technicolor - 2019 Universal registration document

PRESENTATION OF THE GROUP ORGANIZATION AND BUSINESS OVERVIEW

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Film & Episodic VFX Advertising

Post Production

Animation & Games

PS BRANDS

Primary Focus Areas

Locations

London, Montreal, LA, Bangalore, Mumbai

• VFX for tentpole films, servicing all major studios Mid-sized VFX projects for theatrical/ streaming films and higher-end episodics VFX for TV/OTT and genre/ international films • • VFX, production & delivery for agencies, production companies and brands •

MPC Film

Montreal, Adelaide, Bangalore

Mill Film

London, LA, NY, Amsterdam, Paris, Shanghai, Bangalore London, LA, NY, Chicago, Mumbai, Bangalore, Berlin Toronto, Montreal, Bangalore

Mr. X

The Mill

VFX & production for agencies, production companies and brands

MPC Advertising

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• Feature animation VFX services in France for Film/TV & Advertising •

Paris, Montreal, London, Brussels, Liege, Bangalore

Mikros

LA, Toronto, London, Paris, Bangalore, Cardiff

Film & TV/OTT post, including beauty fixes & other just-in-time VFX Animation services for TV/OTT & Games

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Technicolor

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Approximately 10,500 people (including approximately 8,100 digital artists) worked for the Production Services Division at the end of December 2019 in India (48%), Canada (18%), USA (14%), UK (11%), and France and Other (9%). INDUSTRY TRENDS AND MARKET POSITION The demand for high-end content creation has increased significantly over the past few years, driven by the strong development of premium original content across all segments, particularly by OTT providers like Netflix, Amazon and Hulu; in addition to continued growth from the U.S. major studios in VFX-heavy feature film tentpoles and franchises like Disney’s Marvel Cinematic Universe and Warner Bros.’ DC Extended Universe. This demand for premium original content is now growing even further with the launches in 2019 of major streaming platforms like Apple TV+ and Disney+, and the upcoming 2020 launches of NBCUniversal’s Peacock, WarnerMedia’s HBO Max, Quibi and others. As a global leader in Film & Episodic VFX and high-end CG Animation services, Technicolor continues to focus its resources on these areas to benefit from the market growth and volume. As global digital advertising spend continues to grow faster than traditional television advertising spend, and as rapidly evolving consumer technology choices drive new advertising content and device formats, Technicolor’s Advertising businesses are well-positioned to address this

market evolution and utilize emerging technologies to create the high-end imagery required by advertisers across all screens and experiences, strengthening its leadership in high-end advertising content creation and immersive experiences. The digital post production market is relatively mature, and the demand is mainly driven by new theatrical and episodic productions. Technicolor focuses on key talent production hubs to increase its market share with tentpole movies, while reinforcing its leading position on premium content for TV broadcasters and OTT platforms. While the major studios’ CG-animated films lead the Feature Animation box office, there is growth in the number of mid-level budgeted animated features, like DreamWorks Animation/Pearl Studios’ Abominable and MGM’s The Addams Family. Studios have become more open to outsourcing Feature Animation services and as OTT providers like Netflix invest significantly in animated original content. The Games services market is expanding as mobile game developers have become a more relevant market as mobile game art quality increases. Broadening the Group’s position in these two emerging markets is a key element of the Technicolor growth strategy. Through its portfolio of brands, Technicolor is the leading VFX, Animation and Post Production services provider for feature films, TV/OTT, games and advertising worldwide.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019