Slide 1: Vivendi Universal Financial Update & 3Q and 9 Months 2002 Operating Results
Exhibit 99.2 Vivendi Universal Financial Update & 3Q and 9 Months 2002 Operating Results Jacques Espinasse Senior Executive Vice President & Chief Financial Officer November 26, 2002
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: Vivendi Environnement Shares
Vivendi Environnement Shares Vivendi Universal has received the commitment from stable shareholders of VE to acquire on Dec. 24, 2002 50% of its stake in VE, i.e. 20.4% 82.5 million shares @ • 22.5/share • 1,856m Vivendi Universal has granted call options on the other 50% which can be exercised at a
Slide 4: Organization chart with Vivendi Environnement as asset disposal in progress
HOLDING COMPANY Universal Music Group Vivendi Universal Entertainment ENTERTAINMENT Cegetel Groupe New Canal+ Vivendi Universal Games UNIVERSAL Publishing International Canal+ assets International telecoms assets Internet Property and miscellaneous assets Vivendi Environnement Asset disposals in pro
Slide 5: Disposal Program Update
Disposal Program Update VU is reiterating the •16bn disposals target by the end of 2004 including disposal of Vivendi Environnement Disposals announced (millions of euros) EstimatedProceeds EstimatedCash EstimatedDebt Closing Objectives Vinci shares 291 291 3Q Remaining 25% of the B2B and health 150
Slide 6: Flexibility Achieved in Second Half 2002
Flexibility Achieved in Second Half 2002 Disposal of around • 7bn of assets Issuance of • 1bn 3-year Mandatory Convertible Notes ("ORA") in VU shares Signature of • 1bn "back-up line" Finalization of bank commitment to finance, with no recourse to VU, a 100%-controlled and 100%- consolidated SPV to
Slide 7: Progressive De-Leveraging Targets
Progressive De-Leveraging Targets as announced on September 25, 2002 Gross Debt of Cos > 50% Owned Debt/EBITDA Q2 2002 17.3 Q3 2002 16.6 Q4 2002 14.1 5.3 Q1 2003 11.9 4.4 Q2 2003 11.7 4.4 Q3 2003 10 4.1 Q4 2003 9.6 4.2 Q1 2004 6.6 2.8 Q2 2004 6.6 2.7 Q3 2004 6.4 2.6 Q4 2004 6.4 2.5 Investment Grade
Slide 8: Progressive De-Leveraging Targets: Gross Debt
Debt of Cos > 50% Owned BT Impact Gross Debt/EBITDA Gross Debt / EBITDA (proportional) Q2 2002 17.3 Q3 2002 16.7 Q4 2002 15.9 Q1 2003 13.1 1.8 3.1 4.2 Q2 2003 12.9 1.6 3.1 4.2 Q3 2003 11.1 1.4 2.5 3.4 Q4 2003 10.6 1.8 2.4 3.4 Q1 2004 7.5 1.5 1.7 2.4 Q2 2004 7.5 1.1 1.7 2.3 Q3 2004 7.4 0.8 1.6 2.1 Q4
Slide 9: Progressive De-Leveraging Targets: Net Debt
Debt of Cos > 50% Owned BT Impact Net Debt/EBITDA Net Debt/EBITDA (proportional) Q2 2002 18.8 Q3 2002 18.6 Q4 2002 13.9 Q1 2003 12.3 3.8 3.1 3.8 Q2 2003 8.8 3.8 2.4 3 Q3 2003 7.1 3.8 2.3 3 Q4 2003 7.2 3.7 2.3 3 Q1 2004 6.7 3.7 2.1 2.8 Q2 2004 6.2 3.7 1.9 2.6 Q3 2004 6 3.7 1.8 2.5 Q4 2004 4.1 3.5 1.4
Slide 10: Cash Available per Quarter
Cash Available per Quarter Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Cash (in • billion) 1.3 0.9 4.6 1.4 4.4 4.2 4 1.2 1.4 1.1 3.7 Cash Available per Quarter at VU Holding Level (• bn) In • bn • You can also see that, even if the Board decides to exercis
Slide 11: Liquidity Analysis
1 Liquidity Analysis 4,049 915 Cash-end of period 10 4,565 4,565 Cash beginning of period 9 2,793 (516) 3,650 Cash-flow before additional Drawing 8 4,636 2,389* Drawings / renewal of existing facilities 7 (10,220) (4,536) (2,756) Debt repayment 6 8,378 4,020 4,018 Cash-flow before financing 5 Asset
Slide 12: Cegetel Options Impact on Net Debt
Cegetel Options Impact on Net Debt Scenario Description French GAAP net debt 31/12/02E French GAAP net debt 31/12/03E 1 Status Quo 13.9 7.3 2 Buy BT stake for •4.0bn in Jan 03 13.9 10.9 3 Buy SBC stake for •2.6bn in Jan 03 13.9 9.6 4 Buy BT + SBC stakes for •6.6bn in Jan 03 13.9 13.5 5 Sale of Ceget
Slide 13: Recent Financing Transactions
Recent Financing Transactions Mandatory Convertible Notes Total amount issued: • 1bn: Net proceeds: • 769mm after coupon prepayment Nominal value of •12.71 7.7% premium over VU's closing price on November 14 of • 11.8; 17.0% premium over VU's intraday low share price of • 10.86 on November 14 Coupon
Slide 14: 3Q and 9 Months Operating Results
3Q and 9 Months Operating Results
Slide 15: Segment Revenues
Actual 1,328 1,211 1,291 1,167 31 108 28 5,164 1,804 399 Music (92%)* Publishing (100%)* Vivendi Universal Entertainment (86%)* CANAL+ Group & Other (100%)* Internet (100%)* Vivendi Telecom International (100%)* Non Core* Assets >50% Owned Cegetel Maroc Telecom (35%)* In millions of euros Actual Pro
Slide 16: Segment Operating Income
Actual 16 239 195 40 - -65 13 - -94 - -67 277 460 111 Music (92%)* Publishing (100%)* Vivendi Universal Entertainment (86%)* CANAL+ Group & Other (100%)* Internet (100%)* Vivendi Telecom International (100%)* Non Core* Holding Assets >50% Owned Cegetel Maroc Telecom (35%)* In millions of euros Actua
Slide 17: 2002 Consolidated Income Statement
2002 Consolidated Income Statement Three Months and Nine Months ended September 30, 2002 3Q Actual 9 Months Actual Revenue Operating Income Interest Expense, net Other financial (expenses) / income Financial provisions Net exceptional items Income tax expense Income before equity interest, goodwill
Slide 18: Guidance
Guidance Too early to give guidance for 2003: In process of an in depth analysis in developing 2003 business plan. Vivendi Universal is working on proforma accounts to take into account the new perimeter for 2003 French GAAP Net Debt Target Net debt as of Dec. 31, 2002 target: •14bn: VE will be deco
Slide 19: IR Team and Investor Relations website
IR Team Eileen McLaughlin IR Director, North America eileen.mclaughlin@goupvu.com Alexandra Fichelson Associate Director, North America alexandra.fichelson@groupvu.com Laurence Daniel IR Director, Europe laurence.daniel@groupvu.com Edouard Lassalle Associate Director, Europe edouard.lassalle@groupvu
Slide 20: Annexes
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Slide 21: Music
Music 3Q key drivers: Revenue down 2% excl. Fx: Music market estimated to be down ^9% Recorded music sales up slightly offset by: higher provisions for returns and lower manufacturing revenues Best selling new releases in the quarter: Bon Jovi, Eve, India.Arie, Enrique Iglesias Best selling artists
Slide 22: Publishing
Publishing 3Q key drivers: Revenue up 5% excl. Fx: Games up 22%: Warcraft III, The Thing and Crash Bandicot. Publishing down 4%: primarily due to foreign exchange Operating Income down 4% excl. Fx: Games up 86%: product mix Publishing down 12%: Improvement in Europe and Latin America Offset by incre
Slide 23: Vivendi Universal Entertainment
Vivendi Universal Entertainment In • million 3Q key drivers: Revenue down 14% excl. Fx: Fewer theatrical releases: 2001 releases - Jurassic Park 3, American Pie 2, The Fast and The Furious, Bridget Jones's Diary 2002 releases - The Bourne Identity, Blue Crush, About a Boy Lower attendance at theme p
Slide 24: Canal+ Group
Canal+ Group 3Q key drivers: Revenue up 4% excl. Fx: New Canal (up 2%) CanalSatellite subscriber growth 7.5 million subscriptions at the end of September Companies outside New Canal Growth mainly due to assets not consolidated in 2001 and Universal Studios Networks Telepiu subscriber growth Canal+ T
Slide 25: Cegetel
Cegetel Reported PF % PF Ex Fx % Revenue 1,804 9% 9% Mobile 1,589 8% Fixed & Others 215 11% Operating Income 460 64% 64% Mobile 487 48% Fixed & Others -27 45% 3Q key drivers: Revenue up 9% excl. Fx: Mobile, +8%: +161,000 customers to 13.2mm (incl. SRR), gross additions market share up to 36.4% (vs.
Slide 26: Pro Forma Adjustment to Actual
Pro Forma Adjustment to Actual 9 Months 2001 Actual 2002 Actual + 3 months Maroc Telecom + USA Network, Inc. entertainment assets from Jan. 1, 02 to May 7, 02 + 6 months Houghton Mifflin - 6 months B2B/Health + 8 months MP3 + 9 months USA Networks, Inc. entertainment assets - - 9 months B2B / Health
Slide 27: Segment Revenues
Music (92%)* Publishing (100%)* Games and Kids Publishing to be sold in Q4 Comareg and Consumers B2B and Health Vivendi Universal Entertainment (86%)* CANAL+ Group & Other (100%)* Internet (100%)* Vivendi Telecom International (100%)* Non Core* Assets >50% Owned Cegetel Mobile (SFR 35%) Fixed and ot
Slide 28: Segment Operating Income
Music (92%)* Publishing (100%)* Games and Kids ** Publishing to be sold in Q4 ** Comareg and Consumers ** B2B and Health ** Vivendi Universal Entertainment (86%)* CANAL+ Group & Other (100%)* Internet (100%)* Vivendi Telecom International (100%)* Non Core* Holding Assets >50% Owned Cegetel Mobile (S
Slide 29: 2001 Consolidated Income Statement
2001 Consolidated Income Statement Three Months and Nine Months ended September 30, 2001 3Q 01 Actual 9 Months 01 Actual Revenue Operating Income Interest Expense, net Other financial (expenses) / income Financial provisions Net exceptional items Income tax expense Income before equity interest, goo