Slide 1: Full Year 2014 Results
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 Feb.27, 2015 FULL YEAR 2014 RESULTS IMPORTANT NOTICE: Financial results for the fiscal year ended December 31, 2014 Financial statements audited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end
Slide 2: 2014 Highlights, Strategic Update and 2015 Outlook
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer 2014 HIGHLIGHTS STRATEGIC UPDATE AND 2015 OUTLOOK 2
Slide 3: Offer on 20% of Numericable-SFR
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 OFFER ON 20% OF NUMERICABLE-SFR ■ After review by its Management Board, today Vivendi’s Supervisory Board considered the offer of Numericable-SFR and Altice to purchase Vivendi’s 20% interest in the telecommunications operator. The Supervisor
Slide 4: 2014: Repositioning of Vivendi
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 2014: REPOSITIONING OF VIVENDI ■ New Chairman of the Supervisory Board and new Management Board appointed June 24, 2014 ■ From a diversified telecom and media group to an integrated content and media player ■ Maximization of the value of the
Slide 5: Expected overall return to shareholders of approximately €5.7 billion
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 EXPECT OVERALL RETURN TO SHAREHOLDERS OF APPROXIMATELY €5.7 BILLION IN ADDITION TO THE €1.3 BILLION ALREADY DISTRIBUTED ► Proposal to April 17 Annual Shareholders’ Meeting*: ordinary dividend of €1 to be paid in 2015** in respect of fiscal ye
Slide 6: Vivendi Today
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 VIVENDI TODAY Revenues € 10,089 m EBITA € 999 m 2014 Results Adjusted Net Income € 626 m CFFO € 843 m Revenues by geography Revenues by activity Music Publishing Rest of the world 7% 14% 13% Pay-TV Mainland 34% France North America 17
Slide 7: New way of working together based on four themes
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 NEW WAY OF WORKING TOGETHER… BASED ON FOUR THEMES… ► Africa ► Data Monetization ► New Content ► Cooperation and common projects ■ Cross-business teams actively cooperating ■ Development of the Vivendi Village and creation of Vivendi Contents
Slide 8: More integrated organization to leverage leadership positions (1/4)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 … WITH A MORE INTEGRATED ORGANIZATION TO STRENGTHEN AND LEVERAGE LEADERSHIP POSITIONS (1/4) Music Content Undisputed global leadership position in recorded music: ► More than 30% market share ► Rich catalog enhanced by EMI acquisition ► Tra
Slide 9: More integrated organization to leverage leadership positions (2/4)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 … WITH A MORE INTEGRATED ORGANIZATION TO STRENGTHEN AND LEVERAGE LEADERSHIP POSITIONS (2/4) Video and TV Content “Création Originale” (Original programming): ► Series sold in 80 countries ► Acceleration of new releases in 2015 ► Pioneer in
Slide 10: More integrated organization to leverage leadership positions (3/4)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 … WITH A MORE INTEGRATED ORGANIZATION TO STRENGTHEN AND LEVERAGE LEADERSHIP POSITIONS (3/4) Largest Pay-TV offer ► Premium sports rights 2020 2018 2016 2019 ► Top US movies & series Content distribution in France Leading SVOD offer ► Accelera
Slide 11: More integrated organization to leverage leadership positions (4/4)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 … WITH A MORE INTEGRATED ORGANIZATION TO STRENGTHEN AND LEVERAGE LEADERSHIP POSITIONS (4/4) Fast growth between 2012 and 2014 In Africa: a presence in more than 25 countries, with 8 subsidiaries and more than 30 partners. (Vietnam) 1 552 1
Slide 12: 2015 Outlook
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 2015 OUTLOOK Revenues Slight increase in revenues thanks to the growth of UMG’s streaming and subscription activities and Canal+’s international operations Operating margin 2015 Income from operations margin close to 2014 level Adjusted Net I
Slide 13: Financials
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 HERVE PHILIPPE Member of the Management Board Chief Financial Officer FINANCIALS
Slide 14: Scope of Consolidation and Main Currencies
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 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 15: Key Financial Metrics at End December 2014
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 KEY FINANCIAL METRICS AT END DECEMBER 2014 % Change % Underlying change* Year-on-year Year-on-year Revenues: € 10,089 m – 1.6 % – 1.4 % EBIT: € 736 m + 15.6 % Net Income, group share: € 4,744 m + 141.1 % Income from operations: €1,108
Slide 16: Highlights (Canal+ Group)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 Constant perimeter In euro millions - IFRS 2013 2014 Change and constant HIGHLIGHTS currency * ■ Global subscription portfolio at 15.3m, +678k yoy, Revenues 5,311 5,456 + 2.7% + 0.4% due to strong performance in Africa and Vietnam Pay-TV Main
Slide 17: Highlights (Universal Music Group)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 Constant perimeter In euro millions - IFRS 2013 2014 Change and constant HIGHLIGHTS currency * Revenues 4,886 4,557 - 6.7% - 3.8% ■ Revenues down 3.8%* due to lower recorded Recorded music 3,992 3,688 - 7.6% - 4.4% * music sales Music Publish
Slide 18: Revenues by Activity
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 REVENUES BY ACTIVITY Constant Constant perimeter In euro millions - IFRS 2013 2014 Change currency and constant currency * Canal+ Group 5,311 5,456 + 2.7% + 2.6% + 0.4% Universal Music Group 4,886 4,557 - 6.7% - 5.6% - 3.8% Vivendi Village 71
Slide 19: Income from Operations by Activity
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 INCOME FROM OPERATIONS BY ACTIVITY Constant * perimeter In euro millions - IFRS 2013 2014 Change and constant currency * Canal+ Group 660 618 - 6.4% - 8.6% Universal Music Group 636 606 - 4.6% + 2.3% Vivendi Village (78) (34) Corporate (87) (
Slide 20: EBITA by Activity
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 EBITA BY ACTIVITY Constant Constant perimeter In euro millions - IFRS 2013 2014 Change currency and constant * currency * Canal+ Group 611 583 - 4.7% - 4.8% - 6.3% Universal Music Group 511 565 + 10.7% + 11.3% + 20.2% Vivendi Village (80) (79
Slide 21: Adjusted P&L
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 ADJUSTED P&L Constant perimeter and In euro millions - IFRS 2013 2014 Change % change constant currency * Revenues 10,252 10,089 - 163 - 1.6% - 1.4% Income from operations 1,131 1,108 - 23 - 2.0% + 0.5% Equity settled share-based compensation
Slide 22: Consolidated P&L
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 CONSOLIDATED P&L In euro millions - IFRS 2013 2014 Change % Revenues 10,252 10,089 -163 - 1.6% Cost of revenues (6,097) (6,121) Selling, general and administrative expenses excluding amortization (3,008) (2,811) of intangible assets acquired
Slide 23: Consolidated Balance Sheet
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 CONSOLIDATED BALANCE SHEET In euro millions December 31, December 31, December 31, December 31, Assets Equity and Liabilities 2013 2014 2013 2014 Goodwill 17,147 9,329 Consolidated equity * 19,030 22,988 Intangible and tangible assets 15,619
Slide 24: Cash Flow from Operations (CFFO)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 CASH FLOW FROM OPERATIONS (CFFO) * CFFO before capex, net CFFO 2013 2014 Change In euro millions - IFRS 2013 2014 Change 689 722 + 4.6% Canal+ Group 478 531 + 11.1% 611 471 - 22.8% Universal Music Group 585 425 - 27.3% (72) (38) Vivendi Villa
Slide 25: Net Cash at Year End 2014
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 NET CASH AT YEAR END 2014 Discontinued operations Net Debt CFFO Capex, Interest & Distribution Cash Disposals, Net Cash SFR/GVT Reclassification Dec. 31, before net tax to collateralization Acquisitions, outflows of GVT Dec. 31, 2013 Capex, n
Slide 26: Appendices
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 APPENDICES Details of Business Operations: slides 28-29 Details for Discontinued Operations: slides 31-32 Detailed Vivendi Financial Results: slides 34-39 Glossary, Disclaimer & Contacts: slides 41-42
Slide 27: Appendices: Details of Business Operations
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 APPENDICES Details of Business Operations
Slide 28: Canal+ Group subscribers and KPIs
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 In '000 Dec. 31, 2013 Dec. 31, 2014 Change individual subscribers 10,443 11,048 + 605 Mainland France 6,091 6,062 - 29 International 4,352 4,986 + 634 Poland 2,197 2,146 - 51 Overseas 485 494 +9 Africa 1,083 1,552 + 469 Vietnam 587 794 + 207
Slide 29: Universal Music Group revenues and 2015 upcoming releases
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 Constant perimeter and In euro millions - IFRS 2014 constant Recorded Music Revenues 2013 2014 currency * Europe 39% 41% Recorded music 3,688 - 4.4% Physical sales 1,417 - 12.2% North America 40% 39% Digital music sales 1,636 - 0.4% Asia 12%
Slide 30: Appendices: Details for Discontinued Operations
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 APPENDICES Details for Discontinued Operations
Slide 31: Highlights (GVT)
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 Constant In euro millions - IFRS 2013 2014 Change currency HIGHLIGHTS Revenues 1,709 1,765 + 3.3% + 12.8% ■ 12.8%* revenue growth mainly driven by continued Retail & SME 1,556 1,626 + 4.5% + 14.1% growth in the Retail & SME segments despite s
Slide 32: GVT operating metrics
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 In '000 Dec. 31, 2013 Dec. 31, 2014 Change In BRL millions - IFRS 2013 2014 Change Retail & SME - Homes passed 10,448 11,067 + 5.9% Total Revenues 4,862 5,485 + 12.8% Retail & SME 4,427 5,053 + 14.1% Retail & SME - Revenue Generating Units 7,
Slide 33: Appendices: Detailed Vivendi Financial Results
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 APPENDICES Detailed Vivendi Financial Results
Slide 34: Revenues / EBITDA / EBITA
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 REVENUES / EBITDA / EBITA Constant Constant Q4 2013 Q4 2014 Change Constant perimeter Revenues 2013 2014 Change Constant perimeter and currency and constant In euro millions - IFRS currency constant currency * currency * 1,454 1,489 + 2.4% +
Slide 35: Interest
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 INTEREST In euro millions (except where noted) – IFRS 2013 2014 Interest (266) (96) Interest expense on borrowings (494) (283) Average interest rate on borrowings (%) 3.22% 2.94% Average outstanding borrowings (in euro billions) 15.3 9.7 Inte
Slide 36: Income Tax
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 INCOME TAX 2013 2014 In euro millions – IFRS Adjusted Net income Adjusted Net income Net Income Net Income Tax savings related to the Vivendi SA's French Tax 145 254 147 110 Group and Consolidated Global Profit Tax Systems Tax charge (315) (2
Slide 37: Capex, Net
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 CAPEX, NET In euro millions - IFRS 2013 2014 Change Canal+ Group 211 190 - 10.2% Universal Music Group 26 46 + 79.3% Vivendi Village 8 7 Corporate - - Total Vivendi 245 243 - 0.9% 37
Slide 38: Reconciliation of Earnings to Adjusted Net Income
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME In euro millions - IFRS 2013 2014 % change Earnings attributable to Vivendi SA shareowners (*) 1,967 4,744 + 141.2% Amortization of intangible assets acq
Slide 39: Reconciliation of EBITDA to Income from Operations
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 RECONCILIATION OF EBITDA TO INCOME FROM OPERATIONS % change In euro millions - IFRS 2013 2014 Change % change at constant perimeter and constant currency * EBITDA 1,455 1,443 - 12 - 0.8% + 0.1% (1) (310) (307) +3 Depreciation and Amortization
Slide 40: Appendices: Glossary & Disclaimer
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 APPENDICES Glossary & Disclaimer
Slide 41: Glossary
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 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 42: Important Legal Disclaimer / Contacts
F Y 2 0 1 4 R e s u l t s – F e b r u a r y 2 7 , 2 0 1 5 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,