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Vivendi — Investor Presentation (May 2012)
47 slides from Vivendi's investor presentation, May 2012
Slide 1: Vivendi Investor Presentation: Strategy & Outlook
May 2012 INVESTOR PRESENTATION VIVENDI STRATEGY & OUTLOOK IMPORTANT NOTICE: Financial statements for the fiscal year ended December 31, 2011 are audited and prepared under IFRS Financial statements for the first quarter ended March 31, 2012 are unaudited and prepared under IFRS Investors are strongl
Slide 2: A world leader in communication and entertainment
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 A WORLD LEADER IN COMMUNICATION AND ENTERTAINMENT Vivendi operates at the heart of the worlds of content, platforms and interactive networks Vivendi is a major player in the digital economy: – Content creation – Products and channels publis
Slide 3: Its businesses are leaders in their respective areas
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 ITS BUSINESSES ARE LEADERS IN THEIR RESPECTIVE AREAS 61%* 100% 100% #1 worldwide in #1 worldwide #1 alternative telecoms video games in music in France 53%* 100% 100%** #1 alternative #1 in telecoms broadband operator #1 in pay TV in Morocco in
Slide 4: 2011 earnings exceeding guidance
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 2011 EARNINGS EXCEEDING GUIDANCE Revenue growth of 0.5% at constant currency Record Adjusted Net Income up 9% vs. 2010, 2011 % change mainly due to SFR transaction impact* and powerful growth engines (GVT and Revenues € 28,813 m + 0.5 %** A
Slide 5: Superior growth engines more than offsetting tough environment
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 SUPERIOR GROWTH ENGINES MORE THAN OFFSETTING TOUGH ENVIRONMENT IN MATURE BUSINESSES €5,726m -€389m +€85m +€438m €5,860m EBITA 2010 SFR and Maroc Canal+, UMG Activision Blizzard EBITA 2011 Telecom and Others and GVT 5
Slide 6: 2011 was another year of solid earnings growth
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 2011 WAS ANOTHER YEAR OF SOLID EARNINGS GROWTH EBITA Adjusted Net Income 2,952 5,860 > 2,850 5,726 2,698 5,390 2,585 2009 2010 2011 2009 2010 Guidance 2011* 2011 In euro millions ► EBITA margin peaking above 20% in 2011 6 * Announced on Novembe
Slide 7: Q1 2012 results: in line with full year outlook
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 Q1 2012 RESULTS: IN LINE WITH FULL YEAR OUTLOOK Revenues of €7,119m, +1.7% excl. Activision Blizzard Activision Blizzard: as expected, combined effect of accounting EBITA of €1,621m, +1.9% excl. Activision Blizzard principles and release sc
Slide 8: 2012 guidance by business confirmed
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 2012 GUIDANCE BY BUSINESS CONFIRMED (AS OF MAY 14, 2012) ACTIVISION BLIZZARD EBITA above €750m (vs. around €750m as of March 1, 2012 ) UNIVERSAL MUSIC GROUP Double digit EBITA margin at constant perimeter* 12% to 15% decrease in EBITDA** SFR CF
Slide 9: Path to earnings returning to growth in 2014
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 PATH TO EARNINGS RETURNING TO GROWTH IN 2014 Recent past: 2008 – 2011 Current Next Simplified group structure Tougher environment in telco Stabilization of SFR and portfolio optimization 4th mobile entrant in France and Maroc Telecom wi
Slide 10: Strengthening and building future cash flow
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 STRENGTHENING AND BUILDING FUTURE CASH FLOW CONTINUED INVESTMENTS IN BRAZIL GVT’s contribution to CFFO expected to ~€2.2bn investment over 2010-2012 to deploy GVT increase by ~€400m from 2011 to 2014 broadband network and pay TV service UMG T
Slide 11: Reasons to invest in Vivendi shares
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 REASONS TO INVEST IN VIVENDI SHARES An attractive valuation* ► 2012 P/E ratio of 6.5x ► 2012 dividend yield close to 8% Focus on growth and free cash flow generation ► 20% of 2011 revenues in emerging markets vs. 14% in 2008 ► ~30% EBITDA m
Slide 12: Outlook and conclusion: 2012 guidance
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 OUTLOOK AND CONCLUSION Stimulate growth initiatives in all businesses to create shareholder value and contribute to group earnings progression in 2014 Continue adapting our cost structure Sustain cash generation Commit to BBB* rating Ad
Slide 13: The best emotions, digitally
THE BEST EMOTIONS, DIGITALLY vervaon Ba “BH GB tes GV, ETT
Slide 14: Financial review
FINANCIAL REVIEW Q1 2012 Results
Slide 15: EBITA up 1.9% excl. Activision Blizzard
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 EBITA UP 1.9% EXCL. ACTIVISION BLIZZARD, DUE TO STRONG PERFORMANCE FROM GVT AND UMG In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency Activision Blizzard 395 502 - 21.3% - 24.6% Universal Music Group 68 46 + 47.8% + 43.8% SFR 561
Slide 16: Lower adjusted net income due to higher taxes and NBCU deconsolidation
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 LOWER ADJUSTED NET INCOME DUE TO HIGHER TAXES AND NBCU DECONSOLIDATION In euro millions - IFRS Q1 2012 Q1 2011 Change % Revenues 7,119 7,184 - 65 - 0.9% EBITA 1,621 1,705 - 84 - 4.9% Income from equity affiliates (19) (2) - 17 Incl. contractual
Slide 17: Evolution of net debt
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 Stable EVOLUTION OF NET DEBT CFFO before capex at €1.7bn Net Debt Net financial Net Debt December 31, CFFO Capex,net Interest & tax investments March 31, 2011 before Capex, net paid and other and other 2012 (12.0) +1.7 (2.1) 0.2 (12.5) (0.3) In
Slide 18: Prudent funding strategy
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 PRUDENT FUNDING STRATEGY OUR OBJECTIVES WHERE WE STAND* COMMIT TO BBB / Baa2 / BBB RATING Sustained BBB rating since 2004 / 2005** MAINTAIN / INCREASE AVERAGE Average maturity of the debt: 4.3 years DEBT DURATION ABOVE 4 YEARS vs. 4.0 years at
Slide 19: Financing operations since January 2012
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 FINANCING OPERATIONS SINCE JANUARY 2012 January: Setting up of a €1.1bn 5 year bank credit facility (refinancing the €1.5bn tranche of the €5bn credit facility maturing in December 2012 and a €492m facility maturing in March 2012) January a
Slide 20: Activision Blizzard highlights
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 SLIGHTLY BETTER-THAN-EXPECTED RESULTS IFRS - Q1 2012 Q1 2011 Change Constant In euro millions currency 2012 GUIDANCE UPGRADED Revenues 894 1,061 - 15.7% - 19.1% Activision 649 671 - 3.3% - 7.3% EBITA above €750m Blizzard 196 335 - 41.5% - 43.8%
Slide 21: Universal Music Group highlights
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 EXCELLENT START OF THE YEAR In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency 2012 GUIDANCE CONFIRMED Revenues 961 881 + 9.1% + 6.7% Double digit EBITA margin EBITA 68 46 + 47.8% + 43.8% at constant perimeter* o/w restructuring c
Slide 22: SFR highlights
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 IN-LINE Q1 RESULTS AND CONFIRMED 2012 GUIDANCE In euro millions - IFRS Q1 2012 Q1 2011 Change Revenues 2,927 3,056 - 4.2% 2012 GUIDANCE CONFIRMED Mobile 1,988 2,132 - 6.8% 12% to 15% decrease in EBITDA* Broadband Internet & Fixed 991 988 + 0.3%
Slide 23: Maroc Telecom Group highlights
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 POSITIVE MOMENTUM In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency 2012 GUIDANCE CONFIRMED Revenues 676 672 + 0.6% + 0.2% Morocco 529 549 - 3.6% - 4.0% EBITA margin around 38% International 155 128 + 21.1% + 21.5% Stable CFFO in
Slide 24: GVT highlights
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 CONTINUED GROWTH & SUCCESSFUL PAY TV LAUNCH In euro millions - IFRS Q1 2012 Q1 2011 Change Constant Currency 2012 GUIDANCE GUIDANCECONFIRMED 2012 Revenues 432 329 + 31.3% + 35.0% Telecom 424 329 + 28.9% + 32.5% Revenue growth in the mid-30's at
Slide 25: Canal+ Group highlights
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 RESILIENT PROFIT DESPITE VAT IMPACT In euro millions - IFRS Q1 2012 Q1 2011 Change Constant currency 2012 GUIDANCE CONFIRMED Revenues 1,232 1,192 + 3.4% + 3.8% o/w Canal+ France 1,030 1,008 + 2.2% + 2.2% Slight increase in EBITA at constant per
Slide 26: The best emotions, digitally
THE BEST EMOTIONS, DIGITALLY vervaon Ba “BH GB tes GV, ETT
Slide 27: Appendices: Details of business operations
APPENDICES Details of Business Operations
Slide 28: Activision Blizzard Q1 results
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 Non-GAAP* Net revenues by distribution Q1 2012 Q1 2011 % Change Non-GAAP* - Q1 2012 Q1 2011 Change channel - In dollar millions In dollar millions Retail channels 224 240 -7% Activision 271 323 -16% Digital online channels ** 298 440 -32% Blizzard 251
Slide 29: Reconciliation to IFRS
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 RECONCILIATION TO IFRS In millions Q1 2012 In millions Q1 2012 Non-GAAP Net Revenues $587 Non-GAAP Operating Income/(Loss) $90 Changes in deferred net revenues (a) $585 Changes in deferred net revenues and related cost of sales (a) $447 Net Revenues in
Slide 30: UMG recorded music and upcoming releases
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 Recorded music : Top-selling artists* Million units Q1 2012 Q1 2011 Madonna 2.0 Justin Bieber 1.3 Lana Del Rey 1.5 Rihanna 1.1 Recorded Music Revenues Q1 2012 Q1 2011 Nicki Minaj 1.1 Les Enfoirés 0.9 Europe 39% 43% Van Halen 0.9 Eminem 0.5 North Americ
Slide 31: SFR revenues
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 Q1 2012 Q1 2011 Change Change excl. In euro millions - IFRS Regulatory Impacts* Service revenues 1,863 2,004 - 7.0% - 0.2% of which data revenues from mobile services 713 688 + 3.6% Equipment sales, net 125 128 - 2.3% Mobile revenues 1,988 2,132 - 6.8%
Slide 32: SFR mobile, broadband internet and fixed
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 Q1 2012 Q1 2011 Change MOBILE Customers (in '000)* 20,843 21,039 - 0.9% Postpaid customers (in '000)* 16,292 15,916 + 2.4% Proportion of postpaid clients* 78.2% 75.6% + 2.6 pts Smartphone penetration ** 43% 31% + 12 pts Market share on customer base (%
Slide 33: Maroc Telecom Morocco and international
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 MOROCCO Q1 2012 Q1 2011 In '000 Mar. 31, 2012 Mar. 31, 2011 Mobile customers (in '000) 17,194 16,655 Mauritania Postpaid mobile customers (in '000) 1,081 877 Mobile customers 1,848 1,696 Mobile ARPU (MAD/customer/month) 80 84 Fixed lines 41 40 Number o
Slide 34: GVT operating data
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 In '000 Mar. 31, 2012 Mar. 31, 2011 Change In BRL millions - IFRS Q1 2012 Q1 2011 Change Total Homes passed 7,677 5,699 + 34.7% Total Revenues 1,009 747 + 35.1% Total Lines in Services (LIS) 6,941 4,765 + 45.7% Voice 631 462 + 36.6% Retail and SME* 4,6
Slide 35: Canal+ Group portfolio
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 In '000 Mar. 31, 2012 Mar. 31, 2011 Change Portfolio Canal+ Group 12,817 12,525 + 292 ow Canal+ France* 11,097 10,886 + 211 ow Poland & Vietnam 1,720 1,639 + 81 35 * Individual and collective subscriptions at Canal+, CanalSat in Mainland France, overse
Slide 36: Appendices: Detailed Vivendi financial results
APPENDICES Detailed Vivendi Financial Results
Slide 37: Revenues
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 REVENUES Constant In euro millions - IFRS Q1 2012 Q1 2011 Change currency Activision Blizzard 894 1,061 - 15.7% - 19.1% Universal Music Group 961 881 + 9.1% + 6.7% SFR 2,927 3,056 - 4.2% - 4.2% Maroc Telecom Group 676 672 + 0.6% + 0.2% GVT 432 329 + 31
Slide 38: EBITDA
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 EBITDA In euro millions - IFRS Constant Q1 2012 Q1 2011 Change currency Activision Blizzard 429 559 - 23.3% - 26.4% Universal Music Group 101 79 + 27.8% + 25.8% SFR 930 923 + 0.8% + 0.8% Maroc Telecom Group 379 361 + 5.0% + 4.7% GVT 177 138 + 28.3% + 3
Slide 39: Interest
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 INTEREST In euro millions (except where noted) – IFRS Q1 2012 Q1 2011 Interest (139) (101) Interest expense on borrowings (145) (113) Average interest rate on borrowings (%) 3.63% 4.17% Average outstanding borrowings (in euro billions) 16.0 10.8 Intere
Slide 40: Income tax
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 INCOME TAX Q1 2012 Q1 2011 In euro millions – IFRS Adjusted Net income Adjusted Net income net income net income Utilization of Vivendi SA’s tax losses carried forward 109 103 205 261 Tax charge (505) (474) (496) (459) Provision for income taxes (396)
Slide 41: Reconciliation of adjusted net income to net income, group share
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 RECONCILIATION OF ADJUSTED NET INCOME TO NET INCOME, GROUP SHARE In euro millions - IFRS Q1 2012 Q1 2011 Adjusted Net Income 823 950 Amortization and impairment losses of intangible assets acquired (111) (123) through business combinations Incl. foreig
Slide 42: Vivendi debt maturity profile
Q 1 2 0 1 2 R e s u l t s – M a y 1 4 , 2 0 1 2 VIVENDI DEBT MATURITY PROFILE* (in euro millions, as of May 11, 2012**) 2,600 2,240 Bank credit facility maturities 1,500 Bond 2,000 maturities 1,923 2,000 1,538 1,194 1,050 1,000 700 700 615 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 *
Slide 43: Appendices: Glossary & disclaimers
APPENDICES Glossary & Disclaimers
Slide 44: Glossary
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 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 affiliates, discont
Slide 45: Activision Blizzard standalone definition & disclaimer
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 ACTIVISION BLIZZARD STANDALONE DEFINITION & DISCLAIMER NON-GAAP financial measures Activision Blizzard provides net revenues, net income (loss), earnings (loss) per share and operating margin data and guidance both including (in accordance with
Slide 46: Important legal disclaimer
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 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 of
Slide 47: Investor relations team
I n v e s t o r P r e s e n t a t i o n – M a y 2 0 1 2 INVESTOR RELATIONS TEAM Jean-Michel Bonamy Executive Vice President Head of Investor Relations +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 1