technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS EQUITY & EARNINGS PER SHARE

Other elements of equity

7.2

7.2.1

TREASURY SHARES

Treasury shares are recorded at purchase cost and deducted from shareholders’ equity. The gain or loss on disposal or cancellation of these shares is recorded directly in equity.

Global amount of Treasury shares includes treasury shares purchased in was submitted for approval at the combined shareholder’s meeting the frame of the Share Management Agreement authorized by the convened on April 26, 2018, Share Management Agreement was Combined Shareholder’s Meetings on May 23, 2013, and confirmed by suspended during the year. the annual shareholders general meeting. As no share purchase program 2019 2018 Number of Treasury shares at opening 1,074,994 978,051 Variation related to the Share Management Agreement - 96,943 Disposal (1,074,994) - Number of Treasury shares at closing - 1,074,994

In the course of second half of 2019, all the treasury shares have been disposed.

SUBORDINATED PERPETUAL NOTES 7.2.2 On September 26, 2005, Technicolor issued deeply subordinated perpetual notes (TSS) in a nominal amount of €500 million. No derivative was identified because the provisions of the notes fall outside the scope of the definition of a derivative under IAS 39. Because of their perpetual and subordinated nature and the optional nature of the coupon, the notes were recorded under IFRS in shareholder’s equity for the net value received of €492 million (issue price less offering discount and fees). Further to the restructuring of the Group’s debt in 2010, the characteristics of the notes are now as follows: 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 DISTRIBUTION 7.2.3 In connection with 2017 and 2018 periods, Shareholders’ Meetings held respectively on April 26, 2018 and June 14, 2019, did not vote any payment of dividend. 7.2.4 In 2019, no change in non-controlling interests. In 2018, the main changes in non-controlling interests result from: liquidation of Thomson Investment India, decreasing non-controlling • interests by €2 million; acquisition of the remaining 49% of Technicolor Pioneer Japan • shares, decreasing non-controlling interests by €1 million. NON-CONTROLLING INTERESTS

6

Earnings (Loss) per share

7.3

the Company’s stock at the average market price of the period or the period the securities were outstanding.

Basic earnings per share are calculated by dividing income (loss) attributable to ordinary equity holders of the parent entity by the weighted-average number of shares outstanding during the period, excluding treasury shares. Diluted earnings per share is calculated by dividing income (loss) attributable to ordinary equity holders of the parent entity by the weighted-average number of shares outstanding during the period assuming that all potentially dilutive securities were exercised and that any proceeds from such exercises were used to acquire shares of

Potentially dilutive securities comprise: outstanding options, if dilutive; •

the securities to be issued under the Company’s Management • Incentive Plan, to the extent the average market price of the Company’s stock exceeded the adjusted exercise prices of such instruments.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019