technicolor - 2019 Universal registration document

PRESENTATION OF THE GROUP OVERVIEW AND HISTORICAL BACKGROUND

Historical background 1.1.2 GRI [102-10] [102-15] [102-49]

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REFOCUSING OUR BUSINESSES & STRATEGIC ACQUISITIONS

FINANCING In 2019 the Group continued to invest in additional capacity for its Production Services Division, and in the restructuring of Connected Home. These investments were made mainly by using available cash and no significant financing transactions were undertaken in 2019. The Group’s current debt financing structure consists primarily of its term loans for an amount of €980 million (IFRS amount) at December 31, 2019 issued in 2016 and 2017, as well as lease liabilities of €312 million. On February 13, 2020 the Group announced a comprehensive financing plan including: a €300 million rights issue; • an 18-month extension of the RCF and the Wells Fargo facility; • an additional $110 million short-term facility. • The successful completion of these activities will significantly strengthen the Group’s financing structure. For more information about the refinancing and the Group’s debt covenants, please refer to Chapter 2.3: “Liquidity and Capital resources” and to Chapter 6: “Financial Statements”, section 6.2, note 1.1 “Main events of the year” to the consolidated financial statements.

In the second half of 2015 Technicolor completed two acquisitions: Cisco Connected Devices, the Customer Premise Equipment business of Cisco, was integrated in Technicolor’s Connected Home Division. Technicolor’s Production Services Division acquired London-based The Mill. In addition, the Group also won additional large studio customers (Fox and Lionsgate) in DVD Services and acquired the North American assets of Cinram to onboard these customers immediately. In 2018, Technicolor announced an outsourcing agreement from Sony DADC to Technicolor in North America and Australia that started the second quarter of 2018, and Connected Home launched a three-year transformation targeting market share gains while improving profitability in order to absorb potential new headwinds in the market. In the first quarter of 2019, Technicolor announced it had received a binding offer and entered into exclusive negotiations with InterDigital for the sale of its R&I activity; the deal was closed on May 31, 2019. InterDigital had acquired Technicolor’s Patent Licensing business in 2018.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019