TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Other elements of equity 7.2. Treasury shares 7.2.1.

Treasury shares are recorded at purchase cost and deducted from shareholders’ equity. The gain or loss on disposal or cancellation of these shares is recorded directly in equity.

Global amount of Treasury shares includes treasury shares purchased in the frame of the Share Management Agreement authorized by the Combined shareholder’s meetings on May 23, 2013, May 22, 2014, April 9, 2015 April 29, 2016 and May 24, 2017. 2017 2016 Number of Treasury shares at opening 752,768 401,524 Variation related to the Share Management Agreement 225.283 351,494 Other variations - (250) Number of Treasury shares at closing 978,051 752,768

Dividends and distribution 7.2.3. The shareholders’ meeting held on May 24, 2017 voted the payment of a dividend of €0.06 per share for the fiscal year 2016. The amount of €25 million was paid to shareholders on June 2017. In 2016, for the fiscal year 2015, a €25 million dividend (€0.06 per share) was paid to shareholders. Non-controlling interests 7.2.4. In 2017, there is no significant change in non-controlling interests. In 2016, following the exercise of the put granted to the non-controlling interest of Technicolor Animation Productions (formerly Ouido Productions), non-controlling interests decreased from €4 million to €3 million.

Under the Share Management Agreement 3,006,648 shares were repurchased and 2,781,365 shares were sold for a net cash outflow of €849,744 in 2017. In 2016, the number of treasury shares was increased by 351,494, for a total net proceed of €2,013,935. In 2016, other variations are related to the 250 free shares delivered as part of a Free Share Plan (see note 9.3). Subordinated perpetual notes 7.2.2. On September 26, 2005, Technicolor issued deeply subordinated perpetual notes (TSS) in a nominal amount of €500 million. No derivative was identified because the provisions of the notes fall outside the scope of the definition of a derivative under IAS 39. Because of their perpetual and subordinated nature and the optional nature of the coupon, the notes were recorded under IFRS in shareholder’s equity for the net value received of €492 million (issue price less offering discount and fees). Further to the restructuring of the Group’s debt in 2010, the characteristics of the notes are now as follows: they are not repayable other than (i) at Technicolor’s sole option in ■ specific contractually defined events or (ii) in case of liquidation of the Company; they no longer bear interest, since an amount of €25 million was ■ paid to TSS holders as final payment of all interest claims in 2010.

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TECHNICOLOR REGISTRATION DOCUMENT 2017