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Vivendi — Vivendi Universal — Investor Presentation (June 2006)
28 slides from Vivendi's investor presentation, Jun 13, 2006
Slide 1: Investors Presentation June 2006
Investors Presentation June 2006 IMPORTANT NOTICE: This presentation contains consolidated unaudited earnings established under IFRS. INVESTORS ARE STRONGLY ADVISED TO READ THE IMPORTANT LEGAL DISCLAIMER AT THE END OF THIS PRESENTATION
Slide 2: Innovation and Leadership
Innovation and Leadership Create and market to our subscribers new digital content services for broadband and mobile applications To Strengthen our leadership positions in our complementary content and distribution businesses And Double our Adjusted Net Income over the 2006-2011 period, excluding th
Slide 3: Leading Positions in Media and Telecom
56% 51% 20% Leading global music company €4.9bn Revenues, €480m Earnings from operations 25.6% estimated worldwide market share of physical sales of recorded music Leading Positions in Media and Telecom Leading global online games company €641m Revenues, €41m Earnings from operations 6.6 million pay
Slide 4: Vivendi's Scale and Resources Benefit Our Businesses
Vivendi's Scale and Resources Benefit Our Businesses Improved time-to-market in roll-out of new technologies SFR: 1st operator to launch UMTS and HSDPA offerings (4 to 5 months ahead of Orange) Canal+ available on all platforms: DTH, Cable, DTT, DSL, Mobile, DVB-H Vivendi Games: world leader in onli
Slide 5: Driving Customer Penetration and Technological Lead
Driving Customer Penetration and Technological Lead UMG WMG EMI 325 193 151 World of Warcraft Lineage I Lineage II 6.6 1.8 1.3 1.213814 0.805008 SFR Orange Bouygues Telecom 1.5 0.8 0 Number of 3G Subscribers in France (m) (as of May-2006) Revenues Generated Through Digital Sales (Last 12 months as o
Slide 6: A Growing Stream of Cross-Marketing Initiatives
A Growing Stream of Cross-Marketing Initiatives Divisions Key Initiatives Divisions Involved SFR was the 1st mobile operator to offer almost all of UMG's music catalog A selection of the IMF music channel programming is available over SFR Several games tapping into UMG's music catalog and roster of
Slide 7: Ahead of Our Competitors
Ahead of Our Competitors Our competitors in telecommunications are investing in the media sector: Content platforms, acquisition of exclusive content rights, etc. Our competitors in content creation want to control (at least partially) their distribution: Purchase of network infrastructure and subsc
Slide 8: A Shared Expertise: the Subscription-Based Model
> Our subscribers*: SFR: 17 million CANAL+ Group: 8 million Maroc Telecom: 10 million (fixed line - mobile - Internet) World of Warcraft: 6 million > Benefits of the subscription-based model: Visibility of revenues and ability to generate recurring cash flows Mostly fixed cost base Sale of add-on se
Slide 9: Converting Innovation into Subscribers
News Music 2 million downloads (since June 2005) Video and TV 1.2 million TV/Video sessions 56 channels (of which 31 from CanalSat) 35,000 CanalSat clients on SFR (end of March 2006) Internet access Payment (to come) Games Video call 1.5 million 3G subscribers (end of May 2006) 2 million videoconfer
Slide 10: Corporate Governance in Line with Best-in-Class International Standards
Corporate Governance in Line with Best-in-Class International Standards Two-tiered corporate governance structure: Supervisory Board composed of 10 independent members out of 12 Management Board of 7 individuals, associating all business units to decisions of the Group Committees mostly including in
Slide 11: Experienced Management Team
Experienced Management Team Unified team with a common managerial culture that shares the same goals: Adjusted Net Income Cash flow generation Decentralized management organization characterized by: Profitability of each business unit on a stand-alone basis Rigorous financial control mechanisms Trac
Slide 12: Experienced Management Team Sharing the Same Goals
Experienced Management Team Sharing the Same Goals Jean-Bernard Levy C.E.O Frank Esser Chairman & C.E.O Doug Morris Chairman & C.E.O Rene Penisson Chairman Bertrand Meheut C.E.O Jacques Espinasse Chief Financial Officer Abdeslam Ahizoune C.E.O Groupe CANAL+ Vivendi Games; Group HR UMG SFR Maroc Tele
Slide 13: 2011 Outlook
2011 Outlook Earnings from operations: Annual average growth between 8% and 10% over 2006-2011 Adjusted Net Income: 2006 target: approximately €2.4bn Between €3.5bn and €4.0bn by 2011, i.e. CAGR of approximately 16% excluding the impact of the Consolidated Global Profit Tax System Dividend payout ma
Slide 14: Strategic Plan in Line with the Results Momentum Initiated in 2002
Strategic Plan in Line with the Results Momentum Initiated in 2002 2002A 2003A 2004A 2005A 2006E 2011E -514 349 1338 2078 2400 3750 2.834 0.553 Adjusted Net Income (€m) 3,500 - 4,000 Net Margin (0.9)% 1.4% 7.5% 10.7% approx. 12% approx. 2006E-2011E CAGR (excluding Consolidated Global Profit Tax Syst
Slide 15: Key Assumptions of the Strategic Plan
Key Assumptions of the Strategic Plan Background: 5-year plan announced at AGM and approved by the Supervisory Board on May, 15 2006 Scope of analysis: group perimeter conservatively assumed to be stable Merger between Canal+/TPS from 2007 35% stake in neuf cegetel in 2006 Status quo in Poland Maint
Slide 16: Illustration of Potential Value Creation for Shareholders
Illustration of Potential Value Creation for Shareholders Excluding impact of Consolidated Global Profit Tax System In line with 2006 P/E (excluding impact of Consolidated Global Profit Tax System) On the basis of a share price of €28.0 For illustrative purposes, based on current P/E levels, implied
Slide 17: Appendices
Appendices Financial information presented in the forthcoming pages is in euro million on a comparable basis, unless otherwise mentioned
Slide 18: Universal Music Group
Universal Music Group 480 2004 2005 399 Revenues (€m) 4,893 +20% 480 399 EFO (€m) 4,893 x2.7 259 95 Digital sales (€m) 2004 2005 4,893 4,893 4,819 2004 2005 No.1 worldwide in physical sales of recorded music with an estimated global market share of 25.6% No. 3 worldwide in music publishing Operating
Slide 19: Universal Music Group: Strategy and Growth Drivers to 2011
Universal Music Group: Strategy and Growth Drivers to 2011 2006-2011 outlook Rapid growth of digital, online and mobile sales which could represent more than 25% of revenues in 2011 vs. 5% in 2005... ....Allowing to maintain worldwide market share at a high level Speed up the evolution towards a mus
Slide 20: Vivendi Games
Online Console PC Handheld 05 Sales 49 27 17 7 41 641 4,893 +35% 641 475 2004 2005 Revenues (€m) 2005 Sales EFO (€m) 41 +244 (203)* 2005 2004 * Including €(95)m non-recurring items Global developer, publisher and distributor of interactive games Intellectual property library of over 700 titles World
Slide 21: Vivendi Games: Strategy and Growth Drivers to 2011
Vivendi Games : Strategy and Growth Drivers to 2011 2006-2011 outlook Vivendi Games' main growth drivers: development of Broadband Internet, growth in Asia, games on mobile With a leading worldwide position and a steady improvement of its content and geographical development, World of Warcraft will
Slide 22: CANAL+ Group
CANAL+ Group 2004 2005 Revenues (€m) 4,893 - -6% 176 187 EFO (€m) 4,893 +310k (+4%) 8.3M 7.9M French Pay-TV Portfolio 2004 2005 4,893 +4% 3,407 3,277 2004 2005 French leader in pay-TV production and distribution in France Active presence across all digital distribution platforms 8.3m subscriptions i
Slide 23: CANAL+ Group: Strategy and Growth Drivers to 2011
2006-2011 outlook Growth of pay-TV market with new distribution platforms (ADSL, DTT, mobile) and increased digitalization (nearly 100% digital subscribers in 2011) Strengthening of Canal+ Le Bouquet premium offering and broadening of multi- channel offerings to underpin acquisition of new subscribe
Slide 24: SFR
SFR 2nd largest mobile telecommunications operator in France 35.8% market share at the end of 2005 17.3 million customers of which 63.7% are post-paid clients (March 2006) Leading position in terms of subscriber net adds for the third consecutive year Leader in the 3G market with more than 1.3 milli
Slide 25: SFR: Strategy and Growth Drivers to 2011
SFR : Strategy and Growth Drivers to 2011 2006-2011 outlook Management of subscriber base Low penetration of French market (80%) compared to the rest of Western Europe (98% in average) Benefit from increased penetration in France towards 100%, with a target market share very close to current levels
Slide 26: Maroc Telecom: Growth opportunities
Maroc Telecom: Growth opportunities Morocco's incumbent telecommunications operator with a leading position based on: A segmented and competitive offering tailored to customers' needs An extended distribution network A modern network infrastructure A strong set of brand Attractive market opportuniti
Slide 27: Maroc Telecom: Strategy and Growth Drivers to 2011
Maroc Telecom : Strategy and Growth Drivers to 2011 2006-2011 Outlook Boost profitable growth on mobile market and consolidate leadership position Strengthening of penetration and usage of mobile telecommunication services Launch of innovative services Roll-out of UMTS network in 2007 Intensify comp
Slide 28: Focus on the Consolidated Global Profit Tax System
Focus on the Consolidated Global Profit Tax System Vivendi was admitted to the French Consolidated Global Profit Tax System on August 22, 2004 for a 5-year period. This period may be extended Admission conditioned to the inclusion of SFR and Canal+ in Vivendi scope of consolidation Tax savings of €5
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