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Vivendi — Investor Presentation (November 2006)

35 slides from Vivendi's investor presentation, November 2006

  1. Slide 1: Investor Presentation November 2006

    Investor Presentation November 2006 November 2006

  2. Slide 2: Vivendi Operates First Class Assets in Global Content and Local Distribution Platforms

    Vivendi Operates First Class Assets in Global Content and Local Distribution Platforms #1 French pay-TV 100% #1 in Morocco’s #2 French Mobile operator Fixed, Mobile & Internet #1 French 3G provider 51% 56% #1 Worldwide in Music 100% Leading alternative fixed and DSL operator (56%) *41% =23% Leading

  3. Slide 3: Our Strategy: Innovation & Leadership

    Our Strategy: Innovation & Leadership › Strengthen our leadership positions in superior content and distribution businesses › Pursue new digital services revenue streams that take advantage of the rise of mobility and broadband November, 2006 3

  4. Slide 4: Main and Recent Events in the First Nine Months 2006

    Main and Recent Events in the First Nine Months 2006 › Canal+ /TPS combination : › Agreement between Vivendi, TF1 and M6 on January 6, and with Lagardère on February 17 › Authorization awarded on August 31, 2006 within the initial time frame › Closing of the combination is expected early January 200

  5. Slide 5: CANAL+ and TPS Combination: Creation of CANAL+ France

    CANAL+ and TPS Combination: Creation of CANAL+ France 100% 20% 65% 9.9% 5.1% 100% CANAL+ France (1) ƒ Total pro forma 2005 subscriptions: 9.9m (1)* ƒ Pro forma 2005 revenues: €3.4bn (1) ƒ Comprehensive array of content (1) Scope: French Pay-TV = 100% CANALSAT, TPS, CANAL+, MultiThématiques, MediaOve

  6. Slide 6: Focus on the CANAL+ / TPS Combination

    Focus on the CANAL+ / TPS Combination › The French government awarded its authorization on August 31, 2006 within the initial time frame › Consumers will soon be able to access a unique enriched offer through a single commercial operator › Vivendi’s commitments do not put into question the industria

  7. Slide 7: Announced Acquisition of BMG Music Publishing

    Announced Acquisition of BMG Music Publishing* Consideration: €1,630 million in Enterprise value › Why Music Publishing? • Attractive low risk, high margin business • Creates the world’s largest music publishing company • Scarcity value of sizeable pure-play music publishing assets › Why BMG Music P

  8. Slide 8: UMG to Purchase BMG Music Publishing: A Unique Opportunity

    UMG to Purchase BMG Music Publishing: A Unique Opportunity … BMG Music Publishing enhances the strategic position and value of Universal Music Group as the world’s leading recorded music company AND music publishing company UMG Today UMG + BMG MP Publishing Publishing 8% 14% BMG MP €370m revenues Re

  9. Slide 9: Strong Growth of the Group's Profitability on the First Nine Months 2006

    Strong Growth of the Group’s Profitability on the First Nine Months 2006 ƒ Net Income, group share, of €3,423 million, up 79.9 % ƒ Adjusted Net Income, group share, of €2,109 million, up 16.3 % ƒ EBITA* of €3,648 million, up 14.4 % on a comparable basis, due to the good performance of each business

  10. Slide 10: Continuous Improvement in Group's Margins

    Continuous Improvement in Group’s Margins In euro million FY 04 Q1 05 Q2 05 Q3 05 Q4 05 FY 05 Q1 06 Q2 06 Q3 06 Revenues 17 883 4 509 4 622 4 874 5 479 19 484 4 766 4 844 4 889 EBITA 3 504 976 1 145 1 075 789 3 985 1 047 1 301 1 300 EBITA Margin 19.6% 21.6% 24.8% 22.1% 14.4% 20.5% 22.0% 26.9% 26.6%

  11. Slide 11: Operating Highlights for the First Nine Months 2006

    Operating Highlights for the First Nine Months 2006 Revenues up 4.1% to €14,462m on a comparable basis 9 Strong growth at Vivendi Games (+20.7%) and Maroc Telecom (+12.6%) 9 Growth at UMG (+2.7%) with strong growth in digital sales 9 Steady Growth at Canal+ Group (+8.7%) 9 SFR (+0.5%) adversely impa

  12. Slide 12: Our 2006 Financial Objectives

    Our 2006 Financial Objectives › Financial goals are reaffirmed • Adjusted net income: ≥ +16%, i.e. approx. €2.6bn • Earnings per share: ≥ +16%, i.e. approx. €2.26 per share • Dividend: Pay-out ratio of a minimum 50%, i.e. a minimum of €1.13 per share › Objectives of the Business Units are also confi

  13. Slide 13: Growth Drivers Are In Place

    Growth Drivers Are In Place › Digital generates in 9 months 2006 a growing portion of the Group’s activities: • 10.5% of Universal Music Group’s revenues • 74% of CANAL+ Group’s subscriptions in France • 71% of Vivendi Games revenues are derived from online games › The pending combination between Ca

  14. Slide 14: 2011 Outlook Confirmed

    2011 Outlook Confirmed › 2006-2011 EBITA average growth: Between 8% and 10% per annum › 2011 Adjusted Net Income: Between €3.5 billion and €4.0 billion * * Including the assumption that all deferred tax assets will have been utilized by end of 2010. November, 2006 14

  15. Slide 15: Strong Corporate Governance

    Strong Corporate Governance ƒ A dual corporate governance structure: Supervisory Board: Jean-René Fourtou, Chairman 11 members, 9 are independent and 4 are non-French Committees of the Supervisory Board: Strategy Committee Audit Committee Human Ressources Committee Corporate Governance Committee Man

  16. Slide 16: Appendices: Business Profile and Outlook

    Appendices: Business Profile and Outlook November 2006 16

  17. Slide 17: Universal Music Group: First Nine Months 2006 Achievements

    On a comparable basis Universal Music Group: In million Euros First Nine Months 2006 Achievements Revenues +2.7% ƒ Sales are up 2.7% (up 1.4 % in constant currency) ƒ Digital sales were €348m, 10.5% of total revenues, with strong growth in all 3,298 markets and sectors 3,211 ƒ Higher license income

  18. Slide 18: Universal Music Group: Strategy and Growth Drivers to 2011

    Universal Music Group: Strategy and Growth Drivers to 2011 2006-2011 outlook › Rapid growth of digital, online and mobile sales which compensates and beyond the erosion of physical CD’s.… › …Allowing to maintain worldwide market share at a high level › Take advantage of the world’s leading position

  19. Slide 19: Vivendi Games: First Nine Months 2006 Achievements

    On a comparable basis Vivendi Games: In million Euros Revenues First Nine Months 2006 Achievements +20.7% ƒ Revenues are up 20.7% (up +18.4% in constant currency) 478 396 ƒ Blizzard’s World of Warcraft continues to drive growth and in early November achieving a paying client base of 7.5 million play

  20. Slide 20: Vivendi Games: Strategy and Growth Drivers to 2011

    Vivendi Games : Strategy and Growth Drivers to 2011 2006-2011 outlook › Vivendi Games’ main growth drivers: development of Broadband Internet, growth in Asia, games on mobile › With a leading worldwide position and a steady improvement of its content and geographical development, World of Warcraft w

  21. Slide 21: Canal+ Group: First Nine Months 2006 Achievements

    On a comparable basis Canal+ Group: In million Euros First Nine months 2006 Achievements Revenues ƒ Revenues are up 8.7% +8.7% ƒ French Pay TV is up 10% due to: 2,675 › Portfolio growth (+3.3% vs. last year) and increased ARPU 2,462 ƒ Canal+ Poland up 11% excluding exchange rate effects ƒ StudioCana

  22. Slide 22: CANAL+ Group: Strategy and Growth Drivers to 2011

    CANAL+ Group: Strategy and Growth Drivers to 2011 2006-2011 outlook › Growth of pay-TV market with new distribution platforms (ADSL, DTT, mobile) and increased digitization (close to 100% digital subscribers in 2011) › Strengthening of Canal+ Le Bouquet premium offering and broadening of multi-chann

  23. Slide 23: SFR: First Nine Months 2006 Achievements

    On a comparable basis In million Euros SFR: First Nine Months 2006 Achievements Revenues ƒ Revenues are up 0.5% +0.5% ƒ Strong cut of regulated tariffs as of January 1, 2006 (24% cut in mobile voice termination and 19% in SMS termination). 6,464 6,497 ƒ Increase in customer base and growth in “voice

  24. Slide 24: SFR: Strategy and Growth Drivers to 2011

    SFR : Strategy and Growth Drivers to 2011 2006-2011 outlook › Management of subscriber base • Low penetration of French market (81%) compared to the rest of Western Europe (98% in average) ƒ Benefit from increased penetration in France towards 100%, with a target market share very close to current l

  25. Slide 25: SFR's mobile-centric strategy

    SFR’s « mobile-centric » strategy The core of SFR’s offer Option SFR’s existing Happy Zone Internet access mobile offer GSM / 3 G ADSL 2G / 3G / WIFI / WIMAX Voice Internet November, 2006 25

  26. Slide 26: Maroc Telecom: First Nine Months 2006 Achievements

    On a comparable basis Maroc Telecom: In million Euros First Nine Months 2006 Achievements Revenues +12.6% ƒ Revenues are up 12.6% and up 11.8% in constant currency 1,554 ƒ Mobile revenues up 16.7% to €1,011m 1,380 › Strong increase of Mobile customer base: +2.5 million (+30.5%) over the past 12 mont

  27. Slide 27: Maroc Telecom: Strategy and Growth Drivers to 2011

    Maroc Telecom : Strategy and Growth Drivers to 2011 2006-2011 Outlook › Boost profitable growth on mobile market and consolidate leadership position • Strengthening of penetration and usage of mobile telecommunication services • Launch of innovative services • Roll-out of UMTS network › Intensify co

  28. Slide 28: 2006 Operational Guidance

    2006 Operational Guidance In euro million Revenues EBITA › Universal Music Group “Slight Growth” “Same margin rate or slightly above 2005” › Vivendi Games “Growth above +15%” “Margin rate above 11% from 8.7% in 2005” › Canal+ Group “4% to 6% growth “ “Stable at constant perimeter” › SFR “Stable to s

  29. Slide 29: Appendices: Nine Months & Third Quarter 2006 Financial Performance

    Appendices: Nine Months & Third Quarter 2006 Financial Performance November 2006 29

  30. Slide 30: All Vivendi's Business Units have increased their operating margin

    All Vivendi’s Business Units have increased their operating margin On a comparable basis – IFRS - not audited In euro million Revenues EBITA Q3 2006 YTD Q3 2006 YTD › Universal Music Group €1,096m - 2.1% €3,298m + 2.7% €138m + 11.3% €433m + 18.6% › Vivendi Games €182m +15.2% €478m + 20.7% €24m +118.

  31. Slide 31: Consolidated Nine Months 2006 Statement of Earnings

    Consolidated Nine Months 2006 Statement of Earnings 9 Months 9 Months % In euro million – IFRS – Figures as published – not audited 2006 2005 Growth 1 Revenues 14,499 14,005 +3.5% 2 EBITA 3,648 3,196 +14.1% 3 Amortization of intangible assets acquired through business combinations (167) (174) +4.0%

  32. Slide 32: Net debt evolution – Nine months 2006

    Net debt evolution – Nine months 2006 In billion euros – IFRS-not audited Dividends December 31, Interest, Dividends paid Other September 30, Acquisitions Divestitures CFFO paid to 2005 tax & other to shareholders adjustments 2006 minorities 0 Including (in million €): ƒIncome tax cash: -1,075 inclu

  33. Slide 33: 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

  34. Slide 34: Investor Relations Team

    Investor Relations Team Daniel Scolan Executive Vice President Investor Relations +33.1.71.71.14.70 daniel.scolan@vivendi.com Paris New York 42, Avenue de Friedland 800 Third avenue 75380 Paris cedex 08 / France New York, NY 10022 / USA Phone: +33.1.71.71.32.80 Phone: +1.212.572.1334 Fax: +33.1.71.7

  35. Slide 35: Important Legal Disclaimer

    Important Legal Disclaimer Vivendi is quoted on Euronext Paris SA. This presentation contains “forward-looking statements” as that term is defined in the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of the company’s future performance. Actua

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