technicolor - 2020 Universal Registration Document

FINANCIAL STATEMENTS NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS Note 11 - Provision & Contingencies

Key management compensation 10.3 Total compensation due by Technicolor SA for the fiscal year 2020 to the Board Members of the Company amounts to €878,125. The amounts due to non-resident for French tax purposes are subject to a withholding tax. The amount of the fixed and variable compensation due by Technicolor SA for the fiscal year 2020 to Mr. Richard Moat, its current CEO, amounts respectively to €562,500 and €863,835.

The CEO is a beneficiary of the 2020 Long-Term Management Incentive Plan (LTIP 2020) put in place by the Board of Directors on December 17, 2020 for its first two components. The acquisition of the rights to receive shares is subject to the terms and conditions of the Plan. In particular, it is expected that the final acquisition of the performance shares will take place on December 17, 2023 subject to a condition of presence and the achievement of two performance conditions in line with objectives of Adjusted EBITA and Total Shareholder Return.

Provision & Contingencies

NOTE 11

Detail of provision 11.1

PROVISIONS Provisions are recorded at the balance sheet date when the Company has an obligation as a result of a past event and when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. The obligation may be legal, regulatory or contractual or it may represent a constructive obligation deriving from the Company’s actions where, by an established pattern of past practice, published policies or a sufficiently specific current statement, the Company has indicated to other parties that it will accept certain responsibilities, and as a result, has created a valid expectation on the part of those other parties that it will discharge those responsibilities. The recorded provision represents the best estimate of the expenditure required to settle the obligation at the closing date. If a reliable estimate cannot be made of the amount of the obligation, no provision is recorded but details of the obligation are disclosed in the notes to the financial statements. RESTRUCTURING PROVISIONS Provisions for restructuring costs are recognized when the Company has a constructive obligation towards third parties, which results from a decision made by the Company before the closing date and supported by the following items: the existence of a detailed and finalized plan identifying the sites • concerned, the location, the role and the approximate number of headcounts concerned, the nature of the expenses that are to be incurred and the effective date of the plan; and the announcement of this plan to those affected by it. •

The restructuring provision only includes the costs directly linked to the plan. Restructuring costs encompass estimated shut-down costs, the impact of shorter useful life for property and equipment and the costs linked to employees’ lay-off. POST-EMPLOYMENT OBLIGATIONS The costs for employee pensions retirement at Technicolor are accounted for progressively as employees acquire their rights to benefits. The valuation method applied takes into account future changes in payroll obligations. Post-employment benefits are accounted for when rights to benefits are acquired and payment thereof becomes probable. Such payments and provisions are based on the estimated salaries and seniorities of employees at their date of departure. Actuarial assumptions are as follows: discount rate: 0.6%; • projected long-term inflation rate: 1.7%; • salary rate of increase: 3.2%. • The Company records its commitments for jubilee awards (médailles du travail) , in compliance with the ANC Recommendation n° 2013-02 issued on November 7, 2013. These charges are recognized separately from retirement provisions and actuarial differences are booked immediately in the statement of operations.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020 301