QUADIENT // 2021 Universal Registration Document

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FINANCIAL STATEMENTS Consolidated financial statements

The discount rates used are based on the yields on bonds issued by high quality companies (AA) or, where the market is not liquid, on government bonds with the same maturity as the calculations and the same currency (reference: Iboxx). These references are compliant with the requirements of IAS 19 and are the same as those used in previous years. The effective return on the Group assets plan in 2021 is a gain of 1.2 compared with 1.5 in 2020. Assumptions such as medical expenses of retired employees are not included in this plan. In terms of salary, only the last salaries at the time the plan was frozen are

taken into account, without revaluation (only the annuity is revaluated). Actuarial differences are systematically recognized in shareholders’ equity and reported under the consolidated statement of comprehensive income. The cumulative actuarial difference shows a loss of 22.5 million euros as of 31 January 2022 compared with a loss of 0.4 million euros as of 31 January 2021. The expense related to the French subsidiaries’ defined contribution pension plans amounts to 0.6 million euros in 2021, stable compared with 2020.

Share-based payments 9-4:

9-4-1: ACCOUNTING PRINCIPLES

Group employees, including top management, may receive remuneration based on shares. They will ultimately receive equity instruments in return for services rendered. The fair value is determined by an outside consultant using an appropriate valuation method. The cost of equity-settled transactions with employees is measured at the fair value of the instruments awarded at the vesting date. The cost is recognized over the period in which the performance terms are met and/or the services are rendered, with the balancing entry being an equivalent increase in equity. The Free shares are granted for the purposes of: attracting and retaining high potential employees; ● acknowledging exceptional performance; ● fostering strong motivation and commitment to the ● Company’s performance by granting specific free share plans based on the Group’s future results. The fair value of the shares thus granted is calculated based on the share price on the allocation date from which anticipated dividend are deducted. The overall expense was calculated by estimating a number of shares whose ownership will be transferred corresponding to a percentage of the maximum attributable amount. This assumption is considered the most likely on the date of allocation. This expense is spread out over the vesting period. The number of shares is adjusted at each closing date and the expense is revaluated consequently to ensure 9-4-2: FREE SHARE PLANS

cumulative expense recognized for such transactions at the end of each period until the rights acquisition date reflects the run-off of this acquisition period and the Group’s best estimate at that date of the number of instruments to be acquired. The awarding of these instruments is subject to the beneficiary being on the Company’s payroll at the delivery date of the options or free shares and for some of the plans, to the achievement of performance targets. It is not possible to settle these options or these free shares in cash. that the period expense corresponds to the number of shares effectively attributed. The shares granted with performance conditions are dependent on the performance indicators below: growth in consolidated sales; ● current operating margin (current operating income ● divided by consolidated sales); return on capital employed; ● shareholder return (variation in the share price over the ● period plus dividends compared with the average performance of companies belonging to the same index as Quadient). The vesting period is three years in one block.

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UNIVERSAL REGISTRATION DOCUMENT 2021