TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 1 PRESENTATION OF THE GROUP Organization & business overview

Customer concentration ■ Technicolor’s customer base includes most of the largest Pay-TV operators and Network Service Providers worldwide. The Group’s top 20 customers make up approximatively 46% of the total market, and Technicolor holds a material market share position at each.

Technicolor’s main customers include America Movil, AT&T (DIRECTV), CenturyLink, Charter Comcast, Cox, Liberty Global, Megacable, Proximus, Tata Sky, Telecom Italia, Telefonica, Telstra, Telus, and Vodafone...

By Geography ■

Europe, Middle-East & Africa

North America €1,364 million €1,380 million

Latin America €324 million €409 million

Asia-Pacific €297 million €256 million

Revenues

2017 2016

€434 million €592 million

Volumes (in million units)

Video

11,031 6,043 17,074

2,269 4,910 7,129

6,135 4,300 10,435

6,151 2,065 8,216

Broadband

Total

CORPORATE & OTHER

1.2.3

Connected Home recorded strong commercial activity in 2017 in North America, in particular with major cable operators. The acquisition of Cisco Connected Devices has allowed Technicolor to significantly increase its penetration of the North American market with several deployments of flagship products. Connected Home was affected by the demand weakness in the Europe, Middle-East, Africa region. This was exacerbated by some delays in the roll-out of new products. The Group succeeded in maintaining a solid leadership in telecom and cable gateways and in OTT boxes. Notwithstanding a difficult macro-economic environment, the Latin America market continues to experience strong demand for broadband and Pay-TV services. Technicolor, well established in the region, with a high market share both in value and volume. In Asia-Pacific, Connected Home is not present in all markets and is focusing where the Group can build solid market positions. The largest segments of this market are digital satellite set top boxes and telecom broadband gateways. In 2017, Connected Home recorded solid growth in South Korea and in Japan, where Technicolor wants to grow its position, following investment in LG and Pioneer.

[G4-4]

GRI

The “Corporate & Other” segment comprises unallocated corporate functions and all other continuing activities. Corporate & Other operations are as follows: unallocated Corporate functions, which comprise the operation and ■ management of the Group’s Head Office, together with various Group functions centrally performed, such as sourcing, Human Resources, IT, finance, marketing and communication, corporate legal operations and real estate management, and that cannot be strictly assigned to a particular business within the two operating segments; post-disposal service operations and commitments related to ■ former consumer electronics operations, mainly pension and legal costs; Research & Innovation (“R&I”) aims at fostering organic growth in ■ close collaboration with the businesses by innovating in next generation video technologies and experiences. A solution-driven-portfolio is built to serve content creators, particularly Hollywood Studios, Network Service Providers and Consumer Electronics manufacturers when facing the Technology challenges of emerging formats and digital platforms. Under this model, R&I and the operating businesses sustain a joint project portfolio driven to maximize impact with a clear path to deployment: R&I employs around 180 world-class researchers and scientists as _ of December 31, 2017, with a mix of scientists and engineers with skills spanning from video compression, color science, computer vision and computer graphics, to emerging fields such as virtual/augmented reality, light fields, cognitive science, human/computer interaction, network virtualization, heterogeneous networks and deep/machine learning,

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TECHNICOLOR

REGISTRATION DOCUMENT 2017