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Vivendi — Investor Presentation (October 2010)
31 slides from Vivendi's investor presentation, October 2010
Slide 1: Investor Presentation October 2010
Investor Presentation October 2010 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: Vivendi: Group profile
Vi di G Vivendi: Group profile fil Vivendi is at the heart of the worlds of content, platforms and interactive networks Ideally positioned to capture growing demand from consumers for mobility, broadband and digital content ¾ 73 million subscriptions representing 75% of sales in 2009 49,000 49 000 e
Slide 3: Vivendi is ideally positioned to capture growing demand
Vivendi Vi di is i ideally id ll positioned iti d to t capture t growing i ddemandd from consumers for mobility, broadband and digital content and services New technologies enable consumers, wherever they are, to access a multitude of interactive services and the Internet Vivendi is a major player i
Slide 4: Vivendi: Key figures (FY 2009)
Vi di K Vivendi: Key fifigures (FY 2009) Revenues: €27,132m EBITA: €5 390m €5,390m Cash Flow From Operations: €5,237m Adjusted Net Income: €2,585m Cash dividend paid on May 11, 2010: €1,721m (€1.40 per share) Market Capitalization*: €24.8bn ($33.8bn) * Closing price: €20.05 per share as of September
Slide 5: Another year of record results in 2009
Another A th year off recordd results lt iin 2009 2009, lleading di tto a record dividend distribution of €1.7bn in cash (€1.40 per share) EBITA CFFO 5,237 +9% p.a. CAGR 5,390 +4% p.a. CAGR 5,055 4,881 4,953 4,721 4,466 4,354 4,370 4,157 3,985 EUR millioons , IFRS EUR millions , IFRS 3 504 3,504 200
Slide 6: Vivendi fully controls the businesses it operates
Vi di fully Vivendi f ll controls l the h bbusinesses i iit operates 100% 59%* 56% #1 worldwide in #1 alternative telecom #1 worldwide video games in France in music 53%* 100% 100% / 80% #1 in telecom #1 alternative telecom in Morocco #1 in ppay-TV y in Brazil in France * Based on shares outstanding
Slide 7: GVT: Performance well above acquisition business plan
GVT: Performance well above acquisition business plan leading to another upgrade in 2010 guidance Outstanding commercial performance as of June 30, 30 2010: ¾ 2.4 million Retail & SME lines in services, up 52% compared to June 30, 2009, including 887k Broadband lines, up 64% vs. June 30, 2009 ¾ 51%
Slide 8: GVT: Accelerated development plan
GVT A GVT: Accelerated l t d ddevelopment l t plan l New acceleration of investments in network deployment in 2010 and 2011 (investment plan of BRL1.5bn in 2010 vs. BRL1.1bn previously and BRL850m initially budgeted) in order to accelerate l coverage off Regions R i I andd III, III including i l di
Slide 9: Vivendi's innovations have driven commercial performance
Vi di’ innovations Vivendi’s i ti hhas ddriven i commercial i l performance f Major initiatives over the last 18 months… SFR: launch of iPhone, quad play, family packs, SIM-only offers, accelerating mobile internet penetration UMG: launch of VEVO, a premium music video service, confirmed as the #1 m
Slide 10: Class Action: Significant reduction in potential damages
Cl Class Action: A ti Significant Si ifi t reduction d ti iin potential t ti l damages d ffor Vi Vivendi di On June 24, 24 2010, 2010 the United States Supreme Court ruled that shareholders have no recourse under American securities law against Foreign companies for any stock transactions that occur
Slide 11: Vivendi enjoys a strong financial position
Vi di enjoys Vivendi j a strong t fifinancial i l position iti €3.9bn of undrawn credit lines at Vivendi SA at end June 2010 No significant debt reimbursement before 2012 Committed to BBB rating*, g and remainingg unchanged g after FY2009 earnings g release including €550m class action provision Con
Slide 12: Focus on capital allocation to maximize shareholder returns
F Focus on capital it l allocation ll ti to t maximize i i shareholder h h ld returns t We confirm our priority to pay our shareholders a very high dividend (currently €1.40 and to be maintained for fiscal year 2010) and reiterate our permanent commitment to deliver dividends with a distribution rat
Slide 13: 2010: Excellent first half results and improved full year outlook
2010 Excellent 2010: E ll t fifirstt hhalflf results lt andd iimprovedd full f ll year outlook tl k In first half 2010, all Vivendi financial indicators are up: ¾ Revenues: €13,982m +6.1% ¾ EBITA: €3,243m +11.9% ¾ Adjusted Net Income: €1,526m +4.0% ¾ CFFO excluding acquisition of 3G spectrum by SFR:
Slide 14: New upgrade of 2010 guidance
New upgrade N d off 2010 guidance id for Activision Blizzard, SFR Broadband & Fixed and GVT Guidance vs. May 2010 EBITA above €630m (vs above €620m) Ò Slightly upgraded Double digit EBITA margin 9 Confirmed Mobile: Slight decrease in EBITDA 9 Confirmed Broadband & Fixed: Double digit increase in EBI
Slide 15: Our ambition: offering the best to the digital generation
Our ambition: offering the best t the to th di digital it l generation ti #1 Video Games Worldwide #1 #1 Music Video Games Worldwide Worldwide #1 #1 Alternative Music Telecoms France Worldwide Vivendi is at the heart #1 #1 Telecoms of the worlds Alternative TelecomsMorocco France of content, content
Slide 16: H1 2010 earnings
vivendi H1 2010 earnings
Slide 17: Outstanding results for the 1st half 2010
O t t di results Outstanding lt ffor the th 11stt half h lf 2010 Revenues: €13,982m , + 6.1% % EBITA: €3,243m + 11.9% Adjusted Net Income: €1 526m €1,526m + 4.0% 4 0% CFFO excluding acquisition of 3G spectrum by SFR*: €1,972m +7.1% N t ddebt: Net bt €11 5b €11.5bn as off JJune 30 30, 2010 * Investme
Slide 18: Significant increase in EBITA
Si ifi t iincrease iin EBITA Significant In euro millions - IFRS Change at H1 2010 H1 2009 Change constant currency Activision Blizzard 620 373 + 66.2% + 65.5% Universal Music Group 159 211 - 24.6% - 28.0% SFR 1,368 1,296 + 5.6% + 5.6% Maroc Telecom Group 596 586 + 1.7% + 1.8% GVT 98 - Canal+ Group
Slide 19: Adjusted Net Income
Adj t d N Adjusted Nett IIncome In euro millions - IFRS H1 2010 H1 2009 Change % Incl impact of GVT acquisition Incl. Revenues 13,982 13,178 + 804 + 6.1% Incl. reduced benefit from EBITA 3,243 2,899 + 344 + 11.9% utilization of Neuf Cegetel’s tax losses by SFR Income from equity affiliates 75 71 +4
Slide 20: Solid Cash Flow generation
S lid Cash Solid C h Fl Flow generation ti CFFO before capex CFFO H1 2010 H1 2009 Change In euro millions - IFRS H1 2010 H1 2009 Change 217 384 - 43.5% Activision Blizzard 186 367 - 49.3% Including purchase of 14 (7) Universal Music Group 1 (23) 3G spectrum 2,020 1,926 + 4.9% SFR 824 972 - 15.2% for
Slide 21: Financial net debt
In euro billions- IFRS Fi Financial i l nett ddebt bt evolution l ti Dividends Dividends Net financial December 31, CFFO Interest & tax paid to paid to investments and June 30, 2009 after Capex paid and other minorities shareholders other 2010 (0.6) (0.9) (9.6) + 1.7 (1.7) Including: Including: Incl
Slide 22: Activision Blizzard: Revenues €1,703m, EBITA €620m
In euro millions Constant H1 2010 H1 2009 Change IFRS currency Revenues: €1,703m, €1 703m +14% Revenues 1,703 1,493 + 14.1% + 12.8% Continued strong global demand for Call of Duty and World of Warcraft with strong growth in digital revenues EBITA 620 373 + 66.2% + 65.5% Call of Duty #1 first first-p
Slide 23: Universal Music Group: Revenues €1,900m, EBITA €159m
Revenues: €1,900m, €1 900m -5.4% -5 4% In euro millions - IFRS H1 2010 H1 2009 Change Constant currency Recorded music sales declined 7.3% Revenues 1,900 2,009 - 5.4% - 7.9% ¾ Fewer major releases (U2 in 2009) EBITA 159 211 - 24.6% - 28.0% ¾ Reduced demand for pphysical y pproduct o/w restructuring
Slide 24: SFR: Mobile services revenues and EBITDA
Mobile services revenues: +5.3% excl. regulatory impact* SFR #1 in postpaid net adds in H1 with ith 540k new ne mobile subscribers s bscribers In euro millions - IFRS Postpaid customer base +9.2% H1 2010 H1 2009 Change Data revenues growth +18% Revenues 6,248 6,140 + 1.8% Mobile 4,430 4,442 - 0.3% B
Slide 25: Maroc Telecom Group: Revenues €1,382m, EBITA €596m
Revenues: €1,382m, €1 382m +5.9% +5 9% In euro millions - IFRS Constant H1 2010 H1 2009 Change Continued growth in mobile in Morocco currency Revenues 1,382 1,305 + 5.9% + 6.1% ¾ Increased customer base with significant decrease in churn Mobile 1,032 936 + 10.3% + 10.6% g level ¾ Stabilized ARPU at
Slide 26: GVT: Net Revenues BRL1,087m
Net Revenues: BRL1,087m BRL1 087m*, +39% I BRL millions* In illi * H1 2010 H1 2009 Change (+73% in EUR) Net revenues 1,087 782 + 39.0% Broadband service revenues up 73% and Voice revenues up 32% Gross income 709 505 + 40.4% 647k net adds in lines in services (LIS) (LIS), +57% yoy Adjusted EBITDA** 4
Slide 27: Canal+ Group: Revenues €2,327m, EBITA €486m
Revenues: €2,327m, €2 327m +3.1% +3 1% Pursued high portfolio growth at Canal+ France: +356k net adds In euro millions - IFRS H1 2010 H1 2009 Change Constant currency year-on-year ¾ Increase in gross adds and lower churn in metropolitan France Revenues 2 327 2,327 2 258 2,258 + 3.1% 3 1% + 2.3% 2 3%
Slide 28: Glossary
Glossary Gl 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
Slide 29: Activision Blizzard stand alone definitions
A ti i i Bli Activision Blizzardd – stand t d alone l - definitions d fi iti US Non-GAAP Financial Measures Activision Blizzard provides net revenues, net income (loss), earnings (loss) per share and operating margin data and guidance both including (in accordance with GAAP) and excluding (non-GAAP)
Slide 30: Investor Relations team
I Investor t Relations R l ti team t Jean-Michel Bonamyy 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 Third Avenue Phone: +33.1.71.71.32.80 New York, NY 10022 / USA Fax: +33.1.71.
Slide 31: Important legal disclaimer
I Important t t legal l l disclaimer di l i This presentation Thi t ti contains t i forward-looking f d l ki statements t t t with ith respectt to t the th financial fi i l condition, diti results lt off operations, business, strategy, plans and outlook of Vivendi, including expectations regarding t