TECHNICOLOR_REGISTRATION_DOCUMENT_2017

3 - RISKS, LITIGATION AND CONTROLS Insurance

CORE INSURANCE PROGRAMS The Group’s insurance policies are issued on an “all risks” basis, but with standard market exclusions. The deductible levels are determined and applied according to the assets and operational risks of the business units. The main insurance policies contracted by Technicolor include, among others: Property insurance : This program provides cover for risks of fire, ■ water damage, natural events, terrorism (depending on the legal restrictions in each relevant country or state) and also business interruption resulting from these events. This cover is generally set on the basis of property value; where this is impossible, cover is set at a level corresponding to the worst-case scenario subject to market constraints. Generally, when damage to insured assets could lead to a business interruption, insurance is taken out to cover the financial consequences, such as operating losses and/or additional costs. The amount of cover reflects the expected downtime at the damaged site based on the worst-case scenario and on the recovery plans in place.

The Group carries exposures in high risk natural hazard areas and has purchased adequate specific insurance coverage in this regard. In addition, Technicolor has also covered the risk of damage to goods in transit. Liability insurance: This program provides cover for general and ■ professional liability in the course of business operations as well as product liability for the entire Group. In addition, Technicolor has insurance for the risks associated with the liability of its Directors and officers as well as environmental damage caused by pollution. Workplace accident: Insurance policies are purchased whenever ■ required by law or when activities or circumstances render them necessary (e.g Employer’s Liability in the United Kingdom, Workers’ Compensation insurance in the United States). To prevent certain information being used to the detriment of the Group and its shareholders, especially in legal disputes, the amount of premiums and terms of cover are kept strictly confidential, especially in the case of liability insurance. The Group does not foresee difficulties in setting up insurance policies in the future.

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TECHNICOLOR REGISTRATION DOCUMENT 2017