Vivendi Se · EURONEXT:VIV
Vivendi — FY2020 Earnings Presentation
60 slides from Vivendi's earnings presentation, Mar 3, 2021
Slide 1: Full Year 2020 Results
March 3, 2021 FULL YEAR 2020 RESULTS IMPORTANT NOTICE: Pour insérer la notice, cliquez sur le bouton « Formes » puis double-cliquez sur la version EN ou FR Financial results for the full year ended December 31, 2020 dans le dossier 02. Mentions & Tags Audited financial statements, prepared under IFR
Slide 2: Important Legal Disclaimer
Full Year 2020 Results - March 3, 2021 IMPORTANT LEGAL DISCLAIMER ■ 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, and outlook including the im
Slide 3: Impacts of the COVID-19 Crisis on Vivendi's Businesses
Full Year 2020 Results - March 3, 2021 IMPACTS OF THE COVID-19 CRISIS ON VIVENDI’S BUSINESSES ▪ Although the COVID-19 pandemic is having a more significant impact on certain countries or businesses than others, in 2020, Vivendi has demonstrated resilience in adapting its activities to continue to be
Slide 4: FY 2020 Key Highlights
ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer FY 2020 Key Highlights 4
Slide 5: 2020 Good Results
Full Year 2020 Results - March 3, 2021 2020 GOOD RESULTS REVENUES +1.2% compared to 2019 EBITA +6.6% compared to 2019 5
Slide 6: Resilience of Our Main Businesses
Full Year 2020 Results - March 3, 2021 RESILIENCE OF OUR MAIN BUSINESSES UMG DYNAMIC GROWTH 4 OF THE TOP 5 CANAL+ ARTISTS ON SPOTIFY IN 2020 IMPROVEMENT IN FRANCE STRONG INTERNATIONAL PAY-TV PERFORMANCE +1.5M SUBSCRIBERS 6
Slide 7: Vivendi Continues to Move Forward
Full Year 2020 Results - March 3, 2021 VIVENDI CONTINUES TO MOVE FORWARD UMG / TENCENT-LED CONSORTIUM LAGARDÈRE BANIJAY GROUP MULTICHOICE PRISMA MEDIA PRISA 7
Slide 8: FY 2020 Financial Results
HERVÉ PHILIPPE Member of the Management Board Chief Financial Officer FY 2020 Financial results 8
Slide 9: Scope of Consolidation and Currency Impacts
Full Year 2020 Results - March 3, 2021 SCOPE OF CONSOLIDATION AND CURRENCY IMPACTS Revenues EBITA Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 2020 D organic +4.4% -7.9% +0.7% +0.7% -0.6% +3.7% Consolidation scope impact +5.9pts +2.8pts +2.7pts +0.5pt +2.8pts +4.6pts D at constant currency rate +10.3% -5.1%
Slide 10: FY 2020 Key Figures
Full Year 2020 Results - March 3, 2021 FY 2020 KEY FIGURES D organic 2019 2020 D (%) in euro millions (%) Revenues 15,898 16,090 +1.2% -0.6% EBITA * 1,526 1,627 +6.6% +3.7% EBIT 1,381 1,468 +6.3% Earnings before tax and minority interests 1,477 2,182 +47.7% Earnings attributable to Vivendi SE shareo
Slide 11: P&L
Full Year 2020 Results - March 3, 2021 P&L The € 2.4 Bn capital gain on the disposal of the 1st tranche of 10% of UMG in March 2020 was not recognized in P&L but in equity. 2019 2020 D (%) in euro millions Revenues 15,898 16,090 +1.2% EBITA* 1,526 1,627 +6.6% EBIT 1,381 1,468 +6.3% Income from non-o
Slide 12: Consolidated Balance Sheet
Full Year 2020 Results - March 3, 2021 CONSOLIDATED BALANCE SHEET Assets Equity and Liabilities December 31, 2019 December 31, 2020 December 31, 2019 December 31, 2020 in euro millions in euro millions Goodwill 14,690 14,183 Equity* 15,575 16,431 Intangible and tangible assets 7,394 8,289 Provisions
Slide 13: Financial Net Debt Evolution
Full Year 2020 Results - March 3, 2021 FINANCIAL NET DEBT EVOLUTION (in euro billions) +1.9 (0.3) Dividends paid (€690M) Share buybacks (€2,157M) +2.8 +2.8 -2.8 (4.1) -1.4 -0.2 +0.7 (5.0) Net Debt Sale of Shareholder Financial CFFO Interest, Net Debt Sale of an Transfer of Proforma as of 10% of retu
Slide 14: Liquidity and Capital Resources
Full Year 2020 Results - March 3, 2021 LIQUIDITY AND CAPITAL RESOURCES Changes in financial net debt position December 31, 2019 December 31, 2020 in euro millions Cash and cash equivalents (2,130) (976) Cash management financial assets (204) (120) Gross cash position (2,334) (1,096) Bonds 5,450 5,05
Slide 15: Business Unit Performances
Business Unit Performances 15
Slide 16: Revenues and EBITA by Business Unit
Full Year 2020 Results - March 3, 2021 REVENUES AND EBITA BY BUSINESS UNIT Revenues by business unit D organic 2019 2020 D (%) in euro millions (%) Universal Music Group 7,159 7,432 +3.8% +4.7% Canal+ Group 5,268 5,498 +4.4% -0.9% Havas Group 2,378 2,137 -10.1% -10.8% Editis* 687 725 +5.6% -1.3% Oth
Slide 17: Revenue Organic Growth per Quarter
Full Year 2020 Results - March 3, 2021 REVENUE ORGANIC GROWTH PER QUARTER Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Organic growth (in %) Universal Music Group +12.7% -4.7% +6.1% +5.4% +4.7% Canal+ Group +1.0% -4.3% +0.9% -1.1% -0.9% Havas Group - Net Revenues -3.3% -18.3% -10.4% -7.5% -9.9% Editis - Pro
Slide 18: Cash Flow from Operations (CFFO)
Full Year 2020 Results - March 3, 2021 CASH FLOW FROM OPERATIONS (CFFO) in euro millions 2019 2020 D (%) EBITDA 2,278 2,423 +6.3% Changes in net working capital 67 293 - Operating lease expenses (254) (255) Restructuring charges paid (101) (115) Dividends received 11 71 Content investments, net (676
Slide 19: Universal Music Group
Universal Music Group vivendi 19
Slide 20: Universal Music Group: Revenues
Full Year 2020 Results - March 3, 2021 UNIVERSAL MUSIC GROUP Revenues supported by Streaming & Subscriptions Continuous growth of Streaming & Subscriptions* Breakdown of revenues at 2020 YE 800.0 4,200 +508 Merchandising 700.0 4% 3,700 +729 600.0 Publishing 3,200 16% Streaming and 500.0 subscription
Slide 21: Universal Music Group: EBITA
Full Year 2020 Results - March 3, 2021 UNIVERSAL MUSIC GROUP EBITA Sustained growth of EBITA… and EBITA margin ,500 +20.1% ,300 +20.0% 20.0% +220 pts 250 +22.3% 18.0% +70 pts ,100 16.0% +160 pts 200 +22.1% +15.0% +120 pts 14.0% 900 +20.6% 12.0% 150 700 1,329 +10.0% 10.0% 1,124 17.9% 8.0% 15.0% 15.7%
Slide 22: Universal Music Group: Key Figures
Full Year 2020 Results - March 3, 2021 UNIVERSAL MUSIC GROUP Key Figures D organic 2019 2020 in euro millions (%)* Revenues 7,159 7,432 +4.7% Recorded music 5,634 5,967 +6.7% Streaming and subscriptions 3,325 3,833 +16.2% Other digital sales (mainly downloads) 428 413 -3.6% Physical sales 1,011 945
Slide 23: Canal+ Group
Canal+ Group vivendi 23
Slide 24: Canal+ Group: Subscriber Base Growth
Full Year 2020 Results - March 3, 2021 CANAL+ GROUP Group subscriber base growth* 21,763 20,291 17,188 13,085 11,875 8,577 International Mainland France 8,611 8,416 8,678 December 31, 2018 December 31, 2019 December 31, 2020 * In thousands 24
Slide 25: Canal+ Group: Subscriber Base Details
Full Year 2020 Results - March 3, 2021 CANAL+ GROUP Subscriber base * (details) International Mainland France 13,085 11,875 8,611 8,416 8,678 5,983 8,577 4,899 4,697 4,548 4,719 4,173 5,052 5,199 2,744 3,405 3,355 3,436 996 1,267 1,218 664 657 685 509 513 523 December 31, 2018 December 31, 2019 Dece
Slide 26: Canal+ Group: Key Figures
Full Year 2020 Results - March 3, 2021 CANAL+ GROUP Key Figures Evolution of EBITA before restructuring charges (in €M) 477 2019 2020 D (%) 435 42 in euro millions Revenues 5,268 5,498 +4.4% TV International 1,781 2,135 +19.8% 92 TV mainland France 3,053 3,003 -1.6% Studiocanal 434 360 -17.0% EBITA
Slide 27: Havas Group
Havas Group vivendi 27
Slide 28: Havas Group: Net Revenue
Full Year 2020 Results - March 3, 2021 HAVAS GROUP Net Revenue: € 2,049M 2020 organic growth (in %) Organic growth per quarter (in %) -3.3% -7.5% -10.4% -9.2% -9.9% +2.1% -1.4% -18.3% Organic growth Forex Scope Reported Growth Q1 2020 Q2 2020 Q3 2020 Q4 2020 28
Slide 29: Havas Group: A Balanced Portfolio of Activities
Full Year 2020 Results - March 3, 2021 HAVAS GROUP A balanced portfolio of activities Net revenue breakdown by sector (in %) Net revenue breakdown by geography (in %) Retail Automotive Latin America Asia Pacific and Travels & Healthcare & Africa Entertainment Wellness 4.4% 5.2% 5.3% 8.1% Industry 5.
Slide 30: Havas Group: A Robust Business Model
Full Year 2020 Results - March 3, 2021 HAVAS GROUP A robust business model 2020 Key figures Evolution of EBITA and cost adjustment plan (in €M) 2019 2020 D organic 225 in euro millions (%) Revenues 2,378 2,137 -10.8% Net revenues 2,256 2,049 -9.9% Europe 1,105 997 -12.7% North America 831 796 -4.0%
Slide 31: Editis
Editis 31
Slide 32: Editis: Key Figures
Full Year 2020 Results - March 3, 2021 EDITIS Key Figures* 2020 revenue evolution impacted by the lockdowns 250 +10.4% +12.0% 230 +6.9% +7.0% 2019 210 D (%) 12-month 2020 190 +2.0% proforma -15.7% in euro millions proforma 170 -3.0% Revenues 735 725 -1.3% 150 -14.3% Literature 309 300 -2.8% 232 231
Slide 33: Other Businesses
Other Businesses vivendi 33
Slide 34: Other Businesses
Full Year 2020 Results - March 3, 2021 OTHER BUSINESSES Revenues EBITA in euro millions 2019 2020 in euro millions 2019 2020 Gameloft 259 253 Gameloft (36) (24) Vivendi Village 141 40 Vivendi Village (17) (59) New Initiatives 71 65 New Initiatives (65) (75) Intercompany Elimination (65) (60) Corpora
Slide 35: To Sum Up
To sum up vivendi 35
Slide 36: To Sum Up
Full Year 2020 Results - March 3, 2021 TO SUM UP ■ The 2020 good results confirm the resilience of our main activities ■ Extraordinary Shareholders’ meeting: March 29, 2021 ■ Annual Shareholder’s meeting: June 22, 2021 ■ Upcoming financial releases ■ Q1 2021 revenues: April 22, 2021 ■ HY 2021 earnin
Slide 37: Strategy and Future Plans
ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer Strategy and future plans 37
Slide 38: Strong Performance Since 2014
Full Year 2020 Results - March 3, 2021 STRONG PERFORMANCE SINCE 2014 Revenue and EBITA Share price evolution growth (June 24, 2014 – March 2, 2021) Dividends reinvested Vivendi +113,74% Revenue EBITA +59% +63% 16.1Bn 1.6Bn 10.1Bn 1.0Bn CAC 40 +56,0% 2014 2020 2014 2020 24/06/2014 24/12/2014 24/06/20
Slide 39: A New Chapter for UMG and Vivendi
Full Year 2020 Results - March 3, 2021 A NEW CHAPTER FOR UMG AND VIVENDI WE WILL EXAMINE THE DISTRIBUTION OF 60% OF UMG’S SHARE CAPITAL AND ITS LISTING BY THE END OF THE YEAR 39
Slide 40: Accelerate Our Development
Full Year 2020 Results - March 3, 2021 ACCELERATE OUR DEVELOPMENT HIGH-QUALITY CONTENT GLOBAL DISTRIBUTION CAPABILITIES A GLOBAL LEADER IN MEDIA, CONTENT AND DEVELOPMENT INTO COMMUNICATIONS NEW ENTERTAINMENT FORMATS & HIGH-POTENTIAL MARKETS INCREASING LEVEL OF INTEGRATION BETWEEN OUR BUSINESSES 40
Slide 41: Transformation & Reinvention
TRANSFORMATION & REINVENTION 41
Slide 42: A Value-Creating Strategy
Full Year 2020 Results - March 3, 2021 A VALUE-CREATING STRATEGY IN 2020 PROPOSED ORDINARY €2.8 BN WAS DIVIDEND* OF RETURNED TO 60 EURO CENTS SHAREHOLDERS PER SHARE * Pr o p o se d to th e An n u a l Sh a r e h o ld er s' Me e tin g to b e h e ld J u n e 2 2 2 0 2 1 42
Slide 43: Our Purpose (Raison d'Être): Creation Unlimited
Full Year 2020 Results - March 3, 2021 OUR PURPOSE (RAISON D’ÊTRE) CREATION UNLIMITED “Unleash creation by revealing all talent, valuing all ideas and cultures and sharing them with as many people as possible” 83% TALENT CONTENT PUBLIC OF PEOPLE CONSIDER ENTERTAINMENT A VITAL NEED* DISCOVER PRODUCE
Slide 44: ESG
Full Year 2020 Results - March 3, 2021 ESG 2014 – 2019 2020 Structuring of our CSR approach in A pivotal year line with the group' s repositioning Weight of ESG criteria Definition of A member of the applied in the our first CSR United Nations determination of commitments Global Compact senior execu
Slide 45: Our Priority Commitments
Full Year 2020 Results - March 3, 2021 OUR PRIORITY COMMITMENTS Innovating to Imagining Building a protect the planet Tomorrow’s Society responsible world together 2025 CARBON MAKE CULTURE PROMOTING A MORE NEUTRALITY & EDUCATION INCLUSIVE WORLD « NET ZERO » MORE ACCESSIBLE 2020 2020 2020 S.B.T. i :
Slide 46: Confident About the Future
Full Year 2020 Results - March 3, 2021 CONFIDENT ABOUT THE FUTURE ROBUST BUSINESS MODEL DIVERSITY AND CREATIVITY OF OUR BUSINESSES STABILITY OVER THE LONG TERM 46
Slide 47: Vivendi
vivendi
Slide 48: Appendices and Glossary
Appendices and glossary vivendi
Slide 49: Results by Business Unit
Full Year 2020 Results - March 3, 2021 RESULTS BY BUSINESS UNIT Revenues – 4th quarter D organic Q4 2019 Q4 2020 D (%) in euro millions (%) Universal Music Group 2,101 2,118 +0.8% +5.4% Canal+ Group 1,465 1,444 -1.4% -1.1% Havas Group 697 634 -9.2% -6.7% Editis* 217 231 +6.9% +6.9% Other businesses*
Slide 50: Universal Music Group
Full Year 2020 Results - March 3, 2021 UNIVERSAL MUSIC GROUP D organic 2020 in euro millions (%) North America 2,940 +11.4% Europe 1,789 +3.6% Asia 801 +3.5% Latin America 181 +15.5% SELECTED UPCOMING 2021 RELEASES** Rest of the world 256 -13.6% Recorded music revenues 5,967 +6.7% Booba Mon Laferte
Slide 51: Universal Music Group: Organic Revenue Growth per Quarter
Full Year 2020 Results - March 3, 2021 UNIVERSAL MUSIC GROUP Organic revenue growth* per quarter Q1 2020 Q2 2020 Q3 2020 Q4 2020 organic growth (in %) Recorded music +13.1% -4.5% +11.0% +7.9% Subscriptions and streaming +16.5% +8.5% +22.6% +17.4% Other digital sales (mainly downloads) +25.4% -7.7% -
Slide 52: Havas Group
Full Year 2020 Results - March 3, 2021 HAVAS GROUP Organic growth per quarter Main wins Q1 2020 Q2 2020 Q3 2020 Q4 2020 in euro millions Revenues -4.4% -18.3% -14.1% -6.7% Net Revenues -3.3% -18.3% -10.4% -7.5% Europe -9.8% -22.9% -12.2% -6.9% North America +4.9% -8.0% -7.2% -5.1% Asia Pacific and A
Slide 53: Havas Group: Well Positioned to Seize Growth Opportunities
Full Year 2020 Results - March 3, 2021 HAVAS GROUP Well positioned to seize growth opportunities New innovative offers launched in the second semester Continuous targeted acquisitions in 2020 ▪ Havas CX: an international network dedicated to customer experience, acquisition and engagement ✓ 1500+ ta
Slide 54: Shareholding in Telecom Italia
Full Year 2020 Results - March 3, 2021 SHAREHOLDING IN TELECOM ITALIA 2019 2020 in euro millions Vivendi's share of Telecom Italia's net income 156 215 Impact of dividend paid to saving shareowners (29) (29) Impact on Vivendi's Adjusted net income 127 186 Amortization of revaluation of intangible as
Slide 55: Interest & Income Tax
Full Year 2020 Results - March 3, 2021 INTEREST & INCOME TAX Interest 2019 2020 in euro millions (except where noted) Interest expense on borrowings (69) (52) Average interest rate on borrowings (%) 1.17% 0.79% Average outstanding borrowings (in € Bn) 5.9 6.6 Interest income from cash and cash equiv
Slide 56: Adjusted Net Income
Full Year 2020 Results - March 3, 2021 ADJUSTED NET INCOME 2019 2020 in euro millions Revenues 15,898 16,090 EBITA* 1,526 1,627 Income from non-operating equity affiliates 127 186 Interest (46) (37) Income from investments 10 36 Provision for income taxes 177 (454) Non-controlling interests (53) (13
Slide 57: Reconciliations
Full Year 2020 Results - March 3, 2021 RECONCILIATIONS EBIT to EBITA 2019 2020 in euro millions EBIT 1,381 1,468 Amortization and depreciation on intangible assets acquired through business combinations 145 159 EBITA 1,526 1,627 Earnings attributable to Vivendi shareowners to ANI in euro millions 20
Slide 58: Our Commitments to Protect Our Planet
Full Year 2020 Results - March 3, 2021 OUR COMMITMENTS TO PROTECT OUR PLANET Our Commitments YES New commitment to reach T.C.F.D. “net zero” by 2025 Targets for the endogeneous decrease of our Science Based Targets 1 greenhouse gas emissions initiative YES 2025 179,124 Environmental criteria applied
Slide 59: Glossary
Glossary vivendi 59
Slide 60: Glossary
Full Year 2020 Results - March 3, 2021 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 these to be relevant indicators of the group’s operating and financia