technicolor - 2019 Universal registration document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS LIQUIDITY AND CAPITAL RESOURCES

2019, excl. IFRS 16

2019

2018

(in million euros)

Adjusted EBITDA from continuing operations Changes in working capital and other assets and liabilities

324 (96) (26) (35) (65)

246 (96) (26) (38) (45)

266

2

Pension cash usage of the period

(26) (43) (42)

Restructuring provisions – cash usage of the period

Interest paid

Interest received Income tax paid

1

1

3

(12) (21)

(12) (24)

(14) (28)

Other items

Net operating cash generated from continuing activities Purchases of property, plant and equipment (PPE) Proceeds from sale of PPE and intangible assets Purchases of intangible assets including capitalization of development costs Net operating cash used in discontinued activities

70

6

118

(71)

(71)

(68)

1

1

-

(99)

(99)

(94)

(12)

(11)

(4)

Free Cash Flow

(111)

(175)

(48)

LIQUIDITY AND CAPITAL RESOURCES 2.3 GRI [103-2 Economic performance] [201-1]

repayment or refinancing of debt: at each debt maturity date, the • Group must either repay or refinance the maturing amounts; dividends: in 2019 no dividends were paid, but the Group may have • to fund future dividends. KEY LIQUIDITY RESOURCES 2.3.1.2 To meet its cash requirements, the Group’s main sources of liquidity consist of: cash and cash equivalents: the amount of cash and cash equivalents • was €65 million at December 31, 2019. In addition, €25 million in cash collateral and security deposits was outstanding at December 31, 2019 to secure credit facilities and other Group obligations; cash generated from operating activities: in accordance with the • Group’s debt documentation, the Group is required to use a portion of its excess cash to repay debt. For more information, please refer to note 8.3.3 to the Group’s consolidated financial statements; proceeds from sales of assets: in accordance with the Group’s debt • documentation, the proceeds from the sale of assets must be used in some cases to repay debt;

This section should be read in conjunction with Chapter 3: “Risks, Litigation and Controls”, section 3.1.1: “Global market and industry risks” of this Universal Registration Document and note 8 to the consolidated financial statements. Overview 2.3.1 PRINCIPAL CASH REQUIREMENTS 2.3.1.1 The main cash requirements of the Group arise from the following: working capital requirements from continuing operations: the • working capital requirements of the Group are based in particular on the level of inventories, receivables and payables; losses relating to discontinued operations: the Group must also • fund the losses and cash requirements, if any, of its discontinued operations. For more information on the risks associated with the sale of these activities please refer to Chapter 3: “Risks, litigation and controls” section 3.1: “Risk factors” of this Universal Registration Document; capital expenditures: the Group must regularly invest in capital • equipment to operate its businesses;

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019