TECHNICOLOR_REGISTRATION_DOCUMENT_2017

1 - PRESENTATION OF THE GROUP Organization & business overview

Technicolor believes it has the most efficient cost base in the packaged media industry, and the Group continuously seeks to implement further operational and productivity improvements. Technicolor is also actively diversifying its business outside of packaged media, offering supply chain solutions, including transportation management and direct-to-consumer fulfillment services, for clients across a variety of consumer product and related segments. Industry trends and market position While at an industry level, global shipments of packaged media products have declined in recent years and are expected to continue to decline, Technicolor believes it is well positioned to outperform overall market trends, driven by increased penetration of existing customers and the addition of new customers. The package media business has proven to be more resilient than general market expectations. Technicolor believes there will be continuing significant consumer demand for physical ownership of content. Given a highly variable cost structure, activity optimization and cost reductions as well as ongoing revenue diversification efforts, Technicolor expects to maintain profitability in this maturing market environment. As a global market leader, Technicolor’s key customers include major Hollywood Studios such as Warner Bros., The Walt Disney Company, Paramount, Universal, Fox and Lionsgate, independent film studios, software and games publishers, and major music publishers including Universal Music group and Warner Music group. Most major customers are covered by multi-year contracts (generally, two to four years), which typically contain volume exclusivity and/or time commitments. Major client relationships typically consist of multiple contractual arrangements for specific types of services within specific geographical areas. Technicolor’s key competitors in the DVD market include in Europe Sony and Arvato. Revenue highlights Technicolor sold a total of 1,345 million DVD, Blu-ray™ discs and CD, in 2017 compared with 1,552 million discs in 2016. Operations are supported by approximately 12 million square feet of dedicated replication and distribution space, with unique capability for the timely delivery of discs to more than 40,000 locations.

Volumes by format

Blu-ray TM 23%

2017

22%

SD-DVD 71%

CD 6%

69%

2016

9%

Volumes by segment

Music & Audio 6%

Software & Kiosk 1% Games 4%

2017

9% 4%

2%

Theatrical/Broadcast 89%

85%

2016

Selected major feature film titles produced by Technicolor in 2017 included: Rogue One: A Star Wars Story (Disney), Moana (Disney) Beauty and the Beast (Disney), Guardians of the Galaxy Volume 2 (Disney), Fantastic Beasts and Where to Find Them (Warner Bros), Dunkirk (Warner), Wonder Woman (Warner), Sing (Universal), The Fate of the Furious (Universal), Despicable Me 3 (Universal), Trolls (Fox), Logan (Fox), War for the Planet of the Apes (Fox), Transformers: The Last Knight (Paramount), and John Wick, Chapter Two (Lionsgate). Major games produced in 2017 included; Destiny 2 (Activision); Call of Duty WWII (Activision); Star Wars Battlefront II (Electronic Arts), FIFA 2018 (Electronic Arts), Assassins Creed: Origins (Ubisoft), NBA 2K18 (Take Two Interactive).

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TECHNICOLOR REGISTRATION DOCUMENT 2017