Vivendi Se · EURONEXT:VIV
Vivendi — Q1 2018 Earnings Presentation
30 slides from Vivendi's earnings presentation, May 17, 2018
Slide 1: First Quarter 2018 Revenues
May 17, 2018 FIRST QUARTER 2018 REVENUES IMPORTANT NOTICE Unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of the presentation
Slide 2: Business Highlights
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 BUSINESS HIGHLIGHTS ■ Shareholders’ Meeting ▪ All resolutions approved ■ Yannick Bolloré appointed Chairman of the Supervisory Board ■ UMG ▪ 31.5%* increase in streaming and subscription revenues in Q1 2018 ▪ Year-to-date growth through
Slide 3: Universal Music Group - Shareholding Structure
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 preliminary legal operations required for a potential change in the Univ
Slide 4: Scope of Consolidation, Currencies and IFRS 15
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 2017, the euro strengthened against the main currencies 3M 2017
Slide 5: Revenues
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 REVENUES Summary by business unit D organic 3M 2017* 3M 2018 D (%) in euro millions - IFRS (%)** Universal Music Group 1,284 1,222 -4.8% +4.5% Canal+ Group 1,272 1,298 +2.1% +2.5% Havas - 482 na na Other 127 118 -7.3% -1.4% Gameloft 91 7
Slide 6: Universal Music Group
Universal Music Group vivendi
Slide 7: Universal Music Group: Recorded music revenues by format
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 & subscriptions +31.5%* License and Other 15% 557 Physical 467 16% St
Slide 8: Universal Music Group: Revenues
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 UNIVERSAL MUSIC GROUP Revenues D 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 sales 155 121 -21.7% Physical sales 226 155 -26.2% License and
Slide 9: Canal+ Group
Canal+ Group vivendi
Slide 10: Canal+ Group: Subscriber base
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 CANAL+ GROUP Subscriber base (in thousands) +620k * * 10
Slide 11: Canal+ Group: Retail subscriber base in mainland France
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 decrease in the number of cancellations… +3.2% - 4,890 4,774 4,7
Slide 12: Canal+ Group: Revenues
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 CANAL+ GROUP Revenues D organic 3M 2017* 3M 2018 D (%) in euro millions - IFRS (%)** TV mainland France 807 801 -0.7% -0.7% TV International 370 386 +4.4% +5.3% o/w Africa 124 132 +6.9% +12.3% Studiocanal 95 111 +17.7% +19.2% Revenues -
Slide 13: Havas
vivendi 13
Slide 14: Havas: Successful integration
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 fully aligned with this new paradigm ■ Havas is at the heart of
Slide 15: Havas: Successful integration
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 Vivendi activities benefit from Havas’ expertise in ▪ Consumer sc
Slide 16: Havas: Organic growth by geographic region
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 16
Slide 17: Havas: Revenues
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 HAVAS Revenues 3M 2017 D 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 Africa 39 39 +7.8% Latin America 33 30 +4.6% Revenues - Havas 519
Slide 18: Havas: Business update
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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) Cherry Jaguar Land Rover (Global) Carl’s Jr. (USA) Société Génér
Slide 19: Other businesses
Other businesses vivendi 19
Slide 20: Other Businesses: Revenues
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 OTHER BUSINESSES Revenues D organic 3M 2017 3M 2018 in euro millions - IFRS (%)* Gameloft 91 79 -7.4% Vivendi Village 26 23 -3.3% New Initiatives 10 16 +55.8% Revenues - Other activities 127 118 -1.4% * At constant currency and scope of
Slide 21: Conclusion
Conclusion vivendi 21
Slide 22: Conclusion
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 22
Slide 23: Appendices
Appendices vivendi 23
Slide 24: Universal Music Group: Key performance indicators
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 UNIVERSAL MUSIC GROUP Key performance indicators Recorded music: Best sellers* 3M 2017 3M 2018 The Weeknd Kendrick Lamar - Black Panther The Album Drake - More Life Migos La La Land OST Post Malone Fifty Shades Darker OST Imagine Dragons
Slide 25: Canal+ Group: Key performance indicators
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 CANAL+ GROUP Key performance indicators in thousands March 31, 2017 March 31, 2018 D Individual subscribers 14,135 14,747 +612 Mainland France 8,084 8,011 -73 International 6,051 6,736 +685 Collective contracts 572 580 +8 Total 14,707 15
Slide 26: Havas: Revenues - Breakdown
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 HAVAS Revenues - Breakdown Breakdown by activity Distribution by geographic region 35% 65% Creative + Health Media 26
Slide 27: Gameloft: Key performance indicators
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 GAMELOFT Key performance indicators Recent & upcoming Releases* Revenue - Distribution by geographic areas 3M 2017 3M 2018 EMEA 32% 36% Dungeon Hunter Champions North America 33% 32% Genre: MOBA Asia Pacific 25% 24% Released on May 3rd L
Slide 28: Application of IFRS 15
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 2 0 1 8 APPLICATION OF IFRS 15 ■ IFRS 15 applicable as from January 1, 2018 ■ No material impacts on Vivendi’s Q1 2018 consolidated revenues and operating results ■ Restatements of Q1 2017 and FY 2017 consolidated revenues 3M 2017 FY 2017 in eur
Slide 29: Legal Disclaimer
Legal Disclaimer vivendi 29
Slide 30: Important Legal Disclaimer / Contacts
CONFIDENTIAL 3 M 2 0 1 8 r e v e n u e s – M a y 1 7 , 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 financial condition, results of operations, business, strategy, pl