technicolor - 2020 Universal Registration Document

OPERATING AND FINANCIAL REVIEW AND PROSPECTS RESULTS OF OPERATIONS FOR 2019 AND 2020

CORPORATE & OTHER Corporate & Other includes the Trademark Licensing business. Corporate & Other recorded revenues of €23 million in 2020, decreasing compared to last year. In 2019, the Group benefited from €20 million of retained patent licensing revenues vs only €5 million in 2020. Analysis of Adjusted EBITDA and Adjusted EBITA 2.2.2 For the purpose of analyzing the Group’s performance, and in addition operating performance. For a comprehensive definition of adjusted to its published results presented in accordance with IFRS, Technicolor indicators and a description of their limitations as performance indicators publishes an Adjusted EBITDA. This indicator excludes factors please refer to section 2.2.9: “Adjusted Indicators” of this Chapter. the Group considers to be non-representative of Technicolor’s normal

2

FY 2020

FY 2019

Change (1) (46.0)% (88.0)%

(in million euros)

Total Adjusted EBITDA from continuing operations

167

324 164

Production Services Connected Home

18

110

79 81

+46.7% (32.3)%

DVD Services

54

Corporate & Other

(14)

1

ns

Change at constant currency. (1)

Adjusted EBITDA from continuing activities was €167 million compared to €324 million in 2019.

FY 2020

FY 2019

Change (1)

(in million euros)

Total Adjusted EBITA from continuing operations

(56) (78)

42 28 23 (6) (2)

ns ns

Production Services Connected Home

41

+91.8% +94.1%

DVD Services

(0)

Corporate & Other

(18)

ns

Change at constant currency. (1)

Adjusted EBITA from continuing activities was €(56) million compared to €42 million in 2019.

PRODUCTION SERVICES Adjusted EBITDA amounted to €18 million, down €(144) million year-on-year at constant rate. Costs were aggressively reduced to offset the €(370) million at constant rate revenue decline in a high margin segment. This negative evolution also impacted Adjusted EBITA compared to the prior year, partially mitigated by lower cloud render costs. Advertising EBITA, despite a sharp drop in its revenues linked to the pandemic, reached the same level as in 2019, showing the positive impact of its transformation activities on its margin. CONNECTED HOME Adjusted EBITDA amounted to €110 million in 2020, or 6.2% of revenue, up €37 million at constant rate primarily linked to cost reduction initiatives implemented in 2020. Adjusted EBITA of €41 million increased by €21 million compared to the prior year at constant rate. This positive evolution in profitability is the result of the significant transformation plan launched 2 years ago.

DVD SERVICES Adjusted EBITDA amounted to €54 million at current rate, or 7.6% of revenue, better than expectations given stronger than anticipated disc volumes and the acceleration of cost saving actions. The margin also includes the benefit of the positive impact from contracts renegotiated in 2019 and 2020. Lower depreciation & amortisation and renewal of contracts helped to deliver an Adjusted EBITA at break even compared to a loss in 2019. CORPORATE & OTHER Adjusted EBITDA amounted in 2020 to €(14) million and Adjusted EBITA at €(18) million.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020