Vivendi Se · EURONEXT:VIV
Vivendi — Q3 2014 Earnings Presentation
26 slides from Vivendi's earnings presentation, Nov 14, 2014
Slide 1: Third Quarter 2014 Results
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 Nov.14, 2014 THIRD QUARTER 2014 RESULTS IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimers at the end of this presentation
Slide 2: Highlights
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 HIGHLIGHTS SFR disposal process on track Closing expected on November 27, 2014 Signing of GVT sale to Telefonica Brazil on September 18, 2014 Closing expected in Q2 2015 Media operations generating earnings in line with expectations
Slide 3: Scope of Consolidation and Main Currencies
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES In compliance with IFRS 5, GVT (from Q3 2014) , SFR (from Q1 2014) as well as Maroc Telecom and Activision Blizzard (from Q2 2013) have been reported as discontinued operations. In addition, Vivendi
Slide 4: Key Financial Metrics at End September 2014
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 KEY FINANCIAL METRICS AT END SEPTEMBER 2014 % Change % Underlying change* Year-on-year Year-on-year Revenues: € 7,118 m – 2.4 % – 1.1 % EBIT: € 674 m + 34.0 % Net Income, group share: € 2,752 m + 95.0 % EBITA: € 765 m – 2.5 % + 2.6 %
Slide 5: Consolidated P&L
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 CONSOLIDATED P&L In euro millions - IFRS 9M 2013 9M 2014 Change % Revenues 7,293 7,118 -175 - 2.4% Cost of revenues (4,267) (4,243) Margin from operations 3,026 2,875 -151 - 5.0% Selling, general and administrative expenses excluding amortiza
Slide 6: Adjusted P&L
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 ADJUSTED P&L % change In euro millions - IFRS 9M 2013 9M 2014 Change % change at constant perimeter and constant currency* Revenues 7,293 7,118 - 175 - 2.4% - 1.1% EBITDA 1,119 1,079 - 40 - 3.6% - 1.2% Depreciation and Amortization* (223) (22
Slide 7: Revenues by Activities
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 REVENUES BY ACTIVITIES Constant Constant perimeter In euro millions - IFRS 9M 2013 9M 2014 Change currency and constant currency * Canal+ Group 3,857 3,967 + 2.8% + 2.8% + 0.5% Universal Music Group 3,398 3,097 - 8.9% - 5.8% - 3.5% Other 51 6
Slide 8: EBITA by Activities
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 EBITA BY ACTIVITIES Constant Constant perimeter In euro millions - IFRS 9M 2013 9M 2014 Change currency and constant * currency * Canal+ Group 647 626 - 3.2% - 3.3% - 3.9% Universal Music Group 255 274 + 7.6% + 11.3% + 29.1% Other (57) (87) C
Slide 9: Consolidated Balance Sheet, as of Sept. 30, 2014
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 CONSOLIDATED BALANCE SHEET, AS OF SEPT. 30, 2014 In euro millions Assets Equity and Liabilities Goodwill 9,144 Consolidated equity * 19,929 Intangible and tangible assets 4,939 Provisions 3,001 Equity affiliates and other investments 1,637 Ne
Slide 10: Net Debt at End September 2014
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 NET DEBT AT END SEPTEMBER 2014 Discontinued operations Net Debt CFFO Capex, Interest & Distribution Cash Acquisitions, Net Debt SFR/GVT Reclassification Dec. 31, before net tax to collateralization Disposals outflows of SFR /GVT Sep. 30, 2013
Slide 11: Next Event: Full Year 2014 Results
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 NEXT EVENT Full year 2014 results February 27, 2015 11
Slide 12: 9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4
Slide 13: Appendices
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 APPENDICES Details of Business Operations: slides 14-17 Details for Discontinued Operations: slides 18-21 Detailed Vivendi Financial Results: slides 22-24 Glossary, Disclaimer & Contacts: slides 25-26
Slide 14: Canal+ Group Highlights
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 Constant In euro millions - IFRS 9M 2013 9M 2014 Change perimeter HIGHLIGHTS and constant currency * ■ Global subscription portfolio at 14.8m, +605k yoy, Revenues 3,857 3,967 + 2.8% + 0.5% due to strong performance in Africa and Vietnam, as w
Slide 15: Canal+ Group Subscribers and KPIs
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 In '000 September 30, 2013 September 30, 2014 Change Group individual subscribers 10,074 10,611 + 537 Mainland France 5,983 6,014 + 32 International 4,091 4,596 + 505 Poland 2,216 2,154 - 62 Overseas 479 492 + 13 Africa 893 1,272 + 379 Vietna
Slide 16: Universal Music Group Highlights
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 Constant perimeter In euro millions - IFRS 9M 2013 9M 2014 Change and constant HIGHLIGHTS currency * Revenues 3,398 3,097 - 8.9% - 3.5% ■ Revenues down 3.5%* due to lower recorded Recorded music 2,733 2,447 - 10.5% * - 4.5% music sales Music
Slide 17: UMG Recorded Music Revenues and Q4 2014 Releases
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 Constant Recorded Music Revenues 9M 2013 9M 2014 perimeter and In euro millions - IFRS 9M 2014 constant Europe 37% 38% currency * North America 43% 41% Recorded music 2,447 - 4.5% Asia 12% 13% Physical sales 874 - 12.4% Digital music sales 1,
Slide 18: SFR Highlights
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 In euro millions - IFRS 9M 2013 9M 2014 Change (1)(2) HIGHLIGHTS Revenues 7 616 7 396 -2.9% ■ Slowdown of revenues erosion with revenues down 2.9%(2) Retail 5 156 4 831 -6.3% (-4.2% on a comparable basis), and improving trends in Q3 (2) B to
Slide 19: SFR Mobile and Internet Group Data
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 MOBILE – GROUP DATA 9M 2013 9M 2014 Change Mobile Customers (in’000)* 21,144 21,414 +1.3% Acquisition costs (in €m) 303 261 (41) Retention costs (in €m) 386 351 (35) INTERNET – GROUP DATA 9M 2013 9M 2014 Change Internet Customer base (in ‘000
Slide 20: GVT Highlights
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 Constant In euro millions - IFRS 9M 2013 9M 2014 Change currency HIGHLIGHTS Revenues 1,297 1,307 + 0.8% + 12.7% ■ 12.7%* revenue growth mainly driven by continued Retail & SME 1,180 1,203 + 2.0% + 14.1% growth in the Retail & SME despite soft
Slide 21: GVT Key Operating Data
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 September September In '000 Change In BRL millions - IFRS 9M 2013 9M 2014 Change 30, 2013 30, 2014 Retail & SME - Homes passed 10,108 11,005 + 8.9% Total Revenues 3,599 4,057 + 12.7% Retail & SME 3,274 3,734 + 14.1% Retail & SME - Revenue Gen
Slide 22: Revenues / EBITDA / EBITA for Q3 & 9M
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 REVENUES / EBITDA / EBITA FOR Q3 & 9M Constant Constant Q3 2013 Q3 2014 Change Constant perimeter Revenues 9M 2013 9M 2014 Change Constant perimeter and currency and constant In euro millions - IFRS currency constant currency * currency * 1,2
Slide 23: Interest & Income Tax
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS 9M 2013 9M 2014 Interest (201) (65) Interest expense on borrowings (385) (224) Average interest rate on borrowings (%) 3.13% 2.66% Average outstanding borrowings (in euro bill
Slide 24: Reconciliation of Earnings to Adjusted Net Income
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME In euro millions - IFRS 9M 2013 9M 2014 % change Earnings attributable to Vivendi SA shareowners (*) 1,411 2,752 + 95.0% Amortization of intangible asset
Slide 25: Glossary
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 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 that they are relevant indicators of the group’s o
Slide 26: Important Legal Disclaimer / Contacts
9 M 2 0 1 4 R e s u l t s – N o v e m b e r 1 4 , 2 0 1 4 IMPORTANT LEGAL DISCLAIMER / CONTACTS 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,