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Vivendi — Vivendi Universal — Shareholder Meeting (April 2003)
21 slides from Vivendi's shareholder meeting presentation, Apr 30, 2003
Slide 1: Shareholders Meeting, April 29, 2003
Jean-Rene Fourtou Chairman and Chief Executive Officer Shareholders Meeting Tuesday April 29, 2003
Slide 2: Vivendi Universal's Ratings from Standard & Poor's and Moody's
Vivendi Universal's Ratings from Standard & Poors and Moody's Dec-01 Febr-02 Apr-02 June-02 July-02 Sept.-02 Nov.-02 Dec-02 Febr-03 Apr-03 BBB A- A A+ BBB- BB+ BB BB- BBB+ B+ .... .... Baa2 A2 A3 A1 Baa3 Ba1 Ba2 Ba3 Baa1 B1 .... .... Standard & Poor's Moody's Junk bonds Loss of confidence Fall in sh
Slide 3: Change in Vivendi Universal share price
Change in Vivendi Universal share price Vivendi Universal Placement of treasury shares January 7 Announcement of 2001 results - March 6 Announcement of 2002 first-half results August 14 Moody's downgrade S&P downgrade Arrival of new management July 3 Successful placement of &128;1bn of notes Novembe
Slide 4: Vivendi Universal vs. CAC index January to August 2002
Vivendi Universal vs. CAC 40 index from January 2002 to rating downgrade after H1 results on August 14, 2002 Source : Reuters (index 100 at 01-02 2002) 0 20 40 60 80 100 120 01/01/2002 20/01/2002 15/02/2002 15/03/2002 12/04/2002 10/05/2002 07/06/2002 05/07/2002 02/08/2002 CAC 40 Vivendi Universal 3
Slide 5: Vivendi Universal vs. CAC 40 index since August 16, 2002
0 20 40 60 80 100 120 140 160 180 200 Vivendi Universal vs. CAC 40 index since August 16, 2002 CAC 40 Vivendi Universal Source : Reuters (index 100 at 16/08/2002) Aug 2002 Sept. /2002 Oct. 10/2002 Nov. 2002 Dec 2002 Jan. 2003 Feb. 2003 Mar 2003 April /2003 3a
Slide 6: Substantial debt and negative available cash flow
* Net available cash flow from operations at VU level, after taxes and financing costs, and including dividends received Substantial debt and negative available cash flow Substantial debt: &128;35 billion at June 30, 2002 Very short-term commitments: &128;5.6 billion of repayments between July 2002
Slide 7: Very poor results
Very poor results 2002 Pro Forma 2001 Pro Forma 2.6 1.2 Cash flow from operations** 0.7 0.0 Proportional cash flow from operations*** (23.3) (13.6) - - Net loss (0.5) (0.1) (0.1) (0.1) - - Adjusted net loss* Excluding non-recurring restructuring costs: 2002 as published 2001 as published Net income/
Slide 8: The Vivendi Universal Group in July 2002
The Vivendi Universal Group in July 2002* Approximately 6,000 consolidated companies and shareholdings * Incomplete list of companies; provided solely for illustration purposes US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Heal
Slide 9: Vivendi Environnement
Vivendi Environnement US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Waste management Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks S
Slide 10: Telecommunications
Telecommunications US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks Spencer Gifts EchoSta
Slide 11: Canal+ Group
Canal + Group US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks Spencer Gifts EchoStar Sun
Slide 12: Internet
Internet US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks Spencer Gifts EchoStar Sundance
Slide 13: Other assets
Other assets US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks Spencer Gifts EchoStar Sund
Slide 14: Press and publishing
Press and publishing US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks Spencer Gifts EchoS
Slide 15: UMG, VUE and VU Games
UMG, VUE and VU Games US publishing Reference works Consumer press, France General literature Spain publishing Publishing France Trade press Health publishing Free sheets, France Energy Transportation Water Music Pressplay Clubs Sunburst Universal Pictures USA Networks Theme parks Spencer Gifts Echo
Slide 16: What we achieved in 2002
What we achieved in 2002 Serious liquidity situation solved: Bank facilities of &128;1 billion obtained in July &128;7 billion of asset disposals in H2 Cash drains reduced (Canal+, Internet, corporate, etc.) Management efforts focused on cash position &128;1 billion of notes mandatorily redeemable f
Slide 17: What we achieved in 2002 (cont.)
What we achieved in 2002 Strategic review of all businesses Canal+ Group: definition and launch of new strategy and new management team put in place Strengthening of majority interest in Cegetel-SFR and disposal of 20.4% of Vivendi Environnement Implementation of budgets focusing on net income and c
Slide 18: Our priorities 2003: a year of transition
Our priorities 2003: a year of transition Debt restructuring : already well under way Issue of a € 1.2 billion high-yield bond (March 2003) Maturity of € 2.5 billion of debt extended to 3 years to gain flexibility (in progress) Continue the asset disposal plan At least € 7 billion in 2003, & € 2 bil
Slide 19: 2003: A year of transition (cont.)
Define a strategy for each business Define and prepare the group's future Our objective: to generate net income (excluding non- recurring items and goodwill amortization) for the first time in 3 years, and post strong growth in cash flow 2003: A year of transition (cont.) 10
Slide 20: Our vision for 2004
Our vision for 2004 A group with practically no debt , refocused on Telecoms: Majority control in Cegetel - SFR and Maroc Telecom, highly profitable companies With a refocused Canal + Group, back on track Probably including Universal Music Group, either fully or through a partnership, which will be
Slide 21: Important Legal Disclaimer
Important Legal Disclaimer This presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward- looking