technicolor - 2020 Universal Registration Document

5 DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

business and skills focus: the remuneration of professionals, • engineers and managers is a sound, market-driven policy and ultimately administered to stimulate business performance. A substantial part of the total remuneration package is composed of variable elements which drive a performance culture and support the Company’s strategy. These variable elements are meant to stimulate, recognize and reward not only individual contribution, especially innovation and risk-taking, but also and in particular, solid and consistent group and division performances. In accordance with the principles and rules established by the Group, any group or division entity is entitled to recognize the potential and encourage the development of its employees by using the different compensation elements in force within the Group. The evolution of remuneration is measured at constant currency rate exchange (end of year) and at constant population of employees (all employees present both in the reporting year and the past year), and on the evolution of the base salary payroll mass (without variable elements and social contributions paid by the employer).

The remuneration policy is structured around flexible and competitive fixed and variable compensation elements driven by market best practices and the Group’s objectives for long-term value creation appropriate to circumstances and goals: competitiveness: appropriate market benchmarks of total • compensation against comparable companies allow Technicolor to offer competitive compensation packages to employees in accordance with competitive pressures in the marketplace. This ensures that Technicolor continues to attract, motivate and retain high potentials and key contributors for which Technicolor competes in an international marketplace, while controlling cost structures; equitable approach/internal fairness: Technicolor believes that • it remunerates its employees on a fair basis in each of its geographical locations in a way that aligns with both local market standards and proposed corporate programs. The remuneration policy is set according to the Group’s “broadbanding policy” which allows consistent assessment of responsibility, contribution and levels of expertise on an international business basis across all businesses and functions. In addition, the remuneration policy of top executives is managed by Corporate Human Resources to facilitate consistency of various remuneration components and ease international and cross-business mobility;

2020 1.62%

2019 5.01%

2018 4.50%

Evolution of remuneration

As part of this total remuneration policy, Technicolor regularly expands its benefits policy with the double objective of fairness and equity between employees of the different countries and divisions and of attractiveness. In 2020, the following extensions were implemented: Area of action Type of action Description of the extension Country Health Benefits modification Inclusion of 10% co-participation (will be considered for elective consultations, emergency room and simple exams). Brazil Health Benefits enhancement Pre-existing conditions are now covered following change of insurer for local foreign employees. China Health Benefits enhancement Free upgrade GP (General Practitioner) from HK$300 to HK$320/visit and SP (Specialist practitioner) from HK$600 to HK$620/visit. HK

Referral letter from a Doctor is now valid for six months from issuance date. Referral letter is waived for attending Specialists under Hospital Authority and Department of Health. Referral letter for Clinical or Medical Oncologist will be waived upon renewal. Increase the sum insured of Technicolor Mexicana from 2 to 2.5 millions MXN. Removal of waiting period endorsements for some conditions ( i.e. endometriosis, eye cataracts, kidney stones, hip surgery for disease…). Increase the amount for medical check-ups ($10 thousand for each limited to 30/year) for Technicolor HES.ù Increase of the Life provision for all entities in order to bring benefits up to market median (4 x annual salary). Increase of the disability provision for all entities (except the Moving Picture Company) in order to bring benefits up to market median (70% of Salary for 5 Years or 50% of Salary for until State Pension Age for The Mill). Disability insurer services include EAP (including 6 face-to-face counselling sessions) available to all employees.

Health

Benefits enhancement

Mexico

Life & Disability

Benefits enhancements

UK

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