Vivendi Se · EURONEXT:VIV
Vivendi — Shareholder Meeting (April 2019)
105 slides from Vivendi's shareholder meeting presentation, Apr 15, 2019
Slide 1: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 1
Slide 2: Yannick Bolloré
Yannick Bolloré Chairman of the Supervisory Board Combined Shareholders' Meeting - April 15, 2019 2
Slide 3: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 3
Slide 4: Build a global leader with European roots in content, media and communication
Build a global leader with European roots in content, media and communication 4
Slide 5: 83% of people regard entertainment as a vital necessity
83% of people regard entertainment as a vital necessity Combined Shareholders' Meeting - April 15, 2019 5
Slide 6: The ambition to be the European leader of global culture
The ambition to be both the European leader of global culture and THE global leader of European culture Combined Shareholders' Meeting - April 15, 2019 6
Slide 7: Meaningful brands outperform the market by 134%
Meaningful brands 430 Meaningful brands outperform the 380 market by 134% 330 280 230 Sector average 180 130 80 2008 2010 2012 2014 2016 2018 Combined Shareholders' Meeting - April 15, 2019 Stock-market cumulated values between 2008 and 2018 Source: Yahoo Finance / STOXX 1800 7
Slide 8: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 8
Slide 9: Arnaud de Puyfontaine
Arnaud de Puyfontaine Chairman of the Management Board Combined Shareholders' Meeting - April 15, 2019 9
Slide 10: Our key figures in 2018
Our key figures in 2018 A presence in 100+ 44,150 countries employees Revenue of €13.9 billion €2.7 billion invested in content Combined Shareholders' Meeting - April 15, 2019 10
Slide 11: Changes in the share price (June 24, 2014 - April 12, 2019)
Changes in the share price (June 24, 2014 - April 12, 2019) Vivendi* +85.0% CAC 40* +40,4% 24/6/14 24/12/14 24/6/15 24/12/15 24/6/16 24/12/16 24/6/17 24/12/17 24/6/18 24/12/18 * Dividends reinvested Combined Shareholders' Meeting - April 15, 2019 11
Slide 12: 2019 roadmap
2019 roadmap Combined Shareholders' Meeting - April 15, 2019 12
Slide 13: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 13
Slide 14: Hervé Philippe
Hervé Philippe Chief Financial Officer of Vivendi Combined General Meeting of Shareholders - April 15, 2019 14
Slide 15: Key consolidated figures
Key consolidated figures In millions of euros 2017 2018 % Change % Organic change Revenues 12,518 13,932 + 11.3 % + 4.9 % Adjusted earnings before interest and income taxes 969 1,288 + 33.0 % + 24.7 % (EBITA)* Earnings before interest and 1,018 1,182 + 16.1 % income taxes (EBIT) Adjusted net income*
Slide 16: Consolidated statement of earnings
Consolidated statement of earnings In millions of euros 2017 2018 % Change Revenues 12,518 13,932 + 11.3 % Adjusted earnings before interest and income taxes (EBITA)* 969 1,288 + 33.0 % Amortization and depreciation of intangible assets acquired through business combinations (124) (113) Income from
Slide 17: Revenues
Revenues % In millions of euros - IFRS 2017 2018 Change % Organic change Universal Music Group 5,673 6,023 + 6.2 % + 10.0 % Canal+ Group 5,198 5,166 - 0.6 % - 0.3 % Havas Group 1,211 2,319 na na Other businesses* 436 424 - 2.6 % + 4.3 % TOTAL VIVENDI 12,518 13,932 + 11.3 % + 4.9 % * Including elimin
Slide 18: Adjusted earnings before interest and income taxes (EBITA)
Adjusted earnings before interest and income taxes (EBITA) In millions of euros 2017 2018 % Organic change Universal Music Group 761 902 + 22.1 % Canal+ Group 300 400 + 32.8 % Havas Group 111 215 na Other businesses (203) (229) na TOTAL VIVENDI 969 1,288 + 24.7 % Combined General Meeting of Sharehol
Slide 19: UMG: faster growth and improved profitability
UMG: faster growth and improved profitability Significant increase of streaming and Revenues evolution EBITA growth subscriptions revenues (in millions of euros and organic growth*) (in millions of euros and organic growth*) (in millions of euros and organic growth*) +37.3% +10.0% +22.1% +10.0% +35.
Slide 20: Canal+ Group: recovery of the activity in France and continuous growth internationally
Canal+ Group: recovery of the activity in France and continuous growth internationally Sustained growth Improvement of EBITA of the subscriber base before restructuring charges (in thousands) (in millions of euros and organic growth) +654 +21.8% +600 16,248 14,994 15,594 +29.5% Mainland France Inter
Slide 21: Havas Group: Strong momentum in the second half of 2018
Havas Group: Strong momentum in the second half of 2018 Sequential organic Net revenues breakdown by Margin**/Net revenues net revenues growth* division improvement Media 11.6% H2 2018 +2.7% 37% Creation 10.7% 46% 9.9% 10.9% H1 2018 -2.9% Havas Health & You 17% * At constant currency and perimeter *
Slide 22: Consolidated balance sheet
Consolidated balance sheet Assets December 31, Equity and liabilities December 31, (in billions of euros) 2018 (in billions of euros) 2018 Goodwill 12.4 Consolidated equity* 17.5 Intangible and tangible assets 5.0 Provisions 1.9 Financial investments 6.0 Net deferred tax liabilities 0.1 Net cash pos
Slide 23: Changes in cash position
Changes in cash position -0.6 -0.3 0.2 +2.3 +1.1 (2.3) Net debt as of CFFO Disposal of Dividends paid to Interest, taxes & Net cash as of December 31, 2017 financial assets shareholders others December 31, 2018 (in billions of euros) Combined General Meeting of Shareholders - April 15, 2019 23
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Slide 25: Balance sheet
Balance sheet Assets December 31, Equity and liabilities December 31, (in billions of euros) 2018 (in billions of euros) 2018 Long term investments 20.6 Equity 19.8 Receivables 2.6 Provisions 0.6 Cash and marketable securities 3.0 Liabilities 5.8 TOTAL 26.2 TOTAL 26.2 Combined General Meeting of Sha
Slide 26: Statement of earnings
Statement of earnings In millions of euros 2018 Operating income 79 Operating expenses -235 Loss from operations - 156 Financial income 1,077 Financial amortization - 1,055 Other financial results - 86 Financial loss - 64 Exceptional income from capital transactions 887 Exceptional income from non-c
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Slide 28: Allocation of 2018 earnings
Allocation of 2018 earnings It will be proposed to the Annual Shareholders’ Meeting the payment of an ordinary dividend of €0.50 per share with respect to fiscal year 2018, i.e. +11.1% vs. 2017 Dividend per share (in euro) + 11.1% 0.50 0.45 2017 2018 Retained earnings after the dividend payment woul
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Slide 30: First quarter 2019 revenues
First quarter 2019 revenues % % In millions of euros - IFRS Q1 2018 Q1 2019 Change Organic change Universal Music Group 1,222 1,502 + 22.9 % + 18.8 % Canal+ Group 1,298 1,252 - 3.6 % - 3.3 % Havas Group 506 525 + 3.8 % + 0.1 % Editis* na 89 Other businesses** 98 91 TOTAL VIVENDI 3,124 3,459 + 10.7 %
Slide 31: Canal+ Group First quarter 2019 revenues
Canal+ Group First quarter 2019 revenues % % In millions of euros - IFRS Q1 2018 Q1 2019 Change Organic change TV International 386 401 + 3.9% + 4.7 % TV mainland France 801 761 - 5.0 % - 5.0 % Studiocanal 111 90 - 19.4 % - 19.3 % Revenues – Canal+ Group 1,298 1,252 - 3.6 % - 3.3 % Combined General
Slide 32: Universal Music Group First quarter 2019 revenues
Universal Music Group First quarter 2019 revenues % % In millions of euros - IFRS Q1 2018 Q1 2019 Change Organic change Recorded music 980 1,208 + 23.3 % + 19.2 % Subscriptions and streaming 557 737 + 32.4 % + 28.1 % Other digital sales (mainly downloads) 121 104 - 14.1 % - 18.2 % Physical sales 155
Slide 33: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 33
Slide 34: Maxime Saada
Maxime Saada Chairman of the Management Board, Canal+ Group Combined Shareholders' Meeting - April 15, 2019 34
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Slide 36: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 37 37
Slide 37: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 38
Slide 38: Olivier Nusse
Olivier Nusse Chairman of the Management Board, Universal Music France Combined Shareholders' Meeting - April 15, 2019 39
Slide 39: Worldwide market
WORLDWIDE MARKET Source IFPI +9.7% +32.9% Increase in income 47% Streaming’s share of 255 Increase in income Million Streaming from paid streaming income subscribers Billions of $ 14.3 14.8 16.2 17.4 19.1 2014 2015 2016 2017 2018 40
Slide 40: Worldwide market 2018
WORLDWIDE MARKET 2018 Source IFPI Europe +0.1% North America +14% 3rd - UK +3.1% 1st - US +15% 4th - Germany -9.9% 9th - Canada +0.5% 5th - France +1.4% Latin America Asia & Australasia +16.8% +11.7% 10th - Brazil +15.4% 2nd - Japan +3.4% Chile +16.3% 6th - South Korea +17.9% Mexico +14.7% 7th - Chi
Slide 41: Universal
UNIVERSAL NES
Slide 42: Billie Eilish
Billie Eilish 43
Slide 43: Top artists 2018
TOP 10 ARTISTS 2018 Source IFPI 01 DRAKE 02 BTS 03 04 05 ED SHEERAN POST MALONE EMINEM 06 07 08 09 10 QUEEN IMAGINE DRAGONS ARIANA GRANDE LADY GAGA BRUNO MARS 44
Slide 44: Proportion of Universal Music titles in the Top 200
50% 10 Proportion of Number of Universal Music Universal Music titles in the Top 200 albums in the Top 20 Streams. 45
Slide 45: Universal Music Group
‘ec UNIVERSAL NES, UNIVERSAL MUSIC GROUP Vi fot STR A arlisles
Slide 46: Talents, concerts, merchandising, publishing
CONCERTS CREATION DE CONTENUS. ©#>*-- MERCHANDISING * & eCOMMERCE DEVELOPPEMENT INTERNATIONAL ® STRATEGIE DIGITALE SYNCHRO mar © UM&BRANDS PUBLISHING 47
Slide 47: Universal Music France
a. tN o. ’ | 15 Nun 20479 TOF =; ES Sac ED ‘ iste VDE CLOTURE . MATIONALE bey ~ BILLETTERIE SUR LNR. FR" IG i, ad = UNIVERSAL MUSIC FRANCE
Slide 48: Universal Music Group
‘ec UNIVERSAL NES, UNIVERSAL MUSIC GROUP Vi fot STR A arlisles 49
Slide 49: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 51
Slide 50: François Laroze
François Laroze Chief Financial Officer, Havas Group Combined Shareholders' Meeting - April 15, 2019 52
Slide 51: A world leader in marketing & communication
A world leader in marketing & communication 20,000 Talents 30% 35% 35% Rest of Europe 7% North APAC America 20% 20% France France 2% Africa Middle East 6% LATAM €2.2 Bn LATAM Revenue
Slide 52: Our businesses
Our businesses 46% 17% * 37% * * Creative business Media business Healthcare & Wellness business * % of group’s revenue
Slide 53: New business
New business \ A) Y . S$ SAVENCIA De BEERS BIZARD obbvie Ei Generate FROMAGE & DAIRY < 6 teva Vest, Pvc AD Catela >> z5 ACCOR W Novartis TherapeuticsMD Astrazeneca?
Slide 54: Our creativity is recognised and rewarded
Our creativity is recognised and rewarded 1121 Total creative ÂÂÂÂ awards in 2018 48 Lions in 2018 Grand Prix - Titanium 22 Agency of the Year accolades 17 Grand Prix Awarded to Palau Pledge campaign. And the Grand Prix - Global Sustainable Goals Champion for Humanity recognition by the UN Grand Pri
Slide 55: A positive economic context
A positive economic context +12.6% €700 Bn 2017 2018 2019* Ad spend in 2018 Ad Spend growth will reach +3.8% Digital continued to power ad in 2019 spend growth and grew globally by 12.6% in 2018 *forecast 58
Slide 56: A challenging environment
A challenging environment
Slide 57: 1. A meaningful positioning for brands
1. A meaningful positioning for brands AT HAVAS WE MAKE A MEANINGFUL DIFFERENCE TO BRANDS, BUSINESSES AND PEOPLE 60
Slide 58: 2. Talent at the core our strategy
2. Talent at the core our strategy 61
Slide 59: 3. Our village organization
3. Our village organization HAVAS VILLAGE CREATIVE MEDIA CLIENT HEALTHCARE & WELLNESS
Slide 60: 3. Our village organization
3. Our village organization 63
Slide 61: 2. Belonging to Vivendi
2. Belonging to Vivendi 64
Slide 62: Vivendi cooperation
VIVENDI COOPERATION 2018 26 14 Deals Markets 2017 19 9 Deals Markets 65
Slide 63: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 66
Slide 64: Pierre Conte
Pierre Conte Chief Executive Officer, Editis Combined Shareholders' Meeting - April 15, 2019 67
Slide 65: An enviable heritage
An enviable heritage 68
Slide 66: 2,500 enthusiastic employees
LONG-STANDING EXPERIENCE 2,500 ENTHUSIASTIC EMPLOYEES 69
Slide 67: Strong market positions
STRONG MARKET POSITIONS No. 1 in Education No. 2 in General Literature No. 1 in Thrillers No. 2 in Adolescent No. 1 in History No. 2 in Distribution No. 1 in Paperbacks 70
Slide 68: Prestigious publishing houses
PRESTIGIOUS PUBLISHING HOUSES 71
Slide 69: 16,000 authors
16,000 AUTHORS Best French Best Foreigh 72
Slide 70: Wonderful creativity in 2018
WONDERFUL CREATIVITY IN 2018 April 5, 2019 73
Slide 71: An exceptional project with Vivendi
An exceptional project with Vivendi 74
Slide 72: A guaranteed attractive project of the best publishers and writers
A GUARANTEED ATTRACTIVE PROJECT OF THE BEST PUBLISHERS AND THE BEST WRITERS 75
Slide 73: At the forefront of transformation of the model: printing on demand
AT THE FOREFRONT OF TRANSFORMATION OF THE MODEL PRINTING ON DEMAND 76
Slide 74: The marketing revolution underway
THE MARKETING REVOLUTION UNDERWAY 77
Slide 75: The new realm of the voice: audiobooks, podcasts
THE NEW REALM OF THE VOICE AUDIOBOOKS - PODCASTS 78
Slide 76: A first creative synergy
A FIRST CREATIVE SYNERGY 79
Slide 77: From publishing to broadcasting to publishing
FROM PUBLISHING TO BROADCASTING TO PUBLISHING “THE SOURCE OF STORIES AND CHARACTERS” 81
Slide 78: French, the 3rd spoken language in the world in 2050
FRENCH, THE 3RD SPOKEN LANGUAGE IN THE WORLD IN 2050 FOCUS ON AFRICA 82
Slide 79: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 83
Slide 80: Stéphane Roussel
Stéphane Roussel Chairman and Chief Executive Officer, Gameloft Combined Shareholders' Meeting - April 15, 2019 84
Slide 81: Gameloft in figures
GAMELOFT IN FIGURES HIT GAMES BEAUTIFUL AMBITIONS REVENUE: € 293M 2 games in iOs Top 10 Prestigious partenerships MAU: 98M 1.8M 2018 greatest success Strategic acquisition Games downloaded every day (2018 Source) Back to consoles!
Slide 82: Gameloft
GAMELOFT | 'spired Indie Games
Slide 83: Gameloft
GAMELOFT | 'spired Indie Games
Slide 84: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 89
Slide 85: Simon Gillham
Simon Gillham Chairman, Vivendi Village Combined Shareholders' Meeting - April 15, 2019 90
Slide 86: 2015 - 2019: the major stages of Vivendi Village
2015 - 2019: the major stages of Vivendi Village Combined Shareholders' Meeting - April 15, 2019 91
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Slide 88: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 94 94
Slide 89: Vivendi Village in Africa
Vivendi Village in Africa Combined Shareholders' Meeting - April 15, 2019 95
Slide 90: Vivendi Village in Africa
Vivendi Village in Africa Combined Shareholders' Meeting - April 15, 2019 96
Slide 91: Vivendi Village in Africa
Vivendi Village in Africa Combined Shareholders' Meeting - April 15, 2019 97
Slide 92: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 98
Slide 93: Cathia Lawson-Hall, Philippe Bénacin
Cathia Lawson-Hall Chairwomanof the Audit Committee Philippe Bénacin Chairman of the Corporate Governance, Nominations and Remuneration Committee Combined Shareholders' Meeting - April 15, 2019 99
Slide 94: Cathia Lawson-Hall
Cathia Lawson-Hall Chairwoman of the Audit Committee Combined Shareholders' Meeting - April 15, 2019 100
Slide 95: Philippe Bénacin
Philippe Bénacin Chairman of the Corporate Governance, Nominations and Remuneration Committee Combined Shareholders' Meeting - April 15, 2019 101
Slide 96: Stricter requirements in 2019 for the members of the Management Board and its Chairman
Stricter requirements in 2019 for the members of the Management Board and its Chairman Restriction of the terms of allocation of performance shares Toughening of the conditions governing severance payments Differentiation of the criteria for bonuses and performance shares Combined Shareholders' Meet
Slide 97: Policy of remuneration of the Chairman of the Management Board – 15th resolution
Policy of remuneration of the Chairman of the Management Board – 15th resolution Période 2014-2018 : Combined Shareholders' Meeting - April 15, 2019 103
Slide 98: Policy of remuneration of the members of the Management Board for 2019
Policy of remuneration of the members of the Management Board and of its Chairman for the fiscal year 2019 Chairman of the Management Board (15th resolution) Members of the Management Board (16th resolution) Combined Shareholders' Meeting - April 15, 2019 104
Slide 99: Remuneration of the members of the Management Board for fiscal year 2018
Remuneration of the members of the Management Board and of its Chairman for the fiscal year 2018 Chairman of the Management Board (7th resolution) Members of the Management Board (8th to 13th resolutions) Combined Shareholders' Meeting - April 15, 2019 105
Slide 100: Remuneration of the Chairman and members of the Supervisory Board
Remuneration of the Chairman and members of the Supervisory Board Remuneration of the Chairman of the Supervisory Board for the fiscal year 2018 (5th and 6th resolutions) Policy of remuneration of the members of the Supervisory Board and of its Chairman for the fiscal year 2019 (14th resolution) Com
Slide 101: Continuation of the conditional commitments for members of the Management Board
Continuation of the conditional commitments for the benefit of members of the Management Board and its Chairman Conditional severance commitment for the benefit of the Chairman of the Management Board (17th resolution) – Enhanced conditions (3rd resolution) Conditional commitments in respect of the
Slide 102: Nomination and renewal of members of the Supervisory Board
Nomination and renewal of members of the Supervisory Board Nomination of Mr. Cyrille Bolloré (25th resolution) Renewal of Mr. Dominique Delport (26th resolution) Combined Shareholders' Meeting - April 15, 2019 108
Slide 103: Employee share ownership
Employee share ownership Capital increase reserved for employees in France (32nd resolution) Capital increase reserved for international employees (33rd resolution) Combined Shareholders' Meeting - April 15, 2019 109
Slide 104: Cathia Lawson-Hall
Cathia Lawson-Hall Chairwoman of the Audit Committee Combined Shareholders' Meeting - April 15, 2019 110
Slide 105: Combined Shareholders' Meeting - April 15, 2019
Combined Shareholders' Meeting - April 15, 2019 111