Universal Registration Document 2021

3 RISKS, LITIGATION, AND CONTROLS INTERNAL CONTROL

GROUP MANAGEMENT AND DECISION-MAKING PROCESSES [102-19] [102-26]

The purpose of this annual four-step-process, supported by the Internal Audit Department, is to identify, assess, manage and monitor risks that may impact the Group’s ability to achieve its near and long-term objectives. The risk identification and analysis process were revamped in 2020 to consist of a bottom up and top-down structured approach, summarized as follows: risk identification by risk advisory leads and their subcommittee • including stakeholders of different areas and incorporated (with the support of Internal Audit) into the consolidated questionnaire completed by each member of the Executive Committee and the ranking of risks according to criteria including potential impact and • vulnerability, performed by the Executive Committee, Management Committee members, and other relevant stakeholders. Each year, the Risk Mapping is reviewed and reassessed with any potential new risk(s). Subsequently to the risk ranking step, the CEO appoints risk owner(s) for each of the top 10 risks, among members of the Executive Committee. These risk owners further assess the risk assigned to them, monitor, and mitigate them. Status reports on each top risk are presented to the Audit Committee. In 2022, Internal Audit will implement a new Governance, Risk and Compliance (GRC) tool, which will streamline the risk management process, allowing further efficiency in capturing, assessing, and monitoring Technicolor risks. Internal Audit 3.2.3 [102-33] [102-34] As defined in the “Internal Audit Charter”, Internal Audit performs independent and objective assurance, and advisory audits that are dedicated to adding value and improving Technicolor’s performance. It conducts risk assessments at all levels within the Group, identifies and proposes improvements in financial and operational processes, and helps the organization define action plans to mitigate risks and reinforce the control environment and governance principles. The Internal Audit Department reports its results to the Group’s management. The Audit Committee reviews and approves the annual Internal Audit Plan based on the pluri-annual Internal Audit plan and is informed of the main audit results. The Internal Audit Department also provides oversight support in the Technicolor Risk Management process. Management Committee, and Key Subject Experts; synthesis of main risk areas into a Risk Universe; •

The Group Management is organized around 2 principal bodies: the Executive Committee; • the Management Committee. • Placed under the authority of the Group’s Chief Executive Officer, the Executive Committee currently comprises 8 members consisting of Senior Executive Vice-Presidents and Executive Vice-Presidents in charge of Technicolor’s major businesses and of the principal corporate functions (Strategy, Finance, People & Talent, Communication). The Executive Committee meets to analyze and evaluate the financial performance (sales, operating income, and cash flow) of the Group’s various businesses compared with the budget, strategic developments, and major events affecting the Group (sales contracts, partnerships, investments, etc .). The Management Committee includes the Executive Committee Members as well as leaders of Technicolor’s main functions and business operations. Its responsibilities are to ensure achievement of the Group’s objectives and to provide leadership across Technicolor. Depending on the topics, these Management Committee Meetings can be extended to some specific internal or external guests. Together, the 2 senior management bodies help ensure rapid, responsive decision-making as well as smooth, efficient implementation of such decisions. The Group holds quarterly Business Reviews for each business, during which the management reviews the performance of the business, the progress of the key programs in each business, key performance indicators, and any specific operational topic which requires management attention. These programs cover mainly key customer issues, new product introduction, operational performance, transformation programs, cost reduction, and HR-related programs. The Group established an Investment Committee in 2010 to drive prioritization and optimization of resource allocation across the Company’s organization. The Investment Committee is composed of the CEO, the CFO, the COO, the People & Talent Director, and the Group General Counsel. The Investment Committee reviews all significant investment decisions, including material customer opportunities, capital expenditures, restructuring, M&A and joint ventures, asset disposals, pension contributions, large procurement contracts, leases, and financing commitments. The Investment Committee ensures compliance with the Board Internal Regulations and debt agreement obligations and is a key part of the Group’s internal control procedures.

RISK MANAGEMENT

[102-15] [102-30] [102-33] [102-34]

The Group started evaluating its risks on a worldwide basis in 2005, with the Enterprise Risk Assessment (ERA) program. The risk management process evolved in 2010 to follow the strategic evolution of the Group. It is now under the Executive Committee responsibility using large support of the Management Committee and is called Technicolor Risk Management (TRM).

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021