technicolor - 2020 Universal Registration Document

PRESENTATION OF THE GROUP STRATEGY

Discontinued operations 1.2.5 GRI [102-10] [102-49] Technicolor has finalized a number of disposals over the last few years, the results of which are, under certain criteria, reported as discontinued operations under IFRS. For a description of the financial implications of discontinued operations on the Group’s results of operations, please refer to Chapter 2: “Operating and Financial Review and Prospects”, section 2.2.7: “Profit (loss) from discontinued operations”. Technicolor announced, on December 18, 2017, its decision to sell its Patent Licensing business. As a result, the Group reported the financial

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information of its Patent Licensing business, previously included in the Technology segment, under Discontinued operations. On July 30, 2018, the Group concluded the sale to InterDigital excluding some mobile patents, a small number of patents for nascent technologies and some patents associated with patents tools. The sale to InterDigital of the Research & Innovation (“R&I”) activity was completed on May 31, 2019.

STRATEGY 1.3

GRI [102-10] [102-15] [103-1 Economic performance] [103-2 Economic performance] [103-3 Economic performance]

Our Strategic Plan will allow Technicolor to better serve clients and take advantage of market opportunities. Its pillars are: concentrate resources on areas of the business offering profitable • growth; take a more disciplined approach to business selection and focus on • new projects which drive attractive returns; continue to produce market leading products and solutions; • divest business units which are unprofitable or do not generate • acceptable margins, and where there is no opportunity to improve them organically; significantly streamline operations from an organizational point of view • and continue the implementation of 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, and drive profit and cash flow, without compromising our top line growth prospects.

Animation & Games: expand pipeline and explore opportunities in • the gaming sector, maximise offshoring of Indian resources, consolidating delivery • pipelines; Connected Home: • continue to pivot from Video to Broadband, • exploit growth in Android TV, • focus growth on scale customers using platform model; • DVD Services: • continue significant business transformation, reducing real estate • footprint, explore potential of adjacent businesses, • maximise “cash cow” potential of the business; • Transversal functions: • streamline the business model in each function, • reduce organisational complexity, • combined impact of new capital structure and strict focus on • profitable growth and financial discipline will provide a sustainable future for Technicolor. EFFICIENCY GAINS In 2020 the Group realized €171 million of cost savings, in line with its target. The Group will continue to improve efficiency and productivity through the period and is now targeting a total of €325 million in run-rate cost savings by 2022, an increase of €25 million compared to the previous announcement. centralise functions where appropriate, • achieve step change reduction in costs; • Overall: •

CLEAR STRATEGIC PRIORITIES FOR EACH DIVISION Production Services: •

exploit burgeoning demand for VFX content: secure volume • agreements with key players, and expand presence in the episodic and streaming market, optimise headcount allocation to individual projects, • standardise technology tools and where possible use across • multiple business lines, Advertising: improve margins/continue agency disintermediation; •

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020