Universal Registration Document 2021

6 FINANCIAL STATEMENTS STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021

Liquidity RISK IDENTIFIED As of December 31, 2021, the Technicolor SA term loan amounted to €967 million, up €49 million compared to December 31, 2020. To regularly measure the Group’s liquidity risk, management assesses liquidity forecasts mainly based on projected cash flows, including operating cash flows, and debt repayment. Based on these forecasts and at each half year-end, the Board of Directors examines whether the Group’s cash flows are sufficient to finance current activities and the Group’s working capital requirement, at least for the twelve months after the closing, taking into account available credit lines. As described in Note 9.2.3 "Key terms of the credit agreements" to the financial statements, Technicolor completed its financial restructuring in 2020. In December 2021, the financing obtained through this financial restructuring included financial covenants. In the event of a breach of covenant, the financial debt would become immediately payable and result in the loss of the Group’s control over its subsidiaries. In this context and insofar as management judgement is essential in determining cash flow forecasts, we considered the assessment of liquidity risk to be a key audit matter. OUR RESPONSE We familiarized ourselves with the information systems and processes used by Technicolor Management to estimate the Group’s cash flow forecasts. We assessed the controls set up to prepare these cash forecasts and in particular we: assessed the procedures set up to ensure compliance with the specific requirements of the bank covenants, particularly those relating to the level of • liquidity required within the trusts; assessed the disclosure in the financial statements on compliance with these requirements as of December 31, 2021; • monitored liquidity throughout fiscal 2021, compared actual and budgeted positions and analyzed any differences to assess the quality of these • forecasts; verified the appropriateness of the disclosure in Note 9.2 "Main features of the term loans"; • interviewed Management on its knowledge of actual or potential circumstances or events subsequent to December 31, 2021 that could call into • question the entity’s liquidity. Valuation of participating interests RISK IDENTIFIED Participating interests, in the net amount of €1,616 million, represent one of the most significant line items of the December 31, 2021 balance sheet, i.e. 55% of total assets. They are recorded initially at acquisition cost and impaired based on their value in use. Participating interests comprise the securities of the companies held by Technicolor for €923 million and the rights representing the net assets held in the trusts for €693 million. As indicated in Note 7 to the financial statements, the value in use of participating interests is defined, according to the case, based on their share of equity or their recoverable amount. In particular, the value in use of the rights representing the net assets held in the trusts is defined according to their recoverable amount. If the carrying amount exceeds the value in use, an impairment loss is recognized for the difference. In the event of a negative net cash position, provisions for the impairment of current accounts are recorded. In addition, a contingency provision covers the residual negative balance. The economic environment in which the Group operates changes rapidly. Subsidiaries can therefore experience changes in their activity with a negative impact on their operating income and expected outlook. In this context and given the materiality of participating interests in the company’s financial statements, we considered the measurement of the value in use of participating interests to be a key audit matter.

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