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Vivendi — Investor Presentation (June 2009)
38 slides from Vivendi's investor presentation, June 2009
Slide 1: Investor Presentation
Investor Presentation June 2009 IMPORTANT NOTICE: Financial statements are unaudited and prepared under IFRS Investors are strongly urged to read the important disclaimer at the end of this presentation
Slide 2: Vivendi: exceptionally well positioned
Vivendi: exceptionally well positioned Growth dynamics: The need for entertainment (TV, video games, music, movies) and telecommunication (mobile, broadband internet access) are essential to our customers’ lives Continued innovation drives increased customer demand for broadband services and attract
Slide 3: Our challenge is to match our assets with key market trends
Our challenge is to match our assets with key market trends Key Vivendi assets Key Market Trends Technologies Digitization Creativity Mobility Networks, spectrum, licenses Communities More than 64 million subscriptions Broadband across all businesses Content Leadership in each business Customer care
Slide 4: Our capital allocation strategy to enhance shareholder value
Our capital allocation strategy to enhance shareholder value Deliver dividends to our shareholders with a distribution rate of at least 50% of Adjusted net income Buy out minorities when opportunity arises Provide Vivendi’s business units with necessary resources to facilitate: Investments in organi
Slide 5: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms France #1 Telecoms Morocco #1 Pay-TV France Q1 2009 Results – May 14, 2009 5
Slide 6: Q1 2009 highlights
Q1 2009 highlights 16% EBITA increase mainly driven by very strong results of Activision Blizzard, full benefit of synergies at Canal+ Group and good performance of Maroc Telecom Group Delivering expected synergies following recent acquisitions Efficient cost control in all businesses Q1 results con
Slide 7: Q1 2009 highlights per business
Q1 2009 highlights per business Activision Blizzard: Above peer performance driven by continued success of franchises. As of March 31, 2009, Vivendi owns c.56% of Activision Blizzard UMG: Good performance in a very challenging market. Ongoing cost management leading to stable EBITA despite restructu
Slide 8: Q1 2009 Results
Q1 2009 Results Revenues: €6,530 m +23.7% EBITA: €1,393 m +15.8% Adjusted Net Income: €649 m -6.9% Net Debt: €8.3 bn stable vs. end 2008 Q1 2009 Results – May 14, 2009 8
Slide 9: EBITA up 16%
EBITA up 16% In euro millions - IFRS Change at constant Q1 2009 * Q1 2008 Change currency Activision Blizzard 178 50 x 3.6 x 3.3 Universal Music Group 110 111 - 0.9% - 6.2% SFR 610 624 - 2.2% - 2.2% Maroc Telecom Group 286 268 + 6.7% + 4.6% Canal+ Group 254 170 + 49.4% + 51.3% Holding & Corporate /
Slide 10: Adjusted Net Income
Adjusted Net Income In euro millions - IFRS Change Q1 2009 Q1 2008 % Full consolidation of Neuf Revenues 6,530 5,280 + 1,250 + 23.7% Cegetel since April 15, 2008, and lower EBITA 1,393 1,203 + 190 + 15.8% contribution from NBC Universal Income from equity affiliates 26 85 - 59 - 69.4% Impact of Neuf
Slide 11: Financial net debt evolution
Financial net debt evolution Significant credit lines up to 2011 More than €7bn of undrawn credit lines at Vivendi SA at end April 2009 No significant bond reimbursement before 2012 Dividends Net financial December 31, CFFO Interest & tax paid to investments and March 31, 2008 after Capex paid and o
Slide 12: We remain vigilant in an unstable environment and are committed to
We remain vigilant in an unstable environment and are committed to: Enhancing competitiveness of our businesses through innovation Maintain high investments in networks and content: €1.4bn in Q1 2009 after €4.5bn in FY 2008 Remain focused on premium innovative services and products: UMG and YouTube
Slide 13: 2009 outlook
2009 outlook We do not expect to be hit hard by the economic situation, and we are confident in our ability to weather the current crisis We reiterate our 2009 guidance Strong EBITA growth Solid Adjusted Net Income leading to another strong dividend, with a distribution rate of at least 50% Q1 2009
Slide 14: Appendices
vivendi Appendices
Slide 15: Revenues
Revenues In euro millions - IFRS Change at constant Q1 2009 Q1 2008 Change currency Activision Blizzard 731 221 x 3.3 x 3.0 Universal Music Group 1,026 1,033 - 0.7% - 3.2% SFR 3,028 2,302 + 31.5% + 31.5% Maroc Telecom Group 640 614 + 4.2% + 2.3% Canal+ Group 1,119 1,115 + 0.4% + 1.8% Non Core and ot
Slide 16: Income from equity affiliates
Income from equity affiliates In euro millions (except where noted) IFRS Q1 2009 Q1 2008 % Change Income from equity affiliates 26 85 - 69.4% o/w NBC Universal in € 29 53 - 45.3% NBC Universal in $ $38 $77 - 50.6% o/w Neuf Cegetel* - 33 nm* nm* not meaningful * Neuf Cegetel has been fully consolidat
Slide 17: Interest
Interest In euro millions (except where noted) - IFRS Q1 2009 Q1 2008 Interest (108) (37) Interest expense on borrowings (121) (66) Average interest rate on borrowings (%) 4.62% # 4.17% Average outstanding borrowings (in euro billions) 10.5 6.3 Interest income from cash and cash equivalents 13 29 Av
Slide 18: Income tax
Income tax In euro millions - IFRS Q1 2009 Q1 2008 Adjusted Net Adjusted Net net income income net income income Consolidated Global Profit Tax System 53 132 148 79 Current tax: savings for current year 53 * 53 148 148 Deferred tax: variation in expected savings (year n+1/ year n) - 79 - (69) Tax ch
Slide 19: Reconciliation of Adjusted Net Income to Net Income, group share
Reconciliation of Adjusted Net Income to Net Income, group share In euro millions - IFRS Q1 2009 Q1 2008 Adjusted Net Income 649 697 Impact of Neuf Cegetel and Activision consolidation Amortization of intangible assets acquired through business combinations (148) (85) Other financial charges and inc
Slide 20: No significant bond reimbursement before 2012; credit lines up to 2011
Important credit lines up to 2011 No significant bond reimbursement before 2012 Amount of bank credit lines 7.5 Vivendi At the end of April 2009, the economic average term of the SFR group’s consolidated debt was ~4 years 6.0 6.0 5.0 After issuance of €1.5bn bonds in 2009, approximately 58% of outst
Slide 21: Activision Blizzard: Net Revenue $724m on US non-GAAP basis
Net Revenue: $724m on a US non-GAAP basis, above expectations Constant Strong global customer response to Call of Duty, In euro millions - IFRS Q1 2009 Q1 2008 Change currency Guitar Hero and World of Warcraft franchises Revenues 731 221 x 3.3 x 3.0 EBITA 178 50 x 3.6 x 3.3 Foreign exchange is estim
Slide 22: Activision Blizzard: segment information and 2009 release schedule
US Non-GAAP comparable basis segment information* In dollars millions Q1 2009 Q1 2008 % Change Activision 348 551 0.0% Blizzard 291 280 0.0% Distribution 85 89 0.0% IFRS Actual Core net revenues 724 920 -21.3% Activision (27) 50 0.0% In euro millions Q1 2009 Blizzard 143 154 0.0% Distribution 3 3 0.
Slide 23: Activision Blizzard U.S. GAAP and non-GAAP Financial Outlook
U.S. GAAP Financial Outlook Q2 09* Prior CY2009** New CY2009* Net Revenue $1.0bn $4.2bn $4.3bn EPS $0.10 $0.22 $0.24 U.S. non-GAAP*** Financial Outlook Q2 09* Prior CY2009** New CY2009* Net Revenue $775m $4.7bn $4.8bn EPS $0.06 $0.61 $0.63 Due to current macroeconomic conditions, Activision Blizzard
Slide 24: Activision Blizzard - Reconciliation to IFRS Revenues
Activision Blizzard - Reconciliation to IFRS Revenues In millions Q1 2009 Non-GAAP Net Revenues of Core Operations $724 US GAAP Basis Add back: Changes in deferred net rev enues (a) $256 Add back: Net Rev enues of Activ ision Blizzard's non-core ex it operations $1 Net Revenues in US GAAP as publish
Slide 25: Activision Blizzard - Reconciliation to IFRS EBITA
Activision Blizzard - Reconciliation to IFRS EBITA In millions Q1 2009 Non-GAAP Operating Income/(Loss) of Core Operations $119 Add back: Changes in deferred net rev enues and related cost of sales (a) $167 US GAAP Basis Less: Equity -based compensation ex pense -$28 Included in Less: Results of non
Slide 26: UMG: Revenues stable at €1,026m, EBITA stable at €110m
Revenues stable at €1,026m Increased music publishing activity and recorded music revenue in Europe Constant Digital revenues up 27% and account In euro millions - IFRS Q1 2009 Q1 2008 Change currency for approximately 28% of recorded Revenues 1,026 1,033 - 0.7% -3.2% music revenues EBITA excl. rest
Slide 27: UMG top-selling artists and release schedule
Top-selling artists UMG Million Million First Quarter 2009 Units * First Quarter 2008 Units * U2 3.4 Jack Johnson 2.2 Lady Gaga 1.3 Amy Winehouse 2.1 Taylor Swift 0.9 Janet Jackson 1.0 Dreams Come True 0.8 Duffy 0.9 Les Enfoirés 0.6 Sheryl Crow 0.7 Top - 5 Artists 7.0 Top - 5 Artists 6.9 % Change 20
Slide 28: SFR: Mobile 51% market share of net adds
Mobile: 51% market share of net adds 13.8m postpaid customers* (+10.7% year-on- year), at 69.6% of customer base (+3.5pts yoy) In euro millions - IFRS Q1 2009 Q1 2008 Change Revenues 3,028 2,302 + 31.5% Service Revenues at €2,104m, +1.2% due to data Mobile 2,181 2,178 + 0.1% revenues (+36%), despite
Slide 29: SFR: key operating indicators
Q1 2009 Q1 2008 Change MOBILE Customers (in ‘000) * 19,770 18,823 + 5.0% Proportion of postpaid clients * 69.6% 66.1% +3.5pts 3G customers (in ‘000) * 6,539 4,428 + 47.7% Market share on customer base (%) * 34.0% 33.8% +0.2pt Network market share (%) 35.8% 36.1% -0.3pt 12-month rolling blended ARPU
Slide 30: SFR: Detailed revenues
SFR: Detailed revenues IFRS Q1 2009 Q1 2008 % Q1 2008 % Change on a Comparable in euro millions Actual Actual* Change Comparable Basis** Basis ** Outgoing revenues net of promotions 1,701 81% 1,707 82% -0.4% 1,714 82% -0.8% Mobile incoming 248 12% 204 10% 21.6% 204 10% Fixed incoming revenues 90 4%
Slide 31: Maroc Telecom: Revenues €640m, +4.2%
Revenues: €640m +4.2% due to the continued growth in mobile Constant revenues In euro millions - IFRS Q1 2009 Q1 2008 Change currency Mobile revenues: +5.6% driven by increase in Revenues 640 614 + 4.2% + 2.3% Mobile 456 432 + 5.6% + 3.5% customer bases Fixed and Internet 251 242 + 3.7% + 2.0% Fixed
Slide 32: Maroc Telecom Group
Maroc Telecom Group In ‘000 (except where noted) Q1 2009 Q1 2008 Change MAROC TELECOM SA Number of mobile customers 14,630 13,697 + 6.8% % Prepaid customers 95.6% 96.2% ARPU (€/month) 8.1 8.5 - 4.7% Number of fixed lines* 1,286 1,335 - 3.7% Total Internet access** 488 487 + 0.2% SUBSIDIARIES Number
Slide 33: Canal+ Group: Revenues €1,119m, EBITA €254m
Revenues: €1,119m, up 1.8% at constant currency Strength of Canal+ France portfolio in a difficult environment: Constant +75k net adds year-on-year In euro millions - IFRS Q1 2009 Q1 2008 Change currency before the 110k net adds adjustment in 2008* Revenues 1,119 1,115 + 0.4% + 1.8% Strong growth at
Slide 34: Canal+ France net portfolio
Canal+ France net portfolio* (in thousands) Q1 2009 Q1 2008 +75 net additions Subscriptions 10,418 10,453 -35 before adjustment o/w Canal+ 5,150 5,278 of 110 in 2008 ** o/w CanalSat 5,268 5,175 Increase in digital subscriptions: Canal+ Le Bouquet represents 85% of the total portfolio of Canal+ compa
Slide 35: 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 36: Activision Blizzard – standalone - definitions
Activision Blizzard – standalone - 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 US GAAP) and excluding (US Non-GAAP): the impact of the cha
Slide 37: Investor Relations team
Investor Relations team Jean-Michel Bonamy 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: +33.1.71.71.14.16 Phone
Slide 38: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Vivendi. Although Vivendi believes that such forward-looking statements are based on reasonable assumptions, such statement