Slide 1: Technicolor 2016 results, 23 February 2017
2 3 F E B R U A R Y 2 0 1 7 technicolor.com 2 0 1 6
Slide 2: Successful transformation of Technicolor 2016
Successful transformation of Technicolor 2 0 1 6 SUCCESSFUL OPERATIONAL & CASH GENERATION & FINANCIAL REPOSITIONING DELEVERAGING STRONG BRANDING & INVESTMENT TO BUILD INNOVATIVE PRODUCTS IMMERSIVE ENVIRONMENTS 2
Slide 3: Successful operational & financial repositioning
2 0 1 6 SUCCESSFUL OPERATIONAL & FINANCIAL REPOSITIONING 3
Slide 4: Rebalanced operating profile
Rebalanced operating profile 2 0 1 6 BALANCED PROFIT POOL CHANGE IN SCALE Revenues** (€ billion) 2015 Adj. EBITDA by Division* 2016 Adj. EBITDA by Division* Entertainment Entertainment Services Services 29% Technology 37% 30% 4.9 3.6 Connected Connected Home Home 11% 33% 2015 2016 Technology 60% * E
Slide 5: Solid financial performance
Solid financial performance 2 0 1 6 Adj. EBITDA (€ million) Group FCF (€ million) Net Nominal Debt (€ million) 1200 570 260 255 1000 565 250 800 1.26x 560 245 240 600 555 565 565 235 256 985 550 230 248 400 645 712 225 545 550 230 200 220 540 215 0 2014 2015 2016 2014 2015 2016 2014 2015 2016 ADJUST
Slide 6: Key business achievements
Key business achievements 2 0 1 6 Operating profile Solid cash Completed Double digit organic rebalancing/ generation across integration & growth in Production repositioning businesses synergies on track Services Adj. EBITDA excl. MPEG LA Adj. EBITDA excl. MPEG LA (2016 vs. 2015 as published, € mill
Slide 7: Successful and completed integration
Successful and completed integration 2 0 1 6 Revenues Adj. EBITDA Revenues** ADJ. EBITDA** 2200 3000 250 8.3% 12.1% 2000 250 2500 11.6% 200 1800 200 2000 150 1600 150 1500 2,637 100 5.2% 218 1,966 238 1000 1400 100 190 1,451 1,639 500 50 1200 50 76 0 0 1000 0 2015 2016 2015 2016 2015 2016 2015 2016
Slide 8: Cash generation & deleveraging
2 0 1 6 CASH GENERATION & DELEVERAGING 8
Slide 9: Structured to generate strong Free Cash Flow
Structured to generate strong Free Cash Flow 2 0 1 6 Sustained Free Cash Flow 278 296 2015 2016 FCF Group CRT (152) +106 (81) (56) (44) (44) (46) 565 463 294 248 2016 Adj. Net capex Net Restruc. WC & OAL 2016 OCF Financial Tax Pensions and FCF Disc. 2016 Group EBITDA others Continuing FCF 9
Slide 10: Healthy Balance Sheet structure
Healthy Balance Sheet structure 2 0 1 6 (in € million) Issuer Nominal Debt IFRS Debt Term Loan B - $ / 2020 Te c h Fi n a n ce $290 $279 Term Loan B - € / 2020 Te c h Fi n a n ce €315 €297 Term Loan B - € / 2023 Te c h ni col or S A €450 €446 Total senior debt € 1 , 0 55 € 1 , 0 22 Other debt €28 €2
Slide 11: Strong branding & innovative products
2 0 1 6 STRONG BRANDING & INNOVATIVE PRODUCTS 11
Slide 12: Connected Home and Production Services set up for profitable growth
Connected Home and Production Services set up for profitable growth 2 0 1 6 CONNECTED HOME PRODUCTION SERVICES ► Increased penetration of ► Best-in-class supply chain ► Premium positioning in all ► Technology solutions the largest operators market segments leading to highest ► Material FCF generatio
Slide 13: DVD Services and Licensing focused on cash generation
DVD Services and Licensing focused on cash generation 2 0 1 6 DVD SERVICES LICENSING ► Undisputed market ► Restructuring cash-out and ► Licensing development ► IP strategy to protect leadership in supply chain maintenance capex below anchored around four key margins of other management for Home €20m
Slide 14: Technicolor's strategy contemplates near-term and longer-term initiatives
Technicolor’s strategy contemplates near-term and longer-term initiatives to address market transformation 2 0 1 6 CURRENT CONSUMER NEEDS NEAR-TERM MARKET FOCUS Ubiquitous, high-speed ACCESS PREMIUM CONTENT ACCESS High-quality, PREMIUM CONTENT IMMERSIVE INTERACTIONS Innovative, interactive, IMMERSIV
Slide 15: Connected Home fosters innovation and partnerships in broadband
Connected Home fosters innovation and partnerships in broadband to propel growth 2 0 1 6 PROVIDING SUPERIOR ACCESS, DELIVERY, AND UX SOLUTIONS FOR NEXT GENERATION DEVICES AND SERVICES ADDRESSED ► Ubiquitous, high speed and ► Better cross-platform user ► IMMERSIVE Open gateways for CONSUMER bandwidth
Slide 16: Production Services will leverage brands, creative talent, and technology
Production Services will leverage industry-leading brands, creative talent, and technology to drive expansion 2 0 1 6 LEADING CREATIVE AND TECHNOLOGY PARTNER FOR ALL CLIENTS AND INDUSTRIES THAT REQUIRE HIGH-END ARTISTRY AND DESIGN ADDRESSED ► High quality, compelling ► IMMERSIVE experiences ► INTERA
Slide 17: Investment to build immersive environments
2 0 1 6 INVESTMENT TO BUILD IMMERSIVE ENVIRONMENTS 17
Slide 18: Integrated immersive solutions and services across the group
Integrated immersive solutions and services from Production Services, Connected Home, and Research & Innovation 2 0 1 6 TECHNICOLOR EXPERIENCE CENTER UNIFIES GROUP -WIDE COLLABORATION EFFORTS ► Immersive Formats ► Proprietary Algorithm, ► Real-time rendering, TECHNICOLOR’S RESEARCH AND INNOVATION De
Slide 19: 2017 objectives and long term objectives
2 0 1 6 2017 OBJECTIVES AND LONG TERM OBJECTIVES 19
Slide 20: 2017 objectives and Drive 2020 update
2017 objectives and Drive 2020 update 2 0 1 6 2017 FREE CASH FLOW ADJ. EBITDA NET LEVERAGE RATIO In excess of €150 million In the range of Continuous before cash impacts of the €460 million to deleveraging CRT cartel case settlements €520 million 2020 ► Technicolor has now the ambitions to achieve a
Slide 21: Technicolor: Feel the wonder
its technicolor FEELTHE WONDER
Slide 22: FY 2016 – From Adj. EBITDA to net income
FY 2016 – From Adj. Ebitda to net income 2 0 1 6 FROM ADJ. EBITDA TO EBIT FROM EBIT TO NET INCOME (in € million) 2015* 2016 Change** (in € million) 2015* 2016 Change** Adj. EBITDA*** 565 565 0 EBIT*** 264 262 (2) D&A**** (190) (194) (4) Financial result (87) (156) (69) Adj. EBIT** before PPA amortiz
Slide 23: Net nominal debt evolution (non IFRS)
Net nominal debt evolution (non IFRS) 2 0 1 6 In €m Cash in Net Debt 01 Jan. 2016 on disposal acquisition repayment 31 Dec. 2016 Group FCF +55 (22) +248 (317) Other Dividend Forex +4 Cash (25) +43 position 385 371 Gross 1083 nominal 1370 debt +450 (700) +9 +21 (67) New term loan debt Forex Change in