technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

Note 1 - General Information

The following table presents synthetically the security package and whether it is submitted to financial covenants for each new or reinstated debt of the Group. The security package is further described in note 9.2.2. Debt Borrower Security Financial Covenants U.S. New Money Technicolor USA Inc. Yes

1 st or 2 nd ranking pledge on U.S. assets, Gallo 8 fiducie , pledge on certain Technicolor SA assets, Technicolor SA guarantee

French New Money

Tech 6 Gallo 8 fiducie , Tech 7 fiducie , pledge on certain Technicolor SA assets, Technicolor SA guarantee Technicolor SA 2 nd ranking position on (i) Gallo 8 fiducie and (ii) pledges on certain Technicolor SA assets

Yes

Reinstated Term Loans

No

Wells Fargo Credit Line

Technicolor USA Inc.

1 st or 2 nd ranking pledge on U.S. assets

Yes

IMPACTS OF THE COVID-19 PANDEMIC 1.1.2 Although the Covid-19 crisis adversely affected the activities of Technicolor group subsidiaries, all of the Group’s business lines have been resilient. The Connected Home business benefits from strong demand for its products and maintains its leading position in the broadband and video markets based on Android technology. The Production Services business was significantly impacted by the crisis, which notably stopped all filming at the end of the first quarter. The decline in special effects and post-production for films and series was partially offset by increasing demand for animation and the resilience 1.2.1 The annual accounts for the year at December 31, 2020 were established in accordance with the accounting standards set out in the French General Chart of Accounts (Plan Comptable Général) and the provisions of the Code of Commerce. They comply with the advice and recommendations of the Ordre des Experts-Comptables and the Compagnie Nationale des Commissaires aux Comptes as well as the regulation of the Autorité des normes comptables No. 2014-03 of June 5, 2014 updated of the various complementary regulations on the date of the establishment of the so-called annual accounts. The Company applies the provisions of the 2015-05 ANC Regulation, approved by order of December 28, 2015. This regulation, which is mandatory on January 1, 2017, aims to clarify the terms of accounting for term financial instruments and hedging transactions. In this context, the Company has supplemented the information in notes to hedging operations (see notes 9.4 and 12.4). The impact of this settlement on the Company’s balance sheet and income statement is not significant. Accounting policies have been applied sincerely in accordance with the principle of prudence, in accordance with basic assumptions: continuity of operations; • Accounting Policies BASIS OF PREPARATION 1.2

of advertising-related activities. Overall, the turnover decreased by 42% at constant exchange rates. The DVD Services business was adversely impacted in particular by the lack of new film releases partially offset by sustained demand from the catalogue. Overall, the turnover decreased by 20% at constant exchange rates. Despite the uncertainties associated with the pandemic, particularly regarding the ability of Connected Home to supply components, the Group will continue to build on its strengths and execute its transformation plan to increase its results. The Group’s financial position and its prospects enable it to ensure its continuity of operations. permanence of accounting methods from one year to the next; • independence of the financial years, • and in accordance with the general rules for setting up and presenting • annual accounts. The basic method used to assess accounting items is the historical cost method. Only significant information is expressed. Unless mentioned, the amounts are expressed in Euro and rounded to the nearest million. The Company’s annual accounts were validated by Technicolor SA’s Board of Directors on March 11, 2021. In accordance with French law, the annual accounts will be considered final once they have been approved by the Group’s shareholders at the Ordinary General Meeting of shareholders to be held on May 12, 2021.

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