Vivendi Se · EURONEXT:VIV
Vivendi — Vivendi Universal — Shareholder Meeting (April 2003)
20 slides from Vivendi's shareholder meeting presentation, Apr 30, 2003
Slide 1: 2003 Shareholders Meeting - CFO Jacques Espinasse
Exhibit 99.2 2003 Shareholders Meeting Jacques ESPINASSE Senior Executive Vice President & Chief Financial Officer April 29, 2003 1
Slide 2: Important Legal Disclaimer
Important Legal 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
Slide 3: Percentage of ownership of main subsidiaries
Percentage of ownership of main subsidiaries 31/12/01 31/12/02 January 2003 Vivendi Environnement 63% 20.4% 20.4% Cegetel 44% 44% 70% SFR 35% 35% 56% USG / Vivendi Universal Entertainment 92% 86% 86% Universal Music Group 92% 92% 92% Groupe Canal+ 100% 100% 100% Maroc Telecom 35% 35% 35% Vivendi Uni
Slide 4: Consolidated 2002 Income Statement
Consolidated 2002 Income Statement Revenue Operating Income Interest expenses and financial provisions Exceptional items, net Income tax expenses Equity in earnings (losses) of disposed businesses and unconsolidated companies Goodwill impairment and amortization Minority interests 28,1 - -4,1 1,9 In
Slide 5: 2002 Goodwill and Non-Recurring Items
2002 Goodwill and Non-Recurring Items French GAAP - -23.0 0.2 - -22.8 TOTAL 0.6 0.0 0.6 Minority interest effect Tax on capital gains, reversal of deferred tax, provision for tax risk - -1.0 0.0 - -1.0 Tax effect Gains and losses on BSkyB +1.6, VE +1.4, VUP +0.3, Houghton Mifflin -0.8, Echostar -0.7
Slide 6: Net Income Analysis
Net Income Analysis 2002 2001 Net Income (loss) -23.3 -13.6 Net income (loss) before goodwill amortization & non recurring items -0.5 -0.1 In billions of euros Our current profitability is unsatisfactory, even leaving aside exceptional items affecting net income. Operating income, which I will come
Slide 7: Pro forma revenues increased 4%
Cegetel / SFR UMG VUE Canal+ Maroc Telecom VU Games Holding & Others Holding and Corporate 2001 6384 6560 6874 4563 1351 657 1344 -492 2002 7067 6276 6978 4742 1487 794 1385 -369 Revenue 2001 2001 27733 2002 28729 Details by businesses 27,733 28,729 2001 2002 * Excluding businesses sold in 2002 + fu
Slide 8: April 29, 2003
April 29, 2003 7
Slide 9: Pro forma operating income by business
Cegetel / SFR UMG VUE Canal+ Maroc Telecom VU Games Holding & Others Holding and Corporate 2001 928 719 928 -374 475 18 -581 -492 2002 1449 556 946 -295 468 63 -1150 -369 Operating Income In 2002: Total Group Pro Forma* operating income down 4% Flat on constant currency basis 2001 2113 2037 2,113 2,
Slide 10: Slide 10
Slide 11: Cash flow from operations by business
Cegetel / SFR UMG VUE Canal+ Maroc Telecom VU Games Holding & Others Holding and Corporate 2001 1267 152 669 -480 383 -126 -641 -492 2002 2058 523 465 -353 599 72 -735 -369 Cash Flow from Operations* 92% 100% 100% 100% Cegetel / SFR UMG VUE Canal+ Maroc Telecom VU Games Holding & Others Details by b
Slide 12: Net debt evolution in 2002
Net debt has been reduced by € 25 billion in 2002 due to the deconsolidation of Vivendi Environnement and asset sales Net Debt Evolution (including Vivendi Environnement) Op Net Debt VE CFFops Int , tax + div Inv. Sales Other Dec Est 21.4 18.8 18.8 21.4 15.9 12.3 0 37.1 15.7 2.7 2.6 3.8 9.2 3.6 12.3
Slide 13: Liquidity update
Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Case 3 5 1.8 4.6 4.7 6.1 4 3.9 3.6 4 Liquidity Update VE Exchangeable (€1.9bn) Cegetel Investment (€2.7bn) Asset Divestitures +€2bn Liquidity Available End of Quarter at VU SA Level (Cash + undrawn credit lines, in € billion) BS
Slide 14: Reduction of French GAAP net debt
Reduction of French GAAP Net Debt Proportionate approach for Telecoms Consolidated Perimeter Cash Pooling Perimeter Vivendi Environnement Pro forma for the acquisition of additional 26% in Cegetel Group (€4.0bn in January 2003) 8.2 6.0 18.8 21.4 12.3 15.1 13.0 11.4 9.5 8.7 8.5 1.7 x 1.9 x 2.0 x 1.2
Slide 15: Complementary Information
Complementary Information April 29, 2003 13
Slide 16: Initial actions to improve liquidity pressure
Initial Actions taken to improve the liquidity pressure and keep control of Cegetel € 1 billion bank facility obtained in November 2002: Margin: 375 basis points over Euribor Maturity: €500 million at 12/31/03, €500 million at 12/31/04 Issue of Notes Mandatorily Redeemable for VU shares in November
Slide 17: Recent financing transactions
€ 1.2 billion 7-year High-Yield bond: $ 935 million, 9.25% margin € 325 million, 9.5% margin (9.75% yield) € 2.5 billion 3-year bank facility to reimburse short-term €1.5 billion bank debt and to replace the €1bn back up credit line (signing expected early May) Tranche A: € 1.5 billion revolving cre
Slide 18: Vivendi Universal's credit ratings
Vivendi Universal's Ratings Dates MOODY'S MOODY'S STANDARD & POOR'S STANDARD & POOR'S STANDARD & POOR'S Implied Rating LT Debt Unsecured Corporate Rating Unsecured LT Debt Short Term 03/25/2003 Ba3 negative outlook B1 negative Outlook BB stable B+ B 01/03/2003 BB stable B+ B 10/30/2002 Ba3 under rev
Slide 19: Impact of ratings on interest expenses
Impact of our ratings on interest expenses and contractual terms Example of interest expenses evolution of the €2.5 billion senior secured facility Tranche A: € 1.5 billion, revolving facility - 3 years from signing margin: 2.75% per annum for a minimum of 6 months, then according to the following g
Slide 20: Checking the accounts' integrity
Checking the Accounts' Integrity Internal Review Pricewaterhouse Coopers Arthur Andersen / Ernst & Young RSM Salustro Reydel CFOs Have Committed To Accuracy of Accounts Accounting Write-offs taken last quarter reflect true value No accounting improprieties identified: books under investigation by se