technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 10 - Provisions & contingencies

Detail of provisions 10.1

Provisions for risks & litigations related to

Provisions for restructuring related to

Provisions for warranty

continuing operations

discontinued operations

continuing operations

discontinued operations

Total 100

(in million euros)

As of December 31, 2019

26

5 4

53

16 94 (8)

-

Current period additional provision

13

9

2

122 (18) (78)

Release

(8) (6) (2) 23 23

(1) (1)

(1)

- -

Usage during the period

(25)

(46)

Other movements and currency translation adjustments AS OF DECEMBER 31, 2020

(1)

(1) 35

1

-

(3)

6 4 2

57 56

2 2

123

Of which current

5

90 33

Of which non-current

-

30

1

-

The provisions for restructuring are mainly composed of termination costs related to continuing operations (for both employees and facilities).

Contingencies 10.2

GRI [103-2 Anti-competitive behavior] [103-3 Anti-competitive behavior] [103-2 Environmental compliance] [103-3 Environmental compliance] [103-2 Socioeconomic compliance] [103-3 Socioeconomic compliance] [206-1] [307-1] [419-1]

confirmed the Taiwan High Court decision of awarding (i) NTD518 million ( c. €15 million at the exchange rate as of December 31, 2020) in damages to 260 claimants; and remanded the claims of 246 claimants for further proceedings (ii) at the High Court. General Electric paid to the Court the full amount of the decision in December 2019. On March 5, 2020, the Taiwan High Court ruled on the 246 remanded claims and awarded NTD54.7 million (€1.6 million) in damages plus interest. This ruling is on appeal to the Taiwan Supreme Court. In 2016, the association brought a second lawsuit against Technicolor and certain of its subsidiaries and General Electric on behalf of additional former workers making virtually identical allegations as were made in the first lawsuit. The Taipei District Court announced its ruling on December 27, 2019 and awarded approximately NTD2.3 billion ( c. €66.8 million at the exchange rate as of December 31, 2020) plus interest. Technicolor and General Electric were held jointly and severally liable. Technicolor filed its appeal of this decision to the Taiwan High Court in January 2020. Technicolor and its subsidiaries claim, among other reasons, that TCETVT operated for less than four years after its purchase from General Electric, while General Electric and its predecessor-in-interest RCA Corporation, ultimately owned TCETVT for approximately twenty years of operations.

In the ordinary course of the business, the Group is involved in various legal proceedings and is subject to tax, customs and administrative regulation. The Group’s general policy is to accrue a reserve when a risk represents a contingent liability towards a third-party and when the probability of a loss is probable and it can be reasonably estimated. Significant pending legal matters include the following: BRAZILIAN TAX LITIGATION The Brazilian Tax Authorities have raised a tax assessment on Technicolor Brasil Midia E Entretenimento LTDA for fiscal years 2014 and 2015. Technicolor appealed to the first-tier tribunal to challenge the whole tax assessment. TAOYUAN COUNTY FORM RCA EMPLOYEES’ SOLICITUDE ASSOCIATION Technicolor, certain of its subsidiaries and General Electric are being sued by an association of former employees (or heirs of former employees) at a former manufacturing facility in Taiwan (TCETVT). They allege exposure to various contaminants while living or working at the facility, which allegedly caused them to suffer various diseases, including cancer, or caused emotional distress from fear that living and working at the facility increased their risk of contracting diseases. After a first ruling of the Taiwan court and an appeal before the Taiwan High Court (first appeals court), the Taiwan Supreme Court, in August 2018:

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