technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 8 SHAREHOLDERS’ EQUITY AND EQUITY INSTRUMENT

Shareholders’ equity and equity instrument

NOTE 8

Capital and additional paid-in capital

8.1 On December 31, 2018, the capital of Technicolor SA was €414,461,178 (414,461,178 shares with a per value €1). On December 31, 2017, the capital of Technicolor SA was €414,461,178 (414,461,178 shares with a per value €1). In 2017, change in equity was as follow:

the share capital was increased by 436,461 new shares as part of the • Management Incentive Plan (MIP 2015) and the additional paid-in capital by €955,850; the share capital was increased by 778,750 new shares delivered to • eligible employees of the Group, as part of the Free Share Plan “MyTechnicolorShares”.

Treasury shares 8.2 Treasury shares are recorded at purchase cost. A depreciation charge price for the last month of the financial period. Gains and losses on is recorded when the purchase cost is higher than the average stock disposal are booked under “extraordinary profit/(expense)”.

2018

2017

Number of treasury shares at opening

978,051 96,943

752,768 225,283 978,051

Net movement of the year related to the share repurchase program (2)

Number of treasury shares at closing

1,074,994 1,121,643

Net Value in euros (1) 2,968,385 The gross value of treasury shares held at December 31, 2018 is €56,405,049 (€57,029,458 as of December 31, 2017), depreciated for €55,283,406 (€54,061,073 as (1) of December 2017). The renewal of the share repurchase program, previously authorized by the Combined Shareholder’s Meeting on May 24, 2017, was not proposed to the Combined (2) Shareholder’s Meeting on April 25, 2018. Therefore the share repurchase program was suspended as of that date. In 2018, 1,114,523 shares were repurchased for a total amount of €2,367,109 and 1,017,580 shares were sold for a total amount of €2,308,920 (in 2017, impact of the repurchase program was an increase of treasury shares by 225,283 for a net cash impact of €849,744). Treasury shares are hold for the purpose of meeting the obligations under debt securities giving access to capital or stock-option schemes or any other form of allocation of shares to employees and Directors of the Company. Other equity instruments 8.3 The deeply subordinated perpetual notes (Titres Super Subordonnés – TSS) are booked as other equity instruments. Further to the restructuring of the Company’s debt in 2010, the characteristics of these perpetual notes are now as follow : 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. ● Dividends and other distributions 8.4 No dividend was proposed by the Board of Directors in 2018, concerning the fiscal year 2017. In 2017, €25 million were paid to shareholders concerning the fiscal year 2016.

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TECHNICOLOR REGISTRATION DOCUMENT 2018