Slide 1: July 28th, 2022
July 28th, 2022 technicolor.com
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain statements that constitute "forward-looking statements”, including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate
Slide 3: Technicolor
technicolor
Slide 4: Key H1 Highlights
KEY H1 HIGHLIGHTS REVENUES (in € million) Adjusted EBITDA (in € million) FCF (before interest and tax, in € million) €1,601m +8.8% 0 @ constant rate €1,352m +30.7% 4 @ constant rate Margin up 139bp % (35) 897 @ constant rate €134m margin 8.4% 770 % +€180m margin €94m 6.9% 70 7.8% (215) 7.2% 296 56 1
Slide 5: 2022 Guidance Confirmed
2022 GUIDANCE CONFIRMED • Revenues from continuing operations are expected to grow • Adjusted EBITDA from continuing operations of €361m • Adjusted EBITA from continuing operations of €161m guidance • FCF(1) from continuing operations of €217m confirmed • Run-rate cost savings target of €325m by 202
Slide 6: Envisaged Transaction Timeline: Spin-off of TCS and Refinancing
SPIN OFF OF TCS AND REFINANCING: ENVISAGED TRANSACTION TIMELINE If spin-off approved: conversion €375m VANTIVA private Technicolor SA of Mandatory Convertible Notes debt secured OGM/EGM into Technicolor shares Launch of marketing for the Listing and distribution of TCS €600m TCS Term Loan shares Int
Slide 7: Completion of the Refinancing
COMPLETION OF THE REFINANCING NEW DEBT STRUCTURE IMPLEMENTATION OF Refinancing of our debt taking advantage of the end of the non-call in July TWO DISTINCT 2022, reduce cost of debt, and facilitate the execution of the spin off FINANCING PACKAGES ➔ €300m unsecured reserved Mandatory Convertible Note
Slide 8: Technicolor
technicolor
Slide 9: TCS Good First Half 2022
TCS GOOD FIRST HALF 2022 IN PRODUCTION ON 20+ THEATRICAL AND 35+ CONTRIBUTION TO APPROX. STREAMING / EPISODIC 1,900+ PROJECTS DURING H1 PROJECTS Mastercard’s ‘What’s Priceless to You?’ BRITISH VISUAL CANNES BEST ARROWS EFFECTS LIONS VISUAL VISUAL Samsung’s ‘The AWARDS SOCIETY BAFTA EFFECTS SOCIETY E
Slide 10: TCS Financial Performance: Strong Demand for Content
TCS FINANCIAL PERFORMANCE: STRONG DEMAND FOR CONTENT 2022 OUTLOOK Demand for TCS VFX and Animation services continues H1 2022 to grow significantly throughout 2022 REVENUES (in € million) ADJUSTED EBITDA (in € million) MPC and Mikros Animation: EBITDA MARGIN (in %) → Multiple new projects awarded
Slide 11: Connected Home in H1 2022: Significant Business Progress
CONNECTED HOME IN H1 2022: SIGNIFICANT BUSINESS PROGRESS LEVERAGING OPEN AND SIGNIFICANT BROADBAND MARKET DEMAND INNOVATIVE DESPITE CONTINUING SUPPLY TECHNOLOGIES FOR CONSTRAINTS NETWORK SERVICE PROVIDERS Increased share of broadband in Connected Home revenues Wi-Fi 6/6E: availability of Cobra 5G op
Slide 12: Connected Home: Financial Performance
CONNECTED HOME: FINANCIAL PERFORMANCE H1 2022: CONTINUING CHALLENGING ENVIRONMENT BUT EFFICIENTLY MANAGED 2022 OUTLOOK REVENUES (in € million) ADJUSTED EBITDA (in € million) EBITDA MARGIN (in %) Demand for Connected Home broadband boxes is expected to remain strong +5.8% @ constant rate Although
Slide 13: Vantiva Supply Chain Services (Former DVD Services)
VANTIVA SUPPLY CHAIN SERVICES (FORMER DVD SERVICES) H1 2022 COMMERCIAL SUCCESSES AND OPERATIONAL EFFICIENCIES NEW GROWTH BUSINESSES: DISC BUSINESS ACTIVE, MULTIFACETED DIVERSIFICATION DISC VOLUMES BREAKDOWN (in m of units) AND GROWTH STRATEGY → Volumes down 30% MICROFLUIDICS → New lab/capability in
Slide 14: Vantiva Supply Chain Services in H1 2022
VANTIVA SUPPLY CHAIN SERVICES IN H1 2022 H1 2022: SHOWING THE RESULTS OF OUR OPERATIONAL RESTRUCTURING 2022: OUTLOOK REVENUES (in € million) ADJUSTED EBITDA (in € million) +4.5% EBITDA MARGIN (in %) Solid new release @ current rate volumes to be more than offset by lower catalog -3.2% @ volumes, d
Slide 15: Technicolor
technicolor
Slide 16: Key Figures H1 2022 – Group
KEY FIGURES H1 2022 – GROUP vs. H1 2021 vs. H1 2021 Forex impact at constant rate H1 2022 H1 2021 (a) (b) (c=a+b) (in € million) Current rate LY rate LY rate Current rate LY rate Revenues 1,601 1,471 1,352 +249 +18.4% (129) +119 +8.8% Adjusted EBITDA 134 122 94 +40 +43.1% (12) +29 +30.7% in % of Rev
Slide 17: Group Profile: Revenue Evolution
GROUP PROFILE REVENUE EVOLUTION H1 2022 REVENUES BY SEGMENT REVENUE INCREASE +18.4% AT CURRENT EXCHANGE RATE +8.8% AT CONSTANT EXCHANGE RATE H1 2022 REVENUES +11.2% AT CONSTANT EXCHANGE RATE AND CONSTANT PERIMETER €1,601m -3 129 45 116 -9 - 29 H1 2022 Corporate & Other Vantiva Supply 0% Chain Servic
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA BRIDGE VS. H1 2021 EBITDA BY SEGMENT EBITDA GROWTH Adjusted EBITDA (in € million) +30.7% at constant rate +30.7% @ constant rate Margin up 139bp % @ constant rate €134m margin 8.4% % margin 4 1 12 €94m 8 6.9% 134 70 7.8% 16 122 7.2% 94 56 15 5.2% 3.6% 10 61 H1 2021 Technicolor Connec
Slide 19: From Adjusted EBITDA to EBIT in Summary
FROM ADJUSTED EBITDA TO EBIT IN SUMMARY vs. H1 2021 vs.H1 2021 H1 2022 H1 2021 at constant rate (a) Forex impact (c=a+b) (b) in € million Current rate LY rate LY rate Current rate LY rate Adjusted EBITDA 134 122 94 +40 (12) +29 D&A(1) & Reserves(2) w/o PPA amortization (86) (79) (84) (2) +6 +4 Adjus
Slide 20: From EBIT to Net Result Group
FROM EBIT TO NET RESULT GROUP vs. H1 2021 vs. H1 2021 H1 2022 H1 2021 at constant rate (a) Forex impact (c=a+b) (b) in € million Current rate LY rate LY rate Current rate LY rate EBIT Continuing 8 5 (11) +19 (3) +17 Net Interest Expense (71) (69) (61) (10) +2 (8) Other Financial 6 6 (2) +7 +1 +8 Net
Slide 21: Free Cash Flow from Continuing Operations
FREE CASH FLOW FROM CONTINUING OPERATIONS FREE CASH FLOW FROM CONTINUING OPERATIONS: H1 2022 VS. H1 2021 (88) (89) (4) (1) (1) (8) (12) (257) +143 +33 +29 (12) FCF H1 2021 EBITDA Net Net ∆ WC/OAL Rendering Financial Tax Pensions FCF H1 2022 Forex FCF H1 2022 as published ADJ Capex Restructuring and
Slide 22: Liquidity and Debt
LIQUIDITY AND DEBT Amount of credit Available credit Liquidity at June 30, 2022 (€m) Drawn amount Available amount line line* Cash on hand 168 at June 30, 2022 Committed credit facilities: Wells Fargo credit line ($125m) 120 48 0 48 €39m used at June 30, 2022 on CH-France’s Liquidity €216m €40m comm
Slide 23: Technicolor
technicolor
Slide 24: Technicolor Creative Studios H1 2022 Profitability
TECHNICOLOR CREATIVE STUDIOS H1 2022 PROFITABILITY vs. H1 2021 Vs. H1 2021 H1 2022 H1 2021 at constant rate (a) Forex impact (b) (c=a+b) Technicolor Creative Studios Current rate LY rate LY rate Current rate LY rate in € million Revenues 408 382 295 +113 +38.3% (26) +87 +29.6% Adjusted EBITDA 61 57
Slide 25: Connected Home H1 2022 Profitability
CONNECTED HOME H1 2022 PROFITABILITY vs. H1 2021 vs. H1 2021 H1 2022 H1 2021 at constant rate (a) Forex impact (b) (c=a+b) Connected Home Current rate LY rate LY rate Current rate LY rate in € million Revenues 897 815 770 +126 +16.4% (82) +45 +5.8% Adjusted EBITDA 70 64 56 +14 +25.1% (6) +8 +14.4% i
Slide 26: Vantiva Supply Chain Services H1 2022 Profitability
VANTIVA SUPPLY CHAIN SERVICES H1 2022 PROFITABILITY vs. H1 2021 vs. H1 2021 H1 2022 H1 2021 at constant rate (a) Forex impact (b) (c=a+b) Vantiva Supply Chain Services Current rate LY rate LY rate Current rate LY rate in € million Revenues 296 274 283 +13 +4.5% (22) (9) (3.2)% Adjusted EBITDA 15 14
Slide 27: Debt Structure as of June 30, 2022
DEBT STRUCTURE AS OF JUNE 30, 2022 In million currency Currency Nominal Amount IFRS Amount Type of rate Nominal rate (1) Repayment Type Final maturity Moodys / S&P rating New Money Notes EUR 371 378 Floating 12.00%(2) Bullet Jun. 30, 2024 Caa1/B New Money Term Loans USD 126 128 Floating 12.45%(3) Bu
Slide 28: C3 - Restricted Natixis
C3 - Restricted Natixis