Vivendi Se · EURONEXT:VIV
Vivendi — Q1 2016 Earnings Presentation
25 slides from Vivendi's earnings presentation, May 11, 2016
Slide 1: First Quarter 2016 Results
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 May. 11, 2016 FIRST QUARTER 2016 RESULTS 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: Highlights
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 HIGHLIGHTS ■ Sale of the 5.7% remaining stake in Activision Blizzard for net proceeds of c. € 1 billion. ■ The tender offer on Gameloft announced on February 18, 2016, was opened on March 21, 2016. ■ Announcement of a strategic and industrial partnersh
Slide 3: Scope of Consolidation and Main Currencies
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES In compliance with IFRS 5, GVT qualifies as a discontinued operation from Q3 2014, hence its earnings are reported as “Earnings from discontinued operations”. This classification retrospectively applies to Sta
Slide 4: Key Financial Metrics at End March 2016
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 KEY FINANCIAL METRICS AT END MARCH 2016 % Change % Underlying change* Year-on-year Year-on-year Revenues: € 2,491 m - - 1.4 % IFRS EBIT: € 968 m x 8.3 Net Income, group share: € 862 m x 25.9 Non-GAAP Income from operations: € 228 m + 4.5 % + 9.
Slide 5: Highlights – Universal Music Group
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 Constant perimeter In euro millions - IFRS 3M 2015 3M 2016 Change and constant HIGHLIGHTS currency * Revenues 1,097 1,119 + 1.9% + 0.6% ■ Subscription and streaming up c. 60%* in Q1 2016 Recorded music 874 890 + 1.8% + 0.5% compared to Q1 2015, while d
Slide 6: UMG – Focus on recorded music by format
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 UMG – Focus on recorded music by format ■ Continued strong growth of subscription and streaming revenues, ■ Subscription and streaming now despite decline in physical and download revenues accounts for 61% of digital revenues, 34% of total recorded mus
Slide 7: Highlights – Canal+ Group
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 Constant perimeter In euro millions - IFRS 3M 2015 3M 2016 Change and constant HIGHLIGHTS currency * Revenues 1,370 1,328 - 3.1% - 2.8% ■ Revenues down 2.8%*: Pay-TV Mainland France 859 820 - 4.6% - 4.6% ■ Pay-TV revenues decreased in mainland France P
Slide 8: Canal+ - Update on Pay-TV operations in mainland France
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 Canal+ - Update on Pay-TV operations in mainland France ■ Subscription base* evolution ■ Canal+ channels** in France - EBITA In thousand In euro millions -415k Q1 2015 Q1 2016 -183k 8,691 8,459 8,276 -50 -59 -17.2% Q1 EBITA benefited from lower film pr
Slide 9: Highlights – Vivendi Village, New Initiatives, Corporate
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 VIVENDI VILLAGE Constant perimeter HIGHLIGHTS In euro millions - IFRS 3M 2015 3M 2016 Change and constant currency * . Revenues 25 25 + 2.4% - 6.9% Vivendi Village Income from operations 4 (4) na na ■ Decrease in Income from operations and EBITA EBITA
Slide 10: Adjusted P&L
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 ADJUSTED P&L Constant perimeter In euro millions - IFRS 3M 2015 3M 2016 Change % and constant currency* Revenues 2,492 2,491 -1 - - 1.4% Income from operations 218 228 + 10 + 4.5% + 9.9% Income from operations margin 8.7% 9.1% + 0.4pt Equity settled sh
Slide 11: Consolidated P&L
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 CONSOLIDATED P&L In euro millions - IFRS 3M 2015 3M 2016 Change Revenues 2,492 2,491 -1 Cost of revenues (1,510) (1,510) Selling, general and administrative expenses excluding amortization (757) (747) of intangible assets acquired through business comb
Slide 12: Consolidated Balance Sheet
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 CONSOLIDATED BALANCE SHEET In euro millions December 31, December 31, Assets March 31, 2016 Equity and Liabilities March 31, 2016 2015 2015 Goodwill 10,177 10,004 Consolidated equity * 21,086 19,954 Intangible and tangible assets 4,335 4,075 Provisions
Slide 13: Net Cash at End March 2016
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 NET CASH AT END MARCH 2016 In euro billions Disposals and Net Cash Interest, taxes paid decrease of financial Acquisitions and Distribution to Net Cash Dec. 31, 2015 CFFO and other assets investments Share buyback shareholders March 31, 2016 6.4 -0.8 +
Slide 14: Appendices
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 APPENDICES Details of Business Operations: slides 15-16 Detailed Vivendi Financial Results: slides 18-22 Glossary, Disclaimer & Contacts: slides 24-25
Slide 15: UMG
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 UMG Constant Recorded Music Revenues 3M 2015 3M 2016 perimeter and In euro millions - IFRS 3M 2016 Europe 37% 37% constant North America 43% 43% currency * Asia 11% 13% Recorded music 890 + 0.5% Rest of the world 9% 7% Physical sales 236 - 16.6% Digita
Slide 16: Canal+ Group
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 CANAL+ GROUP In '000 March 31, 2015 March 31, 2016 Change Constant individual subscribers 10,943 10,951 +8 perimeter In euro millions - IFRS 3M 2015 3M 2016 Change Mainland France 6,015 5,546 - 469 and constant International 4,928 5,405 + 477 currency
Slide 17: Appendices: Detailed Vivendi Financial Results
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 APPENDICES Detailed Vivendi Financial Results
Slide 18: Revenues / EBITDA / EBITA
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 REVENUES / EBITDA / EBITA Constant Revenues Constant perimeter 3M 2015 3M 2016 Change In euro millions - IFRS currency and constant currency * Universal Music Group 1,097 1,119 + 1.9% + 0.6% + 0.6% Canal+ Group 1,370 1,328 - 3.1% - 2.8% - 2.8% Vivendi
Slide 19: Revenues / Income from Operations / EBITA
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 REVENUES / INCOME FROM OPERATIONS / EBITA Constant Revenues Constant perimeter 3M 2015 3M 2016 Change In euro millions - IFRS currency and constant currency * Universal Music Group 1,097 1,119 + 1.9% + 0.6% + 0.6% Canal+ Group 1,370 1,328 - 3.1% - 2.8%
Slide 20: Interest & Income Tax
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS 3M 2015 3M 2016 Interest (5) (8) Interest expense on borrowings (17) (14) Average interest rate on borrowings (%) 2.75% 2.55% Average outstanding borrowings (in euro billions) 2.5 2.1 I
Slide 21: Reconciliation of Earnings to Adjusted Net Income
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME In euro millions - IFRS 3M 2015 3M 2016 Earnings attributable to Vivendi SA shareowners (*) 33 862 Amortization and depreciation of intangible assets acquired thro
Slide 22: Reconciliation of EBIT to Income from Operations
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 RECONCILIATION OF EBIT TO INCOME FROM OPERATIONS In euro millions - IFRS 3M 2015 3M 2016 EBIT 117 968 Amortization and depreciation of intangible assets acquired through business 98 55 combinations Other income & charges 3 (810) EBITA 218 213 Equity se
Slide 23: Appendices: Glossary & Disclaimer
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 APPENDICES Glossary & Disclaimer
Slide 24: Glossary
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 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 this to be relevant indicators of the group’s operating and
Slide 25: Important Legal Disclaimer / Contacts
3 M 2 0 1 6 R e s u l t s – M a y 1 1 , 2 0 1 6 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 outloo