Slide 1: First Quarter 2014 Revenues
First Quarter 2014 Revenues April 25, 2014 Frederic Rose, CEO Stéphane Rougeot, CFO
Slide 2: Agenda
Agenda 1. Q1 2014 Revenue Highlights 3-4 2. Segment Review 5-12 3. Financial Structure Update 13-14 4. Guidance 2014 15-16 1
Slide 3: Forward Looking Statements
Forward Looking Statements 2
Slide 4: Q1 2014 Revenue Highlights
Q1 2014 Revenue Highlights technicolor =
Slide 5: Q1 2014 Revenue Highlights
Q1 2014 Revenue Highlights Solid Performance in Q1 2014: Revenues up 3.8% YoY at constant rates* Technology: Licensing revenues above €100 million in Q1 2014 Entertainment Services: Strong performance in Production Services, driven by VFX Connected Home: Eighth straight quarter of double-digit YoY r
Slide 6: Segment Review
Segment Review technicolor =
Slide 7: Q1 2014 Revenues by Division
Q1 2014 Revenues by Division Δ% Δ% (in € million) At constant scope Q1 2013 Q1 2014 Current Constant Currency Currency Technology 125 113 (10.0)% (7.5)% Entertainment Services 376 340 (9.6)% (5.6)% excluding legacy activities 352 335 (5.0)% (0.9)% Connected Home 274 291 +6.3% +15.2% Total from conti
Slide 8: Technology – Highlights
Technology – Highlights Technology Revenues, €m Key Business Highlights * Change at constant rates 125 Revenues of €113m, down at 7.5% at 121 constant rates 113 (1.5)%* (7.5)%* MPEG LA revenues affected by a one-off volume adjustment Double-digit growth in direct licensing programs, with a sus
Slide 9: Strong Innovation and New Solution Pipeline
Strong Innovation and New Solution Pipeline Development of an integrated test bed (video, audio, transport, physical layer transmission) enabling the true evaluation of a viable end-to-end ATSC 3.0 solution Active innovation around HDR to enable consumers to enjoy exceptional image realism in the ve
Slide 10: Entertainment Services – Highlights
Entertainment Services – Highlights Revenues, €m * Change at constant rates 395 (5.4)%* 376 (5.6)%* 340 Key Business Highlights 51 24 5 Entertainment Services revenues slightly 1.8%** (0.9)%** down at constant rates* 345 352 335 DVD Services Standard Definition, down 11% vs. Q1 12 Q1 13 Q1 14
Slide 11: Servicing Premium Content in Entertainment Services
Servicing Premium Content in Entertainment Services DVD Services Production Services Blu-rayTM: 21.4% of total volume vs. 16.8% in Q1 2013 Another quarter of strong activity for tent pole movies Major titles released in DVD in Q1 2014 Completed work and pipeline of VFX Services for premium TV series
Slide 12: Connected Home – Highlights
Connected Home – Highlights Connected Home Revenues, €m * Change at constant rates Key Business Highlights +16.3%* 274 +15.2%* 291 242 Revenue growth over 15% in Q1 2014 compared to Q1 2013 Double-digit revenue growth in North America and EMEA, driven by stronger Q1 12 Q1 13 Q1 14 shipments acro
Slide 13: Innovation in Connected Home
Innovation in Connected Home Strong pipeline of Connected Home inventions in communication/interoperability and local networks Wi-Fi 802.11ac Material shipments of 802.11ac gateways started in Q2 2014 300 millionth CPEs milestone With more than 60 million featuring carrier grade Wi-Fi Wi-Fi Doctor’s
Slide 14: Financial Structure Update
Financial Structure Update technicolor =
Slide 15: Financial Structure Update
Financial Structure Update Improved debt profile Simplified financial structure Nominal Gross Debt: €1,070m at Completion of refinancing of debt end March 2014, down €21m reinstated in February 2010 vs. end December 2013 Reimbursement of the remaining Cash significant growth vs. end debt by
Slide 16: 2014 Guidance
2014 Guidance technicolor =
Slide 17: 2014 Guidance confirmed
2014 Guidance confirmed Adjusted EBITDA between €550 million and €575 million Group Free Cash Flow between €180 million and €200 million, notwithstanding higher cash restructuring charges compared with 2013 Positive net income Net debt to Adjusted EBITDA ratio below 1.2x at end December 2014 16