Vivendi Se · EURONEXT:VIV
Vivendi — H1 2020 Earnings Presentation
51 slides from Vivendi's earnings presentation, Jul 30, 2020
Slide 1: First-Half 2020 Results
July 30, 2020 FIRST-HALF 2020 RESULTS IMPORTANT NOTICE: Pour insérer la notice, cliquez sur le bouton « Formes » puis double-cliquez sur la version EN ou FR Financial results for the half year ended June 30, 2020 dans le dossier 02. Mentions & Tags Unaudited financial statements, prepared under IFRS
Slide 2: Important Legal Disclaimer
First-Half 2020 Results - July 30, 2020 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 outlook including the i
Slide 3: Impacts of the COVID-19 Crisis on Vivendi's Businesses
First-Half 2020 Results - July 30, 2020 IMPACTS OF THE COVID-19 CRISIS ON VIVENDI’S BUSINESSES ▪ Although the COVID-19 pandemic is having a more significant impact on certain countries or businesses than others, Vivendi has been able to demonstrate resilience and adapt in order to continue to best s
Slide 4: Summary
First-Half 2020 Results - July 30, 2020 SUMMARY 1 H1 2020 Key Highlights 2 H1 2020 Financials 3 Business Unit Performances 4 Conclusion 5 Q&A 6 Appendices and glossary 4
Slide 5: H1 2020 Key Highlights
ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer H1 2020 Key Highlights 5
Slide 6: H1 2020: Solid Results
First-Half 2020 Results - July 30, 2020 H1 2020 : SOLID RESULTS ■ Controlled impact of the public health crisis on the financial results ■ Very good results of our 2 main businesses : UMG and Canal+ Group ■ Adjusted net income of € 583 M, up 5.4 % ■ A solid financial position ■ Net debt reduced to €
Slide 7: Our Group Keeps Moving Forward
First-Half 2020 Results - July 30, 2020 OUR GROUP KEEPS MOVING FORWARD ■ Completion of the sale of 10% of the share capital of UMG based on an enterprise value of €30 Bn for 100% of UMG The process is going on as announced ■ Closing of the acquisition of Endemol Shine Group by Banijay : Vivendi owns
Slide 8: Continued Return to Shareholders
First-Half 2020 Results - July 30, 2020 CONTINUED RETURN TO SHAREHOLDERS ■ Return to shareholders ■ €0.60/share dividend paid to shareholders in April 2020: € 690 M ■ 31 M share buyback during H1 2020: € 719 M ■ Current share buyback program ■ Authorization by the Shareholders’ Meeting on April 20,
Slide 9: Confident in Our Resilient Model
First-Half 2020 Results - July 30, 2020 CONFIDENT IN OUR RESILIENT MODEL ■ Coherent and diversified business model ■ Strong digitization of our activities / Subscription-based activities ■ Agility and flexibility 9
Slide 10: H1 2020 Financials
HERVÉ PHILIPPE Member of the Management Board Chief Financial Officer H1 2020 Financials 10
Slide 11: Scope of Consolidation and Currency Impacts
First-Half 2020 Results - July 30, 2020 SCOPE OF CONSOLIDATION AND CURRENCY IMPACTS Revenues EBITA H1 2019 H1 2020 H1 2019 H1 2020 D organic +6.7% -2.0% +27.6% -3.8% Consolidation scope impact +4.8pts +4.2pts +1.9pts +5.1pts D at constant currency rate +11.5% +2.2% +29.5% +1.3% FX impact +2.1pts +0.
Slide 12: H1 2020 Key Figures
First-Half 2020 Results - July 30, 2020 H1 2020 KEY FIGURES D organic H1 2019 H1 2020 D (%) In euro millions (%) Revenues 7,353 7,576 +3.0% -2.0% EBITA 718 735 +2.4% -3.8% Adjusted Net Income 554 583 +5.4% EBIT 645 660 +2.3% Earnings attributable to Vivendi SA shareowners 520 757 +45.7% CFFO 36 338
Slide 13: P&L
First-Half 2020 Results - July 30, 2020 P&L The capital gain on the disposal of 10% of UMG was recognized in equity for € 2.4 Bn H1 2019 H1 2020 D (%) in euro millions Revenues 7,353 7,576 +3.0% EBITA* 718 735 +2.4% EBIT 645 660 +2.3% Income from non-operating equity affiliates (8) 64 Interest (21)
Slide 14: Consolidated Balance Sheet
First-Half 2020 Results - July 30, 2020 CONSOLIDATED BALANCE SHEET Assets Equity and Liabilities December 31, 2019 June 30, 2020 December 31, 2019 June 30, 2020 in euro millions in euro millions Goodwill 14,690 14,603 Consolidated equity* 15,575 17,422 Intangible and tangible assets 7,394 7,094 Prov
Slide 15: Debt Evolution
First-Half 2020 Results - July 30, 2020 DEBT EVOLUTION (in euro billions) Dividends (-€690 M) -1.4 Share buybacks (-€719 M) +2.8 -0.4 +0.3 -0.3 (3.1) * (4.1) Net Debt Sale of Shareholder Acquisition of CFFO Interest, taxes Net Debt as of 10% of UMG returns Lagardere stake and other as of Dec. 31, 20
Slide 16: Liquidity and Capital Resources
First-Half 2020 Results - July 30, 2020 LIQUIDITY AND CAPITAL RESOURCES Changes in net debt position Credit lines available as of June 30, 2020 Maximum December 31, 2019 June 30, 2020 Maturity in euro millions in euro millions amount Cash and cash equivalents (2,130) (2,374) Vivendi SE - Syndicated
Slide 17: Business Unit Performances
Business Unit Performances 17
Slide 18: Revenues and EBITA by Business Unit
First-Half 2020 Results - July 30, 2020 REVENUES AND EBITA BY BUSINESS UNIT Revenues by business unit D organic H1 2019 H1 2020 D (%) in euro millions (%) Universal Music Group 3 258 3,258 3,459 +6.2% +3.5% Canal+ Group 2 518 2,518 2,674 +6.2% -1.6% Havas Group 1 114 1,114 1,019 -8.5% -11.7% Editis*
Slide 19: Organic Growth per Quarter
First-Half 2020 Results - July 30, 2020 ORGANIC GROWTH PER QUARTER Q1 2020 Q2 2020 H1 2020 Organic growth (in %) Universal Music Group +12.7% -4.7% +3.5% Canal+ Group +1.0% -4.3% -1.6% Havas Group - Net Revenues organic growth -3.3% -18.3% -11.2% Editis - Proforma* -14.3% -15.7% -15.1% Other busines
Slide 20: Cash Flow from Operations (CFFO) by Business Unit
First-Half 2020 Results - July 30, 2020 CASH FLOW FROM OPERATIONS (CFFO) BY BUSINESS UNIT H1 2019 H1 2020 in euro millions Universal Music Group 166 60 Canal+ Group 174 653 Havas Group (72) (131) Editis* (87) (76) Other businesses** (145) (168) Total Vivendi 36 338 * Editis has been consolidated sin
Slide 21: Cash Flow from Operations (CFFO)
First-Half 2020 Results - July 30, 2020 CASH FLOW FROM OPERATIONS (CFFO) in euro millions H1 2019 H1 2020 D EBITDA 1,007 1,120 +113 Content investments paid, net (272) (224) +48 of which net payments to artists and catalog acquisitions by UMG (172) (352) -180 Capex (188) (205) -17 Changes in net wor
Slide 22: Universal Music Group
Universal Music Group vivendi 22
Slide 23: Universal Music Group
First-Half 2020 Results - July 30, 2020 UNIVERSAL MUSIC GROUP Resilience of Subscriptions & Streaming revenues Sustained EBITA growth 580 16.4% 16.5% 1,814 560 16.0% 1,567 540 15.5% 520 500 15.0% 14.8% 567 480 573 14.5% 438 467 348 379 371 460 202 481 14.0% 121 440 420 13.5% Subscriptions and Physic
Slide 24: Universal Music Group
First-Half 2020 Results - July 30, 2020 UNIVERSAL MUSIC GROUP Organic revenue growth* per quarter D organic D organic D organic Q1 2020 Q2 2020 H1 2020 in euro millions - IFRS (%) (%) (%) Recorded music 1,432 +13.1% 1,339 -4.5% 2,771 +3.7% Subscriptions and streaming 908 +16.5% 906 +8.5% 1,814 +12.4
Slide 25: Universal Music Group Key Figures
First-Half 2020 Results - July 30, 2020 UNIVERSAL MUSIC GROUP Key Figures D organic H1 2019 H1 2020 D (%) in euro millions (%)* Revenues 3,258 3,459 +6.2% +3.5% Recorded music 2,596 2,771 +6.7% +3.7% Streaming and subscriptions 1,567 1,814 +15.8% +12.4% Other digital sales (mainly downloads) 212 238
Slide 26: Canal+ Group
Canal+ Group vivendi 26
Slide 27: Canal+ Group
First-Half 2020 Results - July 30, 2020 CANAL+ GROUP Group’s subscriber base (in thousands) Evolution of EBITA before restructuring charges (in € M) 20,367 17,117 11,810 8,659 329 236 8,458 8,557 June 30, 2019* June 30, 2020 H1 2019 H1 2020 Mainland France International * 2019 data were restated to
Slide 28: Canal+ Group
First-Half 2020 Results - July 30, 2020 CANAL+ GROUP Mainland France - Subscriber base (in thousands) 8,458 8,557 4,548 4,636 3,401 3,392 509 529 June 30, 2019* June 30, 2020 Collective contracts Customers via wholesale partnerships Self-distributed subscribers * 2019 data has been restated to inclu
Slide 29: Canal+ Group
First-Half 2020 Results - July 30, 2020 CANAL+ GROUP Organic revenue growth per quarter D organic D organic D organic Q1 2020 Q2 2020 H1 2020 in euro millions - IFRS (%) (%) (%) TV - International 543 +8.7% 511 +1.7% 1,054 +5.2% TV - Mainland France 756 -0.7% 732 -3.5% 1,488 -2.1% Studiocanal 73 -25
Slide 30: Canal+ Group Key Figures
First-Half 2020 Results - July 30, 2020 CANAL+ GROUP Key figures D organic H1 2019 H1 2020 D (%) in euro millions (%) Revenues 2,518 2,674 +6.2% -1.6% TV International 808 1,054 +30.5% +5.2% TV mainland France 1,520 1,488 -2.1% -2.1% Studiocanal 190 132 -30.5% -33.1% EBITA before restructuring charg
Slide 31: Havas Group
Havas Group vivendi 31
Slide 32: Havas Group Key Figures
First-Half 2020 Results - July 30, 2020 HAVAS GROUP Key Figures D organic H1 2019 H1 2020 D (%) in euro millions (%) Revenues 1,114 1,019 -8.5% -11.7% Net revenues 1,061 977 -7.9% -11.2% Europe 517 454 -12.2% -16.6% North America 398 405 +1.7% -1.8% Asia Pacific and Africa 86 78 -9.5% -14.5% Latin A
Slide 33: Havas Group
First-Half 2020 Results - July 30, 2020 HAVAS GROUP Organic net revenue growth per quarter D organic D organic D organic Q1 2020 Q2 2020 H1 2020 in euro millions (%) (%) (%) Revenues 524 -4.4% 495 -18.3% 1,019 -11.7% Net Revenues 507 -3.3% 470 -18.3% 977 -11.2% Europe 236 -9.8% 218 -22.9% 454 -16.6%
Slide 34: EBITA Change and Cost-Reduction Plan
First-Half 2020 Results - July 30, 2020 HAVAS GROUP EBITA change and cost-reduction plan 108 46 -123 +6 -3 +58 EBITA Organic change Cost-reduction Restructuring Impact of EBITA H1 2019 in net income plan FX/perimeter change H1 2020 on EBITA 34
Slide 35: Net Revenue Breakdown by Sector and Geographic Area
First-Half 2020 Results - July 30, 2020 HAVAS GROUP Net revenue breakdown by sector and geographic area as of June 30, 2020 Retail Automotive Latin America 4% Asia Pacific and Travels & Healthcare 5% Africa Entertainment & Wellness 4% 6% 8% 27% Other Industries & Services 7% Food & Drinks 8% 46% Eur
Slide 36: Editis
Editis 36
Slide 37: Editis
First-Half 2020 Results - July 30, 2020 EDITIS Key Figures* Strong recovery in revenues post-lockdown H1 2019 H1 2020 D Revenue growth 6-month 6-month proforma of 38% in June in euro millions proforma consolidated (%) Revenues 306 262 -15.1% Literature 148 123 -18.6% Education & Reference 61 55 -9.5
Slide 38: Other Businesses
Other Businesses vivendi 38
Slide 39: Other Businesses
First-Half 2020 Results - July 30, 2020 OTHER BUSINESSES Revenues EBITA in euro millions H1 2019 H1 2020 H1 2019 H1 2020 in euro millions Gameloft 133 130 Gameloft (11) (14) Vivendi Village 66 26 Vivendi Village (9) (27) New Initiatives 34 28 New Initiatives (29) (42) Intercompany Elimination (30) (
Slide 40: Conclusion
Conclusion vivendi 40
Slide 41: Conclusion
First-Half 2020 Results - July 30, 2020 CONCLUSION ■ Good results, driven by UMG and Canal+ ■ Successful opening of UMG’s share capital ■ Q3 2020 revenues will be released on October 20, 2020 ■ The next General Shareholders’ Meeting will be held on June 22, 2021 41
Slide 42: Vivendi
vivendi
Slide 43: Appendices and Glossary
Appendices and glossary vivendi
Slide 44: Results by Business Unit
First-Half 2020 Results - July 30, 2020 RESULTS BY BUSINESS UNIT Revenues – 2nd quarter D organic Q2 2019 Q2 2020 in euro millions (%) Universal Music Group 1,756 1,690 -4.7% Canal+ Group 1,266 1,302 -4.3% Havas Group 589 495 -18.3% Editis* 171 146 -15.7% Other businesses** and intercompany eliminat
Slide 45: Universal Music Group
First-Half 2020 Results - July 30, 2020 UNIVERSAL MUSIC GROUP D organic H1 2020 in euro millions (%) SELECTED UPCOMING 2020 H2 RELEASES** North America 1,396 +7.3% Europe 838 +7.5% Asia 382 -0.6% Bon Jovi The Killers Latin America 95 +20.1% Calogero (France) King & Prince (Japan) Rest of the world 6
Slide 46: Shareholding in Telecom Italia
First-Half 2020 Results - July 30, 2020 SHAREHOLDING IN TELECOM ITALIA H1 2019 H1 2020 in euro millions Vivendi's share of Telecom Italia's net income 36 108 Impact of dividend paid to saving share owners (14) (14) Impact on Vivendi's Adjusted net income 22 94 Amortization of revaluation of intangib
Slide 47: Interest & Income Tax
First-Half 2020 Results - July 30, 2020 INTEREST & INCOME TAX Interest H1 2019 H1 2020 in euro millions (except where noted) Interest expense on borrowings (35) (24) Average interest rate on borrowings (%) 1.51% 0.73% Average outstanding borrowings (in € Bn) 4.7 6.5 Interest income from cash and cas
Slide 48: Adjusted Net Income
First-Half 2020 Results - July 30, 2020 ADJUSTED NET INCOME H1 2019 H1 2020 in euro millions Revenues 7,353 7,576 EBITA* 718 735 Income from non-operating equity affiliates 22 94 Interest (21) (16) Income from investments 5 15 Provision for income taxes (148) (193) Non-controlling interests (22) (52
Slide 49: Reconciliations
First-Half 2020 Results - July 30, 2020 RECONCILIATIONS EBIT to EBITA and IFO Earnings attributable to Vivendi shareowners to ANI H1 2019 H1 2020 in euro millions H1 2019 H1 2020 in euro millions EBIT 645 660 Earnings attributable to Vivendi SA shareowners 520 757 Amortization and depreciation on in
Slide 50: Glossary
Glossary vivendi 50
Slide 51: Glossary
First-Half 2020 Results - July 30, 2020 GLOSSARY The non-GAAP measures defined below should be considered in addition to, and not as a substitute for, other GAAP measures of operating and financial performance and Vivendi considers these to be relevant indicators of the group’s operating and financi