QUADIENT // 2021 Universal Registration Document

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FINANCIAL STATEMENTS Consolidated financial statements

INTANGIBLE ASSETS, TANGIBLE ASSETS AND NON-CURRENT NOTE 4 FINANCIAL ASSETS

Goodwill

4-1:

4-1-1: ACCOUNTING PRINCIPLES

In accordance with IFRS 3, business combinations are recognized using the acquisition method. At the date on which control of a company is taken, the assets, liabilities and contingent liabilities acquired are measured at fair value. Any variance between the cost of acquiring the shares and the acquirer’s share of this revalued net asset value constitutes goodwill. Any negative goodwill is recognized immediately in the income statement after confirmation of the nature of this negative goodwill and its constituent components. Goodwill is not amortized but is subject to an annual impairment test as described in note 4–5. Earn-outs Earn-outs are generally based on sales or revenue estimates targets in the years following the acquisition. The amounts booked correspond to the best estimate of

the future performance of these acquisitions. If these criteria are not met, the partial or total reversal of the debt related to these unpaid earn-outs will be recognized in the current operating income. Commitment to purchase non-controlling interests Sell options granted to minority shareholders are recognized as debt measured at the estimated exercise price of the option. The relevant portion of subsidiaries’ net assets is transferred from “Non-controlling interests” to “Other financial debts”. The non-controlling interests’ share of net income is unchanged and still reflects the proportion owned by minorities. The recognition in goodwill of the difference between the strike price of the option and the value of non-controlling interests is booked under shareholders’ equity.

4-1-2: CHANGES IN GOODWILL

Gross value

Impairment

Net value

Goodwill at 31 January 2020

1,155.3

(110.0)

1,045.3

YayPay acquisition

12.9

-

12.9

Quadient Oceania divestment

(24.8)

24.8

-

Translation difference

(30.3)

(1.4)

(31.7)

Other movements

(0.5)

-

(0.5)

Goodwill at 31 January 2021

1,112.6

(86.6)

1,026.0

Beanworks acquisition

62.9

-

62.9

Translation difference

30.7

0.2

30.9

GOODWILL AT 31 JANUARY 2022

1,206.2

(86.4)

1,119.8

In 2021, the goodwill variation is explained by the recognition of a 62.9 million euros goodwill related to Beanworks acquisition in Canada in March 2021. The purchase price allocation performed has lead to the recognition of 14.5 million euros in intangible assets (Note 4-2-2). In 2020, the goodwill variation was mainly explained by (i) the goodwill recognition for the acquisition of YayPay in the United States at the end of July 2020 for an amount of

12.9 million euros and (ii) the release of Quadient Oceania goodwill for (24.8) million euros, which was fully depreciated. As of 31 January 2022, the cumulative impairment amounts to (86.4) million euros. All the acquisitions were fully paid for by the Group through its cash and/or financing lines.

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UNIVERSAL REGISTRATION DOCUMENT 2021