Slide 1: First Half 2019 Results
July 25, 2019 FIRST HALF 2019 RESULTS IMPORTANT NOTICE: Financial Pour insérer results lafornotice, the halfcliquez year ended sur leJune bouton 30, 2019 « Formes » puis double-cliquez sur la version EN ou FR Unaudited dans le dossier financial 02.statements, Mentionsprepared & Tags under IFRS Inves
Slide 2: Summary
First Half 2019 Results - July 25, 2019 SUMMARY 1 H1 2019 Key Takeaways 2 H1 2019 Financials 3 Group Results 4 Business Unit Performances 5 Q&A 6 Appendices 2
Slide 3: H1 2019 Key Takeaways
ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer H1 2019 Key Takeaways 3
Slide 4: H1 2019 – Key Takeaways
First Half 2019 Results - July 25, 2019 H1 2019 – KEY TAKEAWAYS ■ Strong increase in profitability ■ UMG: record result with revenues of €3,258 M, up 18.6% and an EBITA of € 481 M, up 43.6% ■ Tripling of earnings attributable to Vivendi SA shareowners to € 520 M ■ Pursuing of targeted acquisition st
Slide 5: Evolution of UMG's Share Capital
First Half 2019 Results - July 25, 2019 EVOLUTION OF UMG’S SHARE CAPITAL ■ The Group has selected the advisory banks as part of the plan to open up the UMG share capital ■ The Vendor Due Diligence report, presented to the Supervisory Board in May, will be updated by PwC with the first half 2019 fina
Slide 6: H1 2019 Financials
HERVÉ PHILIPPE Member of the Management Board Chief Financial Officer H1 2019 Financials 6
Slide 7: Currencies, Scope of Consolidation and IFRS
First Half 2019 Results - July 25, 2019 CURRENCIES, SCOPE OF CONSOLIDATION AND IFRS ▪ Currencies Average rate over the period Q1 2018 Q1 2019 Q2 2018 Q2 2019 H1 2018 H1 2019 USD: 1.220 1.136 1.215 1.129 1.217 1.133 EUR vs. GBP: 0.883 0.882 0.875 0.871 0.879 0.876 JPY: 134 126 131 125 133 126 ▪ Main
Slide 8: H1 2019 Results
First Half 2019 Results - July 25, 2019 H1 2019 RESULTS ■ Strong growth in the group’s profitability D organic H1 2018 H1 2019 D (%) In euro millions (%)* Revenues 6,476 7,353 +13.6% +6.7% EBITA 542 718 +32.4% +27.6% EBIT 492 645 +31.2% Adjusted Net Income 393 554 +40.8% Earnings attributable to Viv
Slide 9: Cash Evolution
First Half 2019 Results - July 25, 2019 CASH EVOLUTION (in euro billions) 0.2 -0.8 +0.4 Editis acquisition -1.6 Of which : - Dividends (-€ 636 M) - Share buyback (-€ 947 M) -0.3 * (2.1) Net Cash as of Acquisition of Editis Sale of remaining stake in Shareholder returns CFAIT Net Debt as of December
Slide 10: Group Results
Group Results vivendi 10
Slide 11: Consolidated P&L
First Half 2019 Results - July 25, 2019 CONSOLIDATED P&L H1 2018 H1 2019 D (%) in euro millions Revenues 6,476 7,353 +13.6% EBITA* 542 718 + 32.4% EBIT 492 645 +31.2% Income from non-operating equity affiliates 8 (8) Interest (26) (21) Income from investments 15 5 Other financial income and charges
Slide 12: Revenues by Business Unit
First Half 2019 Results - July 25, 2019 REVENUES BY BUSINESS UNIT D organic H1 2018 H1 2019 D (%) in euro millions - IFRS (%) Universal Music Group 2,628 3,258 +24.0% +18.6% Canal+ Group 2,575 2,518 -2.2% -2.2% Havas Group 1,073 1,114 +3.8% +0.2% Editis* - 260 Other businesses** and intercompany eli
Slide 13: EBITA by Business Unit
First Half 2019 Results - July 25, 2019 EBITA BY BUSINESS UNIT EBITA D organic H1 2018 H1 2019 D (%) in euro millions (%)* Universal Music Group 326 481 +47.3% +43.6% Canal+ Group 221 233 +5.4% +5.9% Canal+ Group - EBITA before restructuring charges 249 236 -5.2% -4.8% Havas Group 102 108 +5.8% +2.0
Slide 14: Consolidated Balance Sheet
First Half 2019 Results - July 25, 2019 CONSOLIDATED BALANCE SHEET Assets Equity and Liabilities January 1, 2019* June 30, 2019 January 1, 2019* June 30, 2019 in euro millions in euro millions Goodwill 12,438 13,452 Consolidated equity** 17,375 15,823 Intangible and tangible assets 6,037 6,145 Provi
Slide 15: Liquidity and Capital Resources
First Half 2019 Results - July 25, 2019 LIQUIDITY AND CAPITAL RESOURCES Cash evolution December 31, 2018 June 30, 2019 in euro millions Cash and cash equivalents 3,793 3,239 Cash management financial assets 599 940 Gross cash position 4,392 4,179 Bonds (4,050) (6,150) Other financial liabilities, ne
Slide 16: Business Unit Performances
Business Unit Performances 16
Slide 17: Universal Music Group
Universal Music Group vivendi 17
Slide 18: Universal Music Group
First Half 2019 Results - July 25, 2019 UNIVERSAL MUSIC GROUP H1 2019 record results supported by recorded music growth Continued growth supported by streaming & subscriptions and physical sales Strong operating leverage effect ▪ € 3,258 M revenues, +18.6% yoy* ▪ €481m of EBITA ▪ Streaming and subsc
Slide 19: Universal Music Group – Key Figures
First Half 2019 Results - July 25, 2019 UNIVERSAL MUSIC GROUP Key Figures D organic H1 2018 H1 2019 D (%) in euro millions (%) Revenues 2,628 3,258 +24.0% +18.6% Recorded music 2,121 2,596 +22.4% +16.9% Streaming and subscriptions 1,187 1,567 +32.1% +25.5% Other digital sales (mainly downloads) 237
Slide 20: Canal+ Group
Canal+ Group vivendi 20
Slide 21: Canal+ Group
First Half 2019 Results - July 25, 2019 CANAL+ GROUP Subscriber base* growth driven by international activities Evolution of EBITA before restructuring charges +105 16,043 16,148 270 10.0% 9.7% 9.4% 250 9.0% 230 8.0% 7,608 7,978 7.0% 210 6.0% 190 5.0% 170 249 236 4.0% 150 3.0% 130 2.0% 110 1.0% +45*
Slide 22: Canal+ Group – International
First Half 2019 Results - July 25, 2019 CANAL+ GROUP International ▪ Continued growth of the subscriber base*, driven by Africa and Poland +361 7,896 7,535 553 568 837 1,073 2,163 2,119 4,343 3,775 June 30, 2018 June 30, 2019 Africa Poland Asia Overseas * In thousands, excluding collective contracts
Slide 23: Canal+ Group – Mainland France
First Half 2019 Results - July 25, 2019 CANAL+ GROUP Mainland France Evolution of the individual subscriber base* Growth of the subscriber base without commitment* 7,922 7,659 300 3,130 213 3,076 June 30, 2018 June 30, 2019 Evolution of churn** 4,792 4,583 17.6% June 30, 2018 June 30, 2019 15.3% Sel
Slide 24: Canal+ Group – Key Figures
First Half 2019 Results - July 25, 2019 CANAL+ GROUP Key figures D organic H1 2018 H1 2019 D (%) in euro millions (%) Revenues 2,575 2,518 -2.2% -2.2% TV International 782 808 +3.3% +3.7% TV mainland France 1,591 1,520 -4.5% -4.5% Studiocanal 202 190 -6.2% -6.7% EBITA before restructuring charges 24
Slide 25: Havas Group
Havas Group vivendi 25
Slide 26: Havas Group – Solid Performances
First Half 2019 Results - July 25, 2019 HAVAS GROUP Solid performances Net revenues: evolution of organic growth Evolution of EBITA* 200 12.0% 180 11.0% 160 10.2% 10.0% 140 10.0% 120 9.0% +0.2 % 100 8.0% 80 60 7.0% -2.9 % 102 108 40 6.0% 20 H1 2018 H2 2018 - 5.0% H1 2018 H1 2019 EBITA (€M)* EBITA /
Slide 27: Havas Group – Organic Growth Net Revenue H1 2019
First Half 2019 Results - July 25, 2019 HAVAS GROUP Organic Growth Net Revenue - H1 2019 [A venir de DM] +1.0% of which UK -0.5% Europe +1.7% +1.1% North of which America France -1.3% Asia Pacific +0.2 % Havas Group -0.9% Latam 27
Slide 28: Havas Group – Key Figures
First Half 2019 Results - July 25, 2019 HAVAS GROUP Key Figures D organic H1 2018 H1 2019 D (%) in euro millions (%) Revenues 1,073 1,114 +3.8% +0.2% Net revenues 1,020 1,061 +4.0% +0.2% EBITA before restructuring charges* 109 115 +5.7% +2.1% EBITA before restructuring charges / net revenues 10.7% 1
Slide 29: Editis
Editis 29
Slide 30: Editis – Key Figures
First Half 2019 Results - July 25, 2019 EDITIS Key figures ▪ Acquisition of 100% of Editis, France #2 publishing group, completed on January 31, 2019 H1 2018 D H1 2019* 5-month proforma (5 months) in euro millions proforma (%) Revenues 257 260 +1.2% Literature 121 125 +3.3% Education & Reference 57
Slide 31: Vivendi
vivendi
Slide 32: Appendices
Appendices vivendi 32
Slide 33: Key Performance Indicators
Key performance indicators 33
Slide 34: Universal Music Group – Key Performance Indicators
First Half 2019 Results - July 25, 2019 UNIVERSAL MUSIC GROUP Key Performance Indicators D organic D organic Q2 2018 Q2 2019 H1 2018 H1 2019 in euro millions - IFRS (%) in euro millions (%) Recorded music North America 991 1,230 +13.3% 1,142 1,389 +14.9% Europe 678 781 +15.4% Subscriptions and strea
Slide 35: Canal+ Group – Key Performance Indicators
First Half 2019 Results - July 25, 2019 CANAL+ GROUP Key Performance Indicators June 30, 2018 June 30, 2019 D in thousands Individual subscribers 15,457 15,555 +98 International 7,535 7,896 +361 Mainland France 7,922 7,659 -263 Self distributed subscribers 4,792 4,583 -209 Customers via wholesale pa
Slide 36: Havas Group – Q2 2019 Net Revenue Organic Growth
First Half 2019 Results - July 25, 2019 HAVAS GROUP Q2 2019 Net Revenue Organic Growth [A venir de DM] -0.9% of which UK -1.0% +1.9% North Europe +3.8% America of which France -1.0% Asia Pacific +0.4 % Havas Group +4.2% Latam 36
Slide 37: Editis – H1 2019 Best Sellers
First Half 2019 Results - July 25, 2019 EDITIS H1 2019 best sellers* Michel Bussi Marc Levy Raphelle Giordano Franck Thilliez Bernard Minier * Source GfK 37
Slide 38: Other Businesses – Revenues and EBITA
First Half 2019 Results - July 25, 2019 OTHER BUSINESSES Revenues and EBITA Revenues H1 2018 H1 2019 in euro millions - IFRS Gameloft 141 133 Vivendi Village 52 66 New Initiatives 32 34 Intercompany Elimination (25) (30) Revenues - Other businesses 200 203 EBITA H1 2018 H1 2019 in euro millions Game
Slide 39: Gameloft – H2 2019 Selected Game Releases
First Half 2019 Results - July 25, 2019 GAMELOFT H2 2019 selected game releases* Asphalt 9: Legends (on Nintendo Switch™) Disney Princess Majestic Quest Disney Getaway Blast * Non-exhaustive selected release schedule, subject to change 39
Slide 40: Shareholding in Telecom Italia
First Half 2019 Results - July 25, 2019 SHAREHOLDING IN TELECOM ITALIA ▪ Accounting for the interest in Telecom Italia ▪ Under equity method of accounting since December 15, 2015 ▪ Share of earnings accounted with a one-quarter lag in euro millions H1 2018 H1 2019 Vivendi's share of Telecom Italia's
Slide 41: Detailed Financial Results
Detailed financial results 41
Slide 42: Adjusted Net Income
First Half 2019 Results - July 25, 2019 ADJUSTED NET INCOME H1 2018 H1 2019 D (%) in euro millions Revenues 6,476 7,353 +13.6% EBITA* 542 718 +32.4% Other income and charges 3 - Income from non-operating equity affiliates 38 22 Interest (26) (21) Income from investments 15 5 Provision for income tax
Slide 43: Q2 Revenues by Business Unit
First Half 2019 Results - July 25, 2019 Q2 REVENUES BY BUSINESS UNIT D organic Q2 2018 Q2 2019 D (%) in euro millions - IFRS (%) Universal Music Group 1,406 1,756 +24.9% +18.4% Canal+ Group 1,277 1,266 -0.9% -1.0% Havas Group 567 589 +3.8% +0.3% Editis* - 171 na na Other businesses and intercompany
Slide 44: Cash Flow from Operations by Business Unit
First Half 2019 Results - July 25, 2019 CASH FLOW FROM OPERATIONS By Business Unit H1 2018 H2 2018 H1 2019 in euro millions Universal Music Group 204 634 166 Canal+ Group 172 87 174 Havas Group (104) 334 (72) Editis* - - (87) Other businesses** (140) (61) (145) CFFO - Vivendi 132 994 36 * Editis has
Slide 45: Cash Flow from Operations Analysis
First Half 2019 Results - July 25, 2019 CASH FLOW FROM OPERATIONS Analysis H1 2018 H2 2018 H1 2019 in euro millions EBITDA proforma (before IFRS 16 impact) 754 986 882 Operating lease expenses - - 125 EBITDA 754 986 1,007 Operating lease expenses - - (125) Content investments paid (1,388) (1,346) (1
Slide 46: H1 IFO and EBITDA by Business Unit
First Half 2019 Results - July 25, 2019 H1 IFO AND EBITDA BY BUSINESS UNIT Income from operations (IFO) H1 2018 H1 2019 in euro millions Universal Music Group 355 501 Canal+ Group 241 235 Havas Group 115 121 Editis* - 6 Other businesses** (109) (107) Total Vivendi 602 756 EBITDA H1 2018 H1 2019 in e
Slide 47: Interest & Income Tax
First Half 2019 Results - July 25, 2019 INTEREST & INCOME TAX H1 2018 H1 2019 in euro millions (except where noted) – IFRS Interest expense on borrowings (32) (35) Average interest rate on borrowings (%) 1.36% 1.51% Average outstanding borrowings (in euro billions) 4.6 4.7 Interest income from cash
Slide 48: Reconciliation of EBIT to Income from Operations
First Half 2019 Results - July 25, 2019 RECONCILIATION OF EBIT TO INCOME FROM OPERATIONS H1 2018 H1 2019 in euro millions EBIT 492 645 Amortization and depreciation on intangible assets acquired through business combinations 53 73 Other charges and income (3) - EBITA 542 718 Restructuring charges 62
Slide 49: Reconciliation of Earnings to Adjusted Net Income
First Half 2019 Results - July 25, 2019 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME H1 2018 H1 2019 in euro millions Earnings attributable to Vivendi SA shareowners 165 520 Amortization and depreciation of intangible assets acquired through business combi
Slide 50: Glossary and Legal Disclaimer
Glossary and Legal Disclaimer 50
Slide 51: Glossary
First Half 2019 Results - July 25, 2019 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 and Vivendi considers these to be relevant indicators of the group’s operating and financi
Slide 52: Important Legal Disclaimer / Contacts
First Half 2019 Results - July 25, 2019 IMPORTANT LEGAL DISCLAIMER / CONTACTS 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 Viv