TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

Earnings (Loss) per share 7.3.

Basic earnings per share are calculated by dividing income (loss) attributable to ordinary equity holders of the parent entity by the weighted-average number of shares outstanding during the period, excluding treasury shares. Diluted earnings per share is calculated by dividing income (loss) attributable to ordinary equity holders of the parent entity by the weighted-average number of shares outstanding during the period assuming that all potentially dilutive securities were exercised and that any proceeds from such exercises were used to acquire shares of the Company's stock at the average market price of the period or the period the securities were outstanding. Potentially dilutive securities comprise: outstanding options, if dilutive; ■ the securities to be issued under the Company's Management Incentive Plan, to the extent the average market price of the Company's stock ■ exceeded the adjusted exercise prices of such instruments.

Diluted earnings (loss) per share

2017 (173)

2016*

Net income (€ in million)

(26)

Net (income) loss attributable to non-controlling interest

(1) 46

-

Net (gain) loss from discontinued operations

80

Numerator: Adjusted profit “group share” from continuing operations attributable to ordinary shareholders

(218)

(106)

Basic weighted average number of outstanding shares (‘000) Dilutive impact of stock-option & Free Share Plans

412,717

411,932

963

5,618

Denominator: Weighted shares (‘000)

413,680

417,550

2016 amounts are re-presented to reflect the impacts of Discontinued Operations (see note 12) *

Some of stock-options plans have no dilution impact due to stock price but could have a dilution impact in the future depending on the stock price evolution (see details of these plans in note 9.3).

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TECHNICOLOR

REGISTRATION DOCUMENT 2017