QUADIENT // 2021 Universal Registration Document

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FINANCIAL STATEMENTS Consolidated financial statements

11-4-2: MARKET RISKS

Based on the 2022 budget, the breakdown of sales and costs in pounds sterling is as follows: sales 8.4 , cost of sales 5.9 , operating costs 12.9 . A 5 decrease in the euro/pound sterling exchange rate from the budget rate of 0.88 would have the following impacts on the Group’s income statement: sales (6.2) million euros and non-significant impact on current operating income and net income. The other currencies are not a major concern for the Group. None of them, taken individually, represents more than 5 of total sales. Beyond the natural hedge, no guarantee can however be given regarding the Group’s ability to hedge exchange rate risk effectively. Risk management policy Quadient has a policy of centralizing its foreign currency risk, enabling it to monitor the Group’s overall exchange rate risk exposure and to gain full control over the market instruments used in hedging operations. For each consolidated position managed, a hedging strategy is set up at the same time as the reference exchange rate to be defended is set. The hedging strategy involves a combination of firm or optional hedging instruments, along with open positions protected by stop losses. These stop losses are predetermined exchange rates that trigger hedging transactions when they are hit. As a result, through the use of mathematical models, the hedging strategy enables a reference exchange rate to be defended from the start for the entire position in the event of adverse exchange rate fluctuations. Year-end position The tables below represent Quadient’s positions as of 31 January 2022 regarding exchange rate hedging for commercial activities.

The Group is mainly exposed to currency exchange rate risks through its international activity and to interest rate risks through its debt. The Group treasurer, who reports to the Group chief financial officer, monitors exchange rate and interest rate risks for all Quadient Group entities. A report showing the Group’s underlying position and hedges is sent each month to the chief financial officer to provide complete visibility on the financial risks relating to hedging activities, and to measure the financial impact of unhedged positions. Quadient uses the services of an independent consultancy based in Paris. This consultancy helps Quadient in its exchange rate risk hedging policy, and values its portfolio of hedging instruments under IFRS. This ensures the consistency of methodologies used and provides a financial opinion independent of any financial institution. This company has the technical and human resources to monitor interest rate and exchange rate trends every day and alert the Group treasurer in light of the strategy in place. However, no guarantee can be given regarding the Group’s ability to hedge effectively against market risks. Exchange rate risk Natural hedge Quadient enjoys a natural hedge on its current operating margin and its net income. Based on the 2022 budget, the breakdown of sales and costs in United States dollars is as follows: sales 50.4 , cost of sales 38.9 , operating costs 41.4 , and interest expenses 33.8 . A 5 decrease in the euro/United States dollar exchange rate from the budget rate of 1.19 would have the following impacts on the Group’s income statement: sales (25.1) million euros, current operating income (7.5) million euros and net income (4.6) million euros.

2021 FINANCIAL YEAR – BALANCE SHEET HEDGING: HEDGING POSITIONS COVERING FINANCIAL ASSETS OR ❚ LIABILITIES ON QUADIENT’S BALANCE SHEET AT 31 JANUARY 2022 AND EXPECTED TO BE REALIZED NO LATER THAN APRIL 2022

Notional value

USD GBP CAD NOK

JPY SEK CHF DKK CZK SGD AUD PLN

Financial assets

48.3 8.5 8.0 4.5 231.0 14.5 10.3 4.6 20.3 0.5 2.5 0.1

Financial liabilities

33.2 4.2 5.8 0.5 201.7 6.8 11.4 0.5 80.9 0.5 0.3 -

Net exposure before hedging

15.1

4.3 2.2 4.0 29.3 7.7 (1.1)

4.1

(60.6)

-

2.2 0.1

Hedging

(13.6) (4.3)

(2.1)

(1.7) (29.3) (6.1)

(1.1) (0.6)

50.0 (2.1) (1.6) (0.4)

NET EXPOSURE AFTER HEDGING

1.5

-

0.1

2.3

-

1.6 (2.2)

3.5 (10.6)

(2.1)

0.6 (0.3)

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UNIVERSAL REGISTRATION DOCUMENT 2021