Slide 1: H1 2017 Results, 27 July 2017
2 7 J U L Y 2 0 1 7 2 0 1 7 t e c h n i c o l o r . c o m
Slide 2: Executive Summary
EXECUTIVE SUMMARY Slow start ► STRONG ► REINFORCING PERFORMANCE to the year cost optimization EXPECTED ► Free Cash Flow in H2 2017 momentum excluding CRT ► ONGOING building ► Revenues at at €(67)m MITIGATION through €2,146m ACTIONS related to SOLID ► Group Free ORDER rest of the ► Ad. EBITDA at Cash
Slide 3: H1 2017 Segment Results
H1 2017 SEGMENT RESULTS technicolor
Slide 4: H1 2017 – Revenues and Adj. EBITDA
H1 2017 – Revenues and Adj. EBITDA REVENUES Adj. EBITDA Δ% Δ% Δ% Δ% H1 2016 H1 2016 (in € million) H1 2017 Current Constant H1 2017 Current Constant Restated* Restated* currency currency currency currency Connected Home 1,378 1,252 (9.2)% (11.2)% 106 57 (46.0)% (47.6)% Entertainment 863 838 (2.9)% (
Slide 5: Connected Home: H1 performance
Connected Home: H1 performance Revenues (€m) Revenues by region (€m) Revenues by product (€m) Change at constant currency Change at current currency (39.1)% Broadband EMEA 588 (14.4)% 15% 504 LATAM (26.2)% 1,378 1,252 15% Video NAM 63% APAC 790 (5.3)% 748 8% (8.9)% H1 2016 H1 2017 H1 2016 H1 2017 +9
Slide 6: Production Services: H1 performance
Production Services: H1 performance Revenues (€m) Change at constant currency ADJ. EBITDA HIGHLIGHTS ► Adj. EBITDA stable compared to the first half 2016 due to: ➢ Constrained capacity in H1 383 ➢ Lower contribution of Advertising 369 ► Expansion of capacities in Film and Animation with hire of new
Slide 7: DVD Services: H1 performance
DVD Services: H1 performance Revenues (€m) Change at constant currency ADJ. EBITDA HIGHLIGHTS ► Adj. EBITDA stable compared to the first half 2016 ► Margin improvement compared to H1 2016 due to: ➢ Cost saving actions following the acquisition 494 454 of Cinram North American assets last year ➢ Ongo
Slide 8: Technology: H1 performance
Technology: H1 performance REVENUES HIGHLIGHTS ► Revenues down by 68.2% at constant currency reflecting Revenues (€m) an adverse comparison to a very strong H1 2016: ➢ Large number of one-offs in H1 2016: HEVC agreement, upfront payments related to other licensing agreements 177 ➢ End of several DTV
Slide 9: Cash Generation & Deleveraging
CASH GENERATION & DELEVERAGING
Slide 10: P&L Overview
P&L Overview (in € million) H1 2016* H1 2017 Change** Group revenues 2,420 2,146 (274) Adjusted EBITDA 265 107 (158) Adjusted EBIT before PPA*** 179 22 (157) amortization Adjusted EBIT 152 (4) (156) EBIT 93 (37) (130) EBIT excluding PPA*** 120 ( 11 ) (131) amortization Financial result (73) (62) +11
Slide 11: Key Cash Flow Indicators
Key Cash Flow Indicators (in € million) H1 2016 H1 2017 Change GROUPE FCF 98 (148) (246) CRT 24 81 +5 7 FCF without CRT 122 (67) (189) (69) (28) 107 (29) (73) (37) (148) +3 (20) (75) H1 2017 Net capex Net restruc. Δ WC & OAL Financial Tax Pensions and FCF Disco.* H1 2017 Adj. EBITDA others Continuin
Slide 12: 2017 Objectives
2017 OBJECTIVES 2 0 1 7
Slide 13: Objectives
OBJECTIVES In excess of €150 In the range of Continuous million before cash €420 million to deleveraging impacts of the CRT €480 million cartel case settlements 13 2 0 1 7
Slide 14: Appendix
yan APPENDIX technicolor
Slide 15: Group Free cash flow – IFRS reconciliation
Group Free cash flow – IFRS reconciliation December 31, 2016 June 30, 2016 June 30, 2017 (in € million) Audited Unaudited Unaudited Adjusted EBITDA 565 265 107 Changes in working capital and other 106 67 (29) assets and liabilities Pension cash usage of the period (note (28) (14) (13) 8.1) Restructu
Slide 16: Cash Net nominal debt evolution (non IFRS)
Cash Net nominal debt evolution (non IFRS) (in € million) January 01 2017 June 30 2017 Group FCF New cash Net from debt acquisition Dividend Cash Forex Other position 371 (148) +35 (22) (25) (22) (6) 183 Gross 1,099 1,083 nominal debt (593) +556 (9) +90 (2) (26) Net debt at Term loan Term loan New t
Slide 17: Healthy Balance Sheet structure
Healthy Balance Sheet structure June 30, 2017 December 31, 2016 (in € million) Borrower Nominal Debt IFRS Debt 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 262 260 - - Te
Slide 18: Production Services awards and nominations
PRODUCTION SERVICES WINS Season NOMINATIONS WINS Worked on nominated projects 1 WIN NOMINATIONS NOMINATIONS NOMINATIONS 5 WINS 1 WIN Worked on Oscar films WINS Worked on nominated films Worked on nominated projects WINS WINS 2 0 1 7 NOMINATIONS
Slide 19: Technicolor Experience Center
TECHNICOLOR THE TEC Confirmed Partners EXPERIENCE CENTER where artists and scientists realize the full potential of immersive media The Technicolor Experience Center helps drive multi-disciplinary collaboration to elevate the new canvas of 19 2 0 1 7