Slide 1: July 2019
J u l y 2 0 1 9 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: First half results summary
First half REVENUES are broadly in line with ADJUSTED EBITDA (excl. IFRS 16) is down versus 2018 last year driven by Connected Home and one-off strong licensing revenues in the first half 2018 while Entertainment Services is flat RECURRING EBITA decline reflects the lower FCF at €(297) million resul
Slide 4: Production Services revenues and highlights
Revenues (inSeries € million) 1 @ Current rate REVENUE HIGHLIGHTS: ► REVENUE UP C.10% YOY AT CONSTANT RATE Record-breaking revenue performance with strong double-digit revenue growth in Film and Episodic VFX driven by increased volume from MPC Film and Mr. X as well as a strong contribution from M
Slide 5: Entertainment Services (DVD) revenues and highlights
Revenues (in € million) @ Current rate Series 1 REVENUE HIGHLIGHTS: ► H1 REVENUE DECLINE OF C. 6% AT CONSTANT RATE ► VOLUMES DOWN C.11% YOY DRIVEN BY: Greater than expected resiliency for Standard Definition DVD Weaker first quarter 2019 theatrical box office and high comparison basis in 2018 38
Slide 6: Connected Home revenues and Adjusted EBITDA
Revenues (in € million) Title @ Current rate REVENUE HIGHLIGHTS: 1,003 ► DOWN C. 7% YEAR-ON-YEAR 953 460 ADJ. EBITDA HIGHLIGHTS: Broadband 577 ► YEAR-ON-YEAR DECLINE OF €6 MILLION AT CONSTANT RATE 543 Video 376 UNDISPUTED WORLDWIDE LEADER OF THE BROADBAND GATEWAY ACCESS MARKET H1 2018 H1 2019 TRANSF
Slide 7: Second half outlook and group priorities
Investments in organic growth SPECIFICALLY, will continue in well-defined areas THE GROUP WILL: The Group’s profitability and cash Improve margins and Take advantage of the first flow generation in the second half cashflow generation in major customer contract will improve significantly PRODUCTION S
Slide 8: Key financial figures
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Slide 9: Production Services financial detail
(*) Risk, litigation and warranty reserves (**) For comparability figures are presented excluding IFRS 16 impacts and amounts for the six months ended June 30, 2018 are re-presented to reflect the impacts of Discontinued Operations 9
Slide 10: Adjusted EBITDA H1 2019 vs. H1 2018
Adjusted EBITDA H1 2019 vs. H1 2018, in € million (18.1)% 11 (13) 4 2 73 62 57 60 EBITDA H1 2018 Remaining R&I EBITDA H1 2018 @ Business EBITDA H1 2019 @ Forex impact EBITDA H1 2019 @ as published PL CR Performance LYR CR at iso-perimeter 10
Slide 11: Entertainment Services H1 results
H1 vs. LY vs. LY 2019 2018 at constant rate (a) Forex impact (b) (c=a+b) Entertainment Services Current rate LY rate Current rate Current rate LY rate in € million Revenues 802 770 756 +46 +6.1% (32) +14 +1.8% Ajusted EBITDA 56 54 55 +2 +3.0% (2) (0) (0.3)% in % of Revenues 7.0% 7.1% 7.2% (*) D&A &
Slide 12: Connected Home H1 results
H1 vs. LY vs. LY 2019 2018 at constant rate (a) Forex impact (b) (c=a+b) Connected Home Current rate LY rate Current rate Current rate LY rate in € million Revenues 953 928 1,003 (49) (4.9)% (25) (74) (7.4)% Ajusted EBITDA 20 19 26 (5) (21.4)% (1) (6) (24.7)% in % of Revenues 2.1% 2.1% 2.5% (*) D&A
Slide 13: Group H1 P&L from Adjusted EBITDA to EBIT
H1 vs. LY vs. LY 2019 2018 at constant rate (a) Forex impact (c=a+b) (b) in € million Current rate LY rate Current rate Current rate LY rate Adjusted EBITDA 62 60 73 (11) (2) (13) D&A & Reserves (*) w/o PPA amortization (110) (107) (82) (28) +3 (25) Recurring EBITA (48) (48) (9) (39) +1 (38) PPA amo
Slide 14: Group financial statements
(*) For comparability figures are presented excluding IFRS 16 impacts and amounts for the six months ended June 30, 2018 are re-presented to reflect the impacts of Discontinued Operations 14
Slide 15: IFRS 16 mechanics and impacts
H1 Impacts by business division IFRS 16 MECHANICS: H1 19 at CR (m€) EBITDA EBITA P&L Net Debt All leases are booked as finance leases with the following Connected Home 4 0 0 15 consequences: Production Services 17 2 -4 169 - Lease expenses are replaced by an amortization Home Entertainment 17 1 -2 6
Slide 16: Free cash flow bridge H1 2018 to H1 2019
FCF H1 2018 PL retained FCF H1 2018 EBITDA Net Net ∆ WC/OAL ∆ WC/OAL Pensions FCF H1 2019 Forex FCF H1 2019 as published contracts R&I at iso-perimeter ADJ Capex Restructuring 2018 2019 Financial Tax and Other @LYR impact @CR (137) (130) (150) +4 +10 (13) (58) (14) +9 (293) (297) (297) (188) Changes
Slide 17: Net debt evolution
(226) January FCF New cash June 30th (in € million) 1st 2019 Continuing CF Disco from Debt Others 2019 291 Cash (297) (9) position 85 65 (6) New debt from Others cash 85 17 Gross Nominal Debt 1 029 1 130 +101 Net debt at Nominal 738 1065 value 17
Slide 18: Liquidity at June 30, 2019
Working capital and operating Liquidity at June 30, Available amount needs met by cash and credit lines 2019 (in € million) Cash on hand at June 30, 65 2019 Cash on hand of €65 million Committed credit facilities: Technicolor SA Revolving Credit Facility (€250m 150 Committed credit lines of €360 mil
Slide 19: Debt structure
In € million Nominal IFRS June 30, 2019 December 31, 2018 Type Curr. Rate Formula Maturity Rate Rate Nominal IFRS Nominal IFRS Term Loan USD Libor w/ floor of 0% + 2.75% Dec-23 5.27% 5.38% 258 257 258 257 Term Loan EUR Euribor w/ floor of 0% + 3.00% Dec-23 3.00% 3.10% 275 274 275 274 Term Loan EUR E
Slide 20: Debt amortization schedule
Debt Amortization schedule In € million 974 113 23 14 6 2019 2020 2021 2022 2023 (*) Excluding operating lease debt 20
Slide 21: Appendices
APPENDICES |
Slide 22: Group profile: revenue by region and segment
GROUP PROFILE — REVENUE H1 2019 REVENUES BY REGION H1 2019 REVENUES BY SEGMENT 42% ‘North America 54% Connected Home 48% 19% 20% Latina America Corporate and Other
Slide 23: Debt including IFRS 16 lease liabilities
In € million Nominal IFRS June 30, 2019 December 31, 2018 Type Curr. Rate Formula Maturity Rate Rate Nominal IFRS Nominal IFRS Term Loan USD Libor w/ floor of 0% + 2.75% Dec-23 5.27% 5.38% 258 257 258 257 Term Loan EUR Euribor w/ floor of 0% + 3.00% Dec-23 3.00% 3.10% 275 274 275 274 Term Loan EUR E
Slide 24: Financial covenants
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 25: Thank you
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