QUADIENT // 2021 Universal Registration Document

4 RISK FACTORS AND INTERNAL CONTROL Risk factors

Probability of occurence

Very likely

Inability to address customers’ needs Lasting increase in supply chain costs Inability to attract and retain key talents Execution of Company's transformation" Lasting pandemic disrupting the business (COVID-19) Failure of a critical 3rd party Tax matters Breach of the code of conduct and ethical rules New postal regulations Critical failure of IT systems

Likely

Faster than expected decline of MRS

Loss of competitiveness Significant failure in the deployment of IT tools Critical information security incident

Inability to execute the Company's low carbon strategy

Loss/theft/corruption of data and/or information

Rare

Deterioration of operating conditions in a srategic area

Very rare

Impact

Low

Medium

High

Very high

Risks relating to the company strategy, organization and governance Risks relating to the company operations Risks relating to finance, regulatory changes, ethics and legal

Risks relating to the company strategy, organization and governance

FASTER THAN EXPECTED DECLINE OF MRS Risk description

successfully acquired new businesses in PLS (Parcel Pending) and ICA (YayPay and Beanworks) to complement its offering and increase its strategic position on these markets. Quadient has also divested or shut down several activities to refocus on its priorities. In 2021, the organic growth of the Company has increased by +4.3 in comparison with 2020. The 3 lines of business have grown respectively +1.8 for MRS, +2.6 for PLS and +7.3 for ICA in comparison with 2020. On Mail-Related Solutions business, Quadient has two main competitors, the leader Pitney Bowes and Francotyp Postalia, number 3 in the world. Pitney Bowes is listed on the New York Stock Exchange. Its main market is North America. Francotyp Postalia is listed on the Frankfurt Stock Exchange. Germany is its main market. Regarding the Intelligent Communication Automation (ICA) and Parcel Locker Solutions (PLS), the Company operates within an extremely competitive environment, in which the ability to innovate and adapt solutions to the needs of its customers is a major priority for the Company. Quadient’s competitors in these new markets are more numerous and could have greater financial resources than the Company, which might affect the Company’s competitiveness. LOSS OF COMPETITIVENESS Risk description

Mail volumes are down in all countries where the Company operates and the MRS activity is characterized by an already identified decline. Quadient expects a better than (5) organic CAGR revenue decline over the 2021-2023 period. However, the pace of this decline could accelerate, making it more difficult for the group to finance its new growth drivers (ICA, PLS). Potential impacts This risk could affect the company on the following: Strategic ● Accelerated decline in EBIT generation by MRS would - compromise the ability to invest in new growth drivers (ICA, PLS) Financial ● Decline in the margin generated by the Group - Risk management measures As part of the "Back to Growth" strategy, the Company has decided to develop new growth engines to anticipate the decline of MRS business. In this respect, the Company has

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UNIVERSAL REGISTRATION DOCUMENT 2021