technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 10 EMPLOYEES BENEFITS

Commitments relating to financial instruments 9.4 As commented in note 1.2.3, the Company uses exchange derivative instruments to hedge the foreign exchange risk arising in particular of the guarantees given to affiliate companies of the Group. As of December 31, 2018, these derivative instruments can be detailed as follows:

Market value (2)

Currency USD/EUR USD/CAD

Notional (1)

Maturity

Forward and swaps instruments Forward and swaps instruments Forward and swaps instruments

353

2019 2019

(1) (2)

(125)

others

-

FAIR VALUE

(3)

Forward buy/sale (net amount) in millions of the 1 st currency. (1) Market value in million of euros as of December 31, 2018. (2)

As of December 31, 2018, the Company does not have any outstanding instruments that are not documented as hedges.

Employees benefits NOTE 10

Information on employees 10.1

2018

2017

Engineers and managers

94

128

Employees and supervisory staff

16

28

TOTAL HEADCOUNT

110

156

Stock option plan 10.2 MID-TERMMANAGEMENT INCENTIVE PLAN (MIP-SP1) Under the thirteen-resolution approved by the Shareholder’s Meeting of May 22, 2008, the Board of Directors meeting of June 17, 2010 approved the implementation of a Mid-Term Management Incentive Plan (MIP-SP1) granting non-market performance units made up of a combination of cash and stock options. Subject to the continuance of employment, the rights under the plan were vested on June 18, 2014 for each beneficiary in the proportion set by the Board of Directors on February 21, 2013 following the determination of the level of achievement of the non-market performance conditions on December 31, 2012. In 2018, all the 805,476 subscription options have been forfeited. As of December 31, 2018, there are no subscription options outstanding anymore.

MANAGEMENT INCENTIVE PLANS (MIP) The Shareholders’ Meeting of May 23, 2013, in its fifteenth resolution, authorized the Board of Directors to proceed with the allocation, in one or several times, in favor of employees or Executive Officers of the Company and its French and foreign subsidiaries, of share subscription or purchase options. This authorization has been given for a 38-month period, and is valid until July 23, 2016. Options granted under this authorization shall not give rights to a total number of shares greater than 26,843,507. As of December 31, 2018, 10,652,013 subscription options are still outstanding (respectively 6,231,678 options, 3,461,541 options, 103,794 options and 855,000 options related to MIP 2015, MIP 2016, MIP June 2017 and MIP October 2017).

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TECHNICOLOR REGISTRATION DOCUMENT 2018