technicolor - 2018 Registration document

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

STRATEGY UPDATE AND GUIDANCE

STRATEGY UPDATE AND GUIDANCE 2.4 GRI [102-15] [103-2 Economic performance]

Strategy update In 2018, Technicolor increased its investments in organic growth in Production Services and in the transformation program in Connected Home. These initiatives are expected to continue over the next few years in well-defined areas. Specifically: the Group will continue to build upon its strong position as worldwide • leader in Production Services by increasing capacity (in particular in India, France, Australia and Canada), while continuing to improve profitability; in Connected Home, the benefits from the implementation of the • ongoing transformation plan and the expected improvement in components availability and pricing, will enable the Group to invest in EVENTS SUBSEQUENT 2.5 TO DECEMBER 31, 2018 GRI [102-10] [102-48] [102-49] [103-1 Economic performance] On February 11, 2019, the Group announced being in exclusive negotiations with InterDigital for the divestiture of his Research & Innovation activity. This transaction would amend the contingent consideration to be received on the sale of the Patent Licensing business by reducing by 50% the future cash receipt and cancel the Research Cooperation Agreement as described above In 2018 financial statements, the Research & Innovation activity is classified in the Discontinued Operations together with the Patent Licensing business, as the sale is considered highly probable according to

market share gains in broadband access and Android based video solutions which will lead to improving margins over the next several years; in DVD Services the Group expects to start renewing contracts with • its major customers on improved trading terms over the next several years to reflect structural reductions in volumes. Guidance The Group will no longer provide specific numerical guidance for the current or future financial years. It will continue to pursue leverage reduction through improved profitability and cash generation.

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IFRS 5. 2017 financial statements have been restated accordingly. Research & Innovation’s assets and liabilities, mainly the deferred income related to the future services to be rendered, have been transferred in Assets and Liabilities held for sale in 2018. There were no other events that have a material impact on the financial status that occurred between the Statement of the Financial Position date and February 27, 2019, the date when the Board of Directors authorized the Consolidated Financial Statements for issue.

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TECHNICOLOR REGISTRATION DOCUMENT 2018