PRESENTATION OF THE GROUP AND ITS SOCIAL INFORMATION AND 1 ACTIVITIES ................................................................................................................................................................................................................................ 5 6 SUSTAINABILITY ....................................................................................................................................................................................... 111 1.1 Selected financial information ........................................................................................................................ 6 6.1 Employees and workforce ...................................................................................................................................... 112 1.2 History and strategy of the Company .................................................................................... 8 6.2 Environmental matters .................................................................................................................................................. 126 1.3 Business overview ................................................................................................................................................................................. 15 6.3 Stakeholder relations and local impacts of the Company’s activities ............................................................................................................................................................ 137 6.4 Supplier and sub-contractor relations .............................................................................. 138 OPERATING AND FINANCIAL REVIEW 6.5 Technicolor Foundation for cinema heritage .............................................. 139 AND PROSPECTS .......................................................................................................................................................................................... 25 6.6 Report of the statutory auditors, designated 2 as independent third-party entity, on the 2.1 Overview .................................................................................................................................................................................................................... 26 review of environnmental, social and societal 2.2 Trends in Technicolor eco-systems ............................................................................................ 26 information published in the Group 2.3 Summary of results .................................................................................................................................................................... 27 management report .................................................................................................................................................................. 141 2.4 Seasonality ............................................................................................................................................................................................................ 28 2.5 Geographic breakdown of revenues and effect of exchange rate ADDITIONAL INFORMATION ............................................................................................................... 145 fluctuations .......................................................................................................................................................................................................... 28 2.6 Events subsequent to December 31, 2013 ............................................................... 30 7 7.1 Property, plant and equipment .......................................................................................................... 146 2.7 Notification of interests acquired in the share 7.2 Memorandum and Bylaws .................................................................................................................................. 148 capital of French companies in 2013 ......................................................................................... 30 7.3 Material contracts ........................................................................................................................................................................ 150 2.8 Notification of interests acquired in the share 7.4 Additional tax information ............................................................................................................................. 150 capital of French companies in 2012 ......................................................................................... 31 7.5 Organization of the Group ............................................................................................................................ 151 2.9 Results of operations for 2012 and 2013 ........................................................................ 31 7.6 Available documents .................................................................................................................................................... 154 2.10 Liquidity and capital resources ................................................................................................................. 39 7.7 Information on accounting services ....................................................................................... 154 2.11 Priorities and objectives for 2014 ...................................................................................................... 48 7.8 Statutory Auditors fees ............................................................................................................................................... 155 7.9 Persons responsible for the Registration Document and the Annual Financial Report .............................................. 156 RISK FACTORS ........................................................................................................................................................................................................ 49 3 3.1 Risk related to the financial structure .................................................................................. 50 FINANCIAL STATEMENTS .................................................................................................................................. 157 3.2 Market risks ........................................................................................................................................................................................................ 52 3.3 Risks related to the business ............................................................................................................................ 53 8 8.1 Technicolor 2013 consolidated financial 3.4 Other risks .............................................................................................................................................................................................................. 59 statements ........................................................................................................................................................................................................... 158 3.5 Insurance ..................................................................................................................................................................................................................... 62 8.2 Notes to the consolidated financial statements ........................................................................................................................................................................................................... 164 8.3 Statutory auditor’s report on the consolidated ............................................................................................................................................................ CORPORATE GOVERNANCE AND financial statements 252 8.4 Technicolor SA parent company financial INTERNAL CONTROL ................................................................................................................................................................ 63 4 statements ........................................................................................................................................................................................................ 254 4.1 Board of Directors ......................................................................................................................................................................... 64 8.5 Notes to the parent company financial 4.2 Chairman’s report on corporate governance, statements ......................................................................................................................................................................................................... 257 internal control and risk management 73 8.6 Parent company financial data over the five 4.3 Statutory Auditors' report prepared in last years (under articles R. 225-81 and accordance with article L. 225-235 of French R. 225-102 of the French Commercial Code) ....................................... 278 company law (Code de commerce) on the 8.7 Statutory auditors’ report on the financial report prepared by the Chairman of the Board statements for the year ended December 31, of Directors of the company ..........................................................................................................................