QUADIENT // 2021 Universal Registration Document

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FINANCIAL STATEMENTS Quadient S.A. statements of financial position

Except for the bond issue – Quadient S.A. 2.25 and ODIRNANE which are not subject to any covenant, the various debts (Schuldschein and revolving credit facilities) are subject to financial covenants. Failure to comply with these covenants may lead to early repayment of the debt. Quadient complies with all covenants as of 31 January 2022.

predetermined exchange rates that trigger 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. Quadient S.A. uses the services of an independent consultancy based in Paris. This company assists Quadient in the Group’s exchange rate risk hedging policy and values its portfolios, thus ensuring continuity of methodology and providing an opinion independent of any financial institution. Quadient S.A., as the centralizing Company, grants foreign exchange contracts at guaranteed exchange rates to subsidiaries exposed to exchange rate risks, and reverses the resulting positions in the market.

Exchange rate risk hedging 13-2:

RISK MANAGEMENT POLICY

The Group has a policy of centralizing its exchange risk, enabling the Group to monitor its overall exchange rate risk exposure and to gain full control over the market instruments used in hedging operations. For each consolidated position that is managed, the Group implements a hedging strategy at the same time as it sets the reference exchange rate to be defended. The hedging strategy involves a combination of definite or optional forward currency purchases or sales, along with open positions protected by stop losses. These stop losses are

YEAR-END POSITION

The tables below show Quadient S.A.’s year-end hedging positions and commitments to its subsidiaries.

2021 FINANCIAL YEAR – ASSETS AND LIABILITIES HEDGING: HEDGING POSITIONS COVERING FINANCIAL ❚ ASSETS OR LIABILITIES ON QUADIENT S.A.’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

6.7

0.8

1.3

1.0 24.8 0.2

1.1

0.5

-

0.1

2.0 0.1

Foreign exchange contract assets

41.6 7.7

6.7

3.5 206.2 14.3 9.2

4.1

20.3 0.4 0.5 0.0

Total assets exposure

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

6.4

1.1

0.1

0.0

0.3 0.0 0.1

0.1

1.7

0.1

0.0

-

Foreign exchange contract liabilities

26.8

3.1

5.7

0.5 201.4 6.8 11.3 0.4 79.2

0.4 0.3 0.0

Total liabilities exposure

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)

2022 BUDGET: HEDGING POSITIONS COVERING ANTICIPATED FINANCIAL ASSETS AND LIABILITIES IN ❚ FINANCIAL YEAR 2022 EXPECTED TO BE REALIZED NO LATER THAN APRIL 2023

Notional value

USD GBP

CAD NOK

JPY

SEK

CHF DKK

CZK SGD AUD PLN

Projected financial assets

24.0 2.0 3.3

2.1

87.9 1.7

4.4 0.9

-

0.1

0.3 0.1

Foreign exchange contract assets

189.4 31.8 13.1

40.0 2,286.8 69.3 39.6 29.4 104.6 6.2 4.7

1.3

Total assets exposure

213.4 33.8 16.4 42.1

2,374.7 71.0 44.0 30.3

104.6 6.3 5.0 1.4

Projected financial liabilities

6.5 0.1

0.8

0.0

0.9 0.0 0.4 0.2

7.6 0.1

0.0

-

Foreign exchange contract liabilities

113.1

26.2 5.6

1.6 2,097.7 14.2 56.7 5.3

821.3 7.2

1.0 2.6

Total liabilities exposure

119.6 26.3 6.4

1.6 2,098.6 14.2

57.1

5.5 828.9 7.3 1.0 2.6

Net exposure before hedging

93.8 7.5 10.0 40.5

276.1

56.8 (13.1) 24.8 (724.3)

(1.0)

4.0 (1.2)

Hedging

(43.0)

(1.7) (4.6)

(17.5)

(176.6) (9.5)

- (7.5)

280.0

- (3.4)

-

NET EXPOSURE AFTER HEDGING

50.8 5.8 5.4 23.0

99.5 47.3 (13.1)

17.3 (444.3)

(1.0)

0.6 (1.2)

244

UNIVERSAL REGISTRATION DOCUMENT 2021