technicolor - 2019 Universal registration document

3 RISKS, LITIGATION, AND CONTROLS RISK FACTORS

Operational risks 3.1.2 GRI [102-15]

PRODUCTION SERVICES

ATTRACT, DEVELOP & RETAIN CREATIVE, PRODUCTION AND TECHNOLOGY TALENTS

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GRI [103-1 Training and education] [103-2 Training and education] Risk identification The Production Services Division’s success depends on the continued involvement of creative teams in the operations; and on the skills, technical knowledge, industry familiarity and relationships of key employees. For example, some film directors want to work exclusively with particular VFX supervisors or colorists. In addition, the technology experts are essential team members in order to improve the quality of the imaging science and to improve production efficiencies. The departure of a key member of the division could prevent the division from executing its business strategy, cause the loss of key customers or projects, and have a material adverse effect on the division’s operations, financial condition and prospects. To ensure its growth and to renew its key personnel, the division must ensure it attracts and retains the best talent. Should the Group and the division become less attractive in the job market, the performance of the division may be negatively impacted. Furthermore, the talent pool from which Production Services draws much of its staff is highly geographically mobile. Any material delays in the immigration process for new hires may also negatively impact the division’s operations.

Risk monitoring and management

To limit the impact that these risks might have, the Group and Production Services have established a set of Human Resource management and recruitment programs including an Employee Value Proposition for attracting talent, an annual (if not more frequently) Talent Review, and a Career Development Plan for high potentials and key talents. Production Services in 2018 launched The Focus to consolidate talent recruitment across all business units to make more efficient the global recruiting process, identify new talent pools, facilitate international mobility and fill the expansion in capacity. The scope of The Focus has since extended to the recruitment needs of Production Services’ other service lines. The division also launched in 2018 the Technicolor Academy across multiple locations to serve as training camp/finishing schools for aspiring digital artists to support the continuous need for future talent. In 2019, Technicolor Academy trained over 602 artists across its primary hubs in Montreal (Canada), Bangalore (India), and Adelaide (Australia). Technicolor has also established an apprenticeship pilot program in London (United Kingdom) and a production management training program in Montreal (Canada) to improve the accessibility of the VFX industry and promote diversity With regard to immigration, the Group has established and continues to nurture longstanding relationships with local external counsel/immigration administrators in order to encourage their support in facilitating the immigration process.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2019