QUADIENT - 2020 Universal Registration Document

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FINANCIAL STATEMENTS Quadient S.A. statements of financial position

INSTRUMENT VALUATIONS

HEDGING OF FOREIGN-CURRENCY LOANS AND CURRENT ACCOUNT ADVANCES

Hedging instruments relating to the 2020 financial year, i.e. hedging assets and liabilities on the balance sheet as at 31 January 2021, have been fully valued and recognized at their market value at 31 January 2021. The net market value of these instruments as at 31 january 2021 is 0.2 million euros. Financial instruments relating to the 2021 budget have not been valued in Quadient S.A.’s financial statements.The net market value of these instruments as at 31 january 2021 is 0.1 million euros.

In the absence of an individual backing between the exposures and the currency derivatives, Quadient S.A. has chosen, for accounting simplification, not to qualify as hedging the derivatives in order to reduce the exposure to the currency risk of the long term USD position. This exposure corresponds to the difference between the balance of the long-term USD intercos loans and the USD borrowings of Quadient S.A. This unqualified position ("Position Ouverte Isolée") is entirely made up of foreign exchange swaps. In application of the ANC 2015-05 standard, the unrealized foreign exchange result of this unqualified position is recorded in the balance sheet as a counterpart to the unrealized gains or losses on assets or liabilities and is the subject of a provision for exchange risk in the context of a latent loss. As of 31 january 2021, the fair value of this unqualified position was 8.9 million euros.

EXCHANGE RATE DEAL COUNTERPARTY RISK

Operations are carried out with first ranked international banks that take part in the revolving credit facility.

Notional amount of financial instruments (b)

Loan/borrowing/ short-term advance

Subsidiary

Currency

Amount

Quadient Inc. (a)

Short term advance

USD

(14.4)

Quadient Leasing USA Inc. (a)

Short term loan

USD

0.9

Quadient Leasing USA Inc. (a)

Loan

USD

270.0

Quadient Holdings USA Inc. (a)

Short term loan

USD

32.8

Quadient Finance USA Inc. (a)

Short term advance

USD

(18.3)

Quadient Finance USA Inc. (a)

Loan

USD

40.0

Quadient UK Ltd (a)

Short term loan

USD

0.8

Quadient International Supply Ltd (a)

Short term loan

USD

0.4

Quadient Industrie France (a)

Short term loan

USD

0.4

Quadient Shipping (a)

Short term advance

USD

(0.3)

Quadient CXM Switzerland AG (a)

Short term loan

USD

0.2

Quadient CXM AG (a)

Short term loan

USD

5.6

Quadient Supply Hong Kong (a)

Short term advance

USD

(2.0)

Quadient CXM Canada Inc. (a)

Short term advance

USD

(0.9)

Quadient Singapore Pte Ltd (a)

Short term loan

USD

1.2

Neotouch Cloud solutions Dac (a)

Short term advance

USD

(1.0)

Quadient Global Services (a)

Short term loan

USD

1.5

Quadient CXM USA Inc. (a)

Short term advance

USD

(18.0)

Parcel Pending Inc. (a)

Short term advance

USD

(2.8)

YayPay Inc. (a)

Short term loan

USD

1.0

297.1 (c)

Quadient International Supply Ltd

Short term advance

GBP

(0.7)

Quadient UK Ltd

Short term advance

GBP

(3.8)

Quadient Finance UK Ltd

Short term loan

GBP

2.6

Neopost SDS Ltd

Short term advance

GBP

(0.5)

Quadient CXM Ltd

Short term advance

GBP

(0.5)

Quadient Technologies UK Ltd

Short term advance

GBP

(9.2)

Quadient Finance Ireland Ltd

Loan

GBP

46.0

Quadient Finance Ireland Ltd

Short term advance

GBP

(5.0)

Quadient Data UK Ltd

Short term loan

GBP

2.3

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UNIVERSAL REGISTRATION DOCUMENT 2020