Lionsgate Studios (LION) investor relations material

Company evolution and strategic positioning

• Transitioned to a standalone, content-focused company after separating from Starz and unifying share classes, resulting in improved liquidity and a simplified capital structure.

• Built a vast library of over 20,000 titles, generating more than $1 billion in high-margin annual revenue, with a focus on both organic and inorganic growth.

• Maintains scale in both television and feature film, with a capital-light model and manageable debt levels, targeting further de-leveraging.

• Strategic partnerships and potential for M&A remain, with interest from private equity and technology companies, while remaining open to synergistic deals.

• The separation from Starz is viewed as a successful move, unlocking value and positioning for multi-year growth.

Content strategy and franchise management

• Focuses on a balanced slate of major franchises (e.g., John Wick, Hunger Games, Twilight) and mid-budget films, with new IP like The Housemaid and Resurrection expected to drive future success.

• Actively reinvents and reboots existing IP, including upcoming projects for American Psycho, Saw, Blair Witch, and Dirty Dancing.

• Releases a mix of wide and limited-release films, such as Power Ballad and Mutiny, to diversify revenue streams.

• Television segment is a steady, bread-and-butter business, with high renewal rates and significant upside when large libraries revert for re-licensing.

• Library re-licensing yields higher margins on subsequent cycles, driven by demand from major streaming platforms.

Technology, AI, and operational efficiency

• Leveraging AI across the business to optimize programming, marketing, and cost management, with tens of millions in annual savings projected.

• AI is used to maximize library monetization, such as with the MovieSphere channel, and to enhance content discovery and distribution.

• Maintains strong IP protections, viewing ownership as a key advantage in the evolving AI landscape.

• Operates with a capital-light approach, minimizing overhead and focusing on strategic use of production stages and subsidies.

• 3 Arts management partnership enhances TV packaging and economics, with potential for future changes in ownership stake.