Slide 1: First Half and Second Quarter 2002 Operating Results
First Half and Second Quarter 2002 Operating Results Jean-Rene Fourtou Chairman and CEO Jacques Espinasse CFO August 14, 2002
Slide 2: Legal Disclaimer
Legal Disclaimer This press release 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 statement
Slide 3: Financials in French GAAP
Vivendi Universal Financials in French GAAP: Required by COB Simplifies reporting and communication Focus on strategy and operating results Consistent with other European global companies Quarterly reconciliation to US GAAP French GAAP / US GAAP 3
Slide 4: First Half and Second Quarter 2002 Results
Vivendi Universal First Half and Second Quarter 2002 Results In billions First Half 2002 Actual Pro forma Change % Second Quarter 2002 Actual Pro forma Change % Revenue Total Vivendi Universal &128; 30.0 8% &128; 15.3 5% Greater than 50% owned 10.9 8% 5.8 8% Less than 50% owned 19.1 8% 9.5 4% Operat
Slide 5: Consolidated Income Statement
Vivendi Universal First Half 2002 Consolidated Income Statement 1st Half 2002 Actual 1st Half 2001 Actual Actual % Change Revenue Operating Income Interest Expense Financial Provisions Other Income (expense) Exceptional items Taxes Equity in losses of unconsolidated companies Goodwill amortization G
Slide 6: Goodwill Impairment
Vivendi Universal (in billions) Goodwill Impairment &128;11.0bn - - Music 3.5 - - Entertainment 2.6 - - European T.V. 3.8 - - Telecoms and Internet 1.1 Goodwill Impairment 6
Slide 7: Debt at June 30, 2002
Vivendi Universal Debt at June 30, 2002 French GAAP debt approximately &128;35bn (vs. &128;37bn at 12/31/01) 19 billion euros excluding Vivendi Environnement 16 billion euros of Vivendi Environnement (vs. &128;15.7bn at 12/31/01) Debt Targets Reduce debt below &128; 10 billion as soon as possible &1
Slide 8: Full Year 2002 Priorities
Vivendi Universal Reduce debt Improve cash flow and productivity Cut overhead No external acquisitions Full Year 2002 Priorities 8
Slide 9: Other Issues
Vivendi Universal Diageo and Pernod Ricard agreement Update on class action lawsuits Canal+: - - Grouping around Canal+ SA French activities of Canal+ Group and StudioCanal and Sogecable - - Remaining assets will be retained by Canal+ Group with a view to disposing all or some of them B2B/Health upd
Slide 10: Operations First Half and Second Quarter 2002 Details
Operations First Half and Second Quarter 2002 Details 10
Slide 11: Second Quarter 2002 Segment Revenues
Actual &128; 1,509 1,203 1,776 1,145 40 114 12 5,799 1,729 362 7,451 9,542 Music (92% owned)* Publishing (100% owned)* Vivendi Universal Entertainment (86% owned)* CANAL+ Group & Other (100% owned)* Internet (100% owned)* Vivendi Telecom International (100% owned)* Non Core* Assets >50% Owned Cegete
Slide 12: Second Quarter 2002 Segment Operating Income
Actual &128; 142 119 381 0 (53) 10 (120) (102) 377 388 95 536 1,019 Music Publishing Vivendi Universal Entertainment CANAL+ Group & Other Internet Vivendi Telecom International Non Core Holding Total Owning > 50% Cegetel Maroc Telecom Environmental Services Total Owning < 50% Vivendi Universal Actua
Slide 13: Music
Music Revenue Operating Income 1H02 -0.04 -0.28 Difficult situation, market decline estimated at 10% Market share worldwide up; US YTD current album market share up to 30.2% vs 27.8% Major releases: Eminem, Nelly, Sheryl Crow, Ashanti, Vanessa Carlton, Musiq, Cam' Ron, Ronan Keating, Paulino Rubio's
Slide 14: Publishing
Publishing Revenue Operating Income Publishing & Education +5% +82% Houghton Mifflin +28% +9% Games +68% 3x VUP ongoing businesses +9% 4x Seasonality Effects: 60% sales in the second half Excluding B2B and Health activities revenues up 9% to &128;1.7bn and operating income increased &128;32mm to &12
Slide 15: Entertainment
Vivendi Universal Entertainment Revenue Operating Income 1H02 0.21 0.36 Theatrical releases: A Beautiful Mind (won Best Picture Oscar), Scorpion King and The Bourne Identity Video Releases: A Beautiful Mind, Spy Game, The Fast and The Furious and The Mummy Returns Television revenue up 5%: syndicati
Slide 16: Canal+ Group
Canal+ Group Revenue Operating Income 1H02 0.05 -0.31 Subscriptions up 2% year over year to 16.17 million Digital subscribers grew 19% year over year to 6.5 million Subscriber revenue up, driven by CanalSatellite (+251,000 subscriptions, flat ARPU) and Poland (consolidated for first time) Advertisin
Slide 17: Cegetel
Cegetel Revenue Operating Income 1H02 0.14 0.3 Mobile: - - Revenues up 12%; Operating Income up 23% - - Net additions: 427,000 (including SRR) - - Market share up 1.5% point to 34.8% (vs 33.3%) on gross additions - - 11% lower acquisition cost - - Monthly churn rate 2.2% slightly up Fixed telephony:
Slide 18: Environmental Services
Environmental Services Revenue Operating Income 1H02 0.07 0.05 Revenue grew 6% excluding non core assets and adjusting for acquisitions Operating Income increased 8% excluding non core assets Internal revenue growth: - - Water: 6% (excluding non core assets) - - Waste: 6% - - Energy Services: 5% - -