technicolor - 2018 Registration document

5 DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

HUMAN CAPITAL 5.2 Management and development of talent 5.2.1 GRI [103-1 Employment] [103-2 Employment] [103-3 Employment] [103-1 Training and Education] [103-2 Training and Education] [103-3 Training and Education]

leverage the Company’s HR Global Centers of Expertise and Regional Competence Centers to deliver high quality and cost-efficient services. The HR Global Centers of Expertise ensure consistency and delivery of key Group HR projects and provide specialized advice and expertise across the whole organization in the following areas: Compensation & Benefits focusing on rewards, incentive programs, • international mobility programs, pension schemes, medical care and other benefits; Talent and Development focusing on people development, • organizational development practices, career and performance management; HR Information Systems, HR Processes and KPIs focusing on • implementing coherent and sustainable tools supported with adequate processes; Resources Management focusing on Technicolor resource plan • definition and tracking; Corporate Social Responsibility (CSR) focusing on all areas pertaining • to Sustainable Responsibility: Human rights, Health and Safety, Environmental care, Ethics, and Social Responsibility; Labor Relations, focusing on keeping a consistent set of relationships • and interactions with all European union’s representatives. Under a unique HR leader, the Regional HR Competence Centers, built on a shared service model, ensure a consistent HR approach across sites and functions within each geographical region, and guarantee that Technicolor remains compliant with local employment laws and practices. The Group has two main Regional HR Competence Centers: Europe, India, Asia-Pacific: including India, China, Malaysia, Hong • Kong, Japan, Singapore, Taiwan, Korea, Australia, France, Belgium, Germany, the United Kingdom, the Netherlands, Sweden, Norway, Italy, Spain and Poland; Americas: including Brazil, Chile, Mexico, Canada and the USA. • HR Leaders, reporting to the Regional Competence Centers, are appointed in each of the sites to better support business activities which have common processes and regulations at the site level by delivering all necessary HR transactional activities. HR Site Leaders also contribute to the implementation of Corporate HR programs and facilitate coherent local communications. HR Sites Leaders report to their respective Regional HR Competence Centers. The Head of HR&CSR, a Member of Technicolor’s Executive Committee, defines HR&CSR strategic priorities in line with Technicolor’s strategic plan, implements and adapts the HR&CSR model, identifies organizational needs and related resources, and pilots HR&CSR initiatives across all of the Group’s activities.

A GLOBAL ORGANIZATION 5.2.1.1 Except for administration and support functions, most profiles of Technicolor’s employees are business division specific: Production Services: creative digital talent combining media and • technology skills with artistic skills for visual effects, animation and post-production: artists, supervisors, producers. This activity, as in any creative industry, is project driven, with an important quantity of artists hired using a fixed-term contract tied to the project, and is subject to significant turnover and recruitment rates: artists move easily worldwide from one company to another, to join a more technically challenging project in order to improve their track record and experience, their employability and their remuneration, leading to the creation of some tensions on the labor market. Diversity of employees is a critical success factor for this creative industry. Therefore, volume recruitment is significant and permanent and is managed on a worldwide basis, making critical Technicolor’s attraction and retention policies. DVD Services: line operators, warehouse and material handling • workers, content security specialists, facilities and equipment maintenance technicians, health and safety specialists, supervisors and managers. Activity is seasonal and regularly requires large staffing variations using temporary recruitment (employees and agency workers), in addition to overtime, to offset peak production requirements. Recruitment is local. Connected Home: mainly engineer’s skills, with R&D hardware and • software engineers, quality engineers, technical customer support, sourcing and manufacturing engineers, sales engineers, and a limited percentage of production workers. Turnover is limited and recruitment is pan-European or continental, allowing a relative level of diversity complemented by the diversity of site locations and the internal movement of employees. Therefore, the management and the development of talent require a flexible organization to match with these different requirements. The operating model of Technicolor’s Human Resources & Corporate Social Responsibility (HR&CSR) organization has three dimensions: strong partnership with Business Divisions; • global Centers of Expertise (CoE); • regional Human Resources Competence Centers (HRCC), • reinforced with HR leaders at the main sites. The integration of business strategy within the HR processes has been reinforced through the HR Business Partner (HRBP) function. HR Business Partners work closely with each business leader to analyze and plan the evolution of Technicolor’s workforce skills and competencies, and to ensure they are in line with their development goals. They

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TECHNICOLOR REGISTRATION DOCUMENT 2018