technicolor - 2020 Universal Registration Document

3 RISKS, LITIGATION, AND CONTROLS INTERNAL CONTROL

PREPARATION OF FINANCIAL INFORMATION The Group’s financial information is prepared by the Finance Department. It is based on information reported through the Annual Reporting and consolidation processes and on operational and market information, which is specifically centralized for the preparation of the Company’s Universal Registration Document. The latter is prepared jointly by the Finance Department and the General Secretary of the Company. The quarterly, half-yearly and annual financial information is reviewed by the Audit Committee and the Board of Directors. Prior to being published, the above financial information is also reviewed by members of the management team and senior managers within the Corporate Finance and Legal Departments, each for their respective fields. Other internal control 3.2.5 procedures INFORMATION TECHNOLOGY SECURITY PROCEDURES GRI [103-2 Customer privacy] The Chief Information Officer (hereafter the “CIO”) leads the Technicolor’s IT organization and is supported by a leadership team composed of senior IT managers and business managers. The IT managers either directly support each of the Technicolor businesses or support shared service IT functions and applications used worldwide by the entire organization (Global Infrastructure & Risk Management, Information Security, Enterprise Applications and Corporate Functions). IT organizations collaborate closely with other internal security entities, such as the Technicolor Security Office (TSO), to align IT solutions, services and products with established security policies, procedures and best practices. These individuals are experienced IT professionals with a broad background and are well versed with the businesses and technologies they support. They ensure that the IT tools, services, and applications used by all Technicolor sites and businesses (e.g. e-mail, networks, phone systems, cloud platform evolution and operation, collaboration tools, video conferencing, web technologies, business intelligence tools, business and risk management tools and processes, the Technicolor Production Network) are operated and managed in an efficient, cost-effective, safe and secure manner. In addition, the IT organization provides Enterprise Architecture for new technologies, IT Vendor Management and Enterprise Project & Portfolio Management used to govern, regulate, and manage the IT organization (regulatory compliance, internal IT standards and best practices, project and project portfolio management processes) ensuring that IT is properly aligned with Technicolor’s strategic objectives. This IT organization leverages the IT 3-year Plan to ensure that proposed new technology and applications are planned and executed in a rational and holistic manner; the plan encompasses both technical and business process impacts and encourages use across the corporation.

on a quarterly basis: • reporting of operational performance through a business review • with management (review of major KPIs, risks and opportunities, market trend and competition, customer portfolio analysis, strategic programs and key initiatives) and closing of financial statements, the forecasting of the current and next three quarters is regularly • performed at minimum twice a year by each business including main income statement indicators such as revenue, Adjusted EBITA, Adjusted EBITDA, as well as Free Cash Flow items and reviewed at Group level. ACCOUNTING, MANAGEMENT REPORTING AND CLOSING PERIODWORK AT THE GROUP LEVEL The Group accounting and financial data are consolidated into one Group reporting system. At the end of each month, the Group’s entities report their financial data into this system. The Group reporting system uses a common chart of accounts, which is regularly updated. The main accounting and financial figures of the operational and functional departments consolidated at the Group level are analyzed by the Group’s financial controlling team and reviewed by the Group’s Executive Committee. The closing process for the half-year and annual consolidated financial statements occurs in two steps. The first step consists of a “hard close” completed for the May and October closings. This review is initiated by the circulation of instructions prepared by the Group’s Accounting Department. Procedures define the controls and actions which must be undertaken at the entity level (entries in accounting books, reconciliations, etc .) and the persons authorized to implement them. This step leads to a first review by the Statutory Auditors, completed initially at the subsidiary level within a majority of the Group’s legal entities, then at the Group level. This “hard close” aims at identifying the most complex issues, which may be reported to the Senior Management Team. The second step occurs in July and in January/February and involves the finalization of half-year and annual consolidated financial statements under International Financial Reporting Standards (“IFRS”). After each monthly closing, the Group’s financial results for month and the current quarter are presented to the Executive Committee. After each quarterly closing, the quarterly financial results (including half-year and annual results) are presented to the Audit Committee. These results are also presented to the Board of Directors. The Group’s accounting principles are defined in a set of documents entitled “Technicolor Accounting Principles and Methods”, which are available on the Company’s Intranet site and provided to all the Group’s Finance Departments. These documents outline the accounting treatment of such items as tangible and intangible assets, provisions, intercompany transactions, revenues and hedges. In addition, the Group publishes and distributes procedures that accountants and financial controllers must respect in terms of purchasing, management of inventories, sales, payments, cash flow, or taxes.

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TECHNICOLOR UNIVERSAL REGISTRATION DOCUMENT 2020