TECHNICOLOR

TRADING UPDATE ON FULL YEAR 2016 PERFORMANCE

PRESS RELEASE

Trading update on full year 2016 performance

Paris (France), 12 January 2017 - Following a meeting of its Board of Directors, Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) provides an update on its full year 2016 performance. All figures and data for 2016 are estimated and unaudited.

Update on Full Year 2016 Group performance

The Group will achieve an Adjusted EBITDA of approximately €565 million in 2016 including a negative foreign exchange impact of approximately €10 million and a negative contribution from its exited activities of €5 million. The Group successfully integrated Cisco Connected Devices and The Mill in 2016 and has therefore achieved an Adjusted EBITDA growth of approximately 30% compared to 2015 on a Pro forma^[1] basis, excluding MPEG LA contribution.

Technicolor will generate a free cash flow above €240 million in 2016, in line with its objective. This solid cash generation will be achieved notwithstanding the payment of €48 million for settlements in the Cathode-ray Tube litigation cases in the US. This performance results from the Group's continued focus on cash generation across its businesses.

At end December 2016, Technicolor had a net debt of approximately €705 million, reflecting a nominal gross debt of €1,075 million and a cash balance of approximately €370 million. The Group's year end net debt position will result in a net leverage ratio of approximately 1.2x, well below its objective of 1.4x and its net leverage ratio of 1.7x at end December 2015. Technicolor will maintain its focus on deleveraging until the Group reaches a net leverage ratio below 0.8x.

Based on its solid cash generation, the Group prepaid €150 million of additional senior debt in December 2016. Over the course of 2016, Technicolor further demonstrated the strength of its free cash flow and balance sheet, by reducing its senior debt by €295 million including €250 million of voluntary prepayments.

The Group took advantage of rating upgrades by S&P and Moody's (to BB-, stable outlook/Ba3, positive outlook respectively) to raise new debt in the second half of 2016 at a lower cost with the issuance of €450 million of new term loans (at EURIBOR + 350 bps) and the signing in January 2017 of a €90 million loan from the European Investment Bank (at a fixed rate of 2.542%). Technicolor also negotiated a new €250 million revolving credit facility to replace its prior facilities. The Group is expecting to generate close to €20 million of annual interest cost savings on a run rate following these transactions.