technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 12 - Discontinued operations and held for sale operations

12.1.1 RESULTS OF DISCONTINUED OPERATIONS

Year ended December 31, 2020

2019

(in million euros)

DISCONTINUED OPERATIONS Revenues

1

6

Cost of sales Gross margin

(1) (1) (1)

(3)

3

Selling and administrative expenses Research and development expenses

(7)

2

(11)

Restructuring Costs

(4)

-

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

(1)

(1) (9)

Other income (expenses)

(10) (15)

EARNING BEFORE INTEREST & TAX FROM DISCONTINUED OPERATIONS

(25)

Financial net income (expenses)

(1)

2

Income tax

1

1

NET INCOME (LOSS)

(15)

(22)

In 2019, the statement of operations includes 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.

12.1.2 NET CASH FROM DISCONTINUED OPERATIONS

December 31, 2020

2019

(in million euros)

Profit (loss) from discontinued activities

(15)

(22)

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

1 1

1 1

Impairment of assets Net change in provisions

(9)

7

Profit (loss) on asset disposals

-

(9)

Other non-cash items (including tax)

(1)

3 2 5

Changes in working capital and other assets and liabilities

5

Income tax paid

-

NET OPERATING CASH GENERATED FROM DISCONTINUED ACTIVITIES (I) NET INVESTING CASH USED IN DISCONTINUED ACTIVITIES (II) (1)

(18)

(11)

(3) (2) (2)

(20)

Repayments of borrowings

(2) (2)

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

(23)

(33)

it includes mainly payment of liabilities covered by Technicolor in connection with disposal of Patents Licensing and Research & Innovation businesses. (1)

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