QUADIENT // 2021 Universal Registration Document

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FINANCIAL STATEMENTS Consolidated financial statements

Software maintenance Software maintenance is included in most software license contracts and is generally priced as a percentage of the initial software license fees. Maintenance provides customers with rights to non-critical software upgrades, maintenance enhancements and access to the help desk during the term of the contract. Revenue is recognized on a straight-line basis over the term of the contract. Professional services Software implementation and support services represent revenue from consulting and implementation

services sold separately under professional service contracts. Professional service contracts are accounted for on a percentage-of-completion basis based on the number of hours incurred over the period as a proportion of the total number of hours provided for in the contract. These estimates are continually re-evaluated and revised, when necessary, at each reporting date. Any adjustments to revenue and margins due to changes in estimates are accounted for in the period in which the change in estimates occurs. When estimates indicate that a loss will be incurred on a contract upon completion, a provision for the expected loss is recorded in the period in which the loss becomes

evident.

5-1-2: SALES BREAKDOWN

By business – Group sales

●

Group sales are composed of four revenue categories: not part of the three major solutions and include in (1) Mail Related Solutions, (2) Intelligent Communication particular graphics activities, other shipping software Automation, (3) Parcel Locker Solutions and (4) Other solutions and the automated packing systems (CVP) activities. The other activities comprise revenues that are divested at the end of July 2021.

31 January 2022

31 January 2021

Mail-Related solutions

702.4

686.7

Intelligent Communication Automation*

201.3

195.5

Parcel Locker Solutions

86.5

85.8

Other activities

34.1

61.4

TOTAL

1,024.3

1,029.4

The Intelligent Communication Automation solution groups the former solutions Business Process Automation and * Customer Experience management.

By business – Major Operations ●

Major Operations have been defined around the three major solutions defined above, in the two main geographic areas of North America and Europe, including twelve countries. To these are added, grouped under the name International, the Parcel Locker Solution revenue earned in Japan and Intelligent Communication Automation revenue earned outside the twelve countries mentioned here above.

The revenues of Additional Operations are realized on activities that are not included in the three major solutions, in all geographic areas, as well as on the three major solutions outside the main geographic areas mentioned before.

31 January 2022

31 January 2021

Mail-Related solutions

658.8

641.4

Intelligent Communication Automation*

200.7

194.5

Parcel Locker Solutions

82.9

83.4

Major Operations

942.4

919.3

Additional Operations

81.9

110.1

TOTAL

1,024.3

1,029.4

The Intelligent Communication Automation solution groups the former solutions Business Process Automation and * Customer Experience management.

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UNIVERSAL REGISTRATION DOCUMENT 2021