technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019

RISK IDENTIFIED Shares in subsidiaries represent one of the most significant line items of the December 31, 2019 balance sheet with a net amount of €2,148 million, which represents 75% of total assets. They are recorded at their historical acquisition cost and impaired based on their value in use. As indicated in Note 7 to the financial statements, the value in use of investments in subsidiaries is determined case by case based on the portion of equity represented by the shares or on the recoverable value. When the value in use of such investments is less than their gross value, a valuation allowance is set up for the difference. Provision for current accounts and loans are made if the net financial position is negative. In addition, a provision for risk is set aside for the surplus over the residual net negative balance. The economic environment in which the Group operates is rapidly changing. The subsidiaries can therefore experience changes in their activity with a negative impact on operating income and on their forecast. In this context and given the significant amount of shares in subsidiaries in Technicolor accounts, we considered the valuation of shares in subsidiaries to be a key audit matter. OUR ANSWER To assess the reasonableness of the value in use of the shares in subsidiaries, based on the information communicated to us, our work mainly consisted in: Verifying that shares in subsidiaries acquisition of the period are recorded at their acquisition cost; • Analyzing the procedures used by the Group to realize impairment tests, examining how these impairment tests are performed and verifying the • relevance of the method used depending on the share tested; For the shares valuated based on the portion of equity they represent, verifying that the equity retained agrees with the accounts of the entities that • were audited or the subject of analytical procedures and that adjustments proceeded on equity, if need be, are documented properly; For the shares valuated on their recoverable value, obtaining the cash flow forecasts established by the Management and appreciating their • consistency; Testing the arithmetical accuracy of the value of shares calculation. • Specific verifications We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations. INFORMATION GIVEN IN THE MANAGEMENT REPORT AND IN THE OTHER DOCUMENTS WITH RESPECT TO THE FINANCIAL POSITION AND THE FINANCIAL STATEMENTS PROVIDED TO SHAREHOLDERS We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report of the Board of Directors and in the other documents with respect to the financial position and the financial statements provided to the Shareholders. We attest the fair presentation and the consistency with the financial statements of the information relating to payment deadlines mentioned in Article D. 441-4 of the French Commercial Code (Code de commerce). REPORT ON CORPORATE GOVERNANCE We attest that the Board of Directors’ report on corporate governance sets out the information required by Articles L. 225-37-3 and L. 225-37-4 of the French Commercial Code. Concerning the information given in accordance with the requirements of Article L. 225-37-3 of the French Commercial Code (code de commerce) relating to remunerations and benefits received by the directors and any other commitments made in their favour, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your company from controlling and controlled companies. Based on these procedures, we attest the accuracy and fair presentation of this information. With respect to the information relating to items that your company considered likely to have an impact in the event of a takeover bid or exchange offer, provided pursuant to Article L. 225-37-5 of the French Commercial Code (code de commerce), we have agreed this information to the source documents communicated to us. Based on these procedures, we have no observations to make on this information OTHER INFORMATION In accordance with French law, we have verified that the required information concerning the purchase of investments and controlling interests and the identity of the shareholders and holders of the voting rights has been properly disclosed in the management report.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 291