technicolor - 2018 Registration document

3 RISKS, LITIGATION, AND CONTROLS INSURANCE

In 2018, over 176 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 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 and ensure GDPR compliance. 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. Additionally, in 2018 several email phishing awareness campaigns were launched using an industry-leading service. In 2018, a decision was made to deploy a new tool in H2 2019. Regarding travel and employee safety, updates to the process were made and administrative responsabilities were expanded to better respond to critical incidents. A supplemental procedure exists for travel to high risk countries. An employee safety program has been established with an industry leader that enables alerts and communication to employees who are traveling or are situated near or at a location where an incident such as earthquake, fire, social disturbance, etc. has been reported.

INSURANCE 3.4 ORGANIZATION AND POLICY

CORE INSURANCE PROGRAMS The Group’s insurance policies are issued on an “all risks” basis, with standard market exclusions. The deductible levels are determined and applied according to the assets and operational risks of the business units. The main insurance policies contracted by Technicolor are: property insurance: This program provides cover for risks of fire, water • damage, natural events, terrorism (depending on the legal restrictions in each relevant country or state) and business interruption resulting from these events. This cover is generally set on the basis of property value; Where this is impossible, cover is set at a level corresponding to the worst-case scenario subject to market constraints. Generally, when damage to insured assets could lead to a business interruption, insurance is taken out to cover the financial consequences, such as operating losses and/or additional costs. The amount of cover reflects the expected downtime at the damaged site based on the worst-case scenario and on the recovery plans in place. The Group carries exposures in high risk natural hazard areas and has purchased adequate specific insurance coverage in this regard. In addition, Technicolor has also covered the risk of damage to goods in transit.

The “Corporate Insurance” Department arranges global insurance programs covering the major risks related to Technicolor’s activities that are underwritten with well-known insurers via global brokers. These programs, established at group level, 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. This amount represents less than 0.1% 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 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.

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TECHNICOLOR REGISTRATION DOCUMENT 2018