technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 3 - Information on operations

Revenue & geographical information

3.2

GRI [102-07]

CONNECTED HOME SEGMENT Connected Home segment offers a complete portfolio of Broadband and Video Customer Premise Equipment (“CPE”) and develops software solutions. The contracts signed have no multiple performance obligations and there is no variable consideration over time. Software inside modems or digital Set-Top Box are specific to each customer and are not marketed separately. Revenue is then Our DVD Services Division provides turnkey integrated supply-chain solutions including mastering, replication, packaging, direct-to-retail distribution through two separate contracts (a replication contract and a distribution contract). In case of variable price over the contract term, the revenue is already adjusted to anticipate the probable discount. In case of a contract advance paid to the customer, the consideration payable to the customer is already accounted for as a reduction of the transaction price and amortized based on the units of production. Revenues is recognized upon the rendering of services. recognized over at goods delivery. DVD SERVICES SEGMENT

Under IFRS 15 revenue is recognized to reflect the transfer of promised goods and services to customers for amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods and services. When either the Group or the customer as party to a contract has performed, the contract is presented in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the goods delivered or services rendered and the customer’s payment. Any unconditional rights to Our Production Services Division provides a full set of award-wining services around Visual Effects (“VFX”), Animation and Games activities, as well Postproduction Services. The services are generally rendered over a short period except for VFX services and Animation where services may be provided over a longer period. Our contracts stipulate that we have a right to payment for performance completed to date in case of a termination by the customer, and no milestones are used for measuring the progress. Revenue is recognized upon the rendering of services. consideration is presented separately as a receivable. PRODUCTION SERVICES SEGMENT

In respect of IFRS 15 – Revenue from contracts with customers, continuing revenue per method of recognition, contract assets and liabilities are disaggregated in the following way:

December 31,

Connected Home

DVD Services

Corporate & Other

December 31, 2019

2020 Production Services

(in million euros)

Revenue recognized at delivery of goods or services

2,866

396

1,764

706

- -

3,329

Revenue recognized over time (1)

117 23

117

- -

- -

429

Revenue from licenses (2)

-

23 23

43

REVENUE OF CONTINUING OPERATIONS

3,006

513

1,764

706

3,800

Revenue recognized over time are related to certain VFX and animation production services provided over a long period. (1) Trademark licensing and remaining patent licensing revenue are recognized based on volumes reported or cash received depending on information available. (2)

6

INFORMATION ON MAIN CLIENTS As of December 31, 2020, one external customer represents 23% of the Group’s consolidated revenues (€705 million), and one external customer represents more than 5% (€139 million). As of December 31, 2019, one external customer represents 18% of the Group’s consolidated revenues (€682 million), one external customer represents more than 10% (€391 million) and one external customer represents more than 5% (€185 million).

Relating to performance obligations still to be satisfied, only VFX activities included in Productions Services business divisions are part of contracts that have an original expected duration of one year or more. For these services, the performance obligations still to be performed under contract in force at the end of the reporting period amount to €186 million as of December 31, 2020; it will be recognized mostly in 2021.

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