TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS

Notes to the consolidated financial statements

At December 31, 2016

There after

2017

2018

2019

2020

2021

Total 1,056

(in million euros)

Floating rate Term Loan Debt – principal Floating rate Term Loan Debt – accrued interest Other debt – principal and accrued interest TOTAL DEBT PRINCIPAL PAYMENTS

33

33

33

507

- - - -

450

5

-

- 1

- -

-

5

14

5

2

22

52

38

34 507

452 1,083

IFRS Adjustment

(33)

Debt in IFRS

1,050

Floating rate Term Loan Debt – interest TOTAL INTEREST PAYMENTS

46

44

43

34

16

32

215

46

44

43

34

16

32

215

The contractual cash flow obligations of the Group due to its current debt are considered to be equal to the amounts shown in the consolidated statement of financial position. Credit Lines The Group has a receivable backed committed credit facility in an amount of $125 million (€105 million at the December 31, 2017

exchange rate) which matures in 2021, a €250 million revolving credit facility maturing in 2021 (the “RCF”) and a €35 million bilateral credit facility maturing in 2019. None of these facilities was drawn at December 31, 2017. The availability of the receivables backed credit line varies depending on the amount of receivables.

2017

2016

(in million euros)

Undrawn, committed lines expiring in more than one year

390

369

Credit and counterparty risk management 8.2.4. Credit risk arises from the possibility that counterparties may not be able to perform their financial obligations to Technicolor. Credit risk on trade receivable is managed by each operational division based on policies that take into account the credit quality and history of customers. From time to time, the Group may decide to insure or factor without recourse trade receivables in order to manage underlying credit risk. The credit risk exposure on the Group’s trade receivables corresponds to the net book value of these assets. The maximum credit risk exposure on the group’s cash and cash equivalents was €319 million at December 31, 2017. The Group minimizes this risk by limiting the deposits made with any single bank and by making deposits primarily with banks that have strong credit ratings or occasionally by investing in diversified, highly liquid money

market funds. As of December 31, 2017, 90% of the group cash deposits are made with banks that have a counterparty rating of, at least A-1 according to Standard & Poor’s (90% as of December 31, 2016). The financial instruments used by the Group to manage its interest rate and currency exposure are all undertaken with counterparts having an investment grade rating. Credit risk on such transactions is minimized by the foreign exchange policy of trading short-term operations. The marked-to-market carrying values are therefore a good proxy of the maximum credit risk. Most of the foreign exchange operations are dealt with financial counterparties that have a credit rating of A-1.

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TECHNICOLOR REGISTRATION DOCUMENT 2017