Universal Registration Document 2021

OPERATING AND FINANCIAL REVIEW AND PROSPECTS LIQUIDITY AND CAPITAL RESOURCES

proceeds from sales of assets: in accordance with the Group’s debt • documentation, the proceeds from the sale of assets must be used in some cases to repay debt;

committed credit lines: at December 31, 2021 the Group had one of • credit line for an amount of €110 million secured by trade receivables the availability of which varies depending on the amount of receivables. For more information about the Group’s credit lines please refer to note 8.5.5 to the Group’s consolidated financial statements.

Cash flow 2.3.2

2021

2

2020

(in million euros)

Cash and cash equivalents at January 1

330

65

Net operating cash generated (used) in continuing activities (I) Net investing cash generated (used) in continuing activities (II) Net financing cash generated (used) in continuing activities (III) Net decrease in cash and cash equivalents (I+II+III+IV) Exchange gain (losses) on cash and cash equivalents CASH AND CASH EQUIVALENTS AT DECEMBER 31 Net cash used in discontinuing activities (IV)

14

(86) (133) 522 (23) 280 (16) 330

(67) (68) (29)

(149)

16

196

NET CASH GENERATED (USED) IN OPERATING ACTIVITIES Continuing operations Net loss from continuing operations amounted to €121 million in 2021

€(86) million used in 2020. The variations between 2021 and 2020

compared to a loss of €196 million in 2020. Net operating cash from are analyzed in the table below: continuing operations amounted to €14 million in 2021, compared to

2021 (121)

2020 (196)

(in million euros)

Profit (Loss) from continuing operations

Summary adjustments to reconcile profit from continuing operations to cash generated from continuing operations: non-cash depreciation, amortization, and impairment of assets • Profit from continuing operations before depreciation, amortization, and impairment of assets

222 101 (98)

350 154 (84) 100 (158) (38) (26) (48) (12) (86)

Cash payments of the period related to provisions Non-cash P&L impact of the provisions of the period

44

Net gain on financial restructuring

-

Other various adjustments

45 93

Operating cash generated (used) in continuing operations

Net interest paid and received

(64) (16)

Income tax paid

NET OPERATING CASH GENERATED (USED) IN CONTINUING ACTIVITIES (I)

14

NET CASH USED IN INVESTING ACTIVITIES Continuing operations Net investing cash used in continuing activities was €67 million in 2021 compared to €133 million in 2020, and included: net capital expenditures, which amounted to €95 million in 2021 • (compared to €104 million in 2020), due to cash expended relating

to tangible and intangible capital expenditures. In 2021, net capital expenditure amounted to €26 million in the Technicolor Creative Studios segment and was mainly related to intangible asset spending and production capacity increase, €60 million in the Connected Home segment, mainly due to capitalized R&D projects and new product introduction tools and €9 million in the DVD Services segment, mainly from patents and capacity maintenance;

45

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