Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (June 2012)
44 slides from Vivendi's investor presentation, Jun 26, 2012
Slide 1: Vivendi Investor Presentation: Strategy & Outlook
June 2012 INVESTOR PRESENTATION VIVENDI STRATEGY & OUTLOOK IMPORTANT NOTICE: Financial statements for the fiscal year ended December 31, 2011 are audited and prepared under IFRS Financial statements for the first quarter ended March 31, 2012 are unaudited and prepared under IFRS Investors are strong
Slide 2: A World Leader in Communication and Entertainment
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 A WORLD LEADER IN COMMUNICATION AND ENTERTAINMENT Vivendi operates at the heart of the worlds of content, platforms and interactive networks Vivendi is a major player in the digital economy: – Content creation – Products and channels publ
Slide 3: Its Businesses Are Leaders in Their Areas
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 ITS BUSINESSES ARE LEADERS IN THEIR AREAS 61%* 100% 100% #1 worldwide in #1 worldwide #1 alternative telecoms video games in music in France 53%* 100% 100%** #1 alternative #1 in telecoms broadband operator #1 in pay TV in Morocco in Brazil i
Slide 4: Return to Significant Earnings Growth Expected in 2014
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 RETURN TO SIGNIFICANT EARNINGS GROWTH EXPECTED IN 2014 2008 – 2011 Current Next Simplified group structure Solid operational Stabilization of SFR and portfolio optimization performances with focus on access to cash Continued organic g
Slide 5: Strengthening and Building Future Cash Flow
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 STRENGTHENING AND BUILDING FUTURE CASH FLOW CONTINUED INVESTMENTS IN BRAZIL GVT’s contribution to CFFO expected to ~€2.2bn cumulative investment over 2010-2012 to deploy increase by ~€400m from 2011 to 2014 GVT broadband network and pay TV
Slide 6: Prudent Funding Strategy
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 PRUDENT FUNDING STRATEGY OUR OBJECTIVES WHERE WE STAND, AS OF JUNE 21, 2012 COMMIT TO BBB / Baa2 / BBB RATING Sustained BBB rating since 2005 MAINTAIN / INCREASE AVERAGE Average maturity of the debt: 4.2 years DEBT DURATION ABOVE 4 YEARS vs.
Slide 7: Q1 2012 Results: In Line with Full Year Outlook
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 Q1 2012 RESULTS: IN LINE WITH FULL YEAR OUTLOOK Revenues of €7,119m up 1.7% excl. Activision Blizzard EBITA of €1,621m, +1.9% excl. Activision Blizzard In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency Activision Blizzard 3
Slide 8: 2012 Guidance by Business Confirmed
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 2012 GUIDANCE BY BUSINESS CONFIRMED (AS OF MAY 14, 2012) ACTIVISION BLIZZARD EBITA above €750m (vs. around €750m as of March 1, 2012 ) UNIVERSAL MUSIC GROUP Double digit EBITA margin at constant perimeter* 12% to 15% decrease in EBITDA** SFR
Slide 9: Reasons to Invest in Vivendi Shares
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 REASONS TO INVEST IN VIVENDI SHARES An attractive valuation* ► 2012 P/E ratio below 7x ► 2012 dividend yield above 7% Focus on growth and free cash flow generation ► 20% of 2011 revenues in emerging markets vs. 14% in 2008 ► EBITDA = 30%
Slide 10: Outlook and Conclusion: 2012 Guidance
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 OUTLOOK AND CONCLUSION Stimulate growth initiatives in all businesses to create shareholder value and contribute to group earnings progression in 2014 Continue adapting our cost structure Sustain cash generation Commit to BBB* rating
Slide 11: The Best Emotions, Digitally
THE BEST EMOTIONS, DIGITALLY vervaon Ba “BH GB tes GV, ETT
Slide 12: Financial Review
FINANCIAL REVIEW Q1 2012 Results
Slide 13: EBITA Up 1.9% Excl. Activision Blizzard
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 EBITA UP 1.9% EXCL. ACTIVISION BLIZZARD, DUE TO STRONG PERFORMANCE FROM GVT AND UMG In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency Activision Blizzard 395 502 - 21.3% - 24.6% Universal Music Group 68 46 + 47.8% + 43.8% SFR 5
Slide 14: Lower Adjusted Net Income Due to Higher Taxes and NBCU Deconsolidation
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 LOWER ADJUSTED NET INCOME DUE TO HIGHER TAXES AND NBCU DECONSOLIDATION In euro millions - IFRS Q1 2012 Q1 2011 Change % Revenues 7,119 7,184 - 65 - 0.9% EBITA 1,621 1,705 - 84 - 4.9% Income from equity affiliates (19) (2) - 17 Incl. contractu
Slide 15: Evolution of Net Debt
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 Stable EVOLUTION OF NET DEBT CFFO before capex at €1.7bn Net Debt Net financial Net Debt December 31, CFFO Capex,net Interest & tax investments March 31, 2011 before Capex, net paid and other and other 2012 (12.0) +1.7 (2.1) 0.2 (12.5) (0.3)
Slide 16: Financing Operations Since January 2012
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 FINANCING OPERATIONS SINCE JANUARY 2012 January: Setting up of a €1.1bn 5 year bank credit facility (refinancing the €1.5bn tranche of the €5bn credit facility maturing in December 2012 and a €492m facility maturing in March 2012) January
Slide 17: Activision Blizzard Highlights
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 SLIGHTLY BETTER-THAN-EXPECTED RESULTS IFRS - Q1 2012 Q1 2011 Change Constant In euro millions currency 2012 GUIDANCE UPGRADED Revenues 894 1,061 - 15.7% - 19.1% Activision 649 671 - 3.3% - 7.3% EBITA above €750m Blizzard 196 335 - 41.5% - 43.
Slide 18: Universal Music Group Highlights
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 EXCELLENT START OF THE YEAR In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency 2012 GUIDANCE CONFIRMED Revenues 961 881 + 9.1% + 6.7% Double digit EBITA margin EBITA 68 46 + 47.8% + 43.8% at constant perimeter* o/w restructuring
Slide 19: SFR Highlights
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 IN-LINE Q1 RESULTS AND CONFIRMED 2012 GUIDANCE In euro millions - IFRS Q1 2012 Q1 2011 Change Revenues 2,927 3,056 - 4.2% 2012 GUIDANCE CONFIRMED Mobile 1,988 2,132 - 6.8% 12% to 15% decrease in EBITDA* Broadband Internet & Fixed 991 988 + 0.
Slide 20: Maroc Telecom Group Highlights
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 POSITIVE MOMENTUM In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency 2012 GUIDANCE CONFIRMED Revenues 676 672 + 0.6% + 0.2% Morocco 529 549 - 3.6% - 4.0% EBITA margin around 38% International 155 128 + 21.1% + 21.5% Stable CFFO
Slide 21: GVT Highlights
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 CONTINUED GROWTH & SUCCESSFUL PAY TV LAUNCH In euro millions - IFRS Q1 2012 Q1 2011 Change Constant Currency 2012 GUIDANCE GUIDANCECONFIRMED 2012 Revenues 432 329 + 31.3% + 35.0% Telecom 424 329 + 28.9% + 32.5% Revenue growth in the mid-30's
Slide 22: Canal+ Group Highlights
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 RESILIENT PROFIT DESPITE VAT IMPACT In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency 2012 GUIDANCE CONFIRMED Revenues 1,232 1,192 + 3.4% + 3.8% o/w Canal+ France 1,030 1,008 + 2.2% + 2.2% Slight increase in EBITA at constant p
Slide 23: The Best Emotions, Digitally
THE BEST EMOTIONS, DIGITALLY vervaon Ba “BH GB tes GV, ETT
Slide 24: Appendices: Details of Business Operations
APPENDICES Details of Business Operations
Slide 25: Activision Blizzard Net Revenues by Channel and Platform
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 Non-GAAP* Net revenues by distribution Q1 2012 Q1 2011 % Change Non-GAAP* - Q1 2012 Q1 2011 Change channel - In dollar millions In dollar millions Retail channels 224 240 -7% Activision 271 323 -16% Digital online channels ** 298 440 -32% Bli
Slide 26: Reconciliation to IFRS
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 RECONCILIATION TO IFRS In millions Q1 2012 In millions Q1 2012 Non-GAAP Net Revenues $587 Non-GAAP Operating Income/(Loss) $90 Changes in deferred net revenues (a) $585 Changes in deferred net revenues and related cost of sales (a) $447 Net R
Slide 27: Universal Music Group: Top Sellers and 2012 Upcoming Releases
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 Recorded music : Top-selling artists* Million units Q1 2012 Q1 2011 Madonna 2.0 Justin Bieber 1.3 Lana Del Rey 1.5 Rihanna 1.1 Recorded Music Revenues Q1 2012 Q1 2011 Nicki Minaj 1.1 Les Enfoirés 0.9 Europe 39% 43% Van Halen 0.9 Eminem 0.5 No
Slide 28: SFR Revenues Q1 2012 vs Q1 2011
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 Q1 2012 Q1 2011 Change Change excl. In euro millions - IFRS Regulatory Impacts* Service revenues 1,863 2,004 - 7.0% - 0.2% of which data revenues from mobile services 713 688 + 3.6% Equipment sales, net 125 128 - 2.3% Mobile revenues 1,988 2,
Slide 29: SFR Mobile, Broadband Internet and Fixed
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 Q1 2012 Q1 2011 Change MOBILE Customers (in '000)* 20,843 21,039 - 0.9% Postpaid customers (in '000)* 16,292 15,916 + 2.4% Proportion of postpaid clients* 78.2% 75.6% + 2.6 pts Smartphone penetration ** 43% 31% + 12 pts Market share on custom
Slide 30: Maroc Telecom: Morocco and International Operations
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 MOROCCO Q1 2012 Q1 2011 In '000 Mar. 31, 2012 Mar. 31, 2011 Mobile customers (in '000) 17,194 16,655 Mauritania Postpaid mobile customers (in '000) 1,081 877 Mobile customers 1,848 1,696 Mobile ARPU (MAD/customer/month) 80 84 Fixed lines 41 4
Slide 31: GVT Operating Metrics
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 In '000 Mar. 31, 2012 Mar. 31, 2011 Change In BRL millions - IFRS Q1 2012 Q1 2011 Change Total Homes passed 7,677 5,699 + 34.7% Total Revenues 1,009 747 + 35.1% Total Lines in Services (LIS) 6,941 4,765 + 45.7% Voice 631 462 + 36.6% Retail an
Slide 32: Canal+ Group Portfolio
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 In '000 Mar. 31, 2012 Mar. 31, 2011 Change Portfolio Canal+ Group 12,817 12,525 + 292 ow Canal+ France* 11,097 10,886 + 211 ow Poland & Vietnam 1,720 1,639 + 81 32 * Individual and collective subscriptions at Canal+, CanalSat in Mainland Fran
Slide 33: Appendices: Detailed Vivendi Financial Results
APPENDICES Detailed Vivendi Financial Results
Slide 34: Revenues
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 REVENUES Constant In euro millions - IFRS Q1 2012 Q1 2011 Change currency Activision Blizzard 894 1,061 - 15.7% - 19.1% Universal Music Group 961 881 + 9.1% + 6.7% SFR 2,927 3,056 - 4.2% - 4.2% Maroc Telecom Group 676 672 + 0.6% + 0.2% GVT 43
Slide 35: EBITDA
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 EBITDA In euro millions - IFRS Constant Q1 2012 Q1 2011 Change currency Activision Blizzard 429 559 - 23.3% - 26.4% Universal Music Group 101 79 + 27.8% + 25.8% SFR 930 923 + 0.8% + 0.8% Maroc Telecom Group 379 361 + 5.0% + 4.7% GVT 177 138 +
Slide 36: Interest
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 INTEREST In euro millions (except where noted) – IFRS Q1 2012 Q1 2011 Interest (139) (101) Interest expense on borrowings (145) (113) Average interest rate on borrowings (%) 3.63% 4.17% Average outstanding borrowings (in euro billions) 16.0 1
Slide 37: Income Tax
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 INCOME TAX Q1 2012 Q1 2011 In euro millions – IFRS Adjusted Net income Adjusted Net income net income net income Utilization of Vivendi SA’s tax losses carried forward 109 103 205 261 Tax charge (505) (474) (496) (459) Provision for income ta
Slide 38: Reconciliation of Adjusted Net Income to Net Income, Group Share
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 RECONCILIATION OF ADJUSTED NET INCOME TO NET INCOME, GROUP SHARE In euro millions - IFRS Q1 2012 Q1 2011 Adjusted Net Income 823 950 Amortization and impairment losses of intangible assets acquired (111) (123) through business combinations In
Slide 39: Vivendi Debt Maturity Profile
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 VIVENDI DEBT MATURITY PROFILE* (in euro millions, as of June 15, 2012) 2,600 2,240 Bank credit facility maturities 1,500 Bond 2,000 maturities 1,923 2,000 1,538 1,194 1,050 1,000 700 700 615 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 40: Appendices: Glossary & Disclaimers
APPENDICES Glossary & Disclaimers
Slide 41: Glossary
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 GLOSSARY Adjusted earnings before interest and income taxes (EBITA): As defined by Vivendi, EBITA corresponds to EBIT (defined as the difference between income and charges that do not result from financial activities, equity affiliates, disco
Slide 42: Activision Blizzard Standalone Definition & Disclaimer
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 ACTIVISION BLIZZARD STANDALONE DEFINITION & DISCLAIMER 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 wi
Slide 43: Important Legal Disclaimer
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 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
Slide 44: Investor Relations Team
I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 2 INVESTOR RELATIONS TEAM Jean-Michel Bonamy Executive Vice President Head of Investor Relations +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com PARIS NEW YORK 42, avenue de Friedland 800 Third Avenue 75380 Paris cedex 08 / France New York, NY