technicolor - 2019 Universal registration document

FINANCIAL STATEMENTS 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, 2019, these derivative instruments can be detailed as follows: Currency Notional (1) Maturity Market value (2) Forward and swaps instruments USD/EUR 337 2020 (1) Forward and swaps instruments PLN/EUR 81 2020 - Forward and swaps instruments others - - 1 MARKET VALUE -

Forward buy/sale (net amount) in millions of the 1 st currency. (1) Market value in million of euros as of December 31, 2019. (2)

As of December 31, 2019, the company does not have any outstanding instruments that are not documented as hedges.

Employees benefits NOTE 10 Information on employees 10.1

2019

2018

Executives

87

94

Employees and supervisory staff

17

16

TOTAL HEADCOUNT

104

110

Stock option plan 10.2 MANAGEMENT INCENTIVE PLANS (MIP)

June 29, 2018. The shares to be issued pursuant to this authorization shall not give rights to a total of shares greater than 8,239,744. Making use of this authorization, the Board of Directors approved on April 29, 2016, on January 6, 2017 and on April 25, 2018 the implementation of respectively 2016, 2017 and 2018 Long-Term Incentive Plan. These three-year plans provide conditional rights to the beneficiaries to receive Performance Shares, the delivery of which is subject to the cumulative achievement of Adjusted EBITDA and Free Cash Flow targets for the three years from 2016 through 2018 (LTIP 2016), from 2017 through 2019 (LTIP 2017), from 2018 through 2020 (LTIP 2018) and the satisfaction of a continued employment condition for the full duration of the Plan (through April 30, 2019 for LTIP 2016, through April 30, 2020 for LTIP 2017 and through April 30, 2021 for LTIP 2018). The Board of Directors of February 27, 2019 found that targets for the LTIP 2016 were not met and therefore no Performance Shares were delivered. As of December 31, 2019, the outstanding share rights under the plans amounts to 3,261,720 and 600,000 performance shares rights for respectively LTIP 2017 and LTIP 2018.

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, 2019, 9,853,731 subscription options are still outstanding (respectively 6,169,401 options, 3,186,485 options, 77,845 options and 420,000 options related to MIP 2015, MIP 2016, MIP June 2017 and MIP October 2017). 2016, 2017, 2018 LONG-TERM INCENTIVE PLAN (LTIP) The Shareholders’ Meeting of April 29, 2016, in its twenty-eight resolution, authorized the Board of Directors to proceed with the allocation of existing shares or shares to be issued, in favor of the Group’s employees or certain categories of employees. This authorization has been given for a 26-month period and is valid until

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 281