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Vivendi — Investor Presentation (October 2009)
38 slides from Vivendi's investor presentation, October 2009
Slide 1: Investor Presentation
Investor Presentation October 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: 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 necessary resources to facilitate innovation and organic g ggrowth Buy out minorities at the right
Slide 3: Vivendi's focus on new products and services should deliver additional growth
Vi di’ ffocus on new products Vivendi’s d t andd services i should deliver additional growth 70% of sales from subscriptions, 64 million subscriptions worldwide Increased customer demand for interactive services and products p Ideally positioned to capture digital growth Strong innovation track reco
Slide 4: Innovation to drive growth: subscriptions, digital, ARPU
I Innovation ti tto ddrive i growth: th subscriptions, b i ti di digital, it l ARPU Increase Expand Grow subscriptions x digital revenues x ARPU & ASP More Growth Investor Presentation – October 2009 4
Slide 5: GVT Opportunity
GVT Opportunity Enter one of the largest consumer markets in the world Invest in the fastest growing fixed and internet alternative telecom operator in Brazil, with considerable growth potential in partnership with best-in-class entrepreneurs Continuity with Vivendi’s telecom know-how and potential
Slide 6: We are faring well in the crisis: its impact on our performance is real but limited
We are faring well in the crisis: its impact on our performance is real but limited Our subscription subscription-based 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
Slide 7: Focus in H1 2009
F Focus iin H1 2009 2009: G Grow our bbusinesses i in a challenging environment Strong commercial performances: Increased subscriptions: • SFR enjoyed very strong net adds in mobile and ADSL • Canal+ France’s portfolio increased by 94k yoy • World of Warcraft’s Western subscriber base grew yoy • Mar
Slide 8: H1 2009 Results
H1 2009 Results R lt Revenues: €13.2 bn +17.0% EBITA: €2.9 bn +12.9% Adjusted Net Income: €1.5 bn +0.9% Investor Presentation – October 2009 8
Slide 9: We confirm our 2009 outlook
W confirm We fi our 2009 outlook tl k We maintain our guidance of strong EBITA growth, and solid Adjusted Net Income leadingg to another strongg dividend,, with a distribution rate of at least 50% Investor Presentation – October 2009 9
Slide 10: 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 Benefit from the global transition to digital by creating and
Slide 11: 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 – October 2009
Slide 12: First half 2009 results
vivendi First half 2009 results
Slide 13: H1 2009 Results
H1 2009 Results R l Revenues: €13,178 m +17.0% EBITA EBITA: €2 899 m €2,899 12 9% +12.9% Adjusted Net Income: €1,467 m + 0.9% CFFO before Capex: €3,204 m +4.5% CFFO: €1,841 m -10.9% Net Debt: €8.5 bn as of 30/06/2009 Investor Presentation – October 2009 13
Slide 14: EBITA up 13%
EBITA up 13% In euro millions - IFRS Change at H1 2009 H1 2008 Change constant currency Activision Blizzard 373 92 x 4.1 x 3.6 Universal Music Group 211 259 - 18.5% - 23.1% SFR 1,296 1,340 - 3.3% - 3.3% Maroc Telecom Group 586 584 + 0.3% - 1.8% Canal+ Group 472 351 + 34.5% + 36.4% Holding & Corporat
Slide 15: Cost control and synergies in each of our businesses
C t control Cost t l andd synergies i iin eachh off our bbusinesses i Cost control Continuous rationalization of our cost structure Contingency plans have been implemented Significant synergies being delivered on target Canal+ Group has exceeded the targeted €350m post-TPS merger synergies Activisio
Slide 16: Adjusted Net Income
Adj sted Net Income Adjusted In euro millions - IFRS Change Full consolidation of Neuf Cegetel since H1 2009 H1 2008 % April 15, 2008, and lower contribution from NBC Universal Revenues 13,178 11,268 + 1,910 + 17.0% EBITA 2,899 2,567 + 332 + 12.9% Impact of Neuf Cegetel and Activision acquisitions q
Slide 17: CFFO before Capex
CFFO before b f Capex C In euro millions - IFRS H1 2009 H1 2008 Change Activision Blizzard 384 129 x3 Universal Music Group (7) 235 nm SFR 1,926 2,007 - 4.0% Maroc Telecom Group 711 696 + 2.2% Canal+ Group 126 21 x6 Dividends from NBC Universal 171 142 + 20.4% Holding / Others (107) (165) nm Total C
Slide 18: CFFO
CFFO In euro millions - IFRS H1 2009 H1 2008 Change Activision Blizzard 367 115 x 3.2 Universal Music Group (23) 224 nm SFR 972 1,347 -27.8% Maroc Telecom Group 485 507 -4.3% % Canal+ Group (22) (102) nm Dividends from NBC Universal 171 142 + 20.4% Holding / Others (109) (167) nm Total Vivendi 1,841
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 June 30, 2008 after Capex paid and other minorities shareholders other 2009 nm* (0.7) (0.7) (8.3) +1.8 (0.6) (8 5) (8.5) Including
Slide 20: SFR #1 in mobile net adds
SFR #1 in mobile net adds Postpaid net adds market share Very good commercial results, in particular in postpaid, with 39% net adds market share 45% 39% 40% In H1 2009, net growth by +559k mobile customers, of 35% 35% 32% 31% which +466k postpaid customers 30% 26% 25% 25% Success of iPhone: 280k uni
Slide 21: Continuation of excellent broadband Internet results
C ti ti off excellent Continuation ll t broadband b db d IInternet t t results lt SFR leader in ADSL net adds in Q2 with 33% market share despite increased competition ADSL net adds market share 32% 33% Continued success of the "neufbox by SFR" launched in 35% 29% October 2008 30% In H1 2009, ADSL c
Slide 22: SFR: Mobile and Broadband Internet & Fixed
Mobile: strong commercial investments Revenues of €4,442m, +0.6% due to data revenues (+34%), despite adverse economic conditions (decrease in roaming traffic and out of bundle usage) In euro millions - IFRS H1 2009 H1 2008 Change EBITDA of €1,677m (-€110m): Revenues 6,140 5,289 + 16.1% • Strong com
Slide 23: SFR H2 2009 and Full year 2009 outlook
H2 2009 Monitoring of variable commercial investments (Opex / Capex) in growth 31% decrease in Mobile Termination Rates from July 1, 2009 St Strong control t l off non-variable i bl OOpex Continued decrease in mobile capex to sales ratio Full year 2009 outlook Mobile: Services revenues: Slight decre
Slide 24: Canal+ Group: First half 2009 key results
First half 2009: Key results Constant H1 2009 H1 2008 Change g currency Total Canal+ Group portfolio 11,821 11,437 +384 (000’s subscriptions) o.w. Canal+ France 10,436 , , * 10,342 +94 o.w. Poland 1,385 1,095 +290 Revenues (in millions of euros) e ros) 2 258 2,258 2 254 2,254 +0 2% +0.2% +1 9% +1.9%
Slide 25: Canal+ Group: Highlights and recent events
Highlights and recent events Unprecedented ratings on encrypted and free-to-air programs; Canal+ advertising revenues growth Historical Audience ~4 millions unique visitors on canalplus.fr Success of recent StudioCanal movies in theatres (“Coco”, “Le Code a changé”…) Key contents Champions League, E
Slide 26: Canal+ Group H2 2009 and Full year 2009 outlook
H2 2009 L Launch h off new offers: ff “I “Initial” iti l” ffor CanalSat C lS t andd “Pass “P week-end” k d” for f C Canal+ l Launch of new HD channels Reinforcement of partnerships with ISPs Accelerated migration from analog to digital New offer in Vietnam to be launched 1st international production
Slide 27: Maroc Telecom Group: Revenues €1,305m, EBITA €586m
Revenues: €1,305m, +4.1% Solid S lid performance f ddespite it more challenging h ll i economic climate with strong growth of African Constant subsidiaries H1 2009 H1 2008 Change In euro millions - IFRS currency Revenues 1,305 1,254 + 4.1% + 2.0% Mobile 936 891 + 5.1% % + 2.7% % Fixed and Internet 5
Slide 28: Maroc Telecom H2 2009 and Full year 2009 outlook
H2 2009 Challenging economic and competitive climate, in addition to regulatory impact in Morocco Focus on segmentation, customer relations and abundance Increasing profitability of African subsidiaries Full consolidation of Sotelma Full year 2009 outlook* Revenue growth: around 2% in Dirhams EBITA
Slide 29: Universal Music Group: Revenues of €2,009m, EBITA of €211m
Revenues of €2,009m Digital g revenues upp 29% and accountingg for Constant approximately 28% of recorded music revenues In euro millions - IFRS H1 2009 H1 2008 Change currency Higher music publishing and merchandising Revenues 2,009 2,044 - 1.7% -5.3% revenues EBITA excl. restructuring costs 248 28
Slide 30: UMG H2 2009 and Full year 2009 outlook
H2 2009 Strongg release schedule*: Lil Wayne, y , Bon Jovi,, Mika,, Mariah Carey, y, Maryy J Blige, g , Rihanna, Jack Johnson, Kanye West, Snow Patrol, Take That Continued emphasis on rationalization and cost controls Full year 2009 outlook EBITA: Decrease due to more challenging music market condit
Slide 31: Activision Blizzard: IFRS revenues of €1,493m
IFRS revenues of €1,493m , Constant Continued sales of Call of Duty, Guitar Hero and In euro millions - IFRS H1 2009 H1 2008 Change currency World of Warcraft franchises Revenues 1,493 444 x 3.4 x 3.0 #1 Third Partyy ppublisher* in North America in H1 EBITA 373 92 x 4.1 x 3.6 2009 Western World of W
Slide 32: Activision Blizzard: H2 2009 releases and outlook
Strong lineup of releases in H2 2009 2009* Guitar Hero 5, Marvel Ultimate Alliance 2, Wolfenstein, DJ Hero, Band Hero, Bakugan Battle Brawlers, Blur, Tony Hawk: Ride, Modern Warfare Wii, Modern Warfare 2 U.S. non-GAAP Financial Outlook** New CY 2009 Net Revenue $4.5bn EPS $0 63 $0.63 * This is a sel
Slide 33: Vivendi 2009 outlook
Vivendi 2009 outlook We maintain our guidance of strong EBITA growth, and solid Adjusted Net Income leadingg to another strongg dividend,, with a distribution rate of at least 50% Investor Presentation – October 2009 33
Slide 34: 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 35: 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 36: 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 37: 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 38: Important legal disclaimer
Important legal disclaimer 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 of operations, business, strategy, plans and outlook of Vivendi. Although Vivendi believes that such forward-looking