Slide 1: Third Quarter 2014 Revenues
Third Quarter 2014 Revenues 22 October 2014 Frederic Rose, CEO Stéphane Rougeot, CFO
Slide 2: Agenda
Agenda 1. Q3 2014 Revenue Highlights 3-6 2. Q3 2014 Segment Review 7-14 3. Guidance 2014 15-16 1
Slide 3: Forward Looking Statements
Forward Looking Statements 2
Slide 4: Q3 2014 Revenue Highlights
Q3 2014 Revenue Highlights technicolor =
Slide 5: Key Highlights
Key Highlights Q3 2014 revenues affected by low DVD volumes during the quarter Year-to-date revenues* broadly stable at constant rates despite Q3 2014 performance Focus on operating execution across the businesses Solid Free Cash Flow generation in Q3 2014, marked improvement vs. Q3 2013 *Revenues e
Slide 6: Q3 2014 Revenues by Division
Q3 2014 Revenues by Division Δ% Δ% (in € million) Q3 2013 Q3 2014 Change Current Constant Currency Currency Technology 123 116 (7) (5.5)% (11.7)% Entertainment Services 383 355 (28) (7.4)% (8.4)% Connected Home 361 369 +8 +2.2% +1.2% Group revenues (excl. 866 839 (27) (3.1)% (4.9)% legacy activities
Slide 7: Year-to-Date Revenues by Division
Year-to-Date Revenues by Division Δ% Δ% (in € million) 9M 2013 9M 2014 Change Current Constant Currency Currency Technology 349 331 (18) (5.0)% (7.1)% Entertainment Services 1,063 979 (84) (8.0)% (5.9)% Connected Home 990 1,024 +34 +3.4% +7.3% Group revenues (excl. 2,404 2,334 (70) (2.9)% (0.7)% leg
Slide 8: Q3 2014 Segment Review
Q3 2014 Segment Review technicolor =
Slide 9: Technology – Highlights
Technology – Highlights Technology Revenues, €m Key Business Highlights Change at current rates Revenue down 5.5% vs. Q3 2013 MPEG LA revenues marked an improvement (4.5)% compared to H1 2014 trends, benefiting from (5.5)% an improvement in the PC market 128 Solid performance across the differ
Slide 10: Recent Developments in Innovation and Licensing
Recent Developments in Innovation and Licensing Innovation Licensing Active contribution in standardization bodies to Exclusive licensing agreement with Warner Bros. promote our technologies Entertainment Promoting technologies around HDR, WCG and Technicolor to represent the studio as its paten
Slide 11: Entertainment Services – Highlights
Entertainment Services – Highlights Revenues*, €m Change at current rates Key Business Highlights (6.3)% Entertainment Services down at 7.4% at (7.4)% current rates vs. Q3 2013, due to weak DVD 409 383 355 volumes in Q3 2014 DVD Services revenues were affected by the Q3 12 Q3 13 Q3 14 weakness i
Slide 12: DVD Volumes Affected by an Exceptionally Weak Slate of Customer New Releases
DVD Volumes Affected by an Exceptionally Weak Slate of Customer New Releases Our key customers recorded a 29% drop in their A reduced number of Box Office hits have been US summer B/O vs. -18% for the overall B/O replicated in DVD in Q3 2014 US summer Box Office, $bn Top replicated movies in 2013 YT
Slide 13: Production Services at Record Activity Level
Production Services at Record Activity Level Increased work scope for tent-pole movies A strong activity pipeline in Broadcast VFX + Post VFX + Post Sound VFX Post Post Post Post Post Closing Acquisition of Mr. X Increasing activity in Animation Reinforced market position in Strong level of acti
Slide 14: Connected Home – Highlights
Connected Home – Highlights Revenues, €m Change at current rates Key Business Highlights +2.2% +4.4% Revenue up 2.2% at current rates vs. Q3 2013 345 361 369 Solid and continued revenue growth in North America and EMEA Slight volume increase limiting the expected Q3 12 Q3 13 Q3 14 revenue decr
Slide 15: Connected Home – Key Operational and Innovation Achievements
Connected Home – Key Operational and Innovation Achievements A balanced geographical exposure Key differentiators for higher added value Market share gains in North America and EMEA, with new Best in class Wi-Fi, with largest number of carrier grade Wi-Fi gateways deployed in the industry custom
Slide 16: Q3 2014 Guidance
Q3 2014 Guidance technicolor =
Slide 17: 2014 Guidance
2014 Guidance Adj. EBITDA between €550m and €575m in 2014 Group Free Cash Flow of more than €200m in 2014, despite the impact of higher cash restructuring charges compared with 2013 Positive net income in 2014 Net debt to Adjusted EBITDA ratio well below 1.2x at end December 2014 16
Slide 18: Thank You
Sn ee technicolor ES 2 1 — THANK YOU