technicolor - 2020 Universal Registration Document

OPERATING AND FINANCIAL REVIEW AND PROSPECTS LIQUIDITY AND CAPITAL RESOURCES

2020

2019

(in million euros)

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

167

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

(103)

Pension cash usage of the period

(30) (46) (51)

Restructuring provisions – cash usage of the period

Interest paid

Interest received Income tax paid

3

1

(12)

(12) (21)

2

Other items

(9)

Net operating cash generated from continuing activities

(81) (33)

70

Purchase of property, plant and equipment (PPE) Proceeds from sale of PPE and intangible assets

(70)

-

-

Purchase of intangible assets including capitalization of development costs

(75) (18)

(99)

Net operating cash generated from discontinuing operations

(11)

Free Cash Flow

(207)

(111)

Including IT capacity use for rendering in Production Services of (2)m€ in 2020 and (31)m€ in 2019. *

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

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

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 • €330 million at December 31, 2020. In addition, €56 million in cash collateral and security deposits was outstanding at December 31, 2020 to secure credit facilities and other Group obligations; cash generated from operating activities ; • 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; committed credit lines: at December 31, 2020 the Group had one • of credit line for an amount of €102 million secured by trade receivables the availability of which varies depending on the amount of receivables. For more information about the Group’s credit lines please refer to note 8.2.3 to the Group’s consolidated financial statements.

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; repayment or refinancing of debt: at each debt maturity date, • the Group must either repay or refinance the maturing amounts; dividends: in 2020 no dividends were paid, but the Group may have • to fund future dividends.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020