Lionsgate Studios Corp · NYSE:LION
Lionsgate Studios — SPAC Merger (December 2023)
35 slides from Lionsgate Studios's SPAC merger presentation, Dec 22, 2023
Slide 1: Lionsgate Studios Investor Presentation
Exhibit 99.2 Lionsgate Studios Investor Presentation December 2023
Slide 2: Disclaimer
Disclaimer This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination involving LG Or
Slide 3: Disclaimer: Forward-looking statements and risk factors (cont'd)
Disclaimer Forward-looking statements and risk factors (cont’d) These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or pro
Slide 4: Lionsgate Studios and Screaming Eagle Presenters
Lionsgate Studios and Screaming Eagle Presenters JON MICHAEL BURNS JIMMY FELTHEIMER BARGE Vice Chairman, Lionsgate Chief Executive Officer, Chief Financial Officer, Lionsgate Lionsgate HARRY ELI SLOAN BAKER Chairman, Chief Executive Officer, Screaming Eagle Screaming Eagle 4
Slide 5: A Standalone Lionsgate Studios Unlocks Value as a Pure-Play Content Company
A Standalone Lionsgate Studios Unlocks Value as a Pure-Play Content Company Platform-Agnostic, Pure-Play Content Studio Benefits from a $2.9Bn 1 Changing Industry Ecosystem FY24E Revenue Double Digit Lower Risk Film and TV Model Generates Strong, Steady FY24E to FY25E 2 AOIBDA Growth AOIBDA Growth +
Slide 6: Lionsgate Studios: An Independent Premium IP and Content Company
Business Segments M&A Outlook Strategic Value Business Model Lionsgate Studios: An Independent Premium IP and Content Company with the Scale of a Major MOTION PICTURE TELEVISION LIBRARY Airing Across $10Bn+ 80+ 50+ 20K+ (4) (4) (1) (6) Television Series Networks Global Box Office Over Last 10 Years
Slide 7: Lionsgate Studios' Business Model Benefits from a Changing Industry Ecosystem
Business Segments M&A Outlook Strategic Value Business Model Lionsgate Studios’ Business Model Benefits from a Changing Industry Ecosystem Agile, Platform-Agnostic Studio Organized Legacy Studio Economics Impacted by Linear Across Motion Picture, Television and Networks and Investments in Vertically
Slide 8: A Top Content Licensor to All Global Distribution Channels
Business Segments M&A Outlook Strategic Value Business Model A Top Content Licensor to All Global Distribution Channels Theatrical Television Streaming International BUSINESS MODEL WITH ASYMMETRIC UPSIDE License at Competitive Maximize Measured-to-Nil Market Rates Rights Retention Deficits / Gap 8
Slide 9: World-Class Franchises and Intellectual Property are the Foundation for Deep and Growing Library
Business Segments M&A Outlook Strategic Value Business Model World-Class Franchises and Intellectual Property are the Foundation for Deep and Growing Library (1) Constantly Refreshing: Over 400 Films and TV Episodes Added to Library Each Year (2) 5 Films 5 Films 10 Films 5 Films $600MM 3 Hit Spin-of
Slide 10: Consistently Profitable Motion Picture Segment Diversified Across Platforms and Genres
Business Model M&A Outlook Strategic Value Business Segments Consistently Profitable Motion Picture Segment Diversified Across Platforms and Genres WIDE-RELEASE MULTI-PLATFORM 10+ 30-40 Titles per Year Titles per Year ~74% ~93% (1) (3) Of Titles are Profitable Of Titles are Profitable ~31% ~74% (2)
Slide 11: Motion Picture Pipeline Drives Future Growth and Library Value
Business Model M&A Outlook Strategic Value Business Segments Motion Picture Pipeline Drives Future Growth and Library Value 1-2 Existing Franchise IP Releases per Year 1 New Tentpole IP Approximately 60 Release per Year Film Projects in Development at 3-4 Original IP with Any Given Time Franchise Po
Slide 12: Deep Pipeline of Renewals and New Content in Television
Business Model M&A Outlook Strategic Value Business Segments Deep Pipeline of Renewals and New Content in Television (1) In Development Active Series Scripted TV Average Increasing 150+ ~40 Historical Renewal Rate SETH ROGEN Scripted Output COMEDY (3) of 70% Projects Series Scripted Originals Recent
Slide 13: One of the World's Leading Talent Management and Production Companies
Business Model M&A Outlook Strategic Value Business Segments One of the World’s Leading Talent Management and Production Companies Marquee Productions ➢ Manages A-List Client Roster of Directors, Writers, Showrunners, Actors and Comedians ➢ Prolific Production Business Including Extensive Co-Product
Slide 14: Lionsgate Studios Consistently Grows and Refreshes its Content Library
Business Model M&A Outlook Strategic Value Business Segments Lionsgate Studios Consistently Grows and Refreshes its Content Library CONTENT INVESTMENT AND ...COMPLEMENTED BY ...CREATES A UNIQUE AND FOCUS ON RIGHTS RETENTION... STRATEGIC ACQUISITIONS... GROWING LIBRARY ASSET (4) Motion Picture and Te
Slide 15: Motion Picture Library Outperforms on Streaming Platforms
Business Model M&A Outlook Strategic Value Business Segments Lionsgate Studios’ Motion Picture Library Outperforms on Streaming Platforms (1) Title Appearances in Streaming Top 15 from Jan-23 to Jun-23 STUDIO # LIBRARY TITLES IN MONTHLY TOP 15 % OF TOTAL 50 16.6% 43 14.2% 39 12.9% 37 12.3% 36 11.9%
Slide 16: Complemented Organic Growth With a Constant Flow of Accretive M&A
Business Model Business Segments Outlook Strategic Value M&A Lionsgate Studios Has Complemented Organic Growth With a Constant Flow of Accretive M&A 2000 2003 2005 2006 2007 2012 2015 2016 2017 2018 2020 2021 2022 2023 (1) Opens Lionsgate PFC Studio’s Yonkers Acquires PFC Acquires Redbus Film Librar
Slide 17: eOne Acquisition Demonstrates a Continued Opportunity to Expand Content and IP Portfolio
Business Model Business Segments Outlook Strategic Value M&A eOne Acquisition Demonstrates a Continued Opportunity to Expand Lionsgate Studio’s Content and IP Portfolio TRANSACTION DETAILS STRATEGIC HIGHLIGHTS ➢ Lionsgate Announced the Acquisition of 6,500+ Titles Across Immediately and Expands Pres
Slide 18: Strategic Value Outlook
Business Model Business Segments M&A Strategic Value Outlook Motion Picture and Television Business Units Well Positioned to Deliver Strong Consolidated AOIBDA Growth Segment Revenue (1) Excludes eOne $MM FINANCIAL OUTLOOK $3,084 $2,900 $2,716 $1,760 $1,531 FY2024E FY2025E $1,324 $1,185 Studio Segme
Slide 19: Market Multiples Reflect the Value of Premium IP
Business Model Business Segments M&A Outlook Strategic Value Market Multiples Reflect the Value of Premium IP Premium Content and IP: Precedent Transactions LTM EBITDA, x 42.6x 38.8x 35.0x 30.0x 27.5x 16.7x 16.3x 15.8x (1) 10.7x SEAC Lionsgate Studios Date APR-16 NOV-21 JAN-16 NOV-21 MAY-21 AUG-19 O
Slide 20: World Class Franchise IP, Deep Library, and Global Infrastructure Make Lionsgate Studios a Unique, Strategic Asset
Business Model Business Segments M&A Outlook Strategic Value World Class Franchise IP, Deep Library, and Global Infrastructure Make Lionsgate Studios a Unique, Strategic Asset Strategic Value Expansive Rights Library 20K+ Title Franchise (1) Library Value $10Bn Global $870MM LTM Talent Box Office Ov
Slide 21: Transaction Details
L. JONS SATE Transaction Details Sinan 4
Slide 22: Lionsgate Studios to Be a Standalone Public Company Post-Transaction
Lionsgate Studios to Be a Standalone Public Company Post-Transaction Key Transaction Terms Sources Uses (2) • Pre-Money Enterprise Value of $4.6Bn for Cash from SEAC Trust $175 Cash to Delever $317 Lionsgate Studios, pro forma for eOne Cash from PIPE $175 Est. SEAC Trx. Expenses & Warrant Tender $33
Slide 23: Summary of Lionsgate Studios Structure Post-Transaction
Summary of Lionsgate Studios Structure Post-Transaction Company Structure Summary of Intercompany Arrangements Eagle • Shared services agreement to provide certain SPAC PIPE Equity administrative, SEC reporting and other corporate S/holders Investors RemainCo Partners function services 5.7% 0.7% 6.3
Slide 24: Appendix
LIONS Sik JATIE A ppendix San“ 4
Slide 25: Valuation Benchmarking
Valuation Benchmarking (1) Enterprise Value / FY25E EBITDA (pre-SBC) Premium IP: Trading Comparables (1) FY25E Pre-SBC EBITDA , x 20.8x 20.6x 15.8x 14.7x 14.1x 13.5x 12.3x 10.8x 10.7x Lionsgate Studios Source: Company filings, Factset Note: Market data as of November 8, 2023 1. Calendar years adjust
Slide 26: Reconciliation of Non-GAAP Forward-Looking Measures
Financial Information; Non-GAAP Financial Measures Reconciliation of Non-GAAP Forward-Looking Measures for the Fiscal Years Ending March 31, 2024 and March 31, 2025 Adjusted OIBDA Adjusted OIBDA is defined as operating income (loss) before adjusted depreciation and amortization ( OIBDA ), adjusted f
Slide 27: Reconciliation of Non-GAAP Forward-Looking Measures
Financial Information; Non-GAAP Financial Measures Reconciliation of Non-GAAP Forward-Looking Measures for the Fiscal Years Ending March 31, 2024 and March 31, 2025 Overall These measures are non-GAAP financial measures as defined in Regulation G promulgated by the SEC and are in addition to, not a
Slide 28: Reconciliation of Non-GAAP Forward-Looking Measures
Financial Information; Non-GAAP Financial Measures Reconciliation of Non-GAAP Forward-Looking Measures for the Fiscal Years Ending March 31, 2024 and March 31, 2025 The following table reconciles the GAAP measure, operating income (loss) to the non-GAAP, forward looking projected measure, Adjusted O
Slide 29: Reconciliation of Non-GAAP Forward-Looking Measures
Financial Information; Non-GAAP Financial Measures Reconciliation of Non-GAAP Forward-Looking Measures for the Fiscal Years Ending March 31, 2024 and March 31, 2025 The following table reconciles the GAAP measure, operating income (loss) to the non-GAAP, forward looking projected measure, Adjusted O
Slide 30: Canadian Purchasers' Rights Of Action
Canadian Purchasers’ Rights Of Action Canadian purchasers’ right of action Canadian purchasers in certain provinces of Canada may have certain statutory rights of action for damages or rescission (or both) in the event that this Presentation contains a misrepresentation and is deemed to be an offeri
Slide 31: Canadian Purchasers' Rights Of Action: Manitoba investors
Canadian Purchasers’ Rights Of Action Manitoba investors If an offering memorandum or any amendment thereto, sent or delivered to a purchaser contains a misrepresentation, the purchaser who purchases the security is deemed to have relied on the misrepresentation if it was a misrepresentation at the
Slide 32: Canadian Purchasers' Rights Of Action: Prince Edward Island investors
Canadian Purchasers’ Rights Of Action Prince Edward Island investors If an offering memorandum, together with any amendment thereto, is delivered to a purchaser and the offering memorandum, or any amendment thereto, contains a misrepresentation, a purchaser has, without regard to whether the purchas
Slide 33: Summary Risk Factors: Lionsgate Studios and the Business Combination
Summary Risk Factors Risks Related to Lionsgate Studios Risks Related to the Business Combination • Lionsgate Studios faces substantial capital requirements and financial risks. • If, following the business combination, securities or industry analysts do not publish or cease publishing research or r
Slide 34: Summary Risk Factors: SEAC and the Combined Company's Securities
Summary Risk Factors Risks Related to SEAC Risks Related to the Combined Company’s Securities Following Consummation of the Business Combination • SEAC may not be able to obtain the required shareholder approval to consummate the business combination. • If, following the business combination, securi
Slide 35: Lionsgate
LIONSGATE