TECHNICOLOR_REGISTRATION_DOCUMENT_2017

2 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS Liquidity and capital resources

December 31, 2016 Published

December 31, 2016 Re-presented

December 31, 2017

(in million euros)

Adjusted EBITDA from continuing operations Changes in working capital and other assets and liabilities Pension cash usage of the period Restructuring provisions – cash usage of the period

565

359

291

106

56

72

(28) (56)

(28) (47)

(27) (40)

Interest paid

(74)

(74)

(46)

Interest received Income tax paid

3

3

2

(44) (26) 446

(5)

(9)

Other items

(24) 240

(34) 209

Net operating cash generated from continuing activities Purchases of property, plant and equipment (PPE) Proceeds from sale of PPE and intangible assets

(68)

(68)

(52)

1

1

1

Purchases of intangible assets including capitalization of development costs Net operating cash used in discontinued activities

(85)

(85)

(95)

(46)

160

(39)

Free cash flow

248

248

24

LIQUIDITY AND CAPITAL RESOURCES 2.3 [G4-EC1] [G4-DMA Economic performance] GRI

losses relating to discontinued operations: the Group must also ■ fund the losses and cash requirements, if any, of its discontinued operations. For more information on the risks associated with the sale of these activities please refer to Chapter 3: “Risks, litigation and controls” section 3.1: “Risks factors” of this Registration Document; capital expenditures: the Group must regularly invest in capital ■ equipment to operate its businesses; repayment or refinancing of debt: at each debt maturity date, the ■ Group must either repay or refinance the maturing amounts; dividends: a dividend of €25 million was paid in 2017 for 2016 and ■ the Group must fund any future dividends.

This section should be read in conjunction with Chapter 3: “Risk Factors”, section 3.2: “Market Risk” of this Registration Document and note 8 to the consolidated financial statements. OVERVIEW 2.3.1 Principal cash requirements 2.3.1.1 The main cash requirements of the Group arise from the following: working capital requirements from continuing operations: the ■ working capital requirements of the Group are based in particular on the level of inventories, receivables and payables;

40

TECHNICOLOR REGISTRATION DOCUMENT 2017