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Vivendi — Goldman Sachs Communacopia XVIII Conference (September 2009)
16 slides from Vivendi's conference presentation, Sep 16, 2009
Slide 1: Goldman Sachs Communacopia XVIII Conference
Jean-Bernard Lévy Chairman of the Management Board & Chief Executive Officer G ld Goldman Sachs S h C Communacopia i XVIII Conference September 16, 2009
Slide 2: Consistent capital allocation strategy
C i t t capital Consistent it l allocation ll ti strategy t t Deliver dividends to our shareholders with a distribution rate of at least 50% of Adjusted Net Income Provide Vivendi’s business units with necessary resources to facilitate innovation and organic g ggrowth Buy out minorities at the right
Slide 3: GVT: outstanding asset and perfect fit with Vivendi
GVT: outstanding asset and perfect fit with Vivendi Vivendi to launch a friendly offer for 100% of GVT’s GVT s share capital Enter one of the largest consumer markets in the world Invest in the fastest growing fixed and internet alternative telecom operator in Brazil, with considerable growth potent
Slide 4: Enter one of the largest consumer markets in the world
Enter one of the largest consumer markets in the world Brazil, a market with huge potential: ¾ 5th largest population: 191 million inhabitants Urban and young population Emerging middle class middle-class ¾ 9th largest economy in the world, one of the most attractive among emerging countries Hig
Slide 5: GVT: a leading alternative provider of telecommunications in Brazil
GVT: a leading alternative provider of telecommunications in Brazil Currently GVT has 2.3 million lines and offers a diversified portfolio of innovative products and advanced solutions for conventional and VoIP telephony, p y, corporate p data,, broadband,, video and Internet services GVT iss tthee
Slide 6: A unique model with the most modern network in Brazil
A unique model with the most modern network in Brazil Licenses not subject to price caps or universal service obligations unlike incumbents Ability to focus on the most profitable target areas nationwide Powerful geo geo-marketing marketing Selective and variable capital expenditures Focus only on h
Slide 7: Growth potential relies on coverage expansion and innovative services
Growth potential relies on coverage expansion and innovative services An addressable market of 22 million high-end residential homes and SME, while GVT has a presence (homes passed) in only 2.7 million addresses Plan to expand network coverage in untapped regions and increase its market share in cov
Slide 8: Transaction overview
Transaction overview Step 1: Agreement with 2 main shareholders subject to conditions to be completed before 10/16/09: Confirmatory due diligence by Vivendi, Approval of the Vivendi boards Current shareholder structure Step 2: Launch of Vivendi’s tender offer expected before year end and subject to
Slide 9: Transaction price
Transaction price Vivendi’s tender offer would be launched at BRL42 per share C h outt ranging Cash i bbetween t €1b * ffor 51% andd €1.8bn* €1bn* €1 8b * ffor 90% off GVT Transaction to be financed by debt, using existing credit facilities, keeping our BBB rating This transaction would value 100% o
Slide 10: We are faring well in the crisis: its impact on our performance is real but limited
We are faring well in the crisis: its impact on our performance is real but limited Our subscription subscription-based based model provides strong and highly predictable cash flows: we continue investing and innovating to attract new clients and respond to changing consumer demand in an environment
Slide 11: Focus in H1 2009
F Focus iin H1 2009 2009: G Grow our bbusinesses i in a challenging environment Strong commercial performances: Increased subscriptions: • SFR enjoyed very strong net adds in mobile and ADSL • Canal+ France’s portfolio increased by 94k yoy • World of Warcraft’s Western subscriber base grew yoy • Mar
Slide 12: H1 2009 Results
H1 2009 Results R lt Revenues: €13.2 bn +17.0% EBITA: €2.9 bn +12.9% Adjusted Net Income: €1.5 bn +0.9% Investor Presentation – September, 2009 12
Slide 13: We confirm our 2009 outlook
W confirm We fi our 2009 outlook tl k We maintain our guidance of strong EBITA growth, and solid Adjusted Net Income leadingg to another strongg dividend,, with a distribution rate of at least 50% Investor Presentation – September, 2009 13
Slide 14: Best-positioned to secure future growth
B t Best-positioned iti d tto secure ffuture t growth th First-class assets with leading positions driving high operating margins 70% of sales from subscriptions in resilient markets leading to predictable and high cash flows Major initiatives in H1 2009: VEVO, a premium music video service, by UMG
Slide 15: A world leader in communications and entertainment
A world leader in communications and entertainment #1 Video Games Worldwide #1 Music Worldwide #2 Telecoms Tl F France #1 Telecoms Morocco #1 Pay-TV France Investor Presentation – September, 2009
Slide 16: Goldman Sachs Communacopia XVIII Conference
Jean-Bernard Lévy Chairman of the Management Board & Chief Executive Officer Goldman Sachs Communacopia XVIII Conference September 16, 2009
Vivendi — Goldman Sachs Communacopia XVIII Conference (September 2009) on 6ix