Vivendi Se · EURONEXT:VIV
Vivendi — Vivendi Universal — Morgan Stanley TMT Conference 2005
18 slides from Vivendi's conference presentation, Nov 18, 2005
Slide 1: Morgan Stanley TMT Conference, Jean-Bernard Levy
IMPORTANT NOTICE: INVESTORS ARE STRONGLY ADVISED TO READ THE IMPORTANT LEGAL DISCLAIMER AT THE END OF THIS PRESENTATION Jean-Bernard LEVY Chief Executive Officer Morgan Stanley TMT Conference November 18, 2005
Slide 2: All VU businesses are profitable and growing
All VU businesses are profitable and growing Strong operating performance in the 9 months 2005: Revenues: up 8% to € 13,960 million; EFO: up 24% to € 2,971 million; Adjusted Net Income: up 73% to € 1,687 million. On a comparable basis Revenues 2005 EFO 2005 EFO 2004 Universal Music Group: €3,211m +3
Slide 3: Vivendi Universal will exceed its 2005 Adjusted Net Income growth target
Vivendi Universal will exceed its 2005 Adjusted Net Income growth target announced at the 2005 AGM In IFRS In millions of euros 2004 2005 Est 1330 1900 2005 2004 €1,330 m > €1,800 m EPS from €1.16 ... .... to above €1.57 DPS of €0.60 ... .... at least 50% payout Vivendi Universal's 2005 Guidance as
Slide 4: VU Operates Leading Media & Telecom Assets
VU Operates Leading Media & Telecom Assets Mobile / Fixed line Pay-TV Music Video Games 92% 99% 20%* 100% 100% 56% 51% * 20% controlling interest and a 18.5% ownership interest Film TV / Film TV / Film Global Content Local Distribution Platforms neufCegetel 28% Mobile / Fixed line
Slide 5: Vivendi Universal is positioned on growing markets in usage
Explosion of usage... Increasing level of music consumption; Explosion of Online video games; Trend in TV consumption habit geared towards multi channel; Constant increase in voice minutes and data traffic on mobile telephony networks. .... despite regulatory pressure on prices... .... and with an e
Slide 6: Focused on investing in quality content
Focused on investing in quality content Universal Music Group: Continuous investment in Artist & Repertoire (A&R) to expand into new genres, identify emerging talent and develop new artists; Develop and acquire music publishing catalogs and publishing rights. Vivendi Universal Games: Investment in B
Slide 7: Broadband penetration creates new opportunities within all our businesses
Broadband penetration creates new opportunities within all our businesses and at their frontier Broadband increases value in content: Music: download services & ringtones thematic channels Online Game: World of Warcraft Pay-TV: DSL & DTT offer Video on Demand: CANALPLAY New services on 3G networks:
Slide 8: Mobility creates new opportunities within all our businesses
Video phone News Music Messages TV Corporate Services Internet Acces Payment Games SFR / CANAL+ Group: Launch of the world's first Pay-TV package over mobile phones SFR / UMG: Strategic agreement for the distribution of music and video content over mobile Mobility creates new opportunities within al
Slide 9: Being part of Vivendi Universal Enhances the Value of Each Business
Being part of Vivendi Universal Enhances the Value of Each Business Our businesses are distinct but benefit from strong complementary characteristics: Quality and exclusivity of content drive growth on digital distribution platforms; Common key skill sets: Subscription management (SAC, churn, ARPU,
Slide 10: The subscription management model: A common expertise across the group
The subscription management model: A common expertise developed across the group 21-year experience in Pay-TV subscription 18-year experience in mobile telephony subscription Subscriber Acquisition Costs (SAC) to optimize market share Customer Relationship Management (CRM) to constantly improve serv
Slide 11: Ability to develop strong brands on multiple platforms: 50 Cent example
Ability to develop strong brands on multiple platforms: 50 Cent example Ringtones 50 Cent named "Ringtone Artist of the Year" Ringtone collections >$1m to date Synchronization Starring in a feature film "Get Rich or Die Tryin' ", 10 songs being utilized in the film. Reebok commercial Various other s
Slide 12: Ability to develop strong brands on multiple platforms: the CANAL+ example
Ability to develop strong brands on multiple platforms: the CANAL+ example At home mobile Programmed content On demand / customized content Subscribers SVOD subscribers Mobility extension DVB-H 3G DVB-H subs. 3G subs. Multi- equipment Subscribers Downloads - VOD Purchasing acts Downloads - VOD PVR C
Slide 13: Vivendi Universal: A Coherent Group
Vivendi Universal: A Coherent Group Creation and development of brands and talent Marketing and distribution networks, customer loyalty, interactive services Management of investment and technological innovation Content Content Platform and subscriber management Networks
Slide 14: A unique management philosophy as a key advantage
A unique management philosophy as a key advantage VU's management board is composed of the heads of VU's businesses: Music, Games, Pay TV, SFR, Maroc Telecom and Group CFO. A strong management team: remarkable track record; focused on operating skills; results-driven; incentivized on clear objective
Slide 15: Growth Drivers for 2006 - 2008 are Already In Place
Growth Drivers for 2006 - 2008 are Already In Place Digital distribution and new sources of music revenues: Digital distribution already accounts for 6% of total UMG sales Exclusive premium content and launch of Pay-DTT: Launch of Pay-DTT in November in France Development of World of Warcraft in new
Slide 16: Vivendi Universal's Key Advantages
Vivendi Universal's Key Advantages Ability to outperform competition in each of VU's markets: N°1 or N°2 in our key markets Leverage strong and efficient partnerships through key alliances: Vodafone, GE, Kingdom of Morocco Financial flexibility with which to build its future No identified systemic r
Slide 17: Vivendi Universal: A Commitment through Time
Vivendi Universal: A Commitment through Time Vivendi Universal offers a unique combination of growth and cash returns with a commitment to deliver quickly: €2bn Adjusted Net Income and €2bn net available cash flow; €1bn dividend payment (50% pay-out); A capacity to make reasonable acquisitions, whil
Slide 18: Important Legal Disclaimer
Important Legal Disclaimer This presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking
Vivendi Universal — Morgan Stanley TMT Conference 2005 on 6ix