Vivendi Se · EURONEXT:VIV
Vivendi — Q3 2017 Earnings Presentation
38 slides from Vivendi's earnings presentation, Nov 16, 2017
Slide 1: Third Quarter 2017 Results
Nov. 16, 2017 THIRD QUARTER 2017 RESULTS IMPORTANT NOTICE Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentation
Slide 2: Q3 2017 Highlights
9M 2017 Results – November 16, 2017 Q3 2017 HIGHLIGHTS Strong performance in Q3 2017 ■ Revenues: €3,184m, +2.7% at constant currency and perimeter and +19.3% incl. Havas ■ Income from operations: €340m, +3.5% at constant currency and perimeter and +17.2% incl. Havas ■ EBITA: €293m, -5.2% at constant
Slide 3: Q3 2017 Highlights: Investing for the future
9M 2017 Results – November 16, 2017 Q3 2017 HIGHLIGHTS Vivendi continues to invest for the future and for long-term value creation ■ CanalOlympia, Live, Dailymotion, Vivendi Content, Group Vivendi Africa Gaming: Vivendi’s investments in video games are generating value: ■ Gameloft is the worldwide l
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Slide 5: Scope of Consolidation and Main Currencies
9M 2017 Results – November 16, 2017 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES Havas has been consolidated since July 3, 2017. Constant perimeter reflects the impacts of the Havas, Gameloft, Paddington and Thema America acquisitions. As a reminder, Gameloft, Paddington and Thema America have been co
Slide 6: Q3 2017 Key Financial Metrics
9M 2017 Results – November 16, 2017 Q3 2017 KEY FINANCIAL METRICS % underlying Q3 2017 % Change YoY change* YoY Revenues € 3,184 m + 19.3 % + 2.7 % EBITA € 293 m + 5.7 % - 5.2 % EBIT € 310 m + 4.8 % Adjusted Net Income € 273 m - 19.6 % Net Cash / (Net Debt) as of Sept. 30, vs. a € 1,068 m net cash p
Slide 7: Key Financial Metrics H1 and Q3
9M 2017 Results – November 16, 2017 KEY FINANCIAL METRICS H1 AND Q3 % % % % H1 2017 Change underlying Q3 2017 Change underlying in € million YoY change* YoY YoY change* YoY Revenues 5,437 +7.8% +4.8% 3,184 +19.3% +2.7% UMG 2,666 +15.2% +14.0% 1,319 +0.8% +5.3% Canal+ Group 2,568 -2.7% -2.4% 1,257 -0
Slide 8: Universal Music Group
9M 2017 Results – November 16, 2017 UNIVERSAL MUSIC GROUP Constant Constant Constant Constant Q1 2017 perimeter and Q2 2017 perimeter and Q3 2017 perimeter and 9M 2017 perimeter and currency * currency * currency * currency * Revenues 1,284 + 12.7% 1,382 + 15.2% 1,319 + 5.3% 3,985 + 10.9% Recorded r
Slide 9: Universal Music Group
9M 2017 Results – November 16, 2017 UNIVERSAL MUSIC GROUP Constant HIGHLIGHTS In euro millions - IFRS 9M 2016 9M 2017 Change perimeter and currency * ■ Strong performance with 10.9%* growth in revenues. Revenues 3,623 3,985 + 10.0% + 10.9% ■ Recorded music revenues were up 12.1%*, driven by Recorded
Slide 10: Canal+ Group
9M 2017 Results – November 16, 2017 CANAL+ GROUP ■ Sequential improvement of group results Revenues (in euro millions) EBITA (in euro millions) -3.5%* -1.3%* 0.0%* c. +5%* -67.5%* -5.5%* +11.0%* c. +€211m c. +45%* c. 350 e. 5,253 169 155 240 139 1,351 119 114 1,328 1,311 1,278 1,290 57 1,263 c. 24 e
Slide 11: Canal+ Group – Subscriber Base Evolution
9M 2017 Results – November 16, 2017 CANAL+ GROUP – SUBSCRIBER BASE EVOLUTION Retail subs* - Gross adds Retail subs* - Cancellations (in thousands) (in thousands) +20.9% -21.4% +43.2% Q1 Q2 Q3 133 136 110 98 95 77 -139 -178 -159 -178 -249 -257 Q1 Q2 Q3 +3.2% 0.0% -12.6% Individual subscribers in Main
Slide 12: Canal+ Group
9M 2017 Results – November 16, 2017 CANAL+ GROUP Constant HIGHLIGHTS In euro millions - IFRS 9M 2016 9M 2017 Change perimeter and currency * ■ Sequential improvement of Canal+ Group results. Revenues 3,902 3,825 - 2.0% - 1.6% ■ Revenues down 1.6%* over 9M but, flat over the 3rd quarter Pay-TV Mainla
Slide 13: Havas
9M 2017 Results – November 16, 2017 HAVAS Constant HIGHLIGHTS In euro millions - IFRS 9M 2016 9M 2017 Change perimeter and currency * ■ Havas has been consolidated since July 3, 2017, i.e. three Revenues - 525 months of contribution recognized in Vivendi’s accounts for the period ended September 30,
Slide 14: Havas
9M 2017 Results – November 16, 2017 HAVAS ■ Organic growth in the sector over the last three years: 125 120 115 Havas 110 105 100 2013 2014 2015 2016 9M 2017 ■ Changing environment in the Media segment brings new opportunities: agencies will take advantage of these opportunities by adapting their mo
Slide 15: Gameloft
9M 2017 Results – November 16, 2017 GAMELOFT Constant HIGHLIGHTS In euro millions - IFRS 9M 2016* 9M 2017 Change perimeter and currency ** * ■ Gameloft has been consolidated since June 29, 2016. Revenues 63 193 na na ■ In 9M 2017, Gameloft released 8 new games, including o/w Advertising revenues 4 2
Slide 16: Ticketing - Live - Dailymotion - Studio+…
9M 2017 Results – November 16, 2017 TICKETING - LIVE - DAILYMOTION - STUDIO+… VIVENDI VILLAGE NEW INITIATIVES Constant Constant In euro millions - IFRS 9M 2016 9M 2017 Change perimeter and In euro millions - IFRS 9M 2016 9M 2017 Change perimeter and currency * currency * Revenues 78 81 + 4.0% + 8.7%
Slide 17: Corporate
9M 2017 Results – November 16, 2017 CORPORATE In euro millions - IFRS 9M 2016 9M 2017 Change Constant perimeter and HIGHLIGHTS currency * ■ Income from operations was down due to higher legal fees mostly Income from operations (70) (72) + 0.0% related to Italy. EBITA (74) (79) + 0.0% * At constant c
Slide 18: Consolidated P&L
9M 2017 Results – November 16, 2017 CONSOLIDATED P&L In euro millions - IFRS 9M 2016 9M 2017 % Revenues 7,712 8,621 + 11.8% Income from operations 730 741 + 1.4% EBITA 664 645 - 3.0% Amortization and depreciation of intangible assets acquired through business (168) (92) combinations Reversals of res
Slide 19: Consolidated Balance Sheet
9M 2017 Results – November 16, 2017 CONSOLIDATED BALANCE SHEET In euro millions December 31, September 30, December 31, September 30, Assets Equity and Liabilities 2016 2017 2016 2017 Goodwill 10,987 12,181 Consolidated equity * 19,612 16,998 Intangible and tangible assets 4,204 4,877 Provisions 2,1
Slide 20: Net Debt Evolution
9M 2017 Results – November 16, 2017 9M 2017 NET DEBT EVOLUTION In euro billions Net Cash Dividends to Vivendi Acquisitions and Net Debt Dec. 31, 2016 SA shareholders Share repurchases CFFO Interest and taxes investments Other Sept. 30, 2017 1.1 +0.2 +0.3 -0.5 -0.2 -0.2 -3.9 (3.2) Of which: • Acquisi
Slide 21: Appendices
9M 2017 Results – November 16, 2017 APPENDICES Details of Business Operations: slides 22-25 Detailed Vivendi Financial Results: slides 27-35 Glossary and Disclaimers: slides 37-38 21
Slide 22: Universal Music Group
9M 2017 Results – November 16, 2017 UNIVERSAL MUSIC GROUP Constant Recorded Music Revenues 9M 2016 9M 2017 perimeter and In euro millions - IFRS 9M 2017 North America 1,251 1,493 constant currency * Europe 974 997 Asia 366 403 Recorded music 3,143 + 12.1% Latin America 95 111 Physical sales 700 - 5.
Slide 23: Canal+ Group
9M 2017 Results – November 16, 2017 CANAL+ GROUP September 30, September 30, Constant In '000 Change 2016 2017 Revenues perimeter 9M 2016 9M 2017 Individual subscribers 11,005 14,203 + 3,198 In euro millions - IFRS and currency * Mainland France 5,384 8,008 + 2,624 Revenues 3,902 3,825 - 1.6% Retail
Slide 24: Havas
9M 2017 Results – November 16, 2017 HAVAS ■ Havas KPI’s, September 30, 2017: ■ Headcount At the end of September: 20,066 employees and 20,158 employees on average. Geographic breakdown: France 20%, United Kingdom 11%, Rest of Europe 22%, North America 18%, APAC 15%, LATAM 14%. ■ Growth Q3 2017 9
Slide 25: Gameloft
9M 2017 Results – November 16, 2017 GAMELOFT Revenue by geographies 9M 2016 9M 2017 RECENT RELEASE EMEA 34% 34% Asia Pacific 30% 28% Paddington Run™ North America 23% 27% Genre: Runner Latin America 13% 11% Released on Oct. 26, 2017 Average active users on 9M 2016 9M 2017 smartphone (in million) Mon
Slide 26: Detailed Financial Results
9M 2017 Results – November 16, 2017 DETAILED FINANCIAL RESULTS 26
Slide 27: Revenues / EBITDA / EBITA
9M 2017 Results – November 16, 2017 REVENUES / EBITDA / EBITA Constant Constant Constant Revenues Constant Q3 2016 Q3 2017 Change perimeter and 9M 2016 9M 2017 Change perimeter and currency In euro millions - IFRS currency currency * currency * 1,308 1,319 + 0.8% + 5.3% + 5.3% Universal Music Group
Slide 28: Revenues / Income from Operations / EBITA
9M 2017 Results – November 16, 2017 REVENUES / INCOME FROM OPERATIONS / EBITA Constant Constant Constant Revenues Constant Q3 2016 Q3 2017 Change perimeter and 9M 2016 9M 2017 Change perimeter and currency In euro millions - IFRS currency currency * currency * 1,308 1,319 + 0.8% + 5.3% + 5.3% Univer
Slide 29: Telecom Italia
9M 2017 Results – November 16, 2017 TELECOM ITALIA ■ Vivendi’s interest in Telecom Italia has been accounted for under the equity method since Dec. 15, 2015 ■ Telecom Italia’s financial information In euro millions Q1 2016 Q1 2017 Q2 2016 Q2 2017 Q3 2016 Q3 2017 Revenues 4,440 4,819 4,656 4,953 4,84
Slide 30: Reconciliation of EBIT to Income from Operations
9M 2017 Results – November 16, 2017 RECONCILIATION OF EBIT TO INCOME FROM OPERATIONS In euro millions - IFRS 9M 2016 9M 2017 EBIT 824 672 Amortization and depreciation on intangible assets acquired through business 168 92 combinations Reversals of reserve related to the Securities Class Action and L
Slide 31: Interest & Income Tax
9M 2017 Results – November 16, 2017 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS 9M 2016 9M 2017 Interest (27) (38) Interest expense on borrowings (44) (50) Average interest rate on borrowings (%) 2.16% 1.65% Average outstanding borrowings (in euro billions) 2.7 4.1 Interest in
Slide 32: Reconciliation of Earnings to Adjusted Net Income
9M 2017 Results – November 16, 2017 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ANI In euro millions - IFRS 9M 2016 9M 2017 Earnings attributable to Vivendi SA shareowners (*) 1,175 399 Amortization and depreciation of intangible assets acquired through business 168 92 combi
Slide 33: Liquidity and Capital Resources
9M 2017 Results – November 16, 2017 LIQUIDITY AND CAPITAL RESOURCES December 31, June 30, September 30, In euro millions 2016 2017 2017 Cash and cash equivalents 4,072 3,766 2,412 Cash management financial assets 998 451 200 Gross Cash Position 5,070 4,217 2,612 Bonds (3,550) (2,800) (4,150) Other f
Slide 34: Debt Maturity Profile
9M 2017 Results – November 16, 2017 DEBT MATURITY PROFILE In (€m) Borrowings of €4.9bn at the end of September 2017, including bonds for €4.2bn ■ Average maturity of total debt of 4.5 years; ■ Average interest rate on borrowings of 1.65% (2.16% in 9M 2016). * As of Sept. 30, 2017, short-term borrowi
Slide 35: Consolidated P&L - New Presentation
9M 2017 Results – November 16, 2017 CONSOLIDATED P&L - NEW PRESENTATION OLD PRESENTATION NEW PRESENTATION In euro millions - IFRS In euro millions - IFRS Revenues Revenues Income from operations Income from operations EBITA EBITA Amortization and depreciation on intangible assets acquired through Am
Slide 36: Glossary and Disclaimers
9M 2017 Results – November 16, 2017 GLOSSARY AND DISCLAIMERS 36
Slide 37: Glossary
9M 2017 Results – November 16, 2017 GLOSSARY The non-GAAP measures defined below should be considered in addition to, and not as a substitute for, other GAAP measures of operating and financial performance and Vivendi considers this to be relevant indicators of the group’s operating and financial pe
Slide 38: Important Legal Disclaimer / Contacts
9M 2017 Results – November 16, 2017 IMPORTANT LEGAL DISCLAIMER / CONTACTS Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements with respect to Vivendi's financial condition, results of operations, business, strategy, plans, and outlook of Vivendi