Universal Registration Document 2021

DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

PERFORMANCE, RECOGNITION 5.2.1.3 AND RETENTION [102-36] [401-2] [403-6] [404-3]

The Group has invested heavily in developing TCS Talent’s centralized recruitment organization to break down our silos, remove internal competition, improve internal talent mobility, and assure adherence to general data protection regulations. Integrating recruitment tools such as a centralized applicant tracking system and standardizing practices to address transparency, fairness, and inclusion throughout the recruitment workflow, internally and externally, with one centralized recruitment team has streamlined year-over-year growth. Leveraging trained regional recruiters to represent our activities, Brands, and their proposition/values, TCS Talent creates harmonization in hiring practices and efficiency, managing the price point for the most economical values across the businesses and the brands. Integrating a centralized sourcer model to accompany recruitment efforts allows the team to pivot where resources are needed most. In 2021, the team achieved +6,500 direct hires amid a global pandemic, compared to 3,100 people in 2019 and 722 in 2020. With the demand for the world’s best VFX artists being more significant than ever as the pandemic continues, 75 recruiters and sourcers currently make up the global TCS Talent team. In 2020, the Group developed TCS Talent online platform further by creating virtual academies and masterclasses. We always look to pioneer how talent is engaged, managed and acquired within the VFX industry. The pandemic created pressure to accelerate this move. In 2021, about 1,600 Artists were enrolled through TCS Talent to the Academy, of which about 1,200 were subsequently hired or retained after the Academy session completion (see section 5.2.7.1 about the Academy). Due to the important number of projects and the related needed skills who must be located in different studios around the world, strategic workforce planning has been introduced with the support of people analytics. It is an effective way to build a comprehensive view of our current workforce and to build short and medium headcount and hiring plan. Within the divisions of Technicolor Creative Studios, headcount requirements are driven by revenue and project targets. The TCS Strategic workforce planning unit works with business lines to build detailed full year headcount forecasts to establish hiring requirements, attrition forecasts, location strategy & real estate requirements, software licensing and any other headcount related insights. This headcount forecast is then used as the budget target moving forward, and divisional performance against these targets is monitored. Within a 6 months window the Resource Management function works with divisions to assign resources to shows, and dynamically manage peaks and troughs in schedules to ensure optimal utilization of resources and cost management. For other businesses (Connected Home and DVD Services) and transversal functions, 10 recruiters and sourcers have access to and benefit from support in their professional use of online applicant tracking platforms and access to external recruitment sites (such as LinkedIn). Lastly, the Group has been locally developing for many years, in countries like India, an attractive Employer branding that allows candidates to better recognize Technicolor as an employer of choice due to its culture and values.

Since 2010, Technicolor has been evaluating the individual performance of all employees. Committed to offer the best support possible in alignment with the constant evolution of businesses (project mode, constant technological changes, continuous improvement…) and the needs of employees (purpose, transparency, feedback in real time…), in March 2018 the Group launched a project to overhaul the system of performance evaluation and employee development. This tool called “TEAM” is based on 4 fundamental principles: contribution replaces the notion of performance: the contribution is • defined in this tool as the global appreciation of the concrete contribution of an individual to the results and successes of the collective; observed behaviors (the “how”) are taken into account in the evaluation • of the contribution as well as the results obtained (the “what”); “continuous” conversations aim at ensuring frequent exchanges • between employees and their managers: setting or modifying objectives or missions, feedback loops on obtained results and observed behaviors; and finally for those who wish to do so, integration into the contribution assessment • of the justified and formalized opinions of relevant stakeholders who collaborated with the person evaluated (multi source feedback). 36% of the employees are now using it, as well as 89% of the employees having a variable compensation. In a competitive environment, the compensation and benefits policies, including the total remuneration policy, are a key pillar of retention of acquired talent. The remuneration policy is tailored to acknowledge and fairly recognize an employee’s contribution to the short and longer-term success of the Group. Technicolor uses a classification structure based upon Willis Towers Watson methodology, with grades and bands that ultimately emphasize and reinforce the strong link between contribution and remuneration. Technicolor is steadily reviewing its job definitions and levels and reflects the evolutions of the Group. Such classification allows the Group to ensure the internal equity of remuneration packages. Moreover, Technicolor participates to relevant salary surveys to assess the competitiveness of remuneration in the proper marketplaces. This provides Technicolor with sustainable, objective and equitable means of remunerating employees while closely controlling its wage bill. In 2018, this job architecture has been rebuilt for Technicolor Creative Studios jobs, to cope with the evolution of this domain, of its work organization and its skills. It has been rolled out in 2019, and fully implemented during 2020. As this business evolves rapidly, a new update is under preparation for a roll-out during 2022.

5

161

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021