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Vivendi — Vivendi Universal — Q3 2003 Earnings Presentation
29 slides from Vivendi's earnings presentation, Dec 5, 2003
Slide 1: Third Quarter and Nine Months Ended September 30, 2003 Earnings
Third Quarter and Nine Months Ended September 30, 2003 Earnings Jacques ESPINASSE Senior Executive Vice President and Chief Financial Officer
Slide 2: 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 statements as a result of a
Slide 3: Events since September 24, 2003
VU and Vodafone increased their cooperation in France: Coordination in the development, and rollout of new products and services, including Vodafone live! and development of operational synergies, Simplification of Cegetel Groupe structure, Payment of quarterly dividends from 2004 and liquidity arra
Slide 4: VU-Vodafone: a Win-Win Agreement
VU-Vodafone: a Win-Win Agreement Create synergies in development and procurement Simplify structure by merging Transtel, Cofira and SFR into Cegetel Groupe, to be renamed "SFR" Dividends will be paid quarterly beginning in 2004 In addition, VU to have access to available cash pro rata to its shareho
Slide 5: NBC Universal
NBC Universal VU has agreed to combine Vivendi Universal Entertainment with NBC to create NBC Universal. Deal value: VUE $14 billion; NBCU ~ $43 billion VU to receive ^$3.3 billion in cash VUE shareholders to receive 20% of NBCU VU to deconsolidate $1.7 billion in debt Closing expected in 1H 2004 Ne
Slide 6: Third Quarter 2003 Performance Overview
For a reconciliation of net income (loss) to adjusted net income (loss) please refer to the table in the supplementary schedules attached to the December 2, 2003 Third Quarter earnings press release. Proportionate cash flow from operations excludes minority interests The pro forma information illust
Slide 7: First Nine Months of 2003 Performance Overview
First 9 Months of 2003 Performance Overview For a reconciliation of net income (loss) to adjusted net income (loss) please refer to the table in the supplementary schedules attached to the December 2, 2003 Third Quarter earnings press release. Proportionate cash flow from operations excludes minorit
Slide 8: Consolidated Third Quarter 2003 Income Statement
Consolidated Third Quarter 2003 Income Statement This illustrative consolidated income statement presents the accounting of Veolia Environnement and Vivendi Universal Publishing (VUP) assets sold in 2002 and 2003 using the equity method from January 1, 2003.
Slide 9: Consolidated Nine Months Ended Sept. 30, 2003 Income Statement
Consolidated Nine Months Ended Sept. 30, 2003 Income Statement This illustrative consolidated income statement presents the accounting of Veolia Environnement and Vivendi Universal Publishing (VUP) assets sold in 2002 and 2003 using the equity method from January 1, 2003.
Slide 10: First Nine Months 2003 Pro Forma Operating Income
Canal+ Group UMG VU Games VUE SFR/Cegetel Maroc Telecom Holding Other** 9 months 2002 PF -20 185 37 884 1206 315 -254 -333 9 months 2003 378 -38 -110 692 1515 457 -213 -114 Details by business (pro forma at actual exchange rates): SFR / Cegetel Maroc Telecom UMG VUE Canal+ Group VU Games Holding 70%
Slide 11: First Nine Months 2003, Adjusted Net Income (non GAAP)
First Nine Months 2003, Adjusted Net Income (non GAAP) As presented in the December 2, 2003 press release
Slide 12: Liquidity Forecast Update
4Q 2002 1Q 2003 2Q 2003 3Q 2003 4Q 2003 1Q 2004 2Q 2004 3Q 2004 4Q 2004 Assumptions as of Sept. 24, 2003 (if VE is sold) 5 1.8 3.9 3.2 3.4 2.6 3.4 3.5 3.7 Put on 16% of Maroc Tel. Liquidity Available End of Quarter at VU SA Level (Cash + undrawn credit lines, in € billion) BSkyB Exchangeable (€1.5bn
Slide 13: Overview of Net Debt Position
Overview of Net Debt Position June 30, 2002 Dec. 31, 2002 June 30, 2003 Sept. 30, 2003 Dec. 31, 2003 June 30, 2004 Dec. 31, 2004 Est 18.8 12.3 13.7 12.8 13 5 Ouest 16.1 4 Veolia Environnement net debt 34.9 18.8 Net Debt Expected Evolution (in Euro billion) 16.3 12.3 13.7 ^ 5.0 Pro Forma for the acqu
Slide 14: The Group Reiterates its 2003 Guidance
The Group Reiterates its 2003 Guidance (1) Numbers are Pro Forma, except Adjusted Net Income, which is actual.
Slide 15: Business Performance
eee VIVENDI UNIVERSAL Business Performance December 2, 2003 — unaudited 6 ”
Slide 16: Canal+ Group: 3rd quarter 2003 Performance
Canal+ Group: 3rd quarter 2003 Performance Revenue down 15%: At constant scope, revenue increased 3% Pay TV France up 3%: Strong performances at CanalSatellite and MediaOverseas StudioCanal up 16% Operating Income positive, up 316%: Pay TV France, operating income up 89%: Canal+ premium channel subs
Slide 17: Music: 3rd quarter 2003 Performance
Music: 3rd quarter 2003 Performance Revenue down 9% at constant currency: Music market continues to decline Major sellers in the 3rd quarter: Bad Boys 2 OST, Limp Bizkit, Mary J. Blige, Sting, Nickelback Operating Income down to €4 million: Lower sales and higher proportion of distributed label and
Slide 18: Vivendi Universal Games: 3rd quarter 2003 Performance
Vivendi Universal Games: 3rd quarter 2003 Performance Revenue down 39% at constant currency Key launches were Simpsons Hit and Run, Warcraft III expansion pack in Europe, Homeworld 2, Bounty Hunter, Buffy Chaos Bleeds and Crash V, compared with a stronger line-up in 2002 (Warcraft III in Europe, The
Slide 19: Vivendi Universal Entertainment: 3rd Quarter 2003 Performance
Vivendi Universal Entertainment: 3rd Quarter 2003 Performance Revenue up 13% at constant currency: Universal Picture Group up 38% Theatrical successes of American Wedding and Seabiscuit, Rundown and Johnny English Stronger home video revenues Universal Television: Universal Television Networks up 5%
Slide 20: SFR/Cegetel: 3rd Quarter 2003 Performance
SFR/Cegetel: 3rd Quarter 2003 Performance SFR/Cegetel: 3rd Quarter 2003 Performance Revenue up 8%: Mobile, up 10% to €1.7bn: Strong growth of customer base Favorable customer mix: 56.9% post paid customer versus 51.3% in 3Q 2002 Post paid customer base up 20% vs 3Q 2002 Fixed and others, down 7% to
Slide 21: Maroc Telecom: 3rd Quarter 2003 Performance
Maroc Telecom: 3rd Quarter 2003 Performance Maroc Telecom: 3rd Quarter 2003 Performance Revenue flat at constant currency: Mobile: Revenue up 8%. 5 million customers Fixed activities: Revenue slightly down due to lower national voice traffic and international incoming traffic 1.1 million customers O
Slide 22: Details on Third Quarter and Nine Months 2003 Accounts
Details on Third Quarter and Nine Months 2003 Accounts
Slide 23: Note: The % is provided for information purposes only. The reported numbers are 100%
Note: The % is provided for information purposes only. The reported numbers are 100% consolidated. * As of January 23, 2003, VU holds a 70% interest in Cegetel Groupe (against 44% as of Dec. 31, 2002), representing 56% of SFR (against 35% as of Dec. 31, 2002). ** The pro forma information illustrate
Slide 24: Third Quarter 2003 Segment Operating Income
Third Quarter 2003 Segment Operating Income Note: The % is provided for information purposes only. The reported numbers are 100% consolidated. * As of January 23, 2003, VU holds a 70% interest in Cegetel Groupe (against 44% as of Dec. 31, 2002), representing 56% of SFR (against 35% as of Dec. 31, 20
Slide 25: Note: The % is provided for information purposes only. The reported numbers are 100%
Note: The % is provided for information purposes only. The reported numbers are 100% consolidated. * As of January 23, 2003, VU holds a 70% interest in Cegetel Groupe (against 44% as of Dec. 31, 2002), representing 56% of SFR (against 35% as of Dec. 31, 2002). ** The pro forma information illustrate
Slide 26: Nine Months 2003 Segment Operating Income
Nine Months 2003 Segment Operating Income Note: The % is provided for information purposes only. The reported numbers are 100% consolidated. * As of January 23, 2003, VU holds a 70% interest in Cegetel Groupe (against 44% as of Dec. 31, 2002), representing 56% of SFR (against 35% as of Dec. 31, 2002
Slide 27: Third Quarter 2003 Pro Forma Operating Income
Canal+ Group UMG VU Games VUE SFR/Cegetel Maroc Telecom Holding Other** 3Q 2002 PF 32 16 -2 230 460 111 -67 -152 3Q 2003 133 4 -58 197 531 174 -59 -26 Details by business (pro forma at actual exchange rates): SFR / Cegetel Maroc Telecom UMG VUE Canal+ Group VU Games Holding 70%*/56% 35% 86% 92% 100%
Slide 28: Third Quarter 2003, Adjusted Net Income (non GAAP)
Third Quarter 2003, Adjusted Net Income (non GAAP) As presented in the December 2, 2003 press release
Slide 29: P&L Details - 3rd Quarter and First 9 Months of 2003
Exceptional Items: €144 €481 Disposal of Telepiu (reversal of provision) €22 €220 Disposal of Express/Expansion - €104 Gain related to the increase in capital of Sogecable: €72 €72 Disposal of Comareg - €42 Disposal of International Telecom assets - €36 Other disposals €50 €7 Taxes: €(212) €(845) Cu