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Vivendi — Shareholder Meeting (April 2007)
34 slides from Vivendi's shareholder meeting presentation, April 2007
Slide 1: 2007 General Meeting
2007 General Meeting Jean-Bernard Lévy Chairman of the Management Board & Chief Executive Officer Jacques Espinasse Member of the Management Board & Chief Financial Officer
Slide 2: 2007 General Meeting - Jean-Bernard Lévy
2007 General Meeting Jean-Bernard Lévy Chairman of the Management Board & Chief Executive Officer
Slide 3: Our strengths in 2006
Our strengths in 2006 Economic performance higher than the forecasts Tangible progress in all the business units €6 billion invested to encourage growth Two structural acquisitions: Canal+/TPS and BMG Music Publishing Name change, new corporate identity and advertising campaign 3
Slide 4: Our performance in 2006
Our performance in 2006 EBITA: €4.4 billion, up 9.6% on a comparable basis Earnings, attributable to the parent company: €4 billion Adjusted net income: €2.6 billion, up 17.9% Proposed dividend: €1.20 per share, an increase of 20%, at a distribution rate 53% of the adjusted net income per share of €
Slide 5: Our results improve every year
Our results improve every year Adjusted Net Income 3000 €2, 614m 2500 €2, 218m 2000 €1, 498m 1500 1000 €349m 500 0 (€514 m) -500 -1000 2002 2003 2004 2005 2006 French GAAP IFRS 5
Slide 6: Our dividend increases every year
Our dividend increases every year Dividend € 1.20 1 €1 € 0.6 0 2003 2004 2005 2006 6
Slide 7: Since the beginning of 2006, we have invested more than €6 billion
Since the beginning of 2006, we have invested more than €6 billion contribute to growth We have maintained a high level of capex in our business units: more than €1.6 billion UMG : Acquisition of BMG Music Publishing (1),(2) Canal+ : Acquisition of TPS SFR : Increased investment in NeufCegetel, acqu
Slide 8: Our strategy
Our strategy To strengthen our position in entertainment: music, television, cinema, mobile, internet and games To capitalize on consumer demand for mobility and broadband To take advantage of the global transition to digital media to launch innovative services To enhance our economic model focusing
Slide 9: Our strategy
Our strategy To provide the business units with superior resources, than they could have on a stand alone basis, to facilitate: Investments in organic growth Investments in external growth on a selective and rigorous basis Impact on earnings per share Cash generation Return on capital employed in re
Slide 10: The business units' complementary nature
The business units’ complementary nature Staying ahead to better serve consumers: Anticipating and mastering new technologies Creating content, discovery and managing talent, acquiring rights Knowing the market Innovating and reacting Our businesses work together on numerous new projects to give the
Slide 11: The advantages of size
The advantages of size Ability to initiate large-scale internal investments (for example: French League 1 football, video games, etc.) A wealth of experience in having a global presence and a motivated team Risk management The ability to seize opportunities 11
Slide 12: Our assets
Our assets 100% 100% / 65% 56% #1 in pay-TV in # 2 among mobile operators #1 Worldwide in music France and Poland # 1 in 3G services in France 40.5% of n9ufcegetel 51% 100% 20% # 1 in fixed-line, mobiles World leader in # 1 Worldwide in online and internet entertainment in Morocco gaming We innovate
Slide 13: UMG: initiatives for growth
UMG: initiatives for growth New revenue streams Strong digital sales growth: +84% Numerous initiatives, on the Internet and on mobile phones, to multiply the distribution of our artists’ repertoire IMF, Amp’d, Agreements with YouTube, Microsoft, Qtrax… Investments, enrichment of content BMG Music Pu
Slide 14: Canal+ Group: initiatives for growth
Canal+ Group: initiatives for growth Investments in external growth Acquisition of TPS and creation of Canal+ France StudioCanal acquires Optimum Releasing, a U.K. based film distributor Investments in content About €2bn of investments in programs Investment in recruitments 1.15 million gross recrui
Slide 15: SFR: initiatives for growth
SFR: initiatives for growth Continued growth of the subscriber base: + 685,000 customers Growth of 18% in carried traffic SFR 3G: 65% of the population covered by our 3G+/HSDPA network (higher speed) Development of services and success of applications for Enterprises including the BlackBerry® Develo
Slide 16: Maroc Telecom: initiatives for growth
Maroc Telecom: initiatives for growth Increased mobile market share despite competition: +2.5 million mobile clients in 2006 (+30%) Stabilization of the fixed lines activities with an unlimited offer Rapid penetration of DSL: A base of almost 390,000 fixed lines in 2006 (+59%) and launch of a TV-DSL
Slide 17: Vivendi Games: initiatives for growth
Vivendi Games: initiatives for growth Exceptional and lasting success of World of Warcraft: From 5 million paying clients in 2005 to 8 million in 2006 8.5 million in early March 2007 Real success with the launch of the expansion pack: The Burning Crusade 2.4 million copies sold in one day 3.5 millio
Slide 18: Update on telecommunications in Poland
Update on telecommunications in Poland Investment of €1.9 billion in PTC, the mobile operator in Poland, between 1999 and 2001 Since the beginning of 2005, illegal maneuvering by Deutsche Telekom and Elektrim has deprived Vivendi of possession of the assets purchased There is a legal question-mark o
Slide 19: Vivendi Performance General Meeting 2005/2007
Vivendi Performance General Meeting 2005/2007 Vivendi share price on 04/18//2007: €31.73 CAC: + 48% VIVENDI:+37% Média: +22% Telco: +21% 23,18€ 19
Slide 20: Our commitments
Our commitments Strategic and operational objectives Capitalize on consumer demand for mobility and broadband Develop joint investments and initiatives between our business units Give priority to organic growth and build on our positions as leader, to create value and achieve an adjusted net income
Slide 21: ENTERTAINMENT. It's VITAL.
ENTERTAINMENT. It’s VITAL. Entertainment. I4+s as vital as eating, drinking and sleeping. As children, we play as naturally as we breathe. As adults, we thrive on music, images, shows and exchanging with others. Vivendi is investing all of its energy and talent to bring you the wonders of entertainm
Slide 22: 2006 Results & Outlook
2006 Results & Outlook Jacques Espinasse Member of the Management Board & Chief Financial Officer
Slide 23: All our businesses are profitable, cash flow generative and growing
All our businesses are profitable, cash flow generative and growing Defined strategy in digital entertainment Financial resources to support our businesses 23
Slide 24: 2006 Key Figures
2006 Key Figures In Euro billions - IFRS 2006 Growth Revenues 20.0 +2.9% EBITA 4.4 +9.7% Adjusted net income 2.6 +17.9% Earnings, attributable to equity holders 4.0 +27.9% of the parent 24
Slide 25: 2006 Key figures per share
2006 Key figures per share In Euros - IFRS 2006 Adjusted net income per share 2.27€ +17.6% Dividends per share 1.20€ +20.0% 25
Slide 26: Continuous improvement in the Group's performance
Continuous improvement in the Group’s performance In Euro billions - IFRS 2004 2005 2006 Revenues 17.9 19.5 20.0 EBITA 3.5 4.0 4.4 Operating margin 19.6% 20.5% 21.8% Adjusted net income 1.5 2.2 2.6 Net margin 8.4% 11.4% 13.0% Investments 1.4 2.8 5.5 26
Slide 27: 2006 Revenues
2006 Revenues €20.0bn in 2006 +3.3% compared to 2005 on a comparable basis Vivendi Games : €804m +25.4% Maroc Telecom : €2,053m +10.4% UMG : €4,955m +1.3% SFR : €8,678m -0.2% Canal+ Group: €3,593m +7.7% 27
Slide 28: 2006 EBITA
2006 EBITA €4.4bn in 2006 744 +9.3% UMG +9.6% on a comparable basis 681 compared to 2005 74 251 -64.1% Up 21.8% to €251m before the Canal+Group Canal+ Group +14.0% 206 and TPS combination costs of €177m before the Canal+ Group and TPS combination costs 2,583 SFR +6.6% 2,422 912 Maroc Telecom +16.0%
Slide 29: Increase in Adjusted Net Income
Increase in Adjusted Net Income In 2006, Adjusted net income, increased by 17.9% to €2,614m This increase of €396m is due to: + €385m: Increase in EBITA of 9.7% after the €177m charge related to the Canal+/TPS combination, i.e €562m increase before this charge + €11m: Increase in income from equity
Slide 30: Financial resources to support the growth of our businesses
Financial resources to support the growth of our businesses In 2006 : Cash flow from operations before capital €6.1bn +12.2% expenditures, net Capital expenditures, net €1.6bn +27.4% Financial investments realized or committed > €6bn Debt under control €4.3bn 30
Slide 31: 2006 Dividend proposition
2006 Dividend proposition Proposed dividend per share: €1.20, up 20% Pay-out ratio: 53% of adjusted net income Per share return: 44% in two years since 2005 Shareholders’ Meeting Payment €1.5 € 1.20 beginning €1 April 26, 2007 €1.0 € 0.6 €0.5 0 2003 2004 2005 2006 31
Slide 32: Vivendi share price
Vivendi share price Market capitalization : 37 billion euros 14th in CAC 40 8th in CAC 40 (floating only) 19th in Euronext top 100 Share price evolution since 2004 04/18/2007 34 € 31.73 32 +59.8% +64.7% 30 28 31/12/2003: 31/12/2003 € 19.27 26 € 19.27 24 22 20 18 16 2004 2005 2006 2007 32
Slide 33: Our objectives are confirmed
Our objectives are confirmed 2007 outlook Adjusted net income: At least €2.7 billion (1) Dividend: Distribution rate of at least 50% of Adjusted net income 2011 goal confirmed Adjusted net income: Between €3.5 - €4 billion(2) Dividend: Distribution rate of at least 50% of the Adjusted net income (1)
Slide 34: Important Legal Disclaimer
Important Legal Disclaimer This presentation contains forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Vivendi. Although Vivendi believes that such forward-looking statements are based on reasonable assumptions, such statement