technicolor - 2020 Universal Registration Document

RISKS, LITIGATION, AND CONTROLS RISK FACTORS

Ý GRI [103-1 Employment] [103-2 Employment] [103-1 Training and education] [103-2 Training and education] [103-1 Diversity and equal opportunity] [103-2 Diversity and equal opportunity] Risk identification Risk monitoring and management ATTRACT TALENT & INVEST IN CULTURE

The Group depends on the continued recruitment and involvement of key team members, with strong technical skills and industry knowledge, such as some film directors, VFX supervisors or colorists for Production Services, engineers for Connected Home, pen testers in IT/Security, etc. In addition, the technology experts are essential team members in order to improve the quality of the products we develop. Furthermore, the talent pool from which the business draws much of its staff is highly geographically mobile. Any material delays in the immigration process (i.e. Brexit) for new hires may also negatively impact the Group’s operations. The absence of a strong People & Talent (formerly known as Human Resources) strategy/value proposition, cultural initiatives for inclusion plus challenged financial results may lead the Group to be less attractive. Coupled with the current external pandemic challenges (which may result in required furlough and/or layoffs), the Group may experience a longer recruitment process and/or talent may be less motivated to join the Group. The new working environment will entail significant work from home scenarios. Lack of initiatives to strengthen the collaborative culture and creativity could result in a sense of isolation, mental health challenges, unethical behavior and/or inefficiencies.

To limit the impact that these risks might have, People & Talent has reengineered its mission, operations, and programs to better suit the current environment and business needs. These initiatives include recruitment programs, annual talent reviews, and the launch of a global Diversity, Equity, and Inclusion program aimed at demonstrating the Group's long-term commitment to celebrating our differences and representing the diversity of the communities and clients it serves. In addition to the Production Services Technicolor Academy, which serves as training camp for aspiring digital artists, in 2018 Production Services 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 capacity across sites. In 2020, the Technicolor Academy trained 188 artists across its primary hubs in Montreal (Canada) and Bangalore (India). In 2020, and under the restrictions generated by the pandemic, these sessions were migrated to live virtual delivery ensuring flexibility and scalability. New Virtual Academies are supporting artist development across studios globally to ensure a consistent show-ready skill set. The Focus team continues to build university partnerships to provide curriculum guidance to help ensure skill alignment with market needs, to provide mentoring to students, and to participate in recruitment initiatives all while promoting diversity. Regarding 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. As an element of differentiation to attract and retain employees, Technicolor strives continuously to improve its benefits policy. Surveys were launched to check employees’ morale and mindset for those employees who were working from home for long periods. Soft skills training was delivered to support the change of working relations. A worldwide Diversity, Equity and Inclusion initiative targeting all employee’s communities was also launched with local involvement.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020