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Vivendi — Vivendi Universal — Deutsche Bank 13th Annual Media Conference (June 2005)
39 slides from Vivendi's conference presentation, Jun 8, 2005
Slide 1: Vivendi Universal: A Growth Media & Telecom Company with an Attractive Yield
Vivendi Universal: "A Growth Media & Telecom Company with an Attractive Yield" Jacques Espinasse Member of the Management Board & Chief Financial Officer IMPORTANT NOTICE: INVESTORS ARE STRONGLY URGED TO READ THE IMPORTANT LEGAL DISCLAIMER AT THE END OF THIS PRESENTATION Deutsche Bank 13th Annual Me
Slide 2: VU Operates Leading Media & Telecom Assets
VU Operates Leading Media & Telecom Assets Mobile / Fixed line Mobile / Fixed line Networks / Cable / Film / Parks Pay-TV / Film Music Video Games Games Games 92% 99% 100% 100% 56% 51% 20% * * 20% controlling interest and a 18.5% ownership interest Movie Library
Slide 3: An Appropriate Structure to Operate VU Assets
An Appropriate Structure to Operate VU Assets Supervisory Board Jean-Rene Fourtou - Chairman Management Board Jean-Bernard Levy - C.E.O. Abdeslam Ahizoune (Maroc Telecom), Jacques Espinasse (Chief Financial Officer Vivendi Universal), Frank Esser (SFR Cegetel Group), Bertrand Meheut (Canal+ Group),
Slide 4: Simplification and Refocusing of the Group While Investing for the Future
Simplification and Refocusing of the Group While Investing for the Future Since July 2002, Vivendi Universal has disposed of about 90 assets worth a total of €22 billion ... .... and has spent approximately €11billion on accretive acquisitions: 26% of Cegetel (January 2003, €4 billion) to hold 56% o
Slide 5: Vivendi Universal: Success Factors
Vivendi Universal: Success Factors Media and Telecommunications continue to experience stronger growth than other economic sectors; Each business is either N°1 or N°2 in its key market; It benefits from important drivers of organic growth within each business; Our businesses are distinct but bear st
Slide 6: Vivendi Universal: A Coherent Group
Vivendi Universal: A Coherent Group Creation and development of brands and talent Marketing and distribution networks, customer loyalty, interactive services Management of investment and technological innovation Content Content Platform and subscribers management Networks
Slide 7: Universal Music Group
Universal Music Group Eminem, U2, Shania Twain each sold between 5 and 9 million albums in 2004 28 Grammy(r) Awards won in 2004 5% increase in revenues at constant currency in 2004 Worldwide market share gain (estimated at 24.6% vs. 23.5% in 2003) Success of the cost reduction plan Gain of 5.4 point
Slide 8: Vivendi Universal Games
Vivendi Universal Games Tremendous success of World of Warcraft: ~1.5m subscribers at end of March 2005 Return to a profitable position Growth in revenues by 47% in the 1st quarter 2005 Acquisition in 2005 of Radical and Swingin' Ape Studios, 2 game development studios focused on consoles Successful
Slide 9: CANAL+ Group
CANAL+ Group Exclusive rights to the French League 1 soccer for 2005-2008 New agreement with the French cinema and renewal of agreements with US majors Launch of CANAL+ Le Bouquet, the new Premium digital offer Launch of TV over DSL offers and 5 DTT licenses awarded Net growth in subscriptions at th
Slide 10: StudioCanal
StudioCanal Restructuring of the activity, allowing it to reach €40m in operating income Implementation of rigorous green lighting investment procedures Box office successes: Podium, Bridget Jones 2, ... Commercial success of DVDs: L'Integrule 1 et 2, De Caunes et Garcia, ... Investments in promisin
Slide 11: SFR Cegetel
SFR Cegetel 1st to launch 3G services in France SFR: 3m subscribers to Vodafone Live! as of May 31, 2005 Strong increase in non voice revenues in 2004: +40% YoY Leadership on net mobile customer growth in France at 38.2% in 2004 5 agreements signed with mobile virtual operators Growth in operating i
Slide 12: Cegetel and neuf Telecom Merger Plan
Cegetel and neuf Telecom Merger Plan Creation of the leading alternative operator for fixed telecommunications services in France After having acquired SNCF's 35% stake in Cegetel, SFR will contribute 100% of Cegetel to neuf Telecom and will receive in exchange (*) 28% of "neuf Cegetel" (same stake
Slide 13: Maroc Telecom
Maroc Telecom Increase in VU's stake in Maroc Telecom to 51% Success of Maroc Telecom's initial public offering at the end of 2004 Growth in mobile clients by 22% in 2004 Strong mobile market share maintained at 68% in 2004 Successful take-off of DSL Operating margin at 41% in 2004 Grow mobile penet
Slide 14: 20% control of NBC Universal
20% control of NBC Universal Creation of NBC Universal in May 2004: diversifies revenue sources and increases global scale Successful integration of companies NBC back to American football Strong growth in ratings and profitability of cable channels Increased attendance in theme parks High quality 2
Slide 15: Simplification of NBCU structure
80% 20% VUE 94.56% 5.44% 56.6m IACi shares (as collateral to Pref. B) Pref. A & B 80% VUE 100% (common and preferred A & B interests) PREVIOUS STRUCTURE NEW SIMPLIFIED STRUCTURE Treasuries (as collateral to Pref. A) Simplification of NBCU structure Significant commitments to IACi and NBCU MEI Univer
Slide 16: Vivendi Universal: Where Will Future Growth Come From?
Vivendi Universal: Where Will Future Growth Come From ? Media and Telecommunications have experienced stronger growth than other economic sectors All our businesses benefit from the potential for significant growth: Development of multimedia services on mobile handsets Pay-TV penetration in France G
Slide 17: Vivendi Universal: The Means of a Sustainable Performance
Vivendi Universal: The Means of a Sustainable Performance Growth potential in all our businesses Shared projects create a competitive advantage An experienced management team, shared professional references, collegiality within the Management Board One priority: organic growth Being part of the Vive
Slide 18: 2001-2004 Evolution of Adjusted Earnings per share
2001 2002 2003 2004 Est -0.1 -0.47 0.33 1.29 1.14 2001-2004 Evolution of Adjusted Earnings per share French GAAP In euros per share 2001 €1,380 m €1,309 m €349 m - - €0.47 - - €0.10 Weighted average common shares outstanding (in millions) 1,004.8 1,087.4 1,071.7 1,072.1 1,144.4 2002 2003 2004 2004 I
Slide 19: Reduction in Financial Net Debt
Reduction in Financial Net Debt € billion and French GAAP 2001 2002 37.1 12.3 11.6 2003 3.1 2004 After the purchase of BT's stake in Cegetel for €4b. Before the purchase of an additional 16% stake in Maroc Telecom Promotion to Investment grade by the 3 rating agencies: Moody's, Standard & Poor's and
Slide 20: 2005 Adjusted net income growth target
2005 Adjusted net income growth target: 2005 Guidance In IFRS In millions of euros 2004 2005 Est 1309 1850 2005 2004 ^ +37% €1,309 m ^ €1,800 m EPS from €1.14 ... .... to at least €1.57 DPS from €0.60 ... .... to at least €0.82
Slide 21: Vivendi Universal: A Commitment Through Time
Vivendi Universal: A Commitment Through Time 2005 Adjusted net income: a minimum of €1,800 m, i.e. +37% vs. 2004 (in IFRS) Combining dividend yield and growth, with an attractive pay-out ratio Exceed €2 bn in profits in 2006
Slide 22: Appendices
Appendices — VIVENDI BS) |O} a | UNIVERSAL bevische Bank 13% Media Conference —June 8, 2008 22
Slide 23: 2004 Key Financial Achievements
Figures as published, except when specified 2004 Key Financial Achievements 1,380 349 Adjusted net income 754 * (1,143) Net income (loss) 2,451 3,117 2004 +62% 1,514 Proportionate cash flow from operations (comparable basis) +41% 2,216 Operating income (comparable basis) Growth (%) 2003 French GAAP
Slide 24: 2004 Revenues on a comparable basis
2004 Revenues on a comparable basis Revenues: €18,893 m + 5% Groupe Canal + UMG VU Games SFR Cegetel Maroc Telecom Est 3470 4993 475 8317 1658 9% 44% 3% 18% 26% 2004 Revenues by business* (in €m) * Excluding non core operations and elimination of intercompany transactions French GAAP In millions of
Slide 25: 2004 Consolidated Cash flow from operations growth
2003 2004 Publie 2976 4023 Base comparable 1395 724 2004 Consolidated Cash flow from operations growth UMG VU Games Canal+ Group SFR Cegetel Maroc Telecom Holding & Corporate Actifs non strategiques 2003 463.1 -200.3 134.4 2153.4 685.7 -241.8 -18 2004 754.7 -17.8 676.2 2240.6 722.6 -386.9 33 In 2004
Slide 26: Net available cash flow at VU S.A. level in 2004
Net available cash flow at VU S.A. level in 2004 In millions of euros 2004 2003 Consolidated cash flow from operations 4 747 4 371 - Cash income tax (580) (1 242) - Cash financial expenses (430) (621) Other (266) 194 Net consolidated cash flow 3 471 2 702 - SFR Cegetel's and Maroc Telecom's net cash
Slide 27: Financial net debt evolution in 2004
Financial net debt evolution in 2004 Dec 31 2003 Cash flow from operations Cash interest & tax Dividends paid to minorities Acquisitions Divestitures Other debt adjustments including foreign currency translation Dec 31 2004 French GAAP In billions of euros 12/31/2003 CFFO Interest & Taxes Dividends
Slide 28: First Quarter 05 Group Earnings
Figures as published, except when specified First Quarter 2005 Group Earnings € million - Under IFRS Q1 2004 Q1 2005 % Growth Revenues (comparable basis) 4,391 4,716 +7% Earnings from operations (comparable basis) 697 849 +22% Net income 166 502 +202% Adjusted net income 160 512 +220% Cash flow from
Slide 29: First Quarter 2005 Revenues & Earnings from operations by Business Units
Figures on a comparable basis First Quarter 2005 Revenues & Earnings from operations by Business Units € million - Under IFRS Revenues Q1 2004 Q1 2005 % Growth at constant currency Universal Music Group 933 1,038 +14% Vivendi Universal Games 77 113 +52% CANAL+ Group 824 836 +1% SFR Cegetel 2,182 2,3
Slide 30: Universal Music Group 2004 Financials and 2005 Guidance
Universal Music Group 2004 Financials (French GAAP - Comparable basis): 2004 vs. 2003 Revenues: € 4,993m +5% Operating income: € 338m x5 2005 Guidance (French GAAP): Revenues: "Generally perform in line with the industry" Operating margin: "Grow to 7%-9%"
Slide 31: Vivendi Universal Games 2004 Financials and 2005 Guidance
2004 Financials (French GAAP - Comparable basis): 2004 vs. 2003 Revenues: € 475m -11% Operating income: € (183)m Flat 2005 Guidance (French GAAP): Revenues: "Above € 500 million" Operating income : "Between € 30m and € 50m" Vivendi Universal Games
Slide 32: CANAL+ Group 2004 Financials and 2005 Guidance
CANAL+ Group 2004 Financials (French GAAP - Comparable basis): 2004 vs. 2003 Revenues: € 3,470m +4% Operating income : € 184m +94% 2005 Guidance (French GAAP): Revenues: "Approximately € 3.3 billion, due to reduction in scope" Operating margin: "Approximately 4.5%"
Slide 33: SFR Cegetel 2004 Financials and 2005 Guidance
SFR Cegetel 2004 Financials (French GAAP - Comparable basis): 2004 vs. 2003 Revenues: € 8,317m +10% Operating income: € 2,257m +15% 2005 Guidance (French GAAP): Revenues: "+3% to +5% excluding mobile-to- mobile billing" Operating income: "+3% to +5% for SFR Cegetel +6% to +9% for SFR (mobile)"
Slide 34: Maroc Telecom 2004 Financials and 2005 Guidance
Maroc Telecom 2004 Financials (French GAAP - Comparable basis): 2004 vs. 2003 Revenues: € 1,658m +11% Operating income : € 682m +8% 2005 Guidance (French GAAP - In dirham): Revenues: "+5% to +7% growth" Operating income: "+5% to +7% growth"
Slide 35: NBC Universal 2004 Financials and 2005 Guidance
NBC Universal 2004 Financials (US GAAP - Actual figures): 2004 vs. 2003 Revenues*: $ 12.9bn +88% Operating profit*: $ 2.6bn +28% 2005 Guidance (US GAAP): Revenues*: "Grow +10% to +15% to approximately $ 14.8 billion" Operating profit*: "Increase by more than 25% to approximately $ 3.3 billion" Divid
Slide 36: IAC to exit from VUE: Overview
IAC to exit from VUE: Overview NBC Universal structure simplified IAC has sold its 5.44% common interest and its preferred equity interest (preferred A and preferred B) in VUE to NBCU NBCU (80%-owned by GE and VU controls 20%) to own 100% of VUE Elimination of commitments and contingencies IAC and V
Slide 37: Impact on VU's Financial Statements
Net amount paid in cash is $235 million, ^ €191 million Preferred B annual cash coupon obligation ~ $30m through 2022 canceled Unwind results in a net gain of ^ €198 million Projected Net Financial debt to increase by ^ €191 million Other non-current liabilities reduced by ^ €257 million Net cost of
Slide 38: NBCU purchases IAC's 5.44% of VUE
NBCU purchases IAC's 5.44% of VUE VU injects $160 million of capital to fund buyout Preferred A equity interest (collateralized with US treasury bonds) VU pays $865 million VU pays $75 million to NBCU VU monetizes preferred A collateral and other cash collateral valued at $1,074 million, net benefit
Slide 39: Forward-looking statements disclaimer
This Presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements and business str
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