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Vivendi — Investor Presentation (April 2010)
33 slides from Vivendi's investor presentation, April 2010
Slide 1: A world leader in communications and entertainment
A world leader in communications and entertainment Investor Presentation April 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
Vivendi: Group profile A world leader in communications and entertainment, ideally positioned to capture growing demand from consumers for mobility, broadband and digital content 73 million subscriptions representing 75% of sales in 2009 49,000 employees, best-in-class networks and premium content
Slide 3: Vivendi today
Vivendi today 100% 100% / 80% 56% #1 in pay-TV #2 in telecom #1 worldwide in France in France in music 53% 57%* 87%* #1 in telecom #1 worldwide in #1 alternative in Morocco video games broadband operator in Brazil * Based on shares outstanding Investor Presentation – April 2010 3
Slide 4: Growing focus on subscriptions and growth in media and telecoms
Growing focus on subscriptions and growth in media and telecoms Growing focus on subscriptions Sales x1.5 between 2004 and 2009 Sales: €17.9bn Sales: €27.1bn Vivendi Universal Entertainment 16% Universal Music Group 22% 11% Activision Blizzard Universal Music Group 23% 5% 11% 10% Maroc Telecom Group
Slide 5: Vivendi is ideally positioned to capture growing demand from consumers
Vivendi is ideally positioned to capture growing demand from consumers for mobility, broadband and digital content Key Vivendi Strengths Key Market Trends Creativity Digitization Networks, spectrum, licenses Mobility 73 million subscriptions Broadband Leadership in each business Content Profitabilit
Slide 6: Vivendi's 3D plan in line with capital allocation policy
Vivendi’s 3D plan in line with capital allocation policy SFR, France’s #1 music mobile downloading platform, #2 digital music store after iTunes Development of content Launch of triple play and exclusive launch of m-banking services by Maroc Telecom / networks to leverage Approximately 11.5 mi
Slide 7: 2009 confirmed the relevance of our strategy
2009 confirmed the relevance of our strategy Retained high margins for all our businesses, largely due to success of subscription- based model despite more challenging than anticipated economic conditions Enhanced the performance of the group due to 2007-2008 acquisitions Maintained focus on investm
Slide 8: Another year of record results in 2009, record dividend proposed
Another year of record results in 2009, leading to proposed record dividend distribution of €1.7bn in cash (€1.40 per share) EBITA CFFO +8% p.a. CAGR 5,390 +6% p.a. CAGR 5,055 5,237 4,881 4,953 4,721 4,466 4,370 4,157 3,985 EUR millions , IFRS EUR millions , IFRS 2005 2006 2007 2008 2009 2005 2006 2
Slide 9: Vivendi enjoys a strong financial position
Vivendi enjoys a strong financial position €5.7bn of undrawn credit lines at Vivendi SA at end March 2010 No significant debt reimbursement before 2012 Committed to BBB rating*, and remaining unchanged after FY2009 earnings release including €550m class action provision Controlled financing costs *
Slide 10: Capital allocation priorities to maximize shareholder returns
Capital allocation priorities to maximize shareholder returns Continued investments in content and networks to leverage Vivendi’s leading communications and entertainment assets Deliver dividends to shareholders with a distribution rate of at least 50% of Adjusted Net Income Buy out minority interes
Slide 11: Each and every objective of our capital allocation policy achieved in 2009
Each and every objective of our capital allocation policy achieved in 2009 Continued investments in content and networks Investment in premium content (€2.5bn) to leverage Vivendi’s leading communications and capital expenditure in networks (€2.4bn) and entertainment assets Deliver dividends to sh
Slide 12: Management compensation aligned with shareholders' interests
Management compensation aligned with shareholders’ interests Incentive for Management based on financial and share price performances Variable compensation based on financial targets (Adjusted net income, Cash flow from operations, ROCE) and achievement of strategic priority objectives defined by
Slide 13: Outlook for 2010
Outlook for 2010 We have planned 2010 with a reasonably conservative stance, due in part to the continued uncertainties relating to the broader macroeconomic environment and consumer demand, as well as growing regulatory pressure In 2010, we remain committed to building growth for the future: We w
Slide 14: Vivendi: A world leader in communications and entertainment
Vivendi: A world leader in communications and entertainment Growth potential driven by innovation Capitalize on consumer demand for mobility, broadband and digital content to increase the value of Vivendi’s content and networks First-class assets with high and predictable cash generation Exceptional
Slide 15: A world leader in communications and entertainment
A world leader in communications and entertainment
Slide 16: FY 2009 earnings
vivendi FY 2009 earnings
Slide 17: Strong results in a challenging 2009 environment
Strong results in a challenging 2009 environment Revenues: € 27,132 m + 6.9 % EBITA: € 5,390 m + 8.8 % Adjusted Net Income: € 2,585 m - 5.5 % CFFO before capex: € 7,799 m +10.5 % CFFO: € 5,237 m + 3.6 % Net debt*: € 9.6 bn at end 2009 Net debt excluding acquisition of 100% of GVT: € 6.5 bn at end 20
Slide 18: 2009 EBITA
2009 EBITA In euro millions - IFRS Change at 2009 2008 Change constant currency Activision Blizzard 484 34 x 14.2 x 13.4 Universal Music Group 580 686 - 15.5% - 14.7% SFR 2,530 2,542 - 0.5% - 0.5% Maroc Telecom Group 1,244 1,224 + 1.6% + 1.0% GVT 20 - Canal+ Group 652 568 + 14.8% + 16.7% Holding & C
Slide 19: Adjusted Net Income
Adjusted Net Income In euro millions - IFRS 2009 2008 Change % Lower contribution from NBC Universal and full Revenues 27,132 25,392 + 1,740 + 6.9% consolidation of Neuf Cegetel since April 15, 2008 EBITA 5,390 4,953 + 437 + 8.8% Impact of lower interest Income from equity affiliates 171 260 - 89 in
Slide 20: Financial net debt evolution
In euro billions- IFRS Financial net debt evolution* Dividends Dividends Net financial December 31, CFFO Interest & tax paid to paid to investments and December 31, 2008 after Capex paid and other minorities shareholders other 2009 (0.6) (0.8) (0.7) (8.3) + 5.2 (4.4) (9.6) Including: Including: Incl
Slide 21: Solid Cash Flow generation
Solid Cash Flow generation CFFO before capex CFFO 2009 2008 Change In euro millions - IFRS 2009 2008 Change 1,043 345 x 3.0 Activision Blizzard 995 313 x 3.2 329 555 - 40.7% Universal Music Group 309 521 - 40.7% 3,966 4,057 - 2.2% SFR 2,263 2,752 - 17.8% 1,659 1,455 + 14.0% Maroc Telecom Group 1,173
Slide 22: Activision Blizzard results
IFRS Revenues: €3,038m Increased retail market share to 16% in US/Europe* In euro millions Constant IFRS 2009 2008 Change currency Unprecedented success with Call of Duty: Modern Warfare2, #1 best-selling console title in the US and Europe* Revenues 3,038 2,091 + 45.3% + 41.4% DJ Hero was the highes
Slide 23: Universal Music Group results
Revenues: €4,363m Increase in digital sales, Artist Services & In euro millions - IFRS Constant 2009 2008 Change currency Merchandising and Publishing more than offset by Revenues 4,363 4,650 - 6.2% - 6.2% decline in demand for physical products and lower license income: EBITA 580 686 - 15.5% - 14.7
Slide 24: Successful integration of Neuf Cegetel into the new SFR
Successful integration of Neuf Cegetel into the new SFR Mobile revenues: stable #1 in postpaid net adds in 2009 with 36.2% market share Growth in customer base, data revenues (+33%) and In euro millions - IFRS 2009 2008 Change handset revenues offset the regulatory impact* and Revenues 12 425 11 553
Slide 25: Maroc Telecom Group results
Revenues: €2,694m, +3.6% Continued leadership in Morocco (mobile customer base In euro millions - IFRS Constant 2009 2008 Change up 5.6% yoy) despite more challenging economic and currency Revenues 2,694 2,601 + 3.6% + 3.0% regulatory environment Mobile 1,971 1,867 + 5.6% + 5.0% Strong growth of Afr
Slide 26: GVT results
Revenues: BRL1,699m* up 28.7% In BRL millions* 916k net adds in lines in service (LIS), up 36.6% 2009 2008 Change Broadband subscribers reached 669k, 39% with speed of Net revenue 1,699 1,320 + 28.7% 10 Mbps and higher compared with 0.3% in 2008 Gross income 1,139 863 + 32.0% Successful expansion in
Slide 27: Canal+ Group results
Revenues: +1.6% at constant currency Strong portfolio growth reaching 12.5m subscriptions In euro millions - IFRS Constant 2009 2008 Change currency Canal+ France: 238k net adds in 2009, strong recruitments in Q4 in metropolitan France Revenues 4,553 4,554 - + 1.6% Poland / Vietnam: 259k net add
Slide 28: Outlook for 2010
Outlook for 2010 We have planned 2010 with a reasonably conservative stance, due in part to the continued uncertainties relating to the broader macroeconomic environment and consumer demand, as well as growing regulatory pressure In 2010, we remain committed to building growth for the future: We w
Slide 29: Business outlook for 2010
Business outlook for 2010 EBITA above €600m Double digit EBITA margin Mobile: slight decrease in EBITDA Broadband & Fixed: slight increase in EBITDA Moderate growth in revenues in Dirhams Profitability to be maintained at high levels Revenues* up 26% Adjusted EBITDA* up 30% Slight increase in EBITA
Slide 30: Glossary
Glossary 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 com
Slide 31: Activision Blizzard – stand alone - definitions
Activision Blizzard – stand alone - definitions 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): the impact of the change in
Slide 32: Investor Relations team
Investor Relations team Jean-Michel Bonamy 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: +33.1.71.71.14.16 Phone
Slide 33: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, business, strategy and plans as well as expectations regarding the payment of dividends. Although Vivendi believes that such forward-looking statemen