QUADIENT // 2021 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

Inventories and work in progress

5-5:

5-5-1: ACCOUNTING PRINCIPLES

Inventories and work in progress are measured at the lowest of the cost or replacement value (for purchased goods) or the cost of full production (for produced goods) and must not exceed the net realizable value. Cost price is calculated using the weighted average cost method.

Depreciation is calculated on the basis of inventory turnover and the obsolescence of equipment and goods. The intra-Group margin generated by industrial subsidiaries on equipment sold to the distribution subsidiaries which store this equipment is eliminated.

5-5-2: INVENTORIES BY CATEGORIES

31 January 2022

31 January 2021

Gross value

Depreciation

Net Gross value

Depreciation

Net

Work in progress

1.7

(0.1)

1.6

8.5

(0.7)

7.8

Raw materials

11.3

(1.7)

9.6

13.5

(2.1)

11.4

Finished goods

67.8

(9.0)

58.8

59.6

(10.3)

49.3

Spare parts

4.4

(1.9)

2.5

4.4

(1.7)

2.7

TOTAL

85.2

(12.7)

72.5

86.0

(14.8)

71.2

5-5-3: CHANGES IN INVENTORIES

6

31 January 2022

Gross value

Depreciation

Opening

86.0

(14.8)

Net inventory entries

15.2

-

Charges

-

(1.4)

Reversals

-

2.8

Change in scope*

(16.1)

1.0

Other

(1.0)

(0.1)

Translation difference

1.1

(0.2)

TOTAL

85.2

(12.7)

* Divestment of the automated packaging solutions business.

Other operating liabilities 5-6:

The other operating liabilities for an amount of customer credit balances, debts to employees and 204.5 million euros as of 31 January 2022 compared with deposits made by customers in relation to postage 199.7 million euros as of 31 January 2021 mainly comprise prepayment.

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UNIVERSAL REGISTRATION DOCUMENT 2021