technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 9 - Employee benefit

Significant assumptions used The estimated fair values of the options granted were calculated using the Black&Scholes valuation model. The inputs into the model were as follows:

May & June 2013

December 2015

June 2015

April 2015

October 2014

June 2014

March 2014

October 2013

(in % and in euros)

Weighted average share price at measurement date (2) Weighted average exercise price (2)

190.35 165.51

163.62 127.17 153.36 131.76 109.62

86.4 86.13

191.97 158.76 157.41

132.84 156.33 122.31

106.11

40% 40% 40% 40% 40% 40% 40% 40%

Expected volatility Expected option life (1)

5 years

5 years

5 years

5 years

5 years

5 years

5 years

5 years

Risk free rate

0.12% 0.17% 0.17% 0.13% 0.31% 0.62% 0.77% 0.62%

Expected dividend yield

0.70% 0.8% 0.80%

0%

0%

0%

0%

0%

Fair value of option at measurement date (2) 37.8 28.62 Expected option life is shorter than the contractual option life as it represents the period from grant date to the date on which the option is expected to be exercised. (1) Exercise prices and fair value were modified following the 2020 share consolidation. (2) 61.29 51.57 50.76 39.15 49.14 46.71

Factors that have been considered in estimating expected volatility for the long-term maturity Stock Option Plans include: the historical volatility of Technicolor’s shares over the longest period • available; adjustments to this historical volatility based on changes • in Technicolor’s business profile. For shorter maturity options, expected volatility was determined based on implied volatility on Technicolor’s share observable at grant date. For the 2013 free shares granted as part of Free Share Plan, Technicolor considered an expected turnover of 5% based on historical data of related beneficiaries, an average initial share price of €104.49 and a dividend rate of 0%. For the 2016 performance shares granted as part of the 2016 LTIP, Technicolor considered an expected turnover of 5% based on historical data of related beneficiaries, an average initial share price of €146.70 and a 3-years expected yearly dividend of €4.86. 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 €103.07 and a 3-years expected yearly dividend of €4.86.

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 €34.37 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 data of related beneficiaries, an average initial share price of €19.60 and a 3-years expected yearly dividend of €0. TO INCOME The compensation charged to income for the services received during the period amount to €0 million (expense/income) and €2 million (expense) for the years ended December 31, 2020 and 2019. The counterpart of this expense has been credited to equity. As of December 31, 2020, balances of lapsed plans amounting to €54 million have been reclassed in another caption of equity according IFRS 2 requirements. COMPENSATION EXPENSES CHARGED 9.3.3

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 258