Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (May 2018)
50 slides from Vivendi's investor presentation, May 24, 2018
Slide 1: Investor Presentation June 2018
June 2018 INVESTOR PRESENTATION IMPORTANT NOTICE: Financial statements audited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentation
Slide 2: Strategic update
Strategic update vivendi
Slide 3: A clear and ambitious strategy
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 A CLEAR AND AMBITIOUS STRATEGY CONTENT CONTENT CREATION COMMUNICATION DISTRIBUTION Some of our Partners NEW DEVELOPMENTS 3
Slide 4: We have set the foundations for achieving our ambition
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 WE HAVE SET THE FOUNDATIONS FOR ACHIEVING OUR AMBITION ■ Powerful and complementary assets ■ A solid financial situation ■ A lead shareholder: the Bolloré Group 4
Slide 5: Continuous creation of original content for all audiences
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CONTINUOUS CREATION OF ORIGINAL CONTENT FOR ALL AUDIENCES, NOTABLY FOR MILLENNIALS ■ Music world leader ■ Mobile gaming world ■ A rich and diverse leader in downloads audiovis
Slide 6: Building scale to get the best exposure for Vivendi content
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 BUILDING SCALE TO GET THE BEST EXPOSURE FOR VIVENDI CONTENT In house distribution Strong partnerships with Strong local footprint through platforms global digital platforms pa
Slide 7: Havas acquisition: another step in the execution of Vivendi strategy
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS ACQUISITION: ANOTHER STEP IN THE EXECUTION OF VIVENDI STRATEGY Large network of state-of-the-art An acquisition accretive to Vivendi’s agencies operating results and cas
Slide 8: Setting Vivendi up for future growth
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 SETTING VIVENDI UP FOR FUTURE GROWTH Intellectual New content Live & events property formats 8
Slide 9: Q1 2018 Highlights
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 Q1 2018 HIGHLIGHTS ■ Shareholders’ Meeting All resolutions approved ■ Yannick Bolloré appointed Chairman of the Supervisory Board ■ UMG 31.5%* increase in streaming and su
Slide 10: Universal Music Group - Shareholding structure
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 UNIVERSAL MUSIC GROUP - SHAREHOLDING STRUCTURE ■ Vivendi's Supervisory Board approved the Management Board's proposal notably to examine and carry out the necessary preliminar
Slide 11: Q1 2018 Revenues
Q1 2018 Revenues vivendi 11
Slide 12: Scope of consolidation, currencies and IFRS 15
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 SCOPE OF CONSOLIDATION, CURRENCIES AND IFRS 15 Main changes ■ Change in scope of consolidation Havas has been consolidated since July 3, 2017 ■ Currencies Compared to Q1 2
Slide 13: Revenues: Summary by business unit
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 REVENUES Summary by business unit ∆ organic 3M 2017* 3M 2018 ∆ (%) in euro millions - IFRS (%)** Universal Music Group 1,284 1,222 -4.8% +4.5% Canal+ Group 1,272 1,298 +2.1% +
Slide 14: Universal Music Group
Universal Music Group vivendi 14
Slide 15: Universal Music Group: Recorded music revenues by format
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 UNIVERSAL MUSIC GROUP Recorded music revenues – Breakdown and evolution by format Q1 2018 revenues - Distribution by format Evolution of revenues * by format Streaming & subsc
Slide 16: Universal Music Group: Revenues
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 UNIVERSAL MUSIC GROUP Revenues ∆ organic 3M 2017 3M 2018 in euro millions - IFRS (%)* Recorded music 1,016 980 +5.9% Streaming and subscriptions 467 557 +31.5% Other digital s
Slide 17: Canal+ Group
Canal+ Group vivendi 17
Slide 18: Canal+ Group: Subscriber base
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Subscriber base (in thousands) +620k * * 18
Slide 19: Canal+ Group: Retail subscriber base in mainland France
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Retail subscriber base in mainland France Evolution of the retail subscriber base in mainland France* Continuous improvement of the churn (In thousands) Strong de
Slide 20: Canal+ Group: Revenues
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Revenues ∆ organic 3M 2017* 3M 2018 ∆ (%) in euro millions - IFRS (%)** TV mainland France 807 801 -0.7% -0.7% TV International 370 386 +4.4% +5.3% o/w Africa 124
Slide 21: Havas
vivendi 21
Slide 22: Havas: Successful integration
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS Successful integration ■ A rapidly evolving industry Greater and greater convergence between advertising and content More transparency ► Through Vivendi, Havas is fu
Slide 23: Havas: Successful integration
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS Successful integration ■ Havas now has a unique value proposition to better serve its clients, leveraging Vivendi’s assets and its relationships with artists ■ Other Viv
Slide 24: Havas: Organic growth by geographic region
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS Organic growth by geographic region (excluding Arnold in the US) +2.2%* NORTH -3.1% AMERICA EUROPE +7.8% APAC +4.6% LATAM * Excluding Arnold 24
Slide 25: Havas: Revenues
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS Revenues 3M 2017 ∆ organic 3M 2018 / in euro millions - IFRS (pro-forma) (%)* ** Europe 250 244 -3.1% o/w France 101 101 -2.3% ** North America 197 169 +2.2% APAC and Af
Slide 26: Havas: Business update
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS Business update ■ Q1 2018 Key wins Creative Media ADP (USA) Aéroport de Paris (France) ADP (USA) Bristol-Myers Squibb Citroën (Italy and Australia) Boulanger (France) Ch
Slide 27: Conclusion
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CONCLUSION ■Good Q1 2018 ■We are confident about the prospects of our main businesses for the rest of the year We may release the H1 2018 earnings by the end of July 27
Slide 28: Appendix: 2017 Group Results
Appendix 2017 Group Results 28
Slide 29: 2017 Key Takeaways
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 2017 KEY TAKEAWAYS ■ Strong financial performance in 2017 Revenues: +4.9%*; EBITA: +23.1%*; ANI: +73.9% ■ UMG, sound growth supported by streaming growth and strong release
Slide 30: Currencies
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CURRENCIES Main changes In 2017, the euro strengthened against the main currencies. FY ∆ yoy (%) USD -1.8% JPY -4.7% GBP -7.7% 30
Slide 31: Key financial metrics
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 KEY FINANCIAL METRICS Organic ∆ yoy FY 2016 FY 2017 ∆ yoy (%) In euro millions (%)* Revenues 10,819 12,444 + 15.0 % + 4.9 % Income from operations 853 1,116 + 30.9 % +17.0% EB
Slide 32: Consolidated P&L
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CONSOLIDATED P&L 2016 2017 ∆ (%) In euro millions Revenues 10,819 12,444 + 15.0% Income from operations 853 1,116 + 30.9% EBITA 724 987 + 36.4% Amortization and depreciation o
Slide 33: Revenues: Summary by business unit
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 REVENUES Summary by business unit * At constant currency and perimeter. See details on pages 30 and 12, respectively 33
Slide 34: Income from operations / EBITA
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 INCOME FROM OPERATIONS / EBITA Summary by business unit * At constant currency and perimeter. See details on pages 30 and 12, respectively 34
Slide 35: Cash flow from operations (CFFO)
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CASH FLOW FROM OPERATIONS (CFFO) Summary by business unit 2016 2017 ∆ (%) in euro millions Universal Music Group 663 646 - 2.6% Canal+ Group 244 238 - 2.6% Gameloft 14 7 na Vi
Slide 36: Cash flow after interest & taxes (CFAIT)
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CASH FLOW AFTER INTEREST & TAXES (CFAIT) (in euro millions) CFFO FY 2017: 989 36
Slide 37: Consolidated balance sheet
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CONSOLIDATED BALANCE SHEET Assets Equity and Liabilities December 31, December 31, December 31, December 31, in euro millions 2016 2017 in euro millions 2016 2017 Goodwill 10,
Slide 38: FY 2017 net debt evolution
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 FY 2017 NET DEBT* EVOLUTION (in euro billions) Of which Havas: • Acquisition of 59.2%: €-2.3bn • Simplified Public Tender Offer: €-1.4bn • Mandatory squeeze out: €-0.1bn • Pur
Slide 39: Appendix: 2017 Business Unit Performances
Appendix 2017 Business Unit Performances 39
Slide 40: Universal Music Group: Revenues evolution
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 UNIVERSAL MUSIC GROUP Revenues evolution Sustained rise in revenues supported by continued growth of streaming services fueled by strong releases and UMG’s unique catalog Ch
Slide 41: Universal Music Group: Recorded music revenues by format
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 UNIVERSAL MUSIC GROUP Recorded music revenues by format In 2017 subscription & streaming represented 43% of UMG’s recorded music revenues Breakdown of recorded music revenue
Slide 42: Universal Music Group: Key figures
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 UNIVERSAL MUSIC GROUP Key figures * At constant currency and perimeter. See details on pages 30 and 12, respectively 42
Slide 43: Canal+ Group: Subscriber base in mainland France
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Subscriber base in mainland France Retail subscriber base* in mainland France: good commercial trends and churn improvement Gross adds (in thousands)* Continued
Slide 44: Canal+ Group: Subscriber base
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Subscriber base Continued strong momentum from international operations, mainly in Africa Stabilization of subscriber base in mainland France Subscriber base
Slide 45: Canal+ Group: Key figures
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Key figures Strong improvement of Canal+ Group results driven by sequential increase in EBITA before restructuring costs. Revenues (in euro millions) EBITA befo
Slide 46: Canal+ Group: Key figures
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 CANAL+ GROUP Key figures ∆ (organic, 2016 2017 ∆ (%) In euro millions in %)* Revenues 5,253 5,246 - 0.1% + 0.3% TV Mainland France 3,395 3,267 - 3.8% - 3.8% TV International 1
Slide 47: Havas: Contribution to 2017 Vivendi's operating results
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 HAVAS Contribution to 2017 Vivendi’s operating results H2 2017 In euro millions Revenues 1,151 Income from operations 135 Income from operations margin 11.7% Equity settled sh
Slide 48: Glossary and Legal Disclaimer
Glossary and Legal Disclaimer 48
Slide 49: Glossary
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 GLOSSARY The non-GAAP measures defined below should be considered in addition to, and not as a substitute for, other GAAP measures of operating and financial performance and V
Slide 50: Important Legal Disclaimer / Contacts
FY 2017 Results – Audit Committee - February 13, 2018 CONFIDENTIAL I n v e s t o r P r e s e n t a t i o n – J u n e 2 0 1 8 IMPORTANT LEGAL DISCLAIMER / CONTACTS Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements with respect to Vivendi's fina