technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS EMPLOYEE BENEFIT

For the 2017 performance shares granted as part of the 2017 LTIP, Technicolor considered an expected turnover of 5% based on historical data of related beneficiaries, an average initial share price of €3.79 and a 3-years expected yearly dividend of €0.18. For the 2018 performance shares granted as part of the 2018 LTIP, Technicolor considered an expected turnover of 10% based on historical data of related beneficiaries, an average initial share price of €1.27 and a 3-years expected yearly dividend of €0. For the 2019 performance shares granted as part of the 2019 LTIP, Technicolor considered an expected turnover of 5% based on historical 9.4 Directors’ fees and compensation expenses (incl. Social security costs) amounted to €0.9 million in 2019 and €0.7 million in 2018. The amounts due to Directors who are non-resident for French tax purposes are subject to a withholding tax. Fees due to Directors and advisors in respect to fiscal year 2019 will be paid in 2020.

data of related beneficiaries, an average initial share price of €0.77 and a 3-years expected yearly dividend of €0.

COMPENSATION EXPENSES CHARGED TO INCOME The compensation charged to income for the services received during the period amount to €2 million (expense) and €9 million (income) for the years ended December 31, 2019 and 2018. The counterpart of this expense has been credited to equity. 9.3.3

Key management compensation

Compensation expenses allocated by the Group to Members of the Excutive Committee (including those who left this function during 2019 and 2018), during 2019 and 2018 are shown in the table below:

2019 (1)

2018 (1)

(in million euros)

Short-term employee benefits (1)

15

12

Termination benefits (2) Share-based payment

- 1

1

(3) 10

TOTAL

16

15 members in 2019 and 13 members in 2018. (1) Amounts accrued under post-employment obligations are almost nil as of December 31, 2018 and 2019. (2)

The share-based payment is a €3 million income in 2018 as the expense for services rendered related to incentive plans has been reversed further to non-achieved targets. In addition, a non-compete indemnity of €0.8 million is due to Mr Frédéric Rose of which €0.2 million relate to Technicolor’s commitment for 2019. The Members of the Executive Committee can benefit from severance packages in case of an involuntary termination and in absence of fault, which represent a total estimated amount of €9 million.

6

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019