QUADIENT // 2021 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Risk factors

Potential impacts This risk could affect the Company on the following: Financial ● Financial losses due to the launching of an inadequate - new solution on a local market (unprofitable investments) Inability to generate sufficient revenue to compensate - for the decline in the historical business (MRS) Strategic ● Loss of market share and of businesses - Inability to successfully make the transition outlined in - the "Back to Growth" strategy Missing a strategic opportunity and losing market - share in a rapidly changing market (limited capitalization on new growth drivers) Losing the specialization in each of the 3 solutions - Risk management measures The Chief Marketing Officer's department regularly analyzes the competition and this topic is discussed during the Board meetings and during the management team meetings. For the MRS business, the quality of the Company's technologies and its R&D resources enable it to meet the customers' demands and requirements, especially those of posts. For the PLS business, the Company has given in-depth thought to its differentiation strategy. Quadient is expanding its R&D capacities and is covering a growing number of geographies and a larger spectrum of clients. It is positioning itself as a player capable of offering both carrier and retailer lockers where everyone can drop off their items. Moreover, the Company has done the right market research to be effective in the launching of its new products. For the ICA business, the Company has decided to combine its Customer Experience Management and Business Process Automation software solutions into a true end-to-end cloud-based global business communications platform. The Company has defined an agile methodology and benefits from customer-facing employees and partners to respond quickly to customers based on their needs. In this respect, the Company has invested more in people and hired/created some roles to improve such business relations. CXM being a mature market with few and big competitors that are similar to Quadient, the Company is well aware of their strategies and is able to adapt to them or even anticipate them.

FAILURE OF COMPANY’S TRANSFORMATION Risk description

The 1st phase of the "Back to Growth" strategy, implemented early 2019, has implied many changes around the following pillars: reinvest in Quadient highly cash generative ● Mail-Related Solutions offering focus on four major solutions in the main geographies ● seize bolt-on acquisition opportunities ● streamline the Company’s organization ● either grow, improve or divest the Company’s ● additional operations by no later than 2022 adapt the Company’s shareholder return policy. ● The phase two of “Back to Growth” started in March 2021 and will encompass in 2022 further changes in Quadient’s operating model. The objectives set in terms of transformation and reorganization of the Group may not be achieved and may jeopardize the proper functioning of the business or prevent the Group from benefiting from the expected effects. Potential impacts This risk could affect the company on the following: Operational ● Loss of efficiency between teams, business lines and - regions Failure to meet planned implementation timetables - Business disruption, not being able to deliver on the - roadmap Strategic ● Inability to successfully make the transition outlined in - the "Back to Growth" strategy Damage to reputation with key stakeholders - HR ● Rising tensions between teams/collaborators - Rising social tensions - Increased staff turnover - Risk management measures Implemented early 2019, the “Back to Growth” strategic plan involved both a strong refocus of Quadient’s solutions portfolio and a major transformation of its operating model. Quadient aimed at building leading market positions in highly growing businesses that are synergistic with its foundational mail-related activities. Customer communication and experience management, business process and document workflow automation, as well as automated parcel locker solutions were selected to be the company’s growth engines while continuing to benefit from Quadient’s strong position in the highly profitable and cash generative Mail-Related Business, which the Company continues to invest in with the obective to gain marcket share each year. Gradually increasing the contribution of these growth engines within Quadient’s total revenue has been set as a critical metric of

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UNIVERSAL REGISTRATION DOCUMENT 2021