Vantiva Sa · EURONEXT:VANTI
Vantiva Sa — Q4 2020 Earnings Presentation
32 slides from Vantiva Sa's earnings presentation, Mar 11, 2021
Slide 1: Technicolor FY 2020 results, 11 March 2021
11 March 2021 technicolor.com
Slide 2: Forward-looking statements
contains certain statements that are based on constitute "forward-looking management's current expectations statements”, including but not and beliefs and are subject to a limited to statements that are number of risks and uncertainties that predictions of or indicate future could cause actual resul
Slide 3: FY 2020 Group Update
FY 2020 GROUP UPDATE i |.
Slide 4: 2020 at a Glance
2020 AT A GLANCE BALANCE SHEET STRENGTHENED THROUGH DESPITE THE PROLONGED PANDEMIC, FINANCIAL RESTRUCTURING AND MOMENTUM TECHNICOLOR EXCEEDED ITS 2020 GUIDANCE IN ONGOING BUSINESS TRANSFORMATION ON EBITDA, EBITA AND FCF ► As of December 31, ► Significant momentum in ► Permanent cost ► Continuing FCF
Slide 5: Key Figures from Continuing Operations
KEY FIGURES FROM CONTINUING OPERATIONS REVENUES of €3,006 million Second half ADJUSTED ADJUSTED EBITA of FCF (before interest and tax) of €(124) demonstrating the resilience of the EBITDA more than doubling €(56) million, lower by million was lower by €(116) million at current Group’s activities to
Slide 6: Production Services
PRODUCTION SERVICES Revenues (in € million) Adjusted EBITDA (in € million) REVENUE HIGHLIGHTS: NEW APPOINTMENT of Christian Roberton as @ Current rate @ Current rate President of Production Services, Josh Mandel has REVENUE DOWN 41.4% YOY become CEO of The Mill, and Andrea Miloro recently AT CONST
Slide 7: Connected Home
CONNECTED HOME Revenues (in € million) REVENUE HIGHLIGHTS: CONNECTED HOME IS @ Current rate REVENUE DOWN 7.6% YOY AT MAINTAINING ITS 1,983 CONSTANT RATE MARKET LEADERSHIP 1,764 H1 577 Revenues remained strong in in broadband and Android H1 522 North America driven by increased TV-based solutions
Slide 8: DVD Services
DVD SERVICES Revenues (in € million) Adjusted EBITDA (in € million) @ Current rate @ Current rate REVENUE HIGHLIGHTS: DIVISION-WIDE INITIATIVES: VOLUME DOWN 22.9% YOY Restructuring of distribution and replication 9.1% operations, and renegotiation of related Limited number of new customer cont
Slide 9: Short and Medium-Term Outlook
SHORT AND MEDIUM-TERM OUTLOOK In € million, post IFRS 16 Technicolor will continue to improve its EBITDA, Outlook Continuing Operations EBITA and FCF throughout 2021 & 2022, given the 2020a1 2021e 2022e4 change in perimeter (sale of Post Production) and the change in forex assumptions3, our guidance
Slide 10: Strategic Focus in the Coming Years
STRATEGIC FOCUS IN THE COMING WEARS (oii | technicolor
Slide 11: Production Services: A Worldwide Leader in Entertainment Experiences
PRODUCTION SERVICES: A WORLDWIDE LEADER IN THE CREATION OF EXTRAORDINARY ENTERTAINMENT EXPERIENCES VISION: TECHNOLOGICAL CONVERGENCE IN THE MEDIA & ENTERTAINMENT INDUSTRY OFFERS MANY OPPORTUNITIES FOR OUR DIGITAL PRODUCTION EXPERTISE, FROM INCREASING DEMAND FOR ORIGINAL CONTENT TO IMMERSIVE EXPERIEN
Slide 12: Production Services: 2021 to 2023 Roadmap
PRODUCTION SERVICES: 2021 TO 2023 ROADMAP ACCELERATE GROWTH & IMPROVE MARGINS 2021 2022 2023 STRUCTURE FOR ACCELERATE SCALE FROM EFFICIENT GROWTH ORGANIC GROWTH STRENGTH ► Unify Production Services both ► Anticipate strong level of pent-up ► Scale beyond pre-pandemic culturally and structurally dema
Slide 13: Production Services Imperatives
PRODUCTION SERVICES IMPERATIVES SCALE STREAMING/EPISODIC EXTEND UPSTREAM IN FURTHER DIVERSIFY REVENUE TRENDS IN 2021 VFX BUSINESSES ADVERTISING VALUE CHAIN MIX AND 2022 ➔ Production Services has been awarded several new major projects, FILM & EPISODIC VFX ADVERTISING ANIMATION & GAMES already securi
Slide 14: Connected Home: Global Footprint with Leading Presence
CONNECTED HOME: A GLOBAL FOOTPRINT WITH LEADING PRESENCE IN ALL KEY MARKETS ► In value for broadband modems and #1 gateways, with industry-recognized IN DOCSIS 3.1 37% (Market and Technicolor revenues (value) leadership in wireless and show double digit growth in ) broadband technologies for cable a
Slide 15: Connected Home: Business Transformation to Drive Leadership
CONNECTED HOME: BUSINESS TRANSFORMATION TO DRIVE LEADERSHIP PORTFOLIO DIVERSIFICATION LEAN AND 1 CUSTOMERS 2 STRATEGY 3 (Verticals) 4 EFFICIENT ► Strong leadership with ► Strong leadership in ► An operator-class IOT open ► Highly automated cable operators in US broadband cable and platform is needed
Slide 16: DVD Services: Maximising the Long Tail
DVD SERVICES: MAXIMISING THE LONG TAIL KEY LEVERS FOR FUTURE GROWTH AND MARGIN IMPROVEMENT 2021-22 COST TRENDS KEY CUSTOMER RELATIONSHIPS DIVERSIFICATION OPTIMIZATION Recovery fueled by: ► Further implementation of ► Continued optimization of ► Robust YoY growth of ➔ Continuing high activity based a
Slide 17: Key Performance Figures
KEY PERFORMANCE FIGURES || technicolor
Slide 18: Key Figures (YTD) – Group
KEY FIGURES (YTD) – GROUP FULL YEAR Forex vs. LY vs. LY 2020 2019 impact at constant rate (a) (b) (c=a+b) (in € million) Current rate LY rate LY rate Current rate LY rate Revenues 3,006 3,096 3,800 (794) (20.9)% +90 (704) (18.5)% Adjusted EBITDA 167 175 324 (157) (48.5)% +8 (149) (46.0)% in % of Rev
Slide 19: Adjusted EBITDA Bridge vs. LY (YTD)
ADJUSTED EBITDA BRIDGE VS. LY (YTD) 19 C3 - Restricted Natixis
Slide 20: Production Services Full Year 2020 Profitability
PRODUCTION SERVICES FULL YEAR 2020 PROFITABILITY FULL YEAR vs. LY vs. LY 2020 2019 Forex at constant rate (a) impact (c=a+b) (b) Production Services Current rate LY rate LY rate Current rate LY rate in € million Revenues 513 523 893 (380) (42.5)% +10 (370) (41.4)% Ajusted EBITDA 18 20 164 (145) (88.
Slide 21: Connected Home Full Year 2020 Profitability
CONNECTED HOME FULL YEAR 2020 PROFITABILITY FULL YEAR vs. LY vs. LY 2020 2019 Forex at constant rate (a) impact (c=a+b) (b) Connected Home Current rate LY rate LY rate Current rate LY rate in € million Revenues 1,764 1,831 1,983 (219) (11.0)% +67 (151) (7.6)% Ajusted EBITDA 110 115 79 +31 +39.5% +6
Slide 22: DVD Services Full Year 2020 Profitability
DVD SERVICES FULL YEAR 2020 PROFITABILITY FULL YEAR vs. LY vs. LY 2020 2019 Forex at constant rate (a) impact (c=a+b) (b) DVD Services Current rate LY rate LY rate Current rate LY rate in € million Revenues 706 718 882 (176) (20.0)% +12 (164) (18.6)% Ajusted EBITDA 54 55 81 (27) (33.6)% +1 (26) (32.
Slide 23: From Adjusted EBITDA to EBIT in Summary
FROM ADJUSTED EBITDA TO EBIT IN SUMMARY FULL YEAR vs. LY vs. LY 2020 2019 at constant rate (a) Forex impact (c=a+b) (b) in € million Current rate LY rate LY rate Current rate LY rate Adjusted EBITDA 167 175 324 (157) +8 (149) D&A(1) & Reserves(2) w/o PPA amortization (223) (229) (282) +59 (6) +53 Ad
Slide 24: From EBIT to Net Result Group (YTD)
FROM EBIT TO NET RESULT GROUP (YTD) FULL YEAR vs. LY vs. LY 2020 2019 at constant rate (a) Forex impact (c=a+b) (b) in € million Current rate LY rate LY rate Current rate LY rate EBIT Continuing (264) (266) (121) (144) (2) (146) Net Interest Expense (78) (77) (69) (9) +1 (8) Others Financial 155 153
Slide 25: Free Cash Flow from Continuing Operations
FREE CASH FLOW FROM CONTINUING OPERATIONS Free Cash Flow from continuing operations: FY 2020 vs FY 2019 (98) (191) (190) (149) (12) (1) (1) +1 +23 +58 (35) +24 FCF FY 2019 EBITDA Net Net ∆ WC/OAL Rendering Financial Tax Pensions FCF FY 2020 Forex FCF FY 2020 as published ADJ Capex Restructuring and
Slide 26: Debt Structure
DEBT STRUCTURE Nominal IFRS Type of Nominal Repayment Moodys / In million currency Currency Final maturity Amount Amount rate rate (1) Type S&P rating New Money notes EUR 350 363 Floating 12.00%(2) Bullet Jun. 30, 2024 Caa1/B New Money Term loans USD 98 101 Floating 12.34%(3) Bullet Jun. 30, 2024 Ca
Slide 27: Details of Debt at December 31, 2020 (Including Op. Lease Debt)
DETAILS OF DEBT AT DECEMBER 31, 2020 (INCLUDING OP. LEASE DEBT) Nominal IFRS Int. Rate Dec 31, 2020 Dec 31, 2019 Borrower Type Curr. Rate Formula Maturity Rate Rate Hedging? Nominal IFRS Nominal IFRS Technicolor SA Term Loan USD Libor w/ floor of 0% + 2.75% n.a.* 4.66% 4.76% No - - 259 258 Technicol
Slide 28: Liquidity
LIQUIDITY Liquidity at December 31st, 2020 Available Amount (€m) Cash on hand 330 Committed credit facilities (fully undrawn) Wells Fargo credit line* ($125m) 102 Liquidity €432m ► Moreover, Technicolor has the possibility of drawing an additional €50 million, on an uncommitted basis, of New Money d
Slide 29: Appendix
Slide 30: Group Profile – Revenue
GROUP PROFILE – REVENUE 2020 2020 29% Europe, Middle-East 59% & Africa 26% Connected Home 52% 23% 23% 57% 9% 2019 2019 DVD Services North America 12% Asia-Pacific 53% 5% 9% 1% 24% Latina America 1% 17% Corporate & Other Production Services 30 C3 - Restricted Natixis
Slide 31: Details of Debt at December 31, 2020 (Excluding Op. Lease Debt)
DETAILS OF DEBT AT DECEMBER 31, 2020 (EXCLUDING OP. LEASE DEBT) Nominal IFRS Int. Rate Dec 31, 2020 Dec 31, 2019 Borrower Type Curr. Rate Formula Maturity Rate Rate Hedging? Nominal IFRS Nominal IFRS Technicolor SA Term Loan USD Libor w/ floor of 0% + 2.75% n.a.* 4.66% 4.76% No - - 259 258 Technicol
Slide 32: Thank You
THANK YOU C3 - Restricted Natixis