Universal Registration Document 2021

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS LIQUIDITY AND CAPITAL RESOURCES

2021

2020

Change (1)

(in million euros unless otherwise indicated)

DVD Services

67

53

14

As a % of revenues Corporate & Other

+9.5%

+7.5%

201 bps

(14)

(14)

-

Change at current currency. (1)

2021

2020

(in million euros)

Adjusted EBITDA from continuing operations Changes in working capital and other assets and liabilities*

268 (81) (26) (70) (64)

163

(103)

Pension cash usage of the period

(28) (46) (51)

Restructuring provisions – cash usage of the period

Interest paid

Interest received Income tax paid

-

3

(16)

(12) (11)

Other items

2

Net operating cash generated from continuing activities

14

(86) (33)

Purchase of property, plant and equipment (PPE) Proceeds from sale of PPE and intangible assets

(45)

2

-

Purchase of intangible assets including capitalization of development costs

(52) (18)

(71) (18)

Net operating cash generated from discontinuing operations

Free Cash Flow

(100)

(207)

Including IT capacity use for rendering in Technicolor Creative Studios of €(0) million in 2021 and €(2) million in 2020. *

LIQUIDITY AND CAPITAL RESOURCES 2.3 [103-2 Economic performance] [201-1]

This section should be read in conjunction with Chapter 3: “Risks, Litigation and Controls”, section 3.1.1: “Global market and industry risks” of this Universal Registration Document and note 8 to the consolidated financial statements. Overview 2.3.1 PRINCIPAL CASH REQUIREMENTS 2.3.1.1

repayment or refinancing of debt: at each debt maturity date, • the Group must either repay or refinance the maturing amounts; dividends: in 2021 no dividend was paid, but the Group may have to • fund future dividends. KEY LIQUIDITY RESOURCES 2.3.1.2 To meet its cash requirements, the Group’s main sources of liquidity consist of: cash and cash equivalents: the amount of cash and cash equivalents • was €196 million at December 31, 2021. In addition, €55 million in cash collateral and security deposits was outstanding at December 31, 2021 to secure credit facilities and other Group obligations; cash generated from operating activities ; •

The main cash requirements of the Group arise from the following: working capital requirements from continuing operations: • the working capital requirements of the Group are based in particular on the level of inventories, receivables and payables; losses relating to discontinued operations: the Group must also fund • the losses and cash requirements, if any, of its discontinued operations. For more information on the risks associated with the sale of these activities please refer to Chapter 3: “Risks, litigation and controls” section 3.1: “Risk factors” of this Universal Registration Document; capital expenditures: the Group must regularly invest in capital • equipment to operate its businesses;

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021