Vivendi Se · EURONEXT:VIV
Vivendi — Q1 2014 Earnings Presentation
38 slides from Vivendi's earnings presentation, May 15, 2014
Slide 1: First Quarter 2014 Results
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 May 15, 2014 FIRST QUARTER 2014 RESULTS IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimers at the end of this presentation
Slide 2: Jean-Francois Dubos
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 JEAN-FRANCOIS DUBOS Chairman of the Management Board Chief Executive Officer
Slide 3: Strategic Highlights
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 STRATEGIC HIGHLIGHTS ■ Refocus on media & content completed ►Closing of Maroc Telecom disposal for €4.1 billion ►SFR disposal on track, for a total value in excess of €17 billion* ■ Sound financial structure restored ►Net cash position of €5 billion en
Slide 4: Digital and Emerging Markets Fueling Growth in Q1 2014
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 DIGITAL AND EMERGING MARKETS FUELING GROWTH IN Q1 2014 ■ Revenues up 2.0%* and EBITA up 2.8%* ■ Revenues from new growth opportunities up 7.8%* ►Benefit of growing exposure to content & digital ■ Revenues in fast growing markets up 7.9%* ►Benefit of gr
Slide 5: Herve Philippe
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 HERVE PHILIPPE Chief Financial Officer
Slide 6: Vivendi: Key 2013 Figures
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 VIVENDI: KEY 2013 FIGURES* Revenues: € 12.0 bn Organic growth: +1.7% Adjusted net cash end Q1 2014**: CFFO before capex: € 1.8 bn € 1.6 bn Capex: €1.0 bn BBB/Baa2 target EBITDA: € 2.2 bn EBITA: € 1.4 bn * Except where noted 6 ** Net cash estimated end
Slide 7: Vivendi: A Leading Player with a Global Reach
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 VIVENDI : A LEADING PLAYER WITH A GLOBAL REACH... “More people consuming more content on more devices across more markets than ever” Rest of the world 10% 25% of revenues Brazil France 15% 37% North America 17% Rest of Europe 21% FY2013 revenues, exclu
Slide 8: ... and Participating in Innovative Digital Models
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 ... AND PARTICIPATING IN INNOVATIVE DIGITAL MODELS 60% • Digital content producer ~13% • Premium headphones and music subscription service 100% • Music streaming in Brazil 47% • All-premium music video and entertainment platform 100% • SVOD service 94%
Slide 9: Key Financial Metrics Q1 2014
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 KEY FINANCIAL METRICS Q1 2014 Preliminary comment: in compliance with IFRS5, SFR qualifies as discontinued operations from Q1 2014 hence SFR earnings are reported as “Earnings from discontinued operations ”. This classification retrospectively applies
Slide 10: Growth Opportunities Up 7.8% and Representing 56% of Total Sales
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 GROWTH OPPORTUNITIES UP 7.8% AND REPRESENTING 56% OF TOTAL SALES % Revenues in underlying Q1 14 growth rate REVENUES 2,722 + 2.0% including GROWTH OPPORTUNITIES 1,530 + 7.8% 56% of sales up 7.8% Recorded music - Digital & Licence 512 + 3.2% GVT Telecom
Slide 11: Revenues
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 REVENUES Comparable Constant basis and In euro millions - IFRS Q1 2013 Q1 2014 Change currency constant currency * Canal+ Group 1,286 1,317 + 2.4% + 2.5% + 1.2% Universal Music Group 1,091 984 - 9.8% - 5.4% - 2.0% GVT 438 405 - 7.6% + 12.6% + 12.6% Oth
Slide 12: EBITA Up 2.8% on a Comparable Basis
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 EBITA UP 2.8% ON A COMPARABLE BASIS Comparable Constant basis and In euro millions - IFRS Q1 2013 Q1 2014 Change currency constant currency* Canal+ Group 183 175 - 4.7% - 4.7% - 5.5% Universal Music Group 55 56 + 2.0% + 12.7% + 72.5% GVT 99 83 - 16.5%
Slide 13: Adjusted P&L
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 ADJUSTED P&L In euro millions - IFRS Q1 2013 Q1 2014 Change % Revenues 2,826 2,722 - 104 - 3.7% EBITDA 492 429 - 63 - 12.8% EBITA 301 268 - 33 - 11.2% Income from equity affiliates (8) (6) +2 Income from investments 14 - - 14 Interest (80) (19) + 61 Pr
Slide 14: Consolidated Balance Sheet
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 CONSOLIDATED BALANCE SHEET In euro millions December March 31, December March 31, Assets Liabilities 31, 2013 2014 31, 2013 2014 (1) Goodwill 17,147 10,519 Consolidated equity 19,030 19,623 Intangible and tangible assets 15,619 7,113 Provisions 3,523 2
Slide 15: Net Cash Position Post Announced Disposals
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 NET CASH POSITION Announced Proposed distribution to Vivendi Net Cash POST ANNOUNCED DISPOSALS SFR disposal shareholders** March 31, 2014, Adjusted Discontinued operation Net Debt Net Debt Interest & Dec. 31, CFFO tax Reclassification March 31, before
Slide 16: Key Media & Content Success in Q1
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 KEY MEDIA & CONTENT SUCCESS IN Q1 UMG best sellers (selection) © Xavier Lahache Successful renewal of key sports rights in France: “Ligue 1” (football), “Champions’ League” and “Top 14” (rugby) StudioCanal movie: $200m+ revenues in box office HIGHLIGHT
Slide 17: Slight Top Line Growth Despite VAT Impact
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 SLIGHT TOP LINE GROWTH DESPITE VAT IMPACT Comparable basis and In euro millions - IFRS Q1 2013 Q1 2014 Change constant HIGHLIGHTS currency* Revenues 1,286 1,317 + 2.4% + 1.2% ■ Success in key sports rights renegotiation: ■ Ligue 1 football rights in Fr
Slide 18: Strong Performance with EBITA Up 72% in Q1
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 STRONG PERFORMANCE WITH EBITA UP 72%* IN Q1 Comparable basis and In euro millions - IFRS Q1 2013 Q1 2014 Change constant HIGHLIGHTS currency * Revenues 1,091 984 - 9.8% - 2.0% ■ Revenues down 2%* due to lower recorded music Recorded music 878 784 - 10.
Slide 19: Top Line Growth Acceleration in Q1 2014 vs Q4 2013
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 TOP LINE GROWTH ACCELERATION IN Q1 2014 VS Q4 2013 Comparable basis and In euro millions - IFRS Q1 2013 * Q1 2014 Change HIGHLIGHTS constant currency Revenues 438 405 - 7.6% + 12.6% ■ 12.6%** revenue growth mainly driven by Retail & SME 397 372 - 6.3%
Slide 20: Slowdown of Revenues and EBITDA Erosion
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 SLOWDOWN OF REVENUES AND EBITDA EROSION In euro millions - IFRS Q1 2013 Q1 2014 Change Revenues 2,594 2,443 - 5.8%* HIGHLIGHTS Retail 1,769 1,611 - 8.9% ■ Slowdown of revenues erosion with revenues B to B 464 427 - 8.0% down 5.8% in Q1 2014 after -9.6%
Slide 21: Conclusion
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 CONCLUSION ■ Vivendi now positioned as a Media & Content group ■ Good Q1 2014 earnings ■ Organic growth opportunities: content, digital, fast growing markets Vivendi is poised for future growth 21
Slide 22: Appendices
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 APPENDICES
Slide 23: Appendices: Details of Business Operations
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 APPENDICES Details of Business Operations
Slide 24: Canal+ Group Subscribers and KPIs
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 In '000 Mar. 31, 2013 Mar. 31, 2014 Change Group individual subscribers 10,169 10,419 + 250 Mainland France 6,037 6,037 - International 4,132 4,382 + 250 Poland 2,455 2,185 - 270 Overseas 480 486 +6 Africa 735 1,107 + 372 Vietnam 462 604 + 142 In '000
Slide 25: Universal Music Group Revenues and Best Sellers
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 Comparable Recorded Music Revenues Q1 2013 Q1 2014 basis and In euro millions - IFRS Q1 2014 Europe 38% 39% constant currency North America 41% 41% Recorded music 784 - 1.8% Asia 13% 12% Physical 273 - 10.0% Rest of the world 9% 8% Digital 383 + 5.9% L
Slide 26: GVT Operating Data
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 Mar. 31, 2013 Mar. 31, 2014 Change 1Q 2013 1Q 2014 In '000 In BRL millions - IFRS Change Retail & SME - Homes passed 9,557 10,747 + 12.5% Total Revenues 1,165 1,312 + 12.6% Retail & SME 1,055 1,205 + 14.2% Retail & SME - Revenue Generating Units 6,335
Slide 27: Appendices: Details for Discontinued Operations
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 APPENDICES Details for Discontinued Operations
Slide 28: Mobile - Group Data
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 MOBILE - GROUP DATA * Q1 2013 Q1 2014 Change Mobile Customers (in '000)* 20,626 21,293 + 3.2% Acquisition costs (in €m) 109 101 (8) Retention costs (in €m) 144 123 (21) RETAIL SEGMENT ** Q1 2013 Q1 2014 Change MOBILE Customers (in '000) *** 14,684 14,3
Slide 29: Highlights (in Dirhams)
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 In euro millions - IFRS Q1 2013 Q1 2014 Change Revenues 644 641 - 0.4% EBITDA 379 351 - 7.5% HIGHLIGHTS (in Dirhams) ■ Renewal of slight growth in revenues (+0.4%) ■ Strong growth in customer bases: +16.5%, to 39 million customers ■ Steady fixed-line g
Slide 30: Appendices: Detailed Vivendi Financial Results
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 APPENDICES Detailed Vivendi Financial Results
Slide 31: EBITDA
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 EBITDA Comparable Constant basis and In euro millions - IFRS Q1 2013 Q1 2014 Change currency constant currency Canal+ Group 248 236 - 5.2% - 5.2% - 7.1% Universal Music Group 101 80 - 20.9% - 14.3% + 5.6% GVT 176 158 - 10.2% + 9.5% + 9.5% Other (12) (1
Slide 32: Interest
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 INTEREST In euro millions (except where noted) – IFRS Q1 2013 Q1 2014 Interest (80) (19) Interest expense on borrowings (135) (86) Average interest rate on borrowings (%) 3.27% 2.83% Average outstanding borrowings (in euro billions) 16.4 12.2 Interest
Slide 33: Income Taxes
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 INCOME TAXES Q1 2013 Q1 2014 In euro millions – IFRS Adjusted Net income Adjusted Net income Net Income Net Income Tax savings related to the Vivendi SA's French Tax 17 69 26 (23) Group and Consolidated Global Profit Tax Systems Tax charge (74) (59) (8
Slide 34: Consolidated P&L
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 CONSOLIDATED P&L In euro millions - IFRS Q1 2013 Q1 2014 Change % Revenues 2,826 2,722 -104 - 3.7% EBITA 301 268 -33 - 11.2% Amortization and impairment losses on intangible assets (113) (89) acquired through business combinations Other income & charge
Slide 35: Appendices: Glossary & Disclaimer
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 APPENDICES Glossary & Disclaimer
Slide 36: Glossary
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 GLOSSARY Adjusted earnings before interest and income taxes (EBITA): As defined by Vivendi, EBITA corresponds to EBIT (defined as the difference between income and charges that do not result from financial activities, equity affiliates, discontinued op
Slide 37: Important Legal Disclaimer
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 IMPORTANT LEGAL DISCLAIMER Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements with respect to Vivendi's financial condition, results of operations, business, strategy, plans, and outlook of Vivend
Slide 38: Investor Relations Team
Q 1 2 0 1 4 R e s u l t s – M a y 1 5 , 2 0 1 4 INVESTOR RELATIONS TEAM Jean-Michel Bonamy Deputy CFO +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com PARIS NEW YORK France Bentin Eileen McLaughlin IR Director Vice President IR North America france.bentin@vivendi.com eileen.mclaughlin@vivendi.com +3