Vantiva 2022 Results
Press Release
2022
Results
VANTIVA
EXCEEDS ITS
GUIDANCEADJUSTED
EBITDA OF
€161
MILLION
(+
€20
MILLION vs
2021)SOLID
POSITIVE
FCF1
AT
€88
MILLION (+
€200
MILLION vs
2021)GUIDANCE
2023
MAINTAINED
Paris
(France),
March
9th,
2023
– Vantiva
(Euronext Paris: VANTI; OTCQX: TCLRY) is today announcing its
results for the full year 2022. These results have been approved by
the board of directors today.
The audit procedures on the consolidated financial statements
have been carried out and the audit report on the consolidated
financial statements will be issued after the verification of the
information presented in Group’s management report and due
diligence relating to the ESEF electronic format of the 2022
financial statements.
2021 amounts restated considering Trademark
Licensing operations and Technicolor Creatives Studios accounted
for as discontinued operations.
Vantiva FY 2022
results have
exceeded targets in a
challenging environment.
- Revenues
increased by
23.4%
to
€2,776
million
(+11.4% at constant
exchange rate).
- Adjusted EBITDA at €161 million
(+14.3%),
representing 5.8% of revenues
(vs
6.3%
in
2021).
- Adjusted EBITA
increased by
39.7%
to €55 million (vs €39
million in
2021).
- Net result of continuing
operations was negative at
-€529
million after
a net loss from associates of -€311m
resulting from the write down of TCS shares’ to market
value.
- Group
net result
was positive at
€151
million after taking into
account a profit
of €680
million from
the discontinued
operations, stemming
mostly from the
TCS’ spin
off.
- Capex
increased by
15.4%
to €80 million
-
Free Cash
Flow,
before financial and
tax, was positive at
€88 million and improved
by €200 million
over last year.
- At
the end of the year, Vantiva held
a cash position of €167 million
and its $125m credit
line was fully
undrawn.
-
Total net debt (w/o
capital lease) amounted to
€216 million in nominal
terms.
Luis Martinez-Amago, Chief Executive
Officer of Vantiva,
said:
“Our results show that Vantiva has exceeded its commitment to
the market, with a strong financial performance in a challenging
environment. This is the result of the business transformations
carried out in the recent past. The strong partnership with our
customers and suppliers is also fundamental for our business
performance. The excellent 2022 result is one more milestone
in our ambitious strategy that we will continue to deploy. We
remain focused on our core business, but will keep investing in
other growth opportunities. We keep recruiting new key talents who
will contribute to the execution of our medium and long term
plans.Looking to 2023, while we are experiencing an improvement in
the global supply chain and in the component shortages, we also see
signs of broader macro-related inflationary uncertainties that are
affecting consumer confidence. This is creating demand uncertainty
for the year. We will keep working closely with our customers and
suppliers to react quickly to any market events, and to keep
delivering on our commitments to them and to our other
stakeholders. Considering all this, we are confident of delivering
on our guidance for 2023”.
I- 2022
Key Highlights & 2023
Outlook
|
|
|
|
|
In € million, continuing operations |
2022 |
2021 |
Change at current rate |
Change at Constant Rate |
Revenues |
2,776 |
2,250 |
23.4% |
11.4% |
Adjusted
EBITDA |
161 |
141 |
14.3% |
3.7% |
As a % of revenues |
5.8% |
6.3% |
(46bps) |
(43 bps) |
Adjusted
EBITA |
55 |
39 |
39.7% |
28.2% |
Free Cash Flow before Financial & Tax |
88 |
(112) |
200 |
187 |
2022 Key
Highlights
The group’s growth has been fueled by higher
broadband volumes thanks to the success of our Fiber and Wi Fi 6
offer, price increases to partially recover cost inflation, and
improved product-mix at the Connected Home division. Supply Chain
Solutions’ performance has been negatively impacted by lower demand
in optical discs against a strong base of comparison.
Vantiva revenues totaled €2,776 million, up
23.4% (+11.4% at constant exchange rate).Connected Home revenues
amounted to €2,120 million for the fiscal year, an increase of
37.3% (+23.3% at constant exchange rate). Supply Chain Solutions
revenues were €655 million, down 6.6% (-14.3% at constant exchange
rate).Adjusted EBITDA improvement stems from the product mix-effect
for Connected Home, better pass through of additional costs versus
last year, and strict cost control in both divisions.
The group’s adjusted EBITDA reached €161 million
in the year, a €20 million improvement over last year. The margin
dilution, from 6.3% to 5.8%, resulted from the higher contribution
of the Connected Home division to the group’s adjusted EBITDA
(+10pts) and a lower gross margin in percentage terms.Connected
Home contributed €135 million (versus €103 million last year) to
adjusted EBITDA while Supply Chain Solutions contributed €56
million (versus €67 million last year).
FCF, before financial and tax, in the year was
positive at €88 million, showing a €200 million improvement over
last year, largely explained by the change in working capital.
Outlook
Visibility on the level of demand for Connected
Home products is limited as Network Services Providers (NSP) are
carefully managing their inventories, especially in the US, in a
context of economic uncertainty. In 2023, Vantiva forecasts
continuing growth for broadband products but anticipates a decline
for video devices. Therefore revenues of Connected Home division
are expected to be down, but on a challenging base of comparison
due to the strong performance achieved last year.
For SCS, activity should remain on the same
trend as last year with a natural decline in demand for optical
discs, but increased revenues for “growth activities”. The increase
in vinyl production capacity should be the main growth driver in
the latter area. Globally, the group expects a slight decrease in
the division’s revenues.
Management also anticipates a persistent
inflationary environment. However, thanks to operational efficiency
and despite this context, the group is confident of meeting the
following targets in 2023:
- EBITDA > €140m
-
EBITA > €
45m
- FCF(1) > €50m
(1) Before interests and
tax
II- Segment Review –
Full Year 2022 Results
HighlightsConnected Home
Revenues breakdown by product
|
|
|
|
|
In € million |
2022 |
2021 |
Change at current rate |
Change at constant rate |
Revenues |
2,120 |
1,544 |
37.3% |
23.3% |
o/w by
product |
|
|
|
|
Broadband |
1,598 |
996 |
60.5% |
43.4% |
Video |
522 |
548 |
-4.9% |
-13.3% |
EBITDA adj |
135 |
103 |
30.6% |
19.5% |
As a % of revenues |
6.3% |
6.7% |
|
|
Connected Home
revenues contributed 76% of group revenues (69% in
2021) and totaled €2,120 million in 2022, up 37.3%. At constant
exchange rate, the growth would have been +23.3% compared with
2021. This revenue development has been driven by the combined
positive effect of pricing and product-mix outweighing the volume
decrease. Broadband business has been the main growth driver in the
year representing 75% of revenues versus 64% the prior year, while
demand for video devices suffered in some geographies, and
especially in India.
Globally, delivered units were down 4.4% mostly
due to a drop in demand in Asia Pacific, notably in India and for
entry level video products.
Adjusted EBITDA of the
division accounted for 84% of the group’s adjusted EBITDA compared
with 73% in 2021. It amounted to €135 million in 2022 (vs €103
million in 2021), or 6.3% of revenue (vs 6.7% in 2021).
Despite the improvement in euro terms, the EBITDA margin fell 32
basis points over last year. This is mostly due to the dilutive
impact of the measures implemented for countering inflation which
brought additional revenues with no margin contribution.
Supply Chain Solutions
In € million |
2022 |
2021 |
Change at current rate |
Change at constant rate |
Revenues |
655 |
701 |
-6.6% |
-14.3% |
EBITDA |
56 |
67 |
-15.5% |
-21.7% |
As a % of revenues |
8.6% |
9.5% |
|
|
Supply
Chain
Solutions revenues
totaled €655 million in 2022, down 6.6% from 2021. At constant
exchange rate the decline would have been 14.3%. Beyond the
structural decline of the optical disc activity, the performance of
the year has been severely impacted by the decline in demand from
one major customer and a high base of comparison. Distribution and
freight businesses were also down in the year. While growing, the
other activities, have not been able to offset entirely this
decline. The group has successfully launched vinyl production
delivering its first 2 million albums in the year. Performance was
however penalized by a slower intake of new vinyl presses than
planned due to delivery delays, which prevented us from meeting the
strong demand.
Adjusted EBITDA of the division
amounted to €56 million (vs €67m in 2021), or 8.6% of revenues
(9.5% in 2021), Margin decline mainly resulted from the lower
volumes in optical discs, distribution and freight activities,
despite the positive development in the “growth activities”. The
decline in EBITDA has been mitigated by the continued benefits of
the cost reduction plan started in 2020 and the first contribution
of the vinyl activity. In addition, the group has swiftly
implemented additional footprint adjustment measures to mitigate
the negative impact of the lower revenues.
Corporate & Other
In € million |
2022 |
2021 |
Change at current rate |
Change at constant rate |
Revenues |
1 |
5 |
-75.5% |
-75.5% |
EBITDA |
(30) |
(29) |
-3.8% |
nm |
As a % of revenues |
ns |
ns |
|
|
Corporate & Other recorded revenues of €1
million versus €5 million last year as the group disposed of its
licensing activities in May 2022.Adjusted EBITDA amounted to -€30
million in line with last year which stood at -€29 million. The
corporate running costs explain this result.
III- Results
analysis
P&L analysis
|
|
|
|
|
In € million |
2022 |
2021 |
Change at current rate |
Change at constant rate |
Revenues from continuing operations |
2,776 |
2,250 |
23.4% |
11.4% |
Adjusted EBITDA from continuing operations |
161 |
141 |
14.3% |
3.7% |
As a % of
revenues |
5.8% |
6.3% |
46 bps |
43 bps |
D&A & Reserves1, w/o PPA amortization |
(106) |
(101) |
4.6% |
-5.6% |
Adjusted EBITA from continuing operations |
55 |
39 |
39.7% |
28.2% |
As a % of
revenues |
2.0% |
1.7% |
na |
na |
PPA amortization |
(31) |
(30) |
3.5% |
-7.5% |
Non-recurring items |
(35) |
(23) |
52.3% |
39.2% |
EBIT from continuing operations |
(11) |
(13) |
na |
na |
As a % of
revenues |
-0.4% |
-0.6% |
na |
na |
Net financial
income (loss) |
(177) |
(117) |
51.8% |
48.4% |
Income tax |
(30) |
(14) |
nm |
nm |
Gain (loss) from associates |
(311) |
0 |
nm |
nm |
Profit
(loss) from continuing operations |
(529) |
(143) |
nm |
nm |
Net gain (loss) from discontinued operations |
680 |
4 |
nm |
nm |
Net income (loss) |
151 |
(140) |
nm |
nm |
1Risk, litigation and warranty reserves
2022
Revenues stood at €2,776 million, representing a
23.4% increase (+11.4% at constant exchange rate). The United Sates
remained the first market of the group with 58% of revenues
compared to 52% the previous year. The strong improvement of
Connected Home (+37.3%) was driven by, North America, broadband
products and forex, more than offsetting the decline of Supply
Chain Solutions (-6.6%), which was hit by lower optical disc
demand.
2022
Adjusted EBITDA amounted to €161 million, up 14.3%
year-on-year and 3.7% at constant rate. The EBITDA margin dropped
by 46 basis points to stand at 5.8% of revenues. This decline
reflects a slightly lower margin for both divisions and the higher
weight of Connected Home division in the group’s total as this
division generates a lower margin than SCS in percentage terms
2022
Adjusted EBITA of €55 million represented a €16
million year-on-year improvement. This resulted from the higher
EBITDA and a moderate depreciation increase. EBITA margin improved
by 23 basis points to 2.0% of revenues.
PPA amortization was almost
stable at -€31 million.
Non-recurring
items are coming from:
- restructuring
costs accounting for -€17 million versus -€31 million in 2021 as
the cost-cutting program “Panorama” launched by the division a few
years ago is nearly completed,
- other income and
expenses that showed an expense of -€13 million related to
litigations reserves and depreciation compared to income of €10
million in 2021 explained by a capital gain booked that year on
disposals,
- net impairment
on non-current operating asset for -€5m vs -€2m in the previous
year.
EBIT from continuing operations
was a -€11 million loss compared to -€13 million losses in
2021.
The financial result totaled
-€177 million in 2022, compared to -€117 million in 2021. About
half of this amount stems from the costs related to the anticipated
reimbursement as part of the spin off. Interest expenses, excluding
operating leases, amounted to €84 million and included for 9 months
the debt allocated to TCS during the spin off.
Income tax amounted to -€30
million versus -€14 million in 2021.
Result from associated is a
loss of -€311 million, mostly explained by the depreciation of the
value of our 35% stake in TCS.
Net loss from
continued operations amounted to
-€529 million compared to -€143 million in 2021.
Result of
discontinued operations showed a profit of €680
million, explained by the gain booked on TCS’ valuation at the time
of the spin off.
Group net
result therefore is a profit of €151 million in
2022, compared to a loss of -€140 million in 2021.
FCF and debt analysis
|
|
|
|
|
In € million |
2022 |
2021 |
Change at current rate |
Change at constant rate |
Adjusted EBITDA from continuing operations |
161 |
141 |
14.3% |
3.7% |
Capex |
(80) |
(69) |
(11) |
|
Non-recurring
items (cash impact) |
(50) |
(85) |
35 |
|
Change in working capital and other assets and liabilities |
57 |
(98) |
155 |
|
Free Cash Flow from continuing operations before
Tax & Financial |
88 |
(112) |
na |
na |
|
31/12/2022 |
31/12/20211 |
Nominal gross debt (including Lease debt) |
449 |
1,306 |
Cash and cash equivalent |
(167) |
(196) |
Net
financial debt at nominal value (non IFRS) |
282 |
1,110 |
IFRS adjustment |
(19) |
(71) |
Net financial debt (IFRS) |
263 |
1,039 |
(1) Debt Technicolor
Free
Cash
Flow went from €-112 million to
€88 million. This significant improvement reflects the stronger
EBITDA (+€20 million), lower cash out for restructuring (+€39
million) and the change in working capital (+€155 million) while
capex increased by €11 million.
The change in working
capital derived mainly from the negative impact related to
changes in payment terms in 2021 with some Connected Home partners
and new factoring facilities in 2022.
Pension liabilities were down by -€66 million
mainly due to a positive effect from discount rates of €49 million,
and payments of €27 million.
Cash outflow for restructuring
totaled -€22 million in 2022 versus -€61 million in 2021. This
sharp decrease is explained by the near completion of the cost
optimization program launched in 2020.
Capital expenditures amounted
to -€80 million (up by €11 million). The majority is capitalized
R&D for Connected Home. This increase reflects the attention
paid by the group to innovation in order to supply state of the art
technology.
The cash position at the end of
December 2022 was €167 million compared to €196 million at the end
of December 2021.
Net financial debt at nominal
value amounted to €282 million at the end of December 2022
following the refinancing implemented at the time of the spin
off.
IFRS net debt amounted to €263
million as of December 31, 2022.
Post closing event
Technicolor Creative Studios
announced March 8th 2023, before market opening, that it had
reached with its main shareholders and lenders an agreement on
principle for its refinancing. Vantiva is supporting this
agreement. For further information, please refer to the
TCS press release available on its website.
Appendix
Debt details
€ million
Line |
Characteristics |
Nominal |
IFRS amount |
Nominal Rate |
IFRS Rate |
Barclays |
Cash: Euribor 3M + 2.50% & PIK |
250 |
240 |
7.5% |
11.8% |
Angelo Gordon |
Cash: Euribor 3M + 4.00% & PIK |
125 |
117 |
11.0% |
16.1% |
Wells Fargo |
9.5% |
0 |
0 |
9.5% |
9.5% |
Operating Lease |
|
66 |
66 |
12.2% |
12.2% |
Capital Lease |
|
1 |
1 |
2.5% |
2.5% |
Other |
|
7 |
7 |
0.0% |
0.0% |
Total Debt |
|
448 |
430 |
9.1% |
12.8% |
Cash & Cash Equivalents |
|
167 |
167 |
|
|
Net Debt |
|
282 |
263 |
|
|
IFRS 16 impact
|
|
|
|
|
Actual FY 22
(incl IFRS 16) |
|
|
|
Actual FY
22(excl. IFRS16) |
|
|
|
IFRS16 impact |
|
|
|
(€ million) |
|
|
Actual |
|
|
|
Actual |
|
|
|
Actual |
|
|
|
|
|
Current rate |
|
|
|
Current rate |
|
|
|
Current rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES |
|
|
2,776 |
|
|
|
2,776 |
|
|
|
+0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA ADJ |
|
|
161 |
|
|
|
132 |
|
|
|
+29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITA |
|
|
55 |
|
|
|
50 |
|
|
|
+5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow |
|
|
59 |
|
|
|
31 |
|
|
|
+28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF before Financial & Tax |
|
|
88 |
|
|
|
59 |
|
|
|
+29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF after Financial & Tax |
|
|
6 |
|
|
|
(16) |
|
|
|
+21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 3 – Reconciliation of
adjusted operating indicators
In addition to published results, and with the
aim of providing a more comparable view of the evolution of its
operating performance in 2022 compared to 2021, Vantiva 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).
|
Full Year |
In € million |
2022 |
2021 |
Change1 |
EBIT from continuing operations |
(11) |
(13) |
2 |
Restructuring
charges, net |
(17) |
(31) |
13 |
Net impairment
gain (losses) on non-current operating assets |
(5) |
(2) |
(3) |
Other income
(expense) |
(13) |
10 |
(23) |
PPA
amortization |
(31) |
(30) |
(1) |
Adjusted EBITA from continuing operations |
55 |
39 |
16 |
Depreciation and
amortization (“D&A”) ² |
(106) |
(101) |
(5) |
Adjusted EBITDA from continuing operations |
161 |
141 |
20 |
1 Variation at current rates |
|
|
|
|
The caption “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).
The caption “Adjusted EBITA” corresponds to the profit
(loss) from continuing operations before tax and net financial
income (expense), net of other income (expense) and amortization of
purchase accounting items.
###
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. 2021
Universal Registration Document (Document d’enregistrement
universel) has been filed with the French Autorité des marchés
financiers (AMF) on April 5, 2022, under number D-22-0237 and an
amendment to the 2021 URD has been filed with the AMF on April 29,
2022, under number D-22-0237-A01.
###About
Vantiva
Pushing the Edge
Vantiva
shares are admitted to trading on the regulated market of
Euronext Paris (VANTI) and are tradable in the form of American
Depositary Receipts (ADR) in the United States on the OTC
Pink market (TCLRY).
Vantiva, formerly known as Technicolor, is
headquartered in Paris, France. It is an independent company which
is a global technology leader in designing, developing and
supplying innovative products and solutions that connect consumers
around the world to the content and services they love – whether at
home, at work or in other smart spaces. Vantiva has also earned a
solid reputation for optimizing supply chain performance by
leveraging its decades-long expertise in high-precision
manufacturing, logistics, fulfillment and distribution. With
operations throughout the Americas, Asia Pacific and EMEA, Vantiva
has been recognized as a strategic partner by leading firms across
various vertical industries, including network service providers,
software companies and video game creators for over 25 years.
Vantiva is committed to the highest standards of corporate social
responsibility and sustainability across all aspects of its
operations. For more information, please visit www.vantiva.com and
follow us on LinkedIn and Twitter.
Corporate press:vantiva.press@image7.fr |
Investor Relations
Contact:investor.relations@vantiva.net |
1 Before interest and tax
Vantiva (EU:VANTI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Vantiva (EU:VANTI)
Historical Stock Chart
From Sep 2023 to Sep 2024