QUADIENT - 2020 Universal Registration Document

QUADIENT IN BRIEF

THREE QUESTIONS TOTHE CHIEFEXECUTIVEOFFICER

GEOFFREY GODET CHIEF EXECUTIVE OFFICER

"OUR OBJECTIVES ARE NOW EXCLUSIVELY BASED ON ORGANIC GROWTH, WHICH MARKS A SIGNIFICANT SHIFT IN OUR DEVELOPMENT STRATEGY."

and recognized software offer enables us to support our customers in the digitization, automation and personalisation of their communications. A portfolio that is now complemented by the acquisitions of YayPay and Beanworks, two FinTechs that enable us to offer solutions for managing invoicing flows. In addition, our parcel locker business benefits from booming e-commerce and provides a compelling last mile delivery solution. These two growth engines also generated strong commercial, R&D, back office and supply chain synergies with our mail-related business, of around € 100 million in 2020. What are your goals for the second phase of Back to Growth? Our objectives are now exclusively based on an organic growth tra jectory, which marks a significant shift in our development strategy. We have now reached a point where the increased weight of our growth engines will enable us to more than offset the decline in our mail- related business while improving our profitability. The health crisis has accelerated the need for SaaS and Cloud software solutions for intelligent communication automation. And we aim to double the number of our parcel lockers installed worldwide within three years. Over the 2021-2023 period, we target average organic revenue growth of at least 3% per year, and at least mid-single digit organic growth in current EBIT. To achieve this, we are going to step up our R&D investments and accelerate the launch of new products. Also, with a highly cash-generative business, we should be able to continue deleveraging the Company while maintaining our dividend policy.

How did Quadient make it through the crisis this year?

Our revenue proved relatively resilient. At a little over € 1 billion, it recorded a 7.3% organic decline in 2020. The high proportion of recurring revenues enabled us to mitigate the decrease in hardware and license sales. We also saw a strong rebound as soon as the economy started to recover: after a decline of around 13% in the first half of the year, our sales fell by only 2% in the second half, with even better profitability compared to the second half of 2019. Strict cost optimization measures enabled us to save € 46 million in operating expenses and record a high EBITDA margin of almost 24% in 2020. We posted current EBIT of more than € 150 million and net income of € 40 million. We generated free cash flow of € 167 million, allowing us to further reduce our debt and end the year with a strong liquidity position. In parallel, we maintained our investment efforts, particularly in R&D, and preserved our workforce, especially sales teams, in order to be ready for the recovery in 2021. What is the outcome of the first phase of your Back to Growth plan? We have profoundly changed and streamlined our organization. From a holding company comprising around fifteen independent units, we have become a unified Company, now focused on three strategic activities. Alongside our traditional mail-related business –which is in structural decline but where we are still gainingmarket share and generating significant cash flows–, we have expanded into two fast-growing activities which represented 27% of our sales in 2020 compared to 18% only two years before. Our relevant

3

UNIVERSAL REGISTRATION DOCUMENT 2020