TECHNICOLOR_REGISTRATION_DOCUMENT_2017

6 - FINANCIAL STATEMENTS Notes to the Parent Company Financial Statements

SHAREHOLDERS’ EQUITY AND EQUITY INSTRUMENT NOTE 8. Capital and additional paid-in capital 8.1. On December 31, 2017, the capital of Technicolor SA was €414,461,178 (414,461,178 shares with a per value €1). In 2017, change in equity was as follow:

On December 31, 2016, the capital of Technicolor SA was €413,245,967 (413,245,967 shares with a per value €1). In 2016, change in equity was as follow: the share capital was increased by 1,802,677 new shares as part of ■ the Management Incentive Plan (MIP 2015 and MIP 2016) and the additional paid-in capital by €4,252,964.

the share capital was increased by 436,461 new shares as part of the ■ Management Incentive Plan (MIP 2015) and the additional paid-in capital by €955,850; the share capital was increased by 778,750 new shares delivered to ■ eligible employees of the Group, as part of the free share plan “MyTechnicolorShares.”

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)".

2017

2016

Number of treasury shares at opening

752,768

401,524

Treasury shares allocated in the year as part of the stock options and free shares plans (2)

-

(250)

Net movement of the year related to the share repurchase program (3)

225,283 978,051

351,494 752,768

Number of treasury shares at closing

Net Value in euros (1) 3,747,279 The gross value of treasury shares held at December 31, 2017 is €57,029,458 (€57,117,377 as of December 31, 2016), depreciated for €54,061,073 (€53,370,098 as of (1) December 2016). Shares delivered as part of the Free Share Plan in 2016. (2) The Combined Shareholder’s Meetings on April 29, 2016 and May 24, 2017 authorized the renewal of a share repurchase program. Accordingly, in 2017, 3,006,648 shares were (3) repurchased for a total amount of €11,210,985 and 2,781,365 shares were sold for a total amount of €10,361,241 (in 2016, impact of the repurchase program was an increase of treasury shares by 351,494 for a net cash impact of €2,013,935). 2,968,385

Treasury shares are hold 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.

270

TECHNICOLOR REGISTRATION DOCUMENT 2017