QUADIENT - 2020 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Risk factors

Risks

Risk management system

Risk on cash position

Risk on cash position

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Group cash position could be impacted by the recession: decrease of cash inflows in relation with a drop of revenue and with customers’ cash issues.

Since 31 January 2021, Quadient has paid back on the 23 March its bond 2.50 for the total outstanding amount of 163.2 million euros. After the acquisition of Beanworks fully paid in cash for an amount slightly above 70 million euros, Quadient is still getting a strong liquidity position with both a fair amount of available cash and an unused revolving credit line of 400million euros. This credit line is available in euros and US dollars under the condition to meet covenants. This credit line is spread over a syndicate of 11 financial institutions. Risk of counterpart is limited as they are rated A a minima . Cash management department members use SaaS (a) applications and would perform their task without any difficulties in case of strict confinement. Cash management is performed through automatic cash pooling without any risk of liquidity for subsidiaries. Cash reportings are in place in order to anticipate potential impact on cash.

(a)

Software as a Service.

4

4.3

4.1

2020 score: COVID-19 and global recession

3.9

Risk on service con ti nuity for customer

3.7

Risk on revenue

3.5

Average likelihood 3.3

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3.1

Risk on cash position

2.9

2

2.5

3.0

3.5

4.0

4.5

Average Impact

89

UNIVERSAL REGISTRATION DOCUMENT 2020