Universal Registration Document 2021

OPERATING AND FINANCIAL REVIEW AND PROSPECTS RESULTS OF OPERATIONS FOR 2020 AND 2021

These adjustments, the reconciliation of which is detailed in the following table, amounted to an impact on EBIT from continuing operations of €28 million in 2021 compared to €168 million in 2020.

Technicolor defines “Free Cash Flow” as net operating cash generated from continuing activities plus proceeds from sales of property, plant and equipment (“PPE”) and intangible assets, minus purchases of PPE, purchases of intangible assets including capitalization of development costs.

2021

2020 (267)

Change (1)

(in million euros unless otherwise stated)

Profit (Loss) from continuing operations before tax and net finance costs/EBIT (a)

30

297

Total adjustments on EBIT (b)

28 37

168 100

(140)

Of which restructuring costs, net

(63) (70)

2

Of which net impairment losses on non-current operating assets

5

75 (8)

Of which other income/(expense)

(14)

(6)

Adjusted EBIT from continuing operations (a)+(b)

57

(99)

156

As a % of revenues

+2.0%

(3.3)%

211

260

(49)

Depreciation & amortization (2)

IT capacity use for rendering in Technicolor Creative Studios

0

2

(2)

Adjusted EBITDA from continuing operations

268

163

106

As a % of revenues

+9.3%

+5.4%

Change at current currency (1) Including reserves (risk, litigation, and warranty reserves) (2)

2021

2020 (267)

Change (1)

(in million euros unless otherwise indicated)

Profit (Loss) from continuing operations before tax and net finance costs

30

297

As a % of revenues

+1.0%

(8.9)%

991 bps

of which: Technicolor Creative Studios

27

(103)

129

As a % of revenues Connected Home As a % of revenues

+4.3%

(20.0)%

ns

11

(25)

35

+0.7%

(1.4)%

69 bps

DVD Services

0

(112)

112

As a % of revenues Corporate & Other

+0.0%

(15.8)%

ns

(8) 57

(28) (99)

20

Adjusted EBIT from continuing operations

156

As a % of revenues

+2.0%

(3.3)%

528 bps

of which: Technicolor Creative Studios

33

(87)

119

As a % of revenues Connected Home As a % of revenues

+5.2%

(16.9)%

ns

23

14

9

+1.5%

+0.8%

72 bps

DVD Services

19

(9)

28

As a % of revenues Corporate & Other

+2.7%

(1.3)%

399 bps

(18) 268

(17) 163

(0)

Adjusted EBITDA from continuing operations

106

As a % of revenues

+9.3%

+5.4%

384 bps

of which: Technicolor Creative Studios

113

18

94

As a % of revenues Connected Home As a % of revenues

+17.9%

+3.6%

ns

103

106

(3)

+6.7%

+6.0%

67 bps

43

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021