Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (December 2009)
30 slides from Vivendi's investor presentation, December 2009
Slide 1: A unique company with strong growth potential
A unique company with strong growth potential Investor Presentation December 2009 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: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms Tl F France #1 Telecoms Morocco #1 Pay-TV France Investor Presentation – December 2009
Slide 3: Vivendi: Resilience confirmed in a challenging environment
Vi di Resilience Vivendi: R ili confirmed fi d iin a challenging h ll i environment i t Our subscription-based model provides strong and highly predictable cash flows: we continue investing and innovating to attract new clients and respond to changing consumer demand in an environment of rapid techn
Slide 4: Key focus: Leverage Vivendi's best-in-class assets
K ffocus: Leverage Key L Vi Vivendi’s di’ bbest-in-class ti l assets t to benefit from convergence opportunities Increased customer demand for interactive services and products Ideally positioned to capture digital growth Key Vivendi assets Key Market Trends Creativity Digitization Networks, spectru
Slide 5: Vivendi's focus on new products and services
Vi di’ ffocus on new products Vivendi’s d t andd services i should deliver additional growth 70% of sales from subscriptions, p , 64 million subscriptions p worldwide Strong innovation track record: Activision Blizzard created the leading global online game and community with World of Warcraft. Warc
Slide 6: Innovation to drive growth: Subscriptions, Digital, ARPU
I Innovation ti tto ddrive i growth: th Subscriptions, S b i ti Di it l ARPU Digital, Increase Expand Grow subscriptions x digital revenues x ARPU & ASP More Growth Investor Presentation – December 2009 6
Slide 7: Strong cost control in each of our businesses
St Strong costt control t l in i eachh off our businesses b i Continuous adaptation of our cost structure to the evolution of regulatory framework, market and competitive environment, macroeconomic fluctuations Significant cost reduction and synergies being delivered on target Group Canal+ on track
Slide 8: Vivendi enjoys a strong financial position
Vi di enjoys Vivendi j a strong t fifinancial i l position iti €6bn of undrawn credit lines at Vivendi SA at end October 2009 No significant debt reimbursement before 2012 Committed to keep a quality BBB rating rating* Controlled financing costs * Standard & Poor’s / Fitch Rating: BBB stable – Moody
Slide 9: Vivendi to sell its 20% stake in NBC Universal for $5.8 billion
Vi di to Vivendi t sellll itits 20% stake t k in i NBC U Universal i l for f $5$5.88 billion billi Vivendi will sell its 20% stake in NBC Universal to GE for $5.8 billion and will not be a shareholder in the new entity resulting from the joint venture between NBC Universal and Comcast content assets
Slide 10: Consistent capital allocation strategy
C i t t capital Consistent it l allocation ll ti strategy t t Deliver dividends to our shareholders with a distribution rate of at least 50% of Adjusted Net Income Provide Vivendi’s business units with the necessary resources to enhance innovation and organic g ggrowth Buy out minorities at the righ
Slide 11: GVT: outstanding asset and perfect fit with Vivendi
GVT outstanding GVT: t t di assett andd perfect f t fit with ith Vi Vivendi di Invest in a successful alternative operator with a great track record record, profitable business model, creative marketing and network/IT solutions and considerable growth potential Step into one of the largest consumer
Slide 12: Vivendi: A world leader in communications and entertainment
Vi di A world Vivendi: ld lleader d iin communications i ti andd entertainment t t i t Growth potential driven by innovation Capitalize on consumer demand for mobility and broadband to increase the value of Vivendi’s content and networks First-class assets with high and predictable cash generation E
Slide 13: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms Tl F France #1 Telecoms Morocco #1 Pay-TV France Investor Presentation – December 2009
Slide 14: 3Q 2009 YTD results
vivendi 3Q 2009 YTD results
Slide 15: 3Q 2009 YTD Results
3Q 2009 YTD Results R l Revenues: €19 525 m €19,525 +9 8% +9.8% EBITA: €4,245 m +10.3% Adjusted Net Income: €2,112 m +1.6% Net Debt: €8.3 bn as of Sept. 30, 2009 Investor Presentation – December 2009 15
Slide 16: 3Q 2009 YTD highlights per business
3Q 2009 YTD hi highlights hli h per business: b i Higher subscriptions and solid ARPU Activision Blizzard: Performance above expectations driven by continued success of franchises. As of September 30, 2009, Vivendi owns approx. 57% of Activision Blizzard UMG: Lower EBITA driven by very challenging m
Slide 17: EBITA up 10%
EBITA up 10% In euro millions - IFRS Change at 9 months 9 months Change constant 2009 2008 currency Activision Blizzard 406 33 x 12.3 x 11.1 Universal Music Group 269 408 - 34.1% 34 1% - 37.4% 37 4% SFR 1,986 1,966 + 1.0% + 1.0% Maroc Telecom Group 905 913 - 0.9% - 2.6% Canal+ Groupp 754 621 + 21.4%
Slide 18: Adjusted Net Income up 1.6%
Adj t d N Adjusted Nett IIncome up 11.6% 6% In euro millions - IFRS 9 months 9 months Change % 2009 2008 Full consolidation of Neuf Cegetel since April 15, 15 2008, 2008 and lower Revenues 19,525 17,777 + 1,748 + 9.8% contribution from NBC Universal EBITA 4,245 3,848 + 397 + 10.3% Impact of Neuf Ceg
Slide 19: Financial net debt evolution
Fi Financial i l nett debt d bt evolution l ti In euro billions - IFRS Dividends Dividends Net financial December 31, CFFO Interest & tax paid to paid to investments and September 30, 2008 after Capex paid and other minorities shareholders other 2009 (0.2) (0.8) (0.7) +3.1 (1.4) (8 3) (8.3) (8 3) (8
Slide 20: Activision Blizzard: Revenues €1,986m, EBITA €406m
IFRS Revenues: €1,986m Strong global customer response to Call of Duty, In euro millions - IFRS 9 months 9 months Constant Guitar Hero and World of Warcraft 2009 2008 Change currency Revenues 1,986 919 x 2.2 + 94.8% Guitar Hero was the #1 third-party console and 406 33 x 12.3 x 11.1 EBITA handheld f
Slide 21: Universal Music Group: Revenues €2,978m, EBITA €269m
Revenues: €2,978m Digital g revenues upp 21% and account for approximately 28% of recorded music In euro millions - IFRS 9 months 9 months Constant revenues 2009 2008 Change currency Higher merchandising and music publishing Revenues 2,978 3,142 - 5.2% - 8.4% EBITA excl.l restructuring t t i costst
Slide 22: SFR: Mobile postpaid net adds and Broadband results
Mobile: postpaid net adds YTD market share of 39% In euro millions - IFRS 9 months 9 months 14.4 m postpaid customers, 71.3% of customer base 2009 2008 Change Revenues 9,230 , 8,420 , + 9.6% (+2 3pts yoy) (+2.3pts o ) Mobile 6,684 6,716 - 0.5% Service Revenues: €6,364m, -0.8%. Growth in Broadband In
Slide 23: Maroc Telecom Group: Revenues €1,999m, EBITA €905m
Revenues: €1,999m Solid performance despite more challenging economic climate: Continued leadership in Morocco (61 (61.6% 6% of 9 months 9 months Constant In euro millions - IFRS mobile net adds market share in Q309) 2009 2008 Change currency Strong growth in African subsidiaries Revenues 1,999 1,93
Slide 24: Canal+ Group: Revenues €3,368m, EBITA €754m
Revenues: €3,368m Strong portfolio growth in a difficult environment: Canal+ C l France: F +177k* 177k* nett adds dd year-on-year, In euro millions - IFRS 9 months 9 months Constant including the acquisition of Multichoice’s French 2009 2008 Change currency speaking subscriber base in Central Africa
Slide 25: Vivendi: Confirmed outlook in a challenging environment
Vi di C Vivendi: Confirmed fi d outlook tl k iin a challenging h ll i environment i t Vivendi’s subscription-based model continues to prove its resilience to the economic environment, allowing ongoing commercial initiatives and innovation 2009 is proving more challenging than anticipated Vivendi con
Slide 26: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms Tl F France #1 Telecoms Morocco #1 Pay-TV France
Slide 27: 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 com
Slide 28: Activision Blizzard – stand alone – definitions
Activision Blizzard – stand alone – definitions US Non-GAAP Financial Measures Activision Blizzard provides net revenues, revenues net income (loss), (loss) earnings (loss) per share and operating margin data and guidance both including (in accordance with US GAAP) and excluding (US Non-GAAP): the i
Slide 29: Investor Relations team
Investor Relations team Jean-Michel Bonamy Executive Vice President Investor Relations +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com Paris 42, Avenue de Friedland New York 75380 Paris cedex 08 / France 800 Thirdd Avenue e ue Ph Phone: +33.1.71.71.32.80 33 1 71 71 32 80 New York, NY 10022 / USA Fa
Slide 30: Important legal disclaimer
Important legal disclaimer The tender offer referred to herein will not be made directly or indirectly in the United States of America, or byy use of the U.S. mail or anyy U.S. means or instrumentalityy of U.S. interstate or foreign commerce or any facility of a U.S. national securities exchange. Th