Vivendi Se · EURONEXT:VIV
Vivendi — Debt Investor Presentation (June 2019)
38 slides from Vivendi's debt investor presentation, Jun 4, 2019
Slide 1: Credit Investor Presentation June 2019
Credit Investor Presentation June 2019 Credit Investor Presentation - June 2019 1
Slide 2: Important legal disclaimers
Important legal disclaimers This presentation has been prepared solely for the purpose of providing information about Vivendi and its consolidated subsidiaries (the “Group”). Recipients should not rely solely on the information contained herein when making any investment decision. This presentation
Slide 3: Summary
Summary Vivendi’s profile 4 Key business units & Recent developments 9 Financial Profile 25 Appendix 34 Credit Investor Presentation - June 2019 3
Slide 4: Vivendi's profile
Vivendi’s profile Credit Investor Presentation - June 2019 4
Slide 5: Highlights
Highlights ▪ A strategy to build a world-class content, media and communications group based in Europe ▪ Strong cash flow generation and liquidity profile ▪ Prudent and diversified funding strategy ▪ Baa2 (Moody’s) / BBB (S&P) ratings; both stable ▪ Solid start in 2019: +5.7% organic growth in Q1 re
Slide 6: Vivendi's profile and key figures
Vivendi’s profile and key figures World-class content, media and communications group Four pillars Other businesses 2018 100% Headcount* 44,142 100% Revenues € 13,932 M 100% EBITA € 1,288 M 100% 100% Adjusted net income € 0.92 / share Dividend € 0.5 / share 100% Key holdings in the sector Market € 3
Slide 7: Positioned on markets with sustainable growth
Positioned on markets with sustainable growth 83% of people regard entertainment as a vital necessity * * La t e st H a va s P ro su me r re p o rt Ma y 2019 Credit Investor Presentation - June 2019 7
Slide 8: A global champion in the creative industries
A global champion in the creative industries REVENUES BY BUSINESS SEGMENT REVENUES BY GEOGRAPHY Year ended December 31 Year ended December 31, 2018 €7,562m EUROPE (including France) €4,395m In millions of euros 2017 2018 THE AMERICAS €1,373m Universal Music Group 5,673 6,023 ASIA & OCEANIA €602m Can
Slide 9: Key business units & Recent developments
Key business units & Recent developments Credit Investor Presentation - June 2019 9
Slide 10: First quarter 2019 revenues
First quarter 2019 revenues % % In millions of euros - IFRS Q1 2018 Q1 2019 Change Organic change* Universal Music Group 1,222 1,502 + 22.9 % + 18.8 % Canal+ Group 1,298 1,252 - 3.6 % - 3.3 % Havas Group 506 525 + 3.8 % + 0.1 % Editis** na 89 Other businesses*** 98 91 TOTAL VIVENDI 3,124 3,459 + 10.
Slide 11: Universal Music Group
Universal Music Group ▪ UMG, the world’s leading music company, engaged in: ▪ recorded music (more than 80% of its revenues) - the world leader (> 30% market share) with more than 50 labels representing all musical styles and the biggest recorded music catalog in the world (more than 3 million title
Slide 12: UMG: faster growth and improved profitability
UMG: faster growth and improved profitability Significant increase of streaming and Revenues evolution EBITA growth subscriptions revenues (in millions of euros and organic growth*) (in millions of euros and organic growth*) (in millions of euros and organic growth*) +37.3% +10.0% +22.1% +10.0% +35.
Slide 13: UMG: Strong organic growth in Q1 2019
UMG: Strong organic growth in Q1 2019 D organic Q1 2018 Q1 2019 D (%) in euro millions - IFRS (%)* Recorded music 980 1,208 +23.3% +19.2% Subscriptions and streaming 557 737 +32.4% +28.1% Other digital sales (mainly downloads) 121 104 -14.1% -18.2% Physical sales 155 193 +24.2% +20.8% License and Ot
Slide 14: Opening of UMG's share capital
Opening of UMG’s share capital ▪ Vivendi is continuing the process of opening up UMG’s share capital, as announced in July 2018. The Company has set itself the objective, in close collaboration with the UMG teams, to sell up to 50% of the UMG’s share capital to one or more partners likely to acceler
Slide 15: Canal+ Group
Canal+ Group ▪ A leader in the production, bundling and distribution of first-run movie channels and thematic channels: ▪ in France, ▪ in Africa (c.25 countries), in Poland, in Vietnam and in Myanmar ▪ 16.2 M subscribers end of 2018, of which c. 50% of subscribers from international operations ▪ Stu
Slide 16: Canal+ Group: Recovery of the activity in France and continuous growth internationally
Canal+ Group: Recovery of the activity in France and continuous growth internationally Sustained growth Improvement of EBITA of the subscriber base before restructuring (in thousands) charges (in millions of euros and organic growth) +654 +21.8% +600 16,248 14,994 15,594 +29.5% Mainland France Inter
Slide 17: Canal+ Group - Q1 2019 Sustained growth of the international subscriber base
Canal+ Group - Q1 2019 Sustained growth of the international subscriber base REVENUES BY BUSINESS SEGMENT D organic Q1 2018 Q1 2019 D (%) in euro millions - IFRS (%)* TV - International 386 401 +3.9% +4.7% TV - Mainland France 801 761 -5.0% -5.0% Studiocanal 111 90 -19.4% -19.3% Revenues - Canal+ Gr
Slide 18: M7 Acquisition Project
M7 Acquisition Project ▪ On May 27, 2019, Canal+ Group announced acquisition project of M7 to expand its European footprint ▪ M7, is one of the largest independent pay-TV companies in Europe operating in Benelux and Central Europe and owned by Astorg, a leading European private equity firm: – Aggreg
Slide 19: Havas Group
Havas Group ▪ One of the world’s largest communication groups acquired by Vivendi in July 2017 ▪ The most integrated group in the industry with more than 60 Villages on 5 continents ▪ In 2018, Havas posted Net Revenues of €2.2 Bn. It counts approximately 20,000 employees in over 100 countries ▪ Hava
Slide 20: Havas Group: sequential improvement in organic growth and profitability in 2018
Havas Group: sequential improvement in organic growth and profitability in 2018 Sequential organic Net revenues breakdown by Margin**/Net revenues net revenues growth* division improvement Media 11.6% H2 2018 +2.7% 37% Creation 10.7% 46% 9.9% 10.9% H1 2018 -2.9% Havas Health & You 17% * At constant
Slide 21: Havas Group: Q1 2019 Net Revenues
Havas Group: Q1 2019 Net Revenues NET REVENUES BY GEOGRAPHY In millions of euros Q1 2018 Q1 2019 % change % Organic change* Revenues 506 525 +3.8% +0.1% Net Revenues** 482 502 +4.0% +0.1% Europe 244 247 +1.0% +0.0% North America 169 190 +12.1% +1.5% Asia Pacific and Africa 39 39 +0.8% -1.8% Latin Am
Slide 22: Acquisition of Editis, a new milestone
Acquisition of Editis, a new milestone ▪ Another brick in the implementation of Vivendi’s strategy ▪ Acquisition of 100% of Editis was completed on January 31, 2019, based on an EV of €900 M* ▪ #2 French-language publishing group ▪ Strong expertise in the management of IP rights and creativity ▪ ~€7
Slide 23: Other businesses
Other businesses ▪ Leading French mobile video game ▪ Live entertainment, franchise promotion, ▪ One of the leading video platforms in the publisher and ticketing world ▪ 189 smartphone games developed in its 19 design studios ▪ Vivendi Village is a testing ground to ▪ 2.2 Bn views per month ▪ 98 mi
Slide 24: Other businesses
Other businesses 2018 D organic 2017 2018 D (%) in euro millions - IFRS (%)* Gameloft 320 293 -8.3% -5.1% Vivendi Village 109 123 +12.6% +11.5% New Initiatives 51 66 +30.5% +30.5% Intercompany Elimination (44) (58) Revenues - Other businesses 436 424 -2.6% +4.3% Q1 2019 D organic Q1 2018 Q1 2019 D (
Slide 25: Financial profile
Financial profile Credit Investor Presentation - June 2019 25
Slide 26: Prudent financial policy with strong liquidity
Prudent financial policy with strong liquidity Solid financial profile ▪ Rating Baa2 by Moody’s and BBB by S&P (stable in both cases) Rating Agency Type of debt Ratings Outlook Rating date Standard & Poor's Senior unsecured debt BBB Stable July 27, 2005 Moody's Senior unsecured debt Baa2 Stable Sept
Slide 27: Vivendi average debt maturity of 5.3 years
Vivendi average debt maturity of 5.3 years 3,400 ** 30 330 150 * 1,000 850 700 600 500 400 2019 2020 2021 2022 2023 2024 2025 2026 Bonds Bank credit facility maturities * Maturing Dec. 2019 ** €3.4 Bn of Vivendi SA undrawn credit facilities (CF), maturing in January 2024 without any financial covena
Slide 28: Rationale for a potential bond issue
Rationale for a potential bond issue ▪ Benefit from current optimal market conditions to finance M7 acquisition announced in May 2019 ▪ Refinance the €700 M bond maturing in December 2019 ▪ General corporate purposes Credit Investor Presentation - June 2019 28
Slide 29: Key consolidated figures
Key consolidated figures In millions of euros 2017 2018 % Change % Organic* change Revenues 12,518 13,932 + 11.3 % + 4.9 % EBITDA 1,377 1,740 + 26.3 % CFFO (Cash Flow from 989 1,126 + 13.8 % Operations) Adjusted net income 1,300 1,157 - 11.1 % + 33.6 %** Net cash / (Net debt) as of (2,340) 176 Decem
Slide 30: EBITDA by business
EBITDA by business In millions of euros 2017 2018 Universal Music Group 832 979 Canal+ Group 570 638 Havas Group* 151 293 Other businesses** (176) (170) TOTAL VIVENDI 1,377 1,740 * Havas is consolidated since July 3, 2017 **Other businesses include Gameloft, Vivendi Village and New Initiatives Credi
Slide 31: CFFO (Cash Flow From Operations) by business
CFFO (Cash Flow From Operations) by business In millions of euros 2017 2018 Universal Music Group 646 838 Canal+ Group 238 259 Havas Group* 308 230 Other businesses** (203) (201) TOTAL VIVENDI 989 1,126 * Havas is consolidated since July 3, 2017 **Other businesses include Gameloft, Vivendi Village a
Slide 32: Consolidated balance sheet
Consolidated balance sheet Assets December 31, Equity and liabilities December 31, (in billions of euros) 2018 (in billions of euros) 2018 Goodwill 12.4 Consolidated equity* 17.5 Intangible and tangible assets 5.0 Provisions 1.9 Financial investments 6.0 Net deferred tax liabilities 0.1 Net cash pos
Slide 33: Return to shareholders
Return to shareholders ▪ Ordinary dividend of €0.50 per share paid in April 2019 (€636 M) with respect to 2018 fiscal year ▪ Share buyback ▪ In accordance with the authorization granted by the Shareholders’ meeting on April 15, 2019, Vivendi gave mandate on May 28th to a bank to purchase up to 5% of
Slide 34: Appendix
Appendix Credit Investor Presentation - June 2019 34
Slide 35: Revenues by business
Revenues by business % In millions of euros - IFRS 2017 2018 Change % Organic change Universal Music Group 5,673 6,023 + 6.2 % + 10.0 % Canal+ Group 5,198 5,166 - 0.6 % - 0.3 % Havas Group* 1,211 2,319 na na Other businesses** 436 424 - 2.6 % + 4.3 % TOTAL VIVENDI 12,518 13,932 + 11.3 % + 4.9 % * Ha
Slide 36: EBITA by business
EBITA by business (Adjusted Earnings Before Interest and Income Taxes) In millions of euros 2017 2018 % Organic change Universal Music Group 761 902 + 22.1 % Canal+ Group 300 400 + 32.8 % Havas Group* 111 215 na Other businesses** (203) (229) na TOTAL VIVENDI 969 1,288 + 24.7 % * Havas is consolidat
Slide 37: Liquidity and capital resources
Liquidity and capital resources In millions of euros Dec. 31, 2017 Dec. 31, 2018 Cash and cash equivalents 1,951 3,793 Cash management financial assets 75 599 Gross Cash position 2,026 4,392 Bonds (4,150) (4,050) Other financial liabilities, net (216) (166) (NET DEBT) / NET CASH POSITION (2,340) 176
Slide 38: Contacts
Contacts Investor Relations team Treasury team Xavier Le Roy Marc Reichert +33.1.71.71.18.77 +33.1.71.71.10.63 xavier.leroy@vivendi.com marc.reichert@vivendi.com Nathalie Pellet Alex Hebert +33.1.71.71.11.24 +33.1.71.71.11.40 nathalie.pellet@vivendi.com alex.hebert@vivendi.com Delphine Maillet Cathe