technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 9 - Employee benefit

The table below presents the impact of hedging instruments on the Group’s performance in 2020.

Instruments not documented as hedges

Foreign currency hedges

Interest rate hedges

Impact of effective portion (1)

Impact of ineffective portion (2)

Impact of effective portion (1)

Impact of ineffective portion

Impact of changes in value

(in million euros) Gross margin

- - - - - -

- - 1 - 1 1

-

- - - - - - - -

- - - - - - - -

Net interest expense

(1)

Foreign currency gain (loss)

Other

-

Net financial result

(1) (1) (1) (1)

NET OPERATING RESULTAT BEFORE TAX Gains/(losses) before tax resulting from the valuation at fair value of instruments hedging future cash flows OTHER ELEMENT OF GLOBAL RESULT

(5) (5)

- -

The effective portions of the hedges are recorded in the same item of the financial statement as the underlying hedged elements. (1) The ineffective portions of foreign exchange hedges come mainly from forward points on forward exchange operations and foreign currency swaps, which the Group excludes (2) from hedging relationships and from the foreign exchange gains and losses on the reduction of overhedges. Forward points related to the hedges of financial exposures are recorded in “Net interest expense”. The forward points related to the hedges of commercial exposures as well as the foreign exchange result on the reduction of these hedges are recorded in “Foreign exchange gain/(loss)”.

The impact of the hedges of future cash flows is represented by the gains/(losses) before taxes on the fair value of instruments hedging such cash flows and is recorded in net equity. At December 31, 2020 the impact is equal to €(5) million.

Employee benefit

NOTE 9

GRI [201-1] [201-3] [401-2]

Information on employees 9.1 The total headcount of the Group consolidated entities as of December 31, 2020 is 13,289 employees (17,414 as of December 31, 2019).

Please refer to Chapter 5.1 of the Registration Document for more detail on employees of the Group. The employee benefits expenses (including only employees in the consolidated entities) are detailed below:

6

2020

2019

(in million euros)

Wages and salaries Social security costs

488 124

746

151

Compensation expenses linked to share-based payments granted to Directors and employees (note 9.3.3)

-

2 7

Pension costs - defined benefits plans (note 9.2.2)

3

Termination benefits

70

24

TOTAL EMPLOYEE BENEFITS EXPENSES (EXCLUDING DEFINED CONTRIBUTION PLANS)

685

930

Pensions costs – Defined contribution plans

18

20

The termination benefits are presented in restructuring expenses within continuing operations in the consolidated statement of operations.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 249