technicolor.com

7 JUNE 2018

3

COUNTRIES SITES REVENUES

25%

16%

7%

52%

Europe, Middle-East & Africa23%

Latin America16%

Asia-Pacific8%

North America

53%2016

2017

16%

26%

1%

57%

Production Services18%

DVD Services24%

Corporate & Other1%

Connected Home

57%

2017

2016

4

► Hollywood and Independent

Studios, Advertising

companies & Brands,

streaming companies, game

publishers

► Major Network Service providers

and Pay-TV operators

5

Disposal of the Patent Licensing business announced early March

Completion of the transaction expected in July 2018

Developing Production Services

Optimizing cash generation in DVD Services

Improving profitability in Connected Home

Cost actions being implemented across businesses, and intensified for

the Connected Home segment

Corporate cost savings program just launched: €10m of savings

targeted by 2020

Deleveraging: proceed and cash flows from Patent Licensing applied to

pay down debt, continuous optimization of the balance sheet

7

► Market leadership driven by premium positioning:

- #1 in VFX for Film & TV

- #1 in VFX for Advertising

- #2 in Postproduction

► Market drivers

Immediate: increasing demand for high-end original

content across segments

Near term: development and personalization of

streaming platforms driving more demand

Long term: development of immersive content and

experiences driving increased demand and new

customers

► Sales breakdown:

- 1/3 in VFX for Film & TV with MPC Film and MrX brands

- 1/3 in VFX for Advertising with MPC and The Mill brands

- 15% to 20 % in Postproduction with Technicolor brand

- 10% to 15% in Animation & Games with Mikros and

Technicolor brands

► Competitive advantage

- Strong barriers to entry

- Scale and customer diversification

- Computing power and software expertise

- Significant IP library (algorithms)

- Global footprint with front end studios in key end markets

and a state-of-art facilities in India

2017 revenue Revenue growth Market trends

► €766 million

► +3% YoY at constant rate

► 2018: mid-single digit ► VFX & Animation markets:

+1% to +10% per year

► Postproduction: roughly stable

8

► Market leadership :

- #1 in North America, Europe and Australia

- Completion of full market coverage with Sony

outsourcing agreement starting in Q2 2018

- Japan market is the only addressable market which us

not served

► Market drivers

- The US Box office is the main driver for new releases

and Blu-ray volumes

- Natural decline in Standard definition discs

- The highly efficient operational platform could be

leveraged by diversification opportunities

► Sales breakdown

- Revenue driven by volumes and mix

- Technicolor replicated 1.3 bn discs (o/w 22.5% of Blu-ray

discs) in 2017 while its addressable market amounted to c.

2.7bn discs

- Serving all major Hollywood studios, serving Microsoft

and all major Games publishers

► Competitive advantage

- Deeply integrated customer relationships

- Highly scalable optimized low cost operational platform

and very efficient cost base with variable costs above 70%

of total costs

- Focus on cash generation with restructuring and

maintenance capex below €15m per year

2017 revenue Revenue growth Market trends

► €1,024 million

► (12.9)% YoY at constant

rate

► 2018: flat ► Declining market remaining

resilient

► Down 5% to 15% per year (not

linear)

9

PRODUCTION SERVICES DVD SERVICES

EXPAND market coverage both in terms of

CUSTOMER PENETRATION and INTERNATIONAL

FOOTPRINT

+

INCREASE the scale of the Animation business+

CONTINUED DEVELOPMENT of high-concept

content, platforms and technology for VIRTUAL and

AUGMENTED REALITY and other immersive media

APPLICATIONS

+

M&A OPPORTUNITIES will be considered+

Reinforce MARKET LEADERSHIP position

Ongoing onboarding of Sony DADC as the

outsourcing agreement for replication and

distribution in North America and Australia

started ramping up in Q2

Incremental market share opportunities,

however marginal

+

Leverage BEST-IN-CLASS OPERATIONAL

PLATFORM thanks to ongoing restructuring +

10

► Market leadership

- #2 worldwide in CPE, behind Arris, in a market which

remains fragmented

- Increased market share in North America reflecting

higher penetration of cable operators both in video

and broadband

- Leadership in Broadband technologies, illustrated by

position in Docsis 3.1 deployment

► Market drivers

- Technological upgrade cycle starting in broadband

CPE (Docsis 3.1, LTE, …)

- Gradual decline expected in video CPE due to the

recent refresh cycle and the development of OTT

solutions

- NSPs and Pay-TV operators seeking ways to limit

churn and maximize ARPU

► Sales breakdown

- 62% of Video CPE / 38% Broadband CPE in 2017 as a result of

record deliveries of video set-top boxes to Charter

- Going forward, Broadband is expected to represent at least 50%

of Connected Home revenues

- 57% in North America, 43% international (EMEA, LATAM, APAC)

► “Competitive advantage”

- Success of Technicolor’s commercial strategy with North

American cable operators, resulting in market share gains

- Market leadership in next generation broadband technologies

- Integration expertise and supply chain excellence

- 1st supplier of OTT boxes to NSPs and Pay-TV operators

2017 revenue Revenue growth Market trends

► €2,419 million

► (6,8)% YoY at constant rate

► 2018: -10% vs. 2017 ► +1% to 2% per year excl. China,

mostly driven by Broadband

11

IMPLEMENTATION of a 3 year transformation plan to

further enhance customer relationships:

► Focus on major NORTH AMERICAN CABLE

CUSTOMERS to leverage recent commercial

success and further gain market share

► Concentration on the other 50 most INNOVATIVE

and VALUE-ORIENTED worldwide customers,

which value performance and bring better

CONTRIBUTION

► De-focus NON-CONTRIBUTIVE and NON-

SCALABLE customers, representing 10%

DECREASE or c. € 250 MILLION of revenue for

2018

+ IMPLEMENTATION OF OPTIMIZATION MEASURES

to adapt the business to this environment:

► Ongoing CONVERSATIONS/NEGOTIATIONS

with CUSTOMERS to transfer component price

increases from Q3 2018 and beyond

► Strengthening RATIONALIZATION,

MUTUALIZATION, and COST-CUTTING

initiatives

► Accelerating organization and geographical

footprint STREAMLINING

► Foster SOLUTIONS AND PROCESS

INNOVATION TO MAINTAIN leading position in

growing segments

CHALLENGING MARKET CONDITIONS driven by components issue:

Memory prices continued to increase in H1, faster than anticipated in Q2

Some additional commodities incl. MLCC (capacitors) experiencing major supply constraints that could

potentially affect revenues if shortages persist

+

-

13

► General: negative forex impact driven by

dollar weakness vs. euro

► Entertainment Services:

► Production Services: single digit revenue

growth YoY

o Double digit revenue growth in Film & TV Visual

Effects and single digit revenue growth in

Advertising VFX

o Solid level of Postproduction activity in the US

and in the UK and lower revenues in Animation &

Games

► DVD Services: lower revenues YoY, in line with

Group’s expectations

o Blu-rayTM volumes up 15% & Standard Definition

volumes down 17%

o No impact of the outsourcing agreement with Sony

which started in Q2 (ramp up will be completed

before Q4 2018)

► Connected Home:

► Top line

o Lower revenues in North America cable

reflecting product cycle: ramp up of DOCSIS

3.1 gateways in Q1 2018 vs. record

deliveries of WorldBox to Charter in Q1 2017

o Significant revenues growth in EMEA,

Asia-Pacific and Latin America

► Margin and supply pressures remain still

intense:

o Memory prices increases in H1 2018

o MLCC disruption generating additional cost

increases and challenging revenue target

► Price discussions with customer and

reinforced management actions

o Customers will pay for component cost

increases in order to ensure supply starting

in Q3

o Accelerating implementation of efficiencies

programs

14

359291

2016 2017

4 628 4 231

2016 2017

7.8%

6.9%(6.8)%

(106)

(219)

2016 2017

132

53

2016 2017

2.9%

1.2%

REVENUE (IN € MILLION)

CHANGE AT CONSTANT CURRENCY (%)ADJUSTED EBITDA (IN € MILLION)

MARGIN (%)

ADJUSTED EBIT (IN € MILLION)

MARGIN (%)

NET RESULT (IN € MILLION)

15

► As part of the Group’s simplification process, costs

which support business activities reallocated to

business divisions

► Effective as of January 1st, 2018

P&L impact of

this reallocation

in 2017 (in m€)

Entertainment

Services

Connected

Home

Corporate

& Other

FY 17 Adj. EBITDA

as reported230 137 (76)

Cost reallocation* (15) (9) 24

FY 17 Adj. EBITDA

post reallocation216 128 (53)

Adj. EBITDA

split (in m€)H1 2017 H2 2017

Entertainment Services 72 159

Connected Home 57 80

Corporate & Other

(46) (30)

CORPORATE

COSTS REVIEW

A HIGHLY SEASONAL

PERFORMANCE

► Adj. EBITDA mostly generated in H1 due to

the seasonality of the business

► DVD Services is the most impacted by

seasonality with a very strong Q4

16

FREE CASH FLOW FROM CONTINUING OPERATIONS (IN € MILLION)

291

63

(146)(40)

+72 (62) (9) (43)

2017Adj. EBITDA

Net capex Net restruc. Δ WC & OAL Financial Tax Pensions andothers

FCFContinuing

(in € million) H1 2016 H2 2016 FY 2016 H1 2017 H2 2017 FY 2017

FCF continuing (23) 111 88 (109) 172 63

Discontinued operations* FCF 121 39 160 (39) 0 (39)

FCF for reconciliation (Group FCF)

98 150 248 (148) 172 24

*Discontinued operations include Cathode Ray tube settlements and Patent Licensing activities

17

► Strict management of the Working Capital and the Capex

► Financial charges reduction

(IN € MILLION)

DECREASE IN FREE CASH FLOW PARTIALLY OFFSET BY:

Free cash flow in 2016 Free cash

Flow in2017

Adjusted EBITDA

fromcontinuing operations

Capex Restruct. Δ WC & OAL

Financial Tax Pensions and

others

► New €90 million EIB 6-year

borrowing at a fixed rate of

2.54% drawn in January 2017

► Around €30 million of annual

interest cost savings following

2016-2017 refinancing and debt

reduction

► Term loan repayments amounted

to €50 million 2017

► Average rate at December 31,

2017: 3.45% (end of 2017) vs.

4.34% (end of 2016)

18

Healthy Balance Sheet structure

2 0 1 7

Nominal IFRS December 31, 2017 December 31, 2016

Issuer Type Curr Rate Formula Maturity Rate Rate Nominal IFRS Nominal IFRS

Tech Finance Term Loan USD Libor w/ floor of 1% + 4.00% Jul-20 5.00% 6.42% - - 290 279

Tech Finance Term Loan EUR Euribor w/ floor of 1% + 4.00% Jul-20 5.00% 6.98% - - 315 297

Technicolor SA Term Loan USD Libor w/ floor of 0% + 2.75% Dec-23 4.23% 4.35% 249 248 - -

Technicolor SA Term Loan EUR Euribor w/ floor of 0% + 3.00% Dec-23 3.00% 3.11% 275 273 - -

Technicolor SA Term Loan EUR Euribor w/ floor of 0% + 3.50% Dec-23 3.50% 3.63% 450 447 450 446

Technicolor SA EIB Loan EUR Fixed rate Jan-23 2.54% 2.54% 90 90 - -

Other debt Mainly capital leases and accrued interest 3.25% 3.25% 39 39 28 28

Total Debt: €1103m €1097m €1083m €1050m

Cash: 319 319 371 371

Net Debt: €784m €778m €712m €679m

Avg. int. rate: 3.45% 3.56% 4.34% 5.33%

19

Strong liquidity of

€319m€

at 31 December 2017

All committed credit

lines were undrawn at

December 31,2017

Liquidity at December 31, 2017Amount

(m€)

Cash on hand at December 31, 2017 year end 319

Committed credit facilities:

Technicolor SA Revolving Credit Facility (€250m matures

December 2021)250

Crédit Agricole credit line (€35m matures May 2019) 35

Wells Fargo credit line ($125m matures September 2021) 105

Liquidity €709m

21

2017 – Revenues and Adj. EBITDA

2 0 1 7

REVENUES Adj. EBITDA

(in € million) 2016 2017

Δ %

Current

currency

Δ %

Constant

currency

2016 2017

Δ %

Current

currency

Δ %

Constant

currency

Production Services

765 766 +0.0% +3.0%

238 230 (3.1)% (1.2)%

DVD Services 1,201 1,024 (14.7)% (12.9)%

Connected Home 2,637 2,419 (8.3)% (6.8)% 218 137 (37.1)% (36.0)%

Corporate & Other

25 22 (10.3)% (9.8)% (97) (76) +21.4% +20.7%

Disco 257 131 (49.0)% (48.9)% 204 80 (60.7)% (60.7)%

For reconciliation

4,885 4,362 (10.7)% (9.0)% 563 371 (34.1)% (32.9)%

22

Free cash flow – IFRS reconciliation

2 0 1 7

(in € million)December 31, 2016

Published

December 31, 2016

Represented

December 31,

2017

Adjusted EBITDA 565 359 291

Changes in working capital and other assets and liabilities 106 56 72

Pension cash usage of the period (note 8.1) (28) (28) (27)

Restructuring provisions – cash usage of the period (note 9.1) (56) (47) (40)

Interest paid (74) (74) (46)

Interest received 3 3 2

Income tax paid (44) (5) (9)

Other items (26) (24) (34)

Net operating cash generated from continuing activities 446 240 209

Purchases of property, plant and equipment (PPE) (68) (68) (52)

Proceeds from sale of PPE and intangible assets 1 1 1

Purchases of intangible assets including capitalization of development costs (85) (85) (95)

Net operating cash used in discontinued activities (46) 160 (39)

Free cash flow for reconciliation 248 248 24

23

Cash Net nominal debt evolution (non IFRS)

2 0 1 7

371 319

+63 (39) +35 (25)(25)

(39) (22)

January 01 2017 December 31 2017FCF

disco.

Cash

position

FCF

continuing

Net

acquisition Dividend

OtherForex

(in € million)

New cash

from debt

FCF

continuing

1,083 1,103

(10)

(593) +556

+90+22 (45)

Repayment

of term loans

Net term

loansForexNew EIB

loan Other

Gross

nominal

debt

Net debt at

nominal value 712 784

Normal term

loan

repayments