Technicolor Creative Studios Q1 Business Update

Corporate press release

Undergraduate joint finance

Technicolor Creative Studios Q1 Business Update

Paris (France), May 15, 2023 – Technicolor Creative Studios (Euronext Paris: TCHCS) (the “Company”) today announced its first quarter 2023 business update.

• Revenue for the first quarter of 2023 is 168 million eurosCompared to the same period last year, the current amount has decreased by -15% and as expected.

• 85,000,000 euros of the design of the first part of the financial reform At the beginning of April.

• Strong creative performance All four studios have won high-quality projects and major awards after multiple nominations.

• * Progress on the implementation of the proposed program Innovation and business development teams are strengthened with industry veteran appointments.

Caroline Parrott, CEO of Technicolor Creative Studios, said, “The first quarter of 2023 was spent on our four studios. We continued to deliver high-quality projects while accelerating the implementation of our Re*Imagined program, designed to address the operational challenges we faced at the end of last year. As expected, our revenue has not yet reflected the benefits of this program, which should be implemented in the coming semesters. However, our strong liquidity allows us to focus on our clients’ vision while keeping Technicolor Creative Studios on its path to sustainable and profitable growth.

Q1 2023 Financial Highlights

Revenues

Technicolor Creative Studio revenues reached €168 million in the first quarter of 2023, down -15% at current rates (-14% at constant rate) compared to the same period in 2022.

By MPCFirst quarter 2023 revenues reached 75 million euros, a decrease of -24% at current rates compared to the same period last year (-21% at constant rate). This underperformance was expected as the studio experienced lower activity compared to peak Q1 2022 and peak shows in full production in late 2022 and early 2023.

The story continues

Animation by Micros, first quarter 2023 revenues of 44 million euros, an increase of +91% at the current rate, compared to the same period last year (+92% at a constant rate). This significant growth was driven by a low Q1 2022, with major feature animation projects ramping up for delivery in H2/2022 through H1/2023.

By MillIn the year In the first quarter of 2023, advertising revenue reached 46 million euros, which represents a -37% decrease compared to the same period in 2022 (-38% at a constant rate). Compared to Q1 2022, competition has increased.

Technicolor gamesRevenues for the first quarter of 2023 reached 3 million euros, which is flat compared to the same period last year (down -4 percent at a constant rate).

Independent money and debt

At the end of March 2023, liquidity (cash and cash equivalents) amounted to €47 million (fully provisioned with 40 million ARCF) and nominal net debt excluding lease debt amounted to €654 million (IFRS debt amounted to €744 million and €606 million excluding leases). million).

Again the financial situation

The first part of the reform was prepared at the beginning of April for a total of 85,000,000 euros.
85,000,000 for the aggregate principal amount of the second tranche of the refinancing will be issued at the end of the second quarter of 2023. This amendment will be approved by the General Assembly on May 15, 2023.

Q1 2023 Key Business Highlights

MPC: In the first quarter of 2023, MPC was recognized for its outstanding innovation by being nominated and receiving several awards, including:

• Three Visual Effects Society (“VES”) awards for his work Thirteen lives and Guillermo del Toro Pinocchio;

• Award for the best visual score in 48^Th Caesar’s ceremony b Our Lady will burn.;

• This year’s Oscars for Guillermo del Toro’s best animated feature Pinocchio.

Also, in early 2023, the MPC strengthened its leadership team with the following appointments:

• Ludovic Iochem Head of Studio for MPC Montreal. With over 20 years of experience in the VFX industry and extensive experience in productions, Ludovic has an impressive portfolio of work including: Solas Quantum And Avengers: Endgame.

• Sal Umerjee as studio head at MPC London. Sal started his career as an MPC Runner in VFX in 2000 and has been supporting The Mill in their Bangalore and London studios for the past 6 years.

Micros Animation: The studio started the year strong with several of its projects seeing the release of their trailers. Nickelodeon Films and Paramount Pictures have shared the first trailer. Teenage Mutant Ninja Turtles: Mutant Mayhem.. Paramount+ also released the official trailer and key art for season two of the original animated series RUGGED. Other highlights of Micro Animation include winning the Best New Series – Children’s Program category award Kung Fu Panda: Dragon Knight.

The mill: Ranked as the #1 post-production company in the UK and Europe in 2023 by the LBB Immortal Awards Table, Mill is off to a great start to the year. Other highlights include:

• A total of 28% participation in Super Bowl spots aired for this year’s game (16 ads);

• Tide’s new spot featuring actor Kumil Nanjiani in collaboration with agency Saatchi & Saatchi, director Traktor and Stink Films;

• Working with 180 Amsterdam and MJZ director Gary Friedman to create MSC Cruises’ latest spot, which emphasizes green energy, recycling and other initiatives to achieve net zero emissions at sea.

• Winning Best Visual Effects in a Genie Awards for Samsung’s “Game Time Out”

The studio welcomes incredible talent to its teams, joined by award-winning colorist Katie Dimmock (colorist, London), Kenya Agunloye (producer, New York) and Elodie Echter (senior colorist, New York). The three will focus on growth opportunities and the global development of The Mill’s Color Network.

Technicolor Games: The studio has long-standing, active and collaborative relationships with major game developers and publishers including Electronic Arts, Ubisoft, Take-Two Interactive and Activision. The teams have been growing with the following appointments:

• Romain Killian as Head of Global Development. Based in Montreal, this industry veteran will build upon the development services offering for Technicolor Games as the business continues its global expansion and service lines.

• Vic Long and Justin Fass as directors of business development, based in North America.

Contract terminations due to producers’ decisions to write show scripts are expected to have a negative impact on Technicolor Creative Studio’s revenue growth in the coming quarters.

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About Technicolor Creative Studios
Technicolor Creative Studios shares have been admitted to trading on the Euronext Paris (TCCS) regulated market.

Technicolor Creative Studios is a creative technology company that provides world-class production expertise driven by one goal: ambitious and unconventional ideas. Home to a network of award-winning studios, MPC, The Mill, Mikros Animation and Technicolor Games, we encourage creative companies around the world to produce their most impressive work.

Our global teams of artists and technologists collaborate with the creative community to bring holistic storytelling to audiences everywhere in film, television, animation, gaming, brand experiences and advertising.

www.technicolorcreative.com

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Investor Relations Contact:
investor.relations@technicolor.com

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