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Vivendi — Q3 2010 YTD Earnings Presentation
36 slides from Vivendi's earnings presentation, Nov 15, 2010
Slide 1: Third Quarter 2010 YTD Results
November 15, 2010 Third Quarter 2010 YTD Results Philippe Capron M b off th Member the M Managementt B Boardd & Chief Financial Officer IMPORTANT NOTICE: Financial statements unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentati
Slide 2: Third quarter 2010 results in line with strong first half
Third quarter 2010 results in line with strong first half Confirmation of full year outlook At end September 2010, all financial indicators are up: ¾ Revenues: €20 869m €20,869m +6 9% +6.9% ¾ EBITA: €4,670m +10.0% ¾ Adjusted Net Income: €2,214m +4.8% Third upgrade of 2010 guidance for our most recen
Slide 3: 2010 YTD highlights by business
2010 YTD highlights by business Solid net adds market share in both Mobile and Broadband. Launch of new offers (Mobile Internet, quadruple play, and family packages). Earnings on track and solid EBITDA margin, margin despite greater regulatory and competitive pressure. Solid performance of mobile in
Slide 4: 2010 YTD highlights by business
2010 YTD highlights by business Exceeded Q3 2010 guidance in US non-GAAP and US GAAP. IFRS EBITA contribution up €280m yoy (+69%). S Successful f l launch l h off StarCraft St C ft II: II Wings Wi off Liberty Lib t andd strong t l launch h releases l f Q4 including for i l di Call of Duty: Black Ops
Slide 5: Significant increase in EBITA
Significant increase in EBITA In euro millions - IFRS Constant 9M 2010 9M 2009 Change currency Activision Blizzard 686 406 + 69.0% + 66.4% Universal Music Group 244 269 - 9.3% - 14.7% SFR 1,982 1,986 - 0.2% - 0.2% Maroc Telecom Group 942 905 + 4.1% 4 1% + 3.5% 3 5% GVT 169 Canal+ Group 760 754 + 0.8
Slide 6: Adjusted Net Income
Adjusted Net Income In euro millions - IFRS 9M 2010 9M 2009 Change % Incl. impact of GVT acquisition Revenues 20,869 19,525 + 1,344 + 6.9% Incl. reduced benefit from EBITA 4,670 4,245 + 425 + 10.0% utilization of Neuf Cegetel’s tax losses by SFR I Income ffrom equity it affiliates ffili t 139 118 +
Slide 7: Financial net debt evolution
In euro billions- IFRS Financial net debt evolution Dividends Dividends Net financial December 31, CFFO Interest & tax paid to paid to investments and September 30, 2009 after Capex paid and other minorities shareholders other 2010 (1.0) (0.9) (8.9) (9.6) + 3.1 (1.7) + 1.2 IIncluding: l di Interest:
Slide 8: Activision Blizzard: Revenues €2,280m, EBITA €686m
In euro millions Constant 9M 2010 9M 2009 Change IFRS currency Revenues: €2,280m, €2 280m +15% Revenues 2,280 1,986 + 14.8% + 11.1% Better than expected results driven by leadership in online entertainment EBITA 686 406 + 69.0% + 66.4% ¾ Strong performance from Call of Duty franchise, World of Warcr
Slide 9: Universal Music Group: Revenues €2,927m, EBITA €244m
Revenues: €2,927m, €2 927m -1.7% -1 7% In euro millions - IFRS 9M 2010 9M 2009 Ch Change Constant currency Recorded music sales -3.5% Revenues 2,927 2,978 - 1.7% - 6.3% ¾ Fewer major releases in H1 2010 EBITA 244 269 - 9.3% - 14.7% ¾ Reduced demand for pphysical y pproduct o/w restructuring o/ est u
Slide 10: SFR: Mobile service revenues and EBITDA
Mobile service revenues: +5.1% excl. regulatory impact* 15 7m postpaid customers (+8 15.7m (+8.7%), 7%) or 75% of the customer base 854k new postpaid customers over 9 months In euro millions - IFRS 9M 2010 9M 2009 Change Data revenues growth +15% to €1.7bn Revenues 9,379 9,230 + 1.6% Mobile 6,664 6,
Slide 11: Maroc Telecom Group: Revenues €2,126m, EBITA €942m
Revenues: €2,126m, €2 126m +6.4% +6 4% In euro millions - IFRS Constant 9M 2010 9M 2009 Change Robust performance of mobile in Morocco currency Revenues 2,126 1,999 + 6.4% + 5.9% ¾ Increased customer base with significant decrease in churn Mobile 1,600 1,452 + 10.2% + 9.7% ¾ ARPU stabilized at high
Slide 12: GVT: Net Revenues BRL1,736m
Net Revenues: BRL1,736m BRL1 736m*, +42% In BRL millions* 9M 2010 9M 2009 Change (+74% in EUR) Net revenues 1,736 1,224 + 41.8% Broadband service revenues up 78% and Voice revenues up 34% Gross income 1,139 789 + 44.4% 1 030k net adds in lines in services (LIS) 1,030k (LIS), +56% yoy Adjusted EBITDA
Slide 13: Canal+ Group: Revenues €3,464m, EBITA €760m
Revenues: €3,464m, €3 464m +2.9% +2 9% Sustained high portfolio growth at Canal+ France: +248k net adds In euro millions - IFRS 9M 2010 9M 2009 Change Constant currency year-on-year ¾ Net increase in customer base in metropolitan France Revenues 3,464 3,368 + 2.9% + 2.2% ¾ Excellent commercial perfo
Slide 14: Group guidance confirmed and new upgrade for Activision Blizzard and GVT
Group guidance confirmed and new upgrade for Activision Blizzard and GVT Guidance 2010: Increase in Vivendi EBITA 2010 Adjusted Adj t d Net N t Income I higher hi h than th 2009 €1.40 dividend per share for fiscal year 2010 Guidance vs. September 2010 EBITA around €700m (vs. above €630m) Ò Upgraded
Slide 15: Offering the best to the digital generation
Offeringg the best to the digital generation #1 Video Games Worldwide #1 Music Worldwide #1 Alternative Alt ti Telecoms Tl F France #1 Telecoms Morocco #1 Alternative Broadband Brazil #1 Pay-TV France
Slide 16: Appendices
vivendi Appendices
Slide 17: #1 worldwide in music, pay-TV in France, alternative telecoms
100% 100%/80% 56% #1 worldwide in music #1 in pay-TV in France #1 alternative telecoms in France 53%* 60%* 100% #1 in telecoms #1 worldwide in #1 alternative in Morocco video games broadband operator in Brazil * Based on shares outstanding Q3 2010 Results – Nov 15, 2010 17
Slide 18: Activision Blizzard US non-GAAP and IFRS
US non-GAAP* IFRS In dollar millions 9M 2010 9M 2009 Change In euro millions 9M 2010 Activision 1,415 Activision 983 1,211 Bli Blizzard d 1 086 1,086 867 Blizzard 725 Distribution 185 202 Distribution 140 Net revenues 2,254 2,280 -1.1% Net Revenues 2,280 Activision (88) (49) Blizzard 559 393 Activis
Slide 19: Activision Blizzard – Reconciliation to IFRS Revenues
Activision Blizzard – Reconciliation to IFRS Revenues 9M 2010 In millions Non-GAAP Net Revenues $2 254 $2,254 Changes in deferred net revenues (a) $765 Net Revenues in US GAAP as published by Activision Blizzard $3,019 R Reconciling ili differences diff between b t US GAAP and d IFRS - Net Revenues
Slide 20: Activision Blizzard – Reconciliation to IFRS EBITA
Activision Blizzard – Reconciliation to IFRS EBITA 9M 2010 In millions Non-GAAP Operating Income/(Loss) $470 Changes in deferred net revenues and related cost of sales (a) $539 Equity-based compensation expense (b) $(94) Restructuring charges $(3) Amortization of intangibles acquired through busines
Slide 21: UMG top-selling artists and upcoming releases
Top-selling artists Million Million 9M 2010 units* 9M 2009 units* Eminem 5.0 U2 4.2 Lady Gaga - The Fame Monster 4.1 Lady Gaga 3.9 Justin Bieber - My World 2.0 2.4 Eminem 3.1 Black Eyed Peas 2.3 Black Eyed Peas 3.1 Drake 14 1.4 Taylor Swift 26 2.6 Top 5 Artists ~15.2 Top 5 Artists ~16.9 Constant In
Slide 22: SFR mobile, broadband internet and fixed KPIs
9M 2010 9M 2009 Change MOBILE Customers ((in '000)* ) 20,815 , 20,226 , + 2.9% Proportion of postpaid clients* 75.2% 71.3% + 3.9 pts 3G customers (in '000)* 9,189 7,839 + 17.2% Market share on customer base (%)* 33.3% 33.9% - 0.6 pt Network market share (%) 35.0%% 35.6%% - 0.6 p pt 12-month rolling
Slide 23: SFR – Detailed revenues
SFR – Detailed revenues IFRS - in euro millions 9M 2010 9M 2009 Change Service revenues 6,321 6,364 - 0.7% of which data revenues from mobile services 1,695 1,470 + 15.3% E i Equipment t sales, l nett 343 320 + 7.2% 7 2% Mobile revenues 6,664 6,684 - 0.3% Broadband Internet and fixed revenues 2,944
Slide 24: Maroc Telecom SA and African subsidiaries
Maroc Telecom SA In '000 (except where noted) 9M 2010 9M 2009 Change Number of mobile customers 16,740 15,239 + 9.8% African subsidiaries % Prepaid customers 95.5% 95.6% - 0.1 pt ARPU (€/month) 8.5 8.7 - 1.7% In '000 Number of fixed lines 1,227 1,269 - 3.3% Sep. 30, 2010 Sep. 30, 2009 Change Interne
Slide 25: GVT operating KPIs
In '000 Sep. 30, 2010 Sep. 30, 2009 Change Sep. 30, 2010 Sep. 30, 2009 Change Total Lines in Services (LIS) 3,846 2,560 + 50.2% Coverage (# of cities) 92 81 + 11 Retail and SME 2,651 1,773 + 49.5% Region II 75 75 - Voice 1,655 1,146 + 44.4% Region I & III 17 6 + 11 Broadband 996 627 + 58.9% Proporti
Slide 26: Canal+ Group subscriber portfolio
(in ‘000) September 30, 2010 September 30, 2009 Change Portfolio Canal+ Group 12 309 12,309 11 907 11,907 + 402 ow Canal+ France* 10,761 10,513 + 248 ow International** 1,548 1,394 + 154 * Individual and collective subscriptions at Canal+, CanalSat in metropolitan France, overseas territories and Af
Slide 27: Q3 EBITA
Q3 EBITA In euro millions - IFRS Constant Q3 2010 Q3 2009 Change currency Activision Blizzard 66 33 + 100.0% + 77.2% Universal Music Group 85 58 + 46.6% + 34.3% SFR 614 690 - 11.0% - 11.0% Maroc Telecom Group 346 319 + 8.5% + 6.7% GVT 71 Canal+ Group 274 282 - 2.8% - 2.6% Holding & Corporate / Other
Slide 28: Revenues
Revenues Change at In euro millions - IFRS 9M 2010 9M 2009 Change constant currency Activision Blizzard 2,280 1,986 + 14.8% + 11.1% Universal Music Group 2,927 2,978 - 1.7% - 6.3% SFR 9,379 9,230 + 1.6% + 1.6% Maroc Telecom Group 2,126 1,999 + 6.4% + 5.9% GVT 732 - Canal+ Group 3,464 3,368 + 2.9% +
Slide 29: Income from equity affiliates
Income from equity affiliates In euro millions - IFRS (except where noted) 9M 2010 9M 2009 Change Income from equity affiliates 139 118 + 17.8% 17 8% o/w NBC Universal in € 145 127 + 14.2% NBC Universal in $ $192 $174 + 10.3% Q3 2010 Results – Nov 15, 2010 29
Slide 30: Interest
Interest In euro millions – IFRS (except where noted) 9M 2010 9M 2009 Interest (375) (336) Interest expense p on borrowings g ( ) (396) ( ) (366) Average interest rate on borrowings (%) 4.06% 4.64% Average outstanding borrowings (in euro billions) 13.0 10.5 Interet income from cash and cash equivale
Slide 31: Income tax
Income tax In euro millions – IFRS S 9M 2010 9M 2009 Adjusted Net Adjusted Net net income income net income income Consolidated Global Profit Tax System 378 438 160 397 Current tax: savings for current year 378 378 160 160 Deferred tax: variation in expected savings (year n+1 / year n) - 60 - 237 Ta
Slide 32: Reconciliation of Adjusted Net Income to Net Income, group share
Reconciliation of Adjusted Net Income to Net Income, group share In euro millions - IFRS 9M 2010 9M 2009 Adjusted Net Income 2,214 2,112 Amortization and impairment losses of intangible assets (429) (424) acquired through business combinations Other financial charges and income (348) (116) - o/w the
Slide 33: Glossary
Glossary Adjusted earnings before interest and income taxes (EBITA): EBIT (defined as the difference between charges and income that do not result from financial activities, equity affiliates, discontinued operations and tax) before the amortization of intangible assets acquired through business com
Slide 34: Activision Blizzard – stand alone - definitions
Activision Blizzard – stand alone - definitions US 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 GAAP) and excluding (non-GAAP) the following items: the imp
Slide 35: Investor Relations team
Investor Relations team Jean Michel Bonamy Jean-Michel Executive Vice President Investor Relations +33.1.71.71.12.04 jean-michel.bonamy@vivendi.com Paris 42, Avenue de Friedland New York 75380 Paris cedex 08 / France 800 Third Avenue Phone: +33.1.71.71.32.80 New York, NY 10022 / USA Fax: +33.1.71.71
Slide 36: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking forward looking statements with respect to the financial condition, condition results of operations, business, strategy, plans and outlook of Vivendi, including expectations regarding the payment of dividends as well as the antici