PRESS RELEASE
Full Year
2020 results
Technicolor exceeds its 2020 guidance and
remains on track to meet its 2022 guidance
Paris (France), 11 March 2021 –
Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) is today
announcing its results for the full year 2020.
Richard Moat, Chief Executive Officer of
Technicolor, stated:
“Technicolor has re-engineered its operations,
balance sheet and global footprint and has exceeded its guidance
for 2020. Connected Home beat the targets originally set before the
crisis began, but Production Services and DVD Services were hit by
the halting of activity in the film industry, and associated cinema
closures. However, overall the Group showed good resiliency in the
face of the pandemic. During 2020, significant structural changes
were implemented across all divisions, which saw a more than €165
million reduction in our cost base, combined with further
investment to improve our efficiency. In particular, Production
Services strengthened its capacity to serve its clients through
state of the art technologies and artistic expertise. Despite
persistent uncertainty relating to the pandemic, we are looking to
the future with confidence, and will continue to execute our
transformation program to deliver improved operational and
financial performance. In consequence, the Group issuing guidance
towards strong figures for 2021, and is maintaining previously
issued 2022 guidance.”
Full year 2020 results and forward
outlook – key highlights:
|
Second Half |
Full Year |
|
In € million |
2019 |
2020 |
At current rate |
At
constant rate |
2019 |
2020 |
At current rate |
At
constant rate |
|
|
Revenues from continuing operations |
2,036 |
1,573 |
(22.7)% |
(17.9)% |
3,800 |
3,006 |
(20.9)% |
(18.5)% |
|
Adjusted EBITDA from
continuing operations |
222 |
115 |
(48.3)% |
(44.9)% |
324 |
167 |
(48.5)% |
(46.0)% |
|
As a % of revenues |
10.9% |
7.3% |
|
|
8.5% |
5.6% |
|
|
|
Adjusted EBITA from
continuing operations |
87 |
11 |
(86.9)% |
(85.8)% |
42 |
(56) |
ns |
ns |
|
Free Cash Flow from continuing operations before
Tax & Financial |
202 |
118 |
(41.5)% |
(44.6)% |
(8) |
(124) |
ns |
ns |
|
In 2020 Technicolor successfully
achieved a major balance sheet financial restructuring, and the
implementation of a significant business
transformation:
- Liquidity as at December 31, 2020 of €432 million,
consisting of €330 million cash on balance sheet and €102 million
of fully undrawn committed credit lines;
- Nominal net debt as at December 31, 2020 reduced by
€340 million following the completion of the financial
restructuring, with a net debt to adjusted EBITDA (including op.
leases) ratio of 5.37;
- Significant momentum established in improving
operations, profitability and cash generation, ultimately creating
value for all stakeholders;
- Management team renewed, and their incentives realigned
to value creation for the company in the short and medium
term.
As a result, and despite the successive
waves of the pandemic crisis which were not anticipated at the time
of the financial restructuring, Full Year 2020 results are ahead of
previously communicated guidance:
- EBITDA of €167 million (including IFRS 16), is better
than expected and has more than doubled from €53 million in the
first half to €115 million in the second half;
- Permanent cost savings of €171 million;
- 2020 EBITA of €(56) million, better than the €(64)
million expected;
- Continuing free cash flow (before financial results and
tax) of €(124) million in line with guidance, showing a strong
improvement in the second half with an inflow of €118 million
despite absorbing around €(90) million of supplier payment
term reductions.
The Group’s businesses demonstrated
operating resilience to the Covid-19 crisis. Nonetheless, revenue
generation in some of our activities has been significantly
impaired as a result of sanitary restrictions around the
world:
- Production Services activities were significantly
impacted by the pandemic, with revenues down 41% at constant rate
year-on-year due to the halting of live action shooting at the end
of the first quarter. The decline in Film and Episodic
Visual Effects and Post Production was, however, partially
mitigated by increased demand in Animation, and resilience in
Advertising which achieved the same EBITDA as in 2019 despite lower
revenues.
- Connected Home delivered a strong year with a standout
performance in North America, exceeding the original targets set
before the pandemic and maintaining its market leadership. Adjusted
EBITDA grew 46.7% at constant rate, as a result, EBITDA margin
expanded from 4.0% to 6.2%, highlighting the positive impact of the
cost restructuring measures. 2020 EBITA of €41 million was almost
twice 2019 EBITA of €23 million.
- DVD Services performed well in a difficult environment.
2020 EBITA reached break-even compared to a loss of €(6) million in
2019, illustrating the positive impact of successful contract
renewals and aggressive transformation actions. This was
achieved despite a decrease in revenue of (19)% at constant rate
year-on-year, impacted by the lack of new film releases following
theaters closures, but partly compensated by resilient back catalog
demand.
While uncertainty linked to the pandemic
remains, the Group is focused on continuing the execution of its
transformation program, which has gained significant momentum in
2020. 2021 and 2022 will be years of substantial financial
improvement. Taking into account the impact of foreign exchange
fluctuations and the change in Group perimeter as a result of the
sale of Post Production1, the Group is today adapting its 2022
guidance, and providing 2021 guidance of:
- Revenues from continuing operations stable vs.
2020;
- Adjusted EBITDA2 of around €270
million (incl. IFRS 16), a very significant improvement from €167
million achieved in 2020;
- Adjusted EBITA of around €60 million;
- Continuing free cash flow (before financial results and
tax) at around breakeven;
- Net debt to EBITDA covenant ratio should reduce to
below 4X level at 2021 year end.
Full Year 2020 key indicators from
continuing operations
- Revenues of €3,006 million were down (18.5)% at constant rate,
including a decrease in Production Services of (41)%, primarily
driven by lower revenue in Film & Episodic Visual Effects, and
lower volumes in DVD Services (19)%. Connected Home showed
resiliency with a reduction of only (8)% thanks to the buoyant
activity in North America (+16%), mitigating a lower
performance from Eurasia.
- In 2020, the Group realized €171 million of cost savings, in
line with its target.
- Adjusted EBITDA of €167 million was down 46% at constant rate.
This reflects operational and financial improvements across all
activities, particularly in Connected Home, a decline in Film &
Episodic Visual Effects mainly driven by cessation of live action
shooting, and lower business volumes in DVD Services. EBITDA during
the second half more than doubled versus the first half reflecting
a strong profitability increase in DVD Services and Production
Services (primarily due to cost restructuring actions).
- Adjusted EBITA of €(56) million was lower by €(98) million at
current rate, as a result of the EBITDA decrease mitigated by lower
depreciation & amortisation and reserves.
- Non-current assets impairment charge of €75 million mainly
related to DVD services goodwill impairment due to revised
Covid-related assumptions.
- Restructuring costs accounted for €(100) million at current
rate, including €(33) million in DVD Services, mainly resulting
from optimization of distribution sites, €(27) million in
Production Services on cost streamlining actions, €(31) million in
Connected Home pursuant to the three-year transformation plan, and
€(9) million for Corporate and Other.
- Free cash flow3 (before financial results and tax) from
continuing operations of €(124) million was lower by €(116)
million, despite a significant improvement in Connected Home
operational performance, and the ongoing implementation of our cost
transformation program. Following entry into the Accelerated
Financial Safeguard procedure, a faster than expected reduction of
payment terms was requested by suppliers, which led to €(35)
million of payments being advanced from 2021 to 2020.
- Net debt at nominal value amounts to €897 million, and IFRS net
debt amounts to €812 million. The difference mainly relates to the
mark-to-market debt valuation on issuance, and will be reversed
through non-cash interest charges over the life of the debt.
Outlook
- Film & Episodic VFX activities are seeing a significant
improvement in the forward pipeline, and demand for Connected Home
broadband products remain high, despite the extended lockdowns
affecting the Group’s trading environment.
- DVD Services and Advertising revenues are expected to take
longer to recover.
- Component supply constraints are also expected to affect
Connected Home activities. To address this, Technicolor has already
engaged in commercial discussions in order to pass surcharges
through to customers.
- In Production Services, the work secured for 2021 is in line
with the strong level of activity in 2019. Production Services has
been awarded several new major projects, already securing 75%+ of
its expected 2021 sales pipeline for Film & Episodic Visual
Effects and Animation & Games. Confirmed projects for 2021
include Disney’s live-action adaptations of The Little Mermaid and
Pinocchio, and its recently announced The Lion King
prequel.
- The Group will continue to improve efficiency and productivity
throughout the period, and is now targeting a total of €325 million
in run-rate cost savings by 2022, an increase of €25 million
compared to the previous announcement, despite a challenging
context.
- The Group’s ambition to normalize working capital dynamics by
2022 will be achieved as early as the end of the first quarter of
2021, without significant impact on the Group’s liquidity
needs.
- Technicolor will continue to significantly improve its EBITDA,
EBITA and FCF in 2021 and 2022 and, following the recent change in
perimeter (sale of Post Production) and the change in forex
assumptions, 2021 guidance and updated 2022 guidance areas
follows:
- In 2021:
- Revenues from continuing operations stable vs. 2020;
- Adjusted EBITDA of around €270 million;
- Adjusted EBITA of around €60 million;
- Continuing FCF before financial results and tax at around
breakeven;
- Net debt to EBITDA covenant ratio below 4X level at year end.
- In 2022:
- Adjusted EBITDA of €385 million;
- Adjusted EBITA of €180 million;
- Continuing FCF before financial results and tax at around €230
million.
Continuing Operations – post
IFRS 16 |
|
|
|
|
€ million, FYE
Dec post IFRS-16 |
2020e |
2021e |
2022e |
|
|
|
Adjusted EBITDA from continuing operations |
167 |
270 |
385 |
|
Adjusted EBITA from continuing operations |
(56) |
60 |
180 |
|
Continuing FCF before financial results and
tax |
(124) |
c.0 |
230 |
|
- The 2021 and 2022 objectives are calculated assuming constant
exchange rates.
- In 2022, the cumulated impacts of foreign exchange fluctuations
and change in Group perimeter as a result of the sale of Post
Production are €(40) million on Adjusted EBITDA and €(23) million
on Adjusted EBITA.
Perimeter Change
·Technicolor announced on
January 14, 2021 the disposal of its Post Production business (part
of Production Services) for €30 million. Closing is expected during
the first half of 2021. The sale of Post Production simplifies
Production Services’ portfolio of activities, and allows management
to increasingly focus on Production Services’ remaining core CGI
activities.
Management update in 2020
- As communicated during Technicolor’s third quarter results,
Christian Roberton was promoted to become President of the
Production Services business division.
- As also previously communicated, David Holliday was appointed
President of the DVD Services division.
Board composition
- As previously announced, the Board of Directors has appointed
as Board Observers:
- Bain Capital Credit, represented by Gauthier Reymondier,
Managing Director, European Portfolio Manager at Bain Capital
Credit based in London; and
- Angelo, Gordon & Co represented by Julien Farre, Managing
Director at Angelo Gordon in London.
Segment Review – Full Year 2020 Results
Highlights
|
Second Half |
Change HtH |
Full Year |
Change YoY |
Production
Services |
2019 |
2020 |
Reported |
At constant rate |
2019 |
2020 |
Reported |
At constant rate |
In €
million |
Revenues |
465 |
234 |
(49.6)% |
(47.0)% |
893 |
513 |
(42.5)% |
(41.4)% |
Adj. EBITDA |
84 |
16 |
(80.9)% |
(79.5)% |
164 |
18 |
(88.8)% |
(88.0)% |
As a % of revenues |
+18.1% |
+6.9% |
|
|
+18.3% |
+3.6% |
|
|
Adj. EBITA |
9 |
(27) |
ns |
ns |
28 |
(78) |
ns |
ns |
As a % of revenues |
+2.0% |
(11.5)% |
|
|
+3.1% |
(15.3)% |
|
|
- Production Services revenues
amounted to €513 million in 2020, down (41.4)% at constant rate and
(42.5)% at current rate year-on-year, driven mainly by
pandemic-related impacts on production in Hollywood and around the
world. The revenue decline was partially mitigated by double-digit
revenue growth at Mikros Animation and the launch of MPC Episodic
in early 2020.
- Adjusted EBITDA amounted to €18 million, down
€(144) million year-on-year at constant rate. Costs were
aggressively reduced to offset the €(370) million at constant rate
revenue decline in a high margin segment. This negative evolution
also impacted Adjusted EBITA compared to the prior year, partially
mitigated by lower cloud render costs. Advertising EBITA, despite a
sharp drop in its revenues linked to the pandemic, reached the same
level as in 2019, showing the positive impact of its transformation
activities on its margin.
2021 so far
seems to be witnessing a restart of activity in the VFX market. The
work already secured for 2021 is in line with our more successful
years, pre-pandemic, as the expanding demand for streaming content
matches or exceeds the continuing robust tentpole market.
Production Services has been awarded numerous new projects,
securing more than 75% of its expected 2021 sales pipeline for Film
& Episodic Visual Effects, and is in negotiations for several
more. Confirmed projects for 2021 include Disney’s live-action
adaptations of ‘The Little Mermaid’ and ‘Pinocchio’, and their
recently announced ‘The Lion King’ prequel. Focus has been placed
on achieving framework agreements with the major Hollywood studios
and significant streaming players, bringing more predictability of
revenues in the coming years, and establishing a presence in
locations such as Berlin so that we can service the need for
development of local content.
- Management and strategic changes
- Technicolor recently announced the appointment of Christian
Roberton as President of the Production Services Business Division.
His focus on technology, quality and creativity, combined with cost
efficiency, rigorous management and client orientation, will drive
Production Services to operate as a customer-focused,
technology-driven and highly profitable global studio.
- Christian has immediately implemented management changes, with
the aim of bringing forward creativity, business acumen, and
efficiency skills within his executive committee. Josh Mandel has
become CEO of The Mill, and Andrea Miloro recently joined the Group
to lead the Mikros Animation brand. Our portfolio is being
refocused on value-added VFX services, and Post Production
activities are no longer aligned with our strategic repositioning.
As a consequence, Technicolor announced on January 14, that
Streamland Media had agreed to purchase the Technicolor Post
business for €30 million. The sale, which is subject to customary
closing conditions, is expected to close during the first half of
2021.
- This move strengthens Technicolor’s ability to focus on and
expand its flagship creative studios (The Mill, MPC, Mr. X and
Mikros Animation) specializing in CGI (including VFX and
Animation), which is in increasing demand across film, TV,
advertising, gaming and live events.
- Successful transformation
To drive the transformation of Production
Services into an efficient creative production platform through a
relentless focus on improving profitability and streamlining
operations, the following actions have been launched:
- Harmonization of technology infrastructure to eliminate
inefficiencies from previously siloed operations (e.g. optimizing
storage and render farms across our data centers and
brands);
- Centralization of R&D efforts to ensure more efficient use
of resources (e.g. real time production technology that will impact
and benefit all Production Services businesses);
- Integration of our substantial talent pool in India under a
“One India” model to service all brands, optimize utilization, and
generate efficiencies of scale. This transformation program will
continue throughout 2021.
- Business Highlights
- Film & Episodic Visual Effects: revenues were significantly
lower year-on-year, mainly due to the impact of the pandemic on
live action film shoots and shifting release dates.
- VFX teams worked on approximately 25 theatrical films from the
major studios, including 2020 releases like The Call of the Wild
(Fox), The New Mutants (Fox), and Monster Hunter (Constantin
Film/Sony); and highly anticipated 2021 releases like Cruella
(Disney), Ghostbusters: Afterlife (Sony), Godzilla vs. Kong
(Legendary/Warner Bros.), Snake Eyes (Paramount), Top Gun: Maverick
(Paramount), and West Side Story (Amblin/Fox).
- And over 40 Episodic and/or Non-Theatrical (i.e. Streaming/OTT)
projects, including The Alienist: Angel of Darkness
(Paramount/TNT), Da 5 Bloods (Netflix), The Old Guard (Netflix),
Raised by Wolves (Scott Free Productions/HBO Max), and WandaVision
(Marvel/Disney+).
- During the year, MPC Film won the Oscar® and BAFTA awards for
visual effects for its work on Sam Mendes’ 1917 (Universal); and
Mr. X won an Emmy Award for Outstanding Special Visual Effects in a
Supporting Role for its work on Vikings
(MGM/History).
- Advertising: revenues were lower compared to the prior year due
to the impact of Covid-19 on client spend and live action
production shoots, particularly during the second quarter.
- Technicolor’s Advertising businesses continued to receive
numerous industry accolades in 2020 - MPC won VFX Company of the
Year at the Ad Age Creativity Awards and two VES (Visual Effects
Society) Awards for Hennessy ‘The Seven Worlds’, while The Mill was
awarded Creative Production Agency of the Year by More About
Advertising.
- Other notable projects during the year include the Dua Lipa
‘Hallucinate’ music video, Jeep ‘Groundhog Day’, Walmart ‘Famous
Visitors’, Burberry ‘Festive’, Chanel ‘N°5. Être Ce Qui Va
Arriver’, PlayStation ‘The Last of Us Part II’, Lexus International
‘Electrified’, EA Sports ‘FIFA 21’ reveal trailer, Epic Games
‘Unreal For All Creators’, and HBO ‘Lovecraft Country: Sanctum’ - a
three-part social VR experience for the highly acclaimed
series.
- At this year’s Super Bowl LV, The Mill and MPC worked on over
20 commercials, including those for Bud Light, Doritos, Michelob,
Paramount, Robinhood, Squarespace, Tide, and Uber Eats.
- Animation & Games: revenues were slightly higher versus
prior year.
- Mikros delivered Paramount’s The SpongeBob Movie: Sponge on the
Run in 2020, and is currently in production on three features,
including Spin Master’s PAW Patrol: The Movie and Paramount’s The
Tiger’s Apprentice.
- In episodic animation, Technicolor continues to work on
multiple projects for clients including Disney, DreamWorks
Animation, France Télévisions, M6, Nickelodeon, TF1, and Wild
Canary.
- Technicolor Games during the year completed its work on several
AAA titles like FIFA 21 (EA), NHL 21 (EA), Assassin’s Creed
Valhalla (Ubisoft), Destiny 2 (Bungie), NBA 2K21 (2K), Call of
Duty: Black Ops Cold War (Activision), and Immortals Fenyx Rising
(Ubisoft).
- Post Production: lower revenues compared to the prior year,
driven primarily by the pandemic’s impact on productions.
- Selected highlight feature film projects during 2020 include
Minions: The Rise of Gru (Illumination/Universal), The SpongeBob
Movie: Sponge on the Run (Paramount), West Side Story (Amblin/Fox),
Borat Subsequent Moviefilm (Amazon), and The Witches (HBO
Max).
- Selected highlight episodic projects include Bridgerton
(Netflix), His Dark Materials (HBO/BBC), Gentleman Jack (HBO/BBC),
Perry Mason (HBO), American Gods (Starz), This Is Us (Fox/NBC), and
The Good Lord Bird (Showtime).
- Covid-19 situation update
- Following the major U.S. studios reaching an agreement in
September with all the key Hollywood unions, production activity
began to accelerate during the fourth quarter of 2020. Furthermore,
a number of countries like Canada, France and the U.K. have
launched and/or extended pandemic-related support programs
including wage subsidies and production insurance/indemnity schemes
that provide pandemic-related coverage.
- There continue to be production stoppages/delays as the latest
waves of the pandemic temporarily restrict production activity or
limit international travel for talent and crew. Nevertheless,
as vaccinations continue to roll out globally, the industry is
optimistic about a steady return to normalcy during the back half
of 2021.
- Overall, Production Services continues to observe an increasing
level of bidding activity for projects, particularly for
streaming/OTT distribution in addition to large tentpole films
targeting to ramp-up production once Covid-19 vaccine distribution
has reached a critical mass later in the current year.
###
|
Second Half |
Change HtH |
Full Year |
Change YoY |
Connected Home |
2019 |
2020 |
Reported |
At constant rate |
2019 |
2020 |
Reported |
At constant rate |
In €
million |
Revenues |
1,029 |
924 |
(10.2)% |
(3.3)% |
1,983 |
1,764 |
(11.0)% |
(7.6)% |
Adj. EBITDA |
54 |
56 |
+3.7% |
+13.8% |
79 |
110 |
+39.5% |
+46.7% |
As a % of revenues |
+5.2% |
+6.0% |
|
|
+4.0% |
+6.2% |
|
|
Adj. EBITA |
40 |
21 |
(48.7)% |
(41.2)% |
23 |
41 |
+75.8% |
+91.8% |
As a % of revenues |
+3.9% |
+2.2% |
|
|
+1.2% |
+2.3% |
|
|
·Connected Home revenues
totaled €1,764 million in 2020, down (7.6)% year-on-year at
constant rate and (11.0)% at current rate. The division experienced
demand slowdown and supply constraints in Eurasia and Latin
America, which were partially offset by increased demand from the
North American cable division. The division is maintaining its
market leadership in the Broadband segment and in the video Android
based segment.
The division
successfully completed the bulk of the transformation plan launched
in 2018. Selective investments in key customers, and a
platform-based products approach focused on broadband and Android
TV segments, combined with strategic partnerships with key
suppliers and aggressive investment in process re-engineering, have
generated a significant increase in the productivity and
competitiveness of Connected Home in the market place. Connected
Home has improved its margins and its market share over the last
years, despite facing many market, industry and global
challenges.
We
anticipate that, overall, demand will remain strong throughout
2021. However, the Covid global pandemic has created distortions in
our industry. World logistics were severely disrupted in recent
months, and they will remain difficult for some time to come. The
semiconductor crisis which started in the second half of 2020 will
continue to impact 2021 supply. Connected Home will continue to
work with its partners and customers to minimize supply
disruptions. Connected Home has been awarded the next generation
DOCSIS gateway for the leading cable operator in the US which will
reinforce our leading position with the top 6 cable operators in
the US, and our global leadership in the broadband segment in the
coming years.
- Adjusted EBITDA amounted to €110 million in
2020, or 6.2% of revenue, up €37 million at constant rate primarily
linked to cost reduction initiatives implemented in 2020. Adjusted
EBITA of €41 million increased by €21 million compared to the prior
year at constant rate. This positive evolution in profitability is
the result of the significant transformation plan launched 2 years
ago.
- Business highlights
- North America: Revenues remained strong, driven by
increased demand from cable customers for upgrades to higher power
broadband to support pandemic related remote work and education
activities. We expect this trend to continue into 2021 as
customers plan for continued CPE upgrades, as well as seeking to
ensure supply continuity and manage anticipated supply concerns due
to Covid-related demand surges from other industries competing for
semiconductor supply.
- Latin America: The difficult macroeconomic situation in the
region continued to drive demand down, particularly in Brazil, due
to Covid as well as buying power impacts resulting from currency
devaluation stemming from the drop in oil prices.
- Europe, Middle East & Africa: Sales were flat in the second
half year-on-year, with strong growth in the broadband segment
(+20%) compensating for the decline in the market for video set top
boxes. Android TV remained stable year over year, with additional
service providers adopting this technology in the region and
associated new wins. Logistics between Asia and Europe and the
first stages of the Brexit implementation have generated backlogs
additional to the one generated by the semiconductor market
situation.
- Asia Pacific: Sales were highly impacted by lockdowns in the
main countries served, with slow recovery, mainly India and
Australia, combined with semiconductor supply constraints. Video
demand remained weak over the period, while broadband
started to recover with strong projections for 2021. Android TV
demonstrated strong growth (+25%) with a solid trend in the Indian
market.
The division continues to focus on selective
investments in key customers, platform-based products and
partnerships that will lead to improved margins over the year.
Limited supply coupled with high demand for
semiconductors is creating potential cost increases and production
constraints which could delay sales during the first half
2021. To address this, Technicolor has engaged in commercial
discussions in order to pass surcharges through to customers.
·Revenue Breakdown for Connected
Home (at current rate)
|
Second Half |
Full Year |
In € million |
2019 |
2020 |
% Change(*) |
2019 |
2020 |
% Change (*) |
Total revenues |
1,029 |
924 |
(3.3)% |
1,983 |
1,764 |
(7.6)% |
By
region |
North
America |
467 |
515 |
+16.9% |
865 |
980 |
+15.9% |
|
Europe, Middle East and Africa |
193 |
182 |
(0.3)% |
453 |
336 |
(24.3)% |
|
Latin
America |
145 |
95 |
(19.0)% |
307 |
206 |
(22.7)% |
Asia-Pacific |
224 |
132 |
(38.0)% |
357 |
242 |
(30.5)% |
By
product |
Video |
455 |
375 |
(10.9)% |
830 |
693 |
(12.5)% |
|
Broadband |
575 |
549 |
+2.5% |
1,152 |
1,071 |
(4.1)% |
(*) Change at constant rate
·Covid-19 situation
update
Connected Home has remained fully operational
throughout the Covid crisis due to the early adoption of a remote
work model that successfully moved half of all employees off site
to ensure key engineering facilities remained safe and open.
The Covid-19 impact is now limited for its
Asian-based manufacturing, but is still affecting capacity in Latin
America for manufacturing and back-end operations.
###
|
Second Half |
Change HtH |
Full Year |
Change YoY |
DVD Services |
2019 |
2020 |
Reported |
At constant rate |
2019 |
2020 |
Reported |
At constant rate |
In €
million |
Revenues |
508 |
404 |
(20.5)% |
(17.3)% |
882 |
706 |
(20.0)% |
(18.6)% |
Adj. EBITDA |
69 |
52 |
(24.8)% |
(23.1)% |
81 |
54 |
(33.6)% |
(32.3)% |
As a % of revenues |
+13.6% |
+12.9% |
|
|
+9.1% |
+7.6% |
|
|
Adj. EBITA |
24 |
29 |
+20.9% |
+19.0% |
(6) |
(0) |
+95.0% |
+94.1% |
As a % of revenues |
+4.7% |
+7.2% |
|
|
(0.7)% |
(0.0)% |
|
|
·DVD
Services revenues totaled €706 million in 2020, down
(18.6)% at constant rate and (20.0)% at current rate compared to
2019, due predominately to lower replication & packaging disc
volumes across all formats, and lower distribution activity as a
result of the negative impact of Covid-19, which exacerbated the
structural decline trend. Total combined replication volumes
reached 817.1 million discs in 2020, down (22.9)% year-on-year.
However, this reduction was much lower than originally anticipated
as demand for back catalog grew to compensate somewhat for loss of
revenue from new film releases.
David
Holliday, the newly appointed President of the DVD Services
Business Division, has been tasked with further in-depth
transformation of the business, driving efficiencies across the
worldwide footprint, streamlining internal processes and
centralizing cost management, while accelerating revenue and
profitability from non-disc activities.
- Adjusted EBITDA amounted to €54 million at
current rate, or 7.6% of revenue, better than expectations given
stronger than anticipated disc volumes and the acceleration of cost
saving actions. The margin also includes the benefit of the
positive impact from contracts renegotiated in 2019 and 2020. Lower
depreciation & amortisation and renewal of contracts helped to
deliver an Adjusted EBITA at break even compared to a loss in
2019.
- Business Highlights
- Standard Definition DVD volumes were down (20)% in 2020
reflecting the lack of new release content due to theater closures,
but overall results were better than expected given the continued
aggressive studios and major retailers catalog promotional
activity.
- Blu-rayTM volumes were down (27)% in 2020, heavily impacted by
the lack of new release content, and without as much mitigating
benefit from catalog promotions.
- CD volumes were down (33)% year-on-year on a combination of
expected structural declines and Covid-19 retail impacts.
All formats showed an easing in the rate of
decline in the fourth quarter with strong retail demand activity
during the holiday season, particularly in the games segment.
The Disney/Fox contract successfully closed, as
did the Lionsgate contract. Paramount (PHE) replication will expire
in mid-2021 and will not be renewed; the effect of this will be
mitigated by an acceleration of DVD Services’ business
transformation plans. Technicolor will continue to service PHE for
distribution services.
|
Second Half |
Full Year |
In million units |
2019 |
2020 |
% Change |
2019 |
2020 |
% Change |
Total Combined Volumes |
613.3 |
490.5 |
(20.0)% |
1,059.1 |
817.1 |
(22.9)% |
By
Format |
SD-DVD |
402.6 |
340.1 |
(15.5)% |
701.9 |
560.2 |
(20.2)% |
|
Blu-ray™ |
181.3 |
129.2 |
(28.7)% |
298.8 |
218.0 |
(27.1)% |
|
CD |
29.3 |
21.2 |
(27.6)% |
58.4 |
38.9 |
(33.5)% |
By Segment |
Studio/Video |
557.0 |
442.9 |
(20.5)% |
959.4 |
740.6 |
(22.8)% |
|
Games |
20.5 |
21.2 |
+3.1% |
29.7 |
27.5 |
(7.5)% |
|
Music
& Software |
35.7 |
26.5 |
(25.9)% |
70.0 |
49.0 |
(30.0)% |
- Covid-19 situation update
- Theatrical new release activity was very limited in 2020 from
March onwards due to the Covid-19 outbreak, with many key title
release dates pushed out into 2021, which in most cases resulted in
the home entertainment release being delayed as well, directly
impacting DVD Services revenue/volume activity.
- Most major retailers remained open during the pandemic, but the
level of sales activity was below normal, with some signs of
improvement in the fourth quarter. Without new release content,
some retailers are continuing to allocate shelf space to
catalog/library content promotions, which should continue to
support DVD replication volumes in 2021.
- Some production facilities experienced temporary staffing
shortages, but the overall impact to operations was low.
- The ongoing Covid-19 impact will be dependent on the extent and
duration of ongoing restrictions (driven by the rate of new Covid
case growth). The specific timing and extent of the reopening of
movie theaters will impact the level of new disc release activity.
DVD Services has accelerated certain aspects of its future
restructuring plans in an effort to adapt to these impacts.
###
|
Second Half |
Change HtH |
Full Year |
Change YoY |
Corporate &
Other |
2019 |
2020 |
Reported |
At constant rate |
2019 |
2020 |
Reported |
At constant rate |
In €
million |
Revenues |
34 |
11 |
(68.1)% |
(68.1)% |
43 |
23 |
(45.6)% |
(45.6)% |
Adj. EBITDA |
15 |
(9) |
(162.4)% |
(163.3)% |
1 |
(14) |
ns |
ns |
As a % of revenues |
+43.2% |
(84.7)% |
|
|
+3.5% |
(61.1)% |
|
|
Adj. EBITA |
14 |
(11) |
(180.5)% |
(181.9)% |
(2) |
(18) |
ns |
ns |
As a % of revenues |
+40.7% |
(102.9)% |
|
|
(5.0)% |
(77.7)% |
|
|
·Corporate & Other
includes the Trademark Licensing business.
Corporate & Other recorded revenues of €23
million in 2020, decreasing compared to last year. In 2019, the
Group benefited from €20 million of retained patent licensing
revenues versus only €5 million in 2020. Adjusted EBITDA
amounted to €(14) million and Adjusted EBITA was €(18) million.
###
·Debt and leverage
details
As part of the financial restructuring
transaction completed in 2020, debt maturities have been extended
and new financings executed, reinforcing the Group’s liquidity.
In million currency |
Currency |
Nominal Amount |
IFRS Amount |
Type of rate |
Nominal rate (1) |
Repayment Type |
Final maturity |
Moodys / S&P rating |
New
Money notes |
EUR |
350 |
363 |
Floating |
12.00%(2) |
Bullet |
Jun. 30, 2024 |
Caa1/B |
New
Money Term loans |
USD |
98 |
101 |
Floating |
12.34%(3) |
Bullet |
Jun. 30, 2024 |
Caa1/B |
Reinstated Term Loans |
EUR |
453 |
372 |
Floating |
6.00%(4) |
Bullet |
Dec. 31, 2024 |
Ca/CCC |
Reinstated Term Loans |
USD |
115 |
95 |
Floating |
6.03%(5) |
Bullet |
Dec. 31, 2024 |
Ca/CCC |
Subtotal |
EUR |
1,016 |
931 |
|
8.68% |
|
|
|
Lease
liabilities(6) |
Various |
178 |
178 |
Fixed |
7.94% |
|
|
|
Accrued PIK Interest |
EUR+USD |
16 |
16 |
NA |
0% |
|
|
|
Accrued Interest |
Various |
16 |
16 |
NA |
0% |
|
|
|
Other Debt |
Various |
1 |
1 |
NA |
0% |
|
|
|
Total Gross Debt |
|
1,227 |
1,142 |
|
8.34% |
|
|
|
Cash
& Cash equivalents |
Various |
330 |
330 |
|
|
|
|
|
Total Net Debt |
|
897 |
812 |
|
|
|
|
|
Covenant leverage ratio
(7) |
|
5.37 |
|
|
|
|
|
|
(1) Rates as of December 31, 2020. |
|
|
|
|
|
(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 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 LIBOR with a floor of 0% + 2.75% and PIK interest of
3.00 |
|
|
(6) Of which €14 million are
capital leases and €164 million is operating lease debt under IFRS
16 |
|
(7) Net debt using nominal
value of financial debts divided by adjusted EBITDA, not tested as
at December 31, 2020 |
Summary of consolidated results for
2020
|
Second Half |
Full Year |
In € million |
2019 |
2020 |
Change |
2019 |
2020 |
Change |
|
Revenues
from continuing operations |
2,036 |
1,573 |
(22.7)% |
3,800 |
3,006 |
(20.9)% |
|
Change at constant currency (%) |
|
|
(17.9)% |
|
|
(18.5)% |
|
o/w |
Production Services |
465 |
234 |
(49.6)% |
893 |
513 |
(42.5)% |
|
|
DVD
Services |
508 |
404 |
(20.5)% |
882 |
706 |
(20.0)% |
|
|
Connected Home |
1,029 |
924 |
(10.2)% |
1,983 |
1,764 |
(11.0)% |
|
|
Corporate & Other |
34 |
11 |
(68.1)% |
43 |
23 |
(45.6)% |
|
Adjusted EBITDA from continuing operations |
222 |
115 |
(48.3)% |
324 |
167 |
(48.5)% |
|
Change at
constant currency (%) |
|
|
(44.9)% |
|
|
(46.0)% |
|
As a % of revenues |
+10.9% |
+7.3% |
(361)bps |
+8.5% |
+5.6% |
(298)bps |
|
o/w |
Production Services |
84 |
16 |
(80.9)% |
164 |
18 |
(88.8)% |
|
|
DVD
Services |
69 |
52 |
(24.8)% |
81 |
54 |
(33.6)% |
|
|
Connected Home |
54 |
56 |
+3.7% |
79 |
110 |
+39.5% |
|
|
Corporate & Other |
15 |
(9) |
ns |
1 |
(14) |
ns |
|
Adjusted EBITA from continuing operations |
87 |
11 |
(86.9)% |
42 |
(56) |
ns |
|
Change at
constant currency (%) |
|
|
(85.8)% |
|
|
ns |
|
As a % of revenues |
+4.3% |
+0.7% |
(356)bps |
+1.1% |
(1.9)% |
(297)bps |
|
Adjusted
EBIT from continuing operations |
60 |
(7) |
ns |
(12) |
(96) |
ns |
|
Change at
constant currency (%) |
|
|
ns |
|
|
ns |
|
As a % of revenues |
+3.0% |
(0.5)% |
(345)bps |
(0.3)% |
(3.2)% |
(289)bps |
|
EBIT from continuing
operations |
(31) |
(70) |
ns |
(121) |
(264) |
ns |
|
Change at
constant currency (%) |
|
|
ns |
|
|
ns |
|
As a % of revenues |
(1.5)% |
(4.4)% |
(292)bps |
(3.2)% |
(8.8)% |
(561)bps |
|
Financial
result |
(36) |
144 |
- |
(84) |
77 |
- |
|
Income tax |
3 |
(2) |
- |
(3) |
(5) |
- |
|
Share of profit/(loss) from associates |
0 |
0 |
- |
(1) |
0 |
- |
|
Profit/(loss) from continuing operations |
(64) |
72 |
- |
(208) |
(193) |
- |
|
Profit/(loss)
from discontinued operations |
(26) |
(14) |
- |
(22) |
(15) |
- |
|
Net income |
(90) |
58 |
- |
(230) |
(207) |
- |
|
(*) Change at current rate
- Restructuring costs accounted for €(100) million at current
rate, including €(27) million in Production Services on cost
streamlining actions, €(33) million in DVD Services, mainly
resulting from optimization of replication and distribution sites,
€(31) million in Connected Home, pursuant to the three-year
transformation plan, and €(9) million for Corporate and Other.
- EBIT from continuing operations amounted to a loss of
€(264) million in 2020.
- The financial result totaled €77 million in 2020 compared to
€(84) million in 2019, reflecting:
- Net interest costs of €(78) million, slightly up from last
year’s €(69) million, primarily due to the interest rates on the
bridge loan in place from March to July;
- Other financial income amounting to €155 million in 2020
compared to €(15) million in 2019, mostly explained by a non-cash
gain on the equity and debt initial valuations, in the application
of IFRS Standards following the financial restructuring
process.
- Income tax amounted to €(5) million, compared to €(3) million
in 2019.
- Group net income therefore amounted to a loss of €(207) million
at current rate in 2020, compared to the €(230) million loss in
2019.
Reconciliation of adjusted indicators
(unaudited)
In addition to published results, and with the
aim of providing a more comparable view of the evolution of its
operating performance in 2020 compared to 2019, Technicolor is
presenting a set of adjusted indicators which exclude the following
items as per the statement of operations of the Group’s
consolidated financial statements:
- Net restructuring costs;
- Net impairment charges;
- Other income and expenses (other non-current items).
These adjustments, the reconciliation of which
is detailed in the following table, amounted to an impact on EBIT
from continuing operations of €(168) million in 2020 compared to
€(109) million in 2019 (including IFRS 16).
|
Full Year |
In € million |
2019 |
2020 |
Change(*) |
EBIT from continuing operations |
(121) |
(264) |
(144) |
Restructuring charges, net |
(31) |
(100) |
(69) |
Net
impairment losses on non-current operating assets |
(63) |
(75) |
(12) |
Other income/(expense) |
(15) |
8 |
23 |
Adjusted EBIT from continuing operations |
(12) |
(96) |
(84) |
As a % of revenues |
(0.3)% |
(3.2)% |
(289)bps |
Depreciation and amortization (“D&A”) ** |
305 |
261 |
(44) |
IT capacity use for rendering in Production S. |
31 |
2 |
(29) |
Adjusted EBITDA from continuing operations |
324 |
167 |
(157) |
As a % of
revenues |
8.5% |
5.6% |
(298)bps |
(*) Variation at current rates
(**) including reserves (Risk, litigation and
warranty reserves)
Free Cash Flow Reconciliation and
Summarized Financial Structure (unaudited)
Technicolor defines “Free Cash Flow” as net cash
from operating activities (continuing and discontinued) plus
proceeds from sales of property, plant and equipment (“PPE”) and
intangible assets, minus purchases of PPE and purchases of
intangible assets including capitalization of development
costs.
|
Full Year (IFRS) |
|
In € million |
Dec 31, |
Dec 31, |
|
2020 |
2019 |
|
|
|
|
Adjusted EBITDA from continuing operations |
167 |
324 |
|
Changes in working capital and other
assets and liabilities |
(101) |
(65) |
|
IT capacity use for rendering in
Production Services |
(2) |
(31) |
|
Pension cash usage of the period |
(30) |
(26) |
|
Restructuring provisions – cash usage
of the period |
(46) |
(35) |
|
Interest paid |
(51) |
(65) |
|
Interest received |
3 |
1 |
|
Income tax paid |
(12) |
(12) |
|
Other items |
(9) |
(21) |
|
Net operating cash generated from continuing
activities |
(81) |
70 |
|
Purchases of property, plant and
equipment (PPE) |
(33) |
(70) |
|
Proceeds from sale of PPE and
intangible assets |
- |
1 |
|
Purchases of intangible assets
including capitalization |
(75) |
(99) |
|
of development costs |
|
Net operating cash used in discontinued
activities |
(18) |
(11) |
|
Free cash-flow |
(207) |
(111) |
|
Nominal gross debt (including Lease
debt) |
1,227 |
1,302 |
|
Cash position |
330 |
65 |
|
Net financial debt at nominal value (non
IFRS) |
897 |
1,237 |
|
IFRS
adjustment |
(85) |
(4) |
|
Net financial debt (IFRS) |
812 |
1,233 |
|
- The change in working capital & other assets and
liabilities was negative by €(101) million in 2020, mostly driven
by unfavorable changes in supplier payment terms at Connected Home
and DVD Services, and reduced milestone payments at Film &
Episodic Visual Effects due to Covid-19.
- Cash outflow for restructuring totaled €46 million in 2020, up
by €11 million year-on-year at current rate, mainly resulting from
accelerated implementation of cost savings.
- Capital expenditures amounted to €108 million, down by €61
million year-on-year at current rate, reflecting a strict control
of investment expense.
Cash position at end of 2020 was €330 million,
compared to €65 million at the end of December 2019.
An analyst audio webcast hosted by Richard Moat,
CEO and Laurent Carozzi, CFO will be held today, 11 March 2021 at
7:30pm CET.
Financial calendar
Q1 2021 |
May 11 2021 |
Annual General Meeting |
May 12 2021 |
###
Warning: Forward Looking
Statements
This press release contains certain statements
that constitute "forward-looking statements", including but not
limited to statements that are predictions of or indicate future
events, trends, plans or objectives, based on certain assumptions
or which 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 a number 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 the French Autorité des marchés financiers
.###
Audited financial
information
The auditors have performed their procedures on
the consolidated financial statements. The audit report will be
issued after verification of the management report and the
presentation of the format required by the ESEF regulation on the
financial statements intended to be included in the annual
financial report.
###About
Technicolor:
www.technicolor.com
Technicolor shares are admitted to
trading on the regulated market of Euronext Paris (TCH) and are
tradable in the form of American Depositary Receipts (ADR) in the
United States on the OTCQX market (TCLRY).
Investor
Relations
Media
Christophe le Mignan: +33 1 88 24 32
83
Stephanie
VarlottaChristophe.lemignan@technicolor.com
Stephanie.varlotta@technicolor.com
Nathalie Feld : +33 1 53 70 94 23
nfeld@image7.fr
CONSOLIDATED STATEMENT OF
OPERATIONS
|
|
|
|
12 months ended December 31, |
(€ in million) |
2020 |
|
2019 |
|
|
|
|
CONTINUING OPERATIONS |
|
|
|
Revenues |
3,006 |
|
3,800 |
Cost of
sales |
(2,725) |
|
(3,375) |
Gross margin |
281 |
|
425 |
|
|
|
|
Selling and
administrative expenses |
(284) |
|
(323) |
Research and
development expenses |
(94) |
|
(114) |
Restructuring
costs |
(100) |
|
(31) |
Net impairment gains (losses) on
non-current operating assets |
(75) |
|
(63) |
Other income
(expense) |
8 |
|
(15) |
Earnings before Interest & Tax (EBIT) from continuing
operations |
(264) |
|
(121) |
|
|
|
|
Interest
income |
4 |
|
1 |
Interest
expense |
(82) |
|
(70) |
Net gain on
financial restructuring |
158 |
|
- |
Other
financial income (expense) |
(3) |
|
(15) |
Net financial income (expense) |
77 |
|
(84) |
|
|
|
|
Share of gain
(loss) from associates |
0 |
|
(1) |
Income
tax |
(5) |
|
(3) |
Profit (loss) from continuing operations |
(193) |
|
(208) |
|
|
|
|
DISCONTINUED OPERATIONS |
|
|
|
Net gain
(loss) from discontinued operations |
(15) |
|
(22) |
|
|
|
|
Net income (loss) |
(207) |
|
(230) |
|
|
|
|
Attribuable
to: |
|
|
|
- Equity
holders |
(207) |
|
(230) |
-
Non-controlling interest |
0 |
|
0 |
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
(€ in million) |
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
ASSETS |
|
|
|
|
Goodwill |
716 |
|
851 |
|
Intangible
assets |
535 |
|
632 |
|
Property,
plant and equipment |
140 |
|
191 |
|
Right-of-use
assets |
148 |
|
285 |
|
Other operating non-current assets |
27 |
|
32 |
TOTAL OPERATING NON-CURRENT ASSETS |
1,566 |
|
1,991 |
|
|
|
|
|
|
Non-consolidated investments |
14 |
|
17 |
|
Other non-current financial assets |
47 |
|
22 |
TOTAL FINANCIAL NON-CURRENT ASSETS |
61 |
|
39 |
|
|
|
|
|
|
Investments in
associates and joint-ventures |
1 |
|
1 |
|
Deferred tax assets |
45 |
|
52 |
TOTAL NON-CURRENT ASSETS |
1,674 |
|
2,082 |
|
|
|
|
|
|
Inventories |
195 |
|
243 |
|
Trade accounts
and notes receivable |
425 |
|
507 |
|
Contract
assets |
63 |
|
79 |
|
Other operating current assets |
224 |
|
184 |
TOTAL OPERATING CURRENT ASSETS |
907 |
|
1,013 |
|
|
|
|
|
|
Income tax
receivable |
14 |
|
36 |
|
Other
financial current assets |
17 |
|
13 |
|
Cash and cash
equivalents |
330 |
|
65 |
|
Assets classified as held for sale |
76 |
|
- |
TOTAL CURRENT ASSETS |
1,344 |
|
1,127 |
|
|
|
|
|
TOTAL ASSETS |
3,018 |
|
3,210 |
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
(€ in million) |
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Common stock
(235,795,486 shares at December 31, 2020 with nominal value of 0.01
euro per share) |
2 |
|
414 |
|
Subordinated
Perpetual Notes |
500 |
|
500 |
|
Additional
paid-in capital & reserves |
126 |
|
(540) |
|
Cumulative translation adjustment |
(456) |
|
(339) |
Shareholders equity
attributable to owners of the parent |
173 |
|
36 |
|
Non-controlling interests |
0 |
|
0 |
TOTAL
EQUITY |
173 |
|
36 |
|
|
|
|
|
|
Retirement
benefits obligations |
325 |
|
342 |
|
Provisions |
33 |
|
30 |
|
Contract
liabilities |
2 |
|
3 |
|
Other operating non-current liabilities |
21 |
|
25 |
TOTAL OPERATING
NON-CURRENT LIABILITIES |
381 |
|
400 |
|
|
|
|
|
|
Borrowings |
948 |
|
979 |
|
Lease
liabilities |
122 |
|
224 |
|
Other
non-current liabilities |
- |
|
1 |
|
Deferred tax liabilities |
15 |
|
27 |
TOTAL NON-CURRENT
LIABILITIES |
1,466 |
|
1,631 |
|
|
|
|
|
|
Retirement
benefits obligations |
30 |
|
33 |
|
Provisions |
90 |
|
70 |
|
Trade accounts
and notes payable |
710 |
|
825 |
|
Accrued
employee expenses |
142 |
|
134 |
|
Contract
liabilities |
41 |
|
40 |
|
Other current
operating liabilities |
215 |
|
302 |
TOTAL
OPERATING CURRENT LIABILITIES |
1,228 |
|
1,404 |
|
|
|
|
|
|
Borrowings |
16 |
|
8 |
|
Lease
liabilities |
56 |
|
87 |
|
Income tax
payable |
21 |
|
41 |
|
Other current
financial liabilities |
2 |
|
2 |
|
Liabilities classified as held for sale |
56 |
|
- |
TOTAL CURRENT LIABILITIES |
1,379 |
|
1,542 |
|
|
|
|
|
TOTAL LIABILITIES |
2,845 |
|
3,173 |
|
|
|
|
|
TOTAL EQUITY & LIABILITIES |
3,018 |
|
3,210 |
CONSOLIDATED STATEMENT OF CASH
FLOWS
|
12 months ended December 31, |
(€ in million) |
2020 |
|
2019 |
Net income (loss) |
(207) |
|
(230) |
Income (loss) from discontinuing
activities |
(15) |
|
(22) |
Profit (loss) from continuing activities |
(193) |
|
(208) |
Summary
adjustments to reconcile profit from continuing activities to cash
generated from continuing operations |
|
|
|
Depreciation and amortization |
263 |
|
322 |
Impairment of assets |
88 |
|
63 |
Net changes in provisions |
16 |
|
(48) |
Gain (loss) on asset disposals |
(14) |
|
17 |
Interest (income) and expense |
78 |
|
69 |
Net gain on financial
restructuring |
(158) |
|
- |
Other items (including tax) |
(2) |
|
- |
Changes in working capital and other
assets and liabilities |
(101) |
|
(69) |
Cash generated from continuing
activities |
(22) |
|
146 |
Interest paid on lease debt |
(19) |
|
(21) |
Interest paid |
(32) |
|
(44) |
Interest received |
3 |
|
1 |
Income tax paid |
(12) |
|
(12) |
NET OPERATING CASH GENERATED FROM CONTINUING ACTIVITIES
(I) |
(81) |
|
70 |
Acquisition of subsidiaries, associates
and investments, net of cash acquired |
(3) |
|
(3) |
Proceeds from sale of investments, net
of cash |
7 |
|
1 |
Purchases of property, plant and
equipment (PPE) |
(33) |
|
(70) |
Proceeds from sale of PPE and
intangible assets |
- |
|
- |
Purchases of intangible assets
including capitalization of development costs |
(75) |
|
(99) |
Cash collateral and security deposits
granted to third parties |
(35) |
|
(6) |
Cash collateral and security deposits
reimbursed by third parties |
1 |
|
5 |
NET INVESTING CASH USED IN CONTINUING ACTIVITIES
(II) |
(138) |
|
(171) |
Disposal of treasury shares |
- |
|
1 |
Increase of Capital |
60 |
|
- |
Proceeds from borrowings |
760 |
|
1 |
Repayments of lease debt |
(85) |
|
(91) |
Repayments of borrowings |
(158) |
|
(5) |
Fees paid linked to the debt and
capital operations |
(60) |
|
(1) |
Other |
5 |
|
4 |
NET FINANCING CASH USED IN CONTINUING ACTIVITIES
(III) |
522 |
|
(91) |
|
|
|
|
NET CASH FROM DISCONTINUED ACTIVITIES (IV) |
(23) |
|
(33) |
|
|
|
|
CASH AND CASH EQUIVALENTS AT THE BEGINING OF THE
PERIOD |
65 |
|
291 |
Net increase (decrease) in cash and cash equivalents
(I+II+III+IV) |
280 |
|
(226) |
Exchange gains / (losses) on cash and
cash equivalents |
(16) |
|
- |
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD |
330 |
|
65 |
1 In 2022, the cumulated impacts of foreign exchange
fluctuations and change in Group perimeter as a result of the sale
of Post Production are €(40) million on Adjusted EBITDA and €(23)
million on Adjusted EBITA.
2 “Adjusted EBITDA” corresponds to the profit (loss) from
continuing operations before tax and net financial income
(expense), net of other income (expense), depreciation and
amortization (including impact of provision for risks, litigation
and warranties).
3 Free cash flow defined as: Adj. EBITDA – (net capex +
restructuring cash expenses + change in pension reserves + change
in working capital and other assets & liabilities + cash impact
of other non-current result).
- 03-11-2021_FY20_Press_Release_VUS