technicolor - 2019 Universal registration document

OPERATING AND FINANCIAL REVIEW AND PROSPECTS RESULTS OF OPERATIONS FOR 2018 AND 2019

Europe, Middle-East & Africa, Asia-Pacific and Latin America: • Lower revenue compared to prior year primarily explained by headwinds in the Latin America Video market, mainly in Brazil and Mexico, and by the slowdown of investments of Broadband in Australia. The Video satellite shows recession across all regions except in India that had a positive impact on 2019 revenues. This activity continues to focus on investments and overall market share gains and to leverage open and innovative technologies for network service providers (NSPs) around the world, with the ultimate goal to help NSPs deliver seamless connectivity and premium entertainment experiences to consumers. This is achieved by creating best-in-class CPE and enriching the portfolio with innovative solutions from partnerships with companies with the domains of Wifi management, video distribution, security and advertising. Wifi 6 remains the main technology driver with relevant wins in North America and Europe during the 2019 fourth quarter.

In Broadband, the investments are focused on Fiber and • DOCSIS 3.1 products to position Technicolor as an innovative leader and trusted player in the Connected Home ecosystem. In the second half, DOCSIS 3.1 has expanded beyond Eurasia and NAM, with relevant wins in Mexico and Brazil with the main cable operators in the region. The launch of new Wi-Fi 6 platforms has been successful with the first wins in the North America and European markets. Massive deployments are expected in 2020. For Video, AndroidTV-based solutions are gaining faster • traction, with relevant wins in the satellite and IP STB segments, in line with the objective of a higher win-rate and global leadership; during the year Connected Home had 9 new relevant awards in this growing segment.

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REGIONAL REVENUE FOR CONNECTED HOME

FY 2019

FY 2018

Change (1)

(in million euros) Total revenues

1,983

2,218 1,033

(12.6)% (20.2)%

o/w

North America

865 453 307 357

Europe, Middle-East & Africa

460 327 398

(1.6)% (7.2)%

Latin America Asia-Pacific

(10.3)%

Change at constant currency. (1)

CORPORATE & OTHER Corporate & Other includes the Trademark Licensing business. Corporate & Other recorded revenues of €43 million in 2019, roughly stable compared to last year as some retained patent licensing revenues were recorded for similar amounts. Analysis of Adjusted EBITDA and Adjusted EBITA 2.2.2 For the purpose of analyzing the Group’s performance, and in addition operating performance. For a comprehensive definition of adjusted to its published results presented in accordance with IFRS, Technicolor indicators and a description of their limitations as performance indicators publishes an Adjusted EBITDA. This indicator excludes factors the please refer to section 2.2.9: “Adjusted Indicators” of this Chapter. Group considers to be non-representative of Technicolor’s normal

FY 2019 excl. IFRS 16

FY 2019

FY 2018 Change (1)

(in million euros)

Total Adjusted EBITDA from continuing operations

324 164

246

266

(9.7)%

Production Services

132

110

16.7%

DVD Services

81 79

46 69 (1)

68 87

(34.0)% (21.2)%

Connected Home Corporate & Other

1

1

ns

Change at constant currency, excluding IFRS 16. (1)

Adjusted EBITDA from continuing activities was €246 million compared to €266 million in 2018.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019