QUADIENT // 2021 Universal Registration Document

4 RISK FACTORS AND INTERNAL CONTROL Risk factors

Extra workload to relocate production or to find - alternative solution/design, delaying other R&D projects and postponing the launch of new products Financial ● Extra costs associated with the redesign and/or the - selection process of a new supplier The Company is forced to build up stock levels to - prevent contract losses Risk management measures The Company has set up in depth due diligences before validating any new third party in order to check their financial and their integrity before engaging with them. Contractual agreements are also established to protect the Company against such risks. Regarding its key production suppliers, the Company has alternative solutions in case of failure of an OEM or ODM vendor. If one of these suppliers should ever fail, the other one could take over production. Quadient also has selected an alternative source for its strategic tier 2 suppliers. The manufacturing tooling such as the moulds or assembly jigs are owned by Quadient and can be transferred to another supplier. As for PLS, by reintegrating design into the Company, Quadient will be able to work with any partner in the world and have a better control over design. INABILITY TO EXECUTE THE COMPANY'S LOW CARBON STRATEGY Risk description The demand and expectations from the Company's stakeholders regarding its carbon footprint as well as the one of its solutions are growing year-on-year. Since the introduction of the Article 173 of the French law on energy transition, institutional investors have to transparently publish their integration of environmental, social and governance (ESG) criteria in their investment operations. Therefore, they have increased their level of requirements as well as the customers who also need to demonstrate the effort, by cutting the greenhouse gas emissions tied to their activities. The new EU Directive on green taxonomy entered in force in January 2022 will accelerate the need to get data on companies’ strategy related to climate change. Quadient has defined its low-carbon strategy but may find it difficult to implement it (energy consumption, eco-design, circular economy, remanufacturing, etc.) Potential impacts This risk could affect the company on the following: Financial ●

Potential impacts This risk could affect the company on the following: Operational ● Significant disruption for customers - Financial ● Costs of bringing the systems back up & running - Penalties, fine in case of non-compliance with - customer contracts Reputational ● Degradation of the reputation with customers - Risk management measures The Company has implemented a business continuity plan for all critical services delivered to its customers. It starts with the backup of customer and business data to the setup of a secondary environment redundant with the primary environment. Almost all the services delivered to customers come from applications that are hosted on a cloud-based environment or in data centers operated by certified suppliers and monitored by dedicated teams, ensuring a high level of security. In addition, the Company performed a risk analysis, put in place measures to prevent them and a procedure for dealing with incidents, in connection with its digital standards and Information security management system. The ICA activities are ISO 27001, 27017 and 27018 certified. Quadient evolves in an environment in which it interacts with several business partners and joint-venture partners to market its solutions and with several suppliers to manufacture hardware products. The Company has a certain dependency to OEM and ODM vendors that assemble Parcel Lockers and entry-level and mid-range MRS machines in Asia. The risk is that the Company is unable to anticipate the failure of one of its business partners or the dependence to a specific supplier, which could significantly impact its ability to maintain its operations or resulting in a loss of revenue. Potential impacts This risk could affect the company on the following: Operational ● Disruption of the production / supply chain - Delay in delivery time - FAILURE OF A CRITICAL THIRD PARTY Risk description

Decrease in the stock price - Loss of customers, revenues - Reputational ●

Bad image on the market - stakeholders/partners, civil society, rating agencies, regulators, etc.) (business

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UNIVERSAL REGISTRATION DOCUMENT 2021