Unifiedpost : Annual_Report 2024 ENG

Unifiedpost Group

Annual report 2023

Annual Report 2023

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Table of content

Message of the CEO & Chairman	6
1. Management Report	8
	1.1	Our mission		9
1.2	Unifiedpost at glance	11
		1.2.1	Simplifying business operations through cloud-based solutions	11
		1.2.2	Key figures	12
1.3	Market analysis	15
		1.3.1	Market overview	15
		1.3.2	Competitive analysis	18
		1.3.3	Customer segmentation	19
1.4	Regulatory environment	20
		1.4.1	Regulatory landscape	20
		1.4.2	Impact of "VAT in the Digital Age"	21
		1.4.3	Compliance and adaptation	21
	1.5 Business strategy and goals	22
		1.5.1	Corporate objectives	22
		1.5.2	Growth strategy	24
		1.5.3	Product and service portfolio	25
				1.5.3.1 Digital processing services - digital platform	25
				1.5.3.2 Digital processing services - hybrid services	28
				1.5.3.3 Postage & Parcel optimisation services	28
				1.5.3.4 Transforming Government E-Invoicing (eFaktura)	29
		1.5.4	Technological developments	30
1.6	Financial highlights	31
		1.6.1	Key financial results	31
		1.6.2	Activity report - UPG's Milestones in 2023	32
		1.6.3	Highlights from the financial report	33
				1.6.3.1	Digital processing services	33
				1.6.3.2 Postage & Parcel optimisation	34
				1.6.3.3 Result for the period	34
				1.6.3.4	Goodwill	35
				1.6.3.5	Intangible assets	35
				1.6.3.6	Capital Increases	36
				1.6.3.7	Equity evolution	36
				1.6.3.8	Cash flow evolution	36
				1.6.3.9	Financing	37
		1.6.4	Information about circumstances that could adversely affect the development	37
		1.6.5	Research and development	38
		1.6.6	Important events after the balance sheet date	39

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	1.6.7 Statement by senior management in accordance with royal decree of 14 November 2007	40
1.7 Financial objectives	40

2.ESG Realisations and Objectives	41
	2.1	Supporting sustainability with Unifiedpost's digital solutions	43
	2.2	Our ESG approach and Unifiedpost's core values	44
	2.3	Our core pillars (Unifiedpost's ESG framework)	46
2.4	Governance of ESG	47
		2.4.1	The ESG Committee	47
2.5	Our 2023 ESG KPIs and 2022 - 2026 Roadmap	48
		2.5.1	Environmental	48
			2.5.1.1	Risk management	49
			2.5.1.2	Guidelines and policies	49
			2.5.1.3	Measures and progress	49
		2.5.2	Social		52
			2.5.2.1	Workforce overview - Key figures	53
			2.5.2.2	Diversity and inclusion	57
			2.5.2.3	Career management and training	59
			2.5.2.4	Employee engagement survey 2023	60
			2.5.2.5	Remuneration	60
			2.5.2.6	Health & Safety	61
			2.5.2.7	Incidents	62
			2.5.2.8	Social Responsibility and charity activity	62
			2.5.2.9	Roadmap 2024-2026	62
		2.5.3	Governance	63
			2.5.3.1	Governance	64
			2.5.3.2	Impact, risk and opportunity management	65
			2.5.3.3	Business conduct, policies and corporate culture	65
			2.5.3.4	Management of relationships with suppliers	67
			2.5.3.5	Anti-Corruption and anti-bribery	68
			2.5.3.6	Payment practices	69
2.6	EU Taxonomy Reporting	70
		2.6.1	Introduction	70
		2.6.2	Procedure for assessing eligibility for the European Taxonomy for the financial year 2023	70
			2.6.2.1	Eligibility of Unifiedpost Group's activities	70
			2.6.2.2	KPIs of activities eligible for the European Taxonomy	71
		2.6.3	Unifiedpost Group's Business Alignment Process for 2023	72

3.Corporate Governance	81
3.1 Corporate Governance Statement	82
	3.1.1	Governance Model & Principles	82
	3.1.2	Board of Directors	83
			3.1.2.1	Composition of the Board of Directors	83
			3.1.2.2	About the Board of Directors	86
3.1.3	Committees	87
			3.1.3.1	Audit Committee	87
			3.1.3.2	Remuneration and Nomination Committee	88

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	3.1.4	Management Committee	89
		3.1.4.1	Composition of the Management Committee	89
	3.1.5	Evaluation of the Board and its Committees	90
	3.1.6	Annual General Meeting	90
3.2	Remuneration Report for financial year 2023	91
	3.2.1	General introduction	91
		3.2.1.1	Remuneration for the Members of the Board	91
		3.2.1.2	Remuneration for the Management Committee	93
		3.2.1.3	Evolution over time	97
	3.2.2	Severance Clauses	99
	3.2.3	Adjustments and claw-back	99
	3.2.4	Annual change in remuneration	99
	3.2.5	Impact votes casted during the previous General Meeting	100
3.3	Internal Control & Risk Management	101
	3.3.1	Our overall approach to Risk Management	101
	3.3.2	Top risk themes and Unifiedpost's response	101
		3.3.2.1	Strategic risks	102
		3.3.2.2	Financial risks	104
		3.3.2.3	Operational risks	106
		3.3.2.4	Compliance risks	110
	3.3.3	Financial risk Management	111
		3.3.3.1	Credit risk	111
		3.3.3.2	Market risk	111
		3.3.3.3	Liquidity risk	111
		3.3.3.4	Capital risk management	111
	3.3.4	Internal controls on financial reporting	112
3.4	Market abuse	113
3.5	Conflict of interest	113
3.6	Share Capital, shares & shareholders	114
	3.6.1	Shareholder structure	114
	3.6.2	Shareholders	114
		3.6.2.1	Major shareholders of Unifiedpost	114
		3.6.2.2	Agreement between Unifiedpost's shareholders	114
	3.6.3	Authorised capital	114
		3.6.3.1	Dividend policy	115
		3.6.3.2	Holders of subscription rights	115
	3.6.4	Anti-takeover provisions	115
	3.6.5	Major agreement to which Unifiedpost is a party that come into force, undergo amendments or expires in
		case of a change of control over Unifiedpost after a public takeover bid	115
3.7	Gender diversity	116
3.8	Relevant information in the event of a takeover bid	116
	3.8.1	Capital structure	116
	3.8.2	Restrictions on transfers of securities	116
	3.8.3	Holders of securities with special control rights	116

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3.8.4	Restriction on voting rights	116
	3.8.5	Shareholder agreements	116
	3.8.6	Competence of the Board of Directors regarding buy back of shares or emission of shares	117
	3.8.7	Major agreement to which Unifiedpost is a party that come into force, undergo amendments or expires in
		case of a change of control over Unifiedpost after a public takeover bid	117
3.8.8	Agreements with directors or employees that include compensation in case of dismissal or resignation	117
		following a public takeover bid
3.9 Consultation of Unifiedpost's documents	118
3.10 Statutory auditor	118

4.Financial Statements	119
	4.1	Consolidated Financial Statements	120
4.2	Statutory financial Statements	200
		4.2.1	Income Statement	200
			4.2.2	Balance sheet	201

5.Other	202
	5.1	Glossary	203
	5.2	APMs	206

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Message of the CEO & Chairman

We, as Chairman and CEO of Unifiedpost Group, are proud to present the Annual Report for 2023. Despite the complex market dynamics and the regulatory shifts we navigated this year, our Group has remained steadfast in its mission, continuing to deliver double-digit growth and expanding our market presence with innovative solutions and services.

Our journey since the IPO has been transformative, guided by the revolution in business operations due to increased digitalisation and regulatory requirements. The market is embracing digital solutions, primarily due to regulations across Europe and globally in areas such as e-invoicing,e-reporting,e-payments, and e-identity. Our response to this shift has been proactive and robust, ensuring Unifiedpost remains at the forefront of this digital evolution.

In 2023, we focused on consolidating our offerings, creating a comprehensive platform that integrates these services to meet the varied needs of all businesses. We are proud to say that our platform, developed with a modular approach and capable of full self-service, is now a benchmark in the industry. Our commitment to innovation has been unwavering, as evidenced by the successful deployment of our solutions in markets like Serbia, where we quickly onboarded businesses onto a digital platform, showcasing our ability to turn compliance into opportunity.

• We, at Unifiedpost Group, have successfully turned regulatory
  compliance into a strategic
  opportunity, enabling businesses
  of all sizes to embrace digital transformation with confidence and efficiency."

Hans Leybaert

CEO and founder of Unifiedpost

As we navigate the complexities of diverse regulations and the unifying directives like ViDA, we have proven our agility and the robustness of our solutions. The delay in regulatory implementation in countries like France and Poland has not deterred us but rather provided an expanded timeline to refine our offerings and prepare for the surge in demand that will follow.

Our financial results reflect the successful execution of our strategy, and we remain on track to become free cash flow positive as projected. We have achieved this through diligent cost control measures and a relentless focus on sustainable growth.

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Stefan Yee

Chairman of Unifiedpost

"Unifiedpost Group's scalable platform and comprehensive services are the future of business operations, offering unmatched integration of e-invoicing,e-payments, and e-reporting to support businesses as they

navigate the evolving digital landscape."

We are also excited about the future, as we look forward to the mandatory B2B e-invoicing in Belgium and other EU countries, which will open up significant opportunities for Unifiedpost Group. Our platform is not just a tool for compliance but a gateway for businesses to enter the digital age with confidence, supported by our suite of services that span from e-invoicing to embedded payments and financing.

To conclude, we want to express our sincere gratitude to our employees, whose expertise and dedication have been the cornerstone of our success. To our customers and partners, your trust and collaboration have been invaluable. Together, we have not only achieved but also surpassed our goals, laying a solid foundation for future growth.

As we look to the future, we are energised by the opportunities that lie ahead. We are committed to leveraging our technology and expertise to support businesses

through the forthcoming regulatory changes and beyond. Together, we will continue to shape the future of digital business operations and create value for all our stakeholders.

Thank you for your continued support.

Hans Leybaert	Stefan Yee
CEO	Chairman

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1. Management Report

1.1 Our mission

Our vision: simplifying buying and selling

Imagine a world where business transactions seamlessly cross borders, invoice payments are effortlessly and tax compliance is straightforward. This is the world we envision - one where businesses can flourish without the burden of complexity.

At Unifiedpost, we make business easy and smart by offering enterprises tools to build digital connections with their customers, suppliers and other stakeholders. By doing so, we help our customers become more efficient, cost effective and compliant.

In today's globalised world, where businesses operate across borders, we strive to facilitate smooth business transactions. Our aim is to support the economy by enabling businesses to conduct transactions with ease while allowing companies to comply with law and regulations.

The compliance triangle: a structured relationship

In today's business environment, governments impose laws to protect the interests of consumers and businesses. This creates a clear system where sellers, buyers, and governments work together to follow laws and rules. This system includes sharing details of transactions and making sure that tax and legal duties are met. It emphasises how crucial it is to have accurate and timely information within this triangle.

"The ViDa report issued by the

European commission sets the tone and obliges the Member States to implement e-invoicing in their local legislation. This evolution is a key driver for our business model and is at same time a challenge for all European governments to motivate and oblige over 25 million companies to implement the e-invoicing tools. Within this market Unifiedpost aims to become a leading player."

Hans Leybaert

CEO and founder of Unifiedpost

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Our strategy focuses on the compliance triangle

Our strategy centres on the compliance triangle, where we integrate e-invoicing,e-payments,e-reporting and e-identity services into a single, user-friendly platform.

E-invoicing:

1 the foundation of seamless transactions

E-invoicing, short for electronic invoicing, refers to the digital creation, transmission, and receipt of invoices in data format, eliminating the need for paper or PDF invoices. E-invoicing serves as the cornerstone of our vision, facilitating seamless and compliant transaction flows. We support both B2B (business-to-business), B2C (business-to-consumer), and B2G (business-to-government) transactions, both domestically and across borders.

E-payments:connecting

2 e-invoices and payments for ecient cash flow

Unifiedpost offers a comprehensive approach to invoice payments and streamlining cash flows. As a licensed payment institute, we have developed our own comprehensive payment solution on our platform, creating a unified and ecient system. This integrated approach ensures secure payment processing while aligning with tax and regulatory frameworks. Furthermore, we meet tax authorities' requests for timely payment status updates.

E-reporting:

• fostering transparency and compliance

E-reporting simplifies the process of reporting sales and purchase transactions while ensuring compliance with various tax and regulatory frameworks, all of which is reported to the relevant government and tax authorities. As the adoption of real-time reporting becomes a "must-have", we seamlessly adjust to meet evolving requirements.

4	E-identity:
building trust in the digital era

In the digital world, verifying identity is paramount. It builds trust, prevents fraud and adds an extra layer of security to electronic transactions. Identity verification methods confirm individuals' online identities, ensuring that the person claiming to be someone is indeed who they say they are. Moreover, our identity verification mechanisms establish a secure link between the identified individual and the company they represent, enhancing the overall security of electronic transactions.

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