Vivendi Se · EURONEXT:VIV
Vivendi — Q1 2013 Earnings Presentation
37 slides from Vivendi's earnings presentation, May 14, 2013
Slide 1: First Quarter 2013 Results
May 14, 2013 PHILIPPE CAPRON Member of the Management Board Chief Financial Officer FIRST QUARTER 2013 RESULTS IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimers at the end of this presentation
Slide 2: Q1 13 Highlights
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 Q1 13 HIGHLIGHTS Worsening economic environment across the board, especially in France Q1 EBITA in line with expectations SFR EBITA down €233m due to proactive customer re-pricing and loyalty initiatives Excluding SFR, EBITA down €46m, includin
Slide 3: Key Financial Metrics as of March 31, 2013
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 KEY FINANCIAL METRICS AS OF MARCH 31, 2013 Revenues: € 7,051 m – 1.0% ► Media revenues € 3,380 m + 9.5 % EBITA: € 1,344 m – 17.2 % ► Media EBITA € 680 m – 2.7 % Adjusted Net Income: € 672 m – 18.5 % Cash Flow From Operations: € 485 m – 30.0 %*
Slide 4: Strategic Update
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 STRATEGIC UPDATE GVT: suspension of the strategic review ►Decision to continue developing GVT to increase shareholder value Maroc Telecom Group: reviewing the 2 binding offers received on April 24 Activision Blizzard: review of options ongoing at
Slide 5: EBITDA
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 EBITDA In euro millions - IFRS Constant Q1 2012 Q1 2013 Change currency Canal+ Group 289 248 - 14.2% - 14.2% Unfavorable timing of content costs for Universal Music Group 101 101 - + 0.7% ~(€30m) Activision Blizzard 429 494 + 15.2% + 16.1% Media 819 84
Slide 6: EBITA
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 EBITA In euro millions - IFRS Q1 2012 Q1 2013 Change Constant currency Unfavorable timing of content costs for Canal+ Group 236 183 - 22.5% - 22.4% ~(€30m) and (€7m) Universal Music Group 68 55 - 19.1% - 18.9% transition costs for nc+ Activision Blizza
Slide 7: Adjusted Net Income
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 ADJUSTED NET INCOME In euro millions - IFRS Q1 2012 Q1 2013 Change % Revenues 7,119 7,051 - 68 - 1.0% * EBITA 1,623 1,344 - 279 - 17.2% Income from equity affiliates (19) (7) + 12 Interest rate on gross debt of 3.35% in Q1 2013 vs. Income from investme
Slide 8: Net Debt Evolution
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 NET DEBT EVOLUTION Net Debt Net Debt December 31, CFFO Interest & tax March 31, 2012 before Capex, net Capex, net paid and other Others 2013 (1.0) (0.2) (0.1) (13.2) (13.4) 1.5 ~€12.5bn after sale Including: Including: of Parlophone*, Interest: €(140
Slide 9: Active Refinancing Thanks to Market Support
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 ACTIVE REFINANCING THANKS TO MARKET SUPPORT In Q1 2013, low interest charge thanks to a €5 billion commercial paper program (backed with credit lines) at ~0.2% cost In March 2013, early refinancing of a €1.5 billion bank credit line maturing May 20
Slide 10: Canal+ Group: Challenging Market Conditions
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 CHALLENGING MARKET CONDITIONS In euro millions - IFRS Q1 2012 Q1 2013 Change Constant currency 2013 GUIDANCE Revenues 1,232 1,286 + 4.4% + 4.3% 2013 EBITA of around €670m EBITA before transition costs 236 190 - 19.5% - 19.4% (excluding restructuring ch
Slide 11: Universal Music Group: Revenue Increase, EMI Integration on Track
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 REVENUE INCREASE, EMI INTEGRATION ON TRACK In euro millions - IFRS Q1 2012 Q1 2013 Change Constant currency 2013 GUIDANCE Revenues 961 1,091 + 13.5% + 15.5% EBITA 68 55 - 19.1% - 18.9% Increase in EBITA with positive o/w restructuring and integration c
Slide 12: Activision Blizzard: Double Digit Earnings Growth; Guidance Upgrade
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 DOUBLE DIGIT EARNINGS GROWTH; GUIDANCE UPGRADE IFRS - Q1 2012 Q1 2013 Change Constant In euro millions currency UPGRADED 2013 GUIDANCE Revenues 894 1,003 + 12.2% + 13.0% EBITA around $1.15 billion Activision 649 717 + 10.5% + 11.3% Blizzard 196 248 + 2
Slide 13: SFR: Q1 2013 Financials in Line with Expectations
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 Q1 2013 FINANCIALS IN LINE WITH OUR EXPECTATIONS In euro millions - IFRS Q1 2012 Q1 2013 Change 2013 GUIDANCE Revenues 2,927 2,594 - 11.4% Mobile 1,988 1,642 - 17.4% EBITDA close to €2.9 billion Broadband Internet & Fixed 991 984 - 0.7% Capex around €1
Slide 14: GVT: Strong EBITDA Margin Sustained
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 STRONG EBITDA MARGIN SUSTAINED IN A TOUGHER ECONOMIC AND COMPETITIVE ENVIRONMENT In euro millions - IFRS Q1 2012 Q1 2013 Change Constant Currency 2013 GUIDANCE Revenues 432 438 + 1.4% + 15.5% Revenue growth: Low 20%’s at constant currency Telecoms 424
Slide 15: Maroc Telecom Group: Growing Operating Margins
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 GROWING OPERATING MARGINS In euro millions - IFRS Q1 2012 Q1 2013 Change Constant currency 2013 GUIDANCE Revenues 676 644 - 4.7% - 4.6% EBITDA margin maintained at a substantial Morocco 529 490 - 7.4% - 7.5% International 155 165 + 6.5% + 7.7% level of
Slide 16: Conclusion
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 CONCLUSION Key priorities for 2013: Focus on cash flow generation in a difficult economic environment Accelerate adaptation of our telecoms businesses to challenging market conditions Integrate acquisitions closed in 2012 and deliver announced
Slide 17: Appendices
vivendi APPENDICES
Slide 18: #1 in Pay TV in France, #1 Worldwide
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 100%* 100% 61.2%** #1 in pay TV #1 worldwide #1 worldwide in in France in music video games 100% 100% 53.1%** #1 alternative #1 alternative telecoms broadband operator #1 in telecoms in France in Brazil in Morocco 18 * Canal+ Group owns 80% in Canal+ F
Slide 19: Appendices: Details of Business Operations
APPENDICES Details of Business Operations
Slide 20: Canal+ Group Subscriber Portfolio
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 In '000 Mar. 31, 2012 Mar. 31, 2013 Change Portfolio Canal+ Group 12,817 14,068 + 1,251 ow Canal+ France* 11,097 11,249 + 152 ow Poland & Vietnam 1,720 2,819 + 1,099 +133k on a proforma basis** * Individual and collective subscriptions at Canal+, Canal
Slide 21: Universal Music Group: Top-Selling Artists and Revenues
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 Recorded music : Top-selling artists* Recorded Music Revenues Q1 2012 Q1 2013 Million units Q1 2012 Q1 2013 Europe 39% 38% North America 38% 41% Madonna 2.0 Justin Bieber 1.3 Asia 16% 13% Lana Del Rey 1.5 Les Miserables 1.2 Rest of the world 7% 8% Nick
Slide 22: Activision Blizzard Non-GAAP Net Revenues and Outlook
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 Non-GAAP* Net revenues by distribution Q1 2012 Q1 2013 Change Non-GAAP* - Q1 2012 Q1 2013 Change channel - In dollar millions In dollar millions Retail channels 224 324 + 45% Activision 271 423 + 56% Digital online channels ** 298 429 + 44% Blizzard 25
Slide 23: Reconciliation to IFRS
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 RECONCILIATION TO IFRS In millions Q1 2013 In millions Q1 2013 Non-GAAP Net Revenues $804 Non-GAAP Operating Income/(Loss) $247 Changes in deferred net revenues (a) $520 Changes in deferred net revenues and related cost of sales (a) $369 Net Revenues i
Slide 24: SFR Revenues Q1 2012 vs Q1 2013
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 Q1 2012 Q1 2013 Change Change excl. In euro millions - IFRS Regulatory Impacts* Service revenues 1,863 1,514 - 18.7% - 12.5% Equipment sales, net 125 128 + 2.4% Mobile revenues 1,988 1,642 - 17.4% - 11.6% Broadband Internet and fixed revenues 991 984 -
Slide 25: SFR Mobile, Broadband Internet and Fixed
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 Q1 2012 Q1 2013 Change MOBILE Customers (in '000)* 20,843 20,719 - 0.6% Postpaid customers (in '000)* 16,292 16,820 + 3.2% Proportion of postpaid clients* 78.2% 81.2% + 3.0 pts Smartphone penetration ** 43% 54% + 11 pts Market share on customer base (%
Slide 26: GVT Operating Data
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 In '000 Mar. 31, 2012 Mar. 31, 2013 Change In BRL millions - IFRS Q1 2012 Q1 2013 Change Total Homes passed 7,677 9,557 + 24.5% Total Revenues 1,009 1,165 + 15.5% Total Lines in Services (LIS) 6,941 9,299 + 34.0% Voice 631 656 + 4.0% Retail and SME* 4,
Slide 27: Maroc Telecom: Morocco and International
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 MOROCCO Q1 2012 Q1 2013 In '000 Mar. 31, 2012 Mar. 31, 2013 Mobile customers (in '000) 17,194 17,871 Mauritania Postpaid mobile customers (in '000) 1,081 1,244 Mobile customers 1,848 2,027 Mobile ARPU (MAD/customer/month) 80 72 Fixed lines 41 42 Number
Slide 28: Appendices: Detailed Vivendi Financial Results
APPENDICES Detailed Vivendi Financial Results
Slide 29: Revenues
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 REVENUES Constant In euro millions - IFRS Q1 2012 Q1 2013 Change currency Canal+ Group 1,232 1,286 + 4.4% + 4.3% Universal Music Group 961 1,091 + 13.5% + 15.5% Activision Blizzard 894 1,003 + 12.2% + 13.0% Media 3,087 3,380 + 9.5% + 10.3% SFR 2,927 2,
Slide 30: Interest
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 INTEREST In euro millions (except where noted) – IFRS Q1 2012 Q1 2013 Interest (139) (140) Interest expense on borrowings (145) (146) Average interest rate on borrowings (%) 3.63% 3.35% Average outstanding borrowings (in euro billions) 16.0 17.4 Intere
Slide 31: Income Taxes
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 INCOME TAXES Q1 2012 Q1 2013 In euro millions – IFRS Adjusted Net income Adjusted Net income net income net income Tax savings related to the Vivendi SA's French Tax 109 103 85 69 Group and Consolidated Global Profit Tax Systems Tax charge (505) (474)
Slide 32: Reconciliation of Adjusted Net Income to Net Income, Group Share
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 RECONCILIATION OF ADJUSTED NET INCOME TO NET INCOME, GROUP SHARE In euro millions - IFRS Q1 2012 Q1 2013 Adjusted Net Income 825 * 672 Amortization and impairment losses of intangible assets acquired (111) (139) through business combinations Other inco
Slide 33: Appendices: Glossary & Disclaimers
APPENDICES Glossary & Disclaimers
Slide 34: Glossary
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 GLOSSARY Adjusted earnings before interest and income taxes (EBITA): As defined by Vivendi, EBITA corresponds to EBIT (defined as the difference between income and charges that do not result from financial activities, equity affiliates, discontinued op
Slide 35: Activision Blizzard Standalone Definition & Disclaimer
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 ACTIVISION BLIZZARD STANDALONE DEFINITION & DISCLAIMER 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) a
Slide 36: Important Legal Disclaimer
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 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 of Vivend
Slide 37: Investor Relations Team
Q 1 2 0 1 3 R e s u l t s – M a y 1 4 , 2 0 1 3 INVESTOR RELATIONS TEAM Jean-Michel Bonamy Executive Vice President Head of Investor Relations +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com PARIS NEW YORK 42, avenue de Friedland 800 Third Avenue 75380 Paris cedex 08 / France New York, NY 10022 / U