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Vivendi — Shareholder Meeting (April 2010)
45 slides from Vivendi's shareholder meeting presentation, Apr 29, 2010
Slide 1: Ordinary General Meeting April 29, 2010
Ordinary General Meeting April 29, 2010 Pierre Rodocanachi Chairman Human Resources Committee
Slide 2: Principles of the remuneration policy
1. Principles of the remuneration policy Comply with the AFEP/MEDEF code of governance Align the goals of senior managers and leading executives with the interests of shareholders Favor remuneration linked to performance and results Recruit, motivate and retain the executives necessary for our growt
Slide 3: Remuneration of senior managers
2. Remuneration of senior managers Policy implemented according to criteria for each country and business unit: Base salary (fixed), (fixed) according to comparisons examined by specialized consulting firms Bonus (as a %) Linked to performance: financial targets (68%) strategic priorities set by the
Slide 4: Commitments of senior managers
3. Commitments of senior managers To promote a spirit of entrepreneurship and risk-taking among leading managers Since 2007, senior managers have to hold within five years, in the form of Vivendi shares the equivalent of : 3 years of gross remuneration for the Chairman of the Management Board 2 year
Slide 5: Remuneration of the Chairman of the Supervisory Board
4. Remuneration of the Chairman of the Supervisory Board The Chairman’s annual fixed salary was reduced, at his request, from €1,000,000 to €700 000 as of May 1, €700,000, 1 2010 No board meeting attendance fees No bonus No stock options No performance shares No pension No severance 5
Slide 6: Situation of the Chairman of the Management Board
5. Situation of the Chairman of the Management Board The Supervisory Board has decided not to change the structure of remuneration of the Chairman and members of the Management Board for 2010 Remuneration: Fi d Fixed : €912 400 (identical €912,400 (id i l to 2009) Bonus for 2009 : €1,578,452 , , ((d
Slide 7: Employee profit-sharing plans
6. Employee profit-sharing plans For several years, Vivendi has encouraged sharing in the growth and profits f off the company by employees In France, all subsidiaries of the Group have put agreements in place for statutory and optional profit sharing plans paid to all French employees (15,400 emplo
Slide 8: Employee share ownership
7. Employee share ownership Each year, Vivendi carries out a share capital increase reserved for employees at a discount of 20% In 2009, 2009 more than 7,000 7 000 employees invested €71.2 €71 2 million, million or 0.40% of share capital Employees own 1.77% of Vivendi’s share capital, and this propo
Slide 9: General Meeting April 29, 2010
General Meeting April 29, 2010 Jean-Bernard Lévyy Chairman of the Management Board And Chief Executive Officer 9
Slide 10: New technologies enable consumers to access interactive services
New technologies enable cons Ne consumers, mers wherever here er the they are, are to access a multitude of interactive services and the Internet Vivendi is a major player in this new digital era: creating content producing products and channels developing service platforms distributing these produc
Slide 11: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video games Worldwide #1 Music Worldwide #1 AlternativeTelecoms France #1 Telecoms Morocco #1 Alternative Telecoms Brazil #1 Pay-TV France 11
Slide 12: 2009: solid results in a difficult environment
2009: solid results in a difficult environment Revenues €27.1bn +6.9% EBITA €5.4bn +8.8% Adjusted Net Income €2 6bn €2.6bn -5.5% 5 5% CFFO before capex €7.8bn +10.5% Proposed dividend €1.40 per share €1.7bn 12
Slide 13: Annual average growth of 8% in EBITA
Annual average growth of 8% in EBITA 5,390 4,953 4,721 4,370 3,985 2005 2006 2007 2008 2009 In millions of euros 13
Slide 14: Vivendi's shares currently have a yield of approximately 7%
Vivendi’s shares currently have a yield of approximately 7% Dividend per p share 1.40€ 1.40€ 1.30€ 1.20€ 1.00€ 0.60€ 2003 2004 2005 2006 2007 2008 2009 14
Slide 15: Annual average growth of 11% in dividends paid
Annual average growth of 11% in dividends paid 1,721 1,639 1,515 1 387 1,387 1,152 Dividends 2006 2007 2008 2009 2010 Paid in In million of euros 15
Slide 16: Vivendi's performance versus the CAC 40 since the 2008 AGM
Vivendi’s pperformance versus the CAC 40 since the 2008 AGM 110 100 90 CAC 40 -22.0% -22 0% VIV -22.8% 80 70 60 50 04/24/08 10/24/08 04/24/09 10/24/09 04/24/10 Since the start of the crisis: Vivendi’s shares outperformed (2008–2009) then, underperformed* (2009-2010) * Share price on 04/27/2010 1 6
Slide 17: Vivendi's share performance over the 2008-2010 period
Vivendi’s share performance over the 2008-2010 period Vivendi’s share price fell by less than the indices in a period of crisis, crisis but rose less than the indices did after the peak of the crisis: this contra-cyclical behavior reflects the “defensive” nature of Vivendi, which is classified among
Slide 18: Vivendi's share price
Vivendi’s share price The share price reflects neither the value of our assets nor our potential Disenchantment of European and global markets in the telecommunications sector in Europe is due to massive interventions by regulators and governments Vivendi’s growth strategy, particularly in emerging
Slide 19: Our strategic objectives have been achieved
Our strategic objectives have been achieved To deliver dividends to shareholders with a Cash dividend of €1.40 p proposed p distribution rate of at least 50% of Adjusted Net (total payment of €1.7bn) Income Annual investments of about €5bn in content To provide our business units with the and networ
Slide 20: Key event in 2009: sale of 20% stake in NBC Universal
Key event in 2009 Vi di tto sellll itits 20% stake Vivendi t k iin NBC U i l ffor $5 Universal 8b $5.8bn Vivendi has maximized value for its shareholders: The value of $5.8bn is at the top end of market expectations of $4-6bn Vivendi continue to receive quarterly dividends between now and the comple
Slide 21: Key event in 2009: GVT acquisition
Key event in 2009 GVT outstanding GVT: t t di assett andd perfect f t fit with ith Vi di Vivendi GVT, the #1 alternative operator in Brazil, sells fixed and broadband telecommunications to private individuals and companies Followingg the ppublic tender offer, Vivendi holds on the total controllingg
Slide 22: GVT: considerable growth potential
GVT: considerable growth potential Very strong growth, growth with the 2010 outlook recently revised upwards: Revenues*: up 29% (previously a gain of 26%) Adjusted EBITDA*: up 35% (previously up 30%) Ongoing geographic expansion in Brazil: Rio de Janeiro from 2010, Sao Paolo in 2011, and numerous ot
Slide 23: Activision Blizzard: #1 worldwide in video games
Activision Blizzard: #1 worldwide in video games A video game publisher for an audience of particularly demanding players A successful merger with confirmed successes in both Western countries and Asia Top-rated franchises: World of Warcraft, Guitar Hero, Call of Duty, StarCraft, Diablo The phenomen
Slide 24: Universal Music Group: #1 worldwide in music
Universal Music Group: #1 worldwide in music #1 worldwide in music pproduction: a qquarter of all albums sold or downloaded in the world #1 worldwide in music publishing: more than two million titles in catalog Major artists who reflect the diversity of the different types of music in the world A st
Slide 25: SFR: #1 in France in alternative telecoms
SFR: #1 in France in alternative telecoms Commercial successes in 2009 #1 in ppostpaid p net adds in 2009 with 36.2% market share #1 in broadband net adds in the fourth quarter of 2009 with a 38% market share thanks to the successful integration of Neuf Cegetel into SFR A company focused on its cust
Slide 26: SFR: market still growing strongly
SFR: market still growing strongly The French market is still benefiting from areas of strong growth… …in spite of the permanent and exaggerated pressure of regulators on price setting Th French The F h Fixed Fi d broadband b db d Internet I t t market k t continues ti t grow andd SFR iis particular
Slide 27: Maroc Telecom: #1 in Morocco in telecoms
Maroc Telecom: #1 in Morocco in telecoms Exceptional dynamism in Morocco #1 telecoms l operator in i Morocco M 15.3 million mobile customers and 1.2 million fixed lines in Morocco First operator to launch television via ADSL in Africa First supplier of access to the Internet in Morocco First domesti
Slide 28: Canal+ Group: #1 in France in pay-TV
Canal+ Group: #1 in France in pay-TV A strategy based on premium content… Canal Canal+ France: 10.8 10 8 million subscriptions, subscriptions #1 in pay pay-TVTV in France Canal Overseas: the leading French television operator abroad Recent launches in North Africa and Vietnam StudioCanal: the Europe
Slide 29: Class action: a long process
Class action: a long process Since 2002, Vivendi has been the subject of legal proceedings driven by American lawyers Of all the initial complaints made by these American lawyers, only one, relating to the lack of information about an alleged liquidity crisis, has been the subject of the trial in Ne
Slide 30: Class action: Vivendi will appeal to overturn jury verdict
Class action: Vivendi will appeal to overturn jury verdict Vivendi has many grounds for appeal, in particular because the individuals were exonerated while Vivendi was found liable for miscommunication ! The amount of the potential damages is uncertain and will not be known for at least 12 to 18 mon
Slide 31: Vivendi is strongly committed to a policy of sustainable development
Vivendi is strongly committed to a policy of sustainable development Our contribution: facilitating exchanges between people and generations; meeting the need for entertainment; promoting open-mindedness; strengthening social cohesion; and stimulating creativity and innovation Since 2009, social cri
Slide 32: Vivendi is strongly committed to a policy of sustainable development
Vivendi is strongly committed to a policy of sustainable development Partnerships to analyze the impact of our offers and content on society: The European Commission, Unesco, NGOs, Universities A rigorous and proactive initiative: Procedures for reporting civic, social and environmental indicators M
Slide 33: Vivendi's Shareholder Committee
Vivendi’s Shareholder Committee The Vivendi Shareholder Committee was established in September 2009 : Objectives: Strengthen g communications between the shareholders and the Groupp Create a forum in which both parties can talk and listen to each other The committee’s composition reflects the divers
Slide 34: The Vivendi Shareholder Club
The Vivendi Shareholder Club The Vivendi Shareholder Club is being set up today Aims to developp a means of communication with individual shareholders and improve p the flow of information to each of them The members of the Vivendi Shareholder Club will receive the following benefits: Invitations to
Slide 35: Events for Vivendi shareholders
Events for Vivendi shareholders Thee “Thursday, u sday, it’ss Vivendi” e d meetings ee gs oon individual d dua themes e es Regional shareholder meetings: Lille (May 18), Nantes (June 16), Rouen (June 17), Perpignan (September 28), Bordeaux (October 5), Rennes (November 4) The shareholder fair: Salon
Slide 36: 2010 Prospects look good for Vivendi
2010 Prospects look good for Vivendi A first quarter in line with our expectations Slight growth expected in EBITA, in spite of the uncertainties over the economic environment and consumer demand Vivendi continues to invest in content and networks to layy the foundations of future growth g dividend
Slide 37: 2009 Results
2009 Results Philippe Capron Member of the Management Board & Chief Financial Officer 37
Slide 38: 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% Total p proposed p dividends: € 1,721 m + 5.0% Cash flow before capex: p € 7,799 , m + 10.5% Cash flow: € 5,237 m + 3.6% Net Debt*: € 9.6 bn at end 2009 Net Debt
Slide 39: Each business contributes to the group's profit
Each business contributes to the group’s profit In euro millions - IFRS 2008 2009 Activision Blizzard 34 484 Universal Music Group 686 580 SFR 2,542 2,530 Maroc Telecom Group 1,224 1,244 GVT - 20 C l Group Canal+ G 568 652 Holding & corporate / Others (101) (120) Total EBITA 4,953 5,390 Including th
Slide 40: 2009 Net Income, group share was impacted by non-cash charges
2009 Net Income, group share was impacted by non-cash charges In euro millions - IFRS Adjusted Net Impairment losses Reserve accrued Reversal of Other impacts Net Income, Income at UMG for the Securities deferred tax asset group share Class Action in related to the the United States utilization of N
Slide 41: Each business generates cash
Each business generates cash… In euro millions - IFRS 2008 2009 Activision Blizzard 345 1,043 U i Universall Music M i G Group 555 329 SFR 4,057 3,966 Maroc Telecom Group 1,455 1 455 1,659 1 659 GVT - 65 Canal+ Groupp 592 559 Dividends from NBC Universal 294 306 Holding & corporate / Others (242) (1
Slide 42: …and contributes to the group's deleveraging
…and contributes to the group’s deleveraging Net Debt,, in euro billions 9.6 8.3 Cash generation ti 6.5 5.5 Acquisition q of 100% of GVT Sale of for € 3.1bn** NBC Universal for $ 5.8bn* 2008 2009 excluding GVT 2009 actual 2009 pro forma* *Vivendi will receive $$2.0bn on September p 26,, 2010. If the
Slide 43: Our financial situation remains very solid
Our financial situation remains very solid … Strong cash generation by our businesses Debt and cost of financing under control Quality of our rating* 5 7 bn undrawn credit line at end March 2010 € 5.7 …and secures the payment of a high dividend * Standard & Poor’s / Fitch: BBB stable and Moody’s: Ba
Slide 44: 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, p , such state
Slide 45: Vivendi
vivendi