Slide 1: Third Quarter 2013 Revenues
Third Quarter 2013 Revenues October 2013 Frederic Rose, CEO Stéphane Rougeot, CFO and SEVP Strategy
Slide 2: Agenda
Agenda 1. Key takeaways 2 2. An innovation-driven Company 3-4 3. Revenues by division 5-6 4. Segment review 7-14 5. Financial structure update 15-17 6. Outlook 18 1
Slide 3: Key highlights
Key highlights Solid operational Technology: Entertainment Well on track to performance: another robust Services and deliver 2013 EBITDA, revenue growth of Licensing Connected Home: FCF and Net Debt 1.2%1 YoY2 (3.9%1 performance while profitable growth objectives excl. Legacy3) strengthening IP in a
Slide 4: Innovation Vision
Innovation Vision Differentiate Technicolor products & services Inventing the future Enable the licensing of of digital media to create breakthrough technologies that solve latest industry challenges outstanding content and deliver unique digital experiences for the home, Enhance our portfolio of pa
Slide 5: Laboratories organization to fit B to B activities core focus and drive relevant innovation
Laboratories organization to fit B to B activities core focus and drive relevant innovation Content Imaging Media Content Platforms & User Data Personalization Science Computing Processing Security Acquisition and Crowd sourced & Security and Content Audio & Acoustics, Data mining & user Recommendat
Slide 6: Q3 2013 Revenues by Division – constant scope
Q3 2013 Revenues by Division – constant scope Δ% Δ% (in € million) At constant scope Q3 2012 Q3 2013 Current Constant Currency Currency Technology 128 123 (4.5)% (3.9)% Entertainment Services 449 398 (11.2)% (6.1)% excluding legacy activities 409 383 (6.3)% (1.0)% Connected Home 345 361 +4.4% +12.6%
Slide 7: 9M 2013 Revenues by Division – constant scope
9M 2013 Revenues by Division – constant scope Δ% Δ% (in € million) At constant scope 9M 2012 9M 2013 Current Constant Currency Currency Technology 364 349 (4.2)% (3.5)% Entertainment Services 1,206 1,130 (6.2)% (3.9)% excluding legacy activities 1,067 1,063 (0.3)% +2.2% Connected Home 918 990 +7.9%
Slide 8: Segment Review
Segment Review technicolor
Slide 9: Technology – Highlights
Technology – Highlights Technology Revenues, €m * Change at constant rates Solid Licensing revenues Another demonstration of the 128 (3.9)%* 123 Group’s monetization skills 107 +27.3%* Revenues of €123m, softer compared to a particularly strong Q3 in 2012 Good performance in Licensing programs
Slide 10: Technology – Q3 achievements
Technology – Q3 achievements Technology Licensing initiatives: 4K Image certification chosen by TCL Other M-GO new Solving the 4K content issue for viewing on Technology partnerships 4K/UHD televisions developments LG Smart TVs Roku Players 9
Slide 11: Entertainment Services – Highlights
Entertainment Services – Highlights Revenues, €m * Change at constant rates 454 (8.8)%* 449 (6.1)%* 398 Sustained growth in Digital Creative Services (2.7)%* (1.0)%* Confirmed resiliency of DVD Services 388 409 383 Entertainment Services revenues down 1% at Q3 11 Q3 12 Q3 13 constant currency, exc
Slide 12: Creative Services – Q3 achievements
Creative Services – Q3 achievements Film restoration services: Extending both range of products & New film restoration Heritage pole at Technicolor Creative Services in services and Boulogne-Billancourt (France) geographical presence New openings & increased network: Montreal Creative Hub: servici
Slide 13: Servicing Game customers: from creation to distribution
Servicing Game customers: from creation to distribution Technology: Technology consulting services since end 2000 Security: proprietary anti- counterfeiting technology Capacity Security Quality: quality standards for all Xbox One disc manufacturing 90 dedicated artists and animators Capaci
Slide 14: Connected Home – Highlights
Connected Home – Highlights Connected Home Revenues, €m Revenues by region in Q3 13 * Change at constant rates 345 361 Sixth straight quarter of double digit year-on-year growth +12.6%* APAC +41.7%* 12% LATAM EMEA 233 17% 35% North America and Europe driving NAM 36% growth Revenue growth over 50%
Slide 15: Technicolor's technological edge showcased at IBC/IFA
Technicolor’s technological edge showcased at IBC/IFA Introducing next generation technological developments Partner First HEVC Media Server to support HEVC 4K/Ultra HD video Partner SVELTE HEVC android-based mobile set top box, TV Everywhere services on mobile devices over 4G LTE networks Partner Q
Slide 16: Financial Structure Update
Financial Structure Update technicolor
Slide 17: Financial Structure as of end of September 2013
Financial Structure as of end of September 2013 Material reduction of Nominal senior gross debt at Cash position decrease gross senior debt in €1,083 million, down €100 at end-September 2013 the quarter million vs. end June 2013: vs. end-June 2013, due €67 million of debt to cash-out related to re
Slide 18: Recognition of refinancing related expenses
Recognition of refinancing related expenses (in € million) FY 2013 FY 2013 (in € million) P&L impact Cash impact Total P&L impact (158) Total cash impact (198) o/w Transaction costs (81) o/w Transaction costs1 (131) o/w IFRS reversal gain (77) o/w Debt reimbursement (67) For FY 2013, an expense of
Slide 19: Outlook
Outlook technicolor
Slide 20: FY 2013 Objectives confirmed
FY 2013 Objectives confirmed Growth in Adj. EBITDA Strong growth in Group Free Net debt (at nominal between 5% to 10% Cash Flow, above 30%, value) to adjusted compared to FY 2012 before expected one-off EBITDA ratio below Adj. EBITDA at payments for legacy litigation 1.6x at end December constant sc
Slide 21: Thank you
rs a technicolor == —_ 1 THANK Y @U