Universal Registration Document 2021

1 PRESENTATION OF THE GROUP ORGANIZATION AND BUSINESS OVERVIEW

Customer concentration Technicolor’s customer base includes most of the largest Pay-TV operators and Network Service Providers worldwide. Connected Home top 20 customers make up approximatively 75% of the total market (excluding China), and Technicolor holds a material market share position with each of them. 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

Latin America

Asia-Pacific

2021 2020

Revenues

855 980

139 206

324 336

226 242

(in million euros)

Transformation Plan During 2018, Connected Home decided to launch a three-year transformation program to adapt itself to prevailing market conditions and subsequent consolidation facing our industry. This program includes a customer “selectivity” plan to better achieve product synergies and develop stronger partnerships with key suppliers and partners to improve product costing, competitiveness, and time to market. The plan includes reducing the annual fixed cost structure by 40% over a three-year period, representing c. €140 million savings versus 2017. Total costs associated with this plan amount to c. €90 million, with an average pay-back of less than 15 months. At the end of December 2020, the division completed successfully the transformation plan. Selective investments in key customers, and a platform-based products approach focused on broadband and Android TV segments, combined with strategic partnerships with key suppliers and aggressive investment in process re-engineering, have generated a significant increase in the productivity and competitiveness of Connected Home in the marketplace. Connected Home has improved its margins and its market share over the last years, despite facing many market, industry and global challenges. Connected Home continued to launch programs during 2020 and 2021 to improve productivity and efficiencies in all parts of its operation.

Connected Home recorded strong commercial activity in 2021 in North America, in particular with major cable operators in broadband solutions, despite logistics and component challenges. Driven by this North American broadband activity, Connected Home is continuing to take the worldwide leadership role in DOCSIS 3.1 deployments, both in volume and value. In Europe, Middle-East and Africa, Connected Home continued to add new Android TV and DOCSIS 3.1 wins, both product groups adding revenue fuel for the coming years. The segment succeeded in maintaining a solid position in telecom and cable gateways and in all categories of Set-Top Box. Connected Home is well established in Latin America, serving the major operators in this region. New wins in both broadband and Video have put us on a path for growth in 2022. In Asia-Pacific, Connected Home is focusing on the markets with high volumes and added value products. The largest product categories in this market are Android TV products and Satellite Set-Top Box, while Broadband gateways are large in some areas.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021