technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS Note 12 - Other information

Europe Since 2014, Technicolor has also been defending, along with other defendants (Samsung, LG, Philips, etc. ), several similar legal actions in various European jurisdictions alleging damages suffered as a result of anticompetitive behaviour in the CRT industry until 2005. All such cases are in the wake of the EU Commission decision of December 2012 pursuant to which Technicolor was fined €39 million as a result of alleged involvement in a cartel. The cases are as follows: in the Netherlands, a case filed by Vestel, a Turkish TV manufacturer, • under Turkish law. Vestel also brought suit in Turkey, which was dismissed on procedural grounds by the Court of First Instance as well as by the Regional Court of Appeals in December 2020. Vestel appealed the decision of the Regional Court of Appeals;

in the Netherlands, a case filed by three Brazilian TV manufacturers • under Brazilian law. At this time, Technicolor is unable to assess the potential outcome from those cases and the resulting potential liability due to the complexity of the cases, as Technicolor is still defending certain of these on procedural grounds and/or as the claims have not all been fully substantiated. Depending on jurisdictions, decisions on quantum are not expected before 2021 or 2022. Technicolor also defended (i) a case in the United Kingdom against Arcelik, a Turkish manufacturer, which was settled in February 2020 and (ii) two cases in Germany against three German former TV manufacturers (Grundig and Loewe/Metz) which were settled in December 2020.

Other information

NOTE 12

Trade accounts and other current assets and liabilities 12.1 Trade receivables and other current operating assets are valued at historical cost. A depreciation charge is recorded when recoverable value is lower than book value.

Income or charges are accrued when the service has been provided to or supplied by the Company before the end of the financial year and when they can be measured with sufficient assurance.

Current liabilities mainly consist of debts with a maturity of less than one year. This caption includes tax and social security liabilities, trade payables and fixed assets payables.

Current assets mainly include current accounts of Group subsidiaries for €902 million (net of depreciation for €7 million). Accrued income is booked in the following captions:

2020

2019

(in million euros)

Trade receivables

31

41

of which accrued income

2

5

Other current assets

15

16

6

of which accrued income

11

7

Accrued charges are booked in the following captions:

2020

2019

(in million euros) Trade payables

11

15

of which accrued charges Other current liabilities

4

4

31

24

of which tax and social accrued charges

8

8 8

of which other accrued charges

10

Compliance with supplier and customer invoices contractual payment terms: At year end:

the amount, including VAT, of overdue supplier invoices represents 0.5% of fiscal year purchases amount excluding VAT; • the amount,including VAT, of overdue customer invoices represents 3.3% of fiscal year revenue sales excluding VAT. •

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