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Vivendi — Investor Presentation (June 2008)
30 slides from Vivendi's investor presentation, June 2008
Slide 1: Investor Presentation June 2008
Investor Presentation June, 2008 IMPORTANT NOTICE: INVESTORS ARE STRONGLY URGED TO READ THE IMPORTANT VIV IR PRES 25.06.08 DISCLAIMER AT THE END OF THIS PRESENTATION
Slide 2: Vivendi: A new dimension
Vivendi: A new dimension 2007 Adjusted Net Income up 8.3% and dividend up 8.3% Q1 2008: quality results delivered by each business Four strategic transactions to strengthen our businesses Increasing revenues from €20Bn in 2006 to approximately €30Bn in 2009 In 2008, focus on integration and consolid
Slide 3: 2007: Strong year for Vivendi
2007: Strong year for Vivendi Revenues: €21,657m ; + 8.0% EBITA: €4,721m ; + 8.0% Adjusted Net Income: €2,832m ; + 8.3% Cash Flow From Operations: €4,881m ; + 9.3% Dividend: €1.30 per share, up 8.3% 53.5% pay-out VIV IR PRES 25.06.08 3
Slide 4: Each year, our results and our dividend increase
Each year, our results and our dividend increase Adjusted net income Dividend Pay-out ratio >50%, above the average 3000 €2,832m 1.4 €2,614m for CAC 40 companies €1.30 2500 €2,218m 1.2 €1.20 2000 €1.00 1 €1,498m 1500 0.8 1000 0.6 €0.60 500 €349m 0.4 0 -€514m 0.2 - 500 - 1000 0 2002 2003 2004 2005 20
Slide 5: 2008: a year of integration and consolidation
2008: a year of integration and consolidation Consolidation of recently acquired businesses: UMG: Deliver strategic benefits from Bertelsmann Music Publishing and Sanctuary Canal + Group: By 2010 deliver €350m/year from synergies following the acquisition of TPS Maroc Telecom Group: Optimize integra
Slide 6: SFR / Neuf Cegetel: A leading Internet player
SFR / Neuf Cegetel: A leading Internet player Strategic rationale Create a real competitor to France Telecom in mobile and fixed market segments Offer a full service to meet customers’ changing needs (incl. enterprise) Enhance fiber optic investment case Accelerate convergence opportunities Enhance
Slide 7: Vivendi Games and Activision to create Activision Blizzard
Vivendi Games and Activision to create Activision Blizzard: a worldwide leader Strategic rationale Investment in a high growth sector with excellent margins Leading and complementary businesses Unique portfolio of franchises on Consoles, PC, subscription-based online games World class management tea
Slide 8: Highlights of first quarter 2008
Highlights of first quarter 2008 UMG strongly improved results Continuous increase in digital revenues Revenues: +6.8% at constant currency Integration of BMGP and Sanctuary EBITA: +111.1% c.c New music offering with MySpace Canal + Group’s strong performance More than €150m synergies already achiev
Slide 9: Vivendi balance sheet management
Vivendi balance sheet management We have significantly releveraged Vivendi’s balance sheet following recent strategic transactions Financing has been secured at very good conditions. Present liquidity level is enough to face all outstanding acquisitions, including Canal+ France minorities Investment
Slide 10: Our 2008 priorities
Our 2008 priorities Successful outcome of bidding process for football rights by Canal+, 23% below previous contract 9 Close the acquisition of Neuf Cegetel by SFR 9 Close the merger to create Activision Blizzard Focus on efficient execution of previously announced transactions Deliver strong result
Slide 11: 2008 goals confirmed
2008 goals confirmed Deliver a strong operating performance with a 2008 profit growth expected to be similar to 2007 at constant perimeter, driven by Canal+ Group, Maroc Telecom Group and Blizzard Maintain a distribution rate of at least 50% of Adjusted Net Income VIV IR PRES 25.06.08 11
Slide 12: Vivendi: Exceptionally well positioned
Vivendi: Exceptionally well positioned Growth dynamics: Strong customer demand for content distributed through fixed and mobile broadband networks Creative talents, innovation and strong brands drive market share gains Investment in fastest growing segments: videogames, on-line content, 3G, fixed br
Slide 13: Appendices
Appendices VIV IR PRES 25.06.08
Slide 14: Vivendi: A leader in digital entertainment
Vivendi: A leader in digital entertainment and a leader in all its businesses 100% 100% / 65% 56% #1 in pay-TV in # 2 among mobile operators France #1 in 3G services in France #1 Worldwide in music 75% of CYFRA+ in Poland ~97.5% of * 53% 100% 20% # 1 in fixed-line, mobile and internet # 1 Worldwide
Slide 15: 2007 results by business
2007 results by business Revenues: EBITA : €21.7bn: +8.0% €4.7bn: +8.0% €4,870m UMG €624m €400m Canal+ Group €4,363m €9,018m SFR €2,517m €2,456m Maroc Telecom €1,091m €1,018m Vivendi Games €181m VIV IR PRES 25.06.08 15
Slide 16: Vivendi: 2007 Adjusted Statement of Earnings
Vivendi: 2007 Adjusted Statement of Earnings 2007 2006 Change In euro millions – IFRS in m€ % 1 Revenues 21,657 20,044 1,613 + 8.0% 2 EBITA 4,721 4,370 351 + 8.0% 3 Income from equity affiliates 373 337 36 + 10.7% 4 Interest (166) (203) 37 + 18.2% 5 Income from investments 6 54 (48) - 88.9% 6 Provis
Slide 17: First quarter 2008 revenues
First quarter 2008 revenues Consolidation of % Change at BMGP since constant May 2007 and In euro millions - IFRS Q1 2008 Q1 2007 % Change currency Sanctuary since August 2007 Universal Music Group 1,033 1,027 + 0.6% + 6.8% Canal+ Group 1,115 1,067 + 4.5% + 4.2% SFR 2,302 2,096 + 9.8% + 9.8% o/w Mob
Slide 18: First quarter 2008 EBITA
First quarter 2008 EBITA Two extra days of Ligue1 In euro millions - IFRS Q1 2008 Q1 2007 % Change matches vs Q1 07: -€32m Transition costs of Universal Music Group 111 57 + 94.7% -€27m in Q1 08 vs. -€5m in Q1 07 Canal+ Group 170 164 + 3.7% SFR 624 643 - 3.0% 647 + 0.8% Launch of World of o/w Mobile
Slide 19: UMG
UMG: Performance and events Digital Revenues Increased market share in all major markets +42%* 2006 2007 Digital revenues increased by 51%* in 2007 +52%* +58%* Maintain strong EBITA margin: 13% in 2007 +57%* New music offering with MySpace announced in April 2008 NA Online NA Mobile Int'l On-line In
Slide 20: Canal+ Group
Canal+ Group: Performance and events Increase in subscription base* Increased subscription base Half way to 2010 EBITA target: €1Bn, 20% margin March ‘08 10,452K Integration process of TPS nearly completed: +180k €150m synergies already achieved in 2007 Transition cost in line with plan 244k net add
Slide 21: Two complementary offers
Two complementary offers “Expect more from TV” “The experts of all your passions” 6 general-interest premium channels 300 channels covering all themes with a pick-of-the-best content A selection of the best channels, including Recent and exclusive programs 58 exclusive ones A unique model A wide-spr
Slide 22: Canal+ Group: 2010 objectives are confirmed
Canal+ Group: 2010 objectives are confirmed Robust growth in projected revenues: > €5 billion in annual income 11.5 million subscriptions to Canal+ France 2010 EBITA > €1 billion Significant cost synergies projected: > €350 million euros VIV IR PRES 25.06.08 22
Slide 23: SFR
SFR: Performance and events Strong recruitment with improved customer mix Strong commercial dynamics: Mobile customer base #1 in net adds in metropolitan France in 2007 15% market share of net adds vs. 7% in Q1 2007 +582k +913k 17,910k 18,823k 17,328k Successful mobile internet access offers Prepaid
Slide 24: SFR: First quarter 2008 key metrics
SFR: First quarter 2008 key metrics (including SRR) Q1 2008 Q1 2007 Change Customers (in ‘000) * 18,823 17,910 +5.1% Proportion of postpaid clients * 66.1% 65.4% +0.7pt 3G customers (in ‘000) * 4,428 3,133 +41.3% Market share on customer base (%) * 33.8% 34.4% -0.6pt Network market share (%) 36.1% 3
Slide 25: Neuf Cegetel 2007 key figures
Neuf Cegetel 2007 key figures Neuf Cegetel key figures in millions of euros, IFRS 2006 2007 07 vs 06 Net adds ADSL customers, FY 1,000 1,052 +5.2% Net adds ADSL customers, Q4 170k * 101k -41% Revenues 2,897 3,348 +16% COGC (1,737) (1,967) +13% Gross Margin 1,160 1,381 +19% Selling costs (440) (503)
Slide 26: Maroc Telecom Group
Maroc Telecom Group: Performance and events Mobile customer base up 30% in 2007 20% revenues and EBITA growth in 2007 57% EBITDA margin Maroc Telecom: 13.3m customers: +24.5% vs. 2006 Continued steady growth Q1 2008 in a dynamic market: 13.7m customers by the end of March 2008 Increase in mobile cus
Slide 27: Vivendi Games
Vivendi Games: Outstanding performance driven by Blizzard Entertainment World of Warcraft subscribers Over €1 Bn in revenues in 2007, for the first time >10.7million >8m >10m Phenomenal success of the first expansion pack of World of Warcraft launched in Q1 2007. 4.4 5.5 5.8 Asia Europe 2nd expansio
Slide 28: Activision Blizzard Earnings Power
Activision Blizzard Earnings Power Calendar 2009* Operating Margin : 25%+ Revenue : $4.3 Billion Operating Income : $1.1 Billion EPS : $1.20+ Activision Blizzard business growth of 14% with 3-4 points of Improve Sierra’s operating margin expansion performance by $160 million, over 2 years delivering
Slide 29: Investor Relations Team
Investor Relations Team Daniel Scolan Executive Vice President Investor Relations +33.1.71.71.14.70 daniel.scolan@vivendi.com Paris 42, Avenue de Friedland 75380 Paris cedex 08 / France New York Phone: +33.1.71.71.32.80 800 Third Avenue Fax: +33.1.71.71.14.16 New York, NY 10022 / USA Phone: +1.212.5
Slide 30: 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