technicolor - 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS Note 8 - Shareholders’ equity and equity instruments

Shareholders’ equity and equity instruments

NOTE 8

Capital and additional paid-in capital

8.1 On December 31, 2020, the capital of Technicolor SA is €2,357,954.83 (235,795,483 shares with a per value €0.01). In 2020, equity has evolved as follow: shares’ nominal value has been increased from €1 to €27, within • a shares’ consolidation operation; share capital has been reduced by €414,307,673.86 through • reduction of the nominal value, from €27 to €0.01; share capital has been increased by €567 through the issuance • of 56,700 new shares, within the 2017 Long-Term Incentive Plan; share capital has been increased by €1,107,382.55 through • the issuance of 110,738,255 new shares and the share issue premium has been increased by €328,892,617.35;

share capital has been increased by €921,787.70 through • the issuance of 92,178,770 new shares and the share issue premium has been increased by €329,078,208.90; share issue premium has been reduced by €218,324.14 for allocation • to the legal reserve of up to 10% of the share capital and by €15,167,267.49 for imputation of the expenses incurred on share capital increases; share capital has been increased by €174,713.44 through • the issuance of 17,471,344 new shares, by exercise of shares warrant. On December 31, 2019, the capital of Technicolor SA was €414,461,178 (414,461,178 shares with a per value €1). It had not change compared to the previous year.

Treasury shares

8.2

Treasury shares are recorded at purchase cost. A depreciation charge is recorded when the purchase cost is higher than the average stock price for the last month of the financial period. Gains and losses on disposal are booked under “extraordinary profit/(expense)”.

2020

2019

Number of treasury shares at opening

- - - - -

1,074,994 (703,925) (371,069)

Net movement of the year related to the share repurchase program

Net movement of the year related to the treasury shares part of the stock options and free shares plans

Number of treasury shares at closing

- -

Net Value in euros (1)

In 2020, Technicolor SA does not hold treasury shares as all of them have been sold during 2019. (1)

Treasury shares were held for the purpose of meeting the obligations under debt securities giving access to capital or stock-option schemes or any other form of allocation of shares to employees and Directors of the Company. Other equity instruments 8.3 The deeply subordinated perpetual notes (“ Titres Super Subordonnés – TSS”) are booked as other equity instruments. Further to the restructuring of the Company’s debt in 2010, the characteristics of these perpetual notes are now as follow: 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 other distributions 8.4

No dividend was proposed by the Board of Directors in 2020, concerning the fiscal year 2019. No dividend was proposed by the Board of Directors in 2019, concerning the fiscal year 2018.

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