technicolor - 2019 Universal registration document

DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

Management of business cycles 5.2.2

GRI [102-8] [103-1 Employment] [103-2 Employment] [103-3 Employment]

Working time is managed according to the needs of Technicolor’s various business activities in both the parent company and its subsidiaries. The Group complies with regulatory obligations and contractual commitments in terms of working time in each country in which it operates. Through various working time management tools, the Group ensures employees do not exceed legal thresholds and are appropriately compensated for any overtime according to their employment agreement. However, a large part of Technicolor’s workforce is exempt and paid a flat rate for a number of days worked per year: worked days are then monitored. Part-time and remote working are authorized on a case-by-case basis according to the Group policies and depending on the occupational requirements. During 2019, Technicolor had in average 142 employees working less than 5 days per week. Over the year, part time employees working at least half time represent 96% of part time employees and part time employees working at least the equivalent of 4 days per week (80% of a full-time worker’s time) represent 59% of part time employees. French “intermittent” contracts are not considered as part time employees. Some activities of Technicolor experience seasonal peak workloads (such as DVD Services) and require significant interim (agency workers) and temporary (fixed-term) workers to support client requirements, mainly in the distribution and warehouse sites, in addition to overtime. These seasonal workers are typically directly hired over a period of a few months (temporary) or contracted through a third-party labor services company (interim), while overtime is more achievement-related and is used to complete very time-limited peak activity (manufacturing or

project development achievement). Interim workers are not included in the year-end Group headcount figures as they are not employees of the Group. The main countries employing seasonal workers are the United States, Mexico, Poland and to a lesser extent Canada and Australia. Production Services activities such as Visual Effects, Animation and Post-production are mainly project-driven activities and project staffing relies for a significant part on fixed-term contracts (including “Intermittents” contracts) to be able to adapt team skills mix, experience and size to the requirement and the timeline of the productions, as this is the common rule in this industry. Although we are fully dependent on the timeline of our customers, we strive to reduce the percentage of the fixed-term contracts in our workforce and to increase proportionally the percentage of permanent employees. Overall, seasonal interim workers represent about 4,415 full time equivalent jobs while at the peak they may more than double the number of workers present on the relevant sites. Fixed-term contracts and “intermittents” represent about 3,831 full time equivalent jobs across the Group activities. Across Technicolor, total overtime represents about 606 full time equivalent jobs. Working time is managed in the Group’s various sites via software such as ProTime, ADP, Punchout, Kronos, Solus, Sisnom and Casnet. There are also some additional manufacturing related tools that track working time such as ScheduAll, Laserbase and CETA.

2019

5

2018

2017

Average number of part time employees

142 96% 59%

205 96% 63%

285 97% 57%

% of part time employees working at least half time % of part time employees working at least 4 days per week

Full time equivalent number of fixed term contract (including “intermittents”)

3,831 4,415

2,723 5,414

2,890 5,960

Full time equivalent number of agency workers

Full time equivalent of overtime (including “intermittents”)

606

598

580

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 159