technicolor - 2020 Universal Registration Document

DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

PERFORMANCE, RECOGNITION 5.2.1.3 AND RETENTION GRI [102-36] [401-2] [403-6] [404-3]

In the case of individual recruitments (replacements, job creations, creation of teams), the need is initially qualified by the manager with the help of the local HR who will then ensure appropriate research, contact, and recruitment of candidates. To address these different situations, the Group has invested heavily in the development of its recruitment organization and teams and accompanied the professionalization of their practices. In that respect, we created in 2018 The Focus as our new in-house recruitment agency, hiring for Technicolor’s award-winning VFX studios – MPC Film, Mr. X, Mikros, and the Technicolor Academy. The Focus as a brand is using its own unique website to make it easy for candidates to find the right jobs, latest news and career development opportunities (whether they are a recent graduate or already established in the industry), while ensuring the Brands are effectively utilizing the resources among themselves and within the industry. With, during normal years (without pandemic), more than 50 major movies and TV projects in our portfolio, candidates working within the setup of The Focus are able to receive better service to their career aspirations and personal affiliations since we can attract and retain talent across our multiple locations and brands. The Focus leverages experienced Recruiters to represent the Brands and their proposition/values, but also takes care to create harmonization in hiring practices and to manage the price point for the most economical values across the businesses and the brands. When there is a high volume need in a specific department, these Recruiters are partnered with Sourcers to ensure each brand has the best access to the talent in the industry. 3,100 people were hired in 2019 and 722 in 2020 through The Focus, due to the demand for the world’s best VFX artists being greater than ever. In 2020, the Group developed The Focus online platform further with the creation of user profiles, personalized push notifications, virtual academies and masterclasses. As always, we look to pioneer the way in which talent is engaged, managed and acquired within the VFX industry. The pandemic created pressure to accelerate this move. For all other businesses and transversal functions, 30 recruiters in all organizations and regions have had access to and benefitted from support in their professional use of online applicant tracking platforms and access to external recruitment sites (such as LinkedIn). A specific priority is given to Animation & Games to scale their recruitment processes to new massive hiring in Europe, India and Canada. This on-going practice allows Technicolor to extend its scope of research and to reach candidates traditionally invisible to the Group. Lastly, the Group has locally developed for many years, in countries like India, an attractive Employer branding that allows candidates to better recognize Technicolor as an employer of choice with due to its culture and values.

Since 2010, Technicolor has been evaluating the individual performance of all employees. Committed to offer the best support possible in alignment with the constant evolution of businesses (project mode, constant technological changes, continuous improvement…) and the needs of employees (purpose, transparency, feedback in real time…), in March 2018 the Group launched a project to overhaul the system of performance evaluation and employee development. This tool called “TEAM” is based on 4 fundamental principles: contribution replaces the notion of performance: the contribution is • defined in this tool as the global appreciation of the concrete contribution of an individual to the results and successes of the collective; observed behaviors (the “how”) are taken into account in the evaluation • of the contribution as well as the results obtained (the “what”); “continuous” conversations aim at ensuring frequent exchanges • between employees and their managers: setting or modifying objectives or missions, feedback loops on obtained results and observed behaviors; and finally for those who wish to do so, integration into the contribution assessment • of the justified and formalized opinions of relevant stakeholders who collaborated with the person evaluated (multisource feedback). After the pilot phase, TEAM is expanding progressively to other business units. 35% of the employees are now using it, as well as 62% of the employees having a variable compensation. In a competitive environment, the compensation and benefits policies, including the total remuneration policy, are a key pillar of retention of acquired talent. The remuneration policy is tailored to acknowledge and fairly recognize an employee’s contribution to the short and longer-term success of the Group. Technicolor uses a classification structure based upon Willis Towers Watson methodology, with grades and bands that ultimately emphasize and reinforce the strong link between contribution and remuneration. Technicolor is steadily reviewing its job definitions and levels and reflects the evolutions of the Group. Such classification allows the Group to ensure the internal equity of remuneration packages. Moreover, Technicolor participates to relevant salary surveys to assess the competitiveness of remuneration in the proper marketplaces. This provides Technicolor with sustainable, objective and equitable means of remunerating employees while closely controlling its wage bill. In 2018, this job architecture has been rebuilt for Production Services jobs, to cope with the evolution of this domain, of its work organization and of its skills. It has been rolled out in 2019, and fully implemented during 2020.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020