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Vivendi — Debt Investor Presentation (March 2012)

34 slides from Vivendi's debt investor presentation, March 2012

  1. Slide 1: US Credit Investor Update

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 March 2012 Philippe Capron Member of the Management Board & Chief Financial Officer US Credit Investor Update IMPORTANT NOTICE: Investors are strongly urged to read the important disclaimer at the end of this presentation

  2. Slide 2: Important Legal Disclaimer

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 IMPORTANT LEGAL DISCLAIMER This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of Vivendi or its consolidated subsidiaries (the “Group”), or the solicitation o

  3. Slide 3: Activision Blizzard Standalone Definition & Disclaimer

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 ACTIVISION BLIZZARD STANDALONE DEFINITION & DISCLAIMER NON-GAAP financial measures Activision Blizzard provides net revenues, net income (loss), earnings (loss) per share and operating margin data and guidance both including (in accorda

  4. Slide 4: Group Overview

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 GROUP OVERVIEW  58,318 employees worldwide at 2011 end  Market cap.: $22.9bn*  2011 key financials: Revenues: €28,813m (of which €16.8bn in France); EBITDA: €8,493m; EBITA: €5,860m; Adjusted Net Income: €2,952m 60%* 100% 100% 53%** 1

  5. Slide 5: Reinforcement of the Attractiveness of Vivendi's Business Mix

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 REINFORCEMENT OF THE ATTRACTIVENESS OF VIVENDI’S BUSINESS MIX Continued focus on balance sheet with a consistent commitment to BBB/Baa2/BBB rating since 2005 Recent past: 2008–2011 Current Next  Simplified group structure and  Strong

  6. Slide 6: Simplified Group Structure with a Focus on Cash Access

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 SIMPLIFIED GROUP STRUCTURE WITH A FOCUS ON CASH ACCESS 100% 100% 100% 100%** 53%* 60%* Access to 100% of cash / cash flows Dividends Total Revenues: €28,813m*** Total EBITDA: €8,493m**** Total CFFO: €4,694m***** Maroc GVT Universal GVT

  7. Slide 7: 2011 Earnings Exceeding Guidance

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 2011 EARNINGS EXCEEDING GUIDANCE  Revenue growth of 0.5% at constant currency 2011 change  Record Adjusted Net Income up 9% vs. 2010, mainly due to SFR transaction impact* Revenues €28,813m +0.5%** and powerful growth engines (GVT and

  8. Slide 8: Superior Growth Engines More Than Offsetting Tough Environment

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 SUPERIOR GROWTH ENGINES MORE THAN OFFSETTING TOUGH ENVIRONMENT IN MATURE BUSINESSES €5,726m -€389m +€85m +€438m €5,860m EBITA 2010 SFR and Maroc Canal+, UMG Activision Blizzard EBITA 2011 Telecom and Others and GVT 8

  9. Slide 9: Outlook

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 OUTLOOK

  10. Slide 10: 2012: Off to a Good Start in Most of Vivendi's Businesses

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 2012: OFF TO A GOOD START IN MOST OF VIVENDI’S BUSINESSES...  Successful pay TV launch in Brazil with already ~80k subscribers*  Approaching inflection point for US recorded music market  Strong Christmas sales at Canal+ France and S

  11. Slide 11: Tougher-than-Expected Environment in France

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 ... IN A TOUGHER-THAN-EXPECTED ENVIRONMENT IN FRANCE  Economic and financial environment still soft  New tax environment in France from 2011: – Higher VAT rate for telecom and pay TV operators – Change in the Consolidated Global Profi

  12. Slide 12: Action Plan to Address Tougher French Telecoms Market

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 ACTION PLAN TO ADDRESS TOUGHER FRENCH TELECOMS MARKET 1 Develop SFR subscriber base and adjust tariffs with segmented approach ► Quick adjustment of “Red” web-only tariffs and then launch of attractive limited editions for postpaid (“Ca

  13. Slide 13: Clear and Tangible Initiatives for Future Cash Flow Generation

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 CLEAR AND TANGIBLE INITIATIVES TO PAVE WAY FOR FUTURE CASH FLOW GENERATION ACTIONS OUTLOOK CONTINUED INVESTMENTS IN BRAZIL GVT in line with plans; contribution to CFFO  ~€2.2bn investment over 2010-2012 to deploy GVT expected to increa

  14. Slide 14: Significant Cost Saving Initiatives Across All Businesses for 2012-2015

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 SIGNIFICANT COST SAVING INITIATIVES ACROSS ALL BUSINESSES FOR 2012-2015 Continue to undertake productivity improvement initiatives across key areas of operating expenses contributing to improved margins Cost reduction plan of €100m savi

  15. Slide 15: 2012 Outlook

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 2012 Outlook ACTIVISION BLIZZARD EBITA around €750m Double digit EBITA margin at constant perimeter3  UNIVERSAL MUSIC Focus on organic growth, GROUP sustained high margins and cash flows  Adapt to a challenging environment in 2012 and

  16. Slide 16: Financial Policy

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 FINANCIAL POLICY

  17. Slide 17: 2011 Net Debt Evolution

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 2011 NET DEBT EVOLUTION Net Debt Dividends Dividends Net financial Net Debt December 31, CFFO Interest & tax paid to paid to investments December 31, 2010 after Capex paid and other minorities shareholders and other 2011 (1.8) (1.2) (8.

  18. Slide 18: Conservative Leverage Ratios

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 CONSERVATIVE LEVERAGE RATIOS Consolidated Financial Net Debt (€bn) and EBITDA ratio (x) Proportionate Financial Net Debt (€bn) and Proportionate EBITDA ratio (x) 12,9 12,0 9,6 8,9 8,3 8,1 7,8 1,8x 7,4 1,8x 1,7x 1,4x 1,4x 1,3x 1,2x 1,0x

  19. Slide 19: Prudent Funding Strategy with a Focus on Liquidity

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 PRUDENT FUNDING STRATEGY WITH A FOCUS ON LIQUIDITY  Objectives – Increase the average duration of debt: average maturity of debt of 4.2 years* vs. 4.0 in 2010 – Increase bonds and reduce funded bank debt: issuance of €4bn of bonds betw

  20. Slide 20: Manageable Debt Maturity Profile Supported by Strong Liquidity

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 MANAGEABLE DEBT MATURITY PROFILE* SUPPORTED BY A STRONG LIQUIDITY (as of February 29, 2012) 369 ■ Bank debt (drawn) ■ Bank debt (undrawn) ■ Bonds 70 2 240 1 100 2 360 1 500 2 430 54 217 2 000 1 500 1 224 1 194 1 000 1 024 700 750 500 20

  21. Slide 21: Downward Adjustment of Shareholder Remuneration

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 DOWNWARD ADJUSTMENT OF SHAREHOLDER REMUNERATION  Adjusting shareholder remuneration to new environment… – 2011 distribution : a cash dividend of €1 per share, as well as one bonus share per 30 shares held – Cash dividends to represent

  22. Slide 22: Key Investment Highlights

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 KEY INVESTMENT HIGHLIGHTS 1 Global and diversified telecommunications, media and entertainment company 2 #1 global or regional market positions across the business portfolio 3 Simplified group structure with a focus on cash control 4 At

  23. Slide 23: Appendices

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 APPENDICES

  24. Slide 24: SFR: #1 Alternative Telecom Operator in France

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 SFR: #1 ALTERNATIVE TELECOM OPERATOR IN FRANCE In euro millions - IFRS 2011 2010 Change  Largest mobile and fixed line operator in Europe among the non incumbent operators Revenues 12,183 12,577 - 3.1%  Integrated telecoms operator of

  25. Slide 25: Activision Blizzard: #1 Worldwide in Video Games

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 ACTIVISION BLIZZARD: #1 WORLDWIDE IN VIDEO GAMES IFRS - 2011 2010 Change Constant  Market leader in North America and Europe* In euro millions currency  Top rated video games include: World of Warcraft, Call of Duty, Activision 2,047

  26. Slide 26: Universal Music Group: #1 Worldwide in Music

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 UNIVERSAL MUSIC GROUP: #1 WORLDWIDE IN MUSIC In euro millions - IFRS 2011 2010 Change Constant  #1 worldwide in music recording with market leading positions in most currency of the world’s major music markets Revenues 4,197 4,449 - 5.

  27. Slide 27: Maroc Telecom: #1 Telecom Operator in Morocco

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 MAROC TELECOM: #1 TELECOM OPERATOR IN MOROCCO In euro millions - IFRS 2011 2010 Change Constant  Incumbent operator in Morocco currency  Very dynamic country with 32.2m population, c. 50% of which under 25 years old Revenues 2,739 2,8

  28. Slide 28: GVT: #1 Alternative Telecom Operator in Brazil

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 GVT: #1 ALTERNATIVE TELECOM OPERATOR IN BRAZIL In euro millions - IFRS 2011 2010 Change Constant  Revenues doubled since Vivendi’s acquisition end of 2009 Currency  Best performing high-speed Brazilian broadband operator with Revenues

  29. Slide 29: Canal+ Group: #1 Pay TV in France

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 CANAL+ GROUP: #1 PAY TV IN FRANCE In euro millions - IFRS 2011 2010 Change Constant  End-to-end operations: premium and theme channel publishing, currency channel bundling and pay-TV distribution over DSL, cable, satellite, DTT and ove

  30. Slide 30: Historical Financials

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 HISTORICAL FINANCIALS IFRS financials (€m) IFRS financials (€m) Revenues 28 878 28 813 Adjusted Net Income 2 952 27 132 2 735 2 698 25 392 2 585 2008 2009 2010 2011 2008 2009 2010 2011 EBITDA Capex 3 357 3 340 8 309 8 493 2 562 7 683 2

  31. Slide 31: Close to 20% of Revenue Generated in Fast-Growing Economies

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 OVERALL, CLOSE TO 20% OF VIVENDI’S REVENUE GENERATED IN FAST-GROWING ECONOMIES ► Close to 20% of revenues in 2011 ► €5.5bn revenues in 2011 vs. €3.6bn in 2008 31

  32. Slide 32: Glossary

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 GLOSSARY Adjusted earnings before interest and income taxes (EBITA): As defined by Vivendi, EBITA corresponds to EBIT (defined as the difference between income and charges that do not result from financial activities, equity affiliates,

  33. Slide 33: Investor Relations Team / Treasury Team

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2 INVESTOR RELATIONS TEAM TREASURY TEAM Jean-Michel Bonamy Dominique Gibert Executive Vice President Deputy Chief Financial Officer Head of Investor Relations +33.1.71.71.17.09 +33.1.71.71.12.04 [email protected] jean-michel.bo

  34. Slide 34: U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2

    U S C r e d i t I n v e s t o r U p d a t e – M a r c h 2 0 1 2

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