technicolor - 2018 Registration document

ADDITIONAL INFORMATION

PROPERTY, PLANT AND EQUIPMENT

Post Production, VFX and Animation Following the rapid shift to digital production since 2010, the Company has downsized or transferred Digital Cinema distribution, Media Services and photochemical films activities. 2018 activities were focused on picture and sound post production services and on VFX and Animation services. For more information, please refer to section 1.2.1.1 “Production Services” of this Registration Document.

MANUFACTURING, PRODUCTION AND DISTRIBUTION GRI [102-7]

Technicolor’s manufacturing, production, and distribution facilities accounted for 91.55% of its facilities space, at the end of 2018. The location of each significant facility can be found in the table above. Technicolor’s respective business segments have varying approaches to performing these activities; each is discussed in turn below. DVD Replication and Distribution Global distribution and supply chain activities are provided in-house and through a network of contracted Third-Party Logistic Providers (3PLs). In markets where distributed unit volumes are sufficient, Technicolor completes all distributions and logistics activities in-house. In smaller markets, or where other considerations prevail, these activities are completed by 3PL’s on Technicolor’s behalf. In North America and Australia, the Group distributed 100% in-house; in Europe, approximately 62% in-house and approximately 38% by 3PL’s.

Set-Top Box, Gateways, and Connected Devices

In 2018, Technicolor shipped a total of about 39.1 million modems and gateways, Set-Top Box, and other Connected Devices. Overall, around 9.6% of the Group’s total volume has been manufactured in-house, with the rest of its volumes being outsourced to partners in Asia, Mexico and Argentina.

The total in-house manufacturing and replication output for the Group can be found in the table below for 2018:

In-house Manufacturing and Replication

Number of Units

Entertainment Services DVD replication Blu-ray TM Replication

787 million DVDs

342 million Blu-ray TM discs Over 300 feature films Over 470 series, pilots& other non-theatrical projects

Theatrical post production (picture & sound)

Broadcast & streaming post production (picture & sound)

VFX shots for theatrical feature films VFX shots for TV & streaming content

Over 12,000 shots Over 3,100 shots

VFX/Post for advertising

Over 5,750 commercial spots Over 2,600 minutes delivered

Animation for films, TV & streaming

Animation asset creation services for films, TV & streaming

Over 5,200 computer-generated assets

Games production (Animation)

Over 1,600 minutes delivered

Games production (asset creation services)

Over 9,750 computer-generated assets

Connected Home Modems and gateways, Set-Top Box and other Connected Devices

3.77 million units

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TECHNICOLOR REGISTRATION DOCUMENT 2018