QUADIENT // 2021 Universal Registration Document

4 RISK FACTORS AND INTERNAL CONTROL Risk factors

Potential impacts This risk could affect the company on the following: HR ● Loss of efficiency in HR management (accumulation of - administrative layers creating confusion and frustration among employees) Inadequate monitoring of KPIs to address talent - retention issues Operational ● Significant business disruption (failure to meet - planned implementation timetables) Financial ● Failure to meet planned costs - Reputational ● Degradation of the reputation with customers - Risk management measures A Chief Digital Officer was appointed in 2019. His responsibility is to align operational processes and IT systems within the Group. All IT teams report to him. This new team aims to focus on operational processes, collaborate with the management team to enforce new security and operational measures intended to secure the Company from a technical perspective Regarding CRM tools, the Company has already consolidated its CRM tools during the past 3 years. There are 2 global CRM applications (one for MRS and another for CXM) with 2 others dedicated to US and France. Regarding the HRIS, the Company is currently implementing a new HRIS. This project aims at providing a unique platform for HR management (compensation, absence management, self-service), talent management (objectives, goals, assessment, feedback, talent review), reporting, recruiting, expenses management, and learning. As of today, half of these functionalities are available and all of them should be available by end of 2022. Regarding ERP tools, while the Company currently has to manage several legacy and heterogeneous ERPs, a global ERP project is currently being deployed. This project aims at reducing from 20 to a maximum of 1 or 2 the number of ERPs for all the Company's activities. It should be up and running in NORAM by the end of 2022 and will be progressively extended to the other countries in which the Company operates.

following the unforeseen outbreak of social, economic, legal, political or geopolitical events (e.g. Brexit, President Trump tax on goods from China, Ukraine/Russia crisis, etc). Such situation could affect both the safety of the Company's employees and expose it to economic and financial risks. Potential impacts This risk could affect the company on the following: Operational ● Safety of 70+ engineers based in Ukraine - Business disruption, not being able to deliver on the - roadmap Financial ● Financial consequences are linked to the safety of this - engineering team Inability to generate sufficient revenue in a strategic - area/country Strategic ● 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 Risk management measures The geographic diversity of the Company's operations mitigates its exposure to the risks of a given country by limiting the concentration of activities, and as such dependence on that country. As part of its risk management process, the Company monitors and analyzes on a regular basis the context of all the countries in which it operates. On a health and safety perspective, travel guidelines covering specific risks (health, safety, hygiene, vaccination, terrorism) are provided to employees who are travelling. The Company's employees are not allowed to travel in countries where a high risk of political instability exists. While tensions have already arisen in the supply chain, they could continue into 2022, with the potential risk to significantly impacting the Group's operations and degrading its financial results. Potential impacts This risk could affect the company on the following: Strategic ● Increase in sales prices: if Quadient passes on its cost - increases to customers too sharply, this may accelerate the decline of MRS as contracts might not be renewed LASTING INCREASE IN SUPPLY CHAIN COSTS Risk description

DETERIORATION OF OPERATING CONDITIONS IN A STRATEGIC GEOGRAPHICAL AREA Risk description

Considering the changing international context, the persistence of terrorism threats and the increasing tensions between or in some countries, the Company may be subject to serious difficulties in maintaining its operations in a geographical area and/or strategic country

92

UNIVERSAL REGISTRATION DOCUMENT 2021