TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 3 RISKS, LITIGATION AND CONTROLS Insurance

The TSO-AT act as internal security assessors and advisors. The TSO-Physical Security team establish standards, conduct assessments and manage the global incident management processes The Content Security team provides assistance and guidance across all Production Services sites for all security initiatives. The Security Operating Center (SOC) manage day to day security elements (tools, process and data). The GRC arm of the TSO manage policies, global awareness program, tool and vendor assessments and the design of new processes and/or policies, as needed. The Group Security program is governed through a dedicated Security Steering Committee including each Business Heads, Head of HR, IT and TSO representatives. The Security Steering Committee meet at least twice a year. In 2017, 0ver 200 site security audits were conducted across the global perimeter. These audits were performed by using a combination of internal TSO Assessment team and external audits conducted by customers, studios, MPAA and security organizations ( i.e. Secure Works) across various elements of security for physical and digital. All findings have been incorporated into the 3YP which are prioritized based upon risk. In addition, following the Schrems decision by

European Court of Justice, the TSO has acted as the central coordination point for the remediation of the internal legal framework to reinforce the Security clauses applicable to our providers related to EU data privacy, Employee Awareness & Safety : For all employees, security -conscious behavior is key. As such, within the GRC arm of the TSO a formal awareness program was developed to include: on-line training program (LRN) with courses selected by the security working teams annually with compliance tracking metrics, Stan Safe videos and communications sent globally on key relevant topics (such as phishing, password management, etc.). These programs are regularly reviewed as part of external audits conducted by customers. In 2017 a Company-wide email phishing awareness program was deployed using an industry-leading service. Regarding travel and employee safety, processes and policies are in place and reviewed regularly for updates. A supplemental procedure exists for travel to high risk countries. An employee safety program has been established that enables alerts and communication to employees who are traveling or are situated near or at a location where an incident has been reported. operating losses that may occur in case such risks should materialize. Thanks to this program, several key sites have obtained the “Highly Protected Risk” status (which is the best grade in the assessment implemented by the Group’s insurer) and the Group’s loss prevention level has globally improved. The Corporate Legal Department has established internal procedures and rules to manage contractual risk. It ensures, in conjunction with the Corporate Insurance team, that these rules are applied throughout the world. The Group intends to continue its policy of comprehensive coverage for all its exposure to major risks, expand its coverage when necessary, and reduce costs through self-insurance when it is deemed appropriate. To date, the Group does not have a captive insurance or reinsurance Company.

INSURANCE 3.4 ORGANIZATION AND POLICY

The Group has a “Corporate Insurance” Department. Through this department, Technicolor arranges global insurance programs covering the major risks related to its activities that are underwritten with well-known insurers via global brokers. These programs, established on behalf of its subsidiaries worldwide, are implemented through a “Master” insurance policy that strengthens the coverage offered by local policies, and provides “difference in conditions” and “difference in limits” over these policies. Total premiums paid to property and casualty insurance companies vary depending on the insurance contracts bought for specific large scale projects. However, this amount represents less than 1% of the Group’s total sales. In addition, in partnership with its insurers, Technicolor has developed a loss prevention program to reduce its exposure to its assets and

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REGISTRATION DOCUMENT 2017