Slide 1: First Quarter 2003 Operating Earnings
Jacques Senior Executive Vice President & Chief Financial Officer First Quarter 2003 Operating Earnings
Slide 2: Important Legal Disclaimer
Important Legal Disclaimer This presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking
Slide 3: First Quarter 2003: Strong Operating Performance
First Quarter 2003: Strong Operating Performance Net loss Adjusted net loss (1) 1Q2002 -815 -182 1Q2003 -319 -56 Pro forma operating income (2) 1Q2002 607 1Q2003 844 Substantial reduction in net loss... ....thanks to strong pro forma operating income growth First quarter 2002 First quarter 2003 In m
Slide 4: Operating income details by business
Cegetel / SFR Maroc Telecom UMG VUE Canal+ Group VU Games Holding & Others Holding and Corporate 1Q 2002 PF 359 109 27 276 -57 -1 -106 -492 1Q 2003 465 138 -28 213 158 -24 -78 -369 Details by business (pro forma at actual exchange rates): First Quarter 2003 Operating Income Cegetel / SFR Maroc Telec
Slide 5: Reconciliation of net loss to adjusted net loss
Total 1Q02 (182) (815) 317 50 - - (67) 66 267 333 (56) (25) 34 (81) 283 (319) Total 1Q03 (378) (316) (104) 42 316 104 10 430 Express-Expansion disposal (-104), Canal+ Technologies disposal (+15), Other (+8) Comments on first quarter 2003 USAi warrants (+253) and Veolia Environnement ORA redemption p
Slide 6: Consolidated Cash Flow
Consolidated Cash Flow - First Quarter 2003 Cash flow from operations (1) of &128; 0.9 billion was significantly better than expected. Net cash provided by operating activities net of capital expenditure and before financing costs and taxes. 2002 cash flow includes VUE on a pro forma basis as if the
Slide 7: Currency impact
Dec '01 Jan '02 Feb '02 Mar '02 Apr '02 May '02 Jun '02 Jul '02 Aug '02 Sep '02 Oct '02 Nov '02 Dec '02 Jan '03 Feb '03 Mar '03 Apr '03 May '03 Jun '03 East 0.8777 0.8661 0.87565 0.87775 0.893 0.9209 0.9706 1.00535 0.972 0.98185 0.97585 0.99165 1.03 1.0856 1.07985 1.06505 1.10325 1.1838 1.18299 Curr
Slide 8: 2003 Management Plan
2003 Management Plan Vivendi Universal reiterates its full year 2003 operating guidance, despite the negative impact of the euro/dollar exchange rate: Very strong growth in operating income Strong improvement in cash flow from operations Return to profit excluding non-recurring items and goodwill Co
Slide 9: Divestiture Program Update
200 190 257 871 325 43 135 40 209 Divestiture Program Update Estimated Cash (Gross) Closing Date Estimated Debt Estimated Proceeds (in millions of euros) Total closed as of June 13 , 2003 &128; 2,270m &128; 1,551m &128;719m February, 2003 February, 2003 February, 2003 April, 2003 May, 2003 May, 2003
Slide 10: Divestiture of US Assets (1)
Divestiture of US Assets (1) VU is engaged in a methodical process to divest VUE and VU Games at the right value: A well-thought out management decision In the best interest of VU's shareholders and the development of VU's strategy VUE: Unique, complementary assets Leading film studios, TV programmi
Slide 11: Divestiture of US Assets (2)
Divestiture of US Assets (2) VU is not handicapped in its ability to sell its VUE assets and potential buyers will be able to operate them without interference Multiple options for moving forward with the bidders: No forced time line The process is progressing smoothly and is controlled by VU Altern
Slide 12: Liquidity Update
4Q 2002 1Q 2003 2Q 2003 3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004 Case 1 5 1.8 4 4.7 6.1 4 3.9 3.6 4 Case 2 0 0 0 -1.9 -1.5 -1 -0.7 -0.8 -0.8 Liquidity Update VE Exchangeable (&128;1.9bn) Cegetel Investment (&128;2.7bn) Asset Divestitures +&128;2bn Liquidity Available End of Quarter at VU SA L
Slide 13: Reduction of French GAAP Net Debt
Reduction of French GAAP Net Debt Debt of Cos > 50% Owned Net Debt/EBITDA Net Debt/EBITDA (proportional) Net Debt/EBITDA (CASH POOL) Q2 2002 18.8 16.3 Q3 2002 18.6 15 Q4 2002 12.3 3.1 4.3 5.6 4 1Q 2003 15.3 2.9 4.2 5.4 2Q 2003 13.5 2.8 4.1 5.6 0 3Q 2003 11.4 2.9 4 5 1.1 4Q 2003 9.5 2.2 3 3.6 1.5 1Q
Slide 14: Actions taken to strengthen the Group's debt
&128; 1.2 billion 7-year High-Yield bond (signed in April 2003): $ 935 million, 9.25% margin &128; 325 million, 9.5% margin (9.75% yield) Non callable for 4 years &128; 2.5 billion 3-year bank facility to reimburse short-term &128;1.5 billion bank debt and to replace the &128;1bn back up credit line
Slide 15: Details on Accounts
Details on First Quarter 2003 Accounts
Slide 16: Pro Forma Segment Revenues
Pro Forma First Quarter 2003 Segment Revenues In millions of euros Actual 1,781 357 1,100 1,446 1,166 106 5,956 276 Actual change Actual 4% 1% - -19% 5% - -3% - -15% - -3% - -22% Cegetel/SFR (70%)* Maroc Telecom (35%) Universal Music Group (92%) Vivendi Universal Entertainment (86%) Canal+ Group and
Slide 17: Segment Operating Income
In millions of euros First Quarter 2003 Segment Operating Income Actual 465 138 (28) 213 158 (24) 922 (71) (7) Actual change Actual Pro Forma 30% 27% na 44% na na 61% 16% 67% Pro Forma change** 30% 27% na - -23% na na 29% 16% 67% Cegetel/SFR (70%)* Maroc Telecom (35%) Universal Music Group (92%) Viv
Slide 18: P&L Details - Financial Expenses
P&L Details - First Quarter 2003 Financial Expenses Financial provisions Other financial (expense) / income NET FINANCIAL (EXPENSE) / INCOME Financing expense (180) (180) USAi warrants 253 (253) 0 Vivendi Environnement ORA 63 (63) 0 VU puts not exercised or exercised in cash 104 (104) 0 Foreign exch
Slide 19: P&L Details - Exceptional Items and Taxes
P&L Details - First Quarter 2003 Exceptional Items: &128; 81 of which Disposal of Express/Expansion &128; 104 Disposal of Canal+ Technologies &128; (15) Other &128; (8) Taxes: &128; (307) Current/non-recurring Taxes on current income &128; (273) Taxes on asset sales &128; (34) In millions of euros
Slide 20: Business Units
VIVENDI UNIVERSAL Business Units dune 17, 2008) French GAAP - unaudited
Slide 21: Cegetel/SFR: Performance
Cegetel/SFR: First Quarter 2003 Performance Revenue up 4%: Mobile, up 6%: 13.7 million customers, 35.3% market share on base up 1.1pt YOY Average revenue per user (ARPU): Prepaid up 2% to &128;21.2, Postpaid down 3% to &128;56.0 (impact of fixed to mobile incoming call tariff decreases imposed by re
Slide 22: Maroc Telecom: Performance
Maroc Telecom: First Quarter 2003 Performance Revenue up 6% at constant currency: Strong mobile prepaid consumer growth. Mobile consumer base grew by 790,000 customers to approximately 4.7 million 1,116,000 customers in fixed- line: flat versus 1Q 2002 Operating Income up 32% at constant currency: E
Slide 23: Music: Performance
Music: First Quarter 2003 Performance Revenue down 9% at constant currency: Universal Music Group outperformed the market with a global market share estimated to have increased from 21%* in 1Q 2002 to about 22%*. Best selling artists in the quarter: 50 Cent (more than 5.5 million units sold worldwid
Slide 24: Vivendi Universal Entertainment: Performance
Vivendi Universal Entertainment: First Quarter 2003 Performance Revenue down 5% at constant currency: Universal Pictures down: Fewer theatrical releases versus prior year Universal Television up: Improved advertising revenues and affiliate fees Parks and Resorts down: Lower park attendance due to co
Slide 25: Canal+ Group: Performance
Canal+ Group: First Quarter 2003 Performance Revenue down 1%: Pay TV France up: Canal+ Group subscriptions in line with full year expectations (+50.000 net for 2003), French premium channel down due to advertising and subscriptions (-120.000 expected in 2003). Good performance from CanalSatellite, w
Slide 26: Vivendi Universal Games: Performance
Vivendi Universal Games: First Quarter 2003 Performance Revenue down 1% at constant currency Declining market for GameCube games and educational software Operating loss increased from &128; (1) million to &128; (24) million Revenue softness, itself related to the decline of the US dollar. Declining
Slide 27: IR Team
IR Team Eileen McLaughlin IR Director eileen.mclaughlin@groupvu.com Laurence Daniel IR Director laurence.daniel@groupvu.com Edouard Lassalle Associate Director edouard.lassalle@groupvu.com Daniel SCOLAN Executive Vice President Investor Relations +33.1.71.71.12.33 daniel.scolan@groupvu.com For any u