-

-

-

-

SEK

-

4.8

-

-

-

-

CHF

-

6.1

-

-

-

-

DKK

-

3.6

-

-

-

-

CZK

52.4

-

-

-

-

-

SGD

-

2.6

-

-

-

-

AUD

-

1.5

-

-

-

-

PLN

-

0.3

-

-

-

-

2021 BUDGET – DERIVATIVES INSTRUMENTS HEDGING OF ANTICIPATED ASSETS AND LIABILITIES POSITIONS ❚

Forward purchases

Forward sales

Put options bought

Put options sold

Call options bought

Call options sold

Notional value – Total

USD

-

7.5

30.5

-

-

39.0

GBP

-

3.8

1.8

-

-

3.3

CAD

-

1.0

1.5

-

-

3.0

NOK

-

8.0

2.0

-

-

4.0

JPY

-

85.0

30.0

-

-

60.0

SEK

-

16.1

5.0

-

-

10.0

CHF

4.8

-

-

-

-

-

DKK

-

7.0

-

-

-

-

CZK

180.9

-

-

150.0

75.0

-

AUD

-

2.4

0.8

-

-

1.4

233

UNIVERSAL REGISTRATION DOCUMENT 2020