Vivendi Se · EURONEXT:VIV
Vivendi — Shareholder Meeting (June 2014)
40 slides from Vivendi's shareholder meeting presentation, Jun 24, 2014
Slide 1: Agenda for the day
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Agenda for the day ■ Opening of the meeting ■ Vivendi today Jean-René Fourtou ■ 2013-2014 : repositioning of the group Jean-François Dubos ■ Numericable-SFR Jean-Yves Charlier ■ Earnings presentation Herv
Slide 2: Combined Shareholders' Meeting, Paris, June 24, 2014
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 June 24, 2014 Jean-François Dubos Chairman of the Management Board COMBINED SHAREHOLDERS' MEETING PARIS – Tuesday, June 24, 2014 2
Slide 3: Content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Content 1/ Challenges addressed 2/ SFR: reasons for our decision 3/ Maximization in value of other assets 4/ Vivendi’s trump cards to accelerate development 5/ Our commitment and influence as a
Slide 4: Challenges addressed: group refocused on media and content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 1/ Challenges addressed Completed strategic review that has achieved its objectives A group with more clarity refocused on media and content Canal+ Group Universal Music Group GVT Maximization o
Slide 5: Major disposals to support new strategy
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 1/ Challenges addressed Major disposals to support new strategy, to reduce debt and deliver returns to shareholders Exclusive Altice/Numericable offer selected for combination with SFR at total price in
Slide 6: Financial capacities restored
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 1/ Challenges addressed Financial capacities restored Net debt of €11.1 billion as at December 31, 2013 Net cash balances of about €2 billion expected at end 2014 after disposals and returns to shareh
Slide 7: Favorable trend in share price over two years
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 1/ Challenges addressed Favorable trend in share price dividends reinvested in the last two years … +120% +100% +80% Vivendi CAC 40 +60% +40% +20% +0% -20% 19-avr.-12 16-juil.-12 12-oct.-12 8-janv.-13 6-a
Slide 8: Share price since 2002 and dividends paid
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 1/ Challenges addressed … And since summer 2002. With more than €15 billion in dividends paid, Vivendi = 8th largest CAC company in terms of shareholders distribution +160% +140% +120% Vivendi +100% CAC 4
Slide 9: Content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Content 1/ Challenges addressed 2/ SFR: reasons for our decision 3/ Maximization in value of other assets 4/ Vivendi’s trump cards to accelerate development 5/ Our commitment and influence as a m
Slide 10: SFR: reasons for our decision, two interested companies
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 2/ SFR: reasons Deux for our An groupes aggressive decisionpar SFR intéressés player Two companies interested in SFR SFR, a stock market flotation proposal examined in summer 2013 and announced in Novem
Slide 11: Rigorous and professional process
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Une 2/ SFR: Angouvernance reasons Deux for our groupes aggressive rigoureuse decision intéressés player par SFR Rigorous and professional process Four meetings of the Supervisory Board within 6 weeks
Slide 12: Supervisory Board decision based on four criteria
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 2/ SFR: reasons Deux fordes Calendrier An groupes our aggressive decisionpar intéressés différentes player étapes SFR in 2014 The Supervisory Board made unanimous decision based on four criteria 1. Qual
Slide 13: A very attractive valuation
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 2/ SFR: reasons Deux Une fordes Calendrier our Anvalorisation groupes aggressive decision intéressés différentes player très par étapes SFR in 2014 attractive A very attractive valuation Total valuation
Slide 14: The Altice/Numericable offer, a relevant choice
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 2/ SFR: reasons for our decision The Altice/Numericable offer, a relevant choice for Customers: an enhanced offer of fixed and mobile broadband services; developments in quad-play and in new usages Sh
Slide 15: Content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Content 1/ Challenges addressed 2/ SFR: reasons for our decision 3/ Maximization in value of other assets 4/ Vivendi’s trump cards to accelerate its development 5/ Our commitment and influence as
Slide 16: The sale of Maroc Telecom
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 3/ Maximization in value of other assets The sale of Maroc Telecom An asset that no longer matched Vivendi’s new core business and which was impossible to own 100% Very competitive Moroccan telecoms m
Slide 17: The sale of Activision Blizzard
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 3/ Maximization of the value of other assets The sale of Activision Blizzard Governance and management constraints A business dependent on the success of some flagship games with no presence in mobile
Slide 18: Content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Content 1/ Challenges taken up 2/ SFR: reasons for our decision 3/ Maximization in value of other assets 4/ Vivendi’s trump cards to accelerate development 5/ Our commitment and influence as a me
Slide 19: Vivendi's trump cards to speed up its development
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 4/ Vivendi's trump cards to accelerate development Vivendi's trump cards to speed up its development (2/3) Leading positions in music, TV-channels, movies and TV series… • World’s no. 1 in recorded • Firs
Slide 20: A group present on all continents
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 4/ Vivendi's trump cards to accelerate development A Group present on all continents France Rest of Europe €4.5 billion €2.5 billion (37% of total (21% of total revenue) revenue) North America €2.1 billio
Slide 21: Several major acquisitions in the last two years
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 4/ Vivendi’s trump cards to accelerate development Several major acquisitions in the last two years July September September November Partnership in Acquisition of Acquisition of Acquisition of Poland bet
Slide 22: High-value holdings in innovative platforms
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 4/ Vivendi's trump cards to accelerate development High-value holdings in innovative platforms 100% • Subscription video-on-demand 100% • Electronic ticketing 100% • Music streaming service in Brazil 94%
Slide 23: Content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Content 1/ Challenges addressed 2/ SFR: reasons for our decision 3/ Maximization in value of other assets 4/ Vivendi’s trump cards to accelerate development 5/ Our commitment and influence as a m
Slide 24: Social and Environmental Responsibility policy integrated into strategy
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 5/ Our commitment and influence as a media group Social and Environmental Responsibility policy fully integrated into strategy Three pioneering and strategic Social and Environmental Responsibility chal
Slide 25: Active participation in the public debate and CSR
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 5/ Our commitment and influence as a media group Active participation in the public debate and CSR The CulturesWithVivendi site, contribution of the cultural and media industries to sustainable developm
Slide 26: Content
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Content 1/ Challenges addressed 2/ SFR: reasons for our decision 3/ Maximization in value of other assets 4/ Vivendi’s trump cards to accelerate development 5/ Our commitment and influence as a m
Slide 27: Constant dialogue with individual shareholders
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 6/ Constant dialogue with individual shareholders A Shareholders’ Club offering: Subject-based and financial meetings Training with Ecole de la Bourse (“Stock Exchange College”) Pre-premieres of f
Slide 28: 2013 Results
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 June 24 2014 HERVE PHILIPPE Chief Financial Officer 2013 RESULTS 28
Slide 29: 2013 Key Results
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 2013 KEY RESULTS Revenues: € 22,135 m of which Media & Content € 11,961 m +10.1%* Earnings before Interest, Taxes, Depreciation & Amortization (EBITDA): € 4,928 m of which Media & Content € 2,162 m +1
Slide 30: Revenues
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 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% -
Slide 31: Adjusted EBITA
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 ADJUSTED EARNINGS BEFORE INTEREST AND TAXES (EBITA) In euro millions - IFRS 2012 2013 Media & Content 1,563 1,360 Canal+ Group 663 611 Universal Music Group 526 511 GVT 488 405 Other (14) (80) Holding & C
Slide 32: Adjusted Profit and Loss Account
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 ADJUSTED PROFIT AND LOSS ACCOUNT In euro millions - IFRS 2012 2013 Revenues 22,577 22,135 EBITDA 5,550 4,928 EBITA 3,163 2,433 Income from equity affiliates (38) (33) Income from investment 7 67 Interest
Slide 33: Consolidated Profit and Loss Account
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 CONSOLIDATED PROFIT AND LOSS ACCOUNT In euro millions - IFRS 2012 2013 Revenues 22,577 22,135 EBITA 3,163 2,433 Amortization and impairment losses on intangible assets (1,196) (2,899) acquired through bus
Slide 34: Net Cash Generation Improved in 2013
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 NET CASH GENERATION IMPROVED IN 2013 In euro millions - IFRS 2012 2013 Canal+ Group 476 478 Universal Music Group 472 585 GVT (326) (91) Other (8) (80) Holding & Corporate (94) (89) Media & Content 520 80
Slide 35: Consolidated Cash Flow Statement: Net Debt Reduction
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 CONSOLIDATED CASH FLOW STATEMENT: NET DEBT REDUCTION EXCEEDING €2.3 BILLION In euro millions - IFRS 2012 2013 Net cash provided by operating activities of continuing operations 4,832 3,823 + Net cash prov
Slide 36: Consolidated Balance Sheet
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 CONSOLIDATED BALANCE SHEET Assets 2012 * 2013 Liabilities 2012 * 2013 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 af
Slide 37: Significant Net Debt Reduction
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 SIGNIFICANT NET DEBT REDUCTION Net debt Operating Interest Dividends Asset Canal+ Net debt Maroc Net debt, December 31, cash flows and taxes, paid to disposals France December 31, Telecom adjusted for 201
Slide 38: Vivendi SA Equity
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 VIVENDI SA EQUITY Allocation of In euro millions 12/31/2013 01/01/2014 2013 earnings Share capital 7,368 7,368 Additional paid-in capital 13,194 (2,004) 11,190 Share premium 12,439 (1,249) 11,190 Merger 5
Slide 39: Proposed Distribution for 2013
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 PROPOSED DISTRIBUTION FOR 2013 Distribution per share: € 1.00 Amount equivalent to 2011 and 2012 dividends 50 cents relating to the group’s 2013 economic performance 50 cents relating to cash retu
Slide 40: Important disclaimers
C o m b i n e d S h a r e h o l d e r s ’ M e e t i n g – T u e s d a y , J u n e 2 4 , 2 0 1 4 Important disclaimers Cautionary Note Regarding Forward Looking Statements. This presentation contains forward-looking statements with respect to the financial condition, results of operations, business,