technicolor - 2018 Registration document

1 PRESENTATION OF THE GROUP ORGANIZATION AND BUSINESS OVERVIEW

Production Services in 2018 launched “The Focus” to consolidate talent other service lines in the coming years. The division also launched the recruitment across all business units within the Film & TV VFX service Technicolor Academy across multiple locations to serve as training line to make more efficient the global recruiting process, identify new camp/finishing schools for aspiring digital artists to support the talent pools, facilitate international mobility and fill the expansion in continuous need for future talent. capacity. The Focus will be rolled out across all of Production Services’

Post Production

Animation & Games

Film & TV VFX Advertising

PS BRANDS

Primary Focus Areas

Locations

London, Montreal, Vancouver, LA, Bangalore, Mumbai

• VFX for tentpole films, servicing all major studios Mid-sized VFX projects for theatrical/ streaming films and higher-end episodics VFX for TV/OTT and genre/ international films VFX, production & delivery for agencies, production companies and brands

MPC Film

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Montreal, Adelaide, Bangalore

Mill Film

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London, LA, NY, Amsterdam, Paris, Shanghai, Bangalore London, LA, NY, Chicago, Mumbai, Bangalore Toronto, Montreal, Bangalore

Mr. X

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The Mill

VFX & production for agencies, production companies and brands

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MPC Advertising

• Feature animation VFX/Post services in France for Film/TV & Advertising

Paris, Montreal, London, Brussels, Liege, Bangalore

Mikros

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LA, Toronto, London, Paris, Vancouver, Bangalore

Film & TV/OTT post, including beauty fixes & other just-in-time VFX Animation services for TV/OTT & Games

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Technicolor

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Technicolor’s Advertising businesses are well-positioned to address this market evolution and utilize emerging technologies to create the high-end imagery required by advertisers across all screens and experiences, strengthening its leadership in high-end advertising content creation and immersive experiences. The digital post production market is relatively mature, and the demand is mainly driven by new theatrical and TV productions. Technicolor focuses on key talent production hubs to increase its market share with tentpole movies, while reinforcing its leading position on premium content for TV broadcasters and OTT providers. While the major studios’ CGI animated films lead the Feature Animation box office, there is growth in the number of mid-level budgeted animated features, like Warner Bros.’ Smallfoot, being produced each year as studios have become more open to outsourcing Feature Animation services and as OTT providers like Netflix invest significantly in animated original content. The Games services market is expanding as mobile game developers have become a more relevant market as mobile game art quality increases. Broadening the Group’s position in these two emerging markets is a key element of the Technicolor growth strategy.

Approximately 10,300 people (including approximately 7,900 digital artists) worked for the Production Services Division at the end of December 2018 in India (43%), Canada (21%), USA (16%), UK (15%), and France and Other (5%). Industry trends and market position The demand for high-end content creation has increased significantly over the past few years, driven by the strong development of premium original content across all segments, particularly by OTT providers like Netflix, Amazon and Hulu; in addition to continued growth from the U.S. major studios in VFX-heavy feature film tentpoles and franchises like Disney’s Marvel Cinematic Universe and Warner Bros.’ DC Extended Universe. This is anticipated to grow even further with the future launches of streaming platforms by Apple, Disney, NBCUniversal, WarnerMedia, and others. As a global market leader in Film & TV VFX, Technicolor continues to focus its resources in these activities to benefit from the market growth and volume. As global digital advertising spend continues to grow faster past traditional television advertising spend, and as rapidly evolving consumer technology choices drive new advertising content and device formats,

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TECHNICOLOR REGISTRATION DOCUMENT 2018