technicolor - 2019 Universal registration document

6 FINANCIAL STATEMENTS OTHER OPERATING INFORMATION

4.5.2 For Production Services:

SENSITIVITY OF RECOVERABLE AMOUNTS AT DECEMBER 31, 2019

an increase of 0.5 point in the WACC rate assumption would • decrease the enterprise value by €17 million, generating an impairment of the same amount; a decrease of 1 point of the EBITDA margin from 2023 would • decrease the enterprise value by €36 million, generating an impairment of the same amount. For Connected Home: an increase of 1 point in the post-tax discount rate assumption would • decrease the enterprise value by €85 million without generating any impairment; a decrease of 1 point of the Adjusted EBITDA margin from 2019 • would decrease the enterprise value by €183 million without generating any impairment.

a decrease of 1 point in the long-term growth rate assumption would • decrease the enterprise value by €276 million without generating any impairment; a decrease of 1 point of the EBITDA margin from 2019 would • decrease the enterprise value by €142 million without generating any impairment; an increase of 0.5 point in the WACC rate assumption would • decrease the enterprise value by €138 million without generating any impairment. For DVD Services: a decrease of 5% on BD volumes from 2023 would decrease the • enterprise value by €6 million, generating an impairment of the same amount;

Other operating information

NOTE 5

Operating assets & liabilities

5.1 5.1.1

NON-CURRENT OPERATING ASSETS & LIABILITIES

2019

2018

(in million euros)

Customer contract advances and up-front prepaid discount

13 19 32 (8)

17

Other

24 41

OTHER OPERATING NON-CURRENT ASSETS Payable on acquisitions of business & fixed assets

(12) (26) (38)

Other

(17)

OTHER OPERATING NON-CURRENT LIABILITIES

(24)

As part of its normal course of business, Technicolor makes cash particular territory over the specified contract period (generally from 1 to advances and up-front prepaid discount to its customers, principally 5 years). The contracts contain provisions that establish pricing terms for within its DVD Services segment. These are generally in the framework services and volumes to be provided and other terms and conditions.

of a long-term relationship or contract and can take different forms. Consideration is typically paid as an advance to the customers in return for the customer’s various commitments over the life of the contracts. These contracts award to the Group a customer’s business within a

Such advanced payments are classified under “Non-current assets”, recorded as “Contracts advances and up-front prepaid discount” and are amortized as a reduction of “Revenues” on the basis of units of production or film processed.

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