technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS

DISCONTINUED OPERATIONS AND HELD FOR SALE OPERATIONS

12.1.1

RESULTS OF DISCONTINUED OPERATIONS

Year ended December 31, 2019

2018

(in million euros)

DISCONTINUED OPERATIONS Revenues

6

18

Cost of sales Gross margin

(3)

(15)

3

3

Selling and administrative expenses Research and development expenses

(7)

(14) (20)

(11) (0) (1) (9)

Restructuring Costs

(1)

Net impairment gains (losses) on non-current operating assets

(4)

Other income (expenses)

205 169

EARNING BEFORE INTEREST & TAX FROM DISCONTINUED OPERATIONS

(25)

2

(1)

Financial net income (expenses)

Income tax

1

(11) 157

NET INCOME (LOSS)

(22)

In 2019, the statements of operations incudes 5 months of the activity Research & Innovation. The gain on sale of the Research & Innovation business, which amounts to €8 million, is presented in Other income.

In 2018, the statement of operations includes 7 months of the activity of Patent Licensing business and 12 months of the activity of Research& Innovation Activity. The gain on sale of the Patent Licensing business, which amounts to €210 million, is presented in Other income.

12.1.2

NET CASH FROM DISCONTINUED OPERATIONS

December 31, 2019

2018

(in million euros)

Profit (loss) from discontinued activities

(22)

157

Summary adjustments to reconcile profit from discontinued activities to cash generated from discontinued operations: Depreciation and amortization

1 1

1

Impairment of assets

4

Net change in provisions

7

(15)

Profit (loss) on asset disposals (1) Other non-cash items (including tax)

(9)

(210)

3 2 5

10 50 (1) (4) 115 (6) (6) 105

Changes in working capital and other assets and liabilities

Income tax paid

NET OPERATING CASH GENERATED FROM DISCONTINUED ACTIVITIES (I) NET INVESTING CASH USED IN DISCONTINUED ACTIVITIES (II) (2)

(11)

(20)

(2) (2)

Repayments of borrowings

NET FINANCING CASH USED IN DISCONTINUED ACTIVITIES (III) NET CASH FROM DISCONTINUED ACTIVITIES (I+II+III)

(33)

In 2018, it includes the gain on sale of Patents Licensing business for €210 million. (1) In 2019, it includes mainly payment of liablities covered by Technicolor in connection with disposal of Patents Licensing and Research & Innovation businesses. (2) In 2018, it includes the cash impact from the sale of Patents Licensing Business for €115 million.

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