Vivendi Se · EURONEXT:VIV
Vivendi — FY2013 Earnings Presentation
39 slides from Vivendi's earnings presentation, Mar 5, 2014
Slide 1: Investor Presentation March 2014
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 March 2014 INVESTOR PRESENTATION IMPORTANT NOTICE: Financial results for the fiscal year ended December 31, 2013 Financial statements audited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end o
Slide 2: Two achievements in 2013: cash flow generation and net debt reduction
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 TWO ACHIEVEMENTS IN 2013: CASH FLOW GENERATION AND NET DEBT REDUCTION IN A TOUGH ENVIRONMENT ► All businesses delivered earnings in line with guidance ► Operating profit mainly impacted by SFR adaptation to new pricing environment % Change,
Slide 3: 2013: Implementation of strategic repositioning
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 2013: IMPLEMENTATION OF STRATEGIC REPOSITIONING... ■ Strategic repositioning around media and content well advanced ► Sale of 88% of Activision Blizzard stake for $8.2bn completed on October 11, 2013 ► Sale of Maroc Telecom 53% stake for €4
Slide 4: Significant value created for shareholders over the last two years
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 ... WHICH HAS CREATED SIGNIFICANT VALUE FOR SHAREHOLDERS OVER THE LAST TWO YEARS €20.6* €15.7 FY13 earnings release FY12 earnings release €14.0 Feb 26, 2013 FY11 earnings release Mar 1, 2012 ► 67% total shareholder return representing €9.5
Slide 5: Transformation of Vivendi into two refocused and nimble groups
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 2014: TRANSFORMATION OF VIVENDI INTO TWO REFOCUSED AND NIMBLE GROUPS IS WELL ADVANCED Ventures MEDIA & TELECOMS* CONTENT INTERNATIONAL FRANCE €12.0bn revenues €10.2bn revenues €2.2bn EBITDA €2.8bn EBITDA 2013 figures ► Demerger terms to be
Slide 6: H1 2014 roadmap to a new start for Vivendi and SFR
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 H1 2014 ROADMAP TO A NEW START FOR VIVENDI AND SFR ■ Next strategic milestones to be executed in the near future ─ Disposal of Maroc Telecom ─ Announcement of demerger project terms ■ New governance at the helm of Vivendi following the deme
Slide 7: 2013 Results
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 2013 RESULTS
Slide 8: Revenues
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 REVENUES Comparable Constant basis and In euro millions - IFRS 2012 2013 Change currency constant currency Canal+ Group 5,013 5,311 + 5.9% + 6.2% - 0.5% Universal Music Group 4,544 4,886 + 7.5% + 12.8% - 0.6% GVT 1,716 1,709 - 0.4% + 13.1%
Slide 9: EBITDA / EBITA
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 EBITDA / EBITA EBITDA EBITA Constant Constant 2012 2013 Change In euro millions - IFRS 2012 2013 Change currency currency 940 905 - 3.7% - 3.6% Canal+ Group 663 611 - 7.8% - 7.9% 675 714 + 5.8% + 10.9% Universal Music Group 526 511 - 2.9% +
Slide 10: Adjusted P&L
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 ADJUSTED P&L In euro millions - IFRS 2012 2013 Change % Revenues 22,577 22,135 - 442 - 2.0% EBITDA 5,550 4,928 - 622 - 11.2% EBITA 3,163 2,433 - 730 - 23.1% Income from equity affiliates (38) (33) +5 Income from investments 7 67 + 60 Intere
Slide 11: Consolidated P&L
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 CONSOLIDATED P&L In euro millions - IFRS 2012 2013 Change % Revenues 22,577 22,135 -442 - 2.0% EBITA 3,163 2,433 -730 - 23.1% Amortization and impairment losses on intangible assets (1,196) (2,899) acquired through business combinations Res
Slide 12: Consolidated Balance Sheet
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 CONSOLIDATED BALANCE SHEET In euro millions Assets 2012 2013 Liabilities 2012 2013 (1) Goodwill 24,656 17,147 Consolidated equity 21,291 19,030 Intangible and tangible assets 19,487 15,619 Provisions 3,969 3,523 Equity affiliates and other
Slide 13: Cash Flow from Operations (CFFO)
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 CASH FLOW FROM OPERATIONS (CFFO) CFFO before capex, net CFFO 2012 2013 Change In euro millions - IFRS 2012 2013 Change 706 689 - 2.4% Canal+ Group 476 478 + 0.4% 528 611 + 15.7% Universal Music Group 472 585 + 23.9% 621 678 + 9.2% GVT (326)
Slide 14: Strong reduction of net debt
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 STRONG REDUCTION OF NET DEBT Net Debt Net Debt Interest & Reclassification Net Debt Dec. 31, Dec. 31, CFFO tax Dividends to Activision Parlophone Acquisition of of Maroc Dec. 31, Announced 2013, before paid and Vivendi Blizzard and other Ca
Slide 15: Performance by Activity
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 PERFORMANCE BY ACTIVITY
Slide 16: Canal+ Group: reinvesting in content in mainland France, growing internationally
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 REINVESTING IN CONTENT IN MAINLAND FRANCE, WHILE GROWING INTERNATIONALLY In euro millions - IFRS 2012 2013 Change Constant HIGHLIGHTS currency Revenues 5,013 5,311 + 5.9% + 6.2% ■ Revenues up 6.2% at constant currency thanks to Pay-TV Mainl
Slide 17: Universal Music Group: EBITDA up 11% benefiting from EMI integration
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 EBITDA UP 11%* BENEFITING FROM EMI INTEGRATION AND STRONG PERFORMANCE IN US & EUROPE In euro millions - IFRS 2012 2013 Change Constant currency HIGHLIGHTS Revenues 4,544 4,886 + 7.5% + 12.8% ■ Revenues in line with prior year* excluding EMI
Slide 18: GVT: 13% topline growth and focus on cash generation
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 13% TOPLINE GROWTH IN A TOUGH ENVIRONMENT AND FOCUS ON CASH GENERATION Constant In euro millions - IFRS 2012 * 2013 Change HIGHLIGHTS currency Revenues 1,716 1,709 - 0.4% + 13.1% ■ 13.1% revenue growth at constant Retail & SME 1,517 1,556 +
Slide 19: SFR: EBITDA close to €2.8bn
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 EBITDA CLOSE TO €2.8bn In euro millions - IFRS 2012 2013 Change HIGHLIGHTS Revenues 11,288 10,199 - 9.6%* Retail 7,974 6,873 - 13.8% ■ Retail revenues down 13.8% : B to B 1,871 1,789 - 4.4% ■ Mobile : +279k*** postpaid subscribers in 2013 t
Slide 20: Appendices
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 APPENDICES
Slide 21: Appendices: Details of Business Operations
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 APPENDICES Details of Business Operations
Slide 22: Canal+ Group subscribers and KPIs
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 In '000 Dec. 31, 2012 Dec. 31, 2013 Change Group individual subscribers 10,194 10,443 + 249 Mainland France 6,117 6,091 - 26 International 4,077 4,352 + 275 Poland 2,467 2,197 - 270 Overseas 480 485 +5 Africa 706 1,083 + 377 Vietnam 424 587
Slide 23: Universal Music Group revenues and 2014 upcoming releases
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 In euro millions - IFRS 2013 Constant Recorded Music Revenues 2012 2013 currency Europe 40% 40% Recorded music 3,992 + 14.1% Physical 1,665 + 1.1% North America 37% 40% Digital 1,705 + 30.1% Asia 15% 12% License and Other 622 + 15.5% Rest o
Slide 24: GVT operating data
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 In '000 2012 2013 Change In BRL millions - IFRS 2012 2013 Change Retail & SME - Homes passed 9,095 10,448 + 14.9% Total Revenues 4,300 4,862 + 13.1% Retail & SME 3,804 4,427 + 16.4% Retail & SME - Revenue Generating Units 6,134 7,198 + 17.3
Slide 25: SFR mobile and retail data
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 MOBILE - GROUP DATA 2012 2013 Change * Mobile Customers (in '000)* 20,598 21,354 + 3.7% Acquisition costs (in €m) 497 430 (67) Retention costs (in €m) 634 541 (93) RETAIL SEGMENT ** 2012 2013 Change REVENUES (in euro millions) 7,974 6,873 -
Slide 26: Appendices: Details for Discontinued Operations
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 APPENDICES Details for Discontinued Operations
Slide 27: Maroc Telecom: results in line with forecasts
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 RESULTS IN LINE WITH FORECASTS In euro millions - IFRS 2012 2013 Change Revenues 2,689 2,559 - 4.8% EBITDA 1,506 1,453 - 3.5% ■ Customer bases continue to grow and now comprise 37 million customers: mobile customer bases (+13.5%), fixed-lin
Slide 28: Appendices: Detailed Vivendi Financial Results
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 APPENDICES Detailed Vivendi Financial Results
Slide 29: Revenues
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 REVENUES Constant Constant Q4 2012 Q4 2013 Change In euro millions - IFRS 2012 2013 Change currency currency 1,366 1,454 + 6.4% + 7.2% Canal+ Group 5,013 5,311 + 5.9% + 6.2% 1,641 1,488 - 9.3% - 3.3% Universal Music Group 4,544 4,886 + 7.5%
Slide 30: EBITDA
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 EBITDA Constant Constant Q4 2012 Q4 2013 Change In euro millions - IFRS 2012 2013 Change currency currency 32 58 + 81.3% + 85.7% Canal+ Group 940 905 - 3.7% - 3.6% 354 328 - 7.3% - 2.4% Universal Music Group 675 714 + 5.8% + 10.9% 212 176 -
Slide 31: EBITA
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 EBITA Constant Constant Q4 2012 Q4 2013 Change In euro millions - IFRS 2012 2013 Change currency currency (59) (36) + 39.0% + 39.0% Canal+ Group 663 611 - 7.8% - 7.9% 288 256 - 11.1% - 7.8% Universal Music Group 526 511 - 2.9% + 1.4% 147 10
Slide 32: Interest
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 INTEREST In euro millions (except where noted) – IFRS 2012 2013 Interest (544) (528) Interest expense on borrowings (572) (553) Average interest rate on borrowings (%) 3.46% 3.38% Average outstanding borrowings (in euro billions) 16.5 16.3
Slide 33: Active management of debt structure and cost
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 ACTIVE MANAGEMENT OF DEBT STRUCTURE AND COST ■ Activision Blizzard €6.0bn sale proceeds received in October 2013 and used to reduce bonds by €3bn to avoid negative cost-of-carry: Repayment of 78% of the total US dollar securities debt for
Slide 34: Income taxes
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 INCOME TAXES 2012 2013 In euro millions – IFRS Adjusted Net income Adjusted Net income Net Income Net Income Tax savings related to the Vivendi SA's French Tax 381 333 415 254 Group and Consolidated Global Profit Tax Systems Tax charge (1,1
Slide 35: Capex, net
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 CAPEX, NET In euro millions - IFRS 2012 2013 Change Canal+ Group 230 211 - 8.3% Universal Music Group 56 26 - 53.6% GVT 947 769 - 18.8% Other 6 8 + 33.3% Holding & Corporate 1 - Media & Content 1,240 1,014 - 18.2% SFR 2,736 1,610 - 41.2% To
Slide 36: Appendices: Glossary & Disclaimer
I n v e s t o r P r e s e n t a t i o n – M a r c h 2 0 1 4 APPENDICES Glossary & Disclaimer
Slide 37: Glossary
I n v e s t o r P r e s e n t a t i o n – M a r c h 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, dis
Slide 38: Important Legal Disclaimer
I n v e s t o r P r e s e n t a t i o n – M a r c h 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 outlo
Slide 39: Investor Relations Team
I n v e s t o r P r e s e n t a t i o n – M a r c h 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@vi