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Vivendi — H1 2008 Earnings Presentation
21 slides from Vivendi's earnings presentation, Sep 1, 2008
Slide 1: SFR
SFR September 1, 2008
Slide 2: Contents
Contents SFR + Neuf Cegetel a value creating combination H1-2008 performance and 2008 outlook September 2008 – 2
Slide 3: SFR, #1 fixed / mobile alternative integrated operator in France
SFR, #1 fixed / mobile alternative integrated operator in France …with strong position in growing segments SFR covers all segments of the telecoms (mobile, broadband, Internet) and strong market with >€12 bn revenues… and complementary assets SFR revenue breakdown 1st leading alternative integrated
Slide 4: Strong and complementary assets: Brand and customer base
Strong and complementary assets: Brand and customer base SFR, a powerful and well-established brand Large broadband fixed + broadband mobile Mass Market customer base 9 19.3 M mobile customers o.w. 68% are postpaid 9 4.7 M 3G customers, ~ 60% market share 9 3.8 M broadband Internet customers (ho
Slide 5: Strong and complementary assets: Distribution
Strong and complementary assets: Distribution Strong distribution network for Internet and mobile offers : ~800 “Espace SFR” in 2008 9 Enhanced proximity and quality of service for broadband Internet customers 765 ~800 730 665 590 Evolution of Espace SFR stores 2004 2005 2006 2007 2008 Strong In
Slide 6: Strong and complementary assets: Network and technology
Strong and complementary assets: Network and technology Leading broadband mobile network in France 9 SFR population coverage > 98% 9 70% population coverage in 3G/3G+ Leading alternative broadband platform in France 9 ~50% of French unbundled lines 9 2,000 Central Offices by end 2008 9 First alt
Slide 7: Strong and complementary assets: Innovation
Strong and complementary assets: Innovation Strong track record of innovative offers in mobile. First French operator to generalize Mobile Internet for the mass market : 9 Success of Illimythics offers with 850k customers 9 Fast development of 3G+ USB card (100k sold to date) 9 Successful launch o
Slide 8: SFR+Neuf Cegetel: integration process to date (1/2)
SFR+Neuf Cegetel: integration process to date (1/2) Rapid and strong execution of SFR/Neuf Cegetel deal 20 December 2007: signature of LOI with Louis Dreyfus Group 9 15 April 2007: clearance of Competition Authorities 9 24 June 2008: success of Public Tender Offer and squeeze out (Retrait Ob
Slide 9: SFR+Neuf Cegetel: integration process to date (2/2)
SFR+Neuf Cegetel: integration process to date (2/2) Strategy at work: execution of synergy and integration plan January-July 2008: Identification of 24 integration workshops, 90 integration KPIs 9 and 103 action plans to generate cost/revenue synergies Since July: Biweekly “Integration Committ
Slide 10: SFR + Neuf Cegetel: a value creating combination (1/3)
SFR + Neuf Cegetel: a value creating combination (1/3) Significant synergies fueled by the 100% control ~80% on costs (~10% of opex adressable cost base) - Unique branding : SFR Cost synergies - IT optimisation Opex: 70% - Network optimisation - Procurement economies of scale - Overhead reduction
Slide 11: SFR + Neuf Cegetel: a value creating combination (2/3)
SFR + Neuf Cegetel: a value creating combination (2/3) ~€250/300M cash synergies per year from 2011 ~€250/300 m Synergies ~€175/200 m ~€75/100 m 2009 2010 2011 Implementation ~€150m over the period costs (opex,capex) - mostly occurred in 2008 - o.w. ~€40m non cash September 2008 – 11
Slide 12: SFR + Neuf Cegetel: a value creating combination (3/3)
SFR + Neuf Cegetel: a value creating combination (3/3) Strong and complementary assets to: Execute integration and synergy plan Mobile – Mass market : keep leadership in mobile Internet Broadband Internet – Mass market : restore net adds market share above 24% by switching from Neuf Cegetel
Slide 13: Contents
Contents SFR + Neuf Cegetel a value creating combination H1-2008 performance and 2008 outlook September 2008 – 13
Slide 14: SFR H1 2008 results
Mobile Mobile service revenues: + 2.7% YoY and +4.4% excluding the impact SFR of regulated tariff cuts* in euro millions - IFRS H1 2008 * H1 2007 Change Continued increase in customer base to 19.3** million and improvement in Revenues 5,289 4,336 22.0% the customer mix : Mobile 4,416 4,327 2.1% Post
Slide 15: SFR: confirmed 2008 outlook
SFR: confirmed 2008 outlook 2008 Outlook before impact of the integration of Neuf Cegetel Revenue for Mobile: Slight growth EBITDA for Mobile: Slight growth EBITA: Nearly flat despite increased depreciation CFFO for Mobile: Up due to decreased capex SFR in H2 Maintain mobile EBITDA Control mobile ac
Slide 16: Appendices
Appendices September 2008 – 16
Slide 17: SFR: Key metrics
SFR: Key metrics (including SRR) H1 2008 H1 2007 Change MOBILE Customers (in ‘000) * 19,275 17,980 +7.2% Proportion of postpaid clients * 67.7% 65.8% +1.9pt 3G customers (in ‘000) * 4,739 3,447 +37.5% Market share on customer base (%) * 34.4% 34.2% +0.2pt Network market share (%) 36.1% 35.9% +0.2pt
Slide 18: SFR: 2007 comparable basis
SFR: 2007 comparable basis Q1'07 cb Q2'07 cb H1'07 cb Q3'07 cb Q4'07 cb H2'07 cb FY 07 cb In euro millions - IFRS Outgoing revenues net of promotions 1,649 1,695 3,344 1,735 1,724 3,459 6,803 Mobile incoming 202 209 411 207 226 433 844 Fixed incoming revenues 95 108 203 108 115 223 426 Roaming in 54
Slide 19: SFR: Detailed Broadband Internet and fixed revenue growth
SFR: Detailed Broadband Internet and fixed revenue growth Q2'08 / H1'08 / Growth of SFR Broadband Internet and fixed revenues Q2'07cb H1'07cb On a comparable basis as published on July 24, 2008 +7.6% +7.2% On a comparable basis restating Club Internet and IFRIC 12 +1.8% +2.2% o.w. Neuf Cegetel stand
Slide 20: Vivendi IR Team
Vivendi IR Team Daniel SCOLAN Executive Vice President Investor Relations +33.1.71.71.14.70 daniel.scolan@vivendi.com Paris New York 42, Avenue de Friedland 800 Third avenue 75380 Paris cedex 08 / France New York, NY 10022 / USA Phone: +33.1.71.71.12.33 Phone: +1.212.572.1334 Fax: +33.1.71.71.14.16
Slide 21: 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 stateme