QUADIENT // 2021 Universal Registration Document

CORPORATE OVERVIEW Strategy

On 27 January 2022, Quadient held an education session dedicated to its Intelligent Communication Automation (ICA) cloud-based software solutions, hosted by Geoffrey Godet, Chief Executive Officer and Chris Hartigan, Chief Solution Officer for ICA. At the end of the education session, Mr. Godet detailed Quadient’s ambitions for ICA by the end of the 2021-2023 three-year period as it relates to each of the ICA KPIs that are monitored within the framework of phase two of Back to Growth, namely: over 90 share of SaaS and subscription customers in ● ICA total customer base; c. 250 million euros (1) Annual Recurring Revenue (2) ; and ● c. 75 share of subscription-related revenue (3) in ICA ● total revenue. As part of the new trajectory defined for the Phase Two of “Back to Growth”, Quadient has set specific targets for each solution aimed at reaching an ambitious profile by the end the 2021-2023 three-year period, ensuring that each solution effectively contributes to sustainable value creation at Company level: Intelligent Communication Automation: ● over 20-25 subscription-related revenue CAGR over - the three-year plan, around 30 solution profit margin on a full-year basis - by the end of the three-year plan; Ambitions by solution

Mail-Related Solutions:

1

better than -5 organic CAGR revenue decline over - the three-year plan, high solution profit margin in the range of 43-45 on - a full-year basis by the end of the three-year plan; Parcel Locker Solutions: ● more than 25,000 lockers installed by the end of the - three-year plan, around 35-40 profit margin of the installed base on - a full-year basis by the end of the three-year plan. Quadient is now into the phase two of its "Back to Growth" strategy than will span over the 2021-2023 period. During this time, Quadient will continue to build on its strengths to deliver its strategic plan with a clear focus on innovation and technology. Quadient will also continue to leverage its leadership positions and its strong software and hardware installed base to generate additional growth of its highly contributive subscription-related revenue and further deploy cross-selling opportunities and value-creation synergies across its solutions. On this basis, Quadient aims at achieving a minimum 3 organic revenue CAGR over 2021-2023, with a minimum 2 organic revenue growth in 2022. Quadient also aims at delivering a minimum mid-single-digit organic current EBIT CAGR over 2021-2023, with low-to-mid single digit organic current EBIT growth in 2022. Financial guidance

(1)

At 2020 constant exchange rates.

(2) Annual Recurring Revenue (ARR) is an estimation of future recurring revenue per annum. (3) Subscription-related revenue for ICA include recognized revenue related to subscriptions, SaaS licenses, consumption and maintenance.

23

UNIVERSAL REGISTRATION DOCUMENT 2021

Made with FlippingBook - professional solution for displaying marketing and sales documents online