technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 2 - Scope of consolidation

ASSOCIATES

accordance with IFRS 11. The goodwill arising on these entities is included in the carrying value of the investment. JOINT VENTURES A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control. Investments in joint ventures are consolidated under the equity method in accordance with IFRS 11 since January 1, 2012.

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policies decisions of the investee without having either control or joint control over those policies. Investments in associates are accounted for under the equity method in

the years ended December 31, 2020 and 2019, Technicolor’s consolidated financial statements include the accounts of all investments in subsidiaries, jointly controlled entities and associates. Their location is summarized below and main entities are listed in note 15. Number of companies as of December 31, 2020 France Europe (exc. France) U.S. Other Total Parent company and consolidated subsidiaries 17 33 19 29 98 Companies accounted for under the equity method 1 - 1 1 3 TOTAL 18 33 20 30 101

Number of companies as of December 31, 2019

Europe (exc. France)

France

U.S.

Other

Total

Parent company and consolidated subsidiaries Companies accounted for under the equity method

15

39

19

30

103

1

-

1

3

5

TOTAL

16

39

20

33

108

Change in the scope of consolidation of 2020

2.2

GRI [102-10] [102-49]

There was no major change in the scope of consolidation in 2020. The set-up of the fiducies-sûretés does not impact the scope of consolidation; a description of the fiducies-sûretés including the control analysis is available in 8.3.2. Change in the scope of consolidation 2019 2.3 GRI [102-10] [102-49]

6

RESEARCH AND INNOVATION ACTIVITY On May 31, 2019, the Group concluded the sale to Interdigital of its Research & Innovation business.

the transaction, Technicolor also renounces to part of the potential cash-flows from the earn-out clause of the Patent Licensing disposal. Finally, Technicolor commits to funding part of the research led by Interdigital until 2022. As patentable innovation ownership will be kept

Compensation received amounted to one euro; in addition to assets and by Interdigital, this contract will be considered as negative compensation. liabilities transferred, the transaction ends the research agreement by Research and Innovation activity is presented in discontinued activities. which Interdigital benefited from R&I research. As a part of (in million euros) Total compensation (21) Net liabilities transferred 29 CAPITAL GAIN IN DISCONTINUED ACTIVITIES 8

No other significant acquisition or divestiture occurred during 2019.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020