Vivendi Se · EURONEXT:VIV
Vivendi — H1 2017 Earnings Presentation
38 slides from Vivendi's earnings presentation, Aug 31, 2017
Slide 1: First Half 2017 Results
Aug. 31, 2017 FIRST HALF 2017 RESULTS IMPORTANT NOTICE Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentation
Slide 2: Strategic Update
ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer STRATEGIC UPDATE
Slide 3: Key Achievements
H1 2017 Results – August 31, 2017 KEY ACHIEVEMENTS Strong financial performances ■ UMG: transition well on track fueled by the strong take-off of streaming and subscription ■ Canal+: transformation plan in France delivering tangible results Completion of the acquisition of 59.2% stake in Havas ■ Cre
Slide 4: UMG: Music Market in Transition
H1 2017 Results – August 31, 2017 UMG: MUSIC MARKET IN TRANSITION • Many major markets have returned to growth • Developing countries opening up opportunities CHINA (+20.3%*) • 12th largest market. x2 between 2014 and 2016 RUSSIA • Copyright protection enforcement +13.5%* • UMG signed an exclusive a
Slide 5: UMG Leading the Transition
H1 2017 Results – August 31, 2017 UMG LEADING THE TRANSITION UMG revenues are growing fast, driven by streaming and subscription revenues which have doubled since the end of 2015 For the 12-month period ending… * Through UMG and Vivendi Village, Vivendi is also investing in: • 17 festivals aroun
Slide 6: Canal+: Transformation Plan Focused on Value Creation
H1 2017 Results – August 31, 2017 CANAL+: TRANSFORMATION PLAN FOCUSED ON VALUE CREATION RETAIL OFFERS: focus on value ARPU evolution* Recruitments: (12-month period, in €) • 2/3 of new subscribers purchase at least one option package • ARPU for new subscribers on the new offers is higher than with
Slide 7: Havas: Integration Since July 3rd
H1 2017 Results – August 31, 2017 HAVAS: INTEGRATION SINCE JULY 3RD* Increasing convergence between content, distribution and communication * acquisition of a 59.2% interest 7
Slide 8: Vivendi / Havas: An Integrated Group with a Unique Value Proposition
H1 2017 Results – August 31, 2017 VIVENDI / HAVAS: AN INTEGRATED GROUP WITH A UNIQUE VALUE PROPOSITION Havas, catalyst for value creation • Better monetization of Vivendi’s assets through new revenue streams, new uses and distinct experiences centered around content, distribution platforms, as well
Slide 9: Telecom Italia
H1 2017 Results – August 31, 2017 TELECOM ITALIA Governance Appointment of Arnaud de Puyfontaine as Executive Chairman of the Board on June 1st Appointment of Amos Genish as General Manager for Operations (Direttore Operativo) on July 28th Strong Q2 2017 operating results In Italy • Fixed mark
Slide 10: Outlook
H1 2017 Results – August 31, 2017 OUTLOOK FULL-YEAR 2017 OUTLOOK CONFIRMED ■ Revenues should increase by more than 5%*. Thanks to the measures taken in 2016, EBITA should increase by around 25%*, with Canal+ Group EBITA expected to reach approximately €350m vs €240m in FY 2016. * excluding Havas. 10
Slide 11: Financials
HERVE PHILIPPE Member of the Management Board Chief Financial Officer FINANCIALS
Slide 12: Scope of Consolidation and Main Currencies
H1 2017 Results – August 31, 2017 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES Constant perimeter reflects the impacts of Thema America, Gameloft and Paddington. As a reminder, Thema America, Gameloft and Paddington have been consolidated since April 7, 2016, June 29, 2016 and June 30, 2016, respectiv
Slide 13: Key Financial Metrics
H1 2017 Results – August 31, 2017 H1 2017 KEY FINANCIAL METRICS % underlying H1 2017 % Change YoY change* YoY Revenues € 5,437 m + 7.8 % + 4.8 % EBITA € 352 m - 9.2 % - 11.0 % EBIT € 362 m - 31.5 % Adjusted Net Income € 320 m + 12.0 % Net Cash Position € 500 m vs. € 1,068 m at end-2016 * At constant
Slide 14: Q1 and Q2 Key Financial Metrics
H1 2017 Results – August 31, 2017 Q1 AND Q2 KEY FINANCIAL METRICS % % % Change % Change Q1 2017 underlying Q2 2017 underlying YoY YoY change* YoY change* YoY Revenues € 2,663 m + 6.9 % + 3.4 % € 2,774 m + 8.7 % + 6.2 % UMG € 1,284 m + 14.8 % + 12.7 % € 1,382 m + 15.5 % + 15.2 % Canal+ Group € 1,278
Slide 15: Universal Music Group
H1 2017 Results – August 31, 2017 UNIVERSAL MUSIC GROUP Constant HIGHLIGHTS In euro millions - IFRS H1 2016 H1 2017 Change perimeter and currency * ■ Outstanding performance in H1 2017 with 14.0%* growth in revenues. Revenues 2,315 2,666 + 15.2% + 14.0% ■ Recorded music revenues were up 15.6%*, driv
Slide 16: Canal+ Group
H1 2017 Results – August 31, 2017 CANAL+ GROUP Constant HIGHLIGHTS In euro millions - IFRS H1 2016 H1 2017 Change perimeter and currency * Revenues (in euro millions) EBITA (in euro millions) -3.5%* -1.3%* -67.5%* Revenues 2,639 2,568 - 2.7% - 2.4% -5.5%* Pay-TV Mainland France 1,627 1,542 - 5.3% -
Slide 17: Gameloft
H1 2017 Results – August 31, 2017 GAMELOFT Constant HIGHLIGHTS In euro millions - IFRS H1 2016 H1 2017 Change perimeter and currency * ■ Gameloft consolidated since June 29, 2016. H1 2016 financial information provided only for comparison Revenues 125 130 + 4% + 3% purposes. o/w Advertising revenues
Slide 18: Ticketing - Live - Dailymotion - Studio+
H1 2017 Results – August 31, 2017 TICKETING - LIVE - DAILYMOTION - STUDIO+… ■ Vivendi Village and New initiatives are investing in new projects for the benefit of the entire Group. VIVENDI VILLAGE NEW INITIATIVES Constant Constant In euro millions - IFRS H1 2016 H1 2017 Change perimeter and In euro
Slide 19: Corporate
In Revenues euro millions - IFRS H1 2016 58 H1 2017 23 Change - 60.3% perimeter and - 38.6% H1 2017 Results – August 31, 2017 currency * Income from operations (17) (38) - 121.5% - 121.5% Revenues EBITA 58 (24) 23 (38) -+60.3% 0.0% -+38.6% 0.0% Income from operations CORPORATE EBITA (17) (24) (38) (
Slide 20: Consolidated P&L
H1 2017 Results – August 31, 2017 CONSOLIDATED P&L In euro millions - IFRS H1 2016 H1 2017 % Revenues 5,044 5,437 + 7.8% Income from operations 440 401 - 9.0% EBITA 387 352 - 9.2% Amortization and depreciation on intangible assets acquired through business (110) (65) combinations Reversals of reserv
Slide 21: Consolidated Balance Sheet
H1 2017 Results – August 31, 2017 CONSOLIDATED BALANCE SHEET In euro millions December 31, December 31, Assets June 30, 2017 Equity and Liabilities June 30, 2017 2016 2016 Goodwill 10,987 10,469 Consolidated equity * 19,612 18,856 Intangible and tangible assets 4,204 3,955 Provisions 2,141 2,216 Fin
Slide 22: Cash Flow from Operations (CFFO)
H1 2017 Results – August 31, 2017 CASH FLOW FROM OPERATIONS (CFFO) CFFO before capex, net CFFO H1 2016 H1 2017 Change In euro millions H1 2016 H1 2017 Change 116 83 - 28.6% Universal Music Group 93 58 - 37.4% 381 142 - 62.6% Canal+ Group 303 69 - 77.2% - 13 na Gameloft - 10 na 2 (14) + 0.0% Vivendi
Slide 23: H1 2017 Net Cash Evolution
H1 2017 Results – August 31, 2017 H1 2017 NET CASH EVOLUTION In euro billions 23
Slide 24: Appendices
H1 2017 Results – August 31, 2017 APPENDICES Details of Business Operations: slides 25-28 Detailed Vivendi Financial Results: slides 30-35 Glossary and Disclaimers: slides 37-38 24
Slide 25: Universal Music Group
H1 2017 Results – August 31, 2017 UNIVERSAL MUSIC GROUP Constant Recorded Music Revenues H1 2016 H1 2017 perimeter and In euro millions - IFRS H1 2017 North America 802 1,023 constant Europe 659 674 currency * Asia 229 278 Recorded music 2,141 + 15.6% Latin America 62 75 Physical sales 484 - 1.8% Re
Slide 26: Canal+ Group
H1 2017 Results – August 31, 2017 CANAL+ GROUP In '000 June 30, 2016 June 30, 2017 Change Constant Individual subscribers 11,182 14,020 + 2,838 Revenues perimeter H1 2016 H1 2017 Mainland France 5,455 7,984 + 2,529 In euro millions - IFRS and Retail subscribers 5,455 4,989 - 466 currency * Wholesale
Slide 27: Gameloft
H1 2017 Results – August 31, 2017 GAMELOFT Revenue by geographies H1 2016 H1 2017 UPCOMING RELEASES* EMEA 34% 33% Asia Pacific 31% 28% Modern Combat Versus© North America 22% 27% Genre: First person shooter Latin America 13% 12% Release: Q3 2017 Average active users on War Planet Online H1 2016 H1 2
Slide 28: Vivendi: H1 2017 Results - Pro-forma
H1 2017 Results – August 31, 2017 VIVENDI: H1 2017 RESULTS - PRO-FORMA Elimination of Havas Vivendi Adjustments intersegment Vivendi Published In euro millions - IFRS Published (b) transactions Pro forma Restated (a) (c) Revenues 5,437 1,108 - (29) 6,516 Income from operations 401 108 - - 509 EBITA
Slide 29: Detailed Financial Results
H1 2017 Results – August 31, 2017 DETAILED FINANCIAL RESULTS 29
Slide 30: Revenues / EBITDA / EBITA
H1 2017 Results – August 31, 2017 REVENUES / EBITDA / EBITA Constant Constant Constant Revenues Constant Q2 2016 Q2 2017 Change perimeter and H1 2016 H1 2017 Change perimeter and currency In euro millions - IFRS currency currency * currency * 1,196 1,382 + 15.5% + 15.2% + 15.2% Universal Music Group
Slide 31: Revenues / Income from Operations / EBITA
H1 2017 Results – August 31, 2017 REVENUES / INCOME FROM OPERATIONS / EBITA Constant Constant Constant Revenues Constant Q2 2016 Q2 2017 Change perimeter and H1 2016 H1 2017 Change perimeter and currency In euro millions - IFRS currency currency * currency * 1,196 1,382 + 15.5% + 15.2% + 15.2% Unive
Slide 32: Telecom Italia
H1 2017 Results – August 31, 2017 TELECOM ITALIA Telecom Italia’s financial information In euro millions Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Revenues 4,841 5,086 4,440 4,819 4,656 4,953 Organic change yoy +0.6% +2.6% +3.7% EBITDA 1,384 2,124 1,712 1,990 2,014 2,124 Organic change yoy +5.
Slide 33: Interest & Income Tax
H1 2017 Results – August 31, 2017 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS H1 2016 H1 2017 Interest (17) (25) Interest expense on borrowings (28) (35) Average interest rate on borrowings (%) 2.32% 1.92% Average outstanding borrowings (in euro billions) 2.5 3.6 Interest inco
Slide 34: Reconciliation of Earnings Attributable to Vivendi SA Shareowners to ANI
H1 2017 Results – August 31, 2017 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ANI In euro millions - IFRS H1 2016 H1 2017 Earnings attributable to Vivendi SA shareowners (*) 911 176 Amortization and depreciation of intangible assets acquired through business 110 65 combinati
Slide 35: Reconciliation of EBIT to Income from Operations
H1 2017 Results – August 31, 2017 RECONCILIATION OF EBIT TO INCOME FROM OPERATIONS In euro millions - IFRS H1 2016 H1 2017 EBIT 529 362 Amortization and depreciation on intangible assets acquired through business 110 65 combinations Reversals of reserve related to the Securities Class Action and Lib
Slide 36: Glossary and Disclaimers
H1 2017 Results – August 31, 2017 GLOSSARY AND DISCLAIMERS 36
Slide 37: Glossary
H1 2017 Results – August 31, 2017 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 perf
Slide 38: Important Legal Disclaimer / Contacts
H1 2017 Results – August 31, 2017 IMPORTANT LEGAL DISCLAIMER / CONTACTS 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 of Vivendi,