Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (June 2015)
42 slides from Vivendi's investor presentation, June 2015
Slide 1: Investor Presentation June 2015
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 5 June 2015 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 5 HIGHLIGHTS STRATEGIC UPDATE 2
Slide 3: 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 5
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 5 3
Slide 4: 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 5
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 5 4
Slide 5: 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 5
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 5 5
Slide 6: Excluding telecom assets
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 5 *Excluding telecom assets 6
Slide 7: Revenues by geographic region
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 5 Revenues by geographic region 7
Slide 8: 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 5
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 5 8
Slide 9: 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 5
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 5 9
Slide 10: 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 5
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 5 10
Slide 11: 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 5
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 5 11
Slide 12: 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 5
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 5 12
Slide 13: 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 5
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 5 13
Slide 14: 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 5
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 5 14
Slide 15: 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 5
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 5 15
Slide 16: Financials – 3M 2015
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 5 FINANCIALS – 3M 2015
Slide 17: 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 5 SCOPE OF CONSOLIDATION AND MAIN CURRENCIES In compliance with IFRS 5, GVT qualifies as discontinued operation from 3Q 2014, SFR from 1Q 2014 and Maroc Telecom group as from 2Q 2013 hence their earnings are reported as “Earnings from discontin
Slide 18: Key Financial Metrics at End March 2015
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 5 KEY FINANCIAL METRICS AT END MARCH 2015 % Change % Underlying change* Year-on-year Year-on-year Revenues: € 2,492 m + 7.5 % + 2.5 % EBIT: € 117 m + 17.1 % Net Income, group share: € 33 m N/A** Income from operations: € 218 m + 7.0 % +
Slide 19: Highlights – 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 5 Constant perimeter In euro millions - IFRS 3M 2014 3M 2015 Change and constant HIGHLIGHTS currency * ■ Global subscription portfolio at 15.2m, +605k yoy, Revenues 1,317 1,370 + 4.0% + 2.5% due to strong performance in Africa and Vietnam. Pay-
Slide 20: Highlights – Universal Music 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 5 Constant perimeter In euro millions - IFRS 3M 2014 3M 2015 Change and constant HIGHLIGHTS currency * Revenues 984 1,097 + 11.6% + 2.3% ■ Revenues up 2.3%* driven by growth in both Recorded music 784 874 + 11.5% + 2.4%* recorded music and musi
Slide 21: Revenues by Activity
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 5 REVENUES BY ACTIVITY Constant Constant perimeter In euro millions - IFRS 3M 2014 3M 2015 Change currency and constant currency * Canal+ Group 1,317 1,370 + 4.0% + 3.6% + 2.5% Universal Music Group 984 1,097 + 11.6% + 2.0% + 2.3% Vivendi Villa
Slide 22: Income from Operations by Activity
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 5 INCOME FROM OPERATIONS BY ACTIVITY Constant perimeter In euro millions - IFRS 3M 2014 3M 2015 Change and constant * currency * Canal+ Group 179 154 - 14.1% - 15.7% Universal Music Group 66 88 + 32.8% + 26.1% Vivendi Village (20) 4 Corporate (
Slide 23: EBITA by Activity
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 5 EBITA BY ACTIVITY Constant Constant perimeter In euro millions - IFRS 3M 2014 3M 2015 Change currency and constant * currency * Canal+ Group 175 165 - 5.6% - 6.2% - 7.3% Universal Music Group 56 82 + 45.6% + 38.1% + 39.3% Vivendi Village (20)
Slide 24: 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 5 ADJUSTED P&L Constant perimeter and In euro millions - IFRS 3M 2014 3M 2015 Change % change constant currency * Revenues 2,317 2,492 + 175 + 7.5% + 2.5% Income from operations 204 218 + 14 + 7.0% + 3.1% Equity settled share-based compensation
Slide 25: 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 5 CONSOLIDATED P&L In euro millions - IFRS 3M 2014 3M 2015 Change % Revenues 2,317 2,492 175 + 7.5% Cost of revenues (1,448) (1,510) Selling, general and administrative expenses excluding amortization (678) (757) of intangible assets acquired t
Slide 26: Consolidated Balance Sheet, as of March 31, 2015
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 5 CONSOLIDATED BALANCE SHEET, AS OF MARCH 31, 2015 In euro millions December 31, March 31, December 31, March 31, Assets Equity and Liabilities 2014 2015 2014 2015 Goodwill 9,329 9,898 Consolidated equity * 22,988 23,627 Intangible and tangible
Slide 27: Net Cash at End March 2015
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 5 NET CASH AT END MARCH 2015 Discontinued operations Net Cash CFFO Capex, Interest & Other GVT Reclassification Net Cash GVT – Partial Net Cash Dec. 31, before net tax outflows of GVT March. 31, repayment March. 31, 2014 Capex, net paid and net
Slide 28: Recent Events
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 5 RECENT EVENTS ■ Canal+ Group and ITI Group to sell their controlling interest in TVN to Scripps Networks Interactive in March 16, 2015, closing expected in the coming months ■ Orange and Vivendi enter exclusive negotiations for the acquisitio
Slide 29: 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 5 APPENDICES Details of Business Operations: slides 15-16 Details for Discontinued Operations: slides 18-19 Detailed Vivendi Financial Results: slides 21-24 Glossary, Disclaimer & Contacts: slides 26-27
Slide 30: Canal+ Group subscribers and KPIs
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 5 In '000 March. 31, 2014 March. 31, 2015 Change individual subscribers 10,419 10,943 + 524 Mainland France 6,037 6,015 - 22 International 4,382 4,928 + 546 Poland 2,185 2,123 - 62 Overseas 486 492 +6 Africa 1,107 1,497 + 390 Vietnam 604 816 +
Slide 31: Universal Music Group revenues and best sellers
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 5 Constant Recorded Music Revenues 3M 2014 3M 2015 perimeter and In euro millions - IFRS 3M 2015 Europe 40% 37% constant currency * North America 41% 43% Recorded music 874 + 2.4% Asia 12% 11% Physical sales 273 - 6.2% Rest of the world 6% 9% D
Slide 32: Appendices – Details for Discontinued 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 5 APPENDICES Details for Discontinued Operations
Slide 33: Highlights – GVT
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 5 Constant In euro millions - IFRS 3M 2014 3M 2015 Change currency HIGHLIGHTS Revenues 405 458 + 13.1% + 10.1% ■ 10.1%* revenue growth mainly driven by continued Retail & SME 372 423 + 13.7% + 10.7% growth in the Retail & SME segments, despite
Slide 34: GVT operating metrics and revenues
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 5 March. 31, March. 31, In '000 Change In BRL millions - IFRS 3M 2014 3M 2015 Change 2014 2015 Retail & SME - Homes passed 10,747 11,339 + 5.5% Total Revenues 1,312 1,444 + 10.1% Retail & SME 1,205 1,334 + 10.7% Retail & SME - Revenue Generatin
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 5 APPENDICES Detailed Vivendi Financial Results
Slide 36: EBITDA
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 5 EBITDA Constant Constant perimeter In euro millions - IFRS 3M 2014 3M 2015 Change currency and constant currency * Canal+ Group 236 223 - 5.3% - 5.7% - 7.4% Universal Music Group 80 103 + 28.4% + 20.2% + 21.1% Vivendi Village (19) 4 Corporate
Slide 37: 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 5 INTEREST & INCOME TAX In euro millions (except where noted) – IFRS 3M 2014 3M 2015 Interest (11) (5) Interest expense on borrowings (78) (17) Average interest rate on borrowings (%) 2.65% 2.75% Average outstanding borrowings (in euro billions
Slide 38: 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 5 RECONCILIATION OF EARNINGS ATTRIBUTABLE TO VIVENDI SA SHAREOWNERS TO ADJUSTED NET INCOME In euro millions - IFRS 3M 2014 3M 2015 Earnings attributable to Vivendi SA shareowners (*) 431 33 Amortization of intangible assets acquired through bus
Slide 39: 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 5 RECONCILIATION OF EBIT TO INCOME FROM OPERATIONS In euro millions - IFRS 3M 2014 3M 2015 Change % change EBIT 100 117 + 17 + 17.1% Amortization of intangible assets acquired through business combinations 83 98 Other income & charges 2 3 EBITA
Slide 40: 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 5 APPENDICES Glossary & Disclaimer
Slide 41: 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 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
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 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,