technicolor - 2019 Universal registration document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS SUMMARY OF RESULTS

Under IFRS 16, most operating leases are now treated as financial leases. As a consequence, operating lease expense is cancelled and replaced by an amortization expense and an interest expense. Under the modified retrospective method, 2018 Profit & Loss account is not adjusted. Figures in this Chapter are therefore presented excluding IFRS 16 in 2019 only for comparison purposes. SUMMARY OF RESULTS 2.1 GRI [103-3 Economic performance] [201-1]

Revenues from continuing operations totalled €3,800 million in 2019, down 4.7% at current currency and down 7.3% at constant currency compared to 2018. For more information, please refer to section 2.2.1: “Analysis of revenues from continuing operations” of this Chapter. Adjusted EBITDA from continuing operations reached €246 million in 2019, down 7.5% at current currency and down 9.7% at constant currency compared to 2018, a decline mainly attributable to the lower revenue of DVD Services and Connected Home segments, partly offset by Production Services better performance. The Adjusted EBITDA margin amounted to 6.5%, down by 20 bps year-on-year. For more information, please refer to sections 2.2.2: “Analysis of adjusted EBITDA and adjusted EBITA” and 2.2.9 “Adjusted indicators” of this Chapter. Loss from continuing operations before tax and net finance costs was €127 million in 2019 compared to a loss of €119 million in 2018. For more information, please refer to section 2.2.3: “Analysis of operating expenses and profit (loss) from continuing operations before tax and net financial expense” of this Chapter.

The Group’s net financial result was an expense of €64 million in 2019 compared to an expense of €51 million in 2018. For more information, please refer to section 2.2.4: “Net financial expense” of this Chapter. The Group’s total income tax charge was €4 million in 2019 compared to a charge of €54 million in 2018. For more information, please refer to section 2.2.5: “Income tax” of this Chapter. Loss from continuing operations was €195 million in 2019 compared to a loss of €224 million in 2018. For more information, please refer to section 2.2.6: “Profit (loss) from continuing operations” of this Chapter. The result from discontinued operations was a loss of €21 million in 2019 compared to a profit of €157 million in 2018. For more information, please refer to section 2.2.7: “Profit (loss) from discontinued operations” of this Chapter.

The Group’s consolidated net income was a loss of €217 million in 2019 compared to a loss of €67 million in 2018. For more information, please refer to section 2.2.8: “Net income (loss) of the Group” of this Chapter. RESULTS OF OPERATIONS FOR 2018 AND 2019 2.2 GRI [103-3 Economic performance] [201-1]

The revenues, Adjusted EBITDA, operating expenses and profit (loss) from continuing operations before tax and net financial expense for the years 2019 and 2018 are presented below for each of the Group’s operating segments – Production Services, DVD Services, Connected Home and Corporate & Other.

The Group’s results are presented in accordance with IFRS 5. Consequently, the contributions of discontinued operations are disclosed on one line in the consolidated statements of operations, named “Net profit (loss) from discontinued operations” and are presented separately under section 2.2.7: “Profit (Loss) from Discontinued Operations” of this Chapter.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019