TECHNICOLOR_REGISTRATION_DOCUMENT_2017

1 - PRESENTATION OF THE GROUP Organization & business overview

R&I is organized around four Laboratories (Imagine Science, _ immersive, Artificial Intelligence and Home Experience) which aim at developing breakthrough technologies that not only provide solutions to current industry challenges, but also lead the way towards new business opportunities. Each Laboratory concentrates on complementary technological areas in order to ensure a broad array of in-depth scientific excellence and to maintain comprehensive coverage of the key Technology domains that drive the Media & Entertainment markets, In addition to its core research pillars, Technicolor conducts a _ number of exploratory programs with the ambition to foster new-to-market innovation proposals that allow significant competitive advantage, As innovation time to market shortens year after year, R&I teams _ carefully monitor emerging trends to understand where the Media & Entertainment industry is headed. The Group invests in a forward-looking, ambitious research agenda for tomorrow, fostering open research with industrial partners and academics to transform current ecosystems; Trademark Licensing business monetizes valuable brands such as ■ RCA™ and Thomson™ which were operated by the Group when it was a leading stakeholder in the Consumer Electronics business. DISCONTINUED 1.2.4 OPERATIONS [G4-13] [G4-23] GRI Technicolor has finalized a number of disposals over the last few years, the results of which are, under certain criteria, reported as discontinued operations under IFRS. For a description of the financial implications of discontinued operations on the Group’s results of operations, please refer to Chapter 2: “Operating and Financial Review and Prospects”, section 2.2.7: “Profit (loss) from discontinued operations”. Technicolor announced, on December 18, 2017, it decided to sell its patent Licensing business and was in advanced negotiations with a third party. As a result, the Group reported the financial information of its patent Licensing business, previously included in the Technology segment, under Discontinued operations. 2016 results were re-presented for comparative purposes.

The Patent Licensing business was organized around four key pillars and has been maximizing its efforts to increase the performance of Licensing programs derived from these pillars: digital TV program : Technicolor and Sony developed a joint ■ Licensing program for Digital Television (“DTV”) and Computer Display Monitors (“CDM”) with Technicolor being the exclusive Patent Licensing agent; video Coding program : Technicolor has developed a very ■ complete portfolio of patented compression technologies and Technicolor has been investing in compression technologies for years, including work on the most advanced standards such as HEVC, ATSC 3.0 and DVB, which are implemented in existing products and will be implemented in future products; smartphone & Tablet program : Technicolor has also a valuable ■ patent portfolio for Smartphone and Tablets, that seems more difficult to license but includes patent assets that Technicolor believes significant for that field. Since the launch of this Licensing program, Technicolor signed two agreements (Sony and LG); connected Home program : this program consists in Licensing the ■ IP portfolio covering technologies embedded in set-top-boxes and gateways. Technicolor owns key patents covering a broad array of technologies such as, for example, video broadcasting technologies, security, user interface, wifi, personal video recording, to name a few.

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TECHNICOLOR REGISTRATION DOCUMENT 2017