TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

For Connected Home: an increase of 1 point in the post-tax discount rate assumption ■ would decrease the enterprise value of €120 million without generating an impairment; a decrease of 1 point of the Adjusted EBITDA margin from 2018 ■ would decrease the enterprise value by €211 million without generating an impairment;

a decrease of 1 point of a sale growth assumption for 2021, 2022 ■ and Terminal value would decrease the enterprise value by €108 million without generating an impairment.

Commitments related to assets operated under operating lease 4.5.

Minimum future lease commitments

Future lease commitments received

Net value of future lease commitments

(in million euros)

2018 2019 2020 2021 2022

86 58 42 27 16 80

4

82 57 42 27 16 80

1 - - - -

After 5 years

TOTAL (1)

309

5

304

Minimum operating lease payments shown are not discounted. (1)

The above table includes the leases accrued as restructuring reserve for less than €1 million for 2017 closing. The main operating leases relate to the headquarters in France and in the U.S.: on April 22, 2008, Technicolor signed a commitment for an ■ operating lease - its headquarters in France in Issy-les-Moulineaux near Paris for a duration of 9 years from November 2009; Technicolor USA, Inc.. sold its office building (administration and ■ technical services buildings) in March 2000 and subsequently leased back from the purchaser until 2012 and renewed until 2017.

on November 2016, Technicolor signed a commitment for a new ■ operating lease until 2028 regarding the relocation of its headquarter in the center of Paris (Rue du Renard 75004) from August 2018. The net operating lease expense in 2017 was €100 million (€104 million in rental expense reduced by €4 million in rental income).

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REGISTRATION DOCUMENT 2017