technicolor - 2020 Universal Registration Document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS SUBSEQUENT EVENTS

SUBSEQUENT EVENTS 2.4 GRI [102-10]

On January 14, 2021 the Group announced the sale of its Post-Production business to StreamlandMedia for €30 million. industry, which provide the maximum value to the Group clients. This strategic sale is part of the Group long-term vision for its Production The sale, which is subject to customary conditions, is expected to close Services to focus on VFX and animation for the entertainment industry, during the first half of 2021. INFORMATION ON COVID-19 2.5 GRI [102-10] [102-15] [103-1 Economic performance] [103-2 Economic performance] [103-1 Market presence] [103-2 Market presence] [103-1 Procurement practices] [103-2 Procurement practices] [103-1 Employment] [103-2 Employment] [103-1 Occupational health and safety] [103-2 Occupational health and safety] The Covid-19 pandemic and the related sanitary measures to face it have had a significant impact on all Technicolor activities.. and expand its creative services and technologies for the advertising

In Connected Home: • Connected Home has remained fully operational throughout • the Covid-19 crisis due to the early adoption of a remote work model that successfully moved half of all employees off site to ensure key engineering facilities remained safe and open, the Covid-19 impact is now limited for its Asian-based • manufacturing and supply chain, but is still impacting capacity in Latin America for manufacturing and back-end operations; In DVD Services: • theatrical new release activity was very limited in 2020 from March • onwards due to the Covid-19 outbreak, with many key title release dates getting pushed out into 2021, which in most cases results in the home entertainment release being delayed as well, directly impacting DVD Services revenue/volume activity, most major retailers remained open during the pandemic, but • the level of sales activity was below normal with some signs of improvement in the fourth quarter. Without new release content, some retailers are continuing to allocate shelf space to catalog/library content promotions, which should continue to support DVD replication volumes in 2021, some production facilities experienced temporary staffing • shortages, but the overall impact to operations was low, the ongoing Covid-19 impact will be dependent on the extent and • duration of ongoing restrictions (driven by the rate of new Covid-19 case growth). The specific timing and extent of the reopening of movie theaters will impact the level of new disc release activity. DVD Services has accelerated certain aspects of its future restructuring plans in an effort to adapt to these impacts.

Covid-19 has impacted almost all businesses around the world. The effect on Technicolor has been significant even if the Group has been able to add the technical capacity necessary to support secure remote working conditions wherever possible for a large percentage of employees. In Production Services: • following the major U.S. studios’ reaching an agreement in • September with all the key Hollywood unions, production activity began to accelerate during the fourth quarter of 2020. Furthermore, a number of countries like Canada, France and the UK have launched and/or extended pandemic-related support programs including wage subsidies and production insurance/indemnity schemes that provide pandemic-related coverage, there continue to be production stoppages/delays as the latest • waves of the pandemic temporarily restrict production activity or limit international travel for talent and crew. Nevertheless, as vaccinations continue to roll out globally, the industry is optimistic about a steady return to normalcy during the back half of 2021, overall, Production Services continues to observe an increasing • level of bidding activity for projects, particularly for streaming/OTT distribution in addition to large tentpole films targeting to ramp-up production once Covid-19 vaccine distribution has reached a critical mass later in the current year;

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020