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Vivendi — Investor Presentation (December 2010)
29 slides from Vivendi's investor presentation, December 2010
Slide 1: Investor Presentation
Investor Presentation December 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
Slide 2: Vivendi: Group profile
Vi di G Vivendi: Group profile fil Vivendi is at the heart of the worlds of content, platforms and interactive networks Ideally positioned to capture growing demand from consumers for mobility, broadband and digital content ¾ 73 million subscriptions representing 75% of sales in 2009 49,000 49 000 e
Slide 3: Vivendi is ideally positioned to capture growing demand
Vivendi Vi di is i ideally id ll positioned iti d to t capture t growing i ddemandd from consumers for mobility, broadband and digital content and services New technologies enable consumers, wherever they are, to access a multitude of interactive services and the Internet Vivendi is a major player i
Slide 4: Vivendi: Key figures (FY 2009)
Vi di K Vivendi: Key fifigures (FY 2009) Revenues: €27,132m EBITA: €5 390m €5,390m Cash Flow From Operations: €5,237m Adjusted Net Income: €2,585m Cash dividend paid on May 11, 2010: €1,721m (€1.40 per share) Market Capitalization*: €24.0bn ($31.8bn) * Closing price: €19.45 per share as of November
Slide 5: Another year of record results
Another A th year off recordd results lt iin 2009 2009, lleading di tto a record dividend distribution of €1.7bn in cash (€1.40 per share) EBITA CFFO 5,237 +9% p.a. CAGR 5,390 +4% p.a. CAGR 5,055 4,881 4,953 4,721 4,466 4,354 4,370 4,157 3,985 EUR millioons , IFRS EUR millions , IFRS 3 504 3,504 200
Slide 6: Vivendi fully controls the businesses it operates
Vi di fully Vivendi f ll controls l the h bbusinesses i iit operates 100% 60%* 56% #1 worldwide in #1 alternative telecom #1 worldwide video games in France in music 53%* 100% 100% / 80% #1 in telecom #1 alternative telecom in Morocco #1 in ppay-TV y in Brazil in France * Based on shares outstanding
Slide 7: GVT: Performance well above acquisition business plan
GVT: Performance well above acquisition business plan leading to another upgrade in 2010 guidance Outstanding commercial performance as of September 30, 30 2010: ¾ 2.7 million Retail & SME lines in services, up 49% compared to September 30, 2009, including 996k Broadband lines, up 59% vs. September
Slide 8: GVT: Accelerated development plan
GVT A GVT: Accelerated l t d ddevelopment l t plan l New acceleration of investments in network deployment in 2010 and 2011 (investment plan of BRL1.5bn in 2010 vs. BRL1.1bn previously and BRL850m initially budgeted) in order to accelerate l coverage off Regions R i I andd III, III including i l di
Slide 9: Vivendi's innovation has driven commercial performance
Vi di’ innovations Vivendi’s i ti hhas ddriven i commercial i l performance f Major initiatives over the last 18 months… SFR: launch of iPhone, quad play, family packs, SIM-only offers, accelerating mobile internet penetration UMG: launch of VEVO, a premium music video service, confirmed as the #1 m
Slide 10: Class Action: Significant reduction in potential damages for Vivendi
Cl Class Action: A ti Significant Si ifi t reduction d ti iin potential t ti l damages d ffor Vi Vivendi di On June 24, 24 2010, 2010 the United States Supreme Court ruled that shareholders have no recourse under American securities law against Foreign companies for any stock transactions that occur
Slide 11: Vivendi enjoys a strong financial position
Vi di enjoys Vivendi j a strong t fifinancial i l position iti €5.6bn of undrawn credit lines at Vivendi SA at end September 2010 No significant debt reimbursement before 2012 Committed to BBB rating*, g and remainingg unchanged g after FY2009 earnings g release including €550m class action provisio
Slide 12: Focus on capital allocation to maximize shareholder returns
F Focus on capital it l allocation ll ti to t maximize i i shareholder h h ld returns t We confirm our priority to pay our shareholders a very high dividend (currently €1.40 and to be maintained for fiscal year 2010) and reiterate our permanent commitment to deliver dividends with a distribution rat
Slide 13: Third quarter 2010 results in line with strong first half
Thi d quarter Third t 2010 results lt iin line li with ith strong t fifirstt hhalflf Confirmation of full year outlook At end September 2010, all financial indicators are up: ¾ Revenues: €20,869m +6.9% ¾ EBITA: €4,670m +10.0% ¾ Adjusted Net Income: €2,214m +4.8% Third upgrade of 2010 guidance for ou
Slide 14: New upgrade for Activision Blizzard and GVT
N upgrade New d ffor Activision A ti i i Blizzard Bli d andd GVT Guidance vs. September p 2010 EBITA around €700m (vs. above €630m) Ò Upgraded Double digit EBITA margin 9 Confirmed Mobile: Slight decrease in EBITDA 9 Confirmed Broadband & Fixed: Double digit increase in EBITDA, incl. non 9 Confirmed
Slide 15: Offering the best to the digital generation
Offering the best to the digital g ggeneration #1 Video Games Worldwide #1 Music Worldwide Vivendi is at the #1 heart Alternative Telecoms France of the worlds of content, content platforms #1 Telecoms Morocco and interactive #1 networks Alternative Broadband Brazil #1 Pay-TV Pay TV France Investor
Slide 16: 9 months 2010 earnings
vivendi 9 months 2010 earnings
Slide 17: Significant increase in EBITA
Si ifi t iincrease iin EBITA Significant In euro millions - IFRS Constant 9M 2010 9M 2009 Change currency Activision Blizzard 686 406 + 69.0% + 66.4% Universal Music Group 244 269 - 9.3% - 14.7% SFR 1,982 1,986 - 0.2% - 0.2% Maroc Telecom Group 942 905 + 4.1% 4 1% + 3.5% 3 5% GVT 169 Canal+ Group 76
Slide 18: Adjusted Net Income
Adj t d N Adjusted Nett IIncome In euro millions - IFRS 9M 2010 9M 2009 Change % Incl. impact of GVT acquisition Revenues 20,869 19,525 + 1,344 + 6.9% Incl. reduced benefit from EBITA 4,670 4,245 + 425 + 10.0% utilization of Neuf Cegetel’s tax losses by SFR I Income ffrom equity it affiliates ffili
Slide 19: Financial net debt
In euro billions- IFRS Fi Financial i l nett ddebt bt evolution l ti Dividends Dividends Net financial December 31, CFFO Interest & tax paid to paid to investments and September 30, 2009 after Capex paid and other minorities shareholders other 2010 (1.0) (0.9) (8.9) (9.6) + 3.1 (1.7) + 1.2 IIncludin
Slide 20: Activision Blizzard: Revenues €2,280m, EBITA €686m
In euro millions Constant 9M 2010 9M 2009 Change IFRS currency Revenues: €2,280m, €2 280m +15% Revenues 2,280 1,986 + 14.8% + 11.1% Better than expected results driven by leadership in online entertainment EBITA 686 406 + 69.0% + 66.4% ¾ Strong performance from Call of Duty franchise, World of Warcr
Slide 21: Universal Music Group: Revenues €2,927m, EBITA €244m
Revenues: €2,927m, €2 927m -1.7% -1 7% In euro millions - IFRS 9M 2010 9M 2009 Ch Change Constant currency Recorded music sales -3.5% Revenues 2,927 2,978 - 1.7% - 6.3% ¾ Fewer major releases in H1 2010 EBITA 244 269 - 9.3% - 14.7% ¾ Reduced demand for pphysical y pproduct o/w restructuring o/ est u
Slide 22: SFR: Mobile service revenues and EBITDA
Mobile service revenues: +5.1% excl. regulatory impact* 15 7m postpaid customers (+8 15.7m (+8.7%), 7%) or 75% of the customer base 854k new postpaid customers over 9 months In euro millions - IFRS 9M 2010 9M 2009 Change Data revenues growth +15% to €1.7bn Revenues 9,379 9,230 + 1.6% Mobile 6,664 6,
Slide 23: Maroc Telecom: Revenues €2,126m, EBITA €942m
Revenues: €2,126m, €2 126m +6.4% +6 4% In euro millions - IFRS Constant 9M 2010 9M 2009 Change Robust performance of mobile in Morocco currency Revenues 2,126 1,999 + 6.4% + 5.9% ¾ Increased customer base with significant decrease in churn Mobile 1,600 1,452 + 10.2% + 9.7% ¾ ARPU stabilized at high
Slide 24: GVT: Net Revenues BRL1,736m, +42%
Net Revenues: BRL1,736m BRL1 736m*, +42% In BRL millions* 9M 2010 9M 2009 Change (+74% in EUR) Net revenues 1,736 1,224 + 41.8% Broadband service revenues up 78% and Voice revenues up 34% Gross income 1,139 789 + 44.4% 1 030k net adds in lines in services (LIS) 1,030k (LIS), +56% yoy Adjusted EBITDA
Slide 25: Canal+ Group: Revenues €3,464m, EBITA €760m
Revenues: €3,464m, €3 464m +2.9% +2 9% Sustained high portfolio growth at Canal+ France: +248k net adds In euro millions - IFRS 9M 2010 9M 2009 Change Constant currency year-on-year ¾ Net increase in customer base in metropolitan France Revenues 3,464 3,368 + 2.9% + 2.2% ¾ Excellent commercial perfo
Slide 26: Glossary
Glossary Gl 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
Slide 27: Activision Blizzard stand alone - definitions
A ti i i Bli Activision Blizzardd – stand t d alone l - definitions d fi iti US 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 accordance with GAAP) and excluding (non-GAAP)
Slide 28: Investor Relations team
I Investor t Relations R l ti team t Jean-Michel Bonamyy Executive Vice President Investor Relations +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com 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.
Slide 29: Important legal disclaimer
I Important t t legal l l disclaimer di l i This presentation Thi t ti contains t i forward-looking f d l ki statements t t t with ith respectt to t the th financial fi i l condition, diti results of operations, business, strategy, plans and outlook of Vivendi, including expectations regarding the p