Vivendi Se · EURONEXT:VIV
Vivendi — H1 2023 Earnings Presentation
45 slides from Vivendi's earnings presentation, Jul 27, 2023
Slide 1: H1 2023 Results
JULY 27, 2023 H1 2023 RESULTS IMPORTANT NOTICE: Utiliserresults Financial la bibliothèque UpSlide for the half pour insérer year ended June 30,une notice 2023 Unaudited and prepared in compliance with IFRS Investors are strongly advised to read the important disclaimers at the end of this presentati
Slide 2: Summary
SUMMARY 01 H1 2023 Key Highlights 3 02 H1 2023 Financial Performance 12 03 H1 2023 Business unit performance 21 04 Return to shareholders 32 05 Conclusion 34 06 Appendices 37
Slide 3: H1 2023 Key Highlights
Chairman of the Management Board Chief Executive Officer 01 Arnaud de Puyfontaine H1 2023 Key Highlights Arnaud de Puyfontaine Chairman of the Management Board Chief Executive Officer
Slide 4: Quality of our operational results
1. H1 2023 Key Highlights REVENUES GROUP EBITA QUALITY OF OUR OPERATIONAL RESULTS +3.7% Compared to H1 2022 +7.7% Compared to H1 2022 H1 2023 Results - July 27, 2023 4
Slide 5: Value creation over the long term
1. H1 2023 Key Highlights VALUE CREATION OVER THE LONG TERM JUNE 24, 2014 – JULY 25, 2023| DIVIDENDS REINVESTED* Vivendi + 122.6% CAC 40 + 116.4% 24/6/14 24/12/14 24/6/15 24/12/15 24/6/16 24/12/16 24/6/17 24/12/17 24/6/18 24/12/18 24/6/19 24/12/19 24/6/20 24/12/20 24/6/21 24/12/21 24/6/22 24/12/22 2
Slide 6: International expansion
1. H1 2023 Key Highlights 26% STAKE 12% STAKE INTERNATIONAL EXPANSION 32.6% STAKE H1 2023 Results - July 27, 2023 6
Slide 7: 4 new agencies in 2023
1. H1 2023 Key Highlights 4 NEW AGENCIES IN 2023 H1 2023 Results - July 27, 2023 7
Slide 8: A strong policy of acquisitions and launches
1. H1 2023 Key Highlights A STRONG POLICY OF ACQUISITIONS AND LAUNCHES H1 2023 Results - July 27, 2023 8
Slide 9: A strategic shift towards PC/console games
1. H1 2023 Key Highlights A STRATEGIC SHIFT TOWARDS PC/ CONSOLE GAMES 37% OF TOTAL H1 REVENUES H1 2023 Results - July 27, 2023 9
Slide 10: Final phase of the process
1. H1 2023 Key Highlights FINAL PHASE OF THE PROCESS ▪ APPROVAL FROM THE EUROPEAN COMMISSION* ▪ AGREEMENT WITH IMI FOR THE SALE OF EDITIS ▪ PUT OPTION AGREEMENT WITH THE FIGARO GROUP FOR THE SALE OF GALA *Contingent upon the completion of the proposed commitments. H1 2023 Results - July 27, 2023 10
Slide 11: A major step forward in our strategic project
1. H1 2023 Key Highlights A MAJOR STEP FORWARD IN OUR STRATEGIC PROJECT H1 2023 Results - July 27, 2023 10
Slide 12: H1 2023 Financial Performance
Member of the Management Board Chief Financial Officer 02 François Laroze H1 2023 Financial Performance François Laroze Member of the Management Board Chief Financial Officer
Slide 13: Solid H1 2023 results
2. H1 2023 Financial Performance SOLID H1 2023 RESULTS (%) H1 2023 H1 2022 Revenues € 4.7 Bn € 4.5 Bn + 3.7% EBITA of controlled businesses € 379 M € 366 M +3.5% EBITA for the Group* € 444 M € 412 M +7.7% Net earnings, Group share € 174 M € 491 M -64.6% Adjusted net income € 324 M € 58 M x5.6 * In
Slide 14: Robust financial situation
2. H1 2023 Financial Performance ROBUST FINANCIAL SITUATION As of June 30, 2023 Shareowners’ Net debt equity -€ 1,497 M € 17.5 Bn Cash Flow from Operations Available credit (CFFO) facilities € 228 M € 2.8 Bn H1 2023 Results - July 27, 2023 14
Slide 15: H1 2023 revenues
2. H1 2023 Financial Performance H1 2023 REVENUES Revenue by business unit Growth disaggregation organic (%) H1 2023 H1 2022 (%) in euro millions (%) organic +3.2% Canal+ Group 2,959 2,873 +3.0% +2.3% Scope impact +0.7pt Havas 1,318 1,257 +4.9% +4.2% Currency impact -0.2pt Prisma Media 153 1
Slide 16: Q2 2023 revenues
2. H1 2023 Financial Performance Q2 2023 REVENUES Acceleration driven by Canal+ and Havas Quarterly organic growth by business unit Growth disaggregation Q2 2023 Q1 2023 Q2 2023 Q1 2023 in euro millions organic +4.3% +2.0% Scope impact +0.3pt +1.1pts Canal+ Group +3.5% +1.2% Currency impact -0.4pt
Slide 17: EBITA by business unit
2. H1 2023 Financial Performance EBITA BY BUSINESS UNIT H1 2023 H1 2022 (%) in euro millions Canal+ Group 337 337 0% Havas 118 112 +5.9% Prisma Media 17 21 -18.2% Gameloft (12) (16) - Ticketing & Live (Vivendi Village) 7 (3) - New Initiatives (22) (22) - Generosity and solidarity (5) (7) - Corpora
Slide 18: UMG and Lagardère contributions to EBITA and dividends
2. H1 2023 Financial Performance UMG AND LAGARDÈRE CONTRIBUTIONS TO EBITA AND DIVIDENDS in euro millions, except where noted H1 2023 H1 2022 H1 2023 H1 2022 As published by the companies: Revenues 5,148 4,734 3,701 3,027 Adjusted EBITDA (UMG) 1,112 962 na na EBITDA (UMG) / Recurring EBIT (Lagardère)
Slide 19: Net debt evolution
2. H1 2023 Financial Performance NET DEBT EVOLUTION (In €Bn) (0.9) (1.5) +0.2 -0.3 -0.4 Of which Canal+ : € 0.3 Bn -0.1 Net debt CFFO* Dividend Financial Interest, taxes Net debt as of paid to investments and other as of Dec. 31, 2022 shareholders June 30, 2023 * H1 2023 CFFO amounted to €228 M, a €
Slide 20: Net debt situation
2. H1 2023 Financial Performance NET DEBT SITUATION Analysis of net debt and interest cost Bond maturity (in €M) June 30, 2023 Dec. 31, 2022 in euro millions Gross cash position 1,901 2,534 Bonds (3,350) (3,350) 850 Other (48) (44) 600 700 700 500 Net cash/(debt) position (1,497) (860) Nov 2023 Sept
Slide 21: H1 2023 Business unit performance
03 H1 2023 Business unit performance
Slide 22: Canal+ Group: H1 2023 key figures
3. H1 2023 Business unit performance H1 2023 key figures H1 2023 H1 2022 * (%) in euro millions Revenues 2,959 2,873 +3.0% TV international 1,179 1,155 +2.2% TV mainland France 1,583 1,557 +1.7% Studiocanal 197 161 +21.7% EBITA 337 337 0% EBITA margin 11.4% 11.7% * Includes intersegment reclassifi
Slide 23: International footprint on 3 continents
3. H1 2023 Business unit performance International footprint on 3 continents 25.0 M Europe Africa subscribers* Of which 18.3 M 16.1 M 7.1 M self-distributed France APAC 9.8 M 1.0 M Other territories** * vs 23.9 M subscribers at end-June 2022 0.8 M ** French overseas territories, Comoros, Haiti, Maur
Slide 24: Continued international development
3. H1 2023 Business unit performance Continued international development Viu partnership in Asia • USD200 M initial investment for a 26% stake • Additional investment of USD100 M* • Option to increase its stake to 51% StudioCanal strengthens its international footprint • UK: Birdie Pictures (March),
Slide 25: Havas: H1 2023 key figures
3. H1 2023 Business unit performance H1 2023 key figures Acceleration in Q2 2023 of net revenues’ organic growth organic H1 2023 H1 2022 (%) (%) +11.4% +11.5% in euro millions Revenues 1,318 1,257 +4.9% +4.2% Net revenues 1,265 1,206 +4.9% +4.2% +6.3% Europe 593 585 +1.4% +2.5% +3.9% North Ameri
Slide 26: Q2 2023 organic performance by geographical area
3. H1 2023 Business unit performance Q2 2023 organic performance by geographical area +5.5% North +3.4% America Europe +7.6% Asia Pacific and Africa +30.4% +6.3% Latam H1 2023 Results - July 27, 2023 26
Slide 27: A dynamic first half with new identity and M&A
3. H1 2023 Business unit performance A dynamic first half of the year with the launch of a new identity, continued M&A activity and a number of awards. 4 new agencies and a minority stake acquired since early 2023 New brand identity Social Communication Performance marketing Mannheim (Germany) Vanco
Slide 28: Prisma Media: makeover and new formats
3. H1 2023 Business unit performance Makeover and new formats in euro millions H1 2023 H1 2022 Revenues 153 164 Dynamic M&A Distribution 90 93 Advertising and BtoB 63 71 strategy EBITA 17 21 April June June • H1 2022 revenues included a non- recurring item Numerous launches to enrich the editorial o
Slide 29: Gameloft
3. H1 2023 Business unit performance in euro millions H1 2023 H1 2022 Revenues 139 120 EBITA (12) (16) • Solid revenue organic growth of +15.5%, thanks to the successful strategic shift towards PC-Console games • EBITA improving by €4 M H1 2023 Results - July 27, 2023 29
Slide 30: Ticketing & Live / New Initiatives
3. H1 2023 Business unit performance TICKETING & LIVE / NEW INITIATIVES Ticketing & Live New Initiatives in euro millions H1 2023 H1 2022 in euro millions H1 2023 H1 2022 Revenues 81 76 Revenues 66 54 EBITA 7 (3) EBITA (22) (22) • Revenue up 10.2% organically, driven • Revenue up 23%, driven by GVA'
Slide 31: Portfolio of financial assets as of June 30, 2023
3. H1 2023 Business unit performance PORTFOLIO OF FINANCIAL ASSETS AS OF JUNE 30, 2023* Dividends received Total Value* in H1 2023 ~ € 8.4 Bn €193 M 9.98% 57.85% 17.04% 32.60% ** *** 19.76% 19.79% 26,15% 11.79% 1.03% * * Ownership % and market value as of June 30, 2023 (does not include Viu, an unli
Slide 32: Return to shareholders
04 Return to shareholders vivendi
Slide 33: Return to shareholders and share capital
4. Return to shareholders RETURN TO SHAREHOLDERS AND SHARE CAPITAL Cumulative return to shareholders since 2014 (in €Bn)* Share capital 17.6 18.2 18.5 • 78.644 million treasury shares cancelled in 2023 (7.27% of 16.2 the share capital) 13.4 • As of July 27, 2023: 8.8 9.5 10.1 - 5.260 million treasur
Slide 34: Conclusion
05 Conclusion vivendi
Slide 35: Conclusion
5. Conclusion CONCLUSION • Strong growth in operating activities in Q2 • Sound financial situation • Completion of the combination with Lagardère expected by October 2023 • Q3 2023 revenues to be released on October 19, 2023 H1 2023 Results - July 27, 2023 35
Slide 36: HY 2023 Results
HY 2023 RESULTS
Slide 37: Appendices
06 Appendices vivendi
Slide 38: Q2 revenues and EBITDA by business unit
6. Appendices Q2 REVENUES AND EBITDA BY BUSINESS UNIT Q2 revenues EBITDA organic Q2 2023 Q2 2022 (%) H1 2023 H1 2022 in euro millions (%) in euro millions Canal+ Group 1,481 1,427 +3.7% +3.5% Canal+ Group 488 474 Havas 707 666 +6.1% +6.9% Havas 173 177 Prisma Media 80 91 -12.6% -12.6% Prisma Med
Slide 39: P&L: IFRS and adjusted
6. Appendices P&L IFRS P&L Adjusted P&L H1 2023 H1 2022 H1 2023 H1 2022 in euro millions in euro millions Revenues 4,698 4,529 Revenues 4,698 4,529 EBIT 404 373 Income from non-op. equity affiliates (60) (235) EBITA 444 412 Interest 15 (14) Income from non-oper. equity affiliates (51) (205) Income f
Slide 40: Canal+ Group subscriber base
6. Appendices Subscriber base in thousands June 30, 2023 June 30, 2022 Δ Mainland France 9,790 9,589 +201 Europe (excluding Mainland France) 6,314 5,809 +505 Africa 7,080 6,561 +519 APAC 1,036 1,141 -105 Other territories* 765 803 -38 Total Canal+ Group 24,985 23,903 +1,082 of which self-distributio
Slide 41: Distribution of net income H1 2023
6. Appendices Distribution of net income H1 2023 By geographical area By sector Travel & Entertainment Retail 6% Latin America 5% Automotive 6% 5% Asia Pacific and Africa Healthcare & Industries & Wellness 9% Services 32% 6% Food & Drinks Europe 8% 47% TMT North America 8% Finance 38% 12% Consumer G
Slide 42: Key gains in H1 2023
6. Appendices Key gains in H1 2023 H1 2023 Results - July 27, 2023 42
Slide 43: Reconciliations
6. Appendices RECONCILIATIONS EBIT – EBITA - EBITDA Earnings attributable to Vivendi shareowners to ANI in euro millions H1 2023 H1 2022 in euro millions H1 2023 H1 2022 EBIT 404 373 Earnings attributable to Vivendi shareowners 174 491 Amortization and depreciation of intangible assets acquired thro
Slide 44: Important legal disclaimer
6. Appendices IMPORTANT LEGAL DISCLAIMER 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 including the impact of certain transaction
Slide 45: Glossary
6. Appendices 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. Vivendi considers these to be relevant indicators of the group’s operating and financial performance. Moreover, it