Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (June 2016)
43 slides from Vivendi's investor presentation, June 2016
Slide 1: Investor Presentation June 2016
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 June 2016 INVESTOR PRESENTATION IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentation
Slide 2: Highlights: Strategic Update
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 HIGHLIGHTS STRATEGIC UPDATE 2
Slide 3: Vivendi's profile
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Vivendi’s profile The Group’s three pillars New initiatives Key figures 2015 90,0% Headcount 16,395 100% 26,2% 30% Countries 60 Revenues €10.8bn 100% (1) Income from oper. €1,061m 17,7% 29,2% Adjusted net €697m (2) income 24,7% 100% 100% (3)
Slide 4: A leading integrated media and content Group
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 A leading integrated media and content Group Vivendi and follow two to achieve one in order to… possesses… paths… objective 3 major assets with leading positions Continuously invest in Production of our businesses exclusive content Make Value
Slide 5: A world-class European media group
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 A world-class European media group Revenues by geographic Revenues by activity (2015) region (2015) Music Other activities publishing 7% 1% PayTV Recorded music mainland 31% France and merchandising Distribution 47% 53% 41% Content 13% PayTv
Slide 6: UMG: Reinforced leadership in music
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 UMG : Reinforced leadership in music ■ UMG is #1 worldwide in recorded music with 34%* market share ■ Around 50 labels spanning the full musical spectrum ■ Albums among the 2015 top sellers Sam Smith - 2016 Oscars Nekfeu - 2016 Victoires de l
Slide 7: UMG at the forefront of the digital transformation
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 UMG at the forefront of the digital transformation ■ Streaming: the new growth driver in the music industry Revenues from streaming Paying streaming subscribers worldwide* worldwide* (in US$ millions) 2,850 (in millions) 68 2,000 1,500 41 1,0
Slide 8: UMG: growth opportunities in new territories
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 UMG: growth opportunities in new territories ■ The music industry is concentrated in a handful of mature markets* UMG revenues by geography (2015) c. 3% in BRICS 22% in the rest of the c. 75% in 5 world countries ■ Promising development prosp
Slide 9: Canal+ Group: television activities supported by international development
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Canal + Group: television activities supported by international development ■ France ■ RoW Fierce competition in the pay-TV 5.5 million subscribers in 4 large segment markets including Africa A growing free-to-air segment Content tail
Slide 10: Canal+ France: execution of an extensive transformation plan
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Canal+ France: execution of an extensive transformation plan ■ The need to address all market segments and consumption patterns and redesign the customer experience Set-top box Multiroom, fast zapping 4k, start over… Offers CANAL+ focused on
Slide 11: Canal+ Group: key player and partner for cinema
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Canal + Group: key player and partner for cinema ■ Studiocanal is Europe’s #1 film studio ■ A catalog of popular box-office hits ■ Invests €800 million in French and international cinema each year 11
Slide 12: Vivendi Village: a family of high-potential small companies
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Vivendi Village: a family of high-potential small companies ■ Companies providing digital services and/or specializing in live entertainment and talents ■ The same entrepreneurial spirit ■ A lab for ideas and an opportunity to experiment 12
Slide 13: Vivendi Village: a family of high-potential small companies
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Vivendi Village: a family of high-potential small companies 13
Slide 14: Best-in-class platforms to fast-track distribution
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Best-in-class platforms to fast-track distribution ■ Dailymotion Dailymotion’s audience France’s #1* website and one of the world’s leading digital platforms: 300 Europe, Africa and million people watch 3.5 billion Middle East videos each m
Slide 15: Investing in videogames
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Investing in videogames ■ Videogame segment is one of the most dynamic in the media industry ■ Mobile gaming is growing fast (c. 1/3 of videogame industry revenue) ■ Gameloft and Ubisoft are in line with Vivendi’s strategy 15
Slide 16: Investing in content production companies
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Investing in content production companies ■ The goal: produce our own content and increase international productions Banijay Group, one of the world’s largest independent television production and distribution companies, resulting from the
Slide 17: Partnerships with telecom operators
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Partnerships with telecom operators ■ Telecom Italia A foothold in a market where we share the same Latin culture 150 million* subscribers worldwide Support Telecom Italia over the long term in its development projects 300 million* ■ Tele
Slide 18: High ambitions for Pay-TV in Southern Europe
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 High ambitions for Pay-TV in Southern Europe ■ A strategic and industrial partnership with Mediaset ■ The terms: exchange 3.5% of Vivendi’s share capital for 3.5% of Mediaset’s share capital and 100% of Mediaset Premium’s share capital ■ A pa
Slide 19: Stepping up our presence in cultural content distribution
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Stepping up our presence in cultural content distribution ■ A plan to team up with Fnac, a trendsetting distributor of cultural and leisure goods ■ A partnership to create long-term value: Promote Vivendi’s cultural content via distribution
Slide 20: First quarter 2016 results
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 First quarter 2016 results
Slide 21: Scope of consolidation and main currencies
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES In compliance with IFRS 5, GVT qualifies as a discontinued operation from Q3 2014, hence its earnings are reported as “Earnings from discontinued operations”. This classification retrospectively appl
Slide 22: Key financial metrics at end March 2016
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 KEY FINANCIAL METRICS AT END MARCH 2016 % Change % Underlying change* Year-on-year Year-on-year Revenues: € 2,491 m - - 1.4 % IFRS EBIT: € 968 m x 8.3 Net Income, group share: € 862 m x 25.9 Non-GAAP** Income from operations: € 228 m
Slide 23: UMG Highlights
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Constant perimeter In euro millions - IFRS 3M 2015 3M 2016 Change and constant HIGHLIGHTS currency * Revenues 1,097 1,119 + 1.9% + 0.6% ■ Subscription and streaming up c. 60%* in Q1 2016 Recorded music 874 890 + 1.8% + 0.5% compared to Q1 201
Slide 24: UMG – Focus on recorded music by format
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 UMG – Focus on recorded music by format ■ Continued strong growth of subscription and streaming revenues, ■ Subscription and streaming now despite decline in physical and download revenues accounts for 61% of digital revenues, 34% of total re
Slide 25: Canal+ Group Highlights
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Constant perimeter In euro millions - IFRS 3M 2015 3M 2016 Change and constant HIGHLIGHTS currency * Revenues 1,370 1,328 - 3.1% - 2.8% ■ Revenues down 2.8%*: Pay-TV Mainland France 859 820 - 4.6% - 4.6% ■ Pay-TV revenues decreased in mainlan
Slide 26: Canal+ - Update on Pay-TV operations in mainland France
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 Canal+ - Update on Pay-TV operations in mainland France ■ Subscription base* evolution ■ Canal+ channels** in France - EBITA In thousand In euro millions -415k Q1 2015 Q1 2016 -183k 8,691 8,459 8,276 -50 -59 -17.2% Q1 EBITA benefited from low
Slide 27: Vivendi Village, New Initiatives and Corporate
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 VIVENDI VILLAGE Constant perimeter HIGHLIGHTS In euro millions - IFRS 3M 2015 3M 2016 Change and constant currency * . Revenues 25 25 + 2.4% - 6.9% Vivendi Village Income from operations 4 (4) na na ■ Decrease in Income from operations and EB
Slide 28: Adjusted P&L
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 ADJUSTED P&L Constant perimeter In euro millions - IFRS 3M 2015 3M 2016 Change % and constant currency* Revenues 2,492 2,491 -1 - - 1.4% Income from operations 218 228 + 10 + 4.5% + 9.9% Income from operations margin 8.7% 9.1% + 0.4pt Equity
Slide 29: Consolidated P&L
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 CONSOLIDATED P&L In euro millions - IFRS 3M 2015 3M 2016 Change Revenues 2,492 2,491 -1 Cost of revenues (1,510) (1,510) Selling, general and administrative expenses excluding amortization (757) (747) of intangible assets acquired through bus
Slide 30: Consolidated Balance Sheet
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 CONSOLIDATED BALANCE SHEET In euro millions December 31, December 31, Assets March 31, 2016 Equity and Liabilities March 31, 2016 2015 2015 Goodwill 10,177 10,004 Consolidated equity * 21,086 19,954 Intangible and tangible assets 4,335 4,075
Slide 31: Net cash at end March 2016
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 NET CASH AT END MARCH 2016 In euro billions Disposals and Net Cash Interest, taxes paid decrease of financial Acquisitions and Distribution to Net Cash Dec. 31, 2015 CFFO and other assets investments Share buyback shareholders March 31, 2016
Slide 32: Appendices
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 APPENDICES Details of Business Operations: slides 33-34 Detailed Vivendi Financial Results: slides 36-40 Glossary, Disclaimer & Contacts: slides 42-43
Slide 33: UMG
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 UMG Constant Recorded Music Revenues 3M 2015 3M 2016 perimeter and In euro millions - IFRS 3M 2016 Europe 37% 37% constant North America 43% 43% currency * Asia 11% 13% Recorded music 890 + 0.5% Rest of the world 9% 7% Physical sales 236 - 16
Slide 34: Canal+ Group
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 CANAL+ GROUP In '000 March 31, 2015 March 31, 2016 Change Constant individual subscribers 10,943 10,951 +8 perimeter In euro millions - IFRS 3M 2015 3M 2016 Change Mainland France 6,015 5,546 - 469 and constant International 4,928 5,405 + 477
Slide 35: Appendices: Detailed Vivendi Financial Results
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 APPENDICES Detailed Vivendi Financial Results
Slide 36: Revenues / EBITDA / EBITA
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 REVENUES / EBITDA / EBITA Constant Revenues Constant perimeter 3M 2015 3M 2016 Change In euro millions - IFRS currency and constant currency * Universal Music Group 1,097 1,119 + 1.9% + 0.6% + 0.6% Canal+ Group 1,370 1,328 - 3.1% - 2.8% - 2.8
Slide 37: Revenues / Income from operations / EBITA
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 REVENUES / INCOME FROM OPERATIONS / EBITA Constant Revenues Constant perimeter 3M 2015 3M 2016 Change In euro millions - IFRS currency and constant currency * Universal Music Group 1,097 1,119 + 1.9% + 0.6% + 0.6% Canal+ Group 1,370 1,328 - 3
Slide 38: Interest & income tax
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS 3M 2015 3M 2016 Interest (5) (8) Interest expense on borrowings (17) (14) Average interest rate on borrowings (%) 2.75% 2.55% Average outstanding borrowings (in euro billions)
Slide 39: Reconciliation of earnings to adjusted net income
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME In euro millions - IFRS 3M 2015 3M 2016 Earnings attributable to Vivendi SA shareowners (*) 33 862 Amortization and depreciation of intangible assets acq
Slide 40: Reconciliation of EBIT to income from operations
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 RECONCILIATION OF EBIT TO INCOME FROM OPERATIONS In euro millions - IFRS 3M 2015 3M 2016 EBIT 117 968 Amortization and depreciation of intangible assets acquired through business 98 55 combinations Other income & charges 3 (810) EBITA 218 213
Slide 41: Appendices: Glossary & Disclaimer
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 APPENDICES Glossary & Disclaimer
Slide 42: Glossary
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 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 this to be relevant indicators of the group’s oper
Slide 43: Important legal disclaimer / Contacts
I n v e s t o r p r e s e n t a t i o n – J u n e 2 0 1 6 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,