technicolor - 2019 Universal registration document

1 PRESENTATION OF THE GROUP ORGANIZATION AND BUSINESS OVERVIEW

ORGANIZATION AND BUSINESS OVERVIEW 1.2 GRI [102-2]

Production services 1.2.1

GRI [102-2] [102-6] [103-1 Market presence] [103-2 Market presence] [103-3 Market presence]

BUSINESS OVERVIEW Technicolor offers award-winning Visual Effects (“VFX”), Animation and Post Production services for feature films, TV series, advertising, video games and other audiovisual content. The Group’s VFX studios offer pre-visualization, asset creation, texturing, animation, rigging, rotoscoping, lighting, match move and compositing. Technicolor’s Animation businesses offer solutions for the creation of high-quality Computer-Generated Imagery (“CGI” or “CG”) Animation. Through its Post Production Services activities, Technicolor supports its clients from camera capture on the production set through creation of final distribution masters, including on-set services, color correction, and VFX integration. The division works primarily on an individual project basis and builds teams and workflows around key creative and production talent. Production Services also builds dedicated teams and spaces for clients who desire guaranteed capacity and talent across multiple projects. ORGANIZATION Production Services is organized under four primary service lines – Film & Episodic VFX, Advertising, Animation & Games, and Post Production – to foster deeper collaboration and synergies among complementary brands within each service line. This also reinforces the division’s drive towards innovation, as this structure positions Technicolor to lead future technological waves across its primary market segments. Technicolor continued hiring additional talent to support its brands while further optimizing its resource allocation among key production-incentivized or cost-advantageous geographies and expanding into new ones, including the opening of The Mill in Berlin, Germany and Technicolor Post in Cardiff, Wales. In addition, the Group expanded capacity in Montreal, Canada and in Bangalore and Mumbai, India; while Mill Film moved into its permanent facility in Adelaide, Australia.

Because capacity growth requires investment in computing power, render farms, and storage, Technicolor views efficient, well-managed external cloud use as an essential way to complement and limit capital-intensive hardware investments. As a result, in 2019 Technicolor began a strategic partnership with Microsoft based on its Azure cloud computing platform. Technicolor will continue to build momentum as the global media industry cloud leader, providing the best client services at the lowest possible cost, and continue to develop state-of-the-art workflows and software applications to further improve quality and efficiency of its services. In 2018, the division also launched “The Focus” to consolidate talent recruitment across all business units within the Film & Episodic VFX service line to make more efficient the global recruiting process, identify new talent pools, facilitate international mobility and fill the expansion in capacity. The scope of The Focus has since extended to the recruitment needs of Production Services’ other service lines. The division also launched in 2018 the Technicolor Academy across multiple locations to serve as training camp/finishing schools for aspiring digital artists to support the continuous need for future talent. In 2019, Technicolor Academy trained over 640 artists across its primary hubs in Montreal, Bangalore, and Adelaide. Technicolor has also established an apprenticeship pilot program in London and a production management training program in Montreal to improve the accessibility of the VFX industry and promote diversity.

12

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019