2020 Universal Registration Document 2021-04-07 05:00:002021-04-07 09:45:00

UNIVERSAL

REGISTRATION

DOCUMENT

2020

including the Annual Financial Report

EFPD

c o n t e n t s

1 PRESENTATION OF THE GROUP EFPD

1.1 Overview and historical background

1.2

overview

Organization

and

business

1.3

Strategy

1.4

2

Share

capital

and shareholding

OPERATING

AND

FINANCIAL

AND

REVIEW

PROSPECTS

2.1

Summary

of

results

operations

2.2

Results

of

for 2019 and

2020

resources

2.3

Liquidity

and

capital

events

2.4

Subsequent

on

3

2.5

Information

Covid-19

RISKS,

LITIGATION,

AND CONTROLS

EFPD

3.1

Risk

factors

3.2

Internal

control

3 . 3

4

Insurance

CORPORATE

GOVERNANCE

AND COMPE

NSATION

governance

4.1

Corporate

4.2

Compensation

• DISCLOSURE ON EXTRA-FINANCIAL

PERFORMANCE

EFPD

5.1

Corporate

Social

Responsibility's

challenges

of the

Group

5.2

Human

capital

5.3

Human

rights

and

working

conditions

5.4

Climate

change

economy

5.5

Circular

customers

5.6

Safety

of

and protection

of content

practices

5.7

Fairness

of

business

assessment

5.8

CSR

performance

one

5.9

Report

of

of

the

Statutory

Auditors,

appointed

as independent

third-party,

on the

consolidated

non f

inancial

statement

5.10

Vigilance

Plan

6

FINANCIAL

STATEMENTS

EFPD

6.1

Technicolor

2020

consolidated

financial

statements

to

6.2

Notes

the

consolidated

financial

statements

report

6.3

Statutory

Auditors'

statements

on the consolidated

financial

year

for

the

ended

December 31,

2020

6.4

Technicolor SA

2020

financial

statements

parent

company

to

6.5

Notes

the

financial

statements

company

over

6.6

Parent

financial

data

the

years

(under

five last

Articles R. 225-81

and R. 225-1

02

of t

he French

Commercial

Code)

report

6.7

Statutory

Auditors'

on the financial

statemen

ts

for the y

ear

ended

December

31,

2020

6.8

7

Auditors

ADDITIONAL

INFORMATION

7.1

Company

profile

7.2

Listing

information

interests

7.3

Notification

of

acquired

companies

in

in French

2020

an

d

2019

7.4

Memorandum

and

bylaws

contracts

7.5

Material

7. 6

Additional

tax

information

7.7

Organization

of

the

Group

customers

payment

terms

7.8

Suppliers

and

7.9

Available

documents

competitive

position

7.10

Sources

regarding

7.11

Persons

responsible

for the Universal

Registration

Document

and

the Annual

Financial

R

eport

• UNIVERSAL REGISTRATION DOCUMENT CROSS-REFERENCE

TABLES

GLOSSARY

The elements of the Annual Financial Report are identified in the summary using the pictogram

The elements of the Extra-FinancialPerformance Declaration areidentified using the pictogram

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020

Société Anonyme with a share capital of €2,357,954.83 Registered Office: 8-10, rue du Renard

75004 Paris France

Paris Register of Commerce and Companies No. 333 773 174

UNIVERSAL REGISTRATION DOCUMENT

2020

including the Annual financial report

This Universal Registration Document has been filed on April 7, 2021 with the AMF, as competent authority under Regulation (EU) 2017/1129, without prior approval pursuant to Article 9 of the said regulation. The Universal Registration Document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if completed by a securities note and, if applicable, a summary and any amendments to the Universal Registration Document. The whole is approved by the AMF in accordance with Regulation (EU) 2017/1129.

The Universal Registration Document is a copy of the official version of the Universal Registration Document which has been prepared in XHTML format and is available on our website : www.technicolor.com

This document is a free translation into English of the original French "Document d'enregistrement universel". It is not a binding document. In the event of a conflict in interpretation, reference should be made to the French version, which is the authentic text filed with the French "Autorité des marchés financiers".

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020

1

MESSAGE TO THE SHAREHOLDERS

MESSAGE

T O T H E S H A R E H O L D E R S

GRI[102-14]

Dear Shareholders,

In 2020 Technicolor had to face the challenges of an extraordinary year. Our teams worked hard to address the impact of the Covid-19 pandemic, and to adapt quickly to ensure the continuity of our operations and the ongoing delivery of our high value-added services to our customers. The rapid and efficient implementation of remote working, especially in Production Services, was key to achieving this result. We simultaneously delivered a major transformation programme, which significantly reduced operating expenses and preserved cashflow. In addition, we successfully executed a comprehensive financial restructuring plan, providing a much stronger platform for the long-term sustainability of the Group.

Technicolor exceeded its 2020 guidance for all three main financial indicators - EBITDA, EBITA and Free Cash Flow - underpinned by a significant reduction of our cost base. This was achieved against the difficult background of the Covid-19 crisis. Connected Home beat the targets originally set before the crisis began, but Production Services and DVD Services were hit by the cessation of activity in the film industry, and associated cinema closures. Despite persistent uncertainty relating to the pandemic, we are looking forward with confidence to continue to carry out our transformation program in order to deliver improved results.

Technicolor is redefining its content experience with leadership positions in its 3 business units:

• in Production Services, Technicolor has worldwide leadership in visual effects for films and episodic work, and is the n°1 provider to Hollywood studios and streamers;
• in Connected Home, Technicolor is a global leader in Broadband and AndroidTV, and a trusted partner to the leaders of the industry, such as Comcast and Charter;
• in DVD Services, Technicolor is by far the largest player, with around 70% market share worldwide and 90% in North America.

The Group now has an appropriate capital structure adapted to the needs of our business, and is entering a new era in its history. The Group has re-engineered its operations to be more scalable, focused, innovative, faster to market and artistically cutting-edge. Technicolor has solid business foundations and strong capabilities, especially in terms of highly skilled people and assets, and our secret weapon is the combination of artistry and technology. Our Company plays a vital role in the markets in which we operate, and provides truly differentiated products and services to our clients.

The strategic sale of Technicolor Post is part of our long- term vision for Production Services to focus on VFX and animation for the entertainment industry, and creative services and technologies for the advertising industry, which provide maximum value to our clients. We will continue to deliver on these core areas through our award-winning creative studios The Mill, MPC, Mr. X and Mikros Animation.

With the gradual recovery of our key markets, in particular ProductionServices,Technicolorispoisedtoreturntodelivering profitable growth, cash generation and value creation for shareholders.Duringtheyearwehavestrengthenedourfinancial transparency by regularly communicating our performance, and providing tangible financial targets for the medium term.

Thank you for your trust,

		Anne Bouverot				Richard Moat
Chairperson of the Board
	Chief Executive Officer
		of Directors

• TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020

COMMENTAIRESPRELIMINARYPRÉLIMINAIRESCOMMENTS

P R E L I M I N A R Y

COMMENTS

GRI[102-46]

In this Universal Registration Document, unless otherwise stated, the "Company" refers to Technicolor SA and "Technicolor" and the "Group" refers to Technicolor SA together with its consolidated affiliate.s

This Universal Registration Document includes:

1. the Annual Financial Report (Rapport Financier Annuel) issued pursuant to Article L. 451-1-2 of the French Monetary and Financial Code (Code monétaire et financier)and referred to in Article 222-3 of the AMF General Regulation (Règlement général de l'AMF)(a cross-referencetable is set forth on page 330 between the documents referred to in Article 222-3 of the AMF General Regulation and the relevant sections of this Universal Registration Document);
2. the Management Report (Rapport de gestion) adopted by the Board of Directors of the Company pursuant to ArticlesL. 22-10-35,L. 225-100 et seq.and L. 232-1of the French Commercial Code (Code de commerce)(the cross-reference table on page 330 mentions the elements of this report); and
3. the Corporate Governance Report (Rapport sur le Gouvernement d'entreprise)adopted by the Board of Directors of the Company pursuant to Articles L. 22-10-10et seq.and L. 225-37of the French Commercial Code (the cross-reference table on page 332 mentions the elements of this report).

This Universal Registration Document contains certain forward- looking statements with respect to Technicolor's financial condition, results of operations and business and certain plans and objectives of the Group. These statements are based on management's current expectations and beliefs in light of the information currently available and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition to statements that are forward- looking by reason of context, other forward-looking statements may be identified by use of the terms "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "projects", "predicts" and "continue" and similar expressions identify forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that are anticipated to occur in the future. Such statements are also subject to assumptions concerning, among other things, Technicolor's anticipated business strategies; its intention to introduce new products and services; anticipated trends in its business; and Technicolor's ability to continue to control costs and maintain quality.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT

2020

3