technicolor - 2019 Universal registration document

MESSAGE TO SHAREHOLDERS4
1. PRESENTATION OF THE GROUP9
1.1 OVERVIEW AND HISTORICAL BACKGROUND11
1.1.1 Overview11
1.1.2 Historical background13
1.2 ORGANIZATION AND BUSINESS OVERVIEW14
1.2.1 Production services14
1.2.2 DVD services18
1.2.3 Connected Home20
1.2.4 Corporate & Other23
1.2.5 Discontinued operations23
1.3 STRATEGY24
1.4 SHARE CAPITAL AND SHAREHOLDING26
1.4.1 Share capital26
1.4.2 Share buy back30
1.4.3 Delegations granted to the Board of Directors by the Shareholders’ Meetings31
1.4.4 Dividend policy32
2. OPERATING AND FINANCIAL REVIEW AND PROSPECTS33
2.1 SUMMARY OF RESULTS34
2.2 RESULTS OF OPERATIONS FOR 2018 AND 201934
2.2.1 Analysis of revenues from continuing operations35
2.2.2 Analysis of Adjusted EBITDA and Adjusted EBITA37
2.2.3 Analysis of operating expenses and profit (loss) from continuing operations before tax and net financial expense38
2.2.4 Net financial expense39
2.2.5 Income tax39
2.2.6 Profit (loss) from continuing operations39
2.2.7 Profit (loss) from discontinued operations39
2.2.8 Net income (loss) of the Group40
2.2.9 Adjusted indicators40
2.3 LIQUIDITY AND CAPITAL RESOURCES42
2.3.1 Overview42
2.3.2 Cash flow43
2.3.3 Financial resources44
2.4 SUBSEQUENT EVENTS45
2.5 INFORMATION ON COVID-1946
3. RISKS, LITIGATION, AND CONTROLS47
3.1 RISK FACTORS48
3.1.1 Global market and industry risks49
3.1.2 Operational risks52
3.1.3 Financial risks60
3.1.4 Litigations63
3.2 INTERNAL CONTROL65
3.2.1 Objectives of internal control procedures and implementation65
3.2.2 General control environment66
3.2.3 Internal Audit67
3.2.4 Internal control procedures relating to the preparation and treatment of accounting and financial information68
3.2.5 Other internal control procedures69
3.3 INSURANCE71
4. CORPORATE GOVERNANCE AND COMPENSATION73
4.1 CORPORATE GOVERNANCE74
4.1.1 Board of Directors77
4.1.2 Preparation and organization of the Board of Directors’ work98
4.1.3 Regulated agreements108
4.1.4 Internal Board regulations110
4.1.5 Executive Committee115
4.2 COMPENSATION117
4.2.1 Compensation and benefits of Corporate Officers117
4.2.2 Pay equity ratio136
4.2.3 Executive Committee compensation137
4.2.4 Stock options plans and performance or restricted shares plans137
5. DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE147
5.1 CORPORATE SOCIAL RESPONSIBILITY’S CHALLENGES OF THE GROUP148
5.1.1 Business models148
5.1.2 The CSR risks149
5.1.3 The materiality matrix150
5.1.4 The approach to sustainability151
5.2 HUMAN CAPITAL152
5.2.1 Management and development of talent152
5.2.2 Management of business cycles161
5.2.3 Diversity and inclusiveness162
5.2.4 Business transformation and social dialogue165
5.2.5 Safety at work166
5.2.6 Absenteeism168
5.2.7 Community impact and regional development168
5.2.8 Relations with external stakeholders170
5.3 HUMAN RIGHTS AND WORKING CONDITIONS170
5.3.1 Human Rights and working conditions in the supply chain171
5.3.2 Fight against harassment and discrimination172
5.4 CLIMATE CHANGE173
5.4.1 Carbon emissions174
5.4.2 Energy efficiency176
5.4.3 Renewable energy176
5.5 CIRCULAR ECONOMY178
5.5.1 Recycling of waste and optimization of raw material179
5.5.2 Environmental footprint of products181
5.5.3 Sustainable water management181
5.5.4 Additional environmental aspects182
5.5.5 Data collection method and rationale184
5.6 SAFETY OF CUSTOMERS AND PROTECTION OF CONTENT187
5.6.1 Product compliance and ban of hazardous materials187
5.6.2 Content security, cyber risks and respect of Intellectual Property188
5.7 FAIRNESS OF BUSINESS PRACTICES189
5.7.1 Competition rules and anti-bribery189
5.7.2 Tax management190
5.8 CSR PERFORMANCE ASSESSMENT191
5.9 REPORT BY ONE OF THE STATUTORY AUDITORS, APPOINTED AS INDEPENDENT THIRD-PARTY, ON THE CONSOLIDATED NON FINANCIAL STATEMENT PUBLISHED IN THE GROUP MANAGEMENT REPORT192
5.10 VIGILANCE PLAN195
6. FINANCIAL STATEMENTS197
6.1 TECHNICOLOR 2019 CONSOLIDATED FINANCIAL STATEMENTS198
6.1.1 Consolidated statement of operations198
6.1.2 Consolidated statement of comprehensive income199
6.1.3 Consolidated statement of financial position200
6.1.4 Consolidated statement of cash flows202
6.1.5 Consolidated statement of changes in equity203
6.2 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS204
6.3 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019265
6.4 TECHNICOLOR S.A. PARENT COMPANY FINANCIAL STATEMENTS269
6.4.1 Statement of operations269
6.4.2 Statement of financial position270
6.4.3 Statement of changes in equity271
6.5 NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS272
6.6 PARENT COMPANY FINANCIAL DATA OVER THE FIVE LAST YEARS (UNDER ARTICLES R. 225-81 AND R. 225-102 OF THE FRENCH COMMERCIAL CODE)291
6.7 STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019292
6.8 AUDITORS296
6.8.1 Table of Auditors’ fees296
6.8.2 Statutory Auditors296
6.8.3 Substitute Statutory Auditors296
7. ADDITIONAL INFORMATION297
7.1 COMPANY PROFILE298
7.2 LISTING INFORMATION298
7.2.1 Markets for the Company’s securities298
7.2.2 Listing on Euronext Paris299
7.3 NOTIFICATION OF INTERESTS ACQUIRED IN FRENCH COMPANIES IN 2019 AND 2018300
7.3.1 Notification of interests acquired in the share capital of French companies in 2019300
7.3.2 Notification of interests acquired in the share capital of French companies in 2018300
7.4 MEMORANDUM AND BYLAWS300
7.4.1 Corporate purpose300
7.4.2 Board of Directors and Executive Committee members301
7.4.3 Rights, privileges and restrictions attached to shares301
7.4.4 Actions necessary to change the rights of shareholders301
7.4.5 Shareholders’ meetings301
7.4.6 Bylaws requirements for holdings exceeding certain percentages301
7.5 MATERIAL CONTRACTS302
7.6 ADDITIONAL TAX INFORMATION302
7.7 ORGANIZATION OF THE GROUP303
7.7.1 Legal organizational chart of the Group as of December 31, 2019303
7.7.2 Operational organization of the Group305
7.8 SUPPLIERS AND CUSTOMERS PAYMENT TERMS306
7.9 AVAILABLE DOCUMENTS306
7.10 SOURCES REGARDING COMPETITIVE POSITION307
7.11 PERSONS RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT AND THE ANNUAL FINANCIAL REPORT307
7.11.1 Declaration by the person responsible for the Universal Registration Document and the Annual Financial Report307
7.11.2 Person responsible for information307
8. UNIVERSAL REGISTRATION DOCUMENT CROSS-REFERENCE TABLES309
Cross-reference table referring to the main headings required by Annexes 1 and 2 of the Commission delegated Regulation (EU) n°2019/980 of 14 March 2019311
Annual Financial Report cross-reference table313
Cross-reference table referring to the elements of the management report314
Cross-reference table referring to the elements of the corporate governance report315
Cross-reference table pursuant to Article L. 225-102-1, Article R. 225-105 (disclosure on extra-financial performance) and Article L. 225-102-4 (vigilance plan) of the French Commercial Code316
Glossary319

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