Lionsgate Studios Corp · NYSE:LION
Lionsgate Studios — SPAC Merger (January 2024)
30 slides from Lionsgate Studios's SPAC merger presentation, Jan 8, 2024
Slide 1: Lionsgate Studios Conference Call Presentation January 4, 2024
Lionsgate Studios Conference Call Presentation January 4, 2024
Slide 2: Disclaimer: Forward-looking statements and risk factors
Disclaimer Forward-looking statements and risk factors This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to with respect to a business combination involving LG Orion Holdings Inc. (“LG
Slide 3: Disclaimer: Industry and market data; additional information
Disclaimer Industry and market data In this Presentation, Lionsgate and LG Studio may rely on and refer to certain information and statistics obtained from third party sources which they believe to be reliable. Lionsgate and LG Studio have not independently verified the accuracy or completeness of a
Slide 4: 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 5: Lionsgate Studios: An Independent Premium IP and Content Company
Business Segments M&A 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 Films an
Slide 6: Business Model Benefits from a Changing Industry Ecosystem
Business Segments M&A Strategic Value Business Model Lionsgate Studios’ Business Model Benefits from a Changing Industry Ecosystem MAJOR STUDIOS Agile, Platform-Agnostic Studio Organized Legacy Studio Economics Impacted by Linear Across Motion Picture, Television and Networks and Investments in Vert
Slide 7: A Top Content Licensor to All Global Distribution Channels
Business Segments M&A 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 7
Slide 8: World-Class Franchises and Intellectual Property Foundation for Growing Library
Business Segments M&A 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-offs Upcom
Slide 9: Consistently Profitable Motion Picture Segment Diversified Across Platforms and Genres
Business Model M&A 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) (4) Avg.
Slide 10: Motion Picture Pipeline Drives Future Growth and Library Value
Business Model M&A 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 Potential
Slide 11: Deep Pipeline of Renewals and New Content in Television
Business Model M&A 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 and New
Slide 12: One of the World's Leading Talent Management and Production Companies
Business Model M&A 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-Production Trac
Slide 13: Lionsgate Studios Consistently Grows and Refreshes its Content Library
Business Model M&A 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 (3) Motion Picture and Television
Slide 14: Motion Picture Library Outperforms on Streaming Platforms
Business Model M&A 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% 34 11.3%
Slide 15: Complemented Organic Growth With a Constant Flow of Accretive M&A
Business Model Business Segments 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 Opens Lionsgate PFC Studio’s Yonkers Acquires PFC Acquires Redbus Film Library Acquires A
Slide 16: eOne Acquisition Demonstrates Continued Opportunity to Expand Content and IP Portfolio
Business Model Business Segments Strategic Value M&A eOne Acquisition Demonstrates a Continued Opportunity to Expand Lionsgate Studio’s Content and IP Portfolio TRANSACTION DETAILS STRATEGIC HIGHLIGHTS ➢ Lionsgate Completed the Acquisition of 6,500+ Titles Across Immediately and Expands Presence eOn
Slide 17: World Class Franchise IP, Deep Library, and Global Infrastructure Make Lionsgate Studios a Unique Asset
Business Model Business Segments M&A 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 Over Repor
Slide 18: Transaction Details
L. JONS SATE Transaction Details Sinan 4
Slide 19: Simplified Transaction Structure
Simplified Transaction Structure Lionsgate Studios Contribute: Contribute: Established in Spring 2024 ParentCo Screaming Eagle $317MM of cash “Studio Business” at ($350MM gross Enterprise Value of Acquisition Corp. proceeds; $175MM $4.6Bn (including already committed via allocation of $1.7Bn of PIPE
Slide 20: 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 21: Financial Outlook and Transaction Details
Financial Outlook and Transaction Details 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 Segment Profit $445 $500 FY22A FY23A FY24E Corp Overhead Expense $125 $130 Motion Picture Television Production (2) Segment Profit
Slide 22: Projected Net Debt Allocation
Projected Net Debt Allocation Net Debt Roll Forward $MM $2,448 $716 ($700) ($224) $1,955 $1,748 ($317) $1,732 $1,431 Net Debt / (1) 3.8x FY’24 AOIBDA Net Debt / (2) 3.3x FY’25 AOIBDA Gross Debt Cash Net Debt Change in Net Net Debt Allocation to Allocation to Cash to Lionsgate Studios (3) at 9/30/202
Slide 23: Appendix
LIONS Sh JATIE A ppendix San“ 4
Slide 24: Reconciliation of Non-GAAP Forward-Looking Measures: Adjusted OIBDA
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 25: Reconciliation of Non-GAAP Forward-Looking Measures: Overall
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 26: Reconciliation of Non-GAAP Forward-Looking Measures: Operating Income to Adjusted OIBDA
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 27: Reconciliation: eOne Run-Rate Adjusted OIBDA
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 28: Reconciliation of Net Corporate Debt
Financial Information; Non-GAAP Financial Measures Reconciliation of Net Corporate Debt The Company presents net corporate debt as a non-GAAP measure which reflects the gross corporate debt balances net of cash: Studio Business Consolidated (2) Studio Business Lionsgate Before Debt Paydown As of As
Slide 29: 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 30: 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