Slide 1: First Half 2014 Results
First Half 2014 Results July 25, 2014 Frederic Rose, CEO Stéphane Rougeot, CFO
Slide 2: Agenda
Agenda 1. H1 2014 Segment Review 4-11 2. H1 2014 Financial Performance 12-17 3. 2014 Objectives 18-19 1
Slide 3: Forward Looking Statements
Forward Looking Statements 2
Slide 4: H1 2014 Key Highlights
H1 2014 Key Highlights Operating margin increase Strong cash generation In €m 207 213 +8.4%, up 1.4 point Adj. EBITDA margin: +14.2%, up 1.2 pt with a 1.7% revenue increase (at constant rate and scope* and Adj. EBIT margin: +8.4%, up 1.4 pt excl. legacy 129 24 H1 2013 H1 2014 Adj EBITDA FCF Finan
Slide 5: H1 2014 Segment Review
H1 2014 Segment Review technicolor —_
Slide 6: Technology – H1 2014
Technology – H1 2014 Revenues, €m Adj. EBITDA, €m Change at constant rates & Margin Key Highlights -3% -5% 75% 72% 69% Strong performance in direct licensing programs, driven by 236 227 216 several new contracts and renewals 178 163 149 signed in H1 2014 H1 12 H1 13 H1 14 H1 12 H1 13 H1 14 Significa
Slide 7: Reinforcing and Enforcing IP
Reinforcing and Enforcing IP Reinforcing IP organically and through selected IP acquisitions Expansion of patents related to standards portfolio, specifically in Blu-rayTM and HDMI standards Acquisition of more than 120 patents and applications relevant to LTE standard Enforcing IP Initiated t
Slide 8: Strong progress around Immersive Media Technologies
Strong progress around Immersive Media Technologies Promoting immersive media technologies* Ongoing discussions around HEVC pool Additional standardization proposals delivered to key standard bodies Algorithms running now on real-life content Producing and delivering immersive content HP Env
Slide 9: Entertainment Services – H1 2014
Entertainment Services – H1 2014 Revenues (excl. legacy), €m Adj. EBITDA, €m Change at constant rates & Margin Key Highlights 11% +4% -4% 9% 11% DVD Services Significant resiliency in H1 2014 680 84 658 67 72 624 Overall disc volumes affected by a challenging YoY comparison due to a much weaker
Slide 10: Entertainment Services
Entertainment Services Strengthening market position in VFX Continued resiliency in DVD Services H1 2014 overall volumes above Complete work and pipeline of VFX 2012 levels Continued growth in Blu-rayTM despite tough YoY comparison Solid growth in Games YoY volume change for SD and BD, million
Slide 11: Connected Home – H1 2014
Connected Home – H1 2014 Revenues, €m Adj. EBITDA, €m & Change at constant rates Margin Key Highlights 4.5% +13% +11% Solid top line growth 30 Revenue up 11% at constant 655 630 0.5% rate vs. H1 2013 (2)% 3 572 (12) Double-digit growth in North America and EMEA H1 12 H1 13 H1 14 H1 12 H1 13 H1 1
Slide 12: Market Share Gains and Leading Innovation
Market Share Gains and Leading Innovation Restoring market share gains Innovation and Value Added Outperforming the market (value based) +27% New software applications: Mytribe to be deployed in H2 2014 and +17% smart home apps in H1 2015 +13% +14% +11% Wi-Fi full holistic offering being develop
Slide 13: H1 2014 Financial Performance
H1 2014 Financial Performance technicolor —_
Slide 14: H1 2014 – Financial Performance Highlights
H1 2014 – Financial Performance Highlights Revenues* (€m) Adj. EBITDA** (€m) Adj. EBIT** (€m) & Margin (%) & Margin (%) Forex impact 14% Forex impact Forex impact 13% 8% €(69)m €(7m) €(3m) Change at Change at Change at 1,537 1,495 constant rate constant rate constant rate +1.7% 213 +6.3% +17.3% 207
Slide 15: H1 2014 – Adjusted EBITDA
H1 2014 – Adjusted EBITDA In €m 6 (7) 7 213 207 H1 2013 Adjusted Business Corporate Forex Impact H1 2014 Adjusted EBITDA Contribution & Other EBITDA 14
Slide 16: Net profit excl. costs related to debt repayments increased by €40m vs. H1 2013
Net profit excl. costs related to debt repayments increased by €40m vs. H1 2013 (in € million) 1H 2013 1H 2014 Change EBIT 87 122 +35 Financial Costs (72) (74) (2) Share of profit/(loss) from associates (5) 1 +6 Income Tax (20) (22) (2) Profit/Loss from (10) 27 +37 Continuing Operations Discontinued
Slide 17: €129m of free cash flow generation in H1 2014, up €105m
€129m of free cash flow generation in H1 2014, up €105m vs. H1 2013 In €m (47) (41) 72 (26) (42) 213 141 129 H1 2014 Net Capital Net OCF* Change in Financial Tax, Pensions Group FCF Adjusted Expenditures Restructuring Working and Others EBITDA Capital & OAL Operating cash flow improvement and cash
Slide 18: Gross Nominal Debt
Gross Nominal Debt Group FCF Debt Fees In €m 01 Jan. 2014 Senior Debt 30 Jun. 2014 Repayments Other (25) Forex +129 Cash +4 307 (168) +9 position 256 Gross 927 1,091 Nominal Financial Debt Financial & Repayment Interest Forex Other Debts Related to Payables Repricing Senior Debt Repayments (3) (10)
Slide 19: 2014 Objectives
2014 Objectives technicolor —_
Slide 20: 2014 Guidance
2014 Guidance Adj. EBITDA between Free Cash Flow > €200m in Net debt/Adj. EBITDA €550m-€575m in 2014 2014 below 1.2x at end 2014 Technicolor confirms its Technicolor expects its Free Technicolor confirms its objective to reach an Cash Flow objective to objective to reach a Adj. EBITDA between exceed
Slide 21: Appendix
Appendix technicolor —_
Slide 22: Q2 2014 – Highlights
Q2 2014 – Highlights Q2 2014 Revenues, €m 814 28 762 5 786 (0.3)%** 757 Q2 13 Legacy Q2 14 Technology Revenues, €m Entertainment Services Revenues, €m Connected Home Revenues, €m 356 364 103 356 101 (1.2)%* 28 (8.3)%** +7.4%* 294 5 328 289 Q2 13 Q2 14 Q2 13 Legacy Q2 14 Q2 13 Q2 14 *Change at consta
Slide 23: Semester Revenues by Division at Constant Scope and Rate
Semester Revenues by Division at Constant Scope and Rate Δ% (in € million) H1 2013 H1 2014 Change Constant Currency Technology 227 216 (11) (4.7)% Entertainment Services excl. legacy 680 624 (56) (4.4)% legacy activities 52 10 (42) (79.9)% Connected Home 630 655 +25 +10.8% Total from continuing oper
Slide 24: Semester Adjusted EBITDA by Division at Constant Scope and Rate
Semester Adjusted EBITDA by Division at Constant Scope and Rate Δ% (in € million) H1 2013 H1 2014 Change Constant Currency Technology 163 149 (14) (8.6)% Entertainment Services 84 72 (12) (11.5)% Connected Home 3 30 +27 ns Total from continuing operations 207 213 +6 +6.3% 23
Slide 25: Reconciliation of Adjusted Indicators
Reconciliation of Adjusted Indicators (in € million) 1H 2013 1H 2014 Change Adjusted EBITDA 207 213 +6 from continuing operations As a % of revenues 13.0% 14.2% +1.2pt Depreciation and amortization (D&A)* 96 86 (10) Adjusted EBIT from continuing operations 111 127 +16 As a % of revenues 7.0% 8.4% +1
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position June 30, December 31, June 30, December 31, (in € million) (in € million) 2014 2013 2014 2013 Total non-current assets 1,604 1,624 Total equity 143 119 o/w Goodwill 458 450 Total non-current liabilities 1,484 1,606 o/w Other intangible assets 384 375 o/w
Slide 27: Thank You
Sn ee technicolor ES 2 1 — THANK YOU