TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS

Notes to the consolidated financial statements

SCOPE OF CONSOLIDATION NOTE 2. Scope and consolidation method 2.1. [G4-17] GRI

Subsidiaries All the entities that are controlled by the Group (including special purpose entities) i.e. in which the Group has the power to govern the financial and operating policies in order to obtain benefits from the activities, are subsidiaries of the Group and are consolidated. Control is presumed to exist when the Group directly or indirectly owns more than half of the voting rights of an entity (the voting rights taken into account are the actual and potential voting rights which are immediately exercisable or convertible) and when no other shareholder holds a significant right allowing veto or the blocking of ordinary financial and operating decisions made by the Group. Consolidation is also applied to special purpose entities that met the criteria of IFRS 10, whatever their legal forms are, even where the Group holds no shares in their capital. Associates An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policies decisions of the investee without having either control or joint control over those policies. Investments in associates are accounted for under the equity method in accordance with IFRS 11. The goodwill arising on these entities is included in the carrying value of the investment. Joint ventures A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control. Investments in joint ventures are consolidated under the equity method in accordance with IFRS 11 since January 1 st , 2012.

For the years ended December 31, 2017 and 2016, Technicolor’s consolidated financial statements include the accounts of all investments in subsidiaries, jointly controlled entities and associates. Their location is summarized below and main entities are listed in note 14.

Number of companies as of December 31, 2017

EUROPE (exc. France)

FRANCE

U.S.

OTHER

TOTAL

Parent company and consolidated subsidiaries Companies accounted for under the equity method

17

41

23

32

113

1

-

1

3

5

TOTAL

18

41

24

35

118

Number of companies as of December 31, 2016

EUROPE (exc. France)

FRANCE

U.S.

OTHER

TOTAL

Parent company and consolidated subsidiaries Companies accounted for under the equity method

21

42

23

35

121

1

-

1

4

6

TOTAL

22

42

24

39

127

188

TECHNICOLOR REGISTRATION DOCUMENT 2017