Universal Registration Document 2021

RISKS, LITIGATION, AND CONTROLS INTERNAL CONTROL

Under the responsibility of the Chief Audit Executive, Internal Audit, Internal Control, and Enterprise Risk Management allows for an effective integrated framework with coordination and efficiencies surrounding the risk identification/mitigation and maturing of the internal control environment. It enables Internal Audit recommendations to be better embedded in the Internal Control framework, and deficiencies reported during the 8TIC’S Internal Control campaign to be closely followed up by Internal Audit all while ensuring the key risks across the Group are effectively monitored and remediated if needed. Throughout the year, the Internal Audit Department presents the audit schedule to the External Auditors, provides updates, and shares the conclusion of the reports resulting from audit reviews. In addition, the Internal Audit Department coordinates control process/site reviews with the External Auditors to ensure coverage of various areas. The Internal Audit Department consists of approximately 11 auditors who have associated professional certifications ( i.e. , CPAs, CIA, CFE, etc .) and prior experience in a large range of domains like finance, accounting, operations, engineering, quality, IT/Security, etc . The team is located in several key sites for the Group: Paris (France), Norcross, Georgia (US), Memphis, Tennessee (US), New York (US), Montreal (Canada), Guadalajara (Mexico), and Bangalore (India). The Chief Audit Executive administratively reports to the Chief Executive Officer, and functionally to the Audit Committee. The internal control related to the preparation and treatment of accounting and financial information relies on the Controlling organization with its processes and controls (budgetary process, monthly reporting and forecasting, quarterly reporting of financial and operational performance review) as well as on the Group’s Accounting Department (regrouping accounting standards and methods and share services centers teams) and the Internal Audit Department. Under the authority of the Group’s Chief Financial Officer, the dedicated teams are responsible for: the establishment of the Group’s consolidated financial statements • and Technicolor’s statutory accounts; the preparation of the budget and the analysis of its execution through • monthly management and performance reporting; and the implementation of the Group’s accounting and Controlling • methods, procedures and standards and their adaptation in accordance with changes. The Group’s financial organization follows its operational organization, based on four segments (Technicolor Creative Studios, Connected Home, DVD Services and Corporate & Other), organized in several activities. Each one of these businesses and activities is under the responsibility of a Controller and is assisted by a controlling support

The Internal Audit Department conducts audits in various domains, covering operational and financial processes, specific contracts or projects, compliance, fraud prevention, security, and follow-up audits at global and local levels. In 2021, 10 audit engagements were performed and completed (both assurance and advisory). These audits were carried out in accordance with the methodology and procedures set by the Internal Audit Department (aligned with the International Standards for the Professional Practice of Internal Auditing), including in particular: performance of tests (walkthroughs and detailed testing) and interviews • with the control owners and reviewed on a risk-based approach; the issuance of a report after the audit, which lists agreed • management actions and deadlines for any internal control needed remediations. The Internal Audit Department report is an excellent communication tool and plays an important role in the continuous improvement of controls within the Group. In 2022, the Internal Audit Department will continue to focus on processes and efficiency improvements, testing of operational effectiveness of key controls and enhancing the overall review process. team, in charge of budget, reporting follow-up, performance analysis and estimates. Accounting operations within the legal entities are for the most part managed through two internal shared services centers. The accounting teams work according to Group accounting standards and methods and liaise with the Controlling organization through Services Level Agreements. BUDGETARY PROCESS The budgetary process is mandatory for all of the Group’s segments and businesses. It includes a multi-steps bottom-up thorough review process including: in October discussion of macro-assumptions between Group CEO, • Group CFO and BDs’ CEOs: market analysis and projections, analyses trends, costs base structure, customers and suppliers base analysis, and capex needs. It includes also key strategic initiatives and their financial impact; in November preparation of bottom up 3-year Budget by BDs and • presentation to Group CEO and Group CFO; in December additional review meetings between Group CEO, • Group CFO & division’s CEOs to focus on specific issues if necessary;

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Internal control procedures relating to the preparation 3.2.4 and treatment of accounting and financial information [103-2 Economic performance]

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2021