technicolor - 2020 Universal Registration Document

1 PRESENTATION OF THE GROUP ORGANIZATION AND BUSINESS OVERVIEW

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 Netflix’s Over the Moon and Warner Bros.’ Scoob! Studios have become more open to outsourcing Feature Animation services and OTT providers like Netflix are investing significantly in animated original content. The Games services market is expanding as mobile game developers have become a more relevant market, and as mobile game art quality increases alongside the recent releases of the latest generation PlayStation and Xbox consoles. Broadening the Group’s position in Animation & Games is a key element of the Technicolor growth strategy. Through its portfolio of brands, Technicolor is the leading VFX and Animation services provider for feature films, TV/OTT, games and advertising worldwide. COVID-19 SITUATION UPDATE Following the major U.S. studios reaching an agreement in September with all the key Hollywood unions, production activity began to accelerate. Furthermore, a number of countries like Canada, France and the UK have launched and/or extended pandemic-related support programs including wage subsidies and production insurance/indemnity schemes that provide pandemic-related coverage. There continue to be production stoppages/delays as the latest waves of the pandemic temporarily restrict production activity or limit international travel for talent and crew. Nevertheless, as vaccinations continue to roll-out globally, the industry is optimistic about a steady return to normalcy during the back half of 2021.

Overall, Production Services continues to observe an increasing level of bidding activity for projects, particularly for streaming/OTT distribution, in addition to large tentpole films targeting to ramp-up production once Covid-19 vaccine distribution has reached a critical mass later in the current year. KEY CUSTOMERS AND MAIN COMPETITORS Technicolor’s customer base includes major and independent film studios, and non-studio customers such as TV broadcasters, independent content producers, game developers/publishers and OTT service providers producing their own original content. In Advertising, clients range primarily from boutique to major advertising agencies to production companies to brands and advertisers. In the past few years, the Group has been strategically strengthening its market position with leading studios and advertising agencies/production companies while also increasing its collaborations with non-studio customers and directly with brands and advertisers. in Film & Episodic VFX , Technicolor’s key competitors include • Cinesite, Digital Domain, DNEG, Framestore (including Method, Encore), Disney’s ILM, Pixomondo, Rodeo FX, Scanline VFX, and Weta Digital. in Advertising , key competitors include Framestore (including • Company 3, Method), MediaMonks, the in-house production arms of the global advertising holding companies ( e.g ., WPP’s Hogarth, Publicis’ Prodigious, IPG’s Craft, Omnicom’s eg+ Worldwide, etc .), and many local boutiques. in CG Animation & Games services , key competitors include • Animal Logic, CGCG, Cinesite, DNEG, ICON Creative Studio, Keywords Studios, Reel FX, Sony Pictures Imageworks, The SPA Studios, and Virtuos.

Film & Episodic VFX

Advertising

Animation & Games

Key Customers

Major U.S. studios • Mini-majors and independent studios • TV production companies • OTT providers • Cinesite • Digital Domain • DNEG • Framestore (including Method, Encore) • ILM (Disney) •

Global ad agencies • Production companies • Smaller agencies • Brands and advertisers • Consultancies •

Major and independent Animation studios • Key children’s TV networks • and other distributors Publishers and developers • of AAA game titles

Key Competitors

Framestore (including Company 3, • Method) MediaMonks • In-house production arms • of the global ad holding companies Several local boutiques •

Animal Logic • CGCG • Cinesite • DNEG • ICON Creative Studio • Keywords Studios • Reel FX • Sony Pictures Imageworks • The SPA Studios • Virtuos • 3,100 minutes of Animation • for TV and film

Pixomondo • Rodeo FX • Scanline VFX • Weta Digital •

Key Data (2020)

Over 7,500 VFX shots • for theatrical features Over 2,700 VFX shots for • TV/OTT content

Over 3,400 commercials •

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020