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Vivendi — Debt Investor Presentation (June 2010)
28 slides from Vivendi's debt investor presentation, Jun 16, 2010
Slide 1: Credit Investor Presentation
Credit Investor Presentation Philippe Capron Member of the Management Board & Chief Financial Officer June 16, 2010 IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentation For latest result
Slide 2: Vivendi fully controls the businesses it operates
Vivendi fully controls the businesses it operates 100% 100% / 80% 56% #1 in pay-TV #1 alternative telecom #1 worldwide in France in France in music 53%* 59%* 100% #1 in telecom #1 worldwide in #1 alternative telecom in Morocco video games in Brazil * Based on shares outstanding Credit Investor Prese
Slide 3: Vivendi is focusing on subscriptions in telecoms and media
Vivendi is focusing on subscriptions in telecoms and media 73 million subscriptions generating 75% of revenues in 2009 Revenues increased 1.5x from 2004 to 2009 in both communications and entertainment Revenues: €17.9bn Revenues: €27.1bn * Vivendi Universal Entertainment 16% Universal Music Group 22
Slide 4: High and predictable operating income and cash flows
Vivendi is delivering high and predictable operating income and cash flows EBITA CFFO 5,237 +8% p.a. CAGR 5,390 +6% p.a. CAGR 5,055 4,881 4,953 4,721 4,466 4,370 4,157 EUR millions , IFRS EUR millions , IFRS 3,985 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Credit Investor Presentation – June
Slide 5: Ideally positioned to capture growing demand for mobility, broadband and digital content
Vivendi is ideally positioned to capture growing demand from consumers for mobility, broadband and digital content New technologies enable consumers, wherever they are, to access a multitude of interactive services and the Internet Vivendi is a major player in this new digital era: Creating conten
Slide 6: Disciplined capital allocation priorities
Vivendi will remain disciplined in its capital allocation priorities Continued investments in content and networks to leverage Vivendi’s leading communications and entertainment assets Deliver dividends to shareholders with a distribution rate of at least 50% of Adjusted Net Income Buy out minority
Slide 7: Conservative financial policy
Conservative financial policy Commitment to maintaining current BBB(1) credit ratings reaffirmed Low leverage levels: Consolidated Financial Net Debt / Consolidated EBITDA as of December 31, 2009 <1.3 (<0.9 excluding the GVT acquisition debt and EBITDA consolidated since November 13, 2009) Retain at
Slide 8: Well balanced bond maturity schedule and bank credit lines
Bank credit lines available until 2012 Well balanced bond maturity schedule with no significant redemption before 2012 7.5 6.8 6.0 6.0 Vivendi Vivendi 5.2 5.0 SFR SFR 4.0 3.9 3.7 3.3 2.7 2.5 2.3 2.0 in euro billions in euro billions 1.5 1.5 1.3 0.7 End June 2010 End 2010 End 2011 End 2012 End 2013 E
Slide 9: 2010 is off to a good start
2010 is off to a good start Very strong first quarter earnings in line with full year 2010 guidance 14% EBITA increase in challenging economic environment thanks to: Activision Blizzard: Outstanding growth benefiting from tremendous product success SFR: Growth in postpaid mobile and broadband custom
Slide 10: Financial net debt evolution
In euro billions- IFRS Financial net debt evolution Dividends paid Net financial December 31, CFFO Interest & tax to SFR minority investments March 31, 2009 after Capex paid and other shareholder and other 2010 (0.2) (0.4) (9.6) + 0.8 (0.1) (9.5) Including: Including: Dividends from NBC Universal: €
Slide 11: Our objectives for 2010
Our objectives for 2010 We have planned 2010 with a reasonably conservative stance, due in part to the continued uncertainties relating to the broader macroeconomic environment and consumer demand, as well as growing regulatory pressure In 2010, we remain committed to building growth for the future
Slide 12: Outlook for 2010
Outlook for 2010 Confirmed 2010 guidance: Slight increase in EBITA and high dividend maintained EBITA above €620m (vs above €600m) Slightly upgraded Double digit EBITA margin Confirmed Mobile: Slight decrease in EBITDA Confirmed Broadband & Fixed: Increase in EBITDA (vs slight increase) Slig
Slide 13: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #1 Alternative Telecoms France #1 Telecoms Morocco #1 Alternative Telecoms Brazil #1 Pay-TV France Credit Investor Presentation – June 16, 2010 13
Slide 14: Appendices
vivendi Appendices
Slide 15: Vivendi to sell its 20% stake in NBC Universal
Vivendi to sell its 20% stake in NBC Universal for $5.8bn* Vivendi will sell its 20% stake in NBC Universal to GE for $5.8bn and will not be a shareholder in the new entity resulting from the joint venture between NBC Universal and Comcast content assets: If the GE–Comcast transaction is not compl
Slide 16: GVT: A major source of long lasting growth
GVT: A major source of long lasting growth Following April public tender offer, Vivendi now owns 100% of GVT’s share capital Very strong growth in Q1… Revenues* up 37% Adjusted EBITDA* up 47% … Leading to recent upgrade in full year 2010 outlook: Revenues* up 29% vs +26% previously Adjusted EBITDA*
Slide 17: Class action: a long process
Class action: a long process On January 29, 2010, a jury decided against Vivendi, but cleared its former executives. Vivendi was found to have acted recklessly between October 2000 and August 2002. Jury reduced plaintiffs’ requested damages by more than 50%. Next steps: Entry of verdict by the jud
Slide 18: Class action: Vivendi will appeal to overturn jury verdict
Class action: Vivendi will appeal to overturn jury verdict Vivendi has many grounds for appeal including: Individuals exonerated but Vivendi liable for miscommunication ! Court’s decision to include French shareholders in the class Court’s decision regarding its jurisdiction Plaintiffs’ erro
Slide 19: Subscriptions model offers resilience in Europe, with non-Euro exposure
Vivendi’s subscriptions model offers resilience in Europe (73% of sales), combined with non-Euro exposure for 48% of valuation 2009 revenues* Sum-of-the-part valuation** Breakdown by currencies Breakdown by currencies MAD MAD BRL USD 8% Other 18% 2% Other 11% 6% BRL 2% 8% GBP 5% USD 19% GBP 1% EUR 5
Slide 20: USD/EUR exchange rate evolution favorable to Vivendi
USD/EUR exchange rate current evolution is favorable to Vivendi given its US exposure 1.60 1.55 1.50 1.45 1.40 1.35 1.30 1.25 1.20 1.15 01-Jan-04 01-Jul-04 01-Jan-05 01-Jul-05 01-Jan-06 01-Jul-06 01-Jan-07 01-Jul-07 01-Jan-08 01-Jul-08 01-Jan-09 01-Jul-09 01-Jan-10 USD/EUR exchange rate has evolved
Slide 21: Greece does not jeopardize economic recovery in Europe
Greece (2% of European GDP) does not jeopardize economic recovery in Europe and unemployment is stabilizing slightly above long term average: France confirms its resilience among European countries Real GDP * Unemployment rate * France (red) and Europe-27 (blue) France (red) and Europe-27 (blue) Gap
Slide 22: Debt details
vivendi Debt details
Slide 23: Main bonds of Vivendi SA and SFR
Main bonds of Vivendi SA and SFR Amount Coupon Maturity outstanding (€m) Vivendi SA October 2011 na 700 February 2012 3.875% 600 April 2013* 5.750% 578 October 2013 4.500% 700 January 2014 7.750% 1,120 December 2016 4.250% 500 March 2017 4.000% 750 April 2018* 6.625% 578 December 2019 4.875% 700 Tot
Slide 24: Syndicated Bank facilities of Vivendi SA and SFR
Syndicated Bank facilities of Vivendi SA and SFR (in million of euros) Maximum Maturity amount Vivendi SA €2.0 billion revolving facility (April 2005) April 2012 2,000 €2.0 billion revolving facility (August 2006) August 2012 271 August 2013 1,729 €2.0 billion revolving facility (February 2008) Febr
Slide 25: Main financial covenants in bank credit lines
Main financial covenants in the Vivendi SA and SFR banks credit lines At Vivendi SA Ratio of Proportionate Financial Net Debt to Proportionate EBITDA * ≤ 3 At SFR: Ratio of Financial Net Debt to consolidated EBITDA ≤ 3.5 Ratio of consolidated earning from operations to consolidated net financing cos
Slide 26: Glossary
Glossary Adjusted earnings before interest and income taxes (EBITA): EBIT (defined as the difference between charges and income that do not result from financial activities, equity affiliates, discontinued operations and tax) before the amortization of intangible assets acquired through business com
Slide 27: Investor Relations team
Investor Relations team Jean-Michel Bonamy Executive Vice President Investor Relations +33.1.71.71.12.04 [email protected] Paris 42, Avenue de Friedland New York 75380 Paris cedex 08 / France 800 Third Avenue Phone: +33.1.71.71.32.80 New York, NY 10022 / USA Fax: +33.1.71.71.14.16 Phone
Slide 28: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, business, strategy and plans as well as expectations regarding the payment of dividends. Although Vivendi believes that such forward-looking statemen