Xilam Animation Sa · EURONEXT:ALXIL
Xilam Animation Sa — FY2019 Earnings Presentation
20 slides from Xilam Animation Sa's earnings presentation, March 2020
Slide 1: 2019 Financial Results
2019 FINANCIAL RESULTS MARCH 2020 1
Slide 2: Disclaimer
DISCLAIMER This statement may contain estimated financial data, information on future projects and transactions and future business results/ performance. Such forward-looking data are provided for estimation purposes only. They are subject to market risks and uncertainties and may vary significantly
Slide 3: Our Mission
OUR MISSION Offer the best animation content to the world. Attract and retain the most creative talent. Be a long-term valuable partner to our distribution platforms. Set an example as an inclusive business. Bring sustainable and profitable growth to our investors. 2019 FINANCIAL RESULTS 3
Slide 4: Strong organic growth over 20+ years
STRONG ORGANIC GROWTH OVER 20+ YEARS 1999 2020 LEADING ANIMATION GROUP GLOBAL OPERATOR DIGITAL PLAYER INNOVATOR Among the Top10 animation FOUNDATIONS STRUCTURING ACCELERATION SCALING studios(1) Creating Building Building a global Consolidating Emerging AVOD sales SVOD sales Global 5 production studi
Slide 5: A powerful business model
A POWERFUL BUSINESS MODEL Building a long term asset Ongoing production of premium original content Building a high-quality proprietary roster of brands New Productions Catalogue A business model with long cycles Significant growth Leveraging volume: 5-year production cycle: lever continuous develop
Slide 6: Globalization of our revenue streams
GLOBALIZATION OF OUR REVENUE STREAMS TRADITIONAL LINEAR BROADCASTERS SVOD / AVOD STREAMING PLATFORMS GLOBAL LOCAL Adapting Xilam’s business model to seize significant new market potential 2019 FINANCIAL RESULTS 6
Slide 7: Financial Results 2019: Sharp increase in profitability
FINANCIAL RESULTS 2019 SHARP INCREASE IN PROFITABILITY 7
Slide 8: A track record of strong and profitable growth
A TRACK RECORD OF STRONG AND PROFITABLE GROWTH Total operating revenue +28% CAGR Total turnover and 33.5 subsidies(1) 30.3 Other recurring revenue 26.6 (including audiovisual tax credits(2)) 17.1 12.4 28.0 30.1 24.4 15.9 11.3 1.1 1.3 2.2 2.4 3.4 (3) 2015 2016 2017 2018 2019 Current Operating Income
Slide 9: Results demonstrating the model's effectiveness
RESULTS DEMONSTRATING THE MODEL’S EFFECTIVENESS 2019 (1) 2018 (3) (€k) Change (%) IFRS 16 Turnover and subsidies from new productions 23,309 18,228 Turnover from catalogue 6,752 9,723 Total Turnover and Subsidies 30,061 27,951 +7.5% Other recurring operating revenue (o/w audiov. tax credits) 3,410 2
Slide 10: Financial position strengthened
FINANCIAL POSITION STRENGTHENED ASSETS (€k) 31.12.19 (1) 31.12.18 (2) LIABILITIES (€k) 31.12.19 (1) 31.12.18 (2) IFRS 16 IFRS 16 Goodwill 664 664 Share capital 491 491 Intangible assets 63,400 60,422 Retained earnings, net inc., treasury shares 54,805 47,728 Total equity 55,296 48,219 Property, plan
Slide 11: Analysis of net debt
ANALYSIS OF NET DEBT (€k) 31.12.19 (1) 31.12.18 Cash and cash equivalents, net 19,943 2,231 Non Self-liquidating financial liabilities (15,302) (4,055) Self-liquidating financial liabilities (8,187) (5,995) Net debt(2) (3,546) (7,819) (1) Unaudited data. 2019 FINANCIAL RESULTS (2) Net Financial Debt
Slide 12: An independent family-owned group
AN INDEPENDENT FAMILY-OWNED GROUP Voting rights MDP Audiovisuel 38.4% Xilam Group 14.9% Treasury shares 0.9% 1 Other 3.3% MDP Audiovisuel; 26,3% Free float 42.5% Free float; 57,9% Xilam Group; 10,1% Majority of voting rights held Treasury shares; 1,3% by the founder Other2 (53.3%) 4,4% (1) Xilam Gro
Slide 13: Scale 2023: Addressing the full potential of the market
Il faudra changer ce visuel Nous devons montrer uniquement des images nouvelles SCALE 2023 ADDRESSING THE FULL POTENTIAL OF THE MARKET DISRUPTION 13
Slide 14: Global trends driving the animation market
GLOBAL TRENDS DRIVING THE ANIMATION MARKET TRENDS CONSEQUENCES The video-on-demand market is Massive investments in animation incremental Rising demand for premium content The video-on-demand business is and deep catalogue accelerating globalization Concentration on premium Content distribution is a
Slide 15: Twofold growth driver: volume and value
TWOFOLD GROWTH DRIVER VOLUME VALUE Increase in demand for Xilam: a unique expertise premium content Sales globalization (market depth) Market consolidation Streaming war (competition) Adults offer vast potential Suppliers can barely keep pace with growing market demand 2019 FINANCIAL RESULTS 15
Slide 16: Producers will significantly benefit from new AVMS directive
PRODUCERS WILL SIGNIFICANTLY BENEFIT FROM NEW AVMS DIRECTIVE New Productions Catalogue BOOST BOOST By Jan 2021, all All platforms will be platforms will invest min. required to have 25% in French AVMS directive 30% of their production, of which application catalogue of (SMA - Service des Médias min.
Slide 17: Growth strategy
GROWTH STRATEGY STRATEGY PILLARS LEVERS 1 GROW CORE-BUSINESS ON KIDS & FAMILY CONTENT RANGE 1 TALENT PRODUCTION 2 EXPAND ON ADULT-FOCUSED CONTENT RANGE 2 CAPACITY 3 CAPITALIZE ON STRATEGIC HIGH-RETURN NON-IP CONTENT 3 MARKETING 4 ACCELERATE GROWTH OF B2C REVENUE STREAMS 4 M&A 2019 FINANCIAL RESULTS
Slide 18: 10 series in production, a record level
10 SERIES IN PRODUCTION, A RECORD LEVEL Moka Lupin’s tales Oggy Next Generation Trico Chip ‘n’ Dale 26 half-hours 26 half-hours 26 half-hours 26 half-hours 13 half-hours Oggy Oggy Tangranimo Pfffirates De Gaulle at the beach Athleticus 3 52 half-hours 26 half-hours 26 half-hours 3 half-hours 3 half-
Slide 19: New cumulated annual revenue guidance as of 2020/21 & 2022/23
NEW CUMULATED ANNUAL REVENUE GUIDANCE AS OF 2020/21 & 2022/23 +41% +23% From 2012 to 2023 : 12 years of robust growth +45% 2012-2015: €51m 110 2016-2019: €108m 78 64 2020-2023: €188m 44 €m 2016-2017 2018-2019 2020-2021 2020-2021 2022-2023 2021-2022 Leveraging strong profitability on an organic basis
Slide 20: Scaling for next era of profitable growth
SCALING FOR NEXT ERA OF PROFITABLE GROWTH 2016-2019 2020-2023 ✓Promises delivered Strong visibility 2019 FINANCIAL RESULTS 20