technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 8 FINANCIAL ASSETS, FINANCING LIABILITIES & DERIVATIVE FINANCIAL INSTRUMENTS

Le tableau ci-après présente la ventilation des actifs et passifs financiers, en fonction de leur catégorie comptable.

Fair value measurement by accounting categories as of December 31, 2018

Fair value

Derivative instruments (see note 8.6)

through profit & loss

Fair value through equity

Fair Value measure- ment

December 31, 2018

Amortized costs

December 31, 2017

(in million euros)

Investments and available-for-sale assets Cash collateral & security deposits

14

14

Level 2 Level 1

17 15

9

9

Loans & others

1

1

4

Other non-current financial assets Total non-current financial assets Cash collateral and security deposits

10 24

19 36

12

12

Level 1

8 2

Other current financial assets Derivative financial instruments

2

2

-

-

Level 2

-

Other financial current assets

14

10

Cash

134 157 291 305

134 157

Level 1 Level 1

274

Cash equivalents

45

Cash and cash equivalents Total current financial assets Non-current borrowings (1) Other non-current financial liabilities Total non-current financial liabilities Other current financial liabilities Total current financial liabilities TOTAL FINANCIAL LIABILITIES Current Borrowings

319 329

(1,004)

(1,004)

(1,077)

-

-

Level 2

-

(1,004)

1,077

(20)

(20)

(20)

(4)

(4)

Level 2

(1)

(24)

(21)

(1,028) (1,098) Borrowings are recognized at amortized costs. The fair value of the Group debt is €972 million as of December 31, 2018 (€1,108 million as of December 31, 2017). This fair (1) value is based on quoted prices in active markets for term loan debts (Level 1).

Some cash collaterals for U.S. entities are classified as current because of their short maturity but are renewed automatically for periods of 12 months.

6

Management of financial risks

8.2

GRI [102-15]

GOVERNANCE 8.2.1 Technicolor faces a wide variety of financial risks including market risk (due to fluctuations in exchange rates and interest rates), liquidity risk and credit risk. Technicolor’s financial risks are managed centrally by the Group Treasury Department in France and its regional treasury department in Ontario (California – U.S.) in accordance with the policies and procedures of the Group.

All financial market risks are monitored continually and reported regularly to the Chief Financial Officer, the Investment Committee and the Audit Committee via various reports showing the Company’s exposures to these risks with details of the transactions undertaken to reduce them. These risks are managed in a strict framework with specific limits and authorizations approved by the Investment Committee for each type of transaction and monitoring by the Group Internal Control Department.

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TECHNICOLOR REGISTRATION DOCUMENT 2018