Slide 1: Full Year 2019 Results
February 13, 2020 FULL YEAR 2019 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 fiscal year ended December 31, 2019 dans le dossier 02. Mentions & Tags Financial statements audited and prepared
Slide 2: Important Legal Disclaimer
Full Year 2019 Results - February 13, 2020 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 th
Slide 3: Summary
Full Year 2019 Results - February 13, 2020 SUMMARY 1 2019 Key Highlights 2 2019 Financials 3 Business Unit Performances 4 Q&A 5 Appendices and glossary 3
Slide 4: 2019 Key Highlights
ARNAUD DE PUYFONTAINE Chairman of the Management Board Chief Executive Officer 2019 Key Highlights 4
Slide 5: 2019: Another Year of Value Creation for Vivendi
Full Year 2019 Results - February 13, 2020 2019: ANOTHER YEAR OF VALUE CREATION FOR VIVENDI ■ Continued strong growth momentum ■ UMG: very strong performance with more than €7.1 Bn in revenues, +18.9% and EBITA of €1.1 Bn (+24.6%) ■ Canal+: good growth of international TV operations and strategic pa
Slide 6: Evolution of UMG's Share Capital
Full Year 2019 Results - February 13, 2020 EVOLUTION OF UMG’S SHARE CAPITAL ■ Signing of the agreement* with a Tencent-led consortium: ■ Divestiture of 10% of UMG’s share capital based on an enterprise value of €30 Bn for 100% of UMG ■ Option to acquire, on the same price basis, an additional amount
Slide 7: Successful Integration of Editis
Full Year 2019 Results - February 13, 2020 SUCCESSFUL INTEGRATION OF EDITIS ■ Integration of Editis since February 1, 2019 ■ Strong results driven by the reform in high school curricula in France, reinforcing its leading position in text book publishing with Nathan and Bordas ■ The literature segmen
Slide 8: Successful Acquisition of M7
Full Year 2019 Results - February 13, 2020 SUCCESSFUL ACQUISITION OF M7 Canal+ Group‘s subscriber base above 20M worldwide, including almost 12M for international ▪ Acquisition completed on September 12, 2019 for a total amount of slightly over €1 Bn ▪ A large pay-TV company operating in 7 European
Slide 9: Equity Affiliates
Full Year 2019 Results - February 13, 2020 EQUITY AFFILIATES ■ Banijay Group ■ In October 2019, Banijay Group entered into an agreement* for the acquisition of 100% of Endemol Shine Group’s share capital ■ Vivendi supports the creation of an international leader in the production of audiovisual cont
Slide 10: Return to Shareholders
Full Year 2019 Results - February 13, 2020 RETURN TO SHAREHOLDERS ■ Total shareholder returns of €3.5 Bn* (vs. a return of €568 M in dividends in 2018) ■ 115.9 M shares repurchased between May 28, 2019 and February 4, 2020 (8.85% of the share capital): € 2.9 Bn* ■ 130.9 M shares cancelled (10% of th
Slide 11: Shareholders' Meeting on April 20, 2020
Full Year 2019 Results - February 13, 2020 SHAREHOLDERS’ MEETING ON APRIL 20, 2020 ■ Share repurchases ▪ Renewal of the authorization granted to the Management Board by the Shareholders’ Meeting of April 15, 2019 ‐ To repurchase shares at a maximum purchase price of €26 per share, within the limit o
Slide 12: 2019 Financials
HERVÉ PHILIPPE Member of the Management Board Chief Financial Officer 2019 Financials 12
Slide 13: Scope of Consolidation, Currencies and IFRS Impacts
Full Year 2019 Results - February 13, 2020 SCOPE OF CONSOLIDATION, CURRENCIES AND IFRS IMPACTS Revenues EBITA Organic growth rate +5.6% +10.8% Consolidation scope impact +6.6pts +5.4pts Growth at constant currency rate +12.2% +16.2% FX rate impact +1.9pts +2.3pts Actual growth rate +14.1% +18.5% ▪ M
Slide 14: P&L
Full Year 2019 Results - February 13, 2020 P&L 2018 2019 D (%) in euro millions Revenues 13,932 15,898 +14.1% / EBITA* ** 1,288 1,526 +18.5% EBIT 1,182 1,381 +16.9% Income from non-operating equity affiliates 122 67 Interest (47) (46) Income from investments 20 10 Other financial income and charges
Slide 15: Cash Evolution
Full Year 2019 Results - February 13, 2020 CASH EVOLUTION (in euro billions) -1 1 0.2 -0.8 +0.4 -1.1 Dividends (-€636 M) -3.3 Share buybacks (-€2.664 M) -0.4 +0.9 * (4.1) Net Cash Acquisition of Sale of Acquisition Shareholder CFFO Interest, taxes Net Debt Proceeds Proforma Net as of Editis remainin
Slide 16: Consolidated Balance Sheet
Full Year 2019 Results - February 13, 2020 CONSOLIDATED BALANCE SHEET Assets Equity and Liabilities January 1, 2019* December 31, 2019 January 1, 2019* December 31, 2019 in euro millions in euro millions Goodwill 12,438 14,690 Consolidated equity** 17,412 15,575 Intangible and tangible assets 6,075
Slide 17: Business Unit Performances
Business Unit Performances 17
Slide 18: Revenues and EBITA by Business Unit
Full Year 2019 Results - February 13, 2020 REVENUES AND EBITA BY BUSINESS UNIT Revenues by business unit D organic 2018 2019 D (%) in euro millions (%) Universal Music Group 6,023 7,159 +18.9% +14.0% Canal+ Group 5,166 5,268 +2.0% -0.9% Havas Group 2,319 2,378 +2.6% -1.0% Editis* - 687 na na Other b
Slide 19: Universal Music Group
Universal Music Group vivendi 19
Slide 20: Universal Music Group
Full Year 2019 Results - February 13, 2020 UNIVERSAL MUSIC GROUP Continuous organic growth of the revenues Revenue growth driven by all activities +14.0% 15.0% +21.5% 7,000 6,500 10.0% +10.0% 6,000 +10.0% 5.0% 7,159 5,500 3,325 +3.1% +9.2% - 2,596 5,000 6,023 5,673 +73.7% 5,267 (5.0%) 4,500 949 1,01
Slide 21: Universal Music Group
Full Year 2019 Results - February 13, 2020 UNIVERSAL MUSIC GROUP EBITA growth Streaming and subscriptions growth 1,300 +25.0% 3,500 +800 +729 +22.3% +700 1,100 3,000 +20.0% +600 +22.1% +625 900 2,500 +500 +20.6% +15.0% +9.1% +488 +400 700 2,000 3,325 +300 1,124 +10.0% +529 1,500 2,596 +200 500 902 7
Slide 22: Universal Music Group Key Figures
Full Year 2019 Results - February 13, 2020 UNIVERSAL MUSIC GROUP Key Figures D organic 2018 2019 D (%) in euro millions (%) Revenues 6,023 7,159 +18.9% +14.0% Recorded music 4,828 5,634 +16.7% +11.6% Streaming and subscriptions 2,596 3,325 +28.1% +21.5% Other digital sales (mainly downloads) 479 428
Slide 23: Canal+ Group
Canal+ Group vivendi 23
Slide 24: Canal+ Group
Full Year 2019 Results - February 13, 2020 CANAL+ GROUP Subscriber base above 20M Net growth of subscribers (in thousands) 20,291 2,258 17,188 3,103 8,577 9,617 2,258 654 8,611 8,416 1,040 892 December 31, 2018 December 31, 2019 (238) (195) Pro forma* 2018** 2019 Mainland France International (exclu
Slide 25: Canal+ Group
Full Year 2019 Results - February 13, 2020 CANAL+ GROUP Overseas and international – Subscriber base (in thousands) 11,875 2,258 8,577 1,267 996 657 664 2,794 2,744 4,899 4,173 December 31, 2018 December 31, 2019 Pro forma* Africa Europe (excluding M7) Overseas APAC M7 * The 2018 Pro forma notably i
Slide 26: Canal+ Group
Full Year 2019 Results - February 13, 2020 CANAL+ GROUP Mainland France - Subscriber base (in thousands) 8,611 8,416 3,405 3,355 4,697 4,548 509 513 December 31, 2018 Dec. 31, 2019 Pro forma* Collective contracts Self distributed subscribers Wholesale subscribers * The 2018 pro forma notably include
Slide 27: Canal+ Group Key Figures
Full Year 2019 Results - February 13, 2020 CANAL+ GROUP Key figures D organic 2018 2019 D (%) in euro millions (%) Revenues 5,166 5,268 +2.0% -0.9% TV International 1,567 1,781 +13.7% +6.1% TV mainland France 3,137 3,053 -2.7% -2.8% Studiocanal 462 434 -5.9% -12.8% EBITA before restructuring charges
Slide 28: Havas Group
Havas Group vivendi 28
Slide 29: Havas Group
Full Year 2019 Results - February 13, 2020 HAVAS GROUP Solid business model Breakdown of net revenue growth Evolution of EBITA before restructuring charges* 280 11,5% 270 11,5% +2.8% 11,2% 260 11,0% +1.3% 250 €2,256 M 10,5% 240 230 260 10,0% -1.0% +2.5% 245 220 9,5% 210 200 9,0% 2018 2019 Organic gr
Slide 30: Havas Group Strategic Investments
Full Year 2019 Results - February 13, 2020 HAVAS GROUP Strategic investments Focus on 3 areas : ▪ Creativity: Buzzman, the most creative agency in France ▪ Consultancy: Gate One, one of the UK’s leading management consultancies in business transformation ▪ India, acquisition of 3 leading agencies: ▪
Slide 31: Havas Group Key Figures
Full Year 2019 Results - February 13, 2020 HAVAS GROUP Key Figures D organic 2018 2019 D (%) in euro millions (%) Revenues 2,319 2,378 +2.6% -1.0% Net revenues 2,195 2,256 +2.8% -1.0% Europe 1,109 1,105 -0.4% -2.0% North America 766 831 +8.5% +0.4% Asia Pacific and Africa 192 193 +0.6% -3.0% Latin A
Slide 32: Editis
Editis 32
Slide 33: Editis Key Figures
Full Year 2019 Results - February 13, 2020 EDITIS Key Figures Acquisition of 100% of Editis, 2nd largest publishing group in France, completed as of January 31, 2019 2018 2019 D 11-month 11-month proforma organic in euro millions proforma reported (%) Revenues 646 687 +6.3% Literature 277 282 +2.0%
Slide 34: Other Businesses
Other Businesses vivendi
Slide 35: Other Businesses
Full Year 2019 Results - February 13, 2020 OTHER BUSINESSES Revenues EBITA in euro millions 2018 2019 2018 2019 in euro millions Gameloft 293 259 Gameloft 2 (36) Vivendi Village 123 141 Vivendi Village (9) (17) New Initiatives 66 71 New Initiatives (99) (65) Intercompany Elimination (58) (65) Corpor
Slide 36: Vivendi
vivendi
Slide 37: Appendices and Glossary
Appendices and glossary vivendi
Slide 38: Results by Business Unit
Full Year 2019 Results - February 13, 2020 RESULTS BY BUSINESS UNIT Revenues – Q4 Income from operations (IFO) – 2019 FY D organic Q4 2018 Q4 2019 2018 2019 in euro millions (%) in euro millions Universal Music Group 1,900 2,101 +6.3% Universal Music Group 946 1,168 Canal+ Group 1,344 1,465 +1.4% Ca
Slide 39: Cash Flow from Operations (CFFO) by Business Unit
Full Year 2019 Results - February 13, 2020 CASH FLOW FROM OPERATIONS (CFFO) BY BUSINESS UNIT 2018 2019 D (%) in euro millions Universal Music Group 838 704 -16.0% Canal+ Group 259 167 -35.5% Havas Group 230 239 +3.8% Editis* - 22 na Other businesses** (201) (229) na Total Vivendi 1,126 903 -19.7% *
Slide 40: Cash Flow from Operations (CFFO)
Full Year 2019 Results - February 13, 2020 CASH FLOW FROM OPERATIONS (CFFO) in euro millions 2018 2019 D EBITDA proforma (before IFRS 16 impact) 1,740 2,030 +290 Operating lease expenses na 254 na EBITDA 1,740 2,278 +538 Operating lease expenses na (254) na Content investments paid, of which: (137)
Slide 41: Universal Music Group
Full Year 2019 Results - February 13, 2020 UNIVERSAL MUSIC GROUP D organic D organic Q4 2019 2019 in euro millions (%) in euro millions (%) North America 2,636 +8.7% Recorded music 1,662 +2.9% Europe 1,742 +10.1% Subscriptions and streaming 921 +16.8% Asia 771 +18.5% Other digital sales (mainly down
Slide 42: Havas Group Q4 Net Revenues
Full Year 2019 Results - February 13, 2020 HAVAS GROUP Q4 Net Revenues D organic Q4 2018 Q4 2019 in euro millions (%) Revenues 693 697 -3.7% Net Revenues 650 666 -2.0% Europe 333 337 -2.0% North America 222 230 -2.5% Asia Pacific and Africa 61 61 -4.4% Latin America 34 38 +5.2% 42
Slide 43: Havas Group Net Revenues
Full Year 2019 Results - February 13, 2020 HAVAS GROUP Net Revenues Breakdown by division – FY 2019 Breakdown by sector – FY 2019 Distribution Havas Health Automotive & You 5.1% Health & Travel & 6.9% Well-being 19% 22.0% Leisure 7.0% Havas 46% Creative Industry & Services 7.2% 12.4% 8.0% Others 35%
Slide 44: Shareholding in Telecom Italia
Full Year 2019 Results - February 13, 2020 SHAREHOLDING IN TELECOM ITALIA 2018 2019 in euro millions Vivendi's share of Telecom Italia's net income 211 156 Impact of dividend paid to saving share owners (29) (29) Impact on Vivendi's Adjusted net income 182 127 Amortization of revaluation of intangib
Slide 45: Liquidity and Capital Resources
Full Year 2019 Results - February 13, 2020 LIQUIDITY AND CAPITAL RESOURCES Cash evolution December 31, 2018 December 31, 2019 in euro millions Cash and cash equivalents (3,793) (2,130) Cash management financial assets (599) (204) Gross cash position (4,392) (2,334) Bonds 4,050 5,450 Other financial
Slide 46: Interest & Income Tax
Full Year 2019 Results - February 13, 2020 INTEREST & INCOME TAX Interest 2018 2019 in euro millions (except where noted) Interest expense on borrowings (64) (69) Average interest rate on borrowings (%) 1.39% 1.17% Average outstanding borrowings (in € Bn) 4.6 5.9 Interest income from cash and cash e
Slide 47: Adjusted Net Income
Full Year 2019 Results - February 13, 2020 ADJUSTED NET INCOME 2018 2019 D (%) in euro millions Revenues 13,932 15,898 +14.1% EBITA* 1,288 1,526 +18.5% Other income and charges 7 - Income from non-operating equity affiliates 182 127 Interest (47) (46) Income from investments 20 10 Provision for inco
Slide 48: Reconciliations
Full Year 2019 Results - February 13, 2020 RECONCILIATIONS EBIT to EBITA and IFO Earnings attributable to Vivendi shareowners to ANI 2018 2019 in euro millions 2018 2019 in euro millions EBIT 1,182 1,381 Earnings attributable to Vivendi SA shareowners 127 1,583 Amortization and depreciation on intan
Slide 49: Glossary
Glossary vivendi 49
Slide 50: Glossary
Full Year 2019 Results - February 13, 2020 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 fina