technicolor - 2018 Registration document

2 OPERATING AND FINANCIAL REVIEW AND PROSPECTS SUMMARY OF RESULTS

SUMMARY OF RESULTS 2.1 GRI [103-3 Economic performance] [201-1] Due to the announcement of the divesture of the Patent Licensing business in December 2017, results pertaining to this business for 2017 were reported as discontinued operations. In 2018, the latter include the results of this business until disposal, the gain on sale to InterDigital on July 30, 2018 and the results of the Research & Innovation activity, which sale is highly probable further to the announcement by the Group of exclusive negotiations with InterDigital on February 11, 2019. Revenues from continuing operations totaled €3,988 million in 2018, down 6.2% at current currency and down 2.9% at constant currency compared to 2017. For more information, please refer to section 2.2.1 “Analysis of revenues from continuing operations” of this Chapter. Adjusted EBITDA from continuing operations reached €266 million in 2018, down 21.8% at current currency and down 16.6% at constant currency compared to 2017, a decline mainly attributable to the Connected Home segment as net components increases negatively impacted its Adjusted EBITDA by €45 million and DVD Services lower revenue impact. The Adjusted EBITDA margin amounted to 6.7%, down by 130 bps year-on-year. For more information, please refer to sections 2.2.2 “Analysis of adjusted EBITDA from continuing operation” and 2.2.9 “Adjusted indicators” of this Chapter. Loss from continuing operations before tax and net finance costs was €119 million in 2018 compared to a profit of €40 million in 2017. For

more information, please refer to section 2.2.3 “Analysis of operating expenses and profit (loss) from continuing operations before tax and net financial expense” of this Chapter. The Group’s net financial result was an expense of €51 million in 2018 compared to an expense of €96 million in 2017. For more information, please refer to section 2.2.4 “Net financial expense” of this Chapter. The Group’s total income tax charge was €54 million in 2018 compared to a charge of €112 million in 2017. For more information, please refer to section 2.2.5 “Income tax” of this Chapter. Loss from continuing operations was €224 million in 2018 compared to a loss of €168 million in 2017. For more information, please refer to section 2.2.6 “Profit (loss) from continuing operations” of this Chapter. The result from discontinued operations was a profit of €157 million in 2018 compared to a loss of €5 million in 2017. For more information, please refer to section 2.2.7“Profit (loss) from discontinued operations” of this Chapter. The Group’s consolidated net income was a loss of €67 million in 2018 compared to a loss of €173 million in 2017. For more information, please refer to section 2.2.8 “Net income (loss) of the Group” of this Chapter.

RESULTS OF OPERATIONS FOR 2017 AND 2018 2.2 GRI [103-3 Economic performance] [201-1]

The Group’s results are presented in accordance with IFRS 5. Consequently, the contributions of discontinued operations are disclosed on one line in the consolidated statements of operations, named “Net profit (loss) from discontinued operations” and are presented separately under section 2.2.7 “Profit (Loss) from Discontinued Operations” of this Chapter.

The revenues, Adjusted EBITDA, operating expenses and profit (loss) from continuing operations before tax and net financial expense for the years 2017 and 2018 are presented below for each of the Group’s operating segments – Entertainment Services, Connected Home and Corporate & Other.

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TECHNICOLOR REGISTRATION DOCUMENT 2018