technicolor - 2018 Registration document

MESSAGE AUX ACTIONNAIRES

S H A R E H O L D E R MESSAGE

GRI  [102-14]

Technicolor is today a global leader in the Media & Entertainment sector benefiting from emerging market needs for more immersive, augmented digital life experiences. In 2018, Technicolor concluded the sale of its Patent Licencing business and it has recently announced the disposal of its Research and Innovation activities. Entering 2019, your Group is now able to focus fully on its world leading operational activities. Significant external headwinds hampered profitability in 2018, including in particular large costs increases for memory chips used by Connected Home and a weak demand for DVDs. Overall revenues from continuing activities reached almost €4bn, down 3% year-on-vyear at constant rate, but yet with a solid second half, up 3%. Your Group benefits from a solid financial structure, strong liquidity and no major debt reimbursement milestones before 2023. In Production Services, Technicolor continues to be positioned as a global leader benefiting from growing demand for high quality visual content, whether in the theatre or through streaming. In 2018, the Group established a presence in Adelaide, South Australia and the recent adoption of the French visual effects tax credit provides a new opportunity for the Group to develop an additional platform in France. Continued investment in capacity by taking advantage of our global footprint and efficiencies through new technology will support growth.

In DVD services, Technicolor is the worldwide leader in the replication, packaging and distribution of physical media for video, games and music. Key customer contract renegotiations will occur over the next several years and these are expected to lead to a transformation in the business model which will enable Technicolor to manage long term profitability. The Connected Home segment is today the global leader in broadband access. In 2018, the Group managed to significantly increase its market share in both Broadband Access and android based video solutions. The Group also launched a three-year transformation plan to improve its cost competitiveness with a view to achieving material growth.

Our objective is to pave the way towards profitable mid-term growth to the benefit of all our stakeholders.

Bruce HACK Independent Chairman of the Board of Directors

Frédéric ROSE Chief Executive Officer

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TECHNICOLOR REGISTRATION DOCUMENT 2018