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Vivendi — Investor Presentation (December 2008)
36 slides from Vivendi's investor presentation, December 2008
Slide 1: Investor Presentation
Investor Presentation December 2008 IMPORTANT NOTICE: INVESTORS ARE STRONGLY URGED TO READ THE IMPORTANT DISCLAIMER AT THE END OF THIS PRESENTATION
Slide 2: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms France #1 Telecoms Morocco #1 Pay-TV France IR – December, 2008 2
Slide 3: Vivendi: solid fundamentals in the current environment
Vivendi: solid fundamentals in the current environment Vivendi is exceptionally well positioned to resist market volatility Strong free cash generation in each business Strong financial position and high dividend distribution to shareholders Guidance reiterated and unchanged since the beginning of t
Slide 4: Vivendi: exceptionally well positioned
Vivendi: exceptionally well positioned Growth dynamics: Home entertainment (TV, video games, music) and Telecom (Mobile, ADSL) are integrated in our customers’ lives like eating and sleeping Increased customer demand for broadband products and attractive entertainment experience Continued innovation
Slide 5: Vivendi: innovation drives demand
Vivendi: innovation drives demand SFR, the most creative telco operator #1 in 3G in France Multiple innovations in mobile digital content Already 10% of subscriber base with 3G unlimited internet access Canal+ features new TV experiences Digital migration drives higher customer value on multi-channe
Slide 6: Solid operational performance as of September 30, 2008
Solid operational performance as of September 30, 2008 30% increase in digital recorded music sales at constant currency EBITA margin rate of 13% Technical migration of TPS subscribers achieved at more than 90% Increase of almost 3 points in the EBITA margin rate Rapid integration of Neuf Cegetel. ~
Slide 7: Vivendi 2008 priorities announced in February are achieved
Vivendi 2008 priorities announced in February are achieved Successful outcome of bidding process for 9 €140m yearly of savings football rights new contract by Canal+ Close the merger to create Activision Blizzard 9 July 9, 2008 Close the acquisition of Neuf Cegetel by SFR 9 At 100% since June 24, 20
Slide 8: Two major acquisitions finalized with no capital increase
Two major acquisitions finalized with no capital increase Activision Blizzard Creation of Activision Blizzard, 54% held*, Expect ~$100-150m in synergies July 9, 2008 Reduction in Vivendi’s net debt of €0.6 Bn €89m in integration costs at end of Sept. 08 SFR/Neuf Cegetel 100% control of Neuf Cegetel
Slide 9: Vivendi: strong financial position
Vivendi: strong financial position ~€5.5 Bn of undrawn facilities anticipated at the end of 2008 and 2009 (1) No significant debt reimbursement before 2012 Strong free cash generation by each business A quality rating: BBB stable (2) Controlled financing costs Financial net debt (IFRS) €11.4 Bn (3)
Slide 10: Each year, Vivendi's dividend increase
Each year, Vivendi’s dividend increase Dividend 1.4 Pay- €1.30 for CAC 40 companies 1.2 €1.20 1 €1.00 0.8 0.6 €0.60 0.4 0.2 0 2003 2004 2005 2006 2007 2008 IR – December, 2008 10
Slide 11: In the current environment, Vivendi confirms 2008 outlook
In the current environment, Vivendi confirms 2008 outlook Vivendi confirms its guidance for 2008: increase in results similar to 2007 at constant perimeter, i.e. excluding impact of Neuf Cegetel and Activision Blizzard In 2009, the dividend corresponding to 2008 earnings will show similar increase,
Slide 12: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms France #1 Telecoms Morocco #1 Pay-TV France IR – December, 2008 12
Slide 13: Appendices
vivendi Appendices
Slide 14: Vivendi Businesses
Vivendi Businesses 100% 100%/65% 56% #1 in pay-TV in France #2 Telco in France #1 Worldwide in music 53% 54%* 20%* #1 Telco in Morocco #1 worldwide in A worldwide leader in video games entertainment * Based on shares outstanding IR – December, 2008 14
Slide 15: EBITA for the first 9 months of 2008 impacted by integration costs
EBITA for the first 9 months of 2008 is strongly impacted by the integration costs of the Neuf Cegetel and Activision Blizzard deals (€199m) 9 Months 2008 Revenues: €17.8 Bn, +13.6% (+15.9% at constant currency) EBITA: €3,848m, -2.1% (-1.0% at constant currency) Adjusted Net Income: €2,079m, -7.5% N
Slide 16: Net debt evolution
Net debt evolution In euro billions - IFRS Dividends Dividends December 31, Net financial CFFO Interest, paid to paid to September 30, 2007 Investments after Capex tax & other shareholders minorities Other 2008 -3 -4 -4.9 -5 -6 -5.2 +3.3 -0.8 -7 -1.5 -8 -0.6 +0.3 -9 -10 -9.4 -11 Including: Including
Slide 17: Important credit lines up to 2011
Important credit lines up to 2011 No significant debt reimbursement before 2012 Amount of bank credit lines 8 7.5 Vivendi 7 SFR At 2008 year end, the economic average term of the group’s 6.0 6.0 consolidated debt should be 4 years 6 5.0 5 in euro billions 4 3.5 3.5 Amount of bonds outstanding 3.3 3
Slide 18: UMG: Revenues up 3.5%, EBITA up 27.3%
Revenues up 3.5% at constant currency Constant In euro millions - IFRS 9 months 2008 9 months 2007 Change currency Digital revenues increase +30% at constant currency Revenues 3,142 3,265 -3.8% 3.5% representing 21% of recorded music EBITA 408 335 21.8% 27.3% o/w restructuring costs (41) (17) Divers
Slide 19: UMG
Top-selling artists UMG Million Million September 30, 2008 YTD Units* September 30, 2007 YTD Units* Duffy 3.7 Amy Winehouse 3.7 Amy Winehouse 3.6 Nelly Furtado 3.3 Mamma Mia! OST 3.4 Mika 3.2 Lil Wayne 3.0 Hannah Montana 2 2.8 Jack Johnson 2.6 High School Musical 2 2.8 Top - 5 Artists 16.3 Top - 5 A
Slide 20: Canal+ Group: Revenues +5.0%, EBITA +21.2%
Revenues: +5.0% In euro millions - IFRS 9 months 2008 9 months 2007 Change Canal+ France revenues: +2.9% Revenues 3,391 3,231 5.0% o/w Canal+ France 2,882 2,802 2.9% Increase of c.110K* subscriptions vs. September 2007 despite the current environment EBITA excl. transition costs 685 565 21.2% Transi
Slide 21: Canal+ Group
Canal+ Group The New TV Experience Launch of the new decoder + LE CUBE: HD satellite terminal with an internet connection. Equipped with a hard disk and offering new services such as The freedom to fully benefit from « Séries en avant-première » Canal+ and CanalSat either at Launch of CANAL+ A LA DE
Slide 22: SFR: Mobile, Fixed and ADSL
Mobile Fixed and ADSL Continued growth of mobile service revenues: +2.6% Revenues: +2.0% vs. 2007 on a comparable basis*** (+4.5% excluding the impact of regulated tariff cuts*) Increase of mass market broadband Internet and Strong increase in postpaid customer base Corporate segment partly offset b
Slide 23: SFR 2008 EBITDA Guidance
SFR 2008 EBITDA Guidance Mobile EBITDA 2008 guidance confirmed: slight growth Higher investments in contract customer base (mainly retention) in the first nine months of 2008 Less aggressive competitive environment expected in Q4-08 vs. Q4-07 Favorable Q4 comparable basis: high level of customer cos
Slide 24: SFR
SFR. And the world is yours. SFR Launch of SFR’s « neufbox »: 1st triple-play offer with SFR service included SFR launches the 1st « mobile internet devices » on the French market: Eee PC 901 with an integrated 3G+ connection, Archos 3G+, SFR M! Pocket PC Launch of Ma Sfere, a new experience that al
Slide 25: SFR: Detailed revenues
SFR: Detailed revenues IFRS sept-08 YTD sept-07 YTD % sept-07 YTD % Change on a Comparable in euro million Actual Actual Change Comparable Basis* Basis * Outgoing revenues net of promotions 5,233 82% 5,059 81% 3.4% 5,079 81% 3.0% Mobile incoming 641 10% 618 10% 3.7% 618 10% Fixed incoming revenues 2
Slide 26: Maroc Telecom Group
Maroc Telecom Group Constant Revenues: +7.2% In euro millions - IFRS 9 months 2008 9 months 2007 Change currency at constant currency and constant perimeter* Revenues 1,930 1,819 6.1% 8.3% Mobile 1,382 1,266 9.2% 11.4% Increase in mobile revenues, up 10.6% at Fixed and Internet 737 743 -0.8% 1.2% co
Slide 27: Maroc Telecom Group
Maroc Telecom Group 9 months 9 months In '000 Change 2008 2007 MAROC TELECOM Number of mobile customers 14,629 12,838 14.0% % Prepaid customers 96.1% 96.2% Number of fixed lines* 1,314 1,324 -0.8% Total Internet access** 482 449 7.3% Subsidiaries Number of mobile customers 2,575 1,679 53.4% Number o
Slide 28: Activision Blizzard: a successful merger
A successful merger: Seamless integration of Vivendi Games and Activision Increased profitability Expanded global reach of powerful franchises Very strong performance in the first quarter of the combined company: Q3 results exceed prior outlook* Continued strong worldwide sales of the best-selling f
Slide 29: Activision Blizzard Q3 YTD standalone results
Q3 YTD Standalone results on a US Non-GAAP US$ comparable basis*** Revenues up 29%: IFRS in Euros Activision Publishing up 58% driven by Guitar Hero and Call of Duty 4: Modern Warfare In euro millions - IFRS 9 months 2008 9 months 2007 Change Revenues 919 716 28.4% Blizzard Entertainment flat with 2
Slide 30: Activision Blizzard: September 30, 2008
US Non-GAAP comparable basis segment performance* Activision Blizzard: US$ in millions Revenues 9 Months 2008 Operating Income 9 Months 2008 September 30, 2008 Activision 1,584 +58% Activision 101 Blizzard 866 +1% Blizzard 447 Distribution 239 +2% Distribution 8 556 +46% Core 2,689 +29% Core Highlig
Slide 31: Activision Blizzard: Guidance 2008
Activision Blizzard: Guidance 2008 Activision Blizzard has reaffirmed its calendar year 2008 US Non-GAAP combined outlook of $4.9 billion in revenues and $1.2 billion in operating income*, exceeding the comparable year 2009 US Non-GAAP financial targets that were provided on December 2, 2007 by: app
Slide 32: Appendix: Governance
Appendix : Governance A dual and collegial corporate governance structure The Supervisory Board chaired by Jean-René Fourtou ■ 13 members (as of April 25, 2008): 11 independent; 12 European citizens (2 Belgian, 8 French, 1 Polish, 1 Spanish); 1 American ■ 4 Committees of the Supervisory Board: Strat
Slide 33: Glossary
Glossary Adjusted earnings before interest and income taxes (EBITA): EBIT (defined as the difference between charges and income that do not result from financial activities, equity affiliates, discontinued operations and tax) before the amortization of intangible assets acquired through business com
Slide 34: Activision Blizzard – standalone - definitions
Activision Blizzard – standalone - definitions US Non-GAAP Financial Measures* Activision Blizzard provides net revenues, net income (loss), earnings (loss) per share and operating margin data and guidance both including (in accordance with US GAAP) and excluding (US Non- GAAP): the impact of the ch
Slide 35: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Vivendi. Although Vivendi believes that such forward- looking statements are based on reasonable assumptions, such statemen
Slide 36: Investor Relations team
Investor Relations team Daniel Scolan Executive Vice President Investor Relations +33.1.71.71.14.70 daniel.scolan@vivendi.com Paris 42, Avenue de Friedland New York 75380 Paris cedex 08 / France 800 Third Avenue Phone: +33.1.71.71.32.80 Fax: +33.1.71.71.14.16 New York, NY 10022 / USA Phone: +1.212.5