Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (January 2015)
34 slides from Vivendi's investor presentation, January 2015
Slide 1: Investor Presentation January 2015
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 INVESTOR PRESENTATION January 2015 IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimers at the end of this presentation
Slide 2: Vivendi is undergoing a significant transformation
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 VIVENDI IS UNDERGOING A SIGNIFICANT TRANSFORMATION Ongoing transition to media & content Building partnerships with distributors Improved financial situation Creating a new Vivendi culture 2
Slide 3: Highlights
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 HIGHLIGHTS SFR disposal process on track Closing expected on November 27, 2014 Signing of GVT sale to Telefonica Brazil on September 18, 2014 Closing expected in Q2 2015 3
Slide 4: Four pillars for Vivendi
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 FOUR PILLARS FOR VIVENDI Strategic Relationships with Digital Platforms Accelerated International Development Customer Knowledge Talent Management 4
Slide 5: Strategic Relationships with Digital Platforms
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 1 Strategic Relationships with Digital Platforms Vivendi offers unique and distinctive content 5
Slide 6: Accelerated International Development
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 2 Accelerated International Development France Rest of Europe €4.5 bn €2.5 bn 44% of total 24% of total North America €2.0 bn 20% of total Rest of the world €1.3 bn 12% of total 6
Slide 7: Customer Knowledge
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 3 Customer Knowledge +12% 10.3 9.2 5.3 Other +3% 5.1 revenues Revenues 5.0 +22% from 4.1 subscriptions 2010 2013 Subscriptions represent ~50% of 2013 revenues 7
Slide 8: Talent Management
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 4 Talent Management Unparalleled know-how in discovering and managing talent 8
Slide 9: From a financial holding company to an integrated industrial media & content group
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 FROM A FINANCIAL HOLDING COMPANY TO AN INTEGRATED INDUSTRIAL MEDIA & CONTENT GROUP Strict Reinforced Group Rigorous Investment Monitoring Integration Criteria ► Tight operating ► Experienced and ► Priority to organic growth governance c
Slide 10: Third Quarter 2014 Results
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 THIRD QUARTER 2014 RESULTS
Slide 11: Scope of consolidation and main currencies
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES In compliance with IFRS 5, GVT (from Q3 2014) , SFR (from Q1 2014) as well as Maroc Telecom and Activision Blizzard (from Q2 2013) have been reported as discontinued operations. In addition, Vi
Slide 12: Key financial metrics at end September 2014
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 KEY FINANCIAL METRICS AT END SEPTEMBER 2014 % Change % Underlying change* Year-on-year Year-on-year Revenues: € 7,118 m – 2.4 % – 1.1 % EBIT: € 674 m + 34.0 % Net Income, group share: € 2,752 m + 95.0 % EBITA: € 765 m – 2.5 % +
Slide 13: Consolidated P&L
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 CONSOLIDATED P&L In euro millions - IFRS 9M 2013 9M 2014 Change % Revenues 7,293 7,118 -175 - 2.4% Cost of revenues (4,267) (4,243) Margin from operations 3,026 2,875 -151 - 5.0% Selling, general and administrative expenses excluding am
Slide 14: Adjusted P&L
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 ADJUSTED P&L % change In euro millions - IFRS 9M 2013 9M 2014 Change % change at constant perimeter and constant currency* Revenues 7,293 7,118 - 175 - 2.4% - 1.1% EBITDA 1,119 1,079 - 40 - 3.6% - 1.2% Depreciation and Amortization* (22
Slide 15: Revenues by activities
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 REVENUES BY ACTIVITIES Constant Constant perimeter In euro millions - IFRS 9M 2013 9M 2014 Change currency and constant currency * Canal+ Group 3,857 3,967 + 2.8% + 2.8% + 0.5% Universal Music Group 3,398 3,097 - 8.9% - 5.8% - 3.5% Othe
Slide 16: EBITA by activities
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 EBITA BY ACTIVITIES Constant Constant perimeter In euro millions - IFRS 9M 2013 9M 2014 Change currency and constant * currency * Canal+ Group 647 626 - 3.2% - 3.3% - 3.9% Universal Music Group 255 274 + 7.6% + 11.3% + 29.1% Other (57)
Slide 17: Consolidated balance sheet, as of Sept. 30, 2014
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 CONSOLIDATED BALANCE SHEET, AS OF SEPT. 30, 2014 In euro millions Assets Equity and Liabilities Goodwill 9,144 Consolidated equity * 19,929 Intangible and tangible assets 4,939 Provisions 3,001 Equity affiliates and other investments 1,
Slide 18: Net debt at end September 2014
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 NET DEBT AT END SEPTEMBER 2014 Discontinued operations Net Debt CFFO Capex, Interest & Distribution Cash Acquisitions, Net Debt SFR/GVT Reclassification Dec. 31, before net tax to collateralization Disposals outflows of SFR /GVT Sep. 30
Slide 19: Next event
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 NEXT EVENT Full year 2014 results February 27, 2015 19
Slide 20: I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5
Slide 21: Appendices
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 APPENDICES Details of Business Operations: slides 22-25 Details for Discontinued Operations: slides 26-29 Detailed Vivendi Financial Results: slides 30-32 Glossary, Disclaimer & Contacts: slides 33-34
Slide 22: Canal+ Group highlights
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 Constant In euro millions - IFRS 9M 2013 9M 2014 Change perimeter HIGHLIGHTS and constant currency * ■ Global subscription portfolio at 14.8m, +605k yoy, Revenues 3,857 3,967 + 2.8% + 0.5% due to strong performance in Africa and Vietnam
Slide 23: Canal+ Group subscribers and KPIs
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 In '000 September 30, 2013 September 30, 2014 Change Group individual subscribers 10,074 10,611 + 537 Mainland France 5,983 6,014 + 32 International 4,091 4,596 + 505 Poland 2,216 2,154 - 62 Overseas 479 492 + 13 Africa 893 1,272 + 379
Slide 24: Universal Music Group highlights
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 Constant perimeter In euro millions - IFRS 9M 2013 9M 2014 Change and constant HIGHLIGHTS currency * Revenues 3,398 3,097 - 8.9% - 3.5% ■ Revenues down 3.5%* due to lower recorded Recorded music 2,733 2,447 - 10.5% * - 4.5% music sales
Slide 25: UMG revenues and Q4 2014 releases
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 Constant Recorded Music Revenues 9M 2013 9M 2014 perimeter and In euro millions - IFRS 9M 2014 constant Europe 37% 38% currency * North America 43% 41% Recorded music 2,447 - 4.5% Asia 12% 13% Physical sales 874 - 12.4% Digital music sa
Slide 26: SFR highlights
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 In euro millions - IFRS 9M 2013 9M 2014 Change (1)(2) HIGHLIGHTS Revenues 7 616 7 396 -2.9% ■ Slowdown of revenues erosion with revenues down 2.9%(2) Retail 5 156 4 831 -6.3% (-4.2% on a comparable basis), and improving trends in Q3 (2)
Slide 27: SFR mobile and internet group data
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 MOBILE – GROUP DATA 9M 2013 9M 2014 Change Mobile Customers (in’000)* 21,144 21,414 +1.3% Acquisition costs (in €m) 303 261 (41) Retention costs (in €m) 386 351 (35) INTERNET – GROUP DATA 9M 2013 9M 2014 Change Internet Customer base (i
Slide 28: GVT highlights
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 Constant In euro millions - IFRS 9M 2013 9M 2014 Change currency HIGHLIGHTS Revenues 1,297 1,307 + 0.8% + 12.7% ■ 12.7%* revenue growth mainly driven by continued Retail & SME 1,180 1,203 + 2.0% + 14.1% growth in the Retail & SME despit
Slide 29: GVT operating and financial data
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 September September In '000 Change In BRL millions - IFRS 9M 2013 9M 2014 Change 30, 2013 30, 2014 Retail & SME - Homes passed 10,108 11,005 + 8.9% Total Revenues 3,599 4,057 + 12.7% Retail & SME 3,274 3,734 + 14.1% Retail & SME - Reven
Slide 30: Revenues / EBITDA / EBITA for Q3 & 9M
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 REVENUES / EBITDA / EBITA FOR Q3 & 9M Constant Constant Q3 2013 Q3 2014 Change Constant perimeter Revenues 9M 2013 9M 2014 Change Constant perimeter and currency and constant In euro millions - IFRS currency constant currency * currency
Slide 31: Interest & income tax
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS 9M 2013 9M 2014 Interest (201) (65) Interest expense on borrowings (385) (224) Average interest rate on borrowings (%) 3.13% 2.66% Average outstanding borrowings (in eur
Slide 32: Reconciliation of earnings to adjusted net income
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME In euro millions - IFRS 9M 2013 9M 2014 % change Earnings attributable to Vivendi SA shareowners (*) 1,411 2,752 + 95.0% Amortization of intangible
Slide 33: Glossary
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 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 that they are relevant indicators of the gro
Slide 34: Important legal disclaimer / contacts
I n v e s t o r P r e s e n t a t i o n – J a n u a r y 2 0 1 5 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, p