technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 4 GOODWILL, INTANGIBLE & TANGIBLE ASSETS

Connected Home

Entertainment Services

Discontinued operations

Total

(in million euros)

2018 Impairment loss on goodwill

-

(77)

-

(77)

Impairment losses on intangible assets Impairment losses on tangible assets

(1) (1)

(1) (8)

(4)

(6) (9)

-

Impairment losses on non-current operating assets

(2)

(86)

(4)

(92)

Impairment reversal on intangible assets

-

-

-

-

NET IMPAIRMENT LOSSES ON NON-CURRENT OPERATING ASSETS (1)

(2)

(86)

(4)

(92)

2017 Impairment loss on goodwill

-

-

-

-

Impairment losses on intangible assets Impairment losses on tangible assets

(7) (1) (8)

(1)

(5)

(13)

-

-

(1)

Impairment losses on non-current operating assets

(1)

(5)

(14)

Impairment reversal on intangible assets

-

-

-

-

NET IMPAIRMENT LOSSES ON NON-CURRENT OPERATING ASSETS

(8)

(1)

(5)

(14)

Includes €(81) million in Net impairment and €(7) million in Restructuring of continuing result (1)

The impairment tests performed in 2018 on goodwill and intangibles assets with indefinite useful lives resulted in an impairment of €(77) million on the goodwill related to DVD Services.

As of December 31, 2018, the Group reviewed its triggering indicators and determined that some amortizable assets may have lost value. 2018 Impairment is mainly related to restructuring in the United States and to discontinued activities.

MAIN ASSUMPTIONS AT DECEMBER 31, 2018 4.4.1 In order to perform the annual impairment test, the Group used the following assumptions to determine the recoverable amount of the main goodwill reporting units: Entertainment Services Connected Home DVD Services Production Services Basis used to determine the recoverable amount Fair Value Value in use Fair Value Description of key assumptions Budget and Business Plans Period for projected future cash flows * 5 years 5 years Growth rate used to extrapolate cash flow projections beyond projection period: As of December 31, 2018 • * 2.0% 0% As of December 31, 2017 • * 2.0% 2.0%

6

Post-tax discount rate applied (1) : As of December 31, 2018 • As of December 31, 2017 •

8.0% 8.0%

8.0% 8.0%

10.0% 10.0%

The corresponding pre-tax discount rates are within a range from 11% to 12.8%. (1) The main activities of the DVD Services Division (replication and associated distribution) have been considered to have a finite life . Accordingly, no terminal value has been * applied for these main activities.

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TECHNICOLOR REGISTRATION DOCUMENT 2018