technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 9 EMPLOYEE BENEFIT

CHANGES IN OUTSTANDING OPTIONS & FREE SHARES 9.3.2 Movements in the number of options and free shares outstanding with their related weighted average exercise prices are as follows for 2018 and 2017: Number of options and free shares Weighted Average Exercise Price (in €)

Outstanding as of December 31, 2016 (with an average remaining contractual life of 5 years – excluding free shares)

4.53 (ranging from 0 to 7)

17,606,929 7,389,710 4,507,500 (778,750) (436,461) (1,468,046) 19,431,172 11,087,249

Of which exercisable

4.23 N/A N/A 3.19 5.87 4.27 N/A N/A N/A 5.48 4.30 4.30

Granted*

Delivered (Free Share Plan)

Delivered (MIP) Forfeited & other

Outstanding as of December 31, 2017 (with an average remaining contractual life of 4 years – excluding free shares)

4.48 (ranging from 0 to 7)

Of which exercisable

Granted*

637,000

Delivered (Free Share Plan)

- -

Delivered (MIP) Forfeited & other

(2,932,338)

Outstanding as of December 31, 2018 (with an average remaining contractual life of 3 years – excluding free shares)

17,135,834 10,652,013

Of which exercisable

Related to 2017 and 2018 Long-Term Incentive Plan (LTIP). *

Significant assumptions used The estimated fair values of the options granted were calculated using the Black&Scholes valuation model. The inputs into the model were as follows:

Stock options plan granted in

December 2015

June 2015

April 2015

October 2014

June 2014

March 2014

October2 013

May & June 2013

June 2010

(in % and in euro)

Weighted average share price at measurement date Weighted average exercise price Expected volatility Expected option life* Expected dividend yield Fair value of option at measurement date Risk free rate

7.05

6.13

6.06

4.71

5.68 4.88

4.06

3.20 5.50

7.11

5.88

5.83

4.92 40%

5.79 4.53 40% 40%

3.93 40%

3.19 6.29 40% 52%

6

40%

40% 40%

5 years 0.12%

5 years

5 years

5 years

5 years

5 years

5 years

5 years 5 years

0.17% 0.17% 0.13% 0.31% 0.62% 0.77% 0.62% 1.85%

0.7%

0.8% 0.8%

0%

0%

0%

0%

0% 0%

2.27 1.06 2.22 Expected option life is shorter than the contractual option life as it represents the period from grant date to the date on which the option is expected to be exercised. * 1.91 1.88 1.45 1.82 1.73 1.40

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TECHNICOLOR REGISTRATION DOCUMENT 2018