Vivendi Se · EURONEXT:VIV
Vivendi — Investor Presentation (December 2013)
37 slides from Vivendi's investor presentation, Dec 3, 2013
Slide 1: Investor Presentation
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 December 2013 INVESTOR PRESENTATION IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimers at the end of this presentation
Slide 2: De-merger plan to be implemented end June 2014
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 DE-MERGER PLAN TO BE IMPLEMENTED END JUNE 2014 ■ Objective: split the Group into two separate entities... Vivendi to become an international media group, with very strong brands in the production and distribution of original content
Slide 3: Vivendi is delivering on strategic transformation
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 VIVENDI IS DELIVERING ON STRATEGIC TRANSFORMATION ■ Strategic transformation well advanced: ► Activision Blizzard: sale of over 85% of stake* for $8.2 billion completed on October 11, 2013; 83 million remaining shares representing $1.
Slide 4: Acquisition of Canal+ France stake is in line with strategy; 5% accretive on earnings
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 ACQUISITION OF CANAL+ FRANCE STAKE IS IN LINE WITH STRATEGY; 5% ACCRETIVE ON EARNINGS Strategic and Mediaco will own 100% of all its businesses financial Benefit of tax integration benefits 5% accretive on 2014 EPS Acquisition
Slide 5: Key financial metrics as of September 30, 2013
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 KEY FINANCIAL METRICS AS OF SEPTEMBER 30, 2013 % Change, yoy, % Change, yoy at constant currency Revenues: € 16,190 m – 1.0 % + 1.0 % EBITDA: € 3,851 m – 12.6 % – 10.7 % EBITA: € 2,121 m – 25.7 % – 23.8 % Adjusted Net Income:
Slide 6: Q3 2013 Highlights
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 Q3 2013 HIGHLIGHTS ■ Our businesses delivered performances in line with full-year targets: guidance for each business is confirmed Excellent commercial momentum for UMG (+7%* underlying growth in Q3 in revenues excluding EMI) and st
Slide 7: EBITDA
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 EBITDA Incl. higher investment in content and temporary unfavorable calendar of Ligue 1 football games Constant In euro millions - IFRS 9M 2012 9M 2013 Change currency Canal+ Group 908 847 - 6.7% - 6.8% Universal Music Group 321 386 +
Slide 8: EBITA
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 EBITA Constant In euro millions - IFRS 9M 2012 9M 2013 Change currency Incl. €28m transition costs Canal+ Group 722 647 - 10.4% - 10.5% for D8/D17 and nc+ in 9M 2013 vs. €4m in 9M 2012 Universal Music Group 238 255 + 7.1% + 12.5% Incl
Slide 9: Adjusted Net Income
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 ADJUSTED NET INCOME In euro millions - IFRS 9M 2012 9M 2013 Change % change% Revenues 16,347 16,190 - 157 - 1.0% EBITA 2,854 2,121 - 733 - 25.7% Interest rate on borrowings of 3.32% in Income from equity affiliates (19) (9) + 10 9M 20
Slide 10: Net Debt Evolution
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 NET DEBT EVOLUTION Net Debt Net Debt Reclassification of Net Net Debt Completed Announced Sept. 30, Dec. 31, CFFO Capex, net Interest & tax Dividends to Parlophone Debt* Sept. 30, transactions MT disposal 2013, before Capex, paid and
Slide 11: Active optimization of debt structure and cost
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 ACTIVE OPTIMIZATION OF DEBT STRUCTURE AND COST ■ Activision Blizzard €6.0bn sales proceeds: used immediately to reduce bonds by €3.1bn to avoid negative cost-of-carry: Repayment of 78% of the total US dollar securities debt for €1.6
Slide 12: Canal+ Group: Growth drivers making an impact
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 GROWTH DRIVERS MAKING AN IMPACT Constant In euro millions - IFRS 9M 2012 9M 2013 Change currency 2013 GUIDANCE Revenues 3,647 3,857 + 5.8% + 5.9% EBITA around €650m EBITA before transition costs 726 675 - 7.0% - 7.1% (excluding transi
Slide 13: Universal Music Group: Revenue growth improving
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 REVENUE GROWTH IMPROVING Constant In euro millions - IFRS 9M 2012 9M 2013 Change currency 2013 GUIDANCE Revenues 2,903 3,398 + 17.1% + 21.9% Increase in EBITA with positive EBITA 238 255 + 7.1% + 12.5% contribution from EMI Recorded M
Slide 14: GVT: High growth sustained in a tough environment
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 HIGH GROWTH SUSTAINED IN A TOUGH ENVIRONMENT Constant In euro millions - IFRS 9M 2012 9M 2013 Change Currency 2013 GUIDANCE Revenues 1,282 1,297 + 1.2% + 14.4% Revenue growth: Mid “teens” at constant currency Retail & SME 1,096 1,159
Slide 15: SFR: Improved commercial trends
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 IMPROVED COMMERCIAL TRENDS In euro millions - IFRS 9M 2012 9M 2013 Change 2013 GUIDANCE Revenues 8,508 7,616 - 10.5% Mobile 5,697 4,758 - 16.5% EBITDA around €2.8 billion Broadband Internet & Fixed 2,959 2,953 - 0.2% Intercos (148) (9
Slide 16: Conclusion
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 CONCLUSION Vivendi is delivering on strategic transformation Confirmed full year guidance for each business Key priorities for Q4 2013: Focus on cash flow generation Pursue integration of 2012 acquisitions and deliver announ
Slide 17: Appendices
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 APPENDICES
Slide 18: Changes in perimeter
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 CHANGES IN PERIMETER VIVENDI Continuing operations as of September 30, 2013 100%* 100% 100% 100% 100% #1 alternative #1 in pay TV #1 worldwide broadband operator #1 alternative telecoms in France in music in Brazil in France Discontin
Slide 19: Appendices: Details of Business Operations
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 APPENDICES Details of Business Operations
Slide 20: Canal+ Group subscriber portfolio
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 September 30, September 30, In '000 Change 2012 2013 Portfolio Canal+ Group 13,015 13,998 + 983 ow Canal+ France* 11,236 11,278 + 42 ow Poland** & Vietnam 1,778 2,720 + 942 * Individual and collective subscriptions at Canal+, CanalSat
Slide 21: Universal Music Group: Recorded music best sellers
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 Recorded music : Best Sellers* In euro millions 9M 2012 9M 2013 Recorded Music Revenues 9M 2012 9M 2013 Europe 39% 38% Justin Bieber Imagine Dragons North America 38% 42% Nicki Minaj Rihanna Asia 16% 13% Lana del Rey Robin Thicke Rest
Slide 22: GVT operating and financial data
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 September September Change 9M 2012 9M 2013 In '000 30, 2012* 30, 2013 In BRL millions - IFRS Change Retail & SME - Homes passed 8,920 10,108 + 13.3% Total Revenues 3,147 3,599 + 14.4% Retail & SME 2,689 3,218 + 19.7% Retail & SME - Re
Slide 23: SFR revenues and regulatory impacts
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 Change excl. In euro millions - IFRS 9M 2012 9M 2013 Change Regulatory Impacts* Service revenues 5,362 4,408 - 17.8% - 13.3% Equipment sales, net 335 350 + 4.5% Mobile revenues 5,697 4,758 - 16.5% - 12.2% Broadband Internet and fixed
Slide 24: SFR Mobile, Broadband Internet and Fixed
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 9M 2012 9M 2013 Change MOBILE Customers (in '000)* 20,876 21,237 + 1.7% Postpaid customers (in '000)* 16,454 17,732 + 7.8% Proportion of postpaid clients* 78.8% 83.5% + 4.7 pts Smartphone penetration ** 47% 56% + 9 pts Market share on
Slide 25: 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 – D e c e m b e r 2 0 1 3 APPENDICES Details for Discontinued Operations
Slide 26: Maroc Telecom: Solid fundamentals maintained
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 SOLID FUNDAMENTALS MAINTAINED In euro millions - IFRS 9M 2012 9M 2013 Change Revenues 2,028 1,927 - 5.0% EBITDA 1,128 1,112 - 1.4% Customer bases in Morocco continue to grow: postpaid mobile (+15.2%), 3G internet (+31.2%), and ADSL
Slide 27: 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 – D e c e m b e r 2 0 1 3 APPENDICES Detailed Vivendi Financial Results
Slide 28: Revenues
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 REVENUES Constant Constant Q3 2012 Q3 2013 Change In euro millions - IFRS 9M 2012 9M 2013 Change currency currency 1,177 1,257 + 6.8% + 7.4% Canal+ Group 3,647 3,857 + 5.8% + 5.9% 981 1,162 + 18.5% + 27.7% Universal Music Group 2,903
Slide 29: Q3 EBITDA
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 Q3 EBITDA Constant In euro millions - IFRS Q3 2012 Q3 2013 Change currency Canal+ Group 311 280 - 10.0% - 9.9% Universal Music Group 102 149 + 46.1% + 56.0% GVT 182 177 - 2.7% + 15.3% SFR 887 731 - 17.6% - 17.6% Holding & Corporate (2
Slide 30: Q3 EBITA
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 Q3 EBITA Constant In euro millions - IFRS Q3 2012 Q3 2013 Change currency Canal+ Group 239 217 - 9.2% - 9.3% Universal Music Group 82 112 + 36.6% + 46.8% GVT 118 102 - 13.6% + 1.9% SFR 537 334 - 37.8% - 37.8% Holding & Corporate (25)
Slide 31: Interest
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 INTEREST In euro millions (except where noted) – IFRS 9M 2012 9M 2013 Interest (406) (413) Interest expense on borrowings (428) (429) Average interest rate on borrowings (%) 3.52% 3.32% Average outstanding borrowings (in euro billions
Slide 32: Income Taxes
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 INCOME TAXES 9M 2012 9M 2013 In euro millions – IFRS Adjusted Net income Adjusted Net income net income net income Tax savings related to the Vivendi SA's French Tax 274 226 239 178 Group and Consolidated Global Profit Tax Systems Tax
Slide 33: Reconciliation of Adjusted Net Income to Net Income, Group Share
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 RECONCILIATION OF ADJUSTED NET INCOME TO NET INCOME, GROUP SHARE In euro millions - IFRS 9M 2012 9M 2013 Adjusted Net Income 1,600 1,248 Amortization and impairment losses of intangible assets acquired (404) (357) through business com
Slide 34: Appendices: Glossary & Disclaimer
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 APPENDICES Glossary & Disclaimer
Slide 35: Glossary
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 GLOSSARY Adjusted earnings before interest and income taxes (EBITA): As defined by Vivendi, EBITA corresponds to EBIT (defined as the difference between income and charges that do not result from financial activities, equity affiliate
Slide 36: Important Legal Disclaimer
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 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
Slide 37: Investor Relations Team
I n v e s t o r P r e s e n t a t i o n – D e c e m b e r 2 0 1 3 INVESTOR RELATIONS TEAM Jean-Michel Bonamy Deputy CFO +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com PARIS NEW YORK 42, avenue de Friedland 800 Third Avenue 75380 Paris cedex 08 / France New York, NY 10022 / USA Phone: +33.1.71.71.3