QUADIENT // 2021 Universal Registration Document

RISK FACTORS AND INTERNAL CONTROL Insurance

Insurance 4.2

All Quadient companies are covered by a worldwide insurance program which covers operating damage and loss, liability, and transport risks. All subsidiaries adhere to the guarantees set up and negotiated at Group level, subject to local regulatory restrictions or specific geographic exclusions. Quadient’s risks include a high level of geographic dispersion, which substantially dilutes the consequences of any claim. The cover negotiated by the Group is high and is above all aimed at insuring the largest risks which might have a material impact on the Group’s financial position. The operating damage and loss insurance cover was renewed on 1 April 2021 for one year under the same conditions. The insurance covering transport risks was renewed on 1 February 2022 under the same conditions for 14 months ending 31 March 2023.

The insurance policy covering “liability” was renegotiated and renewed for one year ending on 31 March 2023. Given the development of Quadient in software activities, it was decided in 2014 to cover the risk of possible claims from third parties against Quadient for infringement of copyright and intellectual property. The policy was renewed on 1 April 2022 for one year. Finally, it has been decided to cover cyber risks in June 2019. Total cost of insurance amounted to 0.8 million euros in 2021. Quadient’s insurance policies are regularly updated to reflect changes in the Company’s scope of consolidation and to cover industrial risks within the global insurance market framework. The Company's guarantees are placed with leading insurers with worldwide reputation.

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Internal control and internal audit 4.3 framework

4.3.1

INTERNAL CONTROL

4.3.2

INTERNAL CONTROL AND AUDIT

FRAMEWORK

ORGANIZATION

As part of the organization of the internal control and for the preparation of this report, Quadient adheres to the AMF reference framework. In accordance with the AMF definition, the Company has designed and implemented its internal control system to ensure: reliability of financial information; ● compliance with existing laws and regulations; ● implementation of the instructions and directions given ● by Group management; proper functioning of the Company’s internal processes, ● especially those relating to the protection of its assets. On a general level, the internal control system helps the Company monitor its activities, improves the efficiency of its operations and ensures the efficient use of its resources.

Quadient internal control and audit function was set up early 2009, its purpose is to serve the Group at three levels: identify and assess risk; ● conduct internal audits; ● coordinate internal control. ● The Group’s internal control and audit department includes two permanent auditors and coordinate the work of a network of specially trained non-permanent auditors comprising the chief financial officers and financial controllers in the various Group companies. They are selected in accordance of the skills required for each audit. This structure gives the Group access to a wide range of skills. The internal control and audit department reports to the Group finance department and can address all topics without restriction. It also reports to the Audit Committee regularly and at least twice a year as part of the audit committee meetings.

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UNIVERSAL REGISTRATION DOCUMENT 2021