technicolor - 2018 Registration document

5 DISCLOSURE ON EXTRA-FINANCIAL PERFORMANCE HUMAN CAPITAL

accordance with competitive pressures in the marketplace. This ensures that Technicolor continues to attract, motivate and retain high potentials and key contributors for which Technicolor competes in an international market place, while controlling cost structures; equitable approach: Technicolor believes that it remunerates its • employees on an equitable basis in each of its geographical locations in a way that aligns with both local market standards and proposed corporate programs. The remuneration policy is set according to the Group’s “broadbanding policy” which allows consistent assessment of responsibility, contribution and levels of expertise on an international business basis across all businesses and functions. In addition, the remuneration policy of top executives is managed by Corporate Human Resources to facilitate consistency of various remuneration components and ease international and cross-business mobility; business and skills focus: the remuneration of professionals, • engineers and managers is a sound, market-driven policy and ultimately administered to stimulate business performance. A substantial part of the total remuneration package is composed of variable elements which drive a performance culture and support the Company’s strategy. These variable elements are meant to stimulate, recognize and reward not only individual contribution, especially innovation and risk-taking, but also and in particular, solid and consistent Group and Division performances.

The remuneration policy is tailored to acknowledge and fairly recognize an employee’s contribution to the short and longer-term success of the Group. Technicolor continues to incorporate a classification structure based upon Towers Watson methodology, with grades and bands that ultimately emphasize and reinforce the strong link between contribution and remuneration. Technicolor is steadily reviewing its job definitions and levels and reflects the evolutions of the Group. Such classification allows the Group to ensure the internal equity of remuneration packages. Moreover, Technicolor participates to relevant salary surveys to assess the competitiveness of remuneration in the proper marketplaces. This provides Technicolor with sustainable, objective and equitable means of remunerating employees while closely controlling its wage bill. In 2018, this job architecture has been rebuilt for Production Services jobs, to cope with the evolution of this domain, of its work organization and of its skills. It will be rolled out in 2019. The remuneration policy is structured around flexible and competitive fixed and variable compensation elements driven by market best practices and the Group’s objectives for long-term value creation appropriate to circumstances and goals: competitiveness: appropriate market benchmarks of total • compensation against comparable companies allow Technicolor to offer competitive compensation packages to employees in

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TECHNICOLOR REGISTRATION DOCUMENT 2018