TECHNICOLOR_REGISTRATION_DOCUMENT_2017

3 - RISKS, LITIGATION AND CONTROLS Litigations

LITIGATIONS 3.2

[G4-2] [G4-SO8] [G4-DMA Compliance]

GRI

ANTITRUST PROCEDURES [G4-SO7] [G4-DMA Anti-competitive behavior]

3.2.1

In 2016, the association brought a second lawsuit against Technicolor and certain of its subsidiaries and General Electric International, Inc. on behalf of additional former workers making virtually identical allegations as were made in the first lawsuit. See note 11 to the consolidated financial statements for more information. Technicolor and its subsidiaries claim, among other reasons, that TCETVT operated for less than four years after its sale to Technicolor while General Electric International, Inc.., and its predecessor-in-interest RCA Corporation, owned and operated TCETVT for approximately twenty years. Should the Group or any of the subsidiaries ultimately be held liable or settle the claims, the amounts of any such liability or settlement could be high. There are currently too many uncertainties to assess the extent of any liability that Technicolor or its subsidiaries may incur as a consequence of this lawsuit. Technicolor also has various avenues to mitigate any risk, including contractual indemnities owed to it by General Electric and others. OTHER LITIGATIONS 3.2.3 In the ordinary course of business activities, the Group has been involved, and in the future, might become involved, in legal and regulatory proceedings and is subject to tax, customs and administrative audits. The fines, damages, settlement amounts or amounts otherwise due in connection with these legal proceedings, may be significant. There can be no assurance that any of the legal proceedings and audits in which the Group is involved or becomes involved in the future will not result in payments being made by the Group, including possibly in excess of amounts provisioned, or that any such payments will not have a material adverse effect on the Group’s results of operation and financial condition. The main legal proceedings and governmental investigations in progress or envisaged, are described in note 11.2 to the Group’s consolidated financial statements in this Registration Document. Except for the litigations described in note 11.2 to the consolidated financial statements, there are no other governmental, judicial or arbitration proceedings of which the Group is aware, that are currently pending or threatened, which could have, or have had over the past 12 months, a material effect on the financial situation or profitability of the Group.

GRI

Lawsuits and claims relating to competition law could materially adversely affect the Group’s situation. The Group is subject to certain lawsuits in Europe and in Turkey relating to alleged anti-competitive conduct, in connection with the former cathode ray tubes business. The Group has managed in a recent past to settle similar lawsuits in the United States and Brazil. Should the Group ultimately be held liable to any third parties or settle any related claims or proceedings, the amounts of any such liability, settlement, fines, or penalties could be material. There are currently too many uncertainties to assess the risks that Technicolor may incur as a consequence of the lawsuits that remain pending. The Group is vigorously defending pending lawsuits and claims. TOXIC TORT LAWSUITS 3.2.2 IN TAIWAN [G4-EN29] GRI Technicolor, certain of its subsidiaries and General Electric International, Inc. are being sued by an association of former employees (or heirs of former employees) at a former manufacturing facility in Taiwan. They allege exposure to various contaminants while living and working at the facility, which allegedly caused them to suffer various diseases, including cancer, or caused emotional distress from fear that living and working at the facility increased their risk of contracting diseases. After a first ruling of the Taiwan court which was subject to an appeal, the Taiwan High Court (first appeals court) entered, on October 2017, judgment against General Electric International, Inc. and TCETVT, Technicolor SA and TCE Bermuda for approximately NTD 718 million (€20.3 million at the exchange rate as of December 31, 2017) plus late interest penalty. The association, General Electric International, Inc., TCETVT, Technicolor SA and TCE Bermuda have appealed the ruling to Taiwan’s Supreme Court.

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TECHNICOLOR REGISTRATION DOCUMENT 2017