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Vivendi — Investor Presentation (May 2010)
30 slides from Vivendi's investor presentation, May 2010
Slide 1: A world leader in communications and entertainment
A world leader in communications and entertainment Investor Presentation May 2010 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: Vivendi: Group profile
Vi di G Vivendi: Group profile fil A world leader in communications and entertainment, ideally positioned to capture growing demand from consumers for mobility, broadband and digital content ¾ 73 million subscriptions representing 75% of sales in 2009 49,000 employees, best-in-class networks and pre
Slide 3: Growing focus on subscriptions and growth in both communications and entertainment
Growing focus on subscriptions and growth in both communications and entertainment Growingg focus on subscriptions p Sales x1.5 between 2004 and 2009 Sales: €17.9bn Sales: €27.1bn Vivendi Universal Entertainment 16% Universal Music Group 22% 11% Activision Blizzard Universal Music Group 23% 5% 11% 1
Slide 4: Vivendi today
Vivendi today 100% 100% / 80% 56% #1 in pay-TV #1 alternative telecom #1 worldwide in France in France in music 53%* 59%* 99%* #1 in telecom #1 worldwide in #1 alternative telecom in Morocco video games in Brazil * Based on shares outstanding Investor Presentation – May 2010 4
Slide 5: Vivendi is ideally positioned to capture growing demand
Vivendi Vi di is i ideally id ll positioned iti d tot capture t growingi ddemandd from consumers for mobility, broadband and digital content Key Vivendi Strengths Key Market Trends Creativity Di iti ti Digitization Networks, spectrum, licenses Mobility 73 million subscriptions B db d Broadband Leade
Slide 6: Capital allocation priorities
C it l allocation Capital ll ti priorities i iti to t maximize i i shareholder h h ld returns t Continued investments in content and networks to leverage Vivendi’s leading communications and entertainment assets Deliver D li didividends id d tto shareholders h h ld with ith a distribution di t ib ti
Slide 7: Vivendi's 4D plan in line with capital allocation policy
Vi di’ 4D plan Vivendi’s l iin liline with ith capital it l allocation ll ti policy li ¾ SFR, France’s #1 music mobile downloading platform, #2 digital music store after iTunes Development of content ¾ Launch of triple play and exclusive launch of m-banking services by Maroc Telecom / networks to le
Slide 8: Management compensation aligned with shareholders' interests
M Management t compensation ti aligned li d with ith shareholders’ h h ld ’ iinterests t t Incentive for Management based on financial and share price performances ¾ Variable compensation based on financial targets (Adjusted net income, Cash flow from operations, ROCE) andd achievement hi t off stra
Slide 9: Another year of record results in 2009
Another A th year off recordd results lt iin 2009 2009, lleading di tto record dividend distribution of €1.7bn in cash (€1.40 per share) EBITA CFFO +8% p.a. CAGR 5,390 +6% p.a. CAGR 5,055 5,237 4,881 4,953 4,721 4,466 4,370 4,157 3,985 EUR millioons , IFRS EUR millions , IFRS 2005 2006 2007 2008 200
Slide 10: Vivendi enjoys a strong financial position
Vi di enjoys Vivendi j a strong t fifinancial i l position iti €5.7bn of undrawn credit lines at Vivendi SA at end March 2010 No significant debt reimbursement before 2012 Committed to BBB rating*, g and remainingg unchanged g after FY2009 earnings g release including €550m class action provision Co
Slide 11: 1Q 2010 highlights
1Q 2010 hi highlights hli ht Very strong first quarter earnings in line with full year 2010 guidance 14% EBITA increase in challenging economic environment thanks to: ¾ Activision Blizzard: Outstanding growth benefiting from tremendous product success ¾ SFR: Growth in postpaid mobile and broadband c
Slide 12: Outlook for 2010
O tl k ffor 2010 Outlook We have planned 2010 with a reasonably conservative stance, due in part to the continued uncertainties relating to the broader macroeconomic environment and consumer demand, as well as growing regulatory pressure In 2010, we remain committed to building growth for the future
Slide 13: Outlook for 2010
O tl k ffor 2010 Outlook Confirmed Co ed 2010 0 0 guidance: gu da ce SSlight g t increase c ease in EBITA aandd high g ddividend de d maintained a ta ed EBITA above €620m (vs above €600m) Ò Slightly upgraded Double digit EBITA margin 9 Confirmed Mobile: Slight decrease in EBITDA 9 Confirmed Broadban
Slide 14: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #1 Alternative Telecoms France #1 Telecoms Morocco #1 Alternative Telecoms Brazil #1 Pay-TV France Investor Presentation – May 2010 14
Slide 15: Q1 2010 earnings
vivendi Q1 2010 earnings
Slide 16: Very strong Q1 2010 results
V strong Very t Q1 2010 results lt Revenues: € 6,924 m + 6.0 % EBITA: € 1,590 m + 14.1 % Adjusted Net Income: € 736 m + 13.4 % Net Income group share: € 598 m + 21.3 % Net debt*: € 9.5 bn as of March 31, 2010 * As reported, including commitment to purchase the outstanding 13% of GVT not yet owned by
Slide 17: Significant EBITA increase
Si ifi t EBITA increase Significant i In euro millions - IFRS Change at Q1 2010 Q1 2009 Change constant currency Activision Blizzard 377 178 x 2.1 x 2.2 Universal Music Group 68 110 - 38.2% - 37.7% SFR 634 610 + 3.9% + 3.9% Maroc Telecom Group 284 286 - 0.7% + 0.6% GVT 43 - C l+ Group Canal+ G 230 2
Slide 18: Adjusted Net Income
Adj t d N Adjusted Nett IIncome In euro millions - IFRS Q1 2010 Q1 2009 Change % Revenues 6,924 6,530 + 394 + 6.0% Impact of Olympic Games at NBC Universal EBITA 1,590 1,393 + 197 + 14.1% Income from equity affiliates 15 26 - 11 Impact of GVT acquisition Interest (118) (108) - 10 Incl. reduced benef
Slide 19: Financial net debt
In euro billions- IFRS Fi Financial i l nett ddebt bt evolution* l ti * Dividends paid Net financial December 31, CFFO Interest & tax to SFR minority investments March 31, 2009 after Capex Capex* paid and other shareholder and other 2010 (0.2) (0.4) (9.6) + 0.8 (0.1) (9.5) Including: Including: Divi
Slide 20: Activision Blizzard: Revenues €945m
IFRS Revenues: €945m, €945m +33 +33.4% 4% at constant currency In euro millions Constant Q1 2010 Q1 2009 Change Better than expected results due to strong global demand for Call of IFRS currency Duty and World of Warcraft Revenues 945 731 + 29.3% + 33.4% Call of Duty #1 third-party third party franc
Slide 21: Universal Music Group: Revenues €889m
Revenues: €889m, €889m -12 12.6% 6% at constant currency In euro millions - IFRS Constant Q1 2010 Q1 2009 Change Recorded music declined, particularly in Europe and Asia currency ¾ Fewer major releases (U2 in 2009) Revenues 889 1,026 - 13.4% - 12.6% ¾ Reduced demand for physical product EBITA 68 110
Slide 22: SFR: Mobile services revenues
Mobile services revenues: +4.3% excl. regulatory impacts* Continued growth in customer base: #1** in postpaid net adds In euro millions - IFRS in Q1 with 225k new mobile subscribers Q1 2010 Q1 2009 Change Data revenues (+19.5%) representing 26.5% (+4.6pts) of service Revenues 3,085 3,028 + 1.9% Mobi
Slide 23: Maroc Telecom Group: Revenues €660m
Revenues: €660m, €660m +4 +4.4% 4% at constant currency In euro millions - IFRS Constant Continued growth in mobile in Morocco Q1 2010 Q1 2009 Change currency ¾ Increased customer base with significant decrease in prepaid Revenues 660 640 + 3.1% + 4.4% Mobile 491 456 + 7.7% + 9.0% y y pprogram churn
Slide 24: GVT: Net Revenues BRL513m
Net Revenues: BRL513m BRL513m*, +36.5% +36 5% (+70% in EUR) In BRL millions* 301k net adds in lines in services (LIS), +59.9% yoy Q1 2010 Q1 2009 Change Broadband subscribers reached 747k, 45% with speed of Net revenues 513 376 + 36.5% 10 Mbps and higher, higher compared with 9% in Q1 2009 G Gross i
Slide 25: Canal+ Group: Revenues €1,145m
Revenues: €1,145m, €1 145m +2.3% +2 3% In euro millions - IFRS Constant Portfolio growth at Canal+ France: +315k net adds year-on-year Q1 2010 Q1 2009 Change currency ¾ Increase in gross adds and lower churn in Metropolitan France Revenues 1,145 1,119 + 2.3% + 1.7% ¾ Excellent E ll t commercial i l
Slide 26: Outlook for 2010
O tl k ffor 2010 Outlook Confirmed Co ed 2010 0 0 guidance: gu da ce SSlight g t increase c ease in EBITA aandd high g ddividend de d maintained a ta ed EBITA above €620m (vs above €600m) Ò Slightly upgraded Double digit EBITA margin 9 Confirmed Mobile: Slight decrease in EBITDA 9 Confirmed Broadban
Slide 27: Glossary
Gl Glossary Adjusted earnings before interest and income taxes (EBITA): EBIT (defined as the difference between charges and income that do not result from financial activities, equity affiliates, discontinued operations and tax) before the amortization of intangible assets acquired through business
Slide 28: Activision Blizzard stand alone definitions
A ti i i Bli Activision Blizzardd – stand t d alone l - definitions d fi iti US Non-GAAP Financial Measures Activision Blizzard provides net revenues, net income (loss), earnings (loss) per share and operating margin data and guidance both including (in accordance with GAAP) and excluding (non-GAAP)
Slide 29: Investor Relations team
I Investor t Relations R l ti team t Jean-Michel Bonamyy Executive Vice President Investor Relations +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com Paris 42, Avenue de Friedland New York 75380 Paris cedex 08 / France 800 Third Avenue Phone: +33.1.71.71.32.80 New York, NY 10022 / USA Fax: +33.1.71.
Slide 30: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, p business, strategy gy and pplans as well as expectations p regarding g g the ppayment y of dividends. Although Vivendi believes that such forward-l