Xilam Animation (XIL) investor relations material

Executive summary

• FY 2025 marked the end of the industry downturn that began in 2023, with a new phase of value creation, renewed growth trajectory, and a dynamic commercial approach leading to several proprietary series launches.

• Launched three new properties and new seasons for major franchises, reinforcing long-term value and a strong foundation for future growth.

• Strategic focus on proprietary production, with significant investment and increased production output.

• Strict cost discipline and a strong cash position enabled confidence entering 2026, with positive reception for the feature film Lucy Lost.

Financial highlights

• Total operating revenue reached €15.8M for FY 2025, with grants contributing €4.2M.

• Revenue for 2025 was €10.4M, down from €23.5M year-over-year, reflecting a strategic shift to proprietary productions.

• Current operating income was €-3.6M, showing improvement in H2 and nearing breakeven.

• Cash and cash equivalents stood at €4.5M, with strong cash management and reduced corporate debt.

• Investments in production increased by 79% to €16.6M.

Outlook and guidance

• Entering a new cycle of profitable growth, leveraging proprietary content and a new feature film strategy, with plans to release one new animated feature film per year starting with Lucy Lost in early 2027.

• Ongoing cost reduction initiatives targeting a 35% decrease in fixed costs compared to 2023.

• Clear trajectory to reduce carbon emissions per FTE by 30% by 2030.

• Catalogue sales are expected to normalize in 2026, supported by new content launches.