technicolor - 2020 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]

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 Ý , stable and down Þ , 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 (Document d'enregistrement universel). The classification of the risks relating to the business, the financial, and market risks below are the result of a regular analysis as part of

the Issuer’s internal risk management process which is referred to on page 68 of the Universal Registration Document of the Issuer for the year ended December 31, 2020, after taking into account any mitigation measures 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 indicated by a star . The risks that Technicolor considers to be the most important are pointed out by two on account of their occurrence probability and/or the seriousness of their prejudicial characteristics. Top three risks faced by the Group: economic, political & social environment; • liquidity; • supplier and key component dependency. •

Global market & industry risks Health and Safety •

Evolving Legal Compliance & Ethics •

Economic, Political & Social Environment • Attract Talents & Invest in Culture •

Cybersecurity • Business Continuity • Physical Security •

Diversity and Human Rights •

Skills & Knowledge Management, Development & Retention •

Operational risks Production Services

Connected Home

DVD Services

Customer Project Management •

Supplier and Key Component Dependency • Client Concentration and Dependency •

Raw material and Other Key Input • Dependency Customer Concentration and Contract • Negotiation Supply Chain and Manufacturing • Labor Force Availability •

Tax Credits Evolution •

Financial risks Liquidity • Indebtedness •

Impairment of non-current assets, including goodwill •

Restructuring plan •

Interest rate and exchange rate fluctuations •

Litigation Antitrust Procedures •

Toxic Tort Lawsuits in Taiwan •

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020