technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS INFORMATION ON OPERATIONS

STATEMENT OF OPERATIONS

Year ended December 31, 2018

Production Services

DVD Services

Connected Home

Corporate & Other (2)

Total

(in million euros)

Revenues

785

942

2,218

44

3,988

Intersegment sales

-

-

-

-

-

Earnings before Interest & Tax (EBIT) from continuing operations

16

(88)

(39)

(8)

(119)

Of which: Amortization of purchase accounting items

(8) (1)

(9)

(32)

- -

(50) (81) (62) (24)

Net impairment losses on non-current operating assets

(78) (10)

(2)

Restructuring costs

(17)

(34)

(2) (7)

Other income (expenses)

(9)

(5) 14

(3) 33

Adjusted EBITA

51

-

98

Of which: Depreciation & amortization

(61)

(55)

(65)

(3)

(184)

Other non-cash items (1)

2

1

11

2 2

16

Adjusted EBITDA

110

68

87

266

Statements of financial position items Segment assets (3)

575

771

1,530

269

3,145

Unallocated assets

614

TOTAL CONSOLIDATED ASSETS

3,759 2,181 1,306 3,487

Segment liabilities Unallocated liabilities

277

322

1,190

392

TOTAL CONSOLIDATED LIABILITIES

Other information Net capital expenditures

(50)

(31) 142

(79)

(2)

(162)

Capital employed (3)

271

13

190

617

Mainly variation of provisions for risks, litigations and warranties. (1) Following the strategic transaction relating to the Patent Licensing business, the Group transferred the divisions “Trademark & Technology Licensing” and “Technology Research (2) & Innovation”, formerly reported as part of Technology segment, to the Corporate & Other segment. For comparison purpose, we reclassified Technicolor trademark from Entertainment Services to Corporate & Other. (3)

The following comments are applicable to the two tables above: the caption “Adjusted EBITDA” corresponds to the profit (loss) from • continuing operations before tax and net financial income (expense), net of other income (expense), depreciation and amortization (including impact of provision for risks, litigation and warranties); “Adjusted EBITDA” at budget rate (EUR = USD 1.15) and without IFRS 16 impact amounts to €244 million; the caption “Adjusted EBITA” corresponds to the profit (loss) from • continuing operations before tax and net financial income (expense), net of other income (expense) and amortization of purchase accounting items; the captions “Total segment assets” and “Total segment liabilities” • include all operating assets and liabilities used by a segment; the caption “Unallocated assets” includes mainly financial assets, • deferred and income tax assets, cash and cash equivalents and assets classified as held for sale;

the caption “Unallocated liabilities” includes mainly the financial • debt, deferred and income tax liabilities and liabilities classified as held for sale; the caption “Net capital expenditures” includes cash used related to • tangible and intangible capital expenditures, net of cash received from tangible and intangible asset disposals; the caption “Capital employed” is defined as being the aggregate of • both net tangible and intangible assets (excluding goodwill), operating working capital and other current assets and liabilities (except for provisions including those related to employee benefits, income tax, payables on acquisition of companies and payables to suppliers of PPE and intangible assets).

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 214