TECHNICOLOR

TRADING UPDATE ON FULL YEAR 2016 PERFORMANCE - Seite 3

In addition, the Group will be affected, as the rest of the industry, by the global pricing pressure on memory chips which started in the fourth quarter of 2016.

While this is expected to impact the profitability of the segment in 2017, the Group remains confident in Connected Home's ability to continue generating a sustained free cash flow in 2017 and further improve its Adjusted EBITDA margin in 2018.

CRT case

Technicolor successfully reached final settlement with all major plaintiffs in the Cathode-Ray Tube ("CRT") cartel case in the US. Such settlements will result in the recognition of a €45 million non-current expense in the second half of 2016. This brings the total non-current expenses related to CRT in the Profit and Loss account to €95 million for the full year 2016. These settlements will result into cash impacts of €48 million in 2016 and €82 million in 2017. The Group continues to defend a limited number of indemnification cases relating to its alleged involvement in the CRT cartel in Europe (Germany and Netherlands) and one small remaining US case which however are expected to bring no additional material exposure in 2017 and limited exposure thereafter.

Notwithstanding a lower performance than anticipated in Connected Home, the Group made significant progress in 2016, notably with the successful integration of Cisco Connected Devices and The Mill, and has now a much more balanced operating profile. Moving forward Technicolor will benefit from its greater scale and balanced portfolio of activites.

As a result of its strong free cash flow generation, Technicolor will continue its deleveraging process in 2017.

Technicolor will publish its Full Year 2016 results on February 23, 2017.

Financial calendar

FY 2016 Results	23 February 2017
Q1 2017 Trading Update	27 April 2017

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Warning: Forward Looking Statements

This press release contains certain statements that constitute "forward-looking statements", including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forward-looking statements. For a more complete list and description of such risks and uncertainties, refer to Technicolor's filings with the French Autorité des marchés financiers.