technicolor - 2019 Universal registration document

1 PRESENTATION OF THE GROUP STRATEGY

STRATEGY 1.3

GRI [102-10] [102-15] [103-1 Economic performance] [103-2 Economic performance]

EFFICIENCY GAINS large scope for efficiency gains across all three-business lines to drive • the operational and financial transformation of the company; the Group intends to generate €150m of savings by 2022, of which • €100m to be achieved in 2020; €40m of savings will originate from the existing plan being • implemented since 2017 in Connected Home; €110m will come from the new plan tackling key cost drivers in each • of our business units – real estate rationalization, appropriate use of low-cost workforce and more active management of indirect cost spend. Further simplification of our organizational structure and operations will drive additional savings in 2021 and 2022. COMPREHENSIVE CAPITAL STRUCTURE SOLUTION TO ENHANCE STRATEGIC FLEXIBILITY In conjunction with the strategic plan, the Group is implementing a • holistic capital structure solution to restore our strategic flexibility; Strategic priorities are clear: • rebuild liquidity buffer; • restore confidence of our partners, key clients and suppliers; • fund transformation projects; • capture growth opportunities in Production Services • Capital structure strengthening initiatives include: • a €300 million rights issue; • an 18-month extension of the RCF and the Wells Fargo; • an additional $110 million short-term facility. • The combination of these three capital structure actions will provide the company flexibility and a stable and sustainable base from which to drive profitable growth.

The strategic plan will allow Technicolor to better serve clients and take advantage of market opportunities. The pillars are: focus resources on profitable growth opportunities; • take a more disciplined approach to business selection and focus on • projects which drive attractive returns; continue to produce market leading products and solutions; • significantly streamline operations from an organizational point of view • and implement a new cost savings plan which will improve margins; increase transparency providing tangible financial targets. • This strategic plan includes measures that will improve the cost structure, drive profit and cash flow, without compromising our top line growth prospects. CLEAR STRATEGIC PRIORITIES FOR EACH DIVISION Production Services: • capture growth in episodic by working more with streaming • providers; have a top-notch workforce in India which can help us drive • profitability especially in smaller projects; continue to invest in people and technologies while being • disciplined around business selection – taking on profitable projects that represent the best use of our resources. DVD Services: • adapt the business model and the cost structure to a declining • market; renew the contracts with U.S. major studios, moving to • volume-based arrangements. Connected Home: • focus our efforts on the growing and profitable segments of • broadband and Android TV; reduce presence in the U.S. video market; • streamline R&D to provide to customers high quality products in a • more efficient way.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019