TECHNICOLOR_REGISTRATION_DOCUMENT_2017

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

The table below summarizes Technicolor’s net financial debt at December 31, 2017.

Amount at December 31, 2017 (in million euros)

Type of interest rate

First maturity (1)

Existence of hedges

Term Loans Term Loans Other debt

Floating

968

2018 2021 2018

No No No

Fixed

90 39

Various

TOTAL DEBT

1,097

Available cash and deposits Committed credit facilities (2)

Floating Floating

319 390

0 to 1 month

No

TOTAL LIQUIDITY

709

Please refer to note 8.3.3.1 for a maturity schedule of the Group’s debt. (1) Availability varies depending on the amount of receivables (please refer to note 8.2.3). (2)

March 2017 Term Loan Debt issuances In March 2017, €275 million (€273 million at IFRS value) and $300 million ($298 million at IFRS value) in new term loans were issued the proceeds of which were used to repay €270 million (€256 million at IFRS value) and $302 million ($290 million at IFRS value) of existing term loans. January 2017 Term Loan Debt issuance In January 2017, a €90 million (€90 million at IFRS value) term loan from the European Investment Bank was put in place. December 2016 Term Loan Debt issuance In December 2016, €450 million (€446 million at IFRS value) in new term loans were issued, the proceeds of which were used to repay $479 million ($459 million at IFRS value) of existing term loans. Description of indebtedness For a description of the Group’s Term Loan Debt and RCF, please refer to note 8.3 to the consolidated financial statements.

Provisions for pensions and assimilated benefits In addition to the debt position described above, the Group has reserves for post-employment benefits that it provides to its employees, which amounted to €382 million at December 31, 2017 (compared with €404 million at December 31, 2016). For more information on the Group’s reserves for post-employment benefits, please refer to note 9.2 to the Group’s consolidated financial statements. Liquidity risk For more information about the Group’s liquidity risk, please refer to note 8.2.3 of the Group’s consolidated financial statements. Ratings The Group uses the services of rating agencies to help investors evaluate the credit quality of the Group’s debt. In March 2018, Standard & Poor’s (S&P) attributes a B+ rating with stable outlook to Technicolor SA (corporate rating) and the debt issued by Technicolor SA. In March 2018, Moody’s attributes a B1 rating with negative outlook to Technicolor SA (corporate rating) and to the debt issued by Technicolor SA. None of the Group’s debt has clauses referring to the Group’s credit ratings.

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TECHNICOLOR REGISTRATION DOCUMENT 2017