technicolor - 2019 Universal registration document

3 RISKS, LITIGATION, AND CONTROLS RISK FACTORS

The first section of this Chapter describes the main risks identified by the Group that could affect its businesses, financial situation or sustainability. Additional risks which are either not identified or which are considered today as not significant may also have a significant impact on the Group’s performance. The next sections describe respectively litigation, internal controls, and insurance. RISK FACTORS 3.1 GRI [102-15]

pages 64 and 65 of the Universal Registration Document ( Document d’enregistrement universel ) of the Issuer for the year ended December 31, 2019, after taking into account any mitigation measure resulting from such internal risk management process. Despite such mitigation measures, the Issuer considers that the risks listed below remain significant for the Issuer and the most material risks are set out first in each category below and materialized by a star  . The risks that Technicolor considers to be the most important are pointed out by two stars  on account of their occurrence probability and/or the seriousness of their prejudicial characteristics.

The following risk factors are limited to risks which are specific to the Issuer and which are material for taking an informed investment decision, as corroborated by the content of the Issuer’s Universal Registration Document. In each category below the Issuer, in its assessment, is taking into account the expected magnitude of the negative impact of such risks on the Issuer and the probability of their occurrence. This description, made of explanations of each individual risk, management and monitoring actions and completed with an indication of the risk trend (materialized by arrows; up  , stable  and down  ), is not intended to be exhaustive and prospective investors should make their own independent evaluations of all risk factors and should also read the detailed information set out elsewhere in this Universal Registration Document. The classification of the risks relating to the business and the financial and market risks below is the result of a regular analysis as part of the Issuer’s internal risk management process which is referred to on

Top three risks faced by the Group: liquidity (cash forecasting); • supplier and key component dependency; • customer concentration and contract negotiation. •

Global market & industry risks Health and safety  • Economic and political conditions •

Legal compliance •

Talent and Human Rights •

Competition •

Operational risks Production Services

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Attract, develop & retain creative, • production, and technology talents  Customer project management •

Customer concentration and contract • negotiation  Raw material and other key input cost • availability and volatility Supply chain and manufacturing •

Supplier and key component • dependency 

Client concentration and contract negotiation •

Cyber and physical content security •

Supply Chain management •

Tax credits evolution •

Labor force availability •

Dependency on client performance • Products development and cybersecurity •

Physical security •

Financial risks Liquidity (cash forecasting)  •

Indebtedness •

Interest rate and exchange rate fluctuations •

Impairment of assets •

Litigation Antitrust procedures  •

Toxic tort lawsuits in Taiwan •

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019