technicolor - 2019 Universal registration document

DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

Business transformation and social dialogue 5.2.4

GRI [103-1 Labor/Management relations] [103-2 Labor/Management relations] [103-3 Labor/Management relations] [103-1 Freedom of association and collective bargaining] [103-2 Freedom of association and collective bargaining] [103-3 Freedom of association and collective bargaining]

TRANSFORMATION PLANS GRI [404-2] [413-2]

implemented worldwide and strives to minimize the impact on the employees. A dialog was engaged with the employees’ representatives, where present, about the transformation plan and its accompanying measures in order to promote a contractual approach. The DVD Services Division strives to anticipate the evolution of the DVD markets and to optimize progressively its operation footprint (see section 1.2.2).

Due to the continuous changes in the Media & Entertainment industry and its associated Technicolor business divisions, Technicolor divested in the past years from several domains with the objective to sell such businesses to an external party. When such sale of the impacted activities was not achievable, the Group committed significant resources and support, according to its existing policies, in order to mitigate the impact for the concerned stakeholders. The Research & Innovation activity was sold to InterDigital, who took over all employees (see section 1.2.5). Several activities of the Group are subject to fast changing competitive environments requiring regular adaptation of their organization and of the production tool. A transformation plan of the Connected Home segment has been launched to adapt globally this activity and to match with the drastic industry and market changes (see section 1.2.3). This plan was

LABOR RELATIONS GRI [102-41]

Labor relations with Technicolor employees are the responsibility of Site managers in each country with the support of Human Resources. With respect to its European operations, Technicolor entered into a labor agreement with a European council of employee representatives (the “European Council”) confirming the Group’s labor practices. This council, which meets several times each year, comprises union representatives or Members of local works councils in European countries.

The European Works Council is composed with:

Country Belgium

Number of European Works Council seats

1

5

France Poland

3

1

United Kingdom

3

Technicolor’s European Works Council is a supranational body, the purpose of which is to address topics of a transnational nature. The European Works Council is informed of Technicolor’s European operations in respect of personnel, finance, production, sales, and research and development, and their impacts upon employment and working conditions. It is also informed of major structural, industrial and commercial changes as well as organizational transformations within the Group. It met one time in 2019. In accordance with applicable law in the European Union, Technicolor’s managers of each European country meet annually with labor organizations to discuss remuneration and working conditions. In accordance with domestic laws, data regarding the level of unionization is not available in most European countries (the laws in these countries do not allow this type of statistic to be published). In 2019, Technicolor entered into 35 collective bargaining agreements: 2 in Australia, 1 in Belgium, 6 in Brazil, 21 in France, 3 in Mexico, 1 in the United Kingdom and 1 in the United States of America.

In several countries, collective bargaining agreements are negotiated on a pluriannual basis (three years or more), and therefore agreements may not have to be renewed in 2019 in certain countries, due to this calendar. In France, a collective agreement was signed with the Unions in 2019 for a 3 years period of time (2019–2021) on Rennes site about GPEC (for Gestion Prévisionnelle des Emplois et des Compétences that is to say provisional jobs and skills management). This agreement includes the publication of a cartography (to be revised on an annual basis) of existing jobs along with their anticipated quantitative and qualitative evolution within the next 3 years and propose bridges from one job to another. The objective of giving these perspectives is to increase visibility for all Rennes employees on the Company’s vision of the jobs evolution and thus allow employees to become more actors on their career. In order to support these evolutions, the agreement also includes measures about training, secured external mobility, and possibility to get into early retirement program for eligible employees as defined by the agreement. In addition, 7 Health and Safety agreements were signed in Mexico, Brazil and France.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 163