TECHNICOLOR_REGISTRATION_DOCUMENT_2017

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

Key liquidity resources 2.3.1.2 To meet its cash requirements, the Group’s main sources of liquidity consist of: cash and cash equivalents: the amount of cash and cash ■ equivalents was €319 million at December 31, 2017. In addition, €23 million in cash collateral and security deposits was outstanding at December 31, 2017 to secure credit facilities and other Group obligations; cash generated from operating activities: in accordance with the ■ Group’s debt documentation, the Group is required to use a portion of its excess cash to repay debt. For more information,

please refer to note 8.3.3.5 to the Group's consolidated financial statements; proceeds from sales of assets: in accordance with the Group’s ■ debt documentation, the proceeds from the sale of assets must be used in some cases to repay debt; committed credit lines: at December 31, 2017 the Group had ■ three confirmed credit lines with maturity greater than 1 year for a total amount of €390 million. One of the credit lines for an amount of €105 million is secured by trade receivables and the availability of this line varies depending on the amount of receivables. For more information about the Group’s credit lines please refer to note 8.2.3 to the Group's consolidated financial statements.

CASH FLOW 2.3.2

2017

2016*

(in million euros)

Cash and cash equivalents at January 1

371 209

385 240

Net operating cash generated from continuing activities (I) Net investing cash used in continuing activities (II) Net financing cash used in continuing activities (III) Net decrease in cash and cash equivalents (I+II+III+IV) Exchange gains (losses) on cash and cash equivalents CASH AND CASH EQUIVALENTS AT DECEMBER 31 Net cash from discontinued activities (IV)

(151) (28) (43) (13) (39) 319

(117) (331)

168

(40)

26

371

2016 amounts are re-presented to reflect the impacts of discontinued operations (see note 12 to the Group’s consolidated financial statements). *

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TECHNICOLOR

REGISTRATION DOCUMENT 2017