technicolor - 2019 Universal registration document

OPERATING AND FINANCIAL REVIEW AND PROSPECTS SUBSEQUENT EVENTS

MARCH 2017 TERM LOAN DEBT ISSUANCES In March 2017, €275 million (€273 million at IFRS value) and $300 million ($298 million at IFRS value) in new term loans were issued the proceeds of which were used to repay €270 million (€256 million at IFRS value) and $302 million ($290 million at IFRS value) of existing term loans. JANUARY 2017 TERM LOAN DEBT ISSUANCE In January 2017, a €90 million (€90 million at IFRS value) term loan from the European Investment Bank was put in place. This loan was reimbursed in full in December 2018. DECEMBER 2016 TERM LOAN DEBT ISSUANCE In December 2016, €450 million (€446 million at IFRS value) in new term loans were issued, the proceeds of which were used to repay $479 million ($459 million at IFRS value) of existing term loans. DESCRIPTION OF INDEBTEDNESS For a description of the Group’s Term Loan Debt, please refer to note 8.3 to the consolidated financial statements.

PROVISIONS FOR PENSIONS AND ASSIMILATED BENEFITS In addition to the debt position described above, the Group has reserves for post-employment benefits that it provides to its employees, which amounted to €375 million at December 31, 2019 (compared with €346 million at December 31, 2018). For more information on the Group’s reserves for post-employment benefits, please refer to note 9.2 to the Group’s consolidated financial statements. LIQUIDITY RISK For more information about the Group’s liquidity risk, please refer to note 8.2.3 of the Group’s consolidated financial statements. RATINGS The Group uses the services of rating agencies to help investors evaluate the credit quality of the Group’s debt. In February 2020, Standard & Poor’s (S&P) attributed a B- rating with stable outlook to Technicolor SA (corporate rating) and the debt issued by Technicolor SA. In February 2020, Moody’s attributed a Caa1 rating with stable outlook to Technicolor SA (corporate rating) and to the debt issued by Technicolor SA. None of the Group’s debt has clauses referring to the Group’s credit ratings.

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SUBSEQUENT EVENTS 2.4

GRI [102-10] [102-15] [103-1 Economic performance] [103-2 Economic performance]

On February 13, 2020, the Group announced its 2020-2022 strategic plan, focused on a more disciplined approach to business selection whilst continuing to provide market leading products and services. Concurrently the Group announced three transactions aimed at strengthening its capital structure and restoring its strategic flexibility: a Capital increase with preferential subscription rights for shareholders • for a total gross amount of circa €300 million. An Extraordinary General Meeting of shareholders was held on March 23, 2020 which voted on resolutions related to the Rights Issue. It is anticipated that the equity issuance will be launched in the second quarter of 2020, subject to approval from Technicolor’s shareholders, regulatory authorities, and market conditions;

an 18-month extension of its existing RCF from December 2021 to • June 2023, conditional on the successful execution of the Rights Issue. Similarly, the Wells Fargo facility will be extended by 18 months from September 2021 to March 2023; an additional $110 million short-term facility which has been arranged by • J.P. Morgan. The facility will provide additional liquidity headroom and will be repayable following the receipt of proceeds of the Rights Issue.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019