Slide 1: H1 2015 Results
H1 2015 RESULTS y 23 July 2015 . technicolor FEEL THE WONDER TW
Slide 2: Forward Looking Statements
Forward Looking Statements S T F 2
Slide 3: H1 2015 Highlights
H1 2015 Highlights Revenues* up 8.4% YoY at current rate Technology: Strong Licensing performance Sustained revenue growth and increased profitability in Production Services Improvement in overall product mix Improved financial flexibility and reduced borrowing costs * Excluding legacy activities 3
Slide 4: H1 2015 Business Highlights
H1 2015 BUSINESS HIGHLIGHTS
Slide 5: Entertainment Services – Record activity level in Production Services
Entertainment Services – Record activity level in Production Services Mozart in the Jungle, Red Oaks (pilot) and other original series for Amazon Spy, Longest Ride and Poltergeist for FOX Le petit Prince Mune 5
Slide 6: Connected Home – Innovative and creative leader
Connected Home – Innovative and creative leader Technicolor has become the Technicolor, with its ultra- first company worldwide to speed cable modem, has ship over 200 million set-top actively taken part in first boxes to customers DOCSIS 3.1 interoperability event by Excentis Technicolor engineerin
Slide 7: Technology – Several business milestones
Technology – Several business milestones Recent operational milestones: Appointment of Barceló, New licensing agreements with: Immediate availability of Harrison & Walker, LLP as the the new HDR single-layer independent patent evaluator Asus solution for testing by key Appointment of Peter
Slide 8: H1 2015 Result Highlights
H1 2015 RESULT HIGHLIGHTS
Slide 9: Q2 2015 – Financial Highlights
Q2 2015 – Financial Highlights Q2 2015 Revenues* (€m) All changes at constant rate (0.3)% (0.1)% 816 786 757 Q2 13 Q2 14 Q2 15 Technology Revenues (€m) Entertainment Services Revenues* (€m) Connected Home Revenues (€m) 145 (1.2)% +50.9% (7.2)% +1.0% +7.4% (15.4)% 318 329 356 364 101 103 284 335 Q2 1
Slide 10: H1 2015 – Profitability improvement with broadly stable revenues
H1 2015 – Profitability improvement with broadly stable revenues Revenues* (€m) Adj. EBITDA (€m) & Margin (%) 15% H1 2015 vs. H1 2014 H1 2015 vs. H1 2014 Change at constant rate Change at constant rate (1.3)% 14% +16.8% 13% 1,620 250 1,537 207 213 1,495 H1 2013 H1 2014 H1 2015 H1 2013 H1 2014 H1 201
Slide 11: Strong cash generation and continued deleveraging
Strong cash generation and continued deleveraging Group FCF (€m) 129 €(12)m €105m 117 24 H1 2013 H1 2014 H1 2015 Nominal Net Debt (€m) Senior Debt Repricing Repricing of $763 million and €301 million of senior secured term loans maturing in 2020 New pricing of Libor/Euribor + 400bps, subject to
Slide 12: H1 2015 Financial Performance
H1 2015 FINANCIAL PERFORMANCE
Slide 13: Technology – H1 2015
Technology – H1 2015 Revenues (€m) Adj. EBITDA (€m) Change at constant rate & Margin 74% Key Highlights X% 72% Revenues up 24% YoY at current rate (4.7)% +23.2% 69% vs. H1 2014 268 227 197 216 163 Licensing revenues of €258 million, 149 up 23% YoY at current rate Continued investment in new H1
Slide 14: Entertainment Services – H1 2015
Entertainment Services – H1 2015 Revenues* (€m) Adj. EBITDA (€m) Change at constant rate & Margin 11% 12% 9% Production Services (3.5)% (1.7)% 687 Revenues increased strongly, driven 660 81 612 71 64 by continued double-digit growth across VFX and Animation activities Agreement with Deluxe to co
Slide 15: Connected Home – H1 2015
Connected Home – H1 2015 Revenues (€m) Adj. EBITDA (€m) Change at constant rate & Margin +10.8% (8.9)% Stable revenues at current rate 4.5% 4.3% 655 652 Gross margin stood at 15.8%, up 630 by 1.5 points YoY 30 28 3 Lower level of activity in developed markets as compared to a strong H1 2013 H1
Slide 16: H1 2015 – Adjusted EBITDA
H1 2015 – Adjusted EBITDA In €m 51 0 (11) (3) 1 4 (6) 250 213 H1 2014 Connected Technology Legacy Entertainment Corporate Other Forex Impact H1 2015 Adj. EBITDA Home Services Adj. EBITDA Strong performances in Licensing and Production Services offset lower contributions for Connected Home and DVD
Slide 17: Strong increase in net income
Strong increase in net income Change at (in € million) H1 2014 H1 2015 current rate Adjusted EBIT 127 159 +32 Restructuring costs (11) (31) (20) Net impairment losses 0 (9) (9) Other income/(expense) 6 12 +6 EBIT 122 132 +10 Financial costs (74) (44) +30 Share of profit/(loss) from associates 1 1 0
Slide 18: Strong free cash flow generation
Strong free cash flow generation In €m (43) (28) 29 (41) (41) 250 (10) 179 117 H1 2015 Net Capex Net Restruc. H1 2015 WC & OAL Financial Tax, pensions FCF (disco.) H1 2015 Adj. EBITDA Op. CF and others Group FCF 18
Slide 19: Net debt evolution
Net debt evolution In €m 01 Jan. 2015 30 jun. 2015 Group FCF Net acquisitions Dividend Debt repayment Forex Other +117 (28) (17) (26) +4 +3 Cash 381 Position 328 Gross Nominal 973 1,009 Debt Debt repayments Forex Other (26) +55 +7 19
Slide 20: FY 2015 Guidance
FY 2015 GUIDANCE
Slide 21: 2015 Guidance confirmed – A first step towards Drive 2020
2015 Guidance confirmed – A first step towards Drive 2020 of at least €230 million of around 0.75x at end December 2015 21
Slide 22: Thank you
technicolor Thank you ——— oor EEL THE WONDER