technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 13 - Subsequent events

Assets & liabilities held for sale 12.2 In accordance with IFRS 5, if the Group decides to dispose of an asset (or disposal group) it should be classified as held for sale if: the asset or group of assets is available for immediate sale • in its present condition subject only to terms that are usual and customary for sales of such assets; it is highly likely to be sold within one year. • Consequently, this asset (or disposal group) is shown separately as “Assets held for sale” on the balance sheet. The liabilities related to this assets (or disposal group) are also shown separately on the liabilities side of the balance sheet.

For the Group, only assets meeting the above criteria and subject to a formal disposal decision at the appropriate management level are classified as assets held for sales. The accounting consequences are as follows: the asset (or disposal group) held for sale is measured at the lower • of carrying amount and fair value less cost to sell; the asset stops being depreciated with effect from the date • of transfer.

December 31, 2020 December 31, 2019

(in million euros)

ASSETS CLASSIFIED AS HELD FOR SALE LIABILITIES CLASSIFIED AS HELD FOR SALE

76 56

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As of December 31, 2020, assets and liabilities held for sale mainly include the assets and related liabilities from the Group Post Production business, which met at that date the IFRS 5 criteria for classification as a disposal group held for sale. Included in that disposal group are: €5 million of goodwill allocated to Post Production; • €52 million of non-current assets notably including the right-of-use • relating to real estate operating leases for €41 million;

the corresponding lease debt for €48 million; • current assets and liabilities for €16 million and €8 million • respectively. Assets held for sale also include real estate right-of-use assets available for long-term sublease or in renegociation with the lessor for €3 million. As of December 31, 2019, no assets and liabilities were held for sale.

Subsequent events

NOTE 13

GRI [102-10]

On January 14, 2021 the Group announced the sale of its Post-production business to Streamland Media for €30 million. This strategic sale is part of the Group long-term vision for its Production Service to focus on VFX and animation for

the entertainment industry, and expand its creative services and technologies for the advertising industry, which provide the maximum value to the Group clients. The sale, which is subject to customary conditions, is expected to close during the first half of 2021.

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