technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 7 - Equity & Earnings per share

Earnings (Loss) per share

7.3

to acquire shares of 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

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.

DILUTED EARNINGS (LOSS) PER SHARE

2020 (207)

2019* (230)

Net income (in million euros)

Net (income) loss attributable to non-controlling interest

-

-

Net (gain) loss from discontinued operations

(15)

(22)

Numerator Adjusted profit “Group share” from continuing operations attributable to ordinary shareholders Basic weighted average number of outstanding shares (in thousands)

(193)

(208) 15,321

73,682

Dilutive impact of stock-option & Free Share Plans

-

-

Denominator Weighted shares (in thousands)

73,682

15,321

2019 number of shares has been adjusted following the 2020 share consolidation. *

Stock options and Free Shares Plans have no impact on diluted earnings per share as they would have relutive impact.

Related party transactions

7.4

6

A party is related to the Group if: directly or indirectly the party (i) controls, is controlled by or • is under common control with the Group, (ii) has an interest in the Group that gives it significant influence over the Group;

the party is an associate or a joint venture in which the Group is • a venture; the party or one of its Directors is a Member of the Board of • Directors or of the Executive Committee of the Group or a close Member of the family of any individual referred to above.

Related party transactions with associates & joint ventures are detailed in note 2.4. Remuneration of key management is detailed in note 9.4. In 2019 there are no related party transactions. In 2020, Bpifrance participations, which is represented in the Board, and as such identified as a related party, and which holds 4.5% of the equity of the Group participated in the financial restructuring described in note 1.2 through:

cash subscription in the Rights issue in the amount of €25 million; • New Money financing in the amount of €21 million. Technicolor • group accrued interest due to Bpifrance participations for €1 million and booked financing related fees reinvoiced by Bpifrance participations in the amount of €1 million. No other related party transactions have been identified in 2020.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 237