first-half 2021 results

First-Half 2021 Results27 September 2021

2© 2021 Quadient. All rights reserved.

Disclaimer

FORWARD-LOOKING STATEMENT

This presentation contains forward-looking statements (made pursuant to (i) the safe harbour provisions of the Private SecuritiesLitigation Reform Act of 1995 and (ii) the principles of the French Autorité des Marchés Financiers' guide to periodical disclosuresof listed companies (DOC-2016-05) of 2020 ), which, by their nature, involve a degree of risk and uncertainty. Forward-lookingstatements represent the Company’s judgment regarding future events, and are based on currently available information.Consequently the Company cannot guarantee their accuracy and their completeness. Actual results may differ materially fromthose the Company anticipated due to a number of uncertainties, many of which the Company is not aware of.

For additional factors that may cause the Company’s actual results to differ materially from expectations and underlyingassumptions, please refer to the reports filed by the Company with the Autorité des Marchés Financiers (French Financial MarketsAuthority – “AMF”).


Agenda

H1 2021 highlights

4 Appendices

3 FY 2021 outlook

2H1 2021 financial review

1


Successfully simplified and refocused the company in the first 2 years, we are executing phase II to drive sustainable value

Phase II - 2021 - 2023Drive sustainable value

Phase I - 2019 - 2020Transform

1. Data Quality 2. Shipping Software 3. Graphics business in Australia

BOLT-ON ACQUISITIONS

DIVESTMENTS

PLS: Parcel Pending to scale US business

ICA Software: Account Receivable (AR) acquisition with YayPay

c.€110-115m cash-in to date

c.€195-200m cash-out to date

2020 20212019

(Shut down)

ICA Software: capability portfolio completion with Beanworks(Account Payable – AP)

• Focus on:– Organic growth – Increased profitability– Deleverage the company

• Complete the integration of our acquisitions

• Acceleration of:– Growth and scale of each of 3 core solutions – Simplification of the organization – Maximizing synergies across solutions

• New strategy

• Management re-focus and simplification of the company– Established country clusters to gain efficiency: leaner, customer

and language proximity– Establishment of Centers of Excellence

• Refreshed ExCom & Senior leaders, with new talents hired to lead our transformation

• Reshaped solution portfolio

• Unified and integrated company

Back to Growth

4. Drachten Factory and packaging system


Large, resilientmail volume

Quadient focuses on customer needs in high-growth markets

BoomingE-commerce

& Growing parcel volumes

Increased need for digital experience,

communication and business automation

Transactional mail volumes growing by +1% in Q2 in NORAM & showing decline

resilience after Covid in other geographies

Financial automation (AP/AR) & Cloud digital application growing by

up to c.+15% in the future

Continued eCommerce explosion+35% in 2020

+14% in 2021 expected+5-10% afterwards

Notable landscape evolution

2 acquisitions

Planning for IPOIPO

ARSpendmanagement


IPO+

Entering EU market

Acquisition

Sample of acquisitions Acquisition

Entering parcel lockers and AP


AP

eInvoicing

H1 2021 highlights

Geoffrey GODETCEO


A snapshot of Quadient in H1 2021

+11.1% (1)

VS. H1 2020

ORGANIC GROWTHIN REVENUE

+26.8%ORGANIC GROWTH (2)

MAIL-RELATED SOLUTIONS

HARDWARE REVENUE


PARCEL LOCKER SOLUTIONS

REVENUE


ICA(3)

(SOFTWARE)SUBSCRIPTION-

RELATED REVENUE€70mCURRENT EBIT(4)

+28.2% org. growth vs. H1 2020

(1) Reported growth: +3.9%(2) Within Major Operations(3) Intelligent Communication Automation(4) Current EBIT before acquisition-related expenses

€54mCASH FLOW AFTER

CAPEX

€

€45mNET ATTRIBUTABLE

INCOME+110% reported growth

vs. H1 2020

© Quadient 8

H1 2021 – Business highlights

CONTINUOUS EXECUTION OF BACK TO GROWTH ─ Completing best-of-breed business communications

management suite with the acquisition of account payable solution

─ A new milestone in the Company’s portfolio streamlining and MRS industrial footprint optimization with the divestment of Drachten factory and Packing Solutions

BENEFITTING FROM A STRONG COMMERCIAL MOMENTUM ACROSS ALL SOLUTIONS

ACCELERATING OUR SUBSCRIPTION-RELATED MODELIN OUR GROWTH ENGINES

CONTINUING TO FOSTER OUR SYNERGIES(customer, commercial, supply chain, back office)

Two-year anniversary of Quadient brand

to reflect our transformation into an innovative and more

synergistic organization

© Quadient 9

Continued progress in H1 across the 5 pillars of our CSR program

PEOPLE

Focus on inclusion

• Launch of first Inclusionpolicy and training

• Joined Valuable 500, bringing greater support to employees with disabilities

• Signatory member of the French Diversity Charter

• Work from Anywhere program continues to bring greater resources to flexibility, wellness and hybrid work

ETHICS & COMPLIANCEFocus on ethical behavior

• Signatory member of the UN Global Compact

• Continued investment in our global compliance program

• Updated Code of Conduct for Third Party Partners, with access now to our Ethics 24x7 helpline

• Initiatives related to Data privacy and Information Security

ENVIRONMENTExpansion of our programs

related to reduction of waste and carbon footprint

• Circular economy : MRS remanufacturing program expanded to the US market

• ISO 14001 certification renewal for all industrial sites

SOLUTIONS

Focus on customers

• Recognized as a Top 10 leader for the 4th year in a row by Truffle 100 annual ranking

• Recognized as an overall leader in Aspire Leaderboard for CCM

• Customer value and total experience of YayPay by Quadient recognized by Forrester Consulting

PHILANTHROPY

Launch of Quadient’s first Philanthropy Program

• Launch of newphilanthropy program, Quadient Cares, focusing on Education, Inclusion & Diversity and Protecting the Environment

• Community engagement platform launched Worldwide to promote volunteering, skill-based sponsorship and donations


AR/AP payments: > +250% in H1 2021 vs H1 2020

Customer communication volume: > +35%in H1 2021 vs H1 2020

Strong growth of mid-segment revenue through Quadient MRSsales channel cross selling

Quadient MRS sales channel is a top partner for both ICA Enterprise and mid-sized customers in pipeline creation and bookings

Already signed several accounts payable (Beanworks) contracts thanks to Quadient MRS sales channel in NORAM in the first quarter of the acquisition

Software – Intelligent Communication AutomationH1 2021 highlights – crossing the 10k customers threshold for the first time

+33% +48%

CONTINUED INDUSTRY RECOGNITION

Largest provider of car insurance in

the United States

CONTINUE BUILDING PARTNERSHIPS AND ACQUIRING NEW LOGOS

STRONG GROWTH OF SOFTWARE REVENUE THROUGH SYNERGISTIC MRS CHANNEL CROSS SELLING

H1 21 key figures

o/wc.+150 AP/AR

customers in Q2 2021

+1,200 net new

customers in H1 2021

INCREASED USE OF OUR CLOUD PLATFORMS


Software – Intelligent Communication AutomationH1 2021 solution KPIs

SHARE OFSUBSCRIPTION-RELATED REVENUESHARE OF SAAS/SUBS CUSTOMERS ANNUAL RECURRING REVENUE

(ARR)

Subscription-related revenue ensures revenue robustness and safetyMonitors transition to Subs/SaaS

Allows to assess the health of ICA and compare it to peers as it takes recurring

software business specificities into account

Rationale

Definition

Historical evolution

Share of SaaS/Subs customers1

(2019-21, %)

60%

0

55%

65%

70%

2019

65%

56%

2020 H1 2021

109

123133

100

110

120

130

140

2019 2020 H1 202140

50

60

70

2019

50%

59%66%

2020 H1 2021

70%

Subscription-related revenue over total revenue

Number of SaaS/Subs customers over total number of customers

Annualized revenue from subscription-related revenue streams

Share of subscription-related revenue(2019-21, in %)

ARR (2019-21, in €m)

133 66%


Smart Hardware – Mail-Related Solutions H1 2021 highlights

Modernize the product line with product launch renewal and S.M.A.R.T software launch General availability in the U.S. of iX-9 Meeting the latest USPS Intelligent Mail Indicia and Dimensional Weighing

requirements Expanding Quadient’s intelligent iX-Series mailing and shipping systems to Europe

S.M.A.R.TiX-9

iX RangeiX Range

Growth outpacing by almost 2x market rebound in H1 2021 thanks in part to customer acquisition and retention

Supply chain industrial footprint optimization with the divestment of Drachten facility

Synergies from shared supply chain & customer service center of excellence, notably with PLS with one mutualized warehouses in the USA

Sales enablement to help customers accelerate their journey to digital

CONTINUED SYNERGIES

HIGH CUSTOMER SATISFACTION


A new milestone for Quadient’s industrial footprint optimization and its portfolio reshaping Divestment of Drachten factory and Packing Solutions

Automatic Packing Systems

(CVP)

In Additional Operations

PRODUCT RANGE

Reshapingthe portfolio

BACK TO GROWTH STRATEGY

> Total consideration from the sale: > €20million

> Scope exit from 1 August 2021

Outsourcing Other Quadient factoriesDrachten

Document systems for Mail-Related

Solutions

In Mail-Related Solutions

Industrial footprint automatization

After Drachtenfactory divestment

Before Drachtenfactory divestment

SHARE OF INDUSTRIAL VALUE CREATEDEST. 2021

In the short term

> Immediately externalization of production costs related to its Mail-Related Solutions business: c. €14million p.a.

> Production to be gradually transferred to outsourced suppliers and other sites

> No more exposure to loss making Automatic Packing Systems (CVP) business

In the long term

> Significant OPEX reductions

> Reducing the risk related to the decline of production

IMPACTS

c.50% c.70%


Smart Hardware – Mail-Related Solutions H1 2021 solution KPIs

SHARE OFSUBSCRIPTION-RELATED REVENUE

SHARE OFUPGRADED INSTALLED BASE RESILIENCE INDEX(1)

Subscription-related revenue ensures revenue robustness and safety

Size the upside potential for upgrade to the latest generation smart hardware

Confirm that MRS revenue decline is slower than overall mail volume decline (proxy: supplies)

Rationale

Definition


Subscription-related revenue over total revenue

Share of new generation smart devices among total number of devices in the

installed base

Spread between supplies revenue evolution and total revenue evolution(2)

0

2

4

6

8

10 8.5%

1.1%

2019 2020

4.9%

H1 20210

2

4

6

H1 2021

2.4%1.7%

2019

5.2%

202060

65

70

75 74%

H1 2021

72%

2019 2020

72%

(1) Resilience Index = supplies revenue evolution vs. previous year (in %) - total revenue evolution vs. previous year (in %); (2) Positive trend is a marker of total revenue overperformance vs. mail volume usage(3) 2019 and 2020 Resilience Indexes do not take into account the ICA/MRS products reclassification

Share of upgraded Installed Base(2019-21, %)

Share of subscription-related revenue(2019-21, %)

Resilience Index(3)

(2019-21, %)

Supplies sales back to growth

but total revenue growing

even faster thanks to strong

hardware revenue growth

Supply sales strong decline, total revenue declining less

thanks to other streams resilience

Impact of strong dynamic in

hardware sales in H1 21


Smart Hardware – Parcel Locker Solutions H1 2021 highlights – Strong momentum in our verticals

FAST SCALING OF OUR OPEN NETWORKS

SYNERGIES FROM OUR MRS CHANNEL

PROMISING ADOPTION IN NEW GEOGRAPHIES

Continued traction in the US with 300 installations for corporate and universities

Pipeline increase in the UK for universities due to COVID

MRS Synergies: Strong growth of Higher Education/Corporate bookings through MRS USA sales channel (index at 100 for 2019)

Education

and corporate offices

Retail

Lowe’s US roll-out completed in Q1, extension into Canada for another 179 stores completed in Q2

Prescription medicine delivery started in Japan

Carriers

New milestone reached with 6,000 units installed in Japan

2,000 units with Relais Colis (500 units) and Pickup (1,500 units) to be rolled out within 3 years

MRS Synergies: Carrier deal in Canada for Q4 roll-out

Drastic increase in market demand

Property managers

Still good traction in usage in the network in the United States with 18m parcels in H1 2021 (+24%)

Promising start in the United Kingdom and France

2019 2020 2021


Smart Hardware – Parcel Locker Solutions H1 2021 solution KPIs

GROWTH OF SUBSCRIPTION-RELATED REVENUEINSTALLED BASE USAGE RATE

Subscription-related revenue ensures revenue robustness and safety

Monitoring of numbers of lockers and market share

Allows to monitor customer acquisition and churn

Shows the progress in the monetization of our installed base

Rationale

Definition


Subscription-related revenue Number of lockers installed (Number of parcels in the locker at the beginning of the day + number of parcels

delivered during the day) / number of subscribed boxes in the locker

7

10

13

6

8

10

12

14

16

2018 2019 2020

14.5

H1 2021

20

30

40

50

60

25%

2018 2019

40%

57%

H1 2021

2020

60%

16

33

42

21 23

H1 2021H1 20202018 2019 2020

+20% in organic

Installed base(2018-21, in K)

Usage rate(1)

(2018-21, in %)Subscription-related revenue (2018-21, in €m)60%

1,500+units

(1) Change in maximum rotation time assumption. Usage rate for 2020 and H1 2021 have been revised accordingly.

QuadientX-series

Quadient Customer Journey Explorer

H1 2021 financial review

Laurent DU PASSAGECFO

17


Strong recovery in organic growth confirmed in Q2 2021

(1) Non-recurring revenue = license and hardware sales; Recurring revenue = subscription-related revenue and services

ORGANIC CHANGE – GROUP

-14.6%

Q1 ’20

-10.9%

Q2 ’20 Q3 ’20

-3.0%

Q4’ 20

-1.0%

+11.1%

Q1 ’21

+11.1%

Q2 ’21

ORGANIC CHANGE – RECURRING / NON-RECURRING (1)

-4.6%

-26.4%

+33.4%

Q2 ’20 Q2 ’21Q1 ’20

-5.0%

-2.1%

-7.7%

-29.0%

Q3 ’20

+0.7%

+30.7%

-2.1%

Q4’ 20

+5.1%

Q1 ’21

+3.4%

Non-recurring revenueRecurring revenue


PARCEL LOCKER SOLUTIONS (1)

INTELLIGENT COMMUNICATION AUTOMATION (1)

Sustained performance across all solutions in Q2 2021

(1) Within Major Operations(2) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions

4452

Q2 ’20 Q2 ’21

+17.3%

MAIL-RELATED SOLUTIONS (1)

87

H1 ’20 H1 ’21

97

+11.7%

161 161

Q2 ’20 Q2 ’21

+4.0%

320

H1 ’21H1 ’20

318

+5.1%

17 19

Q2 ’20 Q2 ’21

+17.5%

32

41

H1 ’20 H1 ’21

+40.7%


Major Operations+9.0%organic change

Mail-RelatedSolutions

-13

H1 2020 Scope effect (1)

+10

Currency effect (2)

-20

IntelligentCommunication

Management

+16

+13

Parcel LockerSolutions

+13

AdditionalOperations

H1 2021

485

504

Group +11.1%

organic change

H1 2021 revenue bridge

* Scope effect: -€3.3m

H1 2021 revenue bridge (in €m, % of organic change vs. H1 2020)

+11.7%

+5.1%

+40.7%

+39.1%

-4.2%

-2.7%

(1) Scope effects: divestments of ProShip and Graphics in Australia; acquisitions of YayPay and Beanworks(2) Average rates H1 2021: EUR/USD = 1.20 and EUR/GBP = 0.86

21

Intelligent Communication AutomationMajor Operations - H1 2021 revenue and solution profit margin

(1) % of organic change vs. the same period in 2020; 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions

H1 2021 Solution Profit Margin

16.0%(270) bps

organic change vs H1 2020

Growing customer demand for AR and AP solutions leading to c. +70% organic growth

Strong double-digit growth in Subscription-Related Revenue for both SMBs (+31%) and large accounts (+13%), mainly driven by SaaS and volume-based solutions

Improving level of activity in Professional services, particularly in France and the UK

Shift to SaaS leading to lower license revenue, although one large deal in Q2 2020

66%

20%

14%

Professional services+9.8 % (1)

Licenses and hardware sales-13.8% (1)

Subscription-relatedrevenue

+19.9% (1)

H1 2021 revenue by type

€97m

H1 2021 revenue

Organic growth vs. H1 2020

+11.7% (1)

Investment level on target, including recent acquisitions of high growth YayPay & Beanworks: ─ Increased R&D investments related to Cloud-platform

expansion

─ Additional go-to-market and marketing investment

Continuing shift in customer base from license to SaaS model impacting near term profit margin as planned

22

Mail-Related SolutionsMajor Operations - H1 2021 revenue and solution profit margin

Positive organic growth across all geographies, with a sustained performance in North America and improved business trend in Europe

Strong recovery in hardware sales, with organic growth of c. 27%, thanks to good traction with new customer acquisitions

Overall good resilience of the installed base and subscription-related revenue despite lingering Covid impact on usage, in particular in Europe

72%

28%

Licenses and hardware sales+26.8% (1)


H1 2021 revenue


+5.1%(1)


-1.5% (1)

€320m



44.5%(96) bps

organic changevs H1 2020

Revenue mix effect from:

─ Strong increase in hardware sales

─ Lower level of placement in H1 2020 impacting subscription-related revenue

Impact from increase in freight cost

23

Parcel Locker SolutionsMajor Operations - H1 2021 revenue and solution profit margin

Double-digit growth in subscription-related revenue, due to the expansion of the installed base in the US in 2020, with sustained increase in maintenance and volume-based revenue

Sustained growth in hardware sales, reflecting strong dynamics in US retail due to the rollout of the Lowe’s contract (completed in Q1 2021) and good traction in the universities in the US

Promising start of UK market

H1 2021 revenue


+40.7% (1)

56%

39%

5%Professional services+83.9% (1)




+20.1% (1)

€41m

(1) % of organic change vs. the same period in 2020


(1.4)%+538 bps

organic changevs H1 2020

High profitability of the installed base (profit margin between 25% and 30%)

Planned increased investments in R&D and go-to-market

New installations:

─ Different revenue mix with higher rate of subscription vs H2 2020

─ Impact from increase in freight cost for new installations

24

Major OperationsH1 2021 revenue and current EBIT

Strong performance in North America, driven by the rebound in Mail-Related Solutions and double-digit organic growth across Intelligent Communication Automation and Parcel Locker Solutions businesses

Improved level of activity in Europe, though still impacted by Covid health measures

Solid performance in International, mainly due to Parcel Locker Solutions

5%

40%

55%

North America +12.0% (1)

International+5.2% (1)

Main European Countries+5.4% (1)

(1) % of organic change vs. the same period in 2020

H1 2021 revenue


+9.0% (1)5%

69%

26%

H1 revenue by geography

Professional services+14.3% (1)



+3.6% (1)

€458m


H1 2021 Current EBIT

€71m+19.6%

organic change vs H1 2020

Strong acceleration of the level of activity

Improvement in the profitability of the installed base

Increased investments in go-to-market & marketing (launch of new verticals and geographies for ICA and PLS) and in R&D

Continuing shift in customer base from license to SaaS model impacting ICA near term profit margin as planned

Increased freight costs and longer delivery lead time

25

H1 2021 results summary

Parcel Locker

Solutions

Mail Related

Solutions

€458m+9.0%

€320m+5.1%

€41m+40.7%

Major Operations

€46m+39.1%

€504m+11.1%

Additional Operations

Total Group

North America

Main European countries

International

€250m+12.0%

€183m+5.4%

€25m+5.2%

Intelligent Communication

Automation

€97m+11.7%

SALES% of organic growth (1)

vs. H1 2020

34.4%(192)bp

44.5%(96)bp

(1.4)%+538bp

17.6%+668bp

32.8%(160)bp

16.0%(270)bp

Solution Profit MarginOrganic change in bp

€71m+19.6%

€(0)mvs. €(4)m

€70m+28.2%

Current EBITbefore acquisition-related

expenses% of organic growth


26(1) Current EBIT before acquisition-related expenses;(2) Scope effect taking into account the divestments of ProShip (end-Feb. 2020) and Graphics activities in Australia and New Zealand (21 Jan. 2021) as well as the acquisitions of YayPay (29 July 2020) and Beanworks (23 March 2021)

H1 2021 current EBIT before acquisition-related expenses bridge(in €m, % of organic change vs H1 2020)

Improvement in activity lead to a €16m organic increase in current EBIT(1)

Scope effect(2)

H1 2020 H1 2021 @ LYR

Change In Major

Operations’ Solutions

Profit

H1 2020 (scope

restated)

+561

(4)

+5

+770

(3)

Change in G&A and

Innovation

58

74

H1 2021Change In Additional

Operations’ Solutions

Profit

Currency effect

+28.2%The increase in current EBIT is mainly due to:

The strong improvement in activity level vs H1 2020

Improvement in profitability:─ thanks to the increase in installed base and its

profitability

─ while investments were increased as planned (R&D, go-to-market, acquisitions)

─ despite the impact of the on-going shift to subscription model (lower level of license upfront)

Improvement of G&A thanks to: ─ further simplification of the organization

─ reduction of real estate footprint


Note: Average rates EUR/USD H1 2021 = 1.20 and FY 2020 = 1.15; EUR/GBP H1 2021 = 0.86 and FY 2020 = 0.89(1) As per IFRS treatments, the calculation takes into account the dividends paid to ODIRNANE’s holders.

2021: Mainly linked to restructuration expenses and Drachten factory (APS) divestment

2021: Strong decrease in fees

2021: Reduced cost of debt thanks to 2020 refinancing operations

In € million H1 2020 H1 2021

Current operating income (before acquisition-related expenses) 61 70

Acquisition-related expenses (11) (6)

Current operating income 50 65

Optimization expenses and other operating income & expenses (8) (12)

Operating income 42 53

Cost of debt (16) (12)

Currency gains & losses and other (1) 14

Net financial income/(expense) (17) 3

Profit before tax 25 55

Taxes (3) (10)

Income from associated companies (0) 0

Net attributable income 21 45

Minority interest 1 1

Net margin as a % of sales 4.5% 8.9%

EPS (in €) 0.50 1.19

Fully diluted EPS (in €) 0.50 1.12

Net attributable income of €45 million, up from €21 million in H1 2020

(2) The average compounded number of shares is 34,017,519. The fully diluted number of shares is 40,356,954.

2021: Increased value of the funds investment (X’Ange and Partech)

2020: Benefits from tax loss carry-back measures in the US in COVID-19 context


Robust cash flow generation and EBITDA margin at 23.5% in H1 2021

In € million H1 2020 H1 2021

EBITDA 104 118

EBITDA margin (%) 21.5% 23.5%

Other items (2) (11)

Cash flow (1) 102 107

Change in working capital requirement (25) (6)

Change in lease receivables 54 32

Interest and income tax paid (16) (41)

Cash flow from operations 115 92

Capital expenditure (39) (39)

Cash flow after capex 76 54

Acquisitions net of divestments (9) (72)

Cash flow after capex & acquisitions 65 (18)

Note: Average rates EUR/USD H1 2021 = 1.20 and FY 2020 = 1.15; EUR/GBP H1 2021 = 0.86 and FY 2020 = 0.89(1) Before net cost of debt and tax

2021: Restructuring expenses and net impact of provisions release (inventory and bad debt)

Better receivables collection

Slow down of leasing portfolio decrease in 2021 (-5% vs. -7% in H1 2020)

Normalization of tax paid compared to 2020 that benefitted from measures in COVID context

Acquisition of Beanworks in Q1 2021

2021: EBITDA margin improvement in spite of Beanworks and YayPay acquisitions


CAPEX level reflecting phasing in investments

Rented equipment

Steady level of rented mail equipment placement reflecting the mix of hardware sales (leasing rather than rental)

Acceleration in Parcel Lockers investment planned in H2 with the roll-out of main contracts in the second half of the year

Development CAPEX maintained at €16m

Broadly stable maintenance CAPEX

CAPEX mix (€m)

6 5

16 16

15 15

39

23H1 2020 H1 2021

39

Rented equipment Development CAPEX Maintenance CAPEX

Asset right of use (IFRS 16)

12 11

3 4

H1 2021H1 2020

15 15

Mail-Related SolutionsParcel Lockers Solutions

(1) Acquisition of software and IT implementation costs, acquisition of machinery and equipment and other investments

(1)


Net debt and future cash flows as at 31 July 2021Improving leverage in spite of Beanwork’s acquisition

Closing rates: EUR/USD H1 2021 = 1.19 and FY 2020 = 1.21; EUR/GBP H1 2021 = 0.85 and FY 2020 = 0.88(1) Excluding ODIRNANE of €265 million, maturing 2022 – classified in equity under IFRS

598 575

205 183

End of FY 2020 End of H1 2021

759803

Leasing portfolio

Rental future cash flows

Net financial debt Leasing portfolio and rental future cash flows

€722 million, of which:

€322m of cash

€400m of undrawn credit facility (maturing 2024)

439 459

74 66526

End of FY 2020 End of H1 2021

512

0.4x Net debt excl. leasing /EBITDA excl. leasing

2.1x Net debt / EBITDA2.0x

0.7x

IFRS 16 debt

Net financial debt excluding IFRS 16(1)

1.93x incl. ODIRNANE

2.13x incl. ODIRNANE

Thanks to FCF generation and EBITDA recovery, Group leverage ratio evolution has been containedbetween January and July 2021.

Strong liquidity position


FY 2021 outlook

Geoffrey GODETCEO


2021 outlookUpgraded guidance on current EBIT for FY 2021

S C O P E : G R O U P

(1) Current EBIT = current operating income before acquisition-related expenses; Organic: excluding FX and scope effects, based on 2020 current EBIT excluding earn-out reversal (i.e. €145 million) with a scope effect resulting in a €140 million proforma

Maintained above 4% organic growth in 2021

despite scope change…

Revenue growth

1

Above 6% organic current EBIT growth in 2021(1)

Vs. 5-6% organic current EBIT growth in 2021(1) previously

UPGRADED Current EBIT growth

2

ASSUMPTIONS

SCOPE CHANGE: Negative impact of the divestment of the APS business on expected organic revenue growth in 2021 versus initial full-year guidance

SOLUTIONS TRENDS FOR H2 2021

─ ICA: Continued strong growth momentum for subscription and accelerated shift in model from license to SaaS in H2 2021

─ MRS: Organic sales decline expected at be at low single digit level in H2 2021

─ PLS: Due to the particularly high comparison basis set by the Lowe’s contract in H2 2020 (PLS organic growth at c.+29% in Q3 2020 and c. +88% in Q4 2020), expected c. 15% organic decline in H2 2021 in PLS revenue despite of the dynamic rollout planned for H2 2021 and the growing level of subscription-related revenue from the installed base

OPERATING EFFICIENCIES impacting positively Group current EBIT (real estate footprint, simplification and further integration of the organization) partially offset by now anticipated increase in freight costs in H2 2021 as well as active hiring campaign and continued investment in talent to support growth.


Mid-term ambitions by solutionOn track to achieve our mid-term ambitions by solution

S C O P E : M A J O R O P E R A T I O N S

Mail-Related Solutions Parcel Locker SolutionsIntelligent Communication Automation

+19.9% in H1 2021 +5.1% in H1 2021 1,500+ new installs in H1 2021

Over 20-25% subscription-related revenue CAGROver the 3-year plan

Better than -5% organic CAGR revenue declineOver the 3-year plan

More than 25k lockersBy the end of the 3-year plan

c.30% Solution Profit MarginOn a FY basis by the end of the 3-year plan

High Solution Profit Margin in the range of 43-45%On a FY basis by the end of the 3-year plan

35-40% Profit Margin of the Installed BaseOn a FY basis by the end of the 3-year plan

16.0% in H1 2021 44.5% in H1 2021 25-30% in H1 2021


Topline growth Minimum 3% organic growth CAGR over 2021-23

Current EBIT growth

Minimum mid-single digit organic current EBIT growth CAGR over 2021-23(1)

1

2

2021-2023 outlook confirmed

S C O P E : G R O U P

(1) Current EBIT = current operating income before acquisition-related expenses; Organic: excluding FX and scope effects, based on 2020 current EBIT excl. earn-out reversal (i.e. €145 million)

35

INVESTOR [email protected]

https://invest.quadient.com/

NEXT EVENTS

• Q3 sales: 7 December 2021

QuadientX-series


Appendices


Accounts Receivables Automation

Accounts Receivable

Automation

Contact Free Parcel automation

Journey Analytics &

Orchestration

Accounts Payable

Automation

Personalized Omni-channel

Communications

Mail Preparation &

DeliveryYour

Organization

Quadient helps 400k organizations connect with customers, employees and stakeholders

RECEIVE COLLECT

ENGAGE

PAY

OPTIMIZE

SEND

CONNECT

Automate AR collections, predict payments and speed up payments through better visibility and control

Automate AP processes including validation, approval and payment to spend more time managing your cash

Generate compliant communications at scale including notifications, correspondence, emails, statements and policies, governed by approval workflows

Map and orchestrate customer and communication journeys while measuring business outcomes across different touchpoints

Quickly develop, test and deploy integrated online and mobile experiences aligned to the consumers' channel of choice

Smart and secure pick-up, drop-off solution that offers convenience, security, and peace of mind.

Intelligent Communication Automation Mail-Related Solutions Parcel Locker Solutions


8

6

3

9

-6

Parcel LockerSolutions

Q2 2020 Scope effect (1)

IntelligentCommunication

Management

Mail-RelatedSolutions

AdditionalOperations

-8

Currency effect (2)

Q2 2021

258

246

Major Operations+7.7%organic change

Group +11.1%

organic change

Q2 2021 revenue bridge

Q2 2021 revenue bridge (in €m, % of organic change vs. Q2 2020)

+17.3%

+4.0%+17.5%

+57.5%

-2.6%

-3.4%

(1) Scope effects: divestments of ProShip and Graphics in Australia; acquisitions of YayPay and Beanworks.(2) Average rates Q2 2021: EUR/USD = 1.20 and EUR/GBP = 0.86


Q2 2021 revenue summary

(1) The International segment includes the activities of Parcel Lockers Solutions in Japan and of Customer Experience Management (ICA) outside of North America and the Main European countries.(2) 2020 data was restated to take into account the product reclassification from Intelligent Communication Automation to Mail-Related Solutions

Parcel Locker

Solutions

Mail Related

Solutions

€232m+7.7%

€161m+4.0%

€19m+17.5%

Major Operations

€26m+57.5%

€258m+11.1%

Additional Operations

Total Group

North America

Main European countries

International

€127m+10.3%

€92m+3.6%

€13m+11.5%

Intelligent Communication

Automation

€52m+17.3%

SALES% of organic growth (1)

vs. Q2 2020


40

P&L

(in € millions) 31/07/2020 31/07/2021

Sales 485 504

Cost of sales (129) (137)

Gross margin 356 366

R&D expenses (25) (27)

Sales expenses (126) (128)

Administrative and general expenses (101) (91)

Maintenance and other expenses (45) (51)

Employee profit-sharing and share-based payments 2 0

Current operating income before acquisition-related expenses 61 70

Acquisition-related expenses (11) (6)

Current operating income 50 65

Optimization expenses and other operating income & expenses (0) (12)

Operating income 42 53

Financial income/(expense) (17) 3

Income before taxes 25 55

Income taxes (3) (10)

Share of results of associated companies 0 0

Net attributable income 21 45

Minority interests 1 1

Net income 22 46

41

Consolidated balance sheet (1/2)

41

Assets (in € millions)31/07/2020 31/01/2021 31/07/2021

Goodwill 1,040 1,026 1,106

Intangible fixed assets 128 128 120

Tangible fixed assets 213 207 188

Non-current financial assets 62 65 90

Other non-current receivables 3 3 4

Leasing & financing receivables 613 598 575

Deferred tax assets 18 17 20

Inventories 75 71 65

Trade receivables 187 231 182

Other current assets 104 100 108

Cash and cash equivalents 533 514 322

TOTAL 2,978 2,960 2,780

42

Consolidated balance sheet (2/2)

42

Liabilities (in € millions)31/07/2020 31/01/2021 31/07/2021

Shareholders’ equity 1,220 1,240 1,280

Non-current provisions 25 27 26

Non-current financial debt 822 821 734

Current financial debt 297 205 114

Other non-current debt 1 1 1

Deferred tax liabilities 144 148 146

Prepaid income 168 187 163

Other current liabilities 296 328 312

Financial instruments 4 3 4

TOTAL 2,978 2,960 2,780


322

Cash

163

81

187

75

4723

265 325

2021

346

2022 2023 2026

372

2024 2025

Financial debt structure and future cash flows as at 31 July 2021Improving leverage in spite of Beanwork’s acquisition

Closing rates: EUR/USD H1 2021 = 1.19 and FY 2020 = 1.21; EUR/GBP H1 2021 = 0.85 and FY 2020 = 0.88(1) Excluding ODIRNANE of €265 million, maturing 2022 – classified in equity under IFRS

575

183

758

End of H1 2021

Rental future cash flows

Leasing portfolio

Financial debt and maturities

Leasing portfolio and rental future cash flows

145 169125

8043

5159

37

5

20242021 202520232022

22

10

132026

195228

161

102

54 18

ODIRNANEBond 2.50% Bond 2.25% Schuldschein (2017, 2019, 2020)

265

18

738

6643

848

Total financial debtat the end of H1

2021

459

66526

End of H1 2021

IFRS 16 debt

Net financial debt excluding IFRS 16(1)

Gross debt due to financial institution

Other debts

44

All financial covenants easily met

(1) Net debt excluding leasing/EBITDA excluding leasing;(2) EBITDA/net cost of debt

Schuldschein 2019, Schuldschein 2020 and Revolving Credit Facility(excluding IFRS 16)

Schuldschein 2017(including IFRS 16)

Quadient level as at Jan. 31, 2021 Quadient level as at July 31, 2021 Quadient level as at Jan. 31, 2021 Quadient level as at July 31, 2021

Covenants on leasing operations

Maximum drawing: 90% of outstanding leasing portfolio

Intercompany net leasing debt standing at 75% of outstanding

leasing portfolio


leasing portfolio


leasing portfolio


leasing portfolio

Covenants on non leasing operations

Maximum leverage of 3.0 (1)

excluding leasing entities 0.0 0.4 0.4 0.7

Minimum equity: €600m €1,240m €1,280m €1,233m €1,273m

Default Rate < 5% ~1.7% ~1.8% ~1.7% ~1.8%

Minimum interest cover (2): 4.0 7.7 9.3 7.9 9.5


Restated 2020 figures by quarter

SALES

(in €m, unaudited figures) Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY 2020

Major Operations 215 222 437 229 254 919

Intelligence Communication Automation 42 44 87 47 51 183

Mail Related Solutions 158 161 318 161 173 653

Parcel Locker Solutions 15 17 32 21 30 83

Additional Operations 24 24 48 29 33 110

TOTAL GROUP 239 246 485 258 287 1,029

Sales

(in €m, unaudited figures) Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 FY 2020

Major Operations 215 222 437 229 254 919

North America 118 121 239 127 135 501

Main European Countries (1) 85 88 173 89 105 367

International (2) 12 12 25 12 14 51

Additional Operations 24 24 48 29 33 110

TOTAL GROUP 239 246 485 258 287 1,029

(1) Austria, Benelux, France, Germany, Ireland, Italy, Switzerland, United Kingdom.(2) The International segment includes the activities of Parcel Lockers Solutions in Japan and of Customer Experience Management (ICA) outside of North America and the Main European countries.

first-half 2021 results

Documents