FY 2009 Results (unaudited)

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Full year 2009 revenues down 14.5% at constant currency for continuing activities and down 10.9% on new perimeter.

• Full year 2009 revenues down 14.5% at constant currency for continuing activities and down 10.9% on new perimeter 1

- In a challenging environment, FY 2009 Group’s revenues from continuing activities amounted to €3,529 million, down 13.9% at current currency compared to FY 2008. Revenues from new perimeter activities declined by 10.4% in 2009 at current currency.

- 4Q 2009 Group’s revenues from continuing activities amounted to €926 million, down 23.7% at constant currency compared to 4Q 2008, mainly due to a significant year-on-year drop in Connect volumes partly explained by a very strong fourth quarter 2008 with very high orders for Digital to Analog adaptors from one US cable operator.

• Full year 2009 adjusted EBITDA 2 at €486 million, or 13.8% of sales, up 1.8 points vs. 2008; full year 2009 adjusted EBIT 3 at €247 million, or 7.0% of sales, up 2.3 points vs. 2008

- The increase of 2.3 points in adjusted EBIT margin compared to 2008 resulted from a 1.8 points improvement in adjusted EBITDA margin and from a 0.5 point decrease in Depreciation & Amortization as a percentage of sales, mostly related to 2008 asset write-offs and impairments.

- 2H 2009 adjusted EBITDA and adjusted EBIT margins increased respectively by 2.8 points and 3.0 points year-on-year, driven by an overall improvement in business mix and by efficiency gains in most of the Group’s activities.

• Group net result of €(342) million and net profit from continuing activities of €33 million for the full year 2009

- Group net result for 2009 impacted by a €(375) million loss from discontinued operations, including  €(276) million in impairment charges on discontinued activities incurred in 1H 2009.

- Group net result for 2H 2009 amounted to €(17) million, impacted by a €(46) million loss from discontinued activities primarily reflecting a loss from the Grass Valley business.

• Free cash flow 4 for the year 2009 of €(63) million, including a positive free cash flow of €177 million in 2H 2009

- Group free cash flow at €177 million in the second half, mainly driven by lower capex and by improvement in working capital resulting from lower activity and from improved inventory management.

- Net debt of €2,176 million at 31 December 2009 compared to €2,311 million at 30 June 2009. Cash position of €569 million at 31 December 2009.

• Priorities for 2010

- While visibility on the overall market environment remains low, the Group is focusing on winning new clients to deliver revenue growth in 2H 2010. The Group expects 1H 2010 revenue trend to be in line with 2H 2009 trend.

- The Group will continue to strongly focus on operational efficiencies and cash generation in order to finance the capex and working capital requirements necessary for expected increased business activity in 2H 2010.

- The Group intends to progress its divestment and closure program already underway, and stem the cash losses related to some of the activities it is seeking to divest.

Paris (France), 17 February 2010 - The Board of Directors of Technicolor (Euronext Paris 18453; NYSE: TCH) met today to review the Group’s full year 2009 results.

Comment by Frederic Rose, CEO
“2009 was an extremely challenging year that saw Technicolor achieve significant progress. While the financial restructuring clearly affected our ability to win material new customers, we were able to put 2009 to good use in order to significantly improve our operational profitability and cash generation, despite adverse macro-economic environment. Notwithstanding important operational losses due to Grass valley, the positive net result from our continuing activities in the second half is also encouraging.
The conclusion of our financial restructuring following today’s court decision to end the “sauvegarde” proceeding will enable us to compete again effectively for new customers. In this regard, our recently announced contract with Warner Bros., as well as significant awards in the last few weeks from a US satellite provider and a European telco for set top boxes and gateways, provide positive signs for the year to come.”

1 New perimeter refers to all continuing activities except the retail telephony business, classified as Other and exited in 2009
2 EBITDA from continuing activities minus restructuring and impairment charges, and minus other income and expenses (full details on page 4)
3 EBIT from continuing activities minus restructuring and impairment charges, and minus other income and expenses (full details on page 4)
4 Cash from / (used) in operating activities less change in working capital and other assets and liabilities, tax, financial and non current cash out


This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration.

Technicolor is a company listed on NYSE Euronext Paris and NYSE stock exchanges, and this press release contains certain statements that constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties, assumptions and other factors beyond Technicolor’s control that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forward-looking statements due to changes in global economic and business conditions, risks related to its debt restructuring, and risks related to its operations in general. For a more complete list and description of such risks and uncertainties, refer to Technicolor’s Form 20-F (formerly Thomson) and other filings with the U.S. Securities and Exchange Commission and Technicolor’s Rapport Annuel and other filings with the French Autorité des marchés financiers.


About Technicolor
With more than 95 years of experience in technological innovation, Technicolor is a leading provider is a leading provider of production, postproduction, and distribution services to content creators and distributors. Technicolor is one of the world’s largest film processors; the largest independent manufacturer and distributor of DVDs (including Blu-ray™ Disc); and a leading global supplier of set-top boxes and gateways. The company also operates an Intellectual Property and Licensing business. For more information:  www.technicolor.com

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