TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Entertainment

Corporate & Other* (2)

Services Connected Home

Adj

TOTAL

Year ended December 31, 2016 (3)

(in million euros)

STATEMENT OF OPERATIONS ITEMS Revenues

1,966

2,637

25

-

4,628

Intersegment sales

3

-

1

(4)

-

Earning before interest & tax (EBIT) from continuing operations

76

113

(113)

-

76

Of which:

Net impairment losses on non-current operating assets

(3)

(10)

-

-

(13)

Restructuring costs

(17)

(11) (14) (73)

(16)

- - - - -

(44)

Other income (expenses) Depreciation & amortization

8

7

1

(147)

(4) (3)

(224)

Other non-cash items (1)

(3)

3

(3)

Adjusted EBITDA

238

218

(97)

359

STATEMENTS OF FINANCIAL POSITION ITEMS Segment assets

1,755

1,522

178

-

3,455

Unallocated assets

926

TOTAL CONSOLIDATED ASSETS

4,381

Segment liabilities Unallocated liabilities

639

1,081

661

-

2,381 1,296

TOTAL CONSOLIDATED LIABILITIES

3,677

OTHER INFORMATION Net capital expenditures

(74) 693

(75)

(3)

- -

(152)

Capital employed

141

(119)

715

Formerly Other.

* Mainly variation of provisions for risks, litigations and warranties. (1) Following the presentation of the Patent Licensing business as Discontinued Operations, "Trademark Licensing" and "Research & Innovation", formerly reported as part of the (2) Technology segment, have been included in the Corporate & Other segment. 2016 amounts are re-presented to reflect the impacts of Discontinued Operations (see note 12). (3)

The following comments are applicable to the two tables above: the caption “Adjusted EBITDA” corresponds to the profit (loss) ■ from continuing operations before tax and net financial income (expense), net of other income (expense), depreciation and amortization (including impact of provision for risks, litigation and warranties); the captions "Total segment assets" and “Total segment liabilities” ■ include all operating assets and liabilities used by a segment; the caption "Unallocated assets" includes mainly financial assets, ■ deferred and income tax assets, cash and cash equivalents and assets classified as held for sale;

the caption "Unallocated liabilities" includes mainly the financial ■ debt, deferred and income tax liabilities and liabilities classified as held for sale; the caption "Net capital expenditures" includes cash used related ■ to tangible and intangible capital expenditures, net of cash received from tangible and intangible asset disposals; the caption "Capital employed" is defined as being the aggregate ■ of both net tangible and intangible assets (excluding goodwill), operating working capital and other current assets and liabilities (except for provisions including those related to employee benefits, income tax, payables on acquisition of companies and payables to suppliers of PPE and intangible assets).

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TECHNICOLOR

REGISTRATION DOCUMENT 2017