QUADIENT // 2021 Universal Registration Document

CORPORATE GOVERNANCE REPORT Remuneration report

3° Annual variable remuneration The Chief Executive Officer’s annual variable remuneration depends on the progress made by the Group and his individual performance. By way of illustration, for 2022, the variable part of the Chief Executive Officer’s remuneration would represent 100 of the fixed part if quantitative and qualitative targets are met. It could rise to 150 if targets are exceeded. This variable part of the remuneration would be divided in the same proportions as the fixed remuneration between the Company and Quadient Holding Inc. The variable remuneration depends on the Group’s results as well as his individual performance and has previously been based on financial criteria for 80 of the target bonus, supplemented by specific qualitative individual performance objectives for 20 . For 2022 the quantitative targets will be reduced to 70 of the variable remuneration, and the qualitative targets increased to 30 . The financial criteria used for the Group’s variable compensation for 2022 are as follows: revenue: this criteria was selected to demonstrate the ● recovery in growth as part of the “Back to Growth” strategy; current operating profit (excluding innovation expense ● and assuming a constant scope): the measure of current operating income was chosen to ensure that profitable and sustainable growth is maintained over time; Free Cash Flow: this constitutes the main marker of ● value creation over time, and therefore a fundamental indicator for shareholders. The target figures related to the revenue and current operating profit are not communicated due to the sensitive nature of this confidential information but will be published a posteriori to present the calculation of the bonus achievement rate.

The remuneration of the Chief Executive Officer breaks down as follows: 1° Remuneration as a director The Chief Executive Officer should receive a maximum of 30,000 euros in 2022 on an annual basis in respect of his corporate office as director of Quadient. This amount is unchanged compared to the previous year. This item of remuneration accounts for 1 of the total target remuneration provided for in the remuneration policy of the Chief Executive Officer. 2° Annual fixed remuneration Annual fixed remuneration is set by the Board of directors on the Appointments and remuneration committee’s recommendation in accordance with the Afep-Medef code’s principles. The fixed remuneration of the Chief Executive Officer has thus been established in relation to the scope of the position and to practices observed in French and international groups where activities, revenues, market capitalization, number of employees and challenges are similar to those of Quadient’s. This comparison of the CEO package with the median of the French peer group, and the assistance of the aforementioned consulting firm, verifies the Chief Executive Officer’s remuneration position. Based on benchmarks and considering that the compensation package had not been revised since his appointment as Chief Executive Officer, four years ago, the Appointments and remuneration committee recommends increasing his annual base salary from 607,000 euros to 650,000 euros (+7 ). The review of the Chief Executive Officer compensation package is supposed to happen at each mandate renewal but, given the economic situation driven by the Covid-19 crisis at that time, it had been decided to postpone any adjustment. Furthermore, since his nomination as Chief Executive Officer, the Company profile has further migrated to much more software rich content, hence moving to a more competitive compensation market.

2

Threshold (0.0 )

Target (100 )

Maximum (150 )

Criteria

Weight

Aligned with FY 2022 guidance of organic sales growth above 2 (b) Aligned with FY 2022 guidance of low to mid, single digit organic current EBIT growth (c)

30

96 of target amount

102 of target amount

Revenue (a)

Current operating profit (a)

30 10

94 of target amount

104 of target amount

Free Cash Flow (d)

79.0

87.8

105.3

Not disclosed due to the sensitive nature of such confidential information. (a) Excluding CVP activities divested in the first half of 2021 and accounting for 13.8m (b) Before acquisition-related expenses. (c) Cash flow after capital expenditure. (d)

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UNIVERSAL REGISTRATION DOCUMENT 2021