Eastman Kodak Company · NYSE:KODK
Eastman Kodak — Debt Investor Presentation (January 2012)
31 slides from Eastman Kodak's debt investor presentation, Jan 24, 2012
Slide 1: Public Lender Presentation
Exhibit 99.1 Public Lender Presentation January 2012
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Eastman Kodak Company (the “Company”). It contains general information about the Company’s activities as at the date of the presentation. It is information given in summary form and does not purport to be complete. This presentation is not, and nothi
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation includes forward-looking statements, as that term is defined under the Private Securities Litigation Reform Act of 1995. Forward–looking statements include statements concerning the Company’s plans, objectives, goals, strate
Slide 4: Executive Summary
Executive Summary Eastman Kodak Company (the “Company” or “Kodak”) is a worldwide leader in imaging technology, helping consumers, businesses and creative professionals unleash the power of pictures and printing to enrich their lives The Company recently reorganized and simplified its operating stru
Slide 5: Kodak Overview
Kodak Overview
Slide 6: Introduction: A Valuable Core; A Challenging Transition
Introduction: A Valuable Core; A Challenging Transition Leader in Imaging Technology Kodak History of Innovation A transition from a film to a digital business First Digital Camera (1976) Broad Geographic Footprint Kodak Picture Exchange – first online imaging service for professional Kodak operates
Slide 7: Financial Update
Financial Update Revenue Financial Commentary ($ in millions) 2010: $7,167 2011: $6,022 2011 revenue driven by: $2,500 – Continued decline in traditional film businesses $1,914 $1,942 – Transformative strategy in digital cameras 2,000 $1,756 $1,753 – Revenue declines offset by increases in growth bu
Slide 8: Where We Are Today: Simplifying Our Operating Structure
Where We Are Today: Simplifying Our Operating Structure Before Now GCG CDG FPEG Commercial Consumer (2011 Rev: $2.7B) (2011 Rev: $1.7B) (2011 Rev: $1.5B) (2011 Rev: $3.4B) (2011 Rev: $2.6B) Graphics, Entertainment & Digital Printing Retail Systems Entertainment Retail Systems Solutions Commercial Fi
Slide 9: Investment Considerations
Investment Considerations Market Leader in the Commercial Printing Sector Attractive and Valuable IP Portfolio Significant Global Distribution Capabilities with Direct Businesses in 33 Countries Growth Businesses at Earnings Inflection Point Substantial Global Cost Reduction Opportunity Super Priori
Slide 10: Our Plan
Our Plan
Slide 11: Key Objectives of Restructuring Plan
Key Objectives of Restructuring Plan Bolster liquidity in the U.S. and abroad Monetize non-strategic intellectual property Fairly resolve legacy liabilities Focus on its most valuable business lines 11
Slide 12: Business Lines by Life Cycle
Business Lines by Life Cycle Core Businesses Growth Businesses Retail Systems Solutions Consumer Inkjet Kodak Will Document Scanners Digital Printing Solutions (Part of Enterprise Services & Solutions) Focus on its Most Valuable Workflow Software & Businesses Digital Plates (Part of Prepress Solutio
Slide 13: Financial Overview By Life Cycle
Financial Overview By Life Cycle ($ in millions) Revenue Adjusted EBITDA Core Core 2010: $2,250 2011: $2,297 2010: $210 2011: $214 $1,000 $100 $76 $79 $629 $640 $562 $562 $579 $572 $57 $54 $54 $57 $496 $506 500 50 $23 $24 0 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Slide 14: IP Monetization Summary
IP Monetization Summary Kodak is a pioneer in the field of imaging technology Contemporary innovations include the invention of the digital still camera, online photo exchange, as well as technology development in key digital capture fields such as sensors and image processing algorithms 2008 throug
Slide 15: Robust DC and KISS Portfolios
Robust DC and KISS Portfolios Portfolios cover many established and developing digital imaging technologies From “capture” to “edit” to “manage” to “display” to “share” to “print” Includes hardware, software, image science, networking & e-commerce Camera Architecture Optical Image Formation Sensing
Slide 16: Cost-Cutting Initiatives: $100M+ Opportunity
Cost-Cutting Initiatives: $100M+ Opportunity Overview of Corporate Cost Reductions ($ in millions) Corporate Costs Have explored potential for cost cutting across all corporate costs Finance, Purchasing and – Significant reduction in finance costs, $260 Information Systems aided by simplified, two s
Slide 17: Chief Restructuring Officer Will Aid Plan Execution
Chief Restructuring Officer Will Aid Plan Execution Kodak has hired James A. Mesterharm of AlixPartners as Chief Restructuring Officer to assist in the implementation and execution of the Company’s restructuring plan Biography Function Jim Mesterharm is an AlixPartners Managing Director Mr. Mesterha
Slide 18: 13-Week Cash Flow U.S. Forecast
13-Week Cash Flow U.S. Forecast 1 2 3 4 5 6 7 8 9 10 11 12 13 Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Pre-Petition Post-Petition Post-Petition Post-Petition Post-Petition Post-Petition Post-Petition Post-Petiti
Slide 19: Transaction Overview
Transaction Overview
Slide 20: Transaction Overview
Transaction Overview The Company is inviting potential lenders to participate in an up to $950 million debtor- in-possession facility The transaction will provide the Company with necessary liquidity and will be used to refinance the pre-petition first lien asset based revolving credit facility The
Slide 21: Sources & Uses
Sources & Uses At Interim Order ($ in millions) Sources of Funds Amount % Uses of Funds Amount % DIP ABL Revolver (1) $0.0 0% Repayment of principal under pre-petition ABL Facility $100.0 25% DIP Term Loan 400.0 100% Restructuring expenses and cash to balance sheet 300.0 75% Total Sources $400.0 100
Slide 22: Pro Forma Capitalization at Final Order
Pro Forma Capitalization at Final Order Pro Forma Capitalization Table at Final Order ($ in millions) 12/31/2011* Adjustments Pro Forma Post-Petition DIP ABL Revolver (1) - - - DIP Term Loan - $700 $700 Total Post-Petition Secured Debt - $700 Pre-Petition Existing ABL Revolver $100 ($100) - Total Fi
Slide 23: Summary of Terms – Asset Based Revolver
Summary of Terms – Asset Based Revolver Borrowers Eastman Kodak Company, as a debtor and debtor-in-possession, and Kodak Canada Inc. Guarantors All of the Company’s direct and indirect U.S. and Canadian subsidiaries (substantially identical to the prepetition ABL facility) Agent Citicorp North Ameri
Slide 24: Summary of Terms – Term Loan
Summary of Terms – Term Loan Borrowers Eastman Kodak Company, as a debtor and debtor-in-possession Guarantors All of the Company’s direct and indirect U.S. subsidiaries Agent Citicorp North America, Inc. Sole Lead Citigroup Global Markets Inc. Arranger Facility Up to $700 million term loan facility
Slide 25: Asset Based Revolver and Term Loan Covenants
Asset Based Revolver and Term Loan Covenants Affirmative Usual and customary for DIP facilities, including, but not limited to: Covenants The hiring and continued employment of a Chief Restructuring Officer Case milestones, including, but not limited to, the requirement to file a bidding procedures
Slide 26: Term Loan Collateral Overview
Term Loan Collateral Overview The DIP Term Loan facility will have a perfected first priority secured interest in intellectual property, real estate and a 65% pledge of the stock of foreign subsidiaries – Additionally, the DIP Term Loan will benefit from a perfected second priority secured interest
Slide 27: Transaction Timeline – Term Loan
Transaction Timeline – Term Loan January 2012 February 2012 S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 29 Week of Action th January 16 • Bankruptcy filing r
Slide 28: Appendix
Appendix
Slide 29: Businesses Under U.K. Corporate Structure
Businesses Under U.K. Corporate Structure The proportion of Kodak’s business operations that are under the U.K. corporate structure is immaterial. Kodak U.K. also holds KIFL, which is finance vehicle for ROW. Kodak is in constructive discussions with the trustees of its U.K. pension plan. Eastman Ko
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Within the Company's January 23, 2012 Public Lender Presentation, reference is made to certain non-GAAP financial measures, including “Core Adjusted EBITDA”, “Growth Adjusted EBITDA”, “Manage for Cash/Value Adjusted EBITDA” and “Adjusted EBITDA” The following table reconcile
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Within the Company's January 23, 2012 Public Lender Presentation, reference is made to certain non-GAAP financial measures, including “Core Adjusted EBITDA”, “Growth Adjusted EBITDA”, “Manage for Cash/Value Adjusted EBITDA” and “Adjusted EBITDA” The following table reconcile
Eastman Kodak — Debt Investor Presentation (January 2012) on 6ix