technicolor - 2018 Registration document

PRESENTATION OF THE GROUP

ORGANIZATION AND BUSINESS OVERVIEW

Corporate & Other 1.2.3 GRI [102-2]

Discontinued operations 1.2.4 GRI [102-10] [102-49] Technicolor has finalized a number of disposals over the last few years, the results of which are, under certain criteria, reported as discontinued operations under IFRS. For a description of the financial implications of discontinued operations on the Group’s results of operations, please refer to Chapter 2: “Operating and Financial Review and Prospects”, section 2.2.7: “Profit (loss) from discontinued operations”. Technicolor announced, on December 18, 2017, it decided to sell its Patent Licensing business and was in advanced negotiations with a third party. As a result, the Group reported the financial information of its Patent Licensing business, previously included in the Technology segment, under Discontinued operations. On July 30, 2018, the Group concluded the sale to InterDigital excluding some mobile patents, a small number of patents for nascent technologies and some patents associated with patents tools. Technicolor announced, on February 11, 2019, it has received a binding offer and entered into exclusive negotiations with InterDigital for the sales of its R&I activity. As a result, the Group reported the financial information of this activity, previously included in the Corporate & Other segment, under Discontinued operations. 2017 results were re-presented for comparative purposes. R&I aims at fostering organic growth in close collaboration with the businesses by innovating in next generation video technologies and experiences. A solution-driven-portfolio is built to serve content creators, particularly Hollywood Studios, Network Service Providers and Consumer Electronics manufacturers when facing the technology challenges of emerging formats and digital platforms. Under this model, R&I and the operating businesses sustain a joint project portfolio driven to maximize impact with a clear path to deployment. R&I employs around 180 world-class researchers and scientists as of December 31, 2018, with a mix of scientists and engineers with skills spanning from video compression, color science, computer vision and computer graphics, to emerging fields such as Virtual/Augmented Reality, light fields, cognitive science, human/computer interaction, network virtualization, heterogeneous networks and deep/machine learning.

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The “Corporate & Other” segment comprises unallocated corporate functions and all other continuing activities. Corporate & Other operations are as follows: Trademark Licensing business monetizes valuable brands such as • RCA™ and Thomson™ which were operated by the Group when it was a leading stakeholder in the Consumer Electronics business. Trademarks create business and market opportunities for licensing partners around the globe, which benefit from a complete brand service including rights management & protection, quality insurance, marketing and design. Main product categories developed are Television, Tablets, Home appliances with an increased market and awareness presence in EMEA, North and South America; Patent Licenses, which have not been sold to Interdigital and which • monetize valuable patents such as MPEG-LA and various others; post-disposal service operations and commitments related to former • consumer electronics operations, mainly pension and legal costs; unallocated Corporate functions, which comprise the operation and • management of the Group’s Head Office, together with various Group functions centrally performed, such as sourcing, Human Resources, IT, Finance, Marketing and Communication, Corporate legal operations and real estate management, and that cannot be strictly assigned to a particular business within the two operating segments.

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TECHNICOLOR REGISTRATION DOCUMENT 2018