technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 1 - General information

Connected Home The Covid-19 impacts on the Connected Home supply chain were related to the disruption of the manufacturing, also provoking shortages of components and disruption in logistics in China and then in south-east Asia in the first quarter of the year. The Covid-19 impact was later limited for its Asian-based manufacturing and supply chain but was still impacting capacity in Latin America for manufacturing and back-end operations. The lockdown measures have exposed consumers to the need of quality broadband service and WIFI quality in the home for remote working and digital entertainment. This situation has been making the demand for broadband gateways very resilient during this period. U.S. market has shown an increase of demand and a very low churn, and due to its market position the Group has been experiencing a significant increase of demand. Latin-American countries are suffering, in addition to the consequences of Covid-19, a significant currency crisis due to the drastic oil price decline. This has affected the plans of all companies in the region, including the service providers who adjusted their demand accordingly. Connected Home is operational due to the early adoption of a remote work model that successfully moved half of all employees off site to ensure key engineering facilities remain safe and open.

DVD Services theatrical new release activity was very limited in 2020 from March • onwards due to the Covid-19 outbreak, with many key title release dates getting pushed out into 2021, which in most cases results in the home entertainment release being delayed as well, directly impacting DVD Services revenue; impact of the stay-at-home orders varied by region ( i.e. by country, • state, and city) and in timing/duration. The level of retailer shutdowns varied by country/region, but where retailers were open, catalog sales were relatively robust. On-line sales were strong after a brief slowdown in demand as e-tailers temporarily adjusted their supply chain for increased activity for essentials. Most major retailers have re-opened, but the level of sales activity remains below normal. Without new release content, some retailers are increasing allocation of shelf space for DVD catalog/library content, which helped support higher than expected DVD replication volumes in 2020; some production facilities experienced temporary staffing shortages, • but the overall impact to operations was low. The specific timing and extent of the reopening of movie theaters will impact the level of new release activity on disc. DVD Services have accelerated certain aspects of its future restructuring plans in an effort to adapt to these impacts. Despite these efforts and the planned profitability of the division, a further impairment was booked as a result of revised assumptions in the impairment test performed in June 2020, resulting in a €66 million loss. At December 31, 2020, there is no evidence of a further impairment.

Accounting policies

1.2

GRI [102-48] [102-49]

BASIS FOR PREPARATION 1.2.1 These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) effective as of December 31, 2020 and adopted by the European Union as of March 11, 2021. The standards approved by the European Union are available on the following web site: https://ec.europa.eu/info/publications/eu-accounting-rules_en Technicolor financial statements are presented in euro and has been rounded to the nearest million. This may in certain circumstances lead to non-material differences so that the sum of the figures equals the sub-totals that appear in the tables.

The consolidated financial statements were approved by the Board of Directors of Technicolor SA on March 11, 2021. According to French law, the consolidated financial statements will be considered as definitive when approved by the Company’s shareholders at the Ordinary Shareholders’ Meeting, which should take place in May 12, 2021. The accounting policies applied by the Group are consistent with those followed last year except for standards, amendments and interpretations which have been applied for the first time in 2019 (see note 1.2.2.1. hereunder).

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020