technicolor - 2018 Registration document

6 FINANCIAL STATEMENTS NOTE 9 EMPLOYEE BENEFIT

9.2.1

SUMMARY OF THE PROVISIONS AND PLANS DESCRIPTION

Pension plan benefits

Medical

Total

2018

2018

2018

2017

2017

2017 404

(in million euros)

Opening provision

376

397

6

7

382

Net periodic pension cost

9

10 (1)

- - - - - -

- - - - -

9

10 (1)

Curtailment gain

(1)

(1)

Benefits paid and contributions

(26)

(27)

(26)

(27)

Change in perimeter

(6)

-

(6)

-

Actuarial (gains) losses recognized in OCI

(14)

3

(14)

3

Currency translation differences CLOSING PROVISION

2

(6)

(1)

2

(7)

340

376

6

6

346

382

Of which current

26

27

-

-

26

27

Of which non-current

314

349

6

6

320

355

Defined contribution plans 9.2.1.1 The pension costs of these plans correspond to the contributions paid by the Group to independently administered funds. These plans guarantee employee benefits that are directly related to contributions paid. The total contributions paid by Technicolor amounted to €21 million in 2018 (same amount in 2017). Defined benefit plans 9.2.1.2 These plans mainly cover pension benefits, retirement indemnities and medical post-retirement benefits. Pension benefits and retirements indemnities Pension plans maintained by the Group are mainly the following: in Germany , employees are covered by several vested unfunded • defined benefit and defined contribution pension plans. These plans mainly provide employees with retirement annuities and disability benefits. Employees participate in plan based on final pay and services. The pension plans are no longer available to new entrants. The retirement age is between 60 and 63 years old. in the United States , the employees of Technicolor are covered by a • defined benefit pension plan. Technicolor mainly operates two defined benefit pension plans: a cash balance pension plan that covers substantially all non-union employees, funded through a trust fund, and an additional pension plan for executive employees, closed to new participants. Benefits are equal to a percentage of the plan Member’s earnings each year plus a guaranteed rate of return on earned benefits until retirement.

A hard freeze occurred over 2009 on U.S. pension plans. The rights as of January 1, 2010 remain vested but no additional pay-based credits are added to the cash balance account under the Plans. Interest credit, however, continue to be added to employees’ account. The retirement age is 65 years old; in the United Kingdom , Technicolor mainly maintains a dedicated • funded pension plan, which provides retirement annuity benefits. This plan is no longer available to new entrants. The retirement age is 65 years old; in France , the Group is legally required to pay lump sums to • employees when they retire. The amounts paid are defined by the collective bargaining agreement in force and depend on years of service within the Group and employee’s salary at retirement. The retirement age is 62 years old but the average retirement age observed is 64 years old; in other countries , Technicolor maintains non-funded pension plans • in Mexico and in Japan. The benefits are mainly based on employee’s pensionable salary and length of service. Medical Post-retirement benefits In the U.S. & in Canada, Technicolor provided to certain employees a post-retirement medical plan. The medical plan in the U.S. includes basic medical and dental benefits and has been closed to new entrants. The medical plan in Canada includes life insurance, health and dental care benefit coverage and was closed to new entrants.

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TECHNICOLOR REGISTRATION DOCUMENT 2018