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Vivendi — Exane BNP Paribas European Seminar 2007
31 slides from Vivendi's conference presentation, Jun 13, 2007
Slide 1: Exane BNP Paribas European Seminar
Exane BNP Paribas European Seminar June 13, 2007 Jean-Bernard Lévy Chairman of the Management Board & Chief Executive Officer
Slide 2: Our assets
Our assets 100% 100% / 65% 56% #1 in pay-TV in # 2 among mobile operators #1 worldwide in music France and Poland # 1 in 3G services in France 40.5% of n9ufcegetel 51% 100% 20% # 1 in fixed-line, mobile World leader in # 1 worldwide in online and internet entertainment in Morocco gaming We innovate
Slide 3: Our strategy
Our strategy To strengthen our position in entertainment: music, television, cinema, mobile, internet and games To capitalize on consumer demand for mobility and broadband To take advantage of the global transition to digital media to launch innovative services To enhance our economic model focusing
Slide 4: Our capital allocation strategy
Our capital allocation strategy To provide the business units with resources superior to what they could have on a stand alone basis, to facilitate: Investments in organic growth Investments in external growth on a selective and rigorous basis Impact on earnings per share Cash generation Return on c
Slide 5: Very good results for the first quarter 2007
Very good results for the first quarter 2007 In euro millions Q1 2007 Growth IFRS standards - unaudited Revenues 5.020 +5.3% EBITA 1.274 +21.7% Adjusted net income (ANI) 771 +22.8% Such high profit growth not to be expected over remainder of 2007 5
Slide 6: First quarter 2007 and recent main events
First quarter 2007 and recent main events Successful launch of World of Warcraft: The Burning Crusade, Blizzard Entertainment’s first expansion pack Canal+ / TPS merger finalized on January 4, 2007 TPS is included in the results of Canal+ Group Launch of the new CanalSat offer Acquisition by Maroc T
Slide 7: Acquisition of BMG Music Publishing
Acquisition of BMG Music Publishing A Unique Opportunity: BMG Music Publishing strengthens UMG’s collection of music assets and enables UMG to derive a larger share of its revenue from music publishing’s stable and diverse revenue streams. UMG + BMG MP UMG Today Publishing ~ 14% Publishing BMG MP 8%
Slide 8: Canal+ Group: Overview
Canal+ Group: Overview 100% 65% 5.1% 9.9% 20% 65% 100% Pay TV in France (CANAL+ France) Other activities 49% Multi-thématiques 75% 8
Slide 9: Content: Two complementary offers covering expectations of all audiences
Content: Two complementary offers covering expectations of all 1. CONTENT: TWO COMPLEMENTARY OFFERS audiences COVERING EXPECTATIONS OF ALL AUDIENCES “Expect more from TV” “The experts of all your passions” 5 general-interest premium channels 300 channels covering all themes with a pick-of-the-be
Slide 10: Distribution: Market trend by platform
Distribution: Market trend by platform 2. DISTRIBUTION: MARKET TREND BY PLATFORM satellite Satellite, the leading platform, is boosted by the merger DTT is an attractive substitute DTT for analogue services Cable Further growth in DSL against a DSL backdrop of fierce competition with cable TV
Slide 11: Margin improvement of Pay TV in France
Margin improvement of Pay TV in France MARGIN IMPROVEMENT OF PAY TV IN FRANCE 2006-2010 CANAL+ France + 1.3m Portfolio Growth in ARPU > 5% Revenue revenue > €5 billion StudioCanal, > €230m Cyfra+, I>télé in growth 2010 EBITA > €1 billion Distribution €50–75m Technology, broadcasting €50–75m Savings
Slide 12: Vivendi confirms its growth prospects
Vivendi confirms its growth prospects 2007 outlook: Adjusted net income, at least €2.7 billion; Dividend: distribution rate of at least 50% 2011 goal of Adjusted net income between 3.5 and 4 billion euros with the commitment of a distribution rate of at least 50% of Adjusted net income 12
Slide 13: Appendices
vivendi Appendices
Slide 14: Our achievements in 2006
Our achievements in 2006 Economic performance higher than the forecasts Tangible progress in all the business units €6 billion invested to drive growth Two structural acquisitions: Canal+/TPS and BMG Music Publishing Name change, new corporate identity and advertising campaign 14
Slide 15: 2006 Results
2006 Results Adjusted net income: €2.6bn, up 17.9% EBITA: €4.4bn, up 9.6% on a comparable basis Cash Flow From Operations: €4.5bn, up 7.4% Dividend: €1.20 per share, up 20% with a distribution rate of 53% of the Adjusted net income per share of €2.27 15
Slide 16: UMG: initiatives for growth
UMG: initiatives for growth New revenue streams Strong digital sales growth: +84% Numerous initiatives, on the Internet and on mobile phones, to multiply the distribution of our artists’ repertoire IMF, agreements with YouTube, Microsoft, Qtrax… Focused on investing in creating our artists’ brands t
Slide 17: Universal Music Group: 2006 Key Metrics
Universal Music Group: 2006 Key Metrics Top-selling artists 2006 Sales License 9% Publishing 7% Million FY 2006 Units* Digital 10% U2 3.7 Other 2% Andrea Bocelli 3.4 Video 9% Catalog 26% Singles 2% Snow Patrol 3.4 Product sales The Pussycat Dolls 3.3 72% Nelly Furtado 3.2 New releases 63% * Physical
Slide 18: Groupe Canal+: initiatives for growth
Groupe Canal +: initiatives for growth Investments in external growth Acquisition of TPS and creation of Canal+ France StudioCanal acquires Optimum Releasing, a U.K. based film distributor Investments in content About €2bn of investments in programs Investment in recruitments 1.15 million gross recr
Slide 19: Canal+ Group: 2006 Key Metrics
Canal + Group: 2006 Key Metrics CANAL+ France net portfolio * (in thousands) ARPU** 2006 3,560 5,236 8,796 2006 €35.7 €29.9 +348 2005 3,288 5,160 8,448 2005 €34.6 €28.9 Higher proportion of digital subscriptions: at the end of December 2006, CANALSAT subscriptions to Canal+ Le Bouquet represented 61
Slide 20: SFR: initiatives for growth
SFR: initiatives for growth Continued growth of the subscriber base: + 685,000 customers Growth of 18% in carried traffic SFR 3G: 65% of the population covered by our 3G+/HSDPA network (higher speed) Development of services and success of applications for Enterprises including the BlackBerry® Develo
Slide 21: SFR: 2006 Key Metrics
SFR: 2006 Key Metrics (As of end-December, Including SRR) FY 2006 FY 2005 Growth Customers (in ‘000) * 17,883 17,198 +4.0% Vodafone live! customers (in ‘000) * 6,497 4,785 +35.8% 3G customers (in ‘000) * 2,686 1,003 +167.8% Market share on customer base (%) * 34.6% 35.8% -1.2pt 12-month rolling blen
Slide 22: Mobile voice revenues per minute in Europe
Mobile voice revenues per minute in Europe Voice revenues per minute on mobile Q4 06 (Euro per minute) Switzerland 0.25 Germany 0.19 Belgium 0.18 Netherlands 0.18 Spain 0.17 Italy 0.17 Greece 0.16 Norway 0.16 Portugal 0.16 UK 0.16 Austria 0.15 Ireland 0.15 Denmark 0.14 France 0.13 Sweden 0.12 Finlan
Slide 23: Maroc Telecom: initiatives for growth
Maroc Telecom: initiatives for growth Increased mobile market share despite competition: +2.5 million mobile clients in 2006 (+30%) Stabilization of the fixed lines activities with an unlimited offer Rapid penetration of DSL: A base of almost 390,000 fixed lines in 2006 (+59%) and launch of a TV-DSL
Slide 24: Maroc Telecom: 2006 Key Metrics
Maroc Telecom: 2006 Key Metrics (Excluding Mauritel) FY 2006 FY 2005 Growth Number of fixed lines (in ‘000) 1,266 1,341 -5.6% Total Internet access (in ‘000) 391 252 +55.2% Including DSL access (in ‘000) 384 242 +58.7% Number of mobile customers (in ‘000) 10,707 8,237 +30.0% Prepaid customers (in ‘0
Slide 25: Vivendi Games: initiatives for growth
Vivendi Games: initiatives for growth Exceptional and lasting success of World of Warcraft: From 5 million paying clients in 2005 to 8 million in 2006 Over 8.5 million in March 2007 Real success with the launch of the expansion pack: The Burning Crusade 2.4 million copies sold in one day 3.5 million
Slide 26: Vivendi Games: 2006 Key Metrics
Vivendi Games: 2006 Key Metrics 2006 Best-selling games Title Platform 1. World of Warcraft Online 2. Scarface PC / Consoles 3. Ice Age 2 PC / Consoles 4. Eragon PC / Consoles More than 8 million 5. The Legend of Spyro Consoles paying customers 6. F.E.A.R PC / Consoles worldwide 7. 50 Cent: Bulletpr
Slide 27: 2007 Business Outlook
2007 Business Outlook Business Units Revenues EBITA UMG Remain stable or slight growth in A slight decline from 2006 which constant currency despite a difficult benefited from several non-recurring market. Strong release schedule and items digital sales growth are expected Above €350m before the tra
Slide 28: NBC Universal TelevisionWeek
NBC Universal ‘06/’07 season prime ratings (thru 1/7) Basic Cable Nets Network average A18-49 rating* (2006 Prime impressions) 3.6 3.6 3.6 #1 A18-49 & A25-54 A25-54 Prime Total day 3.0 upscale (000) VPY% VPY% #1 USA 1,193 9% 8% #7 SCI FI 619 (10)% (12)% Bravo 306 17% 17% A&E 584 11% 15% History 515
Slide 29: Glossary
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 c
Slide 30: Important Legal Disclaimer
Important Legal Disclaimer This presentation contains forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Vivendi. Although Vivendi believes that such forward- looking statements are based on reasonable assumptions, such statemen
Slide 31: Investor Relations Team
Investor Relations Team Daniel Scolan Executive Vice President +33.1.71.71.14.70 daniel.scolan@vivendi.com Paris 42, Avenue de Friedland 75380 Paris cedex 08 / France New York 800 Third Avenue Phone: +33.1.71.71.32.80 New York, NY 10022 / USA Fax: +33.1.71.71.14.16 Phone: +1.212.572.1334 Fax: +1.212