technicolor - 2018 Registration document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS LIQUIDITY AND CAPITAL RESOURCES

Cash flow 2.3.2

2018

2017*

(in million euros)

Cash and cash equivalents at January 1

319

371 255

Net operating cash generated from continuing activities (I) Net investing cash used in continuing activities (II) Net financing cash used in continuing activities (III) Net decrease in cash and cash equivalents (I+II+III+IV) Exchange gains (losses) on cash and cash equivalents CASH AND CASH EQUIVALENTS AT DECEMBER 31 Net cash from discontinued activities (IV)

118

(156) (96)

(151) (29) (88) (13) (39)

105

(29)

1

291

319

2017 amounts are re-presented to reflect the impacts of discontinued operations (see note 12 to the Group’s consolidated financial statements). *

NET CASH GENERATED FROMOPERATING ACTIVITIES Continuing operations

Net Income from continuing operations was a loss of €224 million in 2018 compared to a loss of €168 million in 2017. Net operating cash generated from continuing operations amounted to €118 million in 2018, compared to €255 million generated in 2017. The variations between 2017 and 2018 are analyzed in the table below:

2018

2017* Variation

Comments on variations

(in million euros)

Profit (Loss) from continuing operations

Mainly related to significant non recurring expenses and impairments Mainly related to the impairment of DVD Services goodwill.

(224)

(168)

(56)

Summary adjustments to reconcile profit from continuing operations to cash generated from continuing operations: non-cash depreciation, amortization • and impairment of assets profit from continuing operations before • depreciation, amortization and impairment of assets Cash payments of the period related to provisions Non-cash P&L impact of the provisions of the period

325

249

76

101

81

20

(105)

(112)

7

89

74

15

Mainly related to higher restructuring provision in 2018. Various non-cash adjustments, including net interest expense, other non-cash items and changes in working capital

Other various adjustments

187

350 (163)

Operating Cash generated from continuing operations

171

312

(141)

Net interest paid and received

(39) (14)

(44) (13)

5

Income tax paid

(1)

NET OPERATING CASH GENERATED FROM CONTINUING ACTIVITIES 255 (137) The 2017 amounts are re-presented to reflect the impacts of Discontinued Operations (see note 12 of the Group’s consolidated financial statements). * 118

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TECHNICOLOR REGISTRATION DOCUMENT 2018