technicolor - 2019 Universal registration document

PRESENTATION OF THE GROUP STRATEGY

2020-2022 GUIDANCE (1) (INCLUDING IFRS 16) As announced in the 2019 annual results press release, on February 18 2020, Technicolor had announced that its Strategic Plan should allow Technicolor to generate over the 2020-2022 period a cumulative Adjusted EBITDA of over €1.0 billion and a cumulative Adjusted EBITA of over €340 million, and to reduce its Net Debt / Adjusted EBITDA leverage ratio below 2.75x (2) by 2022. With respect to 2020, Technicolor expected to achieve an Adjusted EBITDA in line with 2019 and an Adjusted EBITA of c. €70 million. The key assumptions on which these objectives and assumptions were based were as follows: Production Services: • Film & Episodic Visual Effects: relatively low first half 2020 activity • driven by delays in awards coming from one key client. The second half activity expecting to be at full capacity, as well as the following years of the plan; Episodic activities: a double-digit rate growth over the period; • Advertising: growth driven by access to new clients (increased • demand in the direct to brand segment), and improved efficiencies; Animation: growth fuelled by new contracts, including some already • concluded with streamers;

DVD Services: volume declines still affecting activity, but the gradual • positive impact of contract renewal together with cost savings measures helping to restore profitability; Connected Home: moderate growth over the period, with prolonged • decline of video being more than offset by strong progress in the broadband gateway segment. Increased efficiencies, and transformational measures, together with deepened client selectivity, further improving profitability; Free cash-flow: conservative assumptions in working capital • dynamics forecasted for 2020 and 2021. Due to the current challenges associated with assessing the full impact of the COVID-19 pandemic at this stage, the Group has decided to cancel on 23 March 2020 the previously issued 2020-2022 financial guidance and 2020 (3) . The Group remains fully committed to significantly improving its profitability and cash flow generation, and continues to implement its previously announced cost savings measures. Technicolor has already started to work on the expected second stage of its transformation programmes, accelerating cost reductions and efficiency measures. The company plans to provide updated 2020-2022 guidance once there is more clarity around the impact of the COVID-19 pandemic. For more information about the COVID-19 risks, please refer to sections 2.5 « Information on COVID-19 » and « Health and safety », in chapter 3.1.1 « Global market and industry risks".

1

At constant perimeter and rate. (1) Pro forma of the Rights issue. (2) Information supplied subsequently to the financial statements' approval by the Board of Directors' meeting of February 18, 2020. (3)

23

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019