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Vivendi — Vivendi Universal — Investor Presentation (November 2002)
28 slides from Vivendi's investor presentation, Nov 5, 2002
Slide 1: Introduction to Cegetel Groupe
Introduction to Cegetel Groupe Frank Esser - CEO
Slide 2: Agenda
Our strategy Focus on Groupe Cegetel mobile activities Focus on Groupe Cegetel fixed activities Cegetel Groupe consolidated results Agenda
Slide 3: Our strategy
Our strategy ? Segmentation ? Retention ? Services From volume to value and cost management and cash generation From market and customer conquest to customer base and relationship focus From one product (voice) to a new range of services based on existing and new technology Keep growing revenues and
Slide 4: A focused management team
A focused management team Cegetel Groupe Executive Committee P. Germond Chairman F. Esser CEO P. Bardon CEO Mobile Branch O. Huart CEO Fixed Branch JP. Duthoit CEO Networks & Systems J. Duval Hamel Executive VP - HR R. Lalande Executive Vice President P. Trotot Executive VP - Finances
Slide 5: Cegetel Groupe shareholding structure
Cegetel Groupe shareholding structure Cegetel Groupe shareholding structure
Slide 6: Groupe Cegetel Mobile
groupe cegetel Mi i 119602 -page 6
Slide 7: France: the most attractive wireless market in Europe
France: the most attractive wireless market in Europe A stable 3 operator market structure Orange: 49.6% Market Share (Sept-02) SFR: 35% MS Bouygtel: 15.4% MS 37.8 M mobile users by the end H1-02 The least penetrated market in Europe The fastest customer growth in Europe: + 4.7 M customers over year
Slide 8: Mobile entertainment: a key to value creation
Target: 2 Bn services revenues in 2005 Mobile entertainment: a key to value creation: Acquisition costs are reduced by leveraging the client data bases with new offers Customer loyalty is improved ARPU is increased Value-added services and personalisation facilitate one-to-one marketing actions
Slide 9: Services: the take off
Services: the take off 1 Bn Texto in 2001 - already 1.8 Bn to date Volumes increased by 130% over year SMS represent 5% of the invoice to date vs. 2.9% in 2001 and 1% in 2000. Launch of MMS
Slide 10: Our strategy in action: The SFR universes of services
Our strategy in action: The SFR universes of services Music Daily life Pros Sports
Slide 11: The most valuable customers in France
The most valuable customers in France The SFR ARPU is higher than competitors' on each segment + 19% vs. Orange and + 10% vs. Bouygues on average by June 2002 +11 vs. Orange on contracts * SFR ARPU in Bouygues format = SFR ARPU + roaming in ** SFR ARPU in Orange format = SFR ARPU + roaming in + conn
Slide 12: Increasing ARPU
per month Notes: SFR ARPU = gross service revenue excluding Roaming In and connection fees divided by average active customer base divided by 12 months. Active customer base as per SFR definition (active on the last month) 2000 A 2001 A 2002 last estimate Increasing ARPU Contract customers Prepaid c
Slide 13: Declining acquisition costs
2000 A 2001 A 2002 last estimate per gross addition Note: Annual variable acquisition cost per gross addition. Variable acquisition costs include dealer commissions, handset subsidies. Declining acquisition costs Contract customers Prepaid customers
Slide 14: The benefits of our loyalty policy: secured recurring revenues
The benefits of our loyalty policy: secured recurring revenues SFR is proactive towards their contract base 24 months contracts in conquest Program of re-engagement of contract customers by the promotion of new tariffs and options 65% of the SFR contract base is tied up by contract 13 months of aver
Slide 15: The best value creation
The best value creation Notes: EBITDA margin as % of total revenues Source: Operators
Slide 16: Capex control
Capex control Capex are carefully managed GSM/GPRS network roll-out is being completed subject to demand A cautious approach to UMTS Ability to pay suppliers cash resulting in a strong negotiating position Suppliers' credits have been fully repaid in 2002 This policy is not harming the quality: SFR
Slide 17: SFR: a strong cash flow generator
SFR: a strong cash flow generator Note: Pre-tax Operating FCF : Ebitda - Capex + WC variation - financing net costs SFR cash conversion SFR net debt
Slide 18: A strong performance
A strong performance A strong position as Number 2 player in the French Market Increasing market share (35%) Well ahead of Bouyques Telecom (15%) A sustained revenue growth of 8% over year (2002 LE vs. 2001 A full year) Driven by SFR higher ARPU of 36.6 vs. 30.8 for Orange Data services providing ad
Slide 19: Groupe Cegetel Fixed
groupe cegetel Mi i 114602 -page 20
Slide 20: Cegetel: the strongest alternative player in France
Cegetel: the strongest alternative player in France Source: Companies annual reports 2001 and press releases, Cegetel
Slide 21: Cegetel: the sole global alternative operator
Cegetel: the sole global alternative operator The sole global alternative player in France Cegetel targets the profitable market/products segments Cegetel follows a value creation strategy A strong market position to date 3.1 M residential and SOHO customers (1 home out of 10, 1 SOHO out of 5) The l
Slide 22: A sustained revenue growth
A sustained revenue growth Sustained growth in customer base + 19% ~ + 20% Sustained growth in voice volumes LD, F/M Local + 37% x 2 + 61% ~ +20% In M lines In Bn Min Sustained growth in revenues In M
Slide 23: The future drivers for growth
The future drivers for growth New tariff bundles and options for residential customers To increase loyalty on the existing base To attract new customers Broadband Internet for residential and SOHO customers The only growing market segments in the 3 coming years A natural complement to the existing o
Slide 24: Cegetel: a success story
Cegetel: a success story Cegetel aggregated fixed activities are Ebitda positive as from 2002 The residential segment was Ebitda positive in 2001 Cegetel aggregated fixed activities will reach Free Cash Flow break- even in early 2004 Note: Operating FCF : Ebitda - Capex + WC variation - financing ne
Slide 25: Also a success story as wireline operator
Also a success story as wireline operator Strong momentum of improving financial performance in fixed line operations Residential division EBITDA breakeven since 2001 2002 EBITDA losses expected to contract 3-fold vs. 2001 Improving competitive dynamics First alternative operator to propose local ca
Slide 26: Groupe Cegetel Consolidated Results
groupe cegetel Hi i 114802 -page 27
Slide 27: Cegetel Groupe financial prospects
Cegetel Groupe financial prospects Cegetel Groupe financial prospects
Slide 28: Cegetel Groupe financial prospects
Cegetel Groupe financial prospects Cegetel Groupe financial prospects
Vivendi Universal — Investor Presentation (November 2002) on 6ix