QUADIENT - 2020 Universal Registration Document

CORPORATE OVERVIEW Organizational structure

1.3.3

PRODUCTION CENTRES

1

Quadient has three production and assembly centres: Le Lude (France) for high-end mailing systems and ● customization of Mail Solutions and Parcel Locker Solutions for European market; Drachten (the Netherlands) for mid-range folders/ ● inserters and the automated packaging systems (CVP); and Loughton (United Kingdom) for high-end folders/ ● inserters.

A team based in Hong Kong manages Quadient’s network of subcontractors in Asia. Quadient subcontractors assemble entry-level to mid-range mailing systems and entry-level folders/inserters for Mail-Related Solutions. This team also provides solutions for parcel lockers. The Byhalia (United States) centre is responsible for the logistics and customization of mail-related and parcel locker products for North America. All these centres employ approximately 600 people.

1.3.4

DISTRIBUTION

Quadient’s international sales network is a key asset of its business. The Company has wholly-owned subsidiaries and branches in 27 countries: Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, the Netherlands, Norway, Poland, Singapore, Spain, Sweden, Switzerland, Ukraine, the United Kingdom and the United States.

Quadient also has a network of local distributors in about 60 countries in addition to the countries covered by its subsidiaries. Generally speaking, these distributors are independent, essentially dedicated to Quadient products and have signed long-term distribution contracts with Quadient.

1.3.5

INVESTMENTS

Excluding acquisitions, Quadient invested 89.6 million euros in 2020 (of which 17.8 million euros related to the implementation of IFRS 16) compared with 109.3 million euros in 2019 (of which 13.5 million euros related to the

implementation of IFRS 16) and 87.9 million euros in 2018. Details of investments are shown in the table below:

31 January 2021

31 January 2020 31 January 2019

(In millions of euros)

Acquisition of software

0.6

1.8

2.6

Capitalization of development expenses

30.3

31.1

29.2

Acquisition of machinery and equipment

1.0

1.7

4.3

Rented equipment

29.2

49.7

37.0

IT implementation costs

0.0

0.0

0.0

Other investments

10.7

11.5

14.8

Assets right of use IFRS 16

17.8

13.5

-

TOTAL

89.6

109.3

87.9

The breakdown of investments by geographical area is the following:

31 January 2021

31 January 2020

(In millions of euros)

Main European countries (a)

20.5

20.9

North America

26.8

30.5

International

5.0

20.3

Additional operations

7.2

4.4

Other

30.2

33.1

TOTAL

89.6

109.3

The main European countries are: Germany, Austria, Belgium, the Netherlands, Luxembourg, France, Ireland, Italy, the (a) United Kingdom and Switzerland.

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UNIVERSAL REGISTRATION DOCUMENT 2020