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Technicolor: First Quarter 2020 Results

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PRESS RELEASE     Technicolor: first quarter 2020 resultsParis (France), 7 May 2020 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today its results for the first quarter of 2020.Richard Moat, Chief Executive Officer of Technicolor, stated:“In common with many businesses, Technicolor is facing an unprecedented crisis, but the impact during the first quarter was limited, with resilience in both our Connected Home and Advertising activities. The response of our employees across the Group has been extraordinary, and we have been able to deploy work-from-home capabilities for 80% of them. We have maintained our operations wherever possible, guaranteeing safety for our employees whilst ensuring the continuity of our activities for our clients. In this difficult environment, we have continued our focus on the operational and financial transformation of the Group, including working on achieving €150 million of cost savings as announced during our Capital Markets Day. As promised, we are on track to achieve €100 million run-rate savings by the end of 2020. On top of the €150 million target, we have now identified an additional €75 million of cost reductions, reinforcing our commitment to do whatever it takes to create a sustainable future for the Group. We continue to have valuable assets and global leadership positions in each of our business units. We are working to ensure that Technicolor emerges stronger from the crisis, and ready to face the new future.”Group revenues in the first quarter of 2020 were in line with expectations at €739 million, a 12.8% decrease year-on-year at current exchange rates. Activities such as Connected Home in the North American cable segment and Advertising within Production Services have demonstrated great resilience since the advent of the Covid-19 crisis.Successful early implementation of plans to drive the operational and financial transformation of the company. The Group is on track to achieve c. €100 million of savings on a run rate basis by the end of 2020, with 70% of the targeted headcount reduction having been completed by first quarter 2020. In addition to the previously announced measures, management has identified incremental savings of €75 million to be implemented over the next three years.The impact of Covid-19 started to materialize in the month of March, with some disruptions in our Connected Home supply chain which are now fully resolved. Negative impact of Covid-19 will be more meaningful in the second quarter in Production Services and DVD Services. Management has and will continue to implement all possible measures to ensure smooth business continuity while prioritizing the safety of employees, customers, suppliers and all other stakeholders.Technicolor’s management is working on updating the Company’s strategic plan as communicated during our Capital Markets Day in February, in order to reflect changes in the macro and business environment. Given the continued uncertainty around the duration of lock-down measures globally and the profile of re-opening, Technicolor is not yet in a position to provide renewed financial guidance.First quarter 2020 Key indicators from continuing operations  

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