Vivendi Se · EURONEXT:VIV
Vivendi — FY2023 Earnings Presentation
56 slides from Vivendi's earnings presentation, Mar 7, 2024
Slide 1: 2023 Results
MARCH 7, 2024 2023 RESULTS IMPORTANT NOTICE: Utiliserresults Financial la bibliothèque UpSlide for the year endedpour insérer31, December une2023 notice Audited and prepared in compliance with IFRS Investors are strongly advised to read the important disclaimers at the end of this presentation
Slide 2: Summary
SUMMARY 01 2023 Key Highlights 3 02 2023 Financial Performance 16 03 2023 Business Unit Performances 28 04 Conclusion 40 05 Appendices 43
Slide 3: 2023 Key Highlights
Chairman of the Management Board Chief Executive Officer 01 2023 Key Highlights Arnaud de Puyfontaine Chairman of the Management Board Chief Executive Officer
Slide 4: Strong growth in revenues and EBITA
1. 2023 Key Highlights REVENUES EBITA of controlled businesses STRONG GROWTH +9.5% compared to FY 2022 +10.6% compared to FY 2022 2023 Results - March 7, 2024 4
Slide 5: A year of major transformation
1. 2023 Key Highlights A YEAR OF MAJOR TRANSFORMATION 2023 Results - March 7, 2024 5
Slide 6: Completed transaction: revenues and employees
1. 2023 Key Highlights COMPLETED TRANSACTION REVENUES * EMPLOYEES €17.9Bn ~73,000 2023 Results - March 7, 2024 6 *Pro forma revenues for 2023 full year (unaudited)
Slide 7: Active international development
1. 2023 Key Highlights 16.6 OUT OF 26.4M ACTIVE SUBSCRIBERS INTERNATIONAL OUTSIDE FRANCE DEVELOPMENT 2023 Results - March 7, 2024 7
Slide 8: New agencies, innovative solutions, strategic partnerships
1. 2023 Key Highlights 10 NEW AGENCIES INNOVATIVE SOLUTIONS STRATEGIC PARTNERSHIPS 2023 Results - March 7, 2024 8
Slide 9: New segments and growth levers
1. 2023 Key Highlights NEW SEGMENTS AND GROWTH LEVERS 2023 Results - March 7, 2024 9
Slide 10: Accelerate the transformation
1. 2023 Key Highlights ACCELERATE THE TRANSFORMATION 2023 Results - March 7, 2024 10
Slide 11: 2023 ESG performance: main progress achieved
1. 2023 Key Highlights 2023 ESG PERFORMANCE: MAIN PROGRESS ACHIEVED REDUCING STEPPING UP OUR IMPROVING EFFORTS IN CARBON GENDER GOVERNANCE FOOTPRINT* EQUALITY* AND ETHICS GREENHOUSE GAS EMISSIONS HEADCOUNT WEIGHTING OF ESG CRITERIA 72,958 PEOPLE IN MGMT BOARD’S • SCOPES 1 & 2 (1) -20% VARIABLE COMPE
Slide 12: Grow our businesses
1. 2023 Key Highlights GROW OUR BUSINESSES
Slide 13: Share price evolution
1. 2023 Key Highlights SHARE PRICE EVOLUTION APRIL 19, 2018 – MARCH 1, 2024| DIVIDENDS REINVESTED* Vivendi + 112.9% CAC 40 + 74.4% 04/2018 08/2018 12/2018 04/2019 08/2019 12/2019 04/2020 08/2020 12/2020 04/2021 08/2021 12/2021 04/2022 08/2022 12/2022 04/2023 08/2023 12/2023 *Dividends reinvested (wi
Slide 14: Significant conglomerate discount
1. 2023 Key Highlights SIGNIFICANT CONGLOMERATE DISCOUNT + 60% Dec 13, 2023 +44% + 50% + 40% + 30% + 20% + 10% 0% - 10% 01/2014 05/2014 09/2014 01/2015 05/2015 09/2015 01/2016 05/2016 09/2016 01/2017 05/2017 09/2017 01/2018 05/2018 09/2018 01/2019 05/2019 09/2019 01/2020 05/2020 09/2020 01/2021 05/2
Slide 15: Feasibility study for the proposed split of the company
1. 2023 Key Highlights FEASIBILITY STUDY FOR THE PROPOSED SPLIT OF THE COMPANY Publishing Investment Canal+ Havas and company distribution 2023 Results - March 7, 2024 15
Slide 16: HY 2023 Results
Arnaud de Puyfontaine Chairman of the Management Board HY 2023 RESULTS Chief Executive Officer
Slide 17: 2023 Financial Performance
02 2023 Financial Performance François Laroze Member of the Management Board Chief Financial Officer
Slide 18: Solid 2023 operating results
2. 2023 Financial Performance SOLID 2023 OPERATING RESULTS (%) 2023 2022 Revenues* € 10.5 Bn € 9.6 Bn + 9.5% EBITA of controlled businesses* € 715 M € 646 M +10.6% Adjusted net income* € 722 M € 343 M x2.1 Headcount* 73 000 35 800 x2 Proforma revenues** € 17.9 Bn Proforma EBIT** € 1.2 Bn Proforma
Slide 19: Financial situation
2. 2023 Financial Performance FINANCIAL SITUATION As of December 31, 2023 Shareowners’ Financial net debt equity -€ 2,839 M* € 17.1 Bn Cash Flow from Operations Available credit (CFFO)** facilities € 881 M € 3.2 Bn 2023 Results - March 7, 2024 19 * Vivendi financial net debt, excluding Lagardère: €
Slide 20: 2023 revenues
2. 2023 Financial Performance 2023 REVENUES 9.5% increase linked to Canal+ and Havas growth and the integration of Lagardère Consolidated revenue* by business unit Growth disaggregation organic in euro millions 2023 2022 (%) (%) (%) Canal+ Group 6,058 5,870 +3.2% +2.9% organic +2.6% Lagardèr
Slide 21: Q4 2023 revenues
2. 2023 Financial Performance Q4 2023 REVENUES Consolidated revenue* by business unit Growth disaggregation Q4 2023 Q4 2022 (%) organic (%) in euro millions (%) organic +1.5% Canal+ Group 1,599 1,578 +1.4% +1.6% Scope impact +25.2pts Lagardère** 670 na na +4.0% Havas 868 843 +2.9% +3.5% Curr
Slide 22: EBITA of controlled businesses: +12.1% organic growth
2. 2023 Financial Performance EBITA OF CONTROLLED BUSINESSES: +12.1% ORGANIC GROWTH* organic 2023 2022 (%) in euro millions (%) Canal+ Group 525 515 +2.0% +1.3% Lagardère** 20 na na na Havas 310 286 +8.3% +8.0% Prisma Media 28 31 -10.6% -9.8% Gameloft 5 12 -57.5% -58.9% Vivendi Village 13 (6) -
Slide 23: Contributions to EBITA and dividends received
2. 2023 Financial Performance Contributions to EBITA and dividends received in euro millions 2023 2022 Net earnings, group share 1,259 782 Elimination of the revaluation (gain)/loss on the investments in Spotify/TME (320) 436 Net earnings for Vivendi's contribution calculation 939 1,218 Contribution
Slide 24: Cash-flow
2. 2023 Financial Performance CASH-FLOW CFFO* by business unit 2023 2022 (€M) in euro millions Canal+ Group 398 343 +55 Lagardère** 139 na +139 Havas 307 342 -35 Prisma Media 8 21 -13 Gameloft 3 (2) +5 Vivendi Village (4) (37) +33 New Initiatives (47) (83) +36 Generosity and solidarity (12) (11) -
Slide 25: Net income
2. 2023 Financial Performance NET INCOME* 2023 2022 (%) in euro millions EBITA 934 868 +7.5% Income from non-op. equity affiliates (83) (334) Interest 13 (14) Dividends received from financial stakes 81 50 Provision for income taxes (155) (156) Non-controlling interests (68) (71) Adjusted net inco
Slide 26: Financial net debt evolution
2. 2023 Financial Performance FINANCIAL NET DEBT EVOLUTION (In €Bn) (0.6) 0.9 (0.6) 0.7 (0.3) (0.8) (0.9) (2.0) (2.8) Net debt CFFO C+ and Havas Dividend Sale of Editis Interest, taxes Vivendi 's Lagardère' s Total net debt as of M&A paid to and Gala and other net debt net debt as of Dec
Slide 27: Financial net debt situation
2. 2023 Financial Performance FINANCIAL NET DEBT SITUATION Analysis of net debt at 2023 YE* Interest* 2023 2022 December 31, 2023 December 31, 2022 in euro millions (except where noted) in euro millions Interest expense on borrowings (52) (31) Average interest rate on borrowings (%) 1.34% 0.80% Gros
Slide 28: Portfolio of financial assets as of March 1, 2024
2. 2023 Financial Performance PORTFOLIO OF FINANCIAL ASSETS AS OF MARCH 1, 2024 Total value* 11.56% 9.98% 35.01%** as of March 1, 2024 ~€ 8 Bn 19.79% 17.04% 30% Dividends received* in 2023 € 171 M 1.03% 19.21% 29.33% * Does not include Lagardère 2023 Results - March 7, 2024 28 ** As of February 1, 2
Slide 29: 2023 Business Unit Performances
03 2023 Business Unit Performances
Slide 30: Canal+ Group: solid growth driven by all segments
3. 2023 Business Unit Performances Solid growth driven by all segments organic 2023 2022* (%) in euro millions (%) Revenues 6,058 5,870 +3.2% +2.9% TV international 2,372 2,345 +1.2% +0.5% TV mainland France 3,223 3,119 +3.3% +3.3% Studiocanal 463 406 +14.0% +12.7% EBITA 525 515 +2.0% +1.3% EBIT
Slide 31: International footprint on 3 continents
3. 2023 Business Unit Performances International footprint on 3 continents 26.4 M Africa Europe subscribers* Of which 19.3 M 8.1 M self-distributed 16.3 M France APAC 9.8 M 1.2 M Other territories** * vs 25.5 M subscribers at end-Dec 2022 0.8 M ** French overseas territories, Comoros, Haiti, Mauriti
Slide 32: MultiChoice: presence in 16 African countries
3. 2023 Business Unit Performances MultiChoice is the Pay-TV leader in English and Portuguese speaking countries in Africa The combination of Canal+ and MultiChoice has significant potential for value creation Presence in 16 African countries A very attractive financial asset ✓ 17.3 million* subscri
Slide 33: Continued international development: Viu and Viaplay
3. 2023 Business Unit Performances Continued international development Viu partnership in Asia • 30% stake in share capital since February 26, 2024 • In addition to an initial staggered US$300 M investment, Canal+ holds an option to further increase its stake to 51% in the next few years • A unique
Slide 34: Lagardère: growth driven by Travel Retail and publishing
3. 2023 Business Unit Performances Sound growth driven by Travel Retail and leadership positions in publishing markets 2023 2022 organic 2023* 12-month 12-month in euro millions proforma proforma (%) Revenues 670 8,081 6,929 +14.0% Publishing 209 2,809 2,748 +1.9% Travel Retail 434 5,018 3,927 +23
Slide 35: Havas: another year of dynamic growth in 2023
3. 2023 Business Unit Performances Another year of dynamic growth in 2023 Stabilization of net revenues’ organic growth at a high level in Q4 2023 at +4.7% organic +6.3% 2023 2022 (%) (%) Q4 in euro millions 2023 +4.7% +4.5% Revenues 2,872 2,765 +3.9% +4.3% Net revenues 2,695 2,590 +4.1% +4.4% +
Slide 36: 2023 organic performance by geographical area
3. 2023 Business Unit Performances 2023 organic performance by geographical area +1.9% North +1.7% America Europe +9.9% Asia Pacific and Africa +4.4% +42.1% Latam 2023 Results - March 7, 2024 36
Slide 37: Havas: record M&A year in 2023
3. 2023 Business Unit Performances • Record M&A year in 2023, with 9 acquisitions and 1 partnership • Reinforced footprint in UK, Germany, India and North America • Strenghthened expertise in creativity, performance marketing and strategic communication / Germany / Canada / United Kingdom / Portugal
Slide 38: Prisma Media key figures
3. 2023 Business Unit Performances Key figures Interior Decoration & in euro millions 2023 2022 Luxury Revenues 309 320 Distribution 178 183 Advertising and BtoB 131 137 Harper’s Bazaar Milk Côté Maison 28 31 France Acquisition in July Acquisition in EBITA November 2023 Launched in February 2023 202
Slide 39: Gameloft key figures
3. 2023 Business Unit Performances Key figures Geographical distribution of 2023 revenues in euro millions 2023 2022 North America Revenues 311 321 44% EBITA 5 12 Asia-Pacific 15% • Continuation of the diversification strategy Latam around cross-platform games 5% EMEA • PC/console revenues: +28% org
Slide 40: New Initiatives
3. 2023 Business Unit Performances NEW INITIATIVES Key figures in euro millions 2023 2022 Revenues 152 122 EBITDA (22) (39) EBITA (43) (46) • Acceleration of GVA's growth (+44%) • Strong improvement in EBITDA • Stable EBITA 8 13 2023 Results - March 7, 2024 40
Slide 41: Conclusion
04 Conclusion vivendi
Slide 42: Conclusion
4. Conclusion CONCLUSION ▪ Strong growth of results in 2023 ▪ Q1 2024 revenues will be released on April 29, 2024 ▪ Ordinary dividend proposed at the April 29, 2024 shareholders’ meeting ▪ 0.25 € per share with respect to FY2023 ▪ A 2.6% yield ▪ Dividend would be payable as from April 30, 2024, with
Slide 43: HY 2023 Results
HY 2023 RESULTS
Slide 44: Appendices
05 Appendices vivendi
Slide 45: Exchange rates
5. Appendices EXCHANGE RATES Closing rates December 31, 2023 December 31, 2022 €1 = $1.100 $1.064 +3.3% €1 = £0.861 £0.872 -1.2% €1 = 4.324 PLN 4.689 PLN -7.8% Average rates Q4 2023 Q4 2022 2023 2022 €1 = $1.071 $0.995 +7.6% $1.083 $1.058 +2.3% €1 = £0.868 £0.871 -0.3% £0.871 £0.850 +2.5% €1 =
Slide 46: Q4 revenues and EBITDA by business unit
5. Appendices Q4 REVENUES AND EBITDA BY BUSINESS UNIT Q4 revenues 2023 EBITDA organic Q4 2023 Q4 2022 (%) 2023 2022 in euro millions (%) in euro millions Canal+ Group 1,599 1,578 +1.4% +1.6% Canal+ Group 843 810 Lagardère* 670 na na +4.0% Lagardère* 47 na Havas 868 843 +2.9% +3.5% Havas 462 439
Slide 47: P&L: IFRS and adjusted
5. Appendices P&L IFRS P&L Adjusted P&L 2023 2022 in euro millions 2023 2022 in euro millions Revenues 10,510 9,595 EBIT 847 761 Revenues 10,510 9,595 Income from non-op. equity affiliates (103) (393) EBITA 934 868 Interest 13 (14) Income from non-op. equity affiliates (83) (334) Dividendes received
Slide 48: Reconciliations
5. Appendices RECONCILIATIONS EBIT – EBITA - EBITDA Earnings attributable to Vivendi shareowners to ANI in euro millions 2023 2022 in euro millions 2023 2022 EBIT 847 761 Earnings attributable to Vivendi shareowners 405 (1,010) Amortization and depreciation of intangible assets acquired through Amor
Slide 49: 2023 Proforma P&L
5. Appendices 2023 PROFORMA P&L (unaudited) The purpose of the proforma unaudited financial information is to present Vivendi’s FY 2023 consolidated statement of earnings as if Lagardère had been fully consolidated from January 1, 2023. Proforma unaudited financial information is illustrative and re
Slide 50: Balance sheet evolution
5. Appendices BALANCE SHEET EVOLUTION (In €Bn) Assets Equity and liabilities 38.3 38.3 11.2 31.3 31.3 17.2 Goodwill 8.8 Portfolio of stakes 7.9 17.6 Rights of use (IFRS 16 leases) 2.9 9.2 6.1 Total equity Other non-current assets 5.0 0.6 3.1 Financial debt 2.7 3.7 Cash 2.2 1.9 0.7 IFRS 16 lease debt
Slide 51: Subscriber base and Q4 2023 revenues
5. Appendices Subscriber base Q4 2023 revenues December 31, December 31, organic Q4 2023 Q4 2022** (%) Δ in euro millions (%) in thousands 2023 2022 Mainland France 9,798 9,508 +290 TV - International 603 606 -0.4% -0.7% Europe (excluding Mainland France) 6,533 6,335 +198 TV - Mainland France 84
Slide 52: Distribution of 2023 net revenues
5. Appendices Distribution of 2023 net revenues By geographical area By sector Travel & Entertainment Latin America Retail 6% 7% 5% Automotive Asia Pacific 5% and Africa Healthcare & 9% Industries & Wellness Services 31% 7% Europe 48% Food & Drinks 8% North America 36% TMT Finance 8% 9% Consumer Goo
Slide 53: Q4 2023 net revenues
5. Appendices Q4 2023 net revenues organic in euro millions Q4 2023 Q4 2022 (%) (%) Revenues 868 843 +2.9% +3.5% Net Revenues 776 745 +4.3% +4.7% Europe 386 369 +4.6% +0.7% North America 262 276 -4.6% -0.4% Asia Pacific and Africa 78 62 +25.6% +23.7% Latin America 50 38 +30.8% +59.4% Change in n
Slide 54: Key 2023 gains
5. Appendices Key 2023 gains Havas Creative Havas Health & You Havas Media 2023 Results - March 7, 2024 54
Slide 55: Important legal disclaimer
5. Appendices IMPORTANT LEGAL DISCLAIMER Cautionary note regarding forward-looking statements This presentation contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, business, strategy, plans and outlook, including the impact of certain transaction
Slide 56: Glossary
5. Appendices GLOSSARY The non-GAAP measures defined below should be considered in addition to, and not as a substitute for, other GAAP measures of operating and financial performance. Vivendi considers these to be relevant indicators of the group’s operating and financial performance. Moreover, it