technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS Note 1 - General Information

A reserved capital increase of the Company, for a total amount • of €330 million, at a subscription price of €3.58 per share, reserved for the Term Loan Debt and RCF lenders and which was fully subscribed by way of set-off against their claims at par under the existing credit facilities. $125 million asset-based loan made available to Technicolor USA Inc. • on November 6, 2017 and certain other U.S. members of the Group was amended, in particular to extend the final maturity date of the loan to December 2023, and to allow the implementation of all of the transactions contemplated herein in order to achieve the restructuring. All conditions precedent to the effective Financial Safeguard Plan being removed, most notably the approval by the EGM on July 20, 2020, and by the Commercial Court of Paris on July 28, 2020, the final steps of the Safeguard Plan, that is the implementation of the Reinstated Term Loans and the repayment and equitization of the non-reinstated debt facilities, were successfully completed in September 2020. The non-reinstated Term Loan Debt and RCF debt were repaid in cash for an amount of €59,716,580.58 and equitized for an amount of €600,283,419.22.

Additionally, on September 11, 2020, the U.S. Bankruptcy Court presiding over Technicolor’s Chapter 15 proceedings ordered the closing of such proceedings. This marked the final step of the Company’s proceedings in the United States of America. Effects of these events on the financial statements at December 31: The Group considered the New Money debt, the conversion of part of the existing debt to equity, and the restructuring of the remaining debt after conversion to be a single complex transaction with multiple elements. This transaction resulted in: derecognition of the previous debt; • receipt of the proceeds, net of fees, from the New Money; • recognition of new financial debt (New Money and Reinstated Term • Loans); issuance of equity instruments to lenders (shares and New Money • warrants).

The impact of these transactions on the Company’s annual accounts is presented below:

Balance sheet (in million euros) Proceeds from the New Money

321

1,228

Debt derecognized (Value at the balance sheet)

New Money warrants

-

Capital increase subscribed in cash (1)

(60)

Capital increase subscribed by set-off of existing debt (1)

(600) (350) (574)

New Money debt Reinstated debt

RESULT OF THE OPERATION Fees booked in the profit and loss account NET RESULT OF THE OPERATION

(34) (39) (73)

Capital increase for a nominal value of €660 million. (1) Amounts in U.S. dollars are converted into euros at the exchange rate on the date of each transaction (1.16 for the New Money and 1.17 for the Reinstated Term Loans).

Profit and loss account (in million euros) Complementary amortization of deferred expenses (OID) on Term Loan B

(1) (1) (1)

OPERATING RESULT

Fees related to financial restructuring

Foreign exchange loss related to the valuation of USD debt

(12) (74) (87) (38)

Financial investments depreciations

FINANCIAL RESULT

Fees related to financial restructuring

Transfer of net assets to trust and corresponding representative rights

-

Net losses on financial investments disposals made as part of the financial restructuring Reversal of sold financial investments depreciations as part of financial restructuring

(6,220)

5,726 (532) (620)

EXCEPTIONAL RESULT

NET RESULT

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