TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 3 RISKS, LITIGATION AND CONTROLS Risk factors

Risk Management Internal proactive policies to increase proportion of women at management position in the Group is the first lever. Developing the attractiveness (responsibility, engagement, development) allows to better absorb changes of regulation, compared to the competition, that may affect the Group’s talent diversity. Proactive actions toward education bodies and public authorities are also key levers to mitigate shortage of talent mix. Employee training is organized to raise awareness on harassment and discrimination and to prevent them. In certain countries, training sessions of self-defense are also organized for women. A whistleblowing procedure is open to receive harassment and discrimination alerts. Sanctions may be taken after investigation and conviction. A supplier’s risk mapping is maintained on a regular basis, together with physical on site audits of suppliers presenting the higher risk (country and activity). The Group whistleblowing procedure will be opened to collect alerts in this area. Contracts with suppliers include terms and conditions forbidding human rights violation with sanctions, including immediate termination for the most important violations. Alternative suppliers are always considered to prevent production disruption. Legal compliance [G4-DMA Compliance] GRI Risk description The Group’s activities do not create any particular exposure to a specific sectorial regulation that could have an impact on its financial position. However, since the Group operates in a large number of countries, it must deal with various and complex regulations put in place by various national and international governments, authorities and organizations.

The laws and regulations to which the Company is subject apply to many different subjects, such as general business practices, competitive practices, anticorruption, handling of personal data, consumer protection, corporate governance, employment laws, internal controls, local and international tax regulations and export compliance for high-tech products. For example, various anti-corruption regulations may apply to the Group, such as the French law of December 9, 2016 on transparency, anti-corruption and modernization of the economy and the U.S. Foreign Corrupt Practices Act. As it is listed on the French stock exchange, the Group is also subject to specific requirements and reporting standards. Despite its best efforts, the Group may have to face proven or unproven allegations that it has failed to comply with national or international regulations, and this could have a negative impact on its reputation, growth outlook and financial performance. In addition, any major change in these laws and regulations could impact the Group's businesses. Risk management To limit its exposure to such risks, the Group looks to develop Compliance programs to cover issues common to its businesses. Under the impetus of the Management and through the actions of the Compliance Officer, the Group seeks to constantly improve its programs and employee awareness initiatives and to put in place procedures for preventing and handling potential risks in this regard. Moreover the Company audits its subsidiaries around the world on a regular basis and consults outside experts to validate the compliance with applicable regulations, of various aspects of its operations. Technicolor conducts a compliance approach across the Group, building on its Code of Ethics and culture of integrity. This compliance program sets down general rules and procedures that must be respected by all employees and entities, on the basis of which a series of business specific and as applicable, local procedures is then defined. These procedures are then translated and adapted in line with local regulations and culture. In 2017, the Group updated and improved its existing Code of Ethics.

61

TECHNICOLOR

REGISTRATION DOCUMENT 2017