QUADIENT // 2021 Universal Registration Document

FINANCIAL STATEMENTS Consolidated financial statements

Contingent liabilities 10-2:

10-2-1: ACCOUNTING PRINCIPLES

Unlike the definition of provision given in note 11-1-1, a contingent liability is: either a possible obligation that arises from past ● events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or a present obligation that arises from past events ● but not recognized because it is unlikely that an

outflow of resources embodying economic benefits will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized and are described in the notes when they are material, except in the case of business combinations where they are identifiable items that are backed by present obligations and can be estimated reliably.

10-2-2: CONTINGENT LIABILITIES IDENTIFIED

In their everyday activities, Quadient entities in Europe and abroad are regularly subject to tax investigations. Tax adjustments or uncertain tax positions not yet subject to tax adjustment, are covered by appropriate provisions.

The amount of these provisions is regularly reviewed. The Group has not identified any significant contingent liability as of 31 January 2022.

FINANCIAL INSTRUMENTS, FINANCIAL DEBTS AND RISK MANAGEMENT NOTE 11

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Financial assets are divided in three categories: financial assets at amortized cost, financial assets at fair value through equity and financial assets at fair value through profit and loss. This classification is based on the management objectives applied to the asset by the Group and on the contractual cash flow characteristics. The Group classifies its assets according to the following categories: financial assets at amortized costs: the Group ● classifies here the lease receivables, the trade receivables and other receivables, the loans and deposits, the receivables attached to non-consolidated investments and cash and cash equivalents. These assets are booked using the effective interest rate method which means initially at their fair value (acquisition cost including transaction costs). Lease receivables are analyzed and valued using the expected credit losses method;

financial assets at fair value: the Group classifies in ● this category the equity instruments owned by the Group, which means investments in companies over which the Group does not have control or any significant influence. Those are booked at fair value through profit and loss or through equity, depending on the option chosen by the Group. None of the investments in non-consolidated companies are held for trading purposes. Quadient’s financing strategy is coordinated by the Group finance department. All Group exposure to interest rate and exchange rate risks is centralized within the Group cash management department. Financial instruments mentioned in note 11, especially those presented in table 11-1, are level 2 financial instruments, whose fair value is based on observable data.

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UNIVERSAL REGISTRATION DOCUMENT 2021