Technicolor Creative Studios SA
Technicolor Creative Studios SA — Investor Day (June 2022)
110 slides from Technicolor Creative Studios SA's investor day presentation, Jun 14, 2022
Slide 1: Capital Markets Day Presentation
Capital Markets Day Presentation Beyond Imagination 14 June 2022
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation (the “document”) has been prepared by Technicolor SA (“TSA”) in connection with the Capital Markets Day on 14 June 2022, in the context of the contemplated spin-off of Technicolor Creative Studios (“TCS” and such spin-off, the “Transaction”), solely for information
Slide 3: Today's Speakers
Today’s Speakers Christian Roberton Laurent Carozzi Chief Executive Officer Chief Financial Officer Our Divisions Deep Dive on Production Workflow Tom Williams Josh Mandel Andrea Miloro Jeaneane Falkler Leah Beevers Nathan Wappet Bill Polson Adam Valdez President President President President Global
Slide 4: Introductory Video
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Slide 5: Today's Agenda
Today’s Agenda # Agenda Speaker 1 Introduction to TCS Christian Roberton, CEO 2 Our Divisions Divisional Presidents 2.1 MPC Tom Williams, President MPC 2.2 The Mill Josh Mandel, President The Mill 2.3 Mikros Animation Andrea Miloro, President Mikros Animation 2.4 Technicolor Games Jeaneane Falkler,
Slide 6: Introduction to TCS
Introduction to TCS Christian Roberton Chief Executive Officer SECTION 1
Slide 7: A World Leading Independent Provider of Creative Visual Arts Services
A WORLD LEADING INDEPENDENT PROVIDER OF CREATIVE VISUAL ARTS SERVICES INTRODUCTION TO TCS 7
Slide 8: A World Leading Independent Provider of Creative Visual Arts Services
A World Leading Independent Provider of Creative Visual Arts Services What Makes Us Special? Key Performance Indicators Award-winning teams of technologists and artists partnering with the creative community across Feature Film, Episodic, Animation, Brand Experience & Advertising, and Gaming to brin
Slide 9: Four Complementary Divisions Greater Than the Sum-of-the-Parts
Four Complementary Divisions Greater Than the Sum-of-the-Parts 1 Film and Episodic VFX 2 Advertising 3 CG Animation 4 Games DIGITAL PRODUCTION VFX SERVICES ACROSS CG ANIMATION EXTERNAL GAME SERVICES FOR ADVERTISING THEATRICAL AND SERVICES ACROSS DEVELOPMENT FOR Overview FROM TRADITIONAL TV STREAMING
Slide 10: Servicing Clients Across Portfolio of Brands
EXAMPLES Servicing Clients Across Portfolio of Brands ESPN: College Football The Lion King 2 Mickey’s Tale of Two Witches Playoff* Sonic the Hedgehog 2 Paramount+ ‘The Storm’* Rugrats (Paramount+) Anthem | Trailer FIFA 22 * Client was the advertising agency or the production company INTRODUCTION TO
Slide 11: Our Journey So Far
Our Journey So Far Evolution from Pioneering Color Processes to a Leading Independent Provider Of Creative Visual Arts Services 2020 • MPC Episodic launched to capture high-end 2019 Episodic market in the UK • The Mill • MPC Film wins Oscar 2017 opens in for 1917 2014 • MPC Film wins Berlin 2022 201
Slide 12: Ongoing Transformational Reorganization to Facilitate Collaboration
Ongoing Transformational Reorganization to Facilitate Collaboration, Integrate Technology and Unleash Top Talent Process Started Many Years Ago at MPC, but Last Year at Group Level and Set to Continue Over Coming Years Going From Siloed Portfolio of Brands Operating Independently… … To A Synergistic
Slide 13: Key Pillars To Our Story
Key Pillars To Our Story 1 Positioned for 2 Leadership 3 Long-Standing 4 Global Footprint Accelerated Position in Tech- and Deeply with Highly Structural Growth Enabled Content Cemented Skilled and in a Large and Creation with an Relationships with Flexible Talent Growing TAM Award-Winning Blue-chip
Slide 14: Positioned for Accelerated Structural Growth in A Large and Growing TAM
Positioned for Accelerated Structural Growth in A Large and 1 Growing TAM Global Total Addressable Market ($ Bn) Film and Episodic VFX Brand Experience & Advertising CG Animation Outsourced Game Services 12% 7% 6% 15% CAGR CAGR CAGR CAGR 39.3 5.7 7.3 30.0 2.9 2.3 4.6 3.3 2021 2025E 2021 2025E 2021 2
Slide 15: Leadership Position In Tech-enabled Content Creation With An Award-winning Portfolio
Leadership Position In Tech-enabled Content Creation With An 2 Award-winning Portfolio Multiple Major Awards Won in Film and Television Over the Last Two Decades… Selected Examples ACADEMY VES BAFTAS AWARDS AWARDS 2001 2001 2013 2013 2012 2012 2013 2013 2013 2013 2017 2020 2020 2021 2022 2022 CÉSAR
Slide 16: Leadership Position In Tech-enabled Content Creation With An Award-winning Portfolio
Leadership Position In Tech-enabled Content Creation With An 2 Award-winning Portfolio … and 100+ Major Industry Awards Won for Instantly Recognizable Advertising Campaigns Since 2012 CANNES LIONS “The Seven Worlds” “The Boy and the Piano” “Feel the Power of Pro” D&AD AWARDS VES AWARDS “Famous Visit
Slide 17: Long-standing And Deeply Cemented Relationships With Blue-chip Customers
Long-standing And Deeply Cemented Relationships With 3 Blue-chip Customers 100+ Year Legacy with Relationships with the Major U.S. Studios That Dates Back Generations Longstanding relationships with the Growing relationships with major Recurring franchise momentum major Hollywood studios (1) technol
Slide 18: Case Study: Disney Relationship
3 Case Study: Disney Relationship Relationship with Technicolor Started in 1932, with Extensive Volume of Work with TCS over the Years Making Disney One of the Company’s Largest and Longest Standing Clients 2008 2014 2016 2019 2019 1941 2020 1937 2021 1932 2022 1940 1950 2014 2016 2019 2019 2020 202
Slide 19: What Our Clients Say About Us?
3 What Our Clients Say About Us? Trusted Partner of Choice Closely Collaborating with Clients Across Major Projects Jon Favreau Director Executive Producer The Lion King Prehistoric Planet The Jungle Book 3+ PROJECTS “ Evolving how stories are made with the latest innovations of filmmaking technolog
Slide 20: Global Footprint with Highly Skilled and Flexible Talent
4 Global Footprint with Highly Skilled and Flexible Talent Unmatched Global Presence with 11,700+ Employees Across 11 Countries, Strategically Located Close to Clients and Key Talent Hubs, and with Significant Capacity in Regions Offering the Highest Production Incentives and in Low-Cost Centers ✓ M
Slide 21: Proven Ability to Recruit at Scale, While Increasing Investment in Talent
Proven Ability to Recruit at Scale, While Increasing Investment in 4 Effective Talent Retention & Training Measures Strong Demand for TCS Services Coming out of the Pandemic Underpins a Ramp-up in Revenue that Will Require Additional Capacity, Which TCS Has Been Anticipating ✓• TALENT is a primary f
Slide 22: Cutting Edge Technology and Workflow Processes Offering Competitive Advantage
Cutting Edge Technology and Workflow Processes Offering 5 Competitive Advantage Cutting-Edge Off- Proprietary Sizeable Unified Shared the-Shelf Software Development Infrastructure Platform Partner with the 3 major cloud providers 60PB TCS production storage globally in 19 different clusters Technolo
Slide 23: Significant Runway For Top-line Growth, EBITDA Expansion and Strong Cash Flow Generation
Significant Runway For Top-line Growth, EBITDA Expansion and Strong 6 Cash Flow Generation Revenue Adj. EBITDA after Lease (New Definition)(1) Adj. Operating Cash Flow after Lease (New Definition)(2) (€MM) (€MM) (€MM) ✓ Post-Covid top-line growth led by catch-up effect to ✓ Margin rebound thanks to
Slide 24: Potential Growth Levers Via Entry Into New Scalable Markets and M&A
Potential Growth Levers Via Entry Into New Scalable Markets and 7 M&A Multiple Avenues for Long-Term Sustainable Growth Including Building on the Group’s Experience in Acquiring Companies Including Mr. X Inc. (2014), OuiDO! Productions (2015), Mikros Image (2015), and The Mill (2015) Division Object
Slide 25: Experienced Management Team With Proven Track Record and Deep Sector Expertise
Experienced Management Team With Proven Track Record and 8 Deep Sector Expertise Leading an Efficient and Integrated Organization Laurent Carozzi 30+ Nathan Wappet 30+ Bill Polson 30+ Niki Steel 20+ CFO COO CTO, Software & People & Talent 5 10 R&D 3 1 28 Christian Roberton CEO 20 24 26 30+ 25 Tom Wi
Slide 26: Our Vision: Expand Capacity To Meet Strong Demand
Our Vision: To be the First-choice Production Partner for the World’s Most Creative Companies Expand Capacity To Meet Strong Demand and Invest in New Markets • Benefit from strong tailwinds in underlying markets to capture new demand • Expand capacity to increase volume and extend market leadership
Slide 27: Our Vision: Develop Our Brand as Employer of Choice
Our Vision: To be the First-choice Production Partner for the World’s Most Creative Companies Develop Our Brand To Be Seen As Employer of Choice By Talent • Increase investment in TCS Academy programs to train and develop talent • Increase accessibility to Learning & Development • Improve mobility o
Slide 28: Our Vision: Continue to Invest in R&D and Technology
Our Vision: To be the First-choice Production Partner for the World’s Most Creative Companies Continue to Invest in R&D and Technology • Focus R&D priorities on producing and delivering quality content at scale • Further improve utilization and efficiencies through technology to reduce dependency on
Slide 29: Our Vision: Capture the Metaverse Opportunity
Our Vision: To be the First-choice Production Partner for the World’s Most Creative Companies Leverage Existing Capabilities to Capture the Metaverse Opportunity • Leverage industry-leading immersive artistry and industrial-scale content creation platform for the Metaverse • Integrate emerging real-
Slide 30: Our Divisions
Our Divisions Tom Williams – MPC President Josh Mandel – The Mill President Andrea Miloro – Mikros Animation President Jeaneane Falkler – Technicolor Games President SECTION 2
Slide 31: Video Reel
Video Reel 31
Slide 32: MPC at a Glance
A MPC at a Glance A Global Leader in VFX for Over 25 Years Film & Episodic VFX Provider with Unique Experience, Scale and Track Working for Industry Leaders Including All The Major Studios … Record • Provides an end-to-end visual film-making experience by people passionate about creative excellence,
Slide 33: Global Film & Episodic VFX Market Expected to Grow at 12% CAGR
Global Film & Episodic VFX Market Expected to Grow at 12% CAGR Global Film & Episodic VFX Market Size and Growth Key Market Drivers Global Film & Episodic VFX Market ($Bn) Overall: 21-25E CAGR • Competition among streamers driving significant investment in original content 7.3 Film VFX: 6.8 • Focus
Slide 34: MPC One of the Few Tier 1 Players with Global Scale
MPC One of the Few Tier 1 Players with Global Scale and Significant Production Capacity Competitive Landscape – Film & Episodic VFX Tier 1 competitors Tier 2 competitors Independent Providers with Global Scale Source: FTI Consulting Due Diligence Report (April 2022), Company information OUR DIVISION
Slide 35: Working with All Major Studios and New Streaming Platforms
Working with All Major Studios and New Streaming Platforms 35
Slide 36: Working with All Major Studios and New Streaming Platforms
Working with All Major Studios and New Streaming Platforms 36
Slide 37: Working with All Major Studios and New Streaming Platforms
Working with All Major Studios and New Streaming Platforms 37
Slide 38: What's Next for MPC?
What’s Next for MPC? Benefit from Sustained Demand for Original Content and Grow Market Share Advantage by Delivering Best Value Through Product Excellence, Speed of Delivery and Price Competitiveness Leverage Existing Attract and Retain Continue to Invest Relationships Talent in Technology • Levera
Slide 39: Case Study – The Lion King
Case Study – The Lion King In Continuation of their Close Relationship, Disney Entrusted MPC with the Reimagination of The Lion King, the First Keyframe-animated Movie Shot on a VR Set with a Live-action Aesthetic – Essentially Removing the Divide Between Live Action and Animation “MPC helped build
Slide 40: Video Reel
Video Reel 40
Slide 41: The Mill at a Glance
B The Mill at a Glance Producing Groundbreaking Advertising, Content and Brand Experience Marketing Solutions The Industry’s Most-Awarded Teams Serving Brands and Agencies Working with the World’s Most Ambitious Agencies and Brands • Boasting brand strength that has enabled the business to expand fr
Slide 42: A >$30 Bn Market Opportunity Across Advertising Formats
A >$30 Bn Market Opportunity Across Advertising Formats… Global Brand Experience & Advertising Market Size and Growth Key Market Drivers Global Brand Experience & Advertising Market ($Bn) • Advertising Spots: increasing 21-25E CAGR spend on digital video advertising by brands 39.3 • Premium Branded
Slide 43: Looming Potential Recession May Have Contractionary Implications for Ad Spend
… However Looming Potential Recession May Have Contractionary Implications for Overall Advertising Spend Recession-Adjusted Brand Experience & Advertising Market Size and Growth Ad Spend Tends to Lead Business Cycle Variations… … Impacting Market Size Projections Change in Actual Ad Spend (%, nomina
Slide 44: The Mill Is Built For the Present and Future of Brand Experience & Advertising
The Mill Is Built For the Present and Future of Brand Experience & Advertising Organized Around 3 Business Lines To Capture And Operate Within a Broader Market Than Competitors VFX Creative Production Experience Mixed Reality, Metaverse, Across all media Design, Direction, Content Creation Location-
Slide 45: The Mill Occupies a Broader Swath of the Landscape
The Mill Occupies a Broader Swath of the Landscape Through More Capabilities and Products than Boutique Competitors The Mill Competes Across a Large Swath of the Brand Experience & Advertising Landscape Agency / consultancy Developing Capabilites DIGITAL Strategy VFX Experience Experience FILM/VFX C
Slide 46: Global Footprint Driven by Hub-Satellite Strategy
Global Footprint Driven by Hub-Satellite Strategy Full-service Studio Hubs Supporting/Supported by Tactical Satellite Offices and Sales Centers Europe London The Americas Asia New York Seoul Los Angeles Studio Hub Satellite Sales Center Opening Soon Under Evaluation OUR DIVISIONS 46
Slide 47: Case Studies – IBM and Innocean
Case Studies – IBM and Innocean Driving Deeper Relationships with Brands and Agencies Using The Mill’s Full Suite of Products and Services Relationship interest from Innocean Relationship began in 2018 with VFX: Worldwide as The Mill opened in Seoul in - Photorealism, CG, Composition, Finish early 2
Slide 48: Video Reel
Video Reel 48
Slide 49: Mikros Animation at a Glance
C Mikros Animation at a Glance Helping Filmmakers Define and Develop Their Vision From Script to Screen, Making Every Project Truly Unique A Global CGI Animation Studio Working with the Most Prominent Studios • Mikros Animation is a CGI animation studio dedicated to feature films, short form and lon
Slide 50: CG Animation Services Growth Driven by Digital Episodic Content
CG Animation Services Growth Driven by an Increase in Volume of Digital Episodic Content Global CG Animation Market Size and Growth Key Trends Driving Growth Global CG Animation Market ($Bn) • Increase in digital feature 21-25E CAGR films and episodic content, with rising demand from OTT platforms f
Slide 51: Mikros Animation is the #1 Independent CG Animation Provider Globally
Mikros Animation is the #1 Independent CG Animation Provider Globally Operating in a Highly Fragmented Market Competitive Landscape – CG Animation STUDIO100 DISNEY NBCUNIVERSAL Plus Many More… Globally Scaled Mid-Sized Smaller Players Independent Providers with Global Scale Source: FTI Consulting Du
Slide 52: Case Study – Paw Patrol
Case Study – Paw Patrol Mikros Animation Was Commissioned by Spin Master in 2019 to Give Life on the Big Screen to One of the Most Popular Children’s IP In order to increase the level of quality to a Mikros Animation teams worked feature standard, the team had to recreate all the assets and redesign
Slide 53: Video Reel
Video Reel 53
Slide 54: Technicolor Games at a Glance
D Technicolor Games at a Glance A Leading Art Services Studio for the Gaming Industry Blue Chip Game Publisher and Studio Client Base • Services include preproduction, game assets creation, animation, VFX, and in-engine integration, with co-development and quality assurance (“QA”) services currently
Slide 55: The Market for Outsourced Game Services is Expected to Grow Rapidly
The Market for Outsourced Game Services is Expected to Grow Rapidly Global Outsourced Game Services Market Size and Growth Commentary Global Outsourced Game Services Market ($Bn) Art Services: 21-25E CAGR • Second largest outsourced service line in Games along with Functional QA 5.7 • Allows Technic
Slide 56: Highly Fragmented Market With Only a Few True Global Scaled Service Providers
Highly Fragmented Market With Only a Few True Global Scaled Service Providers, Leaving Room for Technicolor Games to Expand Competitive Landscape – Outsourced Games Services Game Audio Localization Marketing Art Services Functional QA Localization Player Support Development Services QA Services Via
Slide 57: What's Next?
What’s Next? Revenue Opportunities on the Horizon Metaverse: The Games industry has been at the forefront of the “metaverse” for years; incoming requests for work in the metaverse are increasing as as more players jump into this space Leveraging TCS: Not only does being part of TCS afford Technicolo
Slide 58: Deep Dive on Production Workflow
Deep Dive on Production Workflow Leah Beevers – Global Head of Creative, MPC Nathan Wappet – COO Bill Polson – CTO Adam Valdez – VFX Supervisor, MPC SECTION 3
Slide 59: The TCS Value Proposition
Sales & Bidding Operations Technology Content Production The TCS Value Proposition Clients come to TCS for award winning visual arts services and to work with world TALENT class talent at a competitive price Sales & bidding process reflects these three key criteria PRICE QUALITY DEEP DIVE ON PRODUCT
Slide 60: Sales & Bidding
Sales & Bidding Leah Beevers – Global Head of Creative, MPC 60
Slide 61: Sales & Bidding Process (1/4)
Sales & Bidding Operations Technology Content Production Sales & Bidding Process (1/4) Materials received & Methodology/ Shots and Locations and Talent key info creative assets man rate cards Bid submission assignment collected from discussions days assigned assigned client • Scripts from clients ar
Slide 62: Asset and Shot Examples
Sales & Bidding Operations Technology Content Production Asset and Shot Examples Asset Shot DEEP DIVE ON PRODUCTION WORKFLOW 62
Slide 63: Sales & Bidding Process (2/4)
Sales & Bidding Operations Technology Content Production Sales & Bidding Process (2/4) Materials received & Methodology/ Shots and Locations and Talent key info creative assets man rate cards Bid submission assignment collected from discussions days assigned assigned client Asset Shot Dumbo flying t
Slide 64: Sales & Bidding Process (3/4)
Sales & Bidding Operations Technology Content Production Sales & Bidding Process (3/4) Materials received & Methodology/ Shots and Locations and Talent key info creative assets man rate cards Bid submission assignment collected from discussions days assigned assigned client • Rate cards are determin
Slide 65: Sales & Bidding Process (4/4)
Sales & Bidding Operations Technology Content Production Sales & Bidding Process (4/4) Materials received & Methodology/ Shots and Locations and Talent key info creative assets man rate cards Bid submission assignment collected from discussions days assigned assigned client Full Bid Proposal Submitt
Slide 66: Operations
Operations Nathan Wappet – COO 66
Slide 67: Deep Dive on Production Workflow
DEEP DIVE ON PRODUCTION WORKFLOW 67
Slide 68: Workforce Planning
Sales & Bidding Operations Technology Content Production Workforce Planning 3-year Strategic Workforce Plan Ensuring the Operational Structure Necessary to Achieve Forecasted Performance Key Workforce Planning Inputs 3-year Strategic Workforce Plan Output 3-Year Revenue Forecast 1 People & Talent 2
Slide 69: TCS Academy Delivers Courses Covering a Wide Array of Topics
Sales & Bidding Operations Technology Content Production TCS Academy Delivers Courses Covering a Wide Array of Topics 21 Different Courses to Prepare Junior Artists for Production with a Focus on Creative, Technical and Soft Skills Needed to Succeed Paint Prep 3D DMP / Environments Roto Animation Li
Slide 70: Efficient Headcount Management Through Centralization
Sales & Bidding Operations Technology Content Production Efficient Headcount Management Through Centralization Matching Supply & Demand Across All Divisions Centrally Allows TCS to Maximize Resource Utilization Production Demand Awarded and potential film, episodic, games, and advertising projects i
Slide 71: Introduction to Rendering
Sales & Bidding Operations Technology Content Production Introduction to Rendering Pre-Rendered Post-Rendered DEEP DIVE ON PRODUCTION WORKFLOW 71
Slide 72: TCS Render Management
Sales & Bidding Operations Technology Content Production TCS Render Management Key Principles for Managing Render Costs Advanced Data & Analytics Platform Deployed Globally Providing Real Time View of Resource Usage by Task, Department, and Artist • Render costs are estimated and built into the P&L
Slide 73: Technology
Technology Bill Polson – CTO 73
Slide 74: Technology Vision
Sales & Bidding Operations Technology Content Production Technology Vision A B C Unification Flexibility Scalability Unified infrastructure Send the work to which Technology enabling and workflows handled location best equipped scaling of artists’ in a common way – flexibility in our capabilities au
Slide 75: Significant Flow of Data Required for Global Production
Sales & Bidding Operations Technology Content Production Significant Flow of Data Required for Global Production Enabled by a Core Platform under Unified Backbone with Additional Integration Planned Large scale projects in MTL and LON Combination of legacy and new Liège Amsterdam cities Montreal Lon
Slide 76: The TCS Software Stack Provides Further Production Flexibility
Sales & Bidding Operations Technology Content Production The TCS Software Stack Provides Further Production Flexibility Cutting-Edge Off-the-Shelf Software Supplemented with Proprietary Development Leveraging off-the- shelf software to enable scale and Core Characters responsiveness Platform 3D Tool
Slide 77: Globally Distributed and Sizeable Infrastructure
Sales & Bidding Operations Technology Content Production Globally Distributed and Sizeable Infrastructure Key Capability 8,000 300TB 160TB 60PB Data traversing the TCS production Workstations globally + New content written global TCS network storage globally in 19 Academy in the cloud daily daily di
Slide 78: Use Case: Infrastructure Supports Virtual Production Globally
Sales & Bidding Operations Technology Content Production Use Case: Infrastructure Supports Virtual Production Globally Enabling One of The Largest Pools of Connected Digital Artist Capability in the World Virtual Production Set capture Los Angeles software, and actual shooting Virtual production Mon
Slide 79: Content Production
Content Production Adam Valdez – VFX Supervisor, MPC 79
Slide 80: Humans think in stories
Sales & Bidding Operations Technology Content Production “Humans think in stories, and we try to make sense of the world by telling stories.” - Yuval Noah Harari, Author of Sapiens “Of all our inventions for mass communication, Placeholder pictures still speak the most universally understood languag
Slide 81: We are visual storytellers
Sales & Bidding Operations Technology Content Production We are visual storytellers. Placeholder Once technology specialists, now essential collaborators, meeting the planet’s need for story. DEEP DIVE ON PRODUCTION WORKFLOW 81 81
Slide 82: Sales & Bidding Operations Technology
Sales & Bidding Operations Technology Content Production Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 82 82
Slide 83: Step 1: Designs and Green Light
Sales & Bidding Operations Technology Content Production Step 1: Designs and Step 2: Design and Step 3: Shoot Step 4: Finalize Green Light Plan Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 83 83
Slide 84: Step 1: Designs and Green Light
Sales & Bidding Operations Technology Content Production Step 1: Designs and Step 2: Design and Step 3: Shoot Step 4: Finalize Green Light Plan Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 84 84
Slide 85: Sales & Bidding Operations Technology
Sales & Bidding Operations Technology Content Production Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 85 85
Slide 86: Video Reel
Sales & Bidding Operations Technology Content Production Video Reel Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 86 86
Slide 87: Step 1: Designs and Green Light
Sales & Bidding Operations Technology Content Production Step 1: Designs and Step 2: Design and Step 3: Shoot Step 4: Finalize Green Light Plan Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 87 87
Slide 88: Sales & Bidding Operations Technology
Sales & Bidding Operations Technology Content Production Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 88 88
Slide 89: Sales & Bidding Operations Technology
Sales & Bidding Operations Technology Content Production Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 89 89
Slide 90: Step 1: Designs and Green Light
Sales & Bidding Operations Technology Content Production Step 1: Designs and Step 2: Design and Step 3: Shoot Step 4: Finalize Green Light Plan Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 90 90
Slide 91: Video Reel
Sales & Bidding Operations Technology Content Production Video Reel Placeholder DEEP DIVE ON PRODUCTION WORKFLOW 91 91
Slide 92: Financial Overview
Financial Overview Laurent Carozzi Chief Financial Officer SECTION 4
Slide 93: Key Financial Highlights
Key Financial Highlights 1 2 3 Structural growth Positive start to 2022 in Multiple sources drivers enabling post- challenging macro contributing to margin covid top-line environment expansion potential rebound 4 5 6 Guidance based on High degree of Significant focus on demand for TCS revenue visibi
Slide 94: New Reporting Adopted by the Group Going Forward (1/2)
New Reporting Adopted by the Group Going Forward (1/2) Change to Become More Comparable With Peers and More Aligned with the Manner the Business is Managed Metric FY19A FY20A FY21A Comment Adj. EBITDA (Old Definition) 150 18 107 • The Group has reviewed its key Operating Lease Payment (25) (21) (22)
Slide 95: New Reporting Adopted by the Group Going Forward (2/2)
New Reporting Adopted by the Group Going Forward (2/2) Change to Become More Comparable With Peers and More Aligned with the Manner the Business is Managed Old Reporting and Definition New Reporting and Definition Metric FY19A FY20A FY21A Metric FY19A FY20A FY21A EBITDA (Old Definition) 150 18 107 A
Slide 96: Structural Growth Drivers Enabling Post-Covid Top-line Rebound and Margin Expansion
Structural Growth Drivers Enabling Post-Covid Top-line Rebound and Margin Expansion Potential NEW DEFINTION Revenue (FY19A-21A, €MM) Adj. EBIT(D)A after Lease (New Definition) (FY19A-21A, €MM) FY20-21 12% (3%) 12% (43%) 37% Growth 771 4% (15%) 5% 9 1 58 601 30% 94 10 1 269 75 82 37% (65) 438 (44) 9
Slide 97: Capital-efficient Business Model
Capital-efficient Business Model Capex (FY19A-21A, €MM)(1) NEW DEFINTION 7% 5% 2% Comment 56 • Limited capex needs over historical period averaging ~6% between FY19 and FY20: ‒ Tangible capex: relating to IT and production equipment and facility build out costs ‒ Intangible capex: Consisting of soft
Slide 98: Operating and Free Cash Flow Summary
Operating and Free Cash Flow Summary Cash Flow Before Financing and Taxes (FY19A-21A, €MM) NEW DEFINTION Metric FY19A FY20A FY21A Adj. EBITDA after Lease (New Definition) 94 (12) 75 Capex (56) (23) (14) Capital Leases Cash Out (26) (24) (7) Restructuring Provisions (6) (13) (11) WC & OAL Variation 7
Slide 99: Financial Guidance
Financial Guidance Key Financial Indicators 2021A Outlook Demand for TCS artistry and technology expected to 1 Revenue €601 MM continue to grow significantly although the shortage of talent continues to pose a challenge to delivering pipeline €75 MM €120 – 130 MM(3) €140 – 160 MM(3) 2 Adj. EBITDA af
Slide 100: Improving Margin Profile Resulting from Multiple Sources
Improving Margin Profile Resulting from Multiple Sources… ILLUSTRATIVE Improvement in Margins by Targeting Major Operational Excellence Volume Effect Particularly in Higher Value Projects and Volumes Transformation Programme Translating Feature Animation to Higher Margins % of Total MPC Revenue Mikr
Slide 101: Proven Benefits of the Global Integrated Model
… Combined with Proven Benefits of the Global Integrated Model Growth in Total Headcount (in K) and Share of India (% of Direct Headcount) Comment • Trading in 2022 demonstrating the continuing challenge in recruiting 10.7 and retaining talent across key 10.3 production centers 3.1 ‒ However, key pr
Slide 102: Financial Policy
Financial Policy • Targeting capital structure consistent with the proposed separation • Final capital structure is still being decided and will be communicated when ready • Priority to focus on deleveraging over the next two years to align leverage with publicly listed peers (objective of ~3.5x Net
Slide 103: Conclusion & Q&A
technicolor CREATIVE STUDIOS Conclusion & Q&A SECTION 5
Slide 104: Appendix
technicolor CREATIVE STUDIOS Appendix
Slide 105: Transaction Structure
Transaction Structure TCH SHAREHOLDERS (incl. MCN subscribers) 100% At least 65% Spin-off: Vantiva creating two independent Connected Home + DVD Services TCS market leaders in their Technicolor Creative Studios respective sectors ➔ TCS: the global leader Up to in VFX and Animation, 35% offering an a
Slide 106: Risk Factors
Risk Factors • Covid-19 pandemic / Health & Safety: production delays, client delays, • Skills & knowledge management, development & retention: transformation, the postponements or cancellations of projects and additional healthy and safety costs current financial situation, lack of investment in sy
Slide 107: Revenue and Contract Model
Revenue and Contract Model Summary Contract Structure Commercial Model • Contract size and pricing is based on duration, scope of work and complexity of task • Contract size ranges depending on Division: • The Group typically receives bid parameters from clients, which its team of • MPC: combination
Slide 108: Reconciliation of Previously Reported Figures to New Reporting
Reconciliation of Previously Reported Figures to New Reporting Metric FY19A FY20A FY21A Adj. EBITDA from Continuing Operations (as Published) 164 18 113 % Margin 18.3% 3.6% 17.9% Change in Scope (Post Production) (9) 2 (2) Other Scope Adjustments(1) (5) (2) (3) Adj. EBITDA (Old Definition) 150 18 10
Slide 109: Adjusted EBITDA after Lease to EBIT Summary
Adjusted EBITDA after Lease to EBIT Summary Metric FY19A FY20A FY21A Adj. EBITDA after Lease (New Definition) 94 (12) 75 % Margin 12.2% (2.7%) 12.5% Other Non-cash Items(1) (1) - (1) Depreciation & Amortization(2) (64) (55) (43) Adj. EBITA after Lease (New Definition) 29 (67) 31 % Margin 3.8% (15.2%
Slide 110: Glossary
Glossary Term Definition Term Definition Adj. EBITDA EBITDA excluding cloud computing capacity utilization costs and depreciation IFRS International Financial Reporting Standards and amortization expenses, as well as the impact of provisions for risks, warranties and litigation KPIs Key Performance
Technicolor Creative Studios — Investor Day (June 2022) on 6ix