Vivendi Se · EURONEXT:VIV
Vivendi — Debt Investor Presentation (May 2016)
39 slides from Vivendi's debt investor presentation, May 18, 2016
Slide 1: Credit Investor Presentation
CREDIT INVESTOR PRESENTATION Paris – May 18, 2016
Slide 2: Important Legal Disclaimers
IMPORTANT LEGAL DISCLAIMERS This presentation has been prepared solely for the purpose of providing information about Vivendi (“the Company”) and its consolidated subsidiaries (the “Group”). Recipients should not rely solely on the information contained herein when making any investment decision. Th
Slide 3: Important Legal Disclaimers (continued)
IMPORTANT LEGAL DISCLAIMERS (continued) This presentation may be made available in France only to (a) persons providing investment services relating to portfolio management for the account of third parties (personnes fournissant le service d'investissement de gestion de portefeuille pour compte de t
Slide 4: Vivendi's profile
Vivendi’s profile The Group’s three pillars New initiatives Key figures 2015 90,0% Headcount 16,395 100% 30% Countries 60 26,2% Revenues €10.8bn 100% (1) 17,7% 29,2% Income from oper. €1,061m Adjusted net €697m (2) 100% income 24,7% 100% (3) Dividend €3/share Market cap. (4) €22.5bn 15,0% (1) As of
Slide 5: A leading integrated media and content Group
A leading integrated media and content Group to achieve one Vivendi possesses… in order to… and follow two paths… objective 3 major assets with leading positions Continuously invest in Production of our businesses exclusive content Make Value creation Bolt-on acquisitions Acceleration of a global Fi
Slide 6: A world-class European media group
A world-class European media group Revenues by geographic region (2015) Revenues by activity (2015) Other activities Music publishing 7% 1% PayTV Recorded music and 31% mainland France merchandising Distribution 47% 53% 41% Content 13% PayTv 5% 2% international Films/Series FTA TV production and dis
Slide 7: UMG: Reinforced leadership in music
UMG : Reinforced leadership in music ■ UMG is #1 worldwide in recorded music with 34%* market share ■ Around 50 labels spanning the full musical spectrum ■ Albums among the 2015 top sellers Sam Smith - 2016 Oscars Nekfeu - 2016 Victoires de la Musique Taylor Swift - 2016 Grammy Awards 7 * 2015, sour
Slide 8: UMG at the forefront of the digital transformation
UMG at the forefront of the digital transformation ■ Streaming: the new growth driver in the music industry Revenues from streaming worldwide* Paying streaming subscribers worldwide* (in US$ millions) (in millions) 2,850 68 2,000 1,500 41 1,000 28 20 2012 2013 2014 2015 2012 2013 2014 2015 ■ UMG par
Slide 9: UMG: growth opportunities in new territories
UMG: growth opportunities in new territories ■ The music industry is concentrated in a handful of mature markets* UMG revenues by geography (2015) c. 3% in BRICS 22% in the rest of the world c. 75% in 5 countries ■ Promising development prospects, especially via partnerships with telecom operators 9
Slide 10: Canal+ Group: television activities supported by international development
Canal + Group: television activities supported by international development ■ France ■ RoW Fierce competition in the pay-TV segment 5.5 million subscribers in 4 large markets including Africa A growing free-to-air segment Content tailored to each market 10
Slide 11: Canal+ France: execution of an extensive transformation plan
Canal+ France: execution of an extensive transformation plan ■ The need to address all market segments and consumption patterns and redesign the customer experience Set-top box Multiroom, fast zapping 4k, start over… Offers CANAL+ focused on Customer service Address all market segments and Premium e
Slide 12: Canal+ Group: key player and partner for cinema
Canal + Group: key player and partner for cinema ■ Studiocanal is Europe’s #1 film studio ■ A catalog of popular box-office hits ■ Invests €800 million in French and international cinema each year 12
Slide 13: Vivendi Village: a family of high-potential small companies
Vivendi Village: a family of high-potential small companies ■ Companies providing digital services and/or specializing in live entertainment and talents ■ The same entrepreneurial spirit ■ A lab for ideas and an opportunity to experiment 13
Slide 14: Vivendi Village: a family of high-potential small companies
Vivendi Village: a family of high-potential small companies 14
Slide 15: Best-in-class platforms to fast-track distribution
Best-in-class platforms to fast-track distribution ■ Dailymotion Dailymotion’s audience France’s #1* website and one of the world’s leading digital platforms: 300 million people watch 3.5 Europe, Africa billion videos each month* and Middle East 1.3 billion Americas International presence: large
Slide 16: Investing in videogames
Investing in videogames ■ Videogame segment is one of the most dynamic in the media industry ■ Mobile gaming is growing fast (c. 1/3 of videogame industry revenue) ■ Gameloft and Ubisoft are in line with Vivendi’s strategy 16
Slide 17: Investing in content production companies
Investing in content production companies ■ The goal: produce our own content and increase international productions Banijay Group, one of the world’s largest independent television production and distribution companies, resulting from the merger between Banijay and Zodiak Media Mars Films, a le
Slide 18: Partnerships with telecom operators
Partnerships with telecom operators ■ Telecom Italia A foothold in a market where we share the same Latin culture 150 million* subscribers Support Telecom Italia over the long term in its development worldwide projects ■ Telefonica 300 million* subscribers worldwide Expand Vivendi’s content di
Slide 19: High ambitions for Pay-TV in Southern Europe
High ambitions for Pay-TV in Southern Europe ■ A strategic and industrial partnership with Mediaset ■ The terms*: exchange 3.5% of Vivendi’s share capital for 3.5% of Mediaset’s share capital and 100% of Mediaset Premium’s share capital ■ A partnership with a two-fold goal: Produce and distribute
Slide 20: Stepping up our presence in cultural content distribution
Stepping up our presence in cultural content distribution ■ A plan to team up with Fnac*, a trendsetting distributor of cultural and leisure goods ■ A partnership to create long-term value: Promote Vivendi’s cultural content via distribution partnerships Deepen cooperation around live entertainm
Slide 21: Consolidated Financial Statements
Consolidated Financial Statements
Slide 22: 2015 key results
2015 key results % change % underlying change* year-on-year year-on-year * At constant perimeter and constant currency 22 ** non GAAP measures
Slide 23: Universal Music Group
Universal Music Group Constant perimeter In euro millions - IFRS 2014 2015 Change and constant HIGHLIGHTS currency * Revenues 4,557 5,108 + 12.1% + 2.7% ■ Revenues up 2.7%* driven by growth in all segments. Recorded music 3,688 4,113 + 11.5% + 2.4% Music Publishing 673 756 + 12.4% + 3.0% ■ Recorded
Slide 24: Universal Music Group
Universal Music Group UMG resumes growth and EBITA increase Change in revenue* EBITA (in euro millions) +2,7% -0,6% -3,3% -3,8% 593 526 565 511 2012 2013 2014 2015 2012 2013 2014 2015 * At constant perimeter and constant currency 24
Slide 25: Outlook
Outlook UNIVERSAL MUSIC GROUP ■ We continue to see positive momentum in the business, driven by ongoing growth in streaming and subscription and tempered by continued declines in download and physical, leading to a reasonable increase in results this year – and enhanced results from 2017 and onwards
Slide 26: Canal+ Group
Canal+ Group Constant perimeter In euro millions - IFRS 2014 2015 Change and constant HIGHLIGHTS currency * Revenues 5,456 5,513 + 1.1% + 0.2% ■ Revenues up 0.2%*: Pay-TV Mainland France 3,454 3,383 - 2.1% - 2.1% ■ Pay-TV revenues decreased in mainland France due to a decline in the committed Pay-TV
Slide 27: Canal+ Group: get Canal+ channels in mainland France back on track
Canal+ Group: get Canal+ channels in mainland France back on track ■ Fiercer competition from national and international newcomers ■ Inflated costs for sports rights ■ An eroding subscriber base in France Canal+ Group Canal+ channels** in France Subscriptions* in Mainland France EBITA (in euro milli
Slide 28: Outlook
Outlook CANAL+ GROUP ■ To stop the losses at the Canal+ channels* in France which could lead to a significant decline in the operating results in 2016, we will implement a transformation plan with the objective, for the Canal+ channels* in France, of reaching breakeven in 2018 and of achieving a lev
Slide 29: Other businesses and Corporate
Other businesses and Corporate VIVENDI VILLAGE Constant In euro millions - IFRS 2014 2015 Change perimeter HIGHLIGHTS and constant currency * Revenues 96 100 + 3.5% - 9.6% Vivendi Village Income from operations (34) 10 na na ■ Improvement in Income from operations and EBITA largely as a result of th
Slide 30: Adjusted profit and loss
Adjusted profit and loss Constant perimeter In euro millions 2014 2015 % and constant currency Revenues 10,089 10,762 + 6.7% + 1.4% Income from operations 1,108 1,061 - 4.3% - 5.9% EBITA 999 942 - 5.7% - 7.4% Income from equity affiliates (18) (10) Income from investments 3 52 Interest (96) (30) Pro
Slide 31: Consolidated profit and loss (IFRS)
Consolidated profit and loss (IFRS) In euro millions 2014 2015 % Revenues 10,089 10,762 + 6.7% Cost of revenues (6,121) (6,555) Selling, general and administrative expenses excluding amortization (2,865) (3,163) of intangible assets acquired through business combinations Restructuring charges (104)
Slide 32: Consolidated balance sheet
Consolidated balance sheet In euro millions December 31, December 31, Assets March 31, 2016 Equity and Liabilities March 31, 2016 2015 2015 Goodwill 10,177 10,004 Consolidated equity * 21,086 19,954 Intangible and tangible assets 4,335 4,075 Provisions 3,042 2,016 Financial investments 7,543 5,894 W
Slide 33: Cash flow from operations (CFFO)
Cash flow from operations (CFFO) In euro millions CFFO before capex, net CFFO 2014 2015 Change In euro millions 2014 2015 Change 471 620 + 31.5% Universal Music Group 425 567 + 33.3% 721 653 - 9.4% Canal+ Group 531 472 - 11.1% (37) (3) + 92.8% Vivendi Village (44) (10) + 78.6% - (18) + 0.0% New Init
Slide 34: Net cash at year-end 2015
Net cash at year-end 2015 In euro billions Cash Disposals and collateralization decrease of of Liberty Disposals and Acquisitions Net debt CFFO before Interest & taxes financial assets Distribution to Media letter Net Cash CFFO before Interest & taxes decrease of and Distribution to Net Cash Dec. 31
Slide 35: Net cash at March-end 2016
Net cash at March-end 2016 In euro billions Disposals and decrease of Acquisitions Net Cash Dividend paid Net Cash Interest, taxes financial and Share Distribution to March 31, on April 28, 2017 return to Net cash, Dec. 31, 2015 CFFO paid and other assets investments buyback shareholders 2016 2016 s
Slide 36: Net Cash Position as of March 31, 2016 and Bond debt maturity profile
Net Cash Position as of March 31, 2016 and Bond debt maturity profile Cash 244 In euro millions Term deposits, interest-bearing current accounts, and MTN 2 326 Money market funds 3 802 Cash and cash equivalents 6 372 Term deposits, interest-bearing current accounts, and MTN 208 Bond funds 172 Cash m
Slide 37: Prudent financial policy with a focus on liquidity
Prudent financial policy with a focus on liquidity Rationale for a potential bond issue ■ General business purpose ■ Incl. opportunistic refinancing of the two bonds maturing in Dec 2016 (500 M€) and in March 2017 (750 M€) due to optimal market conditions ■ Increase the average maturity of gross deb
Slide 38: Return to shareholders
Return to shareholders Since 2014, Vivendi has paid dividends in the aggregate amount of €6.6 billion… 1 euro per share in 2014 2 euros per share in 2015* 1 euro per share in February 2016** 1 euro per share on April 28, 2016 … and to return an additional €1.3 billion in 2017. Afterwar
Slide 39: Glossary
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 and Vivendi considers this to be relevant indicators of the group’s operating and financial performance. Moreover, it should be no