QUADIENT - 2020 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Insurance

EXCHANGE RATE RISK

Impact on net income before tax on 2021 budget

Impact on equity as at 31 January 2021

Increase of 5

Decrease of 5

Increase of 5

Decrease of 5

(In million euros)

USD

5.7

(5.7)

17.2

(17.2)

GBP

0.3

(0.3)

8.9

(8.9)

Insurance 4.2

All Group companies are covered by a worldwide insurance program which covers operating damage and loss, liability, and transport risks. All Group subsidiaries adhere to the guarantees set up and negotiated at Group level, subject to local regulatory restrictions or specific geographic exclusions. Quadient’s risks include a high level of geographic dispersion, which substantially dilutes the consequences of any claim. The cover negotiated by the Group is high and is above all aimed at insuring the largest risks which might have a material impact on the Group’s financial position. The operating damage and loss insurance cover was renewed on 1 February 2021 for one year under the same conditions. The insurance covering transport risks was renewed on 1 February 2021 under the same conditions.

The insurance policy covering “liability” was renegotiated and renewed for one year ending on 31 January 2022. Given the development of Quadient in software activities, it was decided in 2014 to cover the risk of possible claims from third parties against Quadient for infringement of copyright and intellectual property. The policy was renewed on 1 February 2021 for one year. Finally, it has been decided to cover cyber risks in June 2019. Total cost of insurance amounted to 0.7 million euros in 2020. The Group’s insurance policies are regularly updated to reflect changes in the Group’s scope of consolidation and to cover industrial risks within the global insurance market framework. The Group’s guarantees are placed with leading insurers with worldwide reputations.

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UNIVERSAL REGISTRATION DOCUMENT 2020

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