TECHNICOLOR_REGISTRATION_DOCUMENT_2017

2 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS Summary of results

SUMMARY OF RESULTS 2.1 [G4-EC1] [G4-DMA Economic performance] GRI 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 and results for 2016 have been re-presented accordingly. Revenues from continuing operations totaled €4,231 million in 2017, down 8.6% at current currency and down 6.8% at constant currency compared to 2016. 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 €291 million in 2017, down 19.0% at current currency and down 17.2% at constant currency compared to 2016, a decline wholly attributable to the Connected Home segment as memory price increases negatively impacted its Adjusted EBITDA by €80 million. The Adjusted EBITDA margin amounted to 6.9%, down by 90 points 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 €10 million in 2017 compared to a profit of €76 million in 2016. For more information, please refer to section 2.2.3: “Analysis of operating expenses and profit (loss) from continuing operations before tax and net finance costs” of this Chapter.

The Group’s net financial result was an expense of €97 million in 2017 compared to an expense of €154 million in 2016. For more information, please refer to section 2.2.4: “Net financial expenses” of this Chapter. The Group’s total income tax charge was €112 million in 2017 compared to a charge of 30 million in 2016. For more information, please refer to section 2.2.5: “Income tax” of this Chapter. Loss from continuing operations was €219 million in 2017 compared to a loss of €106 million in 2016. For more information, please refer to section 2.2.6: “Profit (loss) from continuing operations” of this Chapter. The Profit from discontinued operations was €46 million in 2017 compared to a profit of €80 million in 2016. 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 €173 million in 2017 compared to a loss of €26 million in 2016. For more information, please refer to section 2.2.8: “Net income (loss) of the Group” of this Chapter

RESULTS OF OPERATIONS FOR 2016 AND 2017 2.2 [G4-EC1] [G4-DMA Economic performance] GRI

The revenues, Adjusted EBITDA, operating expenses and profit (loss) from continuing operations before tax and net finance costs for the years 2016 and 2017 are presented below for each of the Group’s operating segments – Connected Home, Entertainment Services and Corporate & Other.

The Group’s results are presented in accordance with IFRS 5. Consequently, the contributions of discontinued operations are presented 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.

32

TECHNICOLOR REGISTRATION DOCUMENT 2017