technicolor - 2019 Universal registration document

5 DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

Absenteeism 5.2.6 Absences are generally defined on an annual basis in terms of holidays, absence such as jury duty, or as may be specifically described by bargaining unit contract, employment contract, or regulation. Throughout the year, each employee categorizes any absence according

to its definition, and all absences are subsequently reviewed and vacations, personal and family medical leave or other possible unplanned approved inside the applicable working time tracking software solution.

The average rate of employee absenteeism for sickness and unauthorized absence at the Group level in 2019 was 3.1%.

2019

2018

2017 2.8%

Absenteeism rate (%)

3.1%

3.2%

ABSENTEEISMMETHODOLOGY Population coverage: 99% of the employees are covered for the calculation. All employees with an active and not terminated working contract with Technicolor are included in the scope (interns, apprentices, contracted workers, employees under a notice period are excluded). Absence reported: paid and unpaid medical leave up to 12 continuous week of absence, work accidents absence, short-term and long-term disability if employment working contract is not suspended, unauthorized

absences – Unpaid leave/absence – other unjustified unpaid absence. All other categories of absence are not included. Absenteeism rate divides volume of recorded absence (days) by the product of theoretical number of days worked during the year and the monthly full-time equivalent average headcount of the covered population.

Community impact and regional development 5.2.7

GRI [102-40] [102-42] [102-43] [102-44] [103-1 Indirect economic impacts] [103-2 Indirect economic impacts] [103-3 Indirect economic impacts] [103-1 Training and education] [103-2 Training and education] [103-3 Training and education] [103-1 Local communities] [103-2 Local communities] [103-3 Local communities] [202-2] [203-1] [203-2] [404-2] [413-1]

Technicolor strives to hire locally most of its employees in order to sustain local employment. Technicolor’s locations are usually in very large cities and surrounding metropolitan areas and, as a result, Technicolor holds a minority employer position in most employment areas where it is located and has limited direct local economic influence. However, Technicolor employment may sometimes represent, at the regional level, a significant percentage of the related industry, due to its leadership position and the specific skills required for its business. Therefore, where there is a local talent shortage requiring the hiring of employees from abroad, in addition to its internal Academy training initiative, Technicolor supports the regional development or expansion of education bodies targeting the required skills. Technicolor also contributes actively and dedicates time and resources to industry associations and to cooperative initiatives aiming at developing education and employment at the regional level (Canada, France, UK, India). As part of these cooperative actions, Technicolor representatives chair France and Québec film industry associations, and one Film school. Technicolor focuses its involvement in community initiatives on digital artist education. In addition to its support to the Training Academies (see section 5.2.7.1), and to the close and sustained relationships established by our studios with the major visual effects and animation schools and universities, the Group supports broader educational initiatives to give opportunities to young talent to access studios and to develop their skills: training students in schools (for example SCAD, Sheridan,and Centre NAD, Montreal) Master classes, Educator’s week, consulting of curriculum design (for example with UK Screen Alliance or AI, Seattle), online tests for potential trainees, and supporting third-party digital artists schools.

In 2019, a school-oriented awareness-raising pilot was set up in London to focus working with local schools in less advantaged areas to support our campaign promoting diversity and to have a program to eventually feed into our entry level talent streams. We visited (School 21, East London and The Green School, Middlesex) and did talks and spoke with Year 9s & 10s encouraging them to think of VFX as a career choice We currently partner with an apprenticeship provider (White Hat) setting up a program over 12 months where 20% of participant’s time is on learning. The program is designed to take participants through business-based learning modules, training of the job as well as having class-based learnings. We are looking to develop this scheme further in 2020 as it supports our campaign around diversity. In late 2019, we set up a graduate scheme to help support the next generation leaders and producers. The Graduate program is an 18-week training including 12 weeks at the Technicolor Academy and 6 weeks placement as a VFX Production manager. This program is for recent university graduates to give them the skills they need to be successful VFX Production manager at MPC Film, Mill Film or Mr. X. We have also developed a Producer Training Scheme, to launch in 2020. This targets Business graduates with 3-5 years’ experience in commercial business or large-scale project management roles. After following the Academy and Graduate program, our future VFX Producers will focus on the business management aspects of a show including gaining skills in production accounting and workforce planning. They will then experience a 7-week placement as Digital Producers within our studios.

TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019 166