Slide 1: February 27, 2019
February 27, 2019 technicolor.com
Slide 2: Forward-looking statements
contains certain statements that are based on constitute "forward-looking management's current expectations and statements", including but not beliefs and are subject to a number of limited to statements that are risks and uncertainties that could cause predictions of or indicate future actual resul
Slide 3: FY 2018 highlights
► 2018 Adjusted EBITDA, before taking into account the positive impact of the announced disposal of the Research & Innovation (“R&I”) activity, amounted to €267 million at constant rate within the revised guidance communicated by Technicolor in December 2018 ► YoY revenue decrease but with a return
Slide 4: Reconciliation of 2017 and guidance perimeter
► Reconciliation of 2017 and guidance perimeter In € million Adj. EBITDA Free cash flow 2017 as published in February 2018 at current rate 291 63 “R&I” 28 16 Retained Patent Licensing revenues 22 29 2017 excluding “R&I” costs and including retained Patent Licensing revenues 341 109 In € million Adj.
Slide 5: Outlook and strategy; no numerical guidance
► Investments in organic growth will continue in well-defined areas ► SPECIFICALLY, THE GROUP WILL CONTINUE TO: Build upon its strong position by increasing capacity while continuing to improve profitability in Production Services Invest in market share gains in Connected Home Renew contracts
Slide 6: Production Services revenue and highlights
REVENUE HIGHLIGHTS: Revenues (inSeries € million) 1 @ Current rate ► UP C.6% YOY REVENUE GROWTH AT CONSTANT RATE Record year with very strong double-digit revenue growth in Film and TV Visual Effects benefiting from significant capacity investments Mid-single digit revenue growth in Advertising
Slide 7: DVD Services revenue and highlights
Revenues (in €Series million) 1 @ Current rate REVENUE HIGHLIGHTS: ► VOLUMES DOWN C.11% YOY DRIVEN BY: Standard and CD volume decline partly offset by ongoing growth in Blu-ray™ as well as positive impact of SONY DADC outsourcing ► FY REVENUE DECLINE OF C. 5% AT CONSTANT RATE 1,024 942 ADJ. EBITDA
Slide 8: Connected Home revenue and Adjusted EBITDA
Revenues (in € million) @ Current rate Title REVENUE HIGHLIGHTS: 2,419 ► YEAR-ON-YEAR DECLINE 2,218 C.5% YoY revenue decrease at constant rate, mainly due to 837 North American Video, but up 4.9% in the second half Broadband 1 140 ADJ. EBITDA HIGHLIGHTS: 1 582 ► YEAR-ON-YEAR DECLINE Video 1 078
Slide 9: Key financial performance from continuing operations
KEY jill FINANCIAL PERFORM FROM CONTINUI OPERATIO
Slide 10: Section slide ranges
1 2 3 4 Slides 11 to 13 Slides 14 to 16 Slides 17 to 25 Slides 26 to 27
Slide 11: Key performance figures
KEY jij PERFORMANCE ~ FIGURES
Slide 12: Group income statement summary
vs. LY vs. LY at constant rate 2018 2017 (a) Forex impact (c=a+b) (b) (in € million) Current rate LY Rate LY Rate Current rate LY rate Revenues 3,988 4,132 4,253 (265) (6.2)% 143 (122) (2.9)% Adjusted EBITDA 266 284 341 (74) (21.8)% 18 (57) (16.6)% in % of Revenues 6.7% 6.9% 8.0% D&A & Reserves (*)
Slide 13: Adjusted EBITDA FY 2018 vs. FY 2017
Adjusted EBITDA FY 2018 vs. FY 2017, in € million -57 -18 341 284 266 FY 2017 Adj. EBITDA as Business Performance FY 2018 Adj. EBITDA as Forex FY 2018 Adj. EBITDA as published in Feb. 2018 published in Feb 2019 at published in Feb. 2019 excluding “R&I” costs constant rate at current rate and includi
Slide 14: Performance by division
PERFORMANCE BY DIVISION
Slide 15: Entertainment Services
vs. LY 2018 2017 vs. LY (a) at constant rate Forex impact (c=a+b) (b) Entertainment Services Current rate LY Rate LY Rate Current rate LY rate in € million Revenues 1,726 1,780 1,790 (64) (3.6)% 54 (9) (0.5)% Ajusted EBITDA 178 184 216 (38) (17.6)% 6 (32) (14.8)% in % of Revenues 10.3% 10.3% 12.1% D
Slide 16: Connected Home
vs. LY 2018 2017 vs. LY (a) at constant rate Forex impact (c=a+b) (b) Connected Home Current rate LY Rate LY Rate Current rate LY rate in € million Revenues 2,218 2,306 2,419 (201) (8.3)% 88 (113) (4.7)% Ajusted EBITDA 87 98 128 (41) (32.2)% 12 (29) (23.1)% in % of Revenues 3.9% 4.3% 5.3% D&A & Rese
Slide 17: Group financial results
GROUP FINANCI RESULTS ‘
Slide 18: Adjusted EBITDA to EBIT continuing
vs. LY at vs. LY 2018 2017 constant rate (a) Forex impact (b) (c=a+b) In € million Current rate LY Rate LY rate ∆ @ CR ∆ @ LY Adjusted EBITDA 266 284 341 (74) 18 (57) D&A & Reserves (*) w/o PPA (168) (174) (190) 21 (6) 16 amortization Recurring EBITA 98 110 151 (53) 12 (41) PPA Amortization (50) (51
Slide 19: EBIT to net result
vs. LY at vs. LY 2018 2017 constant rate (a) Forex impact (b) (c=a+b) In € million Current rate LY Rate LY rate ∆ @ CR ∆ @ LY EBIT Continuing (119) (113) 40 (159) 6 (153) Net Interest Expense (40) (40) (43) 3 - 3 Others Financial (10) (16) (54) 43 (6) 38 Profit before tax (170) (169) (56) (114) 1 (1
Slide 20: Free cash flow bridge FY 2017 to FY 2018
+16 +29 (57) 109 (21) (5) 63 (70) (1) (8) (43) (9) +18 FCF FY 2017 Remaining R&I FCF FY 2017 EBITDA Net Net ∆ WC/OAL Financial Tax Pensions Forex FCF FY 2018 as published PL as restated ADJ Capex Restructuring and Other in Feb18 for 2018 publication 20
Slide 21: Debt structure at December 31, 2018
In € million Nominal IFRS December 31, 2018 December 31, 2017 Type Curr. Rate Formula Maturity Rate Rate Nominal IFRS Nominal IFRS Term Loan USD 3M Libor with 0% floor +2.75% Dec 23 5.46% 5.58% 258 257 249 248 Term Loan EUR 3M Euribor with 0% floor +3.00% Dec 23 3.00% 3.11% 275 274 275 273 Term Loan
Slide 22: Financial covenants and maturities
Debt/Credit line Financial Covenant Covenant Testing Maturity December 2023 Term loans none n.a. (bullet except for $3 million/ year amortization) At June 30 and December 31 Revolving credit facility IFRS Debt/EBITDA ≤ 4.00 December 2021 only if >€100m drawn At June 30 and December 31 Wells Fargo re
Slide 23: Debt amortization and repayment schedule
DEBT AMORTIZATION AND REPAYMENT SCHEDULE In € million 972 90 20 15 17 32 5 2018 2019 2020 2021 2022 2023 Normal amortization schedule Prepayment 23
Slide 24: Net debt bridge
(in € million) 01 Jan. FCF CF Disco PL EIB Others 31 Dec. 2018 Continuing disposal repayment 2018 117 (90) (43) (7) Cash (4) position 319 291 (90) 16 Gross Nominal 1 103 1 029 Debt EIB Others repayment Net debt at nominal 784 738 value 24
Slide 25: Group's liquidity
Liquidity at December 31, 2018 Amount (in € million) Cash on hand at December 31, 2018 291 Committed credit facilities: Revolving credit facility 250 Wells Fargo receivables backed credit facility 109 Bilateral credit line with Crédit Agricole 35 LIQUIDITY €685 Group’s liquidity No credit line In ad
Slide 26: Appendices
| Ia APPENDICES ~
Slide 27: Revenue split by region and division
FY 18 FY 18 27% 44% Europe, Middle- 23% North 24% East & Africa 24% America DVD Services FY 17 55% 57% FY 17 8% 53% 12% Connected Home Asia-Pacific 16% 18% 20% 1% Production 17% Services 1% Latin America Corporate and Other 27
Slide 28: Thank you
THANK YOU technicolor FEEL THE WONDER