TECHNICOLOR
PARIS : TCH

February 24, 2012 01:49 ET

TECHNICOLOR : Full-Year 2011 Results And New Strategic Roadmap

Full-Year 2011 Results: Resilient Adjusted EBITDA Margin and Return to Positive Free Cash Flow

A New Strategic Roadmap: Amplify 2015

ISSY-LES-MOULINEAUX CEDEX, FRANCE--(Marketwire - Feb 24, 2012) -


H2 2011 and FY 2011 Results Financial Highlights (unaudited)

--  FY 2011 Adjusted EBITDA[1] of EUR475 million: increase in Technology
    and Entertainment Services, partly offsetting decrease in Digital
    Delivery.
--  FY 2011 Adjusted EBITDA margin nearly stable at 13.8%.
--  Strong free cash flow[2] generation, reaching EUR81 million for
    FY 2011.

+-----------------+ +-----------------------++----------------------------+
|In EUR million   | |          Second Half  ||         Full Year          |
+-----------------+ +-----+------+----------++-----+------+---------------+
|                 | |2010 | 2011 |Change,   ||2010 | 2011 |    Change,    |
|                 | |     |      |reported  ||     |      |   reported    |
+-----------------+ +-----+------+----------++-----+------+---------------+
|Group revenues   | |     |      |          ||     |      |               |
|from continuing  | |     |      |          ||     |      |               |
|operations       | |2,075| 1,891|  (8.9)%  ||3,574| 3,450|         (3.5)%|
|                 | |     |      |          ||     |      |               |
|Change at        | |     |      |          ||     |      |               |
|constant currency| |     |      |          ||     |      |               |
|(%)              | |     |(7.9)%|          ||     |(1.1)%|               |
+-----------------+ +-----+------+----------++-----+------+---------------+
|Adjusted EBITDA  | |     |      |          ||     |      |               |
|from continuing  | |     |      |          ||     |      |               |
|operations       | |  363|   308| (15.1)%  ||  505|   475|         (5.9)%|
|                 | |     |      |          ||     |      |               |
|As a % of        | |     |      |          ||     |      |               |
|revenues         | |17.5%| 16.3%| (1.2)pt  ||14.1%| 13.8%|        (0.3)pt|
+-----------------+ +-----+------+----------++-----+------+---------------+
|Group Free cash  | |     |      |          ||     |      |               |
|flow             | |   16|    49|   +33    ||(100)|    81|           +181|
|                 | |     |      |          ||     |      |               |
|Cash position at | |     |      |          ||     |      |               |
| 31 December,    | |     |      |          ||     |      |               |
|2011             | |     |      |          ||  332|   370|            +38|
|                 | |     |      |          ||     |      |               |
|Net Debt IFRS at | |     |      |          ||     |      |               |
|31 December, 2011| |     |      |          ||  993|   957|           (36)|
|                 | |     |      |          ||     |      |               |
|Net Debt non IFRS| |     |      |          ||     |      |               |
|at 31 December,  | |     |      |          ||     |      |               |
|2011             | |     |      |          ||1,191| 1,130|           (61)|
+-----------------+ +-----+------+----------++-----+------+---------------+

FY 2011 Business Highlights

--  Licensing: Highest revenues since 2003 and significant progress in
    launch of new patent licensing programs.
--  Innovation: Significant progress on M-GO, a new platform to help
    end-users discover, view and share all forms of media; continued
    development of metadata-based solutions and deployment of color
    re-alignment technology in special effects.
--  Entertainment Services: Record year in Digital Production's revenues
    and in DVD volumes.
--  Digital Delivery: Revenue decline and turnaround action plan
    launched, as announced in December 2011.

2012 Objectives

--  Adjusted EBITDA in the range of EUR475-500 million reflecting:

  --  Continued strength in Technology and Entertainment Services;

  --  Return  to  Adjusted  EBITDA  breakeven  in  Connected  Home, with
      positive Adjusted EBITDA in the second half;

  --  An  increase  in  operating  expenses  to  support  the  ramp-up  of
      growth businesses, including M-GO;

  --  An uncertain macroeconomic environment.

--  Continue   to   generate   positive  free  cash  flow  despite  higher
    restructuring expenses and investments in growth businesses.

--  Operate within the financial covenants of credit agreements.


Technicolor's Strategic Roadmap: Amplify 2015

Technicolor's mission is to enhance media experience on any screen, in theaters, at home or on the go through innovative technologies and solutions in imaging and sound.

The Amplify 2015 plan will put Technicolor on a new growth path to achieve its strategic ambition: lead innovation in media monetization solutions.

Amplify 2015 is built on three pillars:

1. Boost our innovation pipeline and expand in licensing:

While continuing to file patent applications, leading to about 2,000 patent grants per year in promising technology areas and launching new patent licensing programs, Technicolor will also expand its licensing activities by:

--  Leveraging the growing range of connected devices in patent
    licensing programs;
--  Broadening our presence in growing markets, such as Extended Home
    Applications;
--  Entering new geographies, such as China, India and Brazil;
--  Developing new licensing models such as Technology Licensing.

The combination of new applications and services, new geographies and new licensing models is expected to generate an adjusted EBITDA of at least EUR40 million in 2015.

2. Develop innovative solutions to address expanding digital markets:

Technicolor will expand its presence in digital media monetization platforms, deriving new revenues from a broad array of media. For example, M-GO is the result of intensive R&D, market testing and investment over the past 3 years. It aims at providing end-users with a seamless experience for media consumption. M- GO will be preloaded as of Q2 2012 on most U.S. connected devices of Samsung and Vizio and on Intel Ultrabooks™.

3. Consolidate and expand geographically to gain scale or access broader ecosystems:

Technicolor will leverage its asset portfolio and seize external growth opportunities to consolidate and expand geographically in Innovation and Licensing, Media Creation and Media Distribution.

--  Innovation and Licensing: the Group aims to seize opportunities to
    add complementary patents to its existing portfolio and carry out
    targeted technology acquisitions.
--  Media Creation and Distribution: the Group aims to consolidate and
    expand geographically as well as develop new added value services for
    its studio customers.
--  Packaged Media: Technicolor will continue to focus on cash flow
    generation by expanding its client base, extending its Blu-ray™
    capacity, lowering its cost structure and innovating in Supply Chain
    solutions.
--  Connected Home: Technicolor will implement the turnaround plan
    announced in December 2011, deploy its digital home software suite
    for smart home applications and participate in consolidation to
    gain scale.

Amplify 2015 Goals[3]

--  Profit growth: Adjusted EBITDA above EUR600 million
    (vs. EUR475 million in 2011).
--  Free Cash Flow generation: over EUR400 million generated over 2012-2015
    which will be used to repay debt.
--  Significant deleveraging: Technicolor's Net debt/Adjusted EBITDA ratio
    to fall below 1.2x (vs. 2.4x in 2011 based on nominal debt).

Frederic Rose, Chief Executive Officer of Technicolor, stated:

"I am very pleased with Technicolor's 2011 performance, in particular our return to positive free cash flow. Technicolor is now poised to seize opportunities in an increasingly digitized world. With our Amplify 2015 plan, we have a clear roadmap to achieve our strategic ambition: lead innovation in media monetization solutions. Technicolor is on track to grow profits and generate strong cash flow while significantly deleveraging its balance-sheet."

A meeting hosted by Frederic Rose, CEO and Stéphane Rougeot, CFO and SEVP Strategy will be held on Friday, 24 February, 2012 at 11:00 CET. The meeting will also be available via webcast at:

http://www.technicolor.com/financial-results

Read the full press release in the attached file

--------------------------------------------------------------------------- -----

[1] EBIT from continuing operations excluding other income (expense), and Depreciation & Amortization (including impact of provisions for risks, litigations and warranties).

[2] Free Cash Flow from both continuing operations and discontinued operations.

[3] At constant scope of activities.

FY 2011 ET STRAT ROADMAP VUS:

http://hugin.info/143597/R/1588740/498675.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: TECHNICOLOR via Thomson Reuters ONE

[HUG#1588740]

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