Vivendi Se · EURONEXT:VIV
Vivendi — Shareholder Meeting (April 2015)
51 slides from Vivendi's shareholder meeting presentation, Apr 17, 2015
Slide 1: Combined Shareholders' Meeting, Paris – April 17, 2015
April 17, 2015 Vincent Bolloré Chairman of the Supervisory Board COMBINED SHAREHOLDERS’ MEETING Paris – Friday April 17, 2015
Slide 2: Company market capitalisation
Combined Shareholders’ Meeting – Friday April 17, 2015 Market Company capitalisation* 550 300 180 130 120 80 65 60 60 60 45 …… …… * USDbn 35 2
Slide 3: Voting rights and share ownership
Combined Shareholders’ Meeting – Friday April 17, 2015 Voting rights and share ownership Company Name % Shares owned % Voting rights Larry Page 14% 54% Mark Zuckerberg 15% 53% Brian Roberts 1% 33% John Malone 3% 28% John Malone 3% 21% Rupert Murdoch 15% 39% Stenbeck family 10% 45% 3
Slide 4: A management team
Combined Shareholders’ Meeting – Friday April 17, 2015 A team A management team ■Arnaud de Puyfontaine ■Lucian Grainge ■Hervé Philippe ■Bertrand Meheut ■Stéphane Roussel ■Rodolphe Belmer ■Frédéric Crépin ■Amos Genish ■Simon Gillham 4
Slide 5: Arnaud de Puyfontaine, Chairman of the Management Board and CEO
April 17, 2015 Arnaud de Puyfontaine Chairman of the Management Board and CEO COMBINED SHAREHOLDERS’ MEETING Paris – Friday April 17, 2015
Slide 6: Vivendi's transformation
Combined Shareholders’ Meeting – Friday April 17, 2015 Vivendi’s transformation Transition from financial holding-company to integrated industrial group An efficient organisation Strict monitoring of operational performance Disciplined investment criteria 6
Slide 7: Vivendi's transformation
Combined Shareholders’ Meeting – Friday April 17, 2015 Vivendi’s transformation Media and content repositioning complete Disposal of our telecoms assets Industrial partnerships with distribution platforms Restored financial flexibility 7
Slide 8: Content creation and distribution: two priorities for the new Vivendi
Combined Shareholders’ Meeting – Friday April 17, 2015 Content creation and distribution: two priorities for the new Vivendi Several audio and video content transactions in past year March 2014 April 2014 October 2014 April 2015 Canal+ takes majority stake UMG acquires Eagle Rock Canal+ Overseas tak
Slide 9: The new Vivendi profile
Combined Shareholders’ Meeting – Friday April 17, 2015 The new Vivendi profile Key figures* The Group’s three pillars Headcount 15,571 Presence (countries) 67 Revenues €10.1bn EBITA €999M Adjusted net income €626M *Excluding telecom assets 9
Slide 10: A world-class French group
Combined Shareholders’ Meeting – Friday April 17, 2015 A world-class French group Europe zone 25% of total North America 17% of total France 44% of total Rest of the world 14% of total Revenues by geographic region 10
Slide 11: Reinforced leadership in music
Combined Shareholders’ Meeting – Friday April 17, 2015 Reinforced leadership in music ■ Recorded music: more than 30% global market share ■ Publishing: catalog exceeding 3 million titles ■ Merchandising: artist and other branded products worldwide ■ At the forefront of changing consumer habits aroun
Slide 12: Success led by a new generation of artists
Combined Shareholders’ Meeting – Friday April 17, 2015 Success led by a new generation of artists ■ Some of the best-selling albums released in 2014 World France ■ Numerous awards for UMG artists Lawrence K. Lo / Los Angeles Times / TNS Lucy Nicholson / Reuters Joel Ryan / Jacques Brinon / Invision
Slide 13: Leader in French pay and free-to-air TV
Combined Shareholders’ Meeting – Friday April 17, 2015 Leader in French pay and free-to-air TV ■ A consolidated pay-TV business Original series Sports Films / US series ■ Rapid development in free-to-air TV A leading SVoD offer 13
Slide 14: Presence in high-growth markets
Combined Shareholders’ Meeting – Friday April 17, 2015 Presence in high-growth markets ■ In Poland: Canal+ Group’s second largest market with 2.2 million subscribers ■ In Africa: a presence in 25 countries and subscriber base of 1.5 million ■ In Vietnam : 800,000 subscribers 14
Slide 15: An international production policy for StudioCanal
Combined Shareholders’ Meeting – Friday April 17, 2015 An international production policy for StudioCanal ■ StudioCanal, Europe’s premier movie studio Series/Mini-series Films 15
Slide 16: Reinforced innovation capabilities
Combined Shareholders’ Meeting – Friday April 17, 2015 Reinforced innovation capabilities ■ A structure set up to test and develop new ideas in content and distribution ■ Unit brings together today four entrepeneurial companies and could include other businesses 16
Slide 17: CSR at the heart of our strategy
Combined Shareholders’ Meeting – Friday April 17, 2015 CSR at the heart of our strategy ■ Commitment to identify and develop talent ■ A Vivendi-specific contribution to sustainable development ■ CSR policy fully-integrated into Group strategy 17
Slide 18: Permanent dialogue with our individual shareholders
Combined Shareholders’ Meeting – Friday April 17, 2015 Permanent dialogue with our individual shareholders ■ Shareholders’ Club: organizing events all over France ■ Shareholders’ Committee: 10 members, 3 meetings/year ■ Website: section devoted to individual shareholders ■ Letters to Shareholders ■
Slide 19: Ambition of new Vivendi
Combined Shareholders’ Meeting – Friday April 17, 2015 Ambition of new Vivendi The situation today A re-shaped An integrated Leading assets and debt-free industry group in their markets Group culture Our ambition TO BECOME A GLOBAL LEADER IN MEDIA AND CONTENT 19
Slide 20: Stéphane Roussel, Member of the Management Board
17 avril 2015 Stéphane Roussel Member of the Management Board Senior Executive Vice President, Development and Organisation COMBINED SHAREHOLDERS’ MEETING Paris – Friday April 17, 2015
Slide 21: Three major assets
Combined Shareholders’ Meeting – Friday April 17, 2015 Three major assets ■ Worldwide leader in music ■ European leader and major player in audio-visual content, creating and distributing quality films, TV series, sports programs, entertainment shows & documentaries ■ Four high-potential companies u
Slide 22: Two strands of work
Combined Shareholders’ Meeting – Friday April 17, 2015 Two strands of work ■ Production of exclusive content ■ Acceleration in distribution of global content, harnessing rapidly expanding consumption trends on digital platforms 22
Slide 23: Four growth workshops
Combined Shareholders’ Meeting – Friday April 17, 2015 Four growth workshops Content of the future Africa, a growth Digital data territory monetization Co-operation and joint projects 23
Slide 24: Workshop 1: content of the future
Combined Shareholders’ Meeting – Friday April 17, 2015 Workshop 1: content of the future 24
Slide 25: Acquisition of 80% of Dailymotion
Combined Shareholders’ Meeting – Friday April 17, 2015 Acquisition of 80% of Dailymotion* *Entered into exclusive negotiations, April 7, 2015 25
Slide 26: Workshop 2: digital data monetization
Combined Shareholders’ Meeting – Friday April 17, 2015 Workshop 2: digital data monetization Justin Bieber Rihanna 62.7M followers 43.8M followers Lady Gaga Stromae 45.7M followers 1.93M followers 26
Slide 27: Workshop 3: Africa, a growth territory
Combined Shareholders’ Meeting – Friday April 17, 2015 Workshop 3: Africa, a growth territory 27
Slide 28: Workshop 4: co-operation and joint projects
Combined Shareholders’ Meeting – Friday April 17, 2015 Workshop 4: co-operation and joint projects 28
Slide 29: Talent is everywhere!
Combined Shareholders’ Meeting – Friday April 17, 2015 Talent is everywhere! 29
Slide 30: Innovative CSR positioning
Combined Shareholders’ Meeting – Friday April 17, 2015 Innovative CSR positioning ■ Four pioneering CSR and strategic issues ■ CSR criteria included in management’s variable remuneration since 2010 ■ Integrated reporting approach: impact of cultural capital for the Group’s value-creation ■ Strong ra
Slide 31: Innovative CSR positioning
Combined Shareholders’ Meeting – Friday April 17, 2015 Innovative CSR positioning 31
Slide 32: 2014 Accounts Presentation
April 17, 2015 Hervé Philippe Member of the Management Board Chief Financial Officer 2014 ACCOUNTS PRESENTATION
Slide 33: Consolidated Financial Statements
April 17, 2015 Consolidated Financial Statements
Slide 34: 2014 Key Results
Combined Shareholders’ Meeting – Friday April 17, 2015 2014 KEY RESULTS % Change % Underlying change* Year-on-year Year-on-year ■ Revenues: € 10,089 m – 1.6 % – 1.4 % ■ EBIT: € 736 m + 15.6 % ■ Net Income, group share: € 4,744 m + 141.1 % ■ Income from operations: €1,108 m – 2.0 % + 0.5 % ■ EBITA: €
Slide 35: Revenues
Combined Shareholders’ Meeting – Friday April 17, 2015 REVENUES Constant Constant perimeter In euro millions - IFRS 2013 2014 Change currency and constant currency * Canal+ Group 5,311 5,456 + 2.7% + 2.6% + 0.4% Universal Music Group 4,886 4,557 - 6.7% - 5.6% - 3.8% Vivendi Village 71 96 Intercompan
Slide 36: Income from Operations (IFO)
Combined Shareholders’ Meeting – Friday April 17, 2015 INCOME FROM OPERATIONS (IFO) Constant perimeter In euro millions - IFRS 2013 2014 Change and constant currency * Canal+ Group 660 618 - 6.4% - 8.6% Universal Music Group 636 606 - 4.6% + 2.3% Vivendi Village (78) (34) Corporate (87) (82) Total V
Slide 37: Adjusted Earnings Before Interest and Taxes (EBITA)
Combined Shareholders’ Meeting – Friday April 17, 2015 ADJUSTED EARNINGS BEFORE INTEREST AND TAXES (EBITA) Constant Constant perimeter In euro millions - IFRS 2013 2014 Change currency and constant currency * Canal+ Group 611 583 - 4.7% - 4.8% - 6.3% Universal Music Group 511 565 + 10.7% + 11.3% + 2
Slide 38: Adjusted Profit and Loss Account
Combined Shareholders’ Meeting – Friday April 17, 2015 ADJUSTED PROFIT AND LOSS ACCOUNT Constant perimeter and In euro millions - IFRS 2013 2014 Change % change constant currency * Revenues 10,252 10,089 - 163 - 1.6% - 1.4% Income from operations 1,131 1,108 - 23 - 2.0% + 0.5% Equity settled share-b
Slide 39: Consolidated Profit and Loss Account
Combined Shareholders’ Meeting – Friday April 17, 2015 CONSOLIDATED PROFIT AND LOSS ACCOUNT In euro millions - IFRS 2013 2014 Change % Revenues 10,252 10,089 -163 - 1.6% Cost of revenues (6,097) (6,121) Selling, general and administrative expenses excluding amortization (3,008) (2,811) of intangible
Slide 40: Cash Flow from Operations (CFFO)
Combined Shareholders’ Meeting – Friday April 17, 2015 CASH FLOW FROM OPERATIONS (CFFO) CFFO before capex, net CFFO 2013 2014 Change In euro millions - IFRS 2013 2014 Change 689 722 + 4.6% Canal+ Group 478 531 + 11.1% 611 471 - 22.8% Universal Music Group 585 425 - 27.3% (72) (38) Vivendi Village (8
Slide 41: Consolidated Balance Sheet
Combined Shareholders’ Meeting – Friday April 17, 2015 CONSOLIDATED BALANCE SHEET In euro millions December 31, December 31, December 31, December 31, Assets Equity and Liabilities 2013 2014 2013 2014 Goodwill 17 147 9 329 Consolidated equity * 19 030 22 988 Intangible and tangible assets 15 619 4 6
Slide 42: Net Cash at Year End 2014
Combined Shareholders’ Meeting – Friday April 17, 2015 NET CASH AT YEAR END 2014 Discontinued operations Net Debt CFFO Capex, Interest & Distribution Cash Disposals, Net Cash SFR/GVT Reclassification of Dec. 31, before net tax to collateralization Acquisitions, outflows GVT Dec. 31, of Liberty 2013
Slide 43: Statutory Financial Statements Vivendi SA
April 17, 2015 Statutary Financial Statements Vivendi SA
Slide 44: Statement of Earnings for 2013 and 2014
Combined Shareholders’ Meeting – Friday April 17, 2015 STATEMENT OF EARNINGS FOR 2013 AND 2014 (€ million) 2013 2014 Operating income 103 77 Operating expenses (223) (284) Loss from operations (120) (207) Financial income from subsidiaries and affiliates 3 546 12 Financial provisions (5 693) (255) O
Slide 45: 2014 Balance Sheet
Combined Shareholders’ Meeting – Friday April 17, 2015 2014 BALANCE SHEET EQUITY AND December 31, 2014 (€ million) NET ASSETS LIABILITIES Long-term Investments 21 895 Share capital 7 434 Additional paid-in capital 9 974 Reserves 686 Retained earnings - Earnings / (Losses) for the year 2 915 Equity 2
Slide 46: Allocation of earnings
April 17, 2015 Allocation of earnings
Slide 47: Allocation of 2014 Earnings
Combined Shareholders’ Meeting – Friday April 17, 2015 ALLOCATION OF 2014 EARNINGS Proposal to Annual Shareholders’ Meeting of an ordinary dividend of €1 in respect of fiscal year 2014, comprising: €0.20 relative to the Group’s business performance, for €270 million, i.e a pay-out on consolidate
Slide 48: Estimated impact of expected disposals/acquisitions to be completed in 2015
Combined Shareholders’ Meeting – Friday April 17, 2015 ESTIMATED IMPACT OF EXPECTED DISPOSALS/ACQUISITIONS TO BE COMPLETED IN 2015 Cash after tax Operation Estimated schedule (€ billion) GVT 3.6 May / July Numericable-SFR (20%) * 1.8 May TVN 0.3 Q2/Q3 Dailymotion (0.2) Q3 Total 5.5 * second tranche
Slide 49: Return to shareholders: €6.75 billion by Q2 2017
Combined Shareholders’ Meeting – Friday April 17, 2015 RETURN TO SHAREHOLDERS : €6.75 BILLION (€5.00 per share) BY Q2 2017 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 2016 2016 2017 2017 Distribution (€ / share) 1.0 1.0 1.0 1.0 1.0 € billion * 1.35 1.35 1.35 1.35 1.35 * based on a estimated
Slide 50: 2015-2017 Financial Outlook
Combined Shareholders’ Meeting – Friday April 17, 2015 2015-2017 FINANCIAL OUTLOOK 3.6 0.3 (0.2) 3.7 4.6 5.2 (6.8) Net cash, Disposal of 20% Disposal of GVT Disposal of TVN Acquisition of Dailymotion Return to shareholders Net cash, December 31, 2014 Numericable-SFR December 31, 2017 Excluding cash
Slide 51: Important disclaimers
Combined Shareholders’ Meeting – Friday April 17, 2015 Important disclaimers Cautionary Note Regarding Forward Looking Statements. This presentation contains forward-looking statements with respect to the financial condition, results of operations, business, strategy, plans and outlook of Vivendi, i