technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 7 - 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 the frame of the Share Management Agreement authorized by the Combined Shareholder’s Meetings on May 23, 2013, and confirmed by the Annual Shareholders General Meeting. As no share purchase program was submitted for approval at the Combined Shareholder’s Meeting convened on April 26, 2018, Share Management Agreement was suspended during the year. 2020 2019* Number of Treasury shares at opening - 39,815 Variation related to the Share Management Agreement - - Disposal - (39,815) Number of Treasury shares at closing - - 2019 number of shares has been adjusted following the 2020 share consolidation. *

In the course of 2019, all the treasury shares have been disposed. As of December 31, 2020, the Group didn’t issue any treasury shares.

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 2018 and 2019 periods, Shareholders’ Meetings held respectively on June 14, 2019 and June 30, 2020 did not vote any payment of dividend. 7.2.4 In 2020, the main changes in non-controlling interests result from disposal of Canadian joint ventures Vancouver Lab Inc. and Canada Cinema Distribution Inc. for €1 resulting from negotiated termination of the strategic partnership with Deluxe services Group. In 2019, no change in non-controlling interests. NON-CONTROLLING INTERESTS

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