technicolor - 2020 Universal Registration Document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS SUMMARY OF RESULTS

Under IFRS 16, most operating leases are now treated as financial leases. As a consequence, operating lease expense is cancelled and replaced by an amortization expense and an interest expense. Figures in this Chapter are therefore presented including IFRS 16. SUMMARY OF RESULTS 2.1 GRI [103-3 Economic performance] [201-1]

Revenues from continuing operations totaled €3,006 million in 2020, down 20.9% at current currency and down 18.5% at constant currency compared to 2019. For more information, please refer to section 2.2.1: “Analysis of revenues from continuing operations” of this Chapter. Adjusted EBITDA from continuing operations reached €167 million in 2020, down 48.5% at current currency and down 46.0% at constant currency compared to 2019, a decline mainly attributable to Covid-19 Pandemic impacts, mitigated by a further cost structure optimization (Panorama plan savings). The Adjusted EBITDA margin amounted to 5.6%, down by c. 300 bps year-on-year at current currency. For more information, please refer to sections 2.2.2: “Analysis of adjusted EBITDA and adjusted EBITA” and 2.2.9: “Adjusted indicators” of this Chapter. Loss from continuing operations before tax and net finance costs was €264 million in 2020 compared to a loss of €121 million in 2019. For more information, please refer to section 2.2.3: “Analysis of operating expenses and profit (loss) from continuing operations before tax and net financial expense” of this Chapter.

The Group’s net financial result was an income of €77 million in 2020 compared to an expense of €84 million in 2019. For more information, please refer to section 2.2.4: “Net financial expense” of this Chapter. The Group’s total income tax charge was €5 million in 2020 compared to a charge of €3 million in 2019. For more information, please refer to section 2.2.5: “Income tax” of this Chapter. Loss from continuing operations was €193 million in 2020 compared to a loss of €208 million in 2019. For more information, please refer to section 2.2.6: “Profit (loss) from continuing operations” of this Chapter. The result from discontinued operations was a loss of €15 million in 2020 compared to a loss of €22 million in 2019. For more information, please refer to section 2.2.7: “Profit (loss) from discontinued operations” of this Chapter. The Group’s consolidated net income was a loss of €207 million in 2020 compared to a loss of €230 million in 2019. For more information, please refer to section 2.2.8: “Net income (loss) of the Group” of this Chapter.

RESULTS OF OPERATIONS 2.2 FOR 2019 AND 2020 GRI [103-3 Economic performance] [201-1]

The revenues, Adjusted EBITDA, operating expenses and profit (loss) from continuing operations before tax and net financial expense for the years 2020 and 2019 are presented below for each of the Group’s operating segments – Production Services, Connected Home, DVD Services and Corporate & Other.

The Group’s results are presented in accordance with IFRS 5. Consequently, the contributions of discontinued operations are disclosed on one line in the consolidated statements of operations, named “Net profit (loss) from discontinued operations” and are presented separately under section 2.2.7: “Profit (Loss) from Discontinued Operations” of this Chapter.

Analysis of revenues from continuing operations 2.2.1

FY 2020

FY 2019

Change (1) (18.5)% (41.4)% (7.6)% (18.6)% (45.6)%

(in million euros)

Total revenues from continuing operations

3,006

3,800

Production Services Connected Home

513

893

1,764

1,983

DVD Services

706

882

Corporate & Other

23

43

Change at constant currency. (1)

Revenues from continuing operations totaled €3,006 million in 2020, down 20.9% at current currency and down 18.5% at constant currency compared to 2019, resulting from lower revenues on all segments, especially in Production Services.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020