technicolor - 2019 Universal registration document

PRESENTATION OF THE GROUP ORGANIZATION AND BUSINESS OVERVIEW

MARKET POSITION IN 2019 Technicolor achieved a market share of c. 17% worldwide excluding China (sources: Dell’Oro, IHS Markit, Technicolor estimates). The Group’s market position differs depending on market segments and geography. By product category, Technicolor was number two worldwide in value for broadband modems and gateways, with industry-recognized leadership in wireless and broadband technologies for Cable and Telecom operators. Technicolor was also number two worldwide in value for digital Set Top Boxes, with leading positions in the Cable and Satellite segments. Technicolor’s key competitors in the CPE market include Arris, Humax, Huawei, Sagemcom, Samsung, and ZTE. REVENUE HIGHLIGHTS The Connected Home segment generated consolidated revenues of €1,983 million in 2019, accounting for 52% of the Group’s reported consolidated revenues. Connected Home shipped a total of 35.4 million products in 2019, or more than 680,000 devices per week. By product category, video devices represented 55% of total volumes in 2019 (2018: 56%), while broadband devices represented 45% of total shipments (2018: 44%) of which 14.6% of total volumes from Manaus. On the video side, Ultra-High definition products represented around 43% of the Group’s digital Set-Top Box revenues in 2019.

In 2018 and 2019, our industry faced cost and supply continuity challenges resulting from global shortages of components. Technicolor led the industry in taking actions to mitigate the impact and guarantee supply. The component environment remains challenging: the situation with the prices for memory chips is gradually improving • and the costs for MLCCs have stabilized and started to go down. The volatility and uncertainty in certain categories of electronic components remain high; starting from mid-2018, the segment is invoicing clients for the vast • majority of these identifiable component cost increases. The industry also experienced the significant drop in the cable video market in North American 2018, which was partially offset by stronger demand in broadband. Technicolor Connected Home is also committed to develop a responsible business as our Ecovadis CSR Gold Rating demonstrates. Technicolor started to implement eco-design guidelines in 2008 and has long taken a positive stance towards environmental and efficiency issues in the development, manufacture, and use of its products. As a continuous improvement practice, Connected Home actively monitors its energy efficiency (carbon emissions generated by product use and carbon emissions resulting from shipping and transportation of products) and is increasing the use of renewable energy within its infrastructure (for instance, our Manaus factory is certified carbon neutral for many years).

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REVENUES BY REGION

REVENUES BY PRODUCT

Latin America Europe, Middle-East & Africa 23 % (vs. 21% in 2018) 15 % (vs. 15% in 2018) 18 % (vs. 18% in 2018)

Video 42 % (vs. 49% in 2018) 58 % (vs. 51% in 2018)

Asia-Pacific

Broadband

North America 44 % (vs. 46% in 2018)

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019