Transcription

July 28th, 2022technicolor.com

FORWARD LOOKING STATEMENTSThis presentation contains certain statements that constitute "forward-looking statements”, including but not limited tostatements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions orwhich do not directly relate to historical or current facts.Such forward-looking statements are based on management's current expectations and beliefs and are subject to anumber of risks and uncertainties that could cause actual results to differ materially from the future results expressed,forecasted or implied by such forward-looking statements.For a more complete list and description of such risks and uncertainties, refer to Technicolor’s filings with theFrench Autorité des Marchés Financiers.2021 Universal Registration Document (Document d’enregistrement universel) has been filed with theFrench Autorité des marchés financiers (AMF) on April 5, 2022, under number D-22-0237, and anamendment to the 2021 URD has been filed with the AMF on April 29, 2022, under number D-22-0237-A01.

KEY H1 HIGHLIGHTSREVENUES (in million)FCF (before interest and tax, in million)Adjusted EBITDA (in million) 1,601m 8.8%[email protected] constant rate 1,352m 30.7%[email protected] constant rateMargin up [email protected] constant 3.7%Corporate & OtherConnected HomeVantiva Supply Chain ServicesTechnicolor Creative Studios4C3 - Restricted Natixis(215)5640H1 2022(35) 94m408295H1 2021%margin8.4% 180m2833.6% 134m(13)(12)H1 2021H1 2022H1 2021H1 20222021 and 2022 financial results include IFRIC interpretation on Saas implementation cost as well as Trademark Licensing operations accounted for as of discontinued operations as from January 1 st, 2021

2022 GUIDANCE CONFIRMEDguidanceconfirmed Revenues from continuing operations are expected to grow Adjusted EBITDA from continuing operations of 361m Adjusted EBITA from continuing operations of 161m FCF(1) from continuing operations of 217m Run-rate cost savings target of 325m by 2022, with 116mand 171m delivered in 2021 and 2020 respectively, and 30min H1 2022(1) Before financial results and tax. Free cash flow defined as: Adj. EBITDA – (net capex restructuring cash expenses change in pension reserves change inworking capital and other assets & liabilities cash impact of other non-current result)5C3 - Restricted NatixisAs presented on May 5th, 2022 the 2022 guidance for Technicolor group assumes external macroeconomic assumptions, including a EUR/USD exchange rate of 1.15,EUR/CAD of 1.52, EUR/GBP of 0.89. It also includes management assumption reflecting the IFRIC interpretation on Saas adjustment, excludes Trademark Licensingoperations, and does not include the TCS spin-off

SPIN OFF OF TCS AND REFINANCING:ENVISAGED TRANSACTION TIMELINE 375m VANTIVA privatedebt securedLaunch of marketing for the 600m TCS Term LoanIntention to list 65%of TCSMay 6thEarlyJuneIf spin-off approved: conversionof Mandatory Convertible Notesinto Technicolor sharesListing and distribution of TCSsharesTechnicolor SAOGM/EGMJune 14thJune 30thSept. 6thTechnicolor’sshareholders to receiveentitled to the distributionRefinancing ofTechnicolor’s existingdebt, 2 years in advanceof maturity6C3 - Restricted NatixisEGM approvingissuance of theMandatory ConvertibleNotesCapital Markets DayShareholders’ meeting toapprove spin off andchange in corporatename Refinancing of the entire existing debt is finalized Appointment of the leadership teams for the two new entities announcedBy end ofQ3Q3’202222

COMPLETION OF THE REFINANCINGNEW DEBT STRUCTURERefinancing of our debt taking advantage of the end of the non-call in July2022, reduce cost of debt, and facilitate the execution of the spin off 300m unsecured reserved Mandatory Convertible Notes (‘MCN’) fully subscribed MCN authorized by the shareholders on May 6th, 2022 Commitment of 375m private debt for VANTIVA 623m debt at Technicolor Creative Studios7C3 - Restricted Natixis 375m debt package committed byAngelo Gordon and Barclays 623m debt with a 563m tranche anda USD60m tranche Advanced discussion on the extension ofthe Wells Fargo Asset-Based Lending(ABL) Facility 40m Revolving Credit FacilityIMPLEMENTATION OFTWO DISTINCTFINANCING PACKAGESfor Technicolor CreativeStudios and VANTIVArespectively

TCS GOOD FIRST HALF 2022IN PRODUCTION ON 20 THEATRICAL AND 35 STREAMING / LEFFECTSCÉSAR111NOMINAT I ONW I NW INOUT OFOUT OF3 NOMINATIONS 3 NOMINATIONSIN PRODUCTION IN 2022: 6FEATURES AND SEVERAL EPISODICSERIES, INCLUDING A NEWCOLLABORATION WITH NETFLIX ONTHEIR UPCOMING ANIMATED EVENTSERIES: CHARLIE AND THECHOCOLATE FACTORY9C3 - Restricted NatixisCONTRIBUTION TO APPROX.1,900 PROJECTS DURING H1Mastercard’s ‘What’sPriceless to You?’Samsung’s ‘TheSpider and theWindow’Pepsi –Super BowlHalftime Trailer ‘TheCall’Samsung ‘Playtime is ESLIONS624W I N SOUT OF13 NOMINATIONSW I N SOUT OF6 NOMINATIONSW I N SBURBERRY, VERIZON AND SAMSUNG CONTINUE TO GENERATEINDUSTRY ACCOLADES FOR VFX AND CGICONTINUING WORK WITH SEVERAL AAA GAMESCOMPANIES. H1 RELEASED TITLES INCLUDEUBISOFT’S TOM CLANCY’S RAINBOW 6EXTRACTION AND 2K SPORTS’ WWE 2K22

TCS FINANCIAL PERFORMANCE: STRONGDEMAND FOR CONTENT2022 OUTLOOKDemand for TCS VFX and Animation services continuesto grow significantly throughout 2022H1 2022REVENUES (in million)ADJUSTED EBITDA (in million)EBITDA MARGIN (in %) MPC and Mikros Animation: Multiple new projects awarded for Film & Episodic VisualEffects and Animation: 85% of 2022 pipelinecommitted Growth of number of feature animation projects inproduction: from 2 in 2019 to 6 in 2022 29.6%@ constantrate 38.3%@ currentrate The Mill: activity growth is being restricted by the15.0%408current global macroeconomic environment. As aresult, The Mill is now expecting slower growth thaninitially anticipated13.7%2956140H1 2021H1 2022REVENUE UP 43.7% VS.H1’21 AT CONSTANT RATEAND PERIMETER:10C3 - Restricted NatixisH1 2021 Significant demand fororiginal content Slowdown in advertisingspending in Q2’22 due tomacroeconomicconditions Technicolor Games: demand for games content is [email protected] constantrateexpected to continue growing along with theexpansion of the Technicolor Games serviceofferingH1 2022IMPROVED EBITDA MARGINS:ACTION PLANS IN PLACE: Higher revenues Positive impact of multipleoperational transformationprogramsTo accelerate recruitingand training plan Margin negatively impacted by:At The Mill and at MPC,actions to mitigate theimpact on margin havealready been identifiedand initiated relating tocosts and operationalefficiencies Higher cost to complete major projectscaused by shortage of experienced talentin the market at MPC Lower revenues at The Mill Significant investment in artist recruitment,retention, and training continues, as delivering allpipeline projects remains the main challenge for2022, as a consequence of the shortage of talent inthe market

CONNECTED HOME IN H1 2022: SIGNIFICANT BUSINESS PROGRESSLEVERAGING OPEN ANDINNOVATIVETECHNOLOGIES FORNETWORK SERVICEPROVIDERSSIGNIFICANT BROADBAND MARKET DEMANDDESPITE CONTINUING SUPPLYCONSTRAINTSIncreased share of broadband inConnected Home revenuesWi-Fi 6/6E: availability of Cobra 5Goptimizing 5G ACCESS to thehomeH1 2022Partnership with Telstra to deploySmart Modem 3 to ensure reliablebroadband access and In-Homewireless connectivity in AustraliaH1 202123%36%Partnership with BouyguesTelecom to develop the Bbox 4KHDR64%77%ECOVADIS CSRTechnicolor has committed to climate change Science BasedTargets, and is the only company in the connected home industrythat has signed the 2050 Net-Zero Standard11C3 - Restricted NatixisVideoBroadband

CONNECTED HOME:FINANCIAL PERFORMANCEH1 2022: CONTINUING CHALLENGING ENVIRONMENT BUTEFFICIENTLY MANAGEDREVENUES (in million)ADJUSTED EBITDA (in million)EBITDA MARGIN (in %) 5.8%2022 OUTLOOK Demand for Connected Home broadbandboxes is expected to remain strong Although we start to see first signs [email protected] constantrate 0.6pp 16.4%@ current rate7.8%7.2% Efficiency measures897770 Progressive improvements in 14.4%56improvements, shortage in componentsdelivery and pricing challenges to continuein 2022, to be compensated by:@ constantrate70delivery Constant discussions withsuppliers and customersH1 2021REVENUE UP:EBITDA MARGIN UP 0.6PP: Worldwide component crisis, andsupply chain bottlenecks, limitedour ability to serve the demandfrom customers, although Q2benefited from first signs ofimprovement Increased broadband share inrevenue12C3 - Restricted NatixisH1 2021H1 2022Operating efficiencies andcost savingsH1 2022THE DIVISION CONTINUESITS COLLABORATION WITHCLIENTS AND SUPPLIERS tooptimize deliveries, and mitigatefurther profitability and workingcapital impacts: significantportion of cost increase passedthrough to customers While we do not have any assets or directcustomers or suppliers in Russia andUkraine, the ongoing conflict hasgenerated additional uncertainty in termsof supply

VANTIVA SUPPLY CHAIN SERVICES (FORMER DVD SERVICES)H1 2022 COMMERCIAL SUCCESSES AND OPERATIONAL EFFICIENCIESNEW GROWTH BUSINESSES:DISC BUSINESSDISC VOLUMES BREAKDOWN (in m of units) Volumes down 30%ACTIVE, MULTIFACETED DIVERSIFICATIONAND GROWTH STRATEGYMICROFLUIDICS 3391677238New lab/capability in Poland beyond prototyping was nearingcompletion at the end of Q2. Microfluidic cartridge and medicaldevice engineering was accredited in Poland, having passed theEU IVDD standard audit (February 2021)VINYL1663CD246Blu-rayTM159 Contracts were executed with two of the world’s top 3 musiccompanies (Universal Music Group and Sony Music) Launched commercial record pressing in May 2022 Achieved high quality recognition from the industry Expanded capacity to continue through the balance of the year(new equipment delivery and capability increasing each month)SD-DVDSUPPLY CHAIN/FULFILMENT/TRANSPORTATIONH1 2021H1 2022DVD SERVICES CONTINUED TO ADAPT DISTRIBUTION ANDMANUFACTURING OPERATIONS, AND RELATED CUSTOMER CONTRACTAGREEMENTS, IN RESPONSE TO CONTINUED VOLUME REDUCTIONS13C3 - Restricted Natixis Continued new customer additions driving supply chain/fulfilment growth in the first half 2022 Significant year-over-year growth in the freight brokeragebusiness, due to the addition of new customers and increasedpenetration of existing customers

VANTIVA SUPPLY CHAIN SERVICESIN H1 2022H1 2022: SHOWING THE RESULTS OF OUROPERATIONAL RESTRUCTURINGREVENUES (in million) 4.5%2022: OUTLOOKADJUSTED EBITDA (in million)EBITDA MARGIN (in %)-3.2%@constantrate 1.6pp2835.2% Continuing cost3.6%296 Solid new releasevolumes to be more thanoffset by lower catalogvolumes, driven byevolving customer andretailer [email protected] current rateefficiencies15 Plan to accelerate the10H1 2021REVENUES UP: Lower disc volumes,partly offset by: Growth in transportationmanagement and vinyl Disc price increase Pass through14C3 - Restricted NatixisH1 2022H1 2021H1 2022EBITDA AND EBITDA MARGINIMPROVEMENT: Significant footprint optimization Cost savings Higher non-disc activity Offset by the impacts of lowerdisc volumes and higher laborcostsCONTINUOUSIMPROVEMENT of distributionand manufacturing operationsand related customer contractagreementsdiversification of thebusiness: continuouswork to significantlyexpand non-discactivities

KEY FIGURES H1 2022 – GROUPH1 2022vs. H1 2021Forex impactvs. H1 2021at constant rate(a)(b)(c a b)H1 2021(in million)Current rateLY rateLY rateRevenues1,6011,4711,352 249 18.4%(129) 119 8.8%Adjusted EBITDA13412294 40 43.1%(12) 29 30.7%in % of Revenues8.4%8.3%6.9%D&A (1) & Reserves (2) w/o PPA amortization(86)(79)(84)(2)ns 6 4ns484310 38ns(5) 33nsPPA amortization(20)(18)(19)(2)(8.9)% 2 0 0.6%Non-recurring items(20)(19)(3)(17)ns 1(16)ns85(11) 19ns(3) 17nsNet Result Continuing(77)(76)(84) 8 8.9% 1 9 10.1%Net Result Discontinued63635 58ns(0) 58nsNet Result Group (Group share)(14)(13)(79) 65 82.6% 1 66 83.6%Adjusted EBITDA13412294 40 43.1%(12) 29 30.7%Capex(57)(52)(40)(16)(39.8)% 4(12)(29.0)%Non-recurring items (cash impact)(37)(36)(57) 20 35.7% 1 21 37.1%(1)(76)(71)(211) 135 63.8% 5 140 66.3%FCF before Financial & Tax(35)(37)(215) 180 83,5%(1) 178 82.9%FCF after Financial & Tax(89)(88)(257) 168 65.3% 1 169 65.7%(1,141)(1,117)(1,096)(45)(4.1)%Adjusted EBITAEBITWC-OAL variationNet Debt (IFRS)(1)Current rateLY rateIncluding IT capacity use for rendering in Technicolor Creative Studios of (4)m in H1 2022 and 0m in H1 2021(2) Risk,litigation and warranty reserves162021 and 2022 financial results include IFRIC interpretation on Saas implementation cost as well as Trademark Licensing operations accounted as for discontinued operations as from January 1st, 2021C3 - Restricted Natixis

GROUP PROFILEREVENUE EVOLUTIONH1 2022 REVENUES BY SEGMENTREVENUE INCREASE 18.4% AT CURRENT EXCHANGE RATE 8.8% AT CONSTANT EXCHANGE RATE 11.2% AT CONSTANT EXCHANGE RATE AND CONSTANT PERIMETERH1 2022 REVENUES 1,601m-312945116-9- 29H1 2022Corporate &Other0%Vantiva SupplyChain Services19%0%TCS25%1 60122%21%1 352H1 2021ConnectedHome56%17C3 - Restricted Natixis57%H1 2021revenuesIn millionTechnicolorCreativeStudiosVantiva SupplyChain ServicesConnectedHomeScope (PostProduction)ForexCorporate &OtherH1 2022revenues

ADJUSTED EBITDABRIDGE VS. H1 2021EBITDA BY SEGMENTEBITDA GROWTHAdjusted EBITDA (in million) 30.7% at constant rate 30.7%@ constant rateMargin [email protected] constant rate%margin6.9%% 134m margin8.4% 94m8707.8%5615134161225.2%61H1 202115.0%13.7%18121040C3 - Restricted Natixis1947.2%3.6%4(13)(12)H1 2021H1 2022In ivaSupply ChainServicesCorporateand OtherH1 2022 at Forex impactconstant rateH1 2022

FROM ADJUSTED EBITDA TO EBIT IN SUMMARYH1 2022in millionForex impact(b)vs. H1 2021at constant rate(c a b)LY rateLY rateCurrent rateAdjusted EBITDA13412294 40(12) 29D&A(1) & Reserves(2) w/o PPA amortization(86)(79)(84)(2) 6 4Adjusted EBITA484310 38(5) 33PPA amortization(20)(18)(19)(2) 2 0Impairments & write-off(3)(3)(2)(1) 0(1)Restructuring(8)(7)(26) 18 0 18Other Non-Current(9)(9)25(34) 0(34)EBIT Continuing85(11) 19(3) 17Including IT capacity use for rendering in Technicolor Creative Studios of (4)m in H1 2022 and 0m in H1 2021(2) Risk,19vs.H1 2021(a)Current rate(1)C3 - Restricted NatixisH1 2021litigation and warranty reservesLY rate

FROM EBIT TO NET RESULT GROUPH1 2022in millionForex impact(b)vs. H1 2021at constant rate(c a b)LY rateLY rateCurrent rate85(11) 19(3) 17(71)(69)(61)(10) 2(8)66(2) 7 1 8Net financial result(65)(63)(63)-2 2-Profit before Tax(58)(58)(74) 17(0) 17Tax(19)(18)(10)(9) 1(8)Net Result Continuing(77)(76)(84) 8 1 9Net Result Discontinued63635 58(0) 58(14)(13)(79) 65 1 66Net Interest ExpenseOther FinancialNet Result Group (Group share)20vs. H1 2021(a)Current rateEBIT ContinuingC3 - Restricted NatixisH1 2021LY rate

FREE CASH FLOW FROM CONTINUING OPERATIONSFREE CASH FLOW FROM CONTINUING OPERATIONS: H1 2022 VS. H1 2021(88)(4)(257)(1)(8)(12)TaxPensionsand Other(89)(1) 143 33 29(12)FCF H1 2021as publishedEBITDAADJNetCapexNetRestructuring WC/OALRendering 169mIn million21C3 - Restricted NatixisFinancialFCF H1 [email protected] H1 [email protected]

LIQUIDITY AND DEBTLiquidity at June 30, 2022 ( m)Amount of creditlineAvailable creditline*Drawn amountCash on handAvailable amount168at June 30, 2022Committed credit facilities:Wells Fargo credit line ( 125m)12048 mNominal AmountIFRS AmountTotal Gross Debt1,3731,309Cash and Cash Equivalents(168)(168)1,2051,141Total Net debt* The availability of this credit line varies depending on the amount of receivablesC3 - Restricted Natixis48 216mLiquidity220 39m used at June 30,2022 on CH-France’s 40m committed factoringlineNet Debt / EBITDA ratio

TECHNICOLOR CREATIVE STUDIOS H1 2022PROFITABILITYvs. H1 2021H1 2022Technicolor Creative Studios(c a b)LY rateLY rateRevenues408382295 113 38.3%(26) 87 29.6%Adjusted EBITDA615740 21 51.3%(4) 16 40.3%in % of Revenues15.0%14.8%13.7%D&A(1) & Reserves(2) w/o PPAamortization(35)(33)(35)(0)(0.4)% 2 2 5.8%Adjusted EBITA26246 21ns(2) 18nsPPA amortization(4)(4)(4)nsns 0nsnsNon-recurring items(4)(4)3(6)ns(0)(6)nsEBIT18164 14ns(2) 12ns(1)Current rateLY rateIncluding IT capacity use for rendering in Technicolor Creative Studios of (4)m in H1 2022 and 0m in H1 2021(2) Risk,24at constant rateForex impact(b)Current ratein millionC3 - Restricted NatixisVs. H1 2021(a)H1 2021litigation and warranty reserves

CONNECTED HOME H1 2022 PROFITABILITYvs. H1 2021H1 2022Connected Home(c a b)LY rateLY rateRevenues897815770 126 16.4%(82) 45 5.8%Adjusted EBITDA706456 14 25.1%(6) 8 14.4%in % of Revenues7.8%7.8%7.2%D&A & Reserves (1) w/o PPAamortization(32)(29)(27)(6)(21.2)% 3(3)(10.4)%Adjusted EBITA373429 8 28.6%(3) 5 18.0%PPA amortization(12)(10)(10)(1)(9.6)% 1 0 0.7%Non-recurring items(2)(2)(3) 1 26.2% 0 1 41.0%EBIT242215 8 53.1%(2) 7 43.2%(1)25at constant rateForex impact(b)Current ratein millionC3 - Restricted Natixisvs. H1 2021(a)H1 2021Risk, litigation and warranty reservesCurrent rateLY rate

VANTIVA SUPPLY CHAIN SERVICESH1 2022 PROFITABILITYvs. H1 2021H1 2022Vantiva Supply Chain Services(c a b)LY rateLY rateRevenues296274283 13 4.5%(22)(9)(3.2)%Adjusted EBITDA151410 5 49.5%(1) 4 34.8%in % of Revenues5,2%5,0%3,6%D&A & Reserves (1) w/o PPAamortization(16)(14)(20) 5 22.6% 1 6 29.3%Adjusted EBITA(1)(1)(10) 9 94.9%(0) 9 93.6%PPA amortization(4)(4)(4)(0)(9.3)% 0 0 0.8%Non-recurring items(3)(3)(16) 13 81.9% 0 13 83.4%EBIT(8)(7)(30) 22 74.2% 1 23 75.9%(1)26at constant rateForex impact(b)Current ratein millionC3 - Restricted Natixisvs. H1 2021(a)H1 2021Risk, litigation and warranty reservesCurrent rateLY rate

DEBT STRUCTURE AS OF JUNE 30, 2022In million currencyCurrencyNew Money NotesEUR371378FloatingNew Money Term LoansUSD126128Reinstated Term LoansEURNominal AmountIFRS Amount467Type of rate411Final maturityMoodys / S&P rating12.00%(2)BulletJun. 30, 2024Caa1/BFloating12.45%(3)BulletJun. 30, 2024Caa1/BFloating6.00%(4)BulletDec. 31, 2024Caa3/CCCFloating7.04%(5)BulletDec. 31, 12212Fixed8.96%Accrued InterestAccrued PIKOther DebtCash & Cash equivalentsTotal Net (168)(168)1,2051,141Various(1) Rates as of June 30, 2022.(2) Cash interest of 6-month EURIBOR with a floor of 0% 6.00% and PIK interest of 6.00%.(3) Cash interest of 6-month USD LIBOR with a floor of 0% 6.00% and PIK interest of 6.00%.(4) Cash interest of 6-month EURIBOR with a floor of 0% 3.00% and PIK interest of 3.00%.(5) Cash interest of 6-month USD LIBOR with a floor of 0% 2.75% and PIK interest of 3.00%(6) Of which 26 million are capital leases and 186 million is operating lease debt under IFRS 16278.88%EUR USDTotal Gross Debt(1)Repayment TypeReinstated Term LoansLease Liabilities(6)C3 - Restricted NatixisNominal rate8.52%

C3 - Restricted Natixis

Targets, and is the only company in the connected home industry that has signed the 2050 Net-Zero Standard Increased share of broadband in Connected Home revenues 36% 64% 23% 77% Video Broadband H1 2022 H1 2021