technicolor - 2020 Universal Registration Document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS LIQUIDITY AND CAPITAL RESOURCES

Cash flow 2.3.2

2020

2019

(in million euros)

Cash and cash equivalents at January 1

65

291

Net operating cash generated from continuing activities (I) Net investing cash used in continuing activities (II) Net financing cash used in continuing activities (III) Net decrease in cash and cash equivalents (I+II+III+IV) Exchange gain (losses) on cash and cash equivalents CASH AND CASH EQUIVALENTS AT DECEMBER 31 Net cash used from discontinuing activities (IV)

(81)

70

(138) 522 (23) 280 (16) 330

(171) (91) (33)

(226)

-

65

NET CASH GENERATED FROMOPERATING ACTIVITIES Continuing operations Net Income from continuing operations was a loss of €193 million in compared to €70 million generated in 2019. The variations between 2020 compared to a loss of €208 million in 2019. Net operating cash 2019 and 2020 are analyzed in the table below: used from continuing operations amounted to €(81) million in 2020,

2020 (193)

2019 (208)

(in million euros)

Profit (Loss) from continuing operations

Summary adjustments to reconcile profit from continuing operations to cash generated from continuing operations: non-cash depreciation, amortization and impairment of assets • Profit from continuing operations before depreciation, amortizations and impairment of assets

351

385

158 (84) 100 (158) (38) (22) (48) (12) (81)

177 (89)

Cash payments of the period related to provisions Non-cash P&L impact of the provisions of the period

41

Net gain on financial restructuring

-

Other various adjustments

17

Operating cash generated from continuing operations

146 (64) (12)

Net interest paid and received

Income tax paid

NET OPERATING CASH GENERATED FROM CONTINUING ACTIVITIES (I)

70

NET CASH USED IN INVESTING ACTIVITIES Continuing operations investing cash used in continuing activities was €138 million in 2020 compared to €171 million in 2019, and included: net capital expenditures, which amounted to €108 million in 2020 • (compared to €169 million in 2019), due to cash expended relating to tangible and intangible capital expenditures. In 2020, net capital expenditure amounted to €33 million in the Production Services segment and was mainly related to intangible asset spending and production capacity increase, €62 million in the Connected Home

segment, mainly due to capitalized R&D projects and new product introduction tools and €12 million in the DVD Services segment, mainly from patents; acquisition of businesses (net of cash acquired), which amounted to • €(3) million in 2020, compared to € (3) million in 2019; proceeds from sales of equity holdings, which amounted to €7 million • in 2020 compared to €1 million in 2019 (net of cash in companies disposed of); net grant of loans & security deposits amounted to €(34) million • in 2020 compared to €(1) million in 2019.

42

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020