QUADIENT // 2021 Universal Registration Document

6

FINANCIAL STATEMENTS Consolidated financial statements

Current operating income and EBITDA

5-3:

5-3-1: ACCOUNTING PRINCIPLES

Gross margin is defined as the difference between sales and cost of sales. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is determined by adding to the current operating profit the amount of depreciation and amortization of fixed assets. Cost of sales Cost of sales consists of production-related direct costs (purchases, labor) plus depreciation of equipment rented to customers and sales-related transport and logistics costs. Research and development expenses Research and development expenses comprise the cost of carrying out research work, including depreciation of equipment used in this activity.

These costs are expensed in the year in which they are incurred, and are clearly identified in the income statement. Development expenses that meet the capitalization criteria are presented in the balance sheet under intangible fixed assets (see note 4–2-2 on intangible fixed assets) and are then amortized. Sales and marketing expenses Sales and marketing expenses include the costs of sales departments, including advertising and promotion costs, and the cost of selling supplies.

5-3-2: GROSS MARGIN AND EBITDA CALCULATION

31 January 2022

31 January 2021

In

In

Gross value

Gross value

100.0 (27.3)

100.0 (27.8)

Sales

1,024.3

1,029.4

Cost of sales

(279.9)

(285.7)

72.7

72.2

Gross margin

744.4

743.7

(59.5)

(59.4)

Current operating expenses

(609.4)

(611.6)

13.2 10.7 23.9

12.8

Current operating profit*

135.0

132.1

11.1

Amortization of fixed assets

109.6

113.9

EBITDA 23.9 The current operating profit of the year 2020 includes the reversal of Parcel Pending unpaid earn-out for an amount of * 6.5 million euros. 244.6 246.0

Breakdown of expenses by category 5-4:

31 January 2022

31 January 2021

Cost of inventories recognized as expenses

252.6

257.9

Wages, bonuses, commissions and payroll charges

426.9

429.8

Rents and associated costs

3.9

5.0

Fees

40.6

45.7

Transport and travel

19.6

21.6

Fixed assets – depreciation and amortization

109.6

113.9

Other

36.1

23.4

Total expenses by category

889.3

897.3

Cost of sales

279.9

285.7

Operating expenses

609.4

611.6

TOTAL

889.3

897.3

182

UNIVERSAL REGISTRATION DOCUMENT 2021