TECHNICOLOR

TRADING COMMENTARY FOR THE FIRST QUARTER OF 2017 - Seite 2

During the first quarter, the Group further invested in developing its operating businesses. The Connected Home segment increased its footprint in Asia-Pacific through a partnership with Pioneer to penetrate the Japanese market and increased its overall research efforts in Broadband. In Production Services, the Group further progressed its capacity expansion program and has been hiring additional creative talent to absorb its strong business pipeline. Production Services' leadership in immersive experience projects continued, as seen in a VR piece for the new Alien Covenant movie with the support of the recently established Technicolor Experience Center and Technicolor's Research & Innovation labs.

While investing in its future, the Group also continued to reinforce its balance sheet. Technicolor raised incremental term loans of €275 million and $300 million at the end of March, the proceeds of which were used to entirely repay its old term loans maturing in 2020. This allowed the Group to simplify its financial structure as the term loans were issued under the new term loan debt agreement signed in December 2016 which is covenant-lite and maturing in 2023. The refinancing transactions and debt repayments that occurred in 2016 and 2017 year-to-date will result in around €30 million of interest cost savings on an annual run rate basis.

Reminder of 2017 objectives

• Adjusted EBITDA in the range of €460 million to €520 million;
• Free cash flow in excess of €150 million before cash impacts of the Cathode Ray Tube ("CRT") cartel case settlements (c. €(81) million).

The Group will pursue its deleveraging with the aim to reach a net Debt to Adjusted EBITDA ratio of 0.8x following which it will increase the return paid to shareholders.

These objectives are calculated based on constant exchange rates, and integrate the uncertainties in determining the timing to resolve the patent litigation against Samsung Electronics and the money at stake.

Financial calendar

Annual General Meeting	24 May 2017
H1 2017 Results	27 July 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.